N-CSRS 1 a08-2227_1ncsrs.htm N-CSRS

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number

811-08764

 

UBS PACE Select Advisors Trust

(Exact name of registrant as specified in charter)

 

51 West 52nd Street, New York, New York

 

10019-6114

(Address of principal executive offices)

 

(Zip code)

 

Mark F. Kemper, Esq.

UBS Global Asset Management

51 West 52nd Street

New York, NY 10019-6114

(Name and address of agent for service)

 

Copy to:

Jack W. Murphy, Esq.

Dechert LLP

1775 I Street, N.W.

Washington, DC 20006-2401

 

Registrant’s telephone number, including area code:

212-882 5000

 

 

Date of fiscal year end:

July 31

 

 

Date of reporting period:

January 31, 2008

 

 


 

Item 1.  Reports to Stockholders.

 


UBS PACE Select Advisors Trust

Semiannual Report

January 31, 2008

Table of contents

Portfolio Advisors' commentaries and schedules of investments          
UBS PACE Money Market Investments     4    
UBS PACE Government Securities Fixed Income Investments     11    
UBS PACE Intermediate Fixed Income Investments     22    
UBS PACE Strategic Fixed Income Investments     35    
UBS PACE Municipal Fixed Income Investments     50    
UBS PACE Global Fixed Income Investments     63    
UBS PACE High Yield Investments     74    
UBS PACE Large Co Value Equity Investments     84    
UBS PACE Large Co Growth Equity Investments     93    
UBS PACE Small/Medium Co Value Equity Investments     103    
UBS PACE Small/Medium Co Growth Equity Investments     112    
UBS PACE International Equity Investments     122    
UBS PACE International Emerging Markets Equity Investments     136    
UBS PACE Global Real Estate Securities Investments     147    
UBS PACE Alternative Strategies Investments     155    
Understanding your Portfolio's expenses     183    
Statement of assets and liabilities     190    
Statement of operations     198    
Statement of changes in net assets     202    
Financial highlights     209    
Notes to financial statements     282    
General information     324    
Board approval of sub-advisory agreements     325    

 

UBS PACE Select Advisors Trust offers multiple share classes representing interests in 15 separate Portfolios. (UBS PACE Money Market Investments offers only one share class.) Different classes of shares and/or Portfolios are offered by separate prospectuses.

For more information on a Portfolio or class of shares, contact your financial advisor. He or she can send you a current prospectus relating to a Portfolio or class of shares, which includes a discussion of investment risks, sales charges, expenses and other matters of interest. Before you invest, please carefully read the prospectus related to the Portfolio or class of shares in which you are interested.


1


UBS PACE Select Advisors Trust

Introduction

March 17, 2008

Dear UBS PACESM Shareholder,

We are pleased to provide you with the semiannual report for the UBS PACE Portfolios, comprising the UBS PACE Select Advisors Trust. This report includes summaries of the performance of each Portfolio and commentaries from the individual investment advisors regarding the events that affected Portfolio performance during the six months ended January 31, 2008. Please note that the opinions of the advisors do not necessarily represent those of UBS Global Asset Management (Americas), Inc.

In both the equity and fixed income markets, the six-month period was marked by a considerable amount of volatility, which we discuss in more detail in the "Market Outlook" section below. In challenging times like these, we believe that the best way for long-term investors to weather volatility is to develop a personalized investment strategy that's balanced across a range of asset classes—and to stick with it through the markets' ups and downs.

Market Outlook

While the US economy had been fairly resilient during much of 2007, it weakened during the reporting period. A variety of factors caused the economy to stumble, including the ongoing troubles in the housing market and tepid business spending. The US Department of Commerce reported that third quarter gross domestic product ("GDP") growth was 4.9%, due, in part, to strong consumer spending and increased exports. However, advance growth rate estimates for the fourth quarter GDP sunk to just 0.6%. For the remainder of the reporting period, the combined effects of the weak housing market, issues related to subprime mortgages, and tighter credit conditions continued to negatively impact the overall economy.

Overseas, economic growth also moderated during the period, triggered by the fallout from the weakening US economy as well as high energy and food prices. According to the International Monetary Fund, global economic growth is predicted to be 4.1% in 2008, versus an estimated 4.9% advance in 2007.

The US stock market was extremely volatile during the reporting period. After generally posting positive returns early in the year, US equity prices fell sharply in June and July of 2007. This was largely due to troubles in the housing market. US stock prices then began to rise in late August 2007 and continued to do so through October. This rebound was triggered by the Federal Reserve Bank (the "Fed") lowering interest rates in an attempt to alleviate the credit crunch and avert a recession. Hopes for a continuation of the stock market's rally ended suddenly in November. Lackluster third quarter corporate profits, surging oil prices and continued fallout from the subprime mortgage market caused the S&P 500 Index to fall 10% from its peak in October. All told, the S&P 500 Index declined 4.32% over the six-month reporting period. The international developed equity markets underperformed their US counterparts during the reporting period, as the MSCI EAFE Index1 fell 7.52%. However, emerging market equities performed relatively better, with the MSCI EM Index2 declining 1.33%.

1.  The MSCI EAFE Index consists of almost 1,000 stocks in 21 countries outside North and South America, and represents approximately 85% of the total market capitalization in these countries.

2.  The MSCI EM Index measures equity market performance in the global emerging markets, and consists of approximately 25 market country indexes, including Argentina, Brazil, Malaysia and Thailand.


2


UBS PACE Select Advisors Trust

As was the case with the stock market, bond prices also fluctuated during the six-month period, given changing expectations regarding economic growth, inflation, and future Fed monetary policies. Issues related to the bursting of the housing bubble and subprime mortgage meltdown triggered several "flights to quality." During those times, investors flocked to the relative safety of high quality government bonds and largely shunned lower quality fixed income securities. Looking at the six months ended January 31, 2008, the overall bond market, as measured by the Lehman Brothers U.S. Aggregate Index,3 returned 6.82%. Given overall positive economic growth, the international bond markets slightly lagged their US counterparts. During the reporting period, the JPMorgan Global Government Bond Index4 returned 6.17%. Bond investors who assumed greater risks generated mixed results. All told, the Lehman Brothers High Yield5 Index and the JPMorgan EMBI Global Diversified Indexes6 returned 1.30% and 7.21%, respectively.

As always, we also believe it is useful to work closely with a professional financial advisor to guide you on your financial journey. We appreciate your continued support.

Sincerely,

Kai R. Sotorp
President, UBS PACE Select Advisors Trust
Head of the Americas, UBS Global Asset Management (Americas) Inc.

3.  The Lehman Brothers U.S. Aggregate Index covers the US dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities.

4.  The JPMorgan Global Government Bond Index is a market capitalization weighted index, which is rebalanced monthly and consists of 13 countries.

5.  The Lehman Brothers High Yield Index is an unmanaged market-weighted index including only SEC-registered and 144(a) securities with fixed (non-variable) coupons.

6.  The JPMorgan EMBI Global Diversified Index is an unmanaged Index of debt instruments of 31 emerging countries.

This report is intended to assist investors in understanding how the Portfolios performed during the six-month period ended January 31, 2008. The views expressed in the Advisors' Comments sections are as of the end of the reporting period, reflect performance results gross of fees and expenses, and are those of the investment advisors. Advisors' comments on Portfolios that have more than one manager are reflective of their portion of the Portfolio only. The views and opinions in this report were current as of March 17, 2008. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the Advisors reserve the right to change their views about individual securities, sectors and the markets at any time. As a result, the views expressed should not be relied upon as a forecast of a Portfolio's future investment intent.


3


UBS PACE Select Advisors Trust

UBS PACE Money Market Investments

Performance

For the six months ended January 31, 2008, the Portfolio returned 2.21% (before the deduction of the maximum UBS PACE Select program fee; after the deduction of the maximum UBS PACE Select program fee for the six month period, the Portfolio returned 1.44%). In comparison, the 90-Day US T-Bill Index (the "benchmark") returned 2.08%, and the median return for the Lipper Money Market Funds category was 2.19%. (Returns over various time periods are shown in the "Performance at a Glance" table on page 6. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions.)

Market review

While the US economy was fairly resilient during the first half of the reporting period, it weakened toward the end of 2007. The reporting period began with a healthy gross domestic product ("GDP") growth rate of 4.9% in the third quarter, due, in part, to strong consumer spending and increased exports. However, a variety of factors caused the economy to stumble in the fourth quarter, as the combined effects of the weak housing market, issues related to subprime mortgages, and tighter credit conditions negatively impacted the overall economy. As a result, estimates for the fourth quarter GDP fell back to just 0.6%.

As concerns over subprime mortgages and the credit markets mounted, the Federal Reserve Board (the "Fed") provided greater amounts of liquidity to the market in order to facilitate normal market operations. In mid-August, the Fed lowered the discount rate, which is the rate the Fed uses for loans it makes directly to banks. Then, in mid-September, the Fed continued to take action by reducing the federal funds rate from 5.25% to 4.75%. (The federal funds rate, or "fed funds" rate, is the rate that banks charge one another for funds they borrow on an overnight basis.) The Fed lowered the fed funds rate in October and December 2007, bringing it to 4.25% by the end of 2007.

In January 2008, the Fed cut the fed funds rate twice within nine days. On January 22nd, it reduced the rate by 0.75%, and by another 0.50% on January 30th, bringing it to 3.00%—its lowest level since May 2005.

*  Note: As of March 20, 2008, Robert Sabatino, a director of UBS Global Asset Management (Americas) Inc.'s short duration fixed income group, will become primarily responsible for the day-to-day portfolio management of UBS PACE Money Market Investments.

UBS PACE Select Advisors Trust – UBS PACE Money Market Investments

Investment Advisor:

UBS Global Asset Management (Americas) Inc.

Portfolio Manager:*

Michael H. Markowitz

Objective:

Current income consistent with preservation of capital and liquidity.

Investment process:

The Portfolio is a money market mutual fund and seeks to maintain a stable price of $1.00 per share, although it may be possible to lose money by investing in this Portfolio. The Portfolio invests in a diversified portfolio of high-quality money market instruments of governmental and private issuers. Security selection is based on the assessment of relative values and changes in market and economic conditions.


4


UBS PACE Select Advisors Trust

UBS PACE Money Market Investments

Advisor's comments

During much of the period, we employed a "barbell" strategy, in which the maturities of securities in a portfolio are concentrated at opposite ends of the short-term yield curve. We continued to buy shorter-term securities, and we also sought to extend the Portfolio's weighted average maturity with longer-term money market securities maturing within nine to 13 months. However, when the troubles surfaced in the credit market in mid-August, we sought to increase liquidity by purchasing more overnight securities. This reduced the Portfolio's weighted average maturity during the remainder of the period. We also added more government agency securities to the portfolio in October and continued to increase the amount of overnight securities we held.

The Portfolio remained diversified during the reporting period by both weighted average maturity and security type. We held securities with a wide range of maturities, ranging from overnight up to several months. In terms of security types held in the Portfolio, we are able to generally hold up to 5% in any one security (subject to certain exceptions).However, we typically sought to maintain a greater level of portfolio diversification over the reporting period. We accomplished this by investing in smaller positions, typically purchasing no more than 2%–3% in any one non-government issuer.

As always, quality, liquidity and yield remained paramount in our selection process for the Portfolio. Our process led us to be highly selective in terms of the types of commercial paper held in the Portfolio, which benefited performance during the reporting period. (Commercial paper is a short-term obligation, which may be backed by a guarantee or a letter of credit from a bank or other entity.) For example, we did not have any positions in single-seller commercial paper conduits or asset-backed commercial paper programs solely backed by mortgages. Instead, we emphasized what we believed to be the more stable multi-seller commercial paper programs.

Short-term corporate obligations and certificates of deposit also comprised a fair amount of the Portfolio. Within these sectors, we also found variable-rate securities, which offer interest rates that reset periodically, to be attractive, given the uncertainty of interest rate movements by the Fed. We purchased variable-rate securities linked to the fed funds rate, as well as those linked to the one-month and three-month LIBOR. (LIBOR, or the London Interbank Offered Rate, is among the most common of benchmark interest rate indexes used to make adjustments to adjustable-rate securities.)

Later in the period, we again increased our exposure to overnight securities, such as repurchase agreements, as well as one-month securities as we sought to increase the Portfolio's liquidity. These purchases helped to decrease our risk exposure. In response to turmoil in the asset-backed commercial paper market during this time, we decreased our exposure to these securities and increased our exposure to US government and agency obligations.


5



UBS PACE Select Advisors Trust

UBS PACE Money Market Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 01/31/08   6 months   1 year   5 years   10 years  
UBS PACE Money Market Investments before deducting
maximum UBS PACE Select program fee1 		     2.21 %     4.64 %     2.71 %     3.46 %  
UBS PACE Money Market Investments after deducting
maximum UBS PACE Select program fee1 		     1.44 %     3.08 %     1.18 %     1.92 %  
90-Day US T-Bill Index2      2.08 %     4.60 %     2.99 %     3.61 %  
Lipper Money Market Funds median     2.19 %     4.52 %     2.54 %     3.27 %  

 

For UBS PACE Money Market Investments, average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: 1-year period, 3.16%; 5-year period, 1.13%; 10-year period, 1.94%.

For UBS PACE Money Market Investments, the 7-day current yield for the period ended January 31, 2008 was 3.36% (without maximum UBS PACE Select program fee and after fee waivers and/or expense reimbursements; the yield was 3.07% before fee waivers and/or expense reimbursements). With the maximum UBS PACE Select program fee, the 7-day current yield was 1.86% after fee waivers and/or expense reimbursements; the yield was 1.57% before fee waivers and/or expense reimbursements. The Portfolio's yield quotation more closely reflects the current earnings of the Portfolio than the total return quotation. Yields will fluctuate and reflect fee waivers.

1  The maximum annual UBS PACE Select program fee is 1.5% of the value of UBS PACE assets.

2  90-Day US T-Bills are promissory notes issued by the US Treasury and sold through competitive bidding, with a short-term maturity date, in this case, of three months. This Index is derived from secondary market interest rates as published by the Federal Reserve Bank.

Past performance does not predict future performance and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions. The return of an investment will fluctuate. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the payable dates. Total returns for the period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

An investment in UBS PACE Money Market Investments is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Portfolio seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Portfolio.


6


UBS PACE Select Advisors Trust

UBS PACE Money Market Investments

Portfolio statistics (unaudited)

Characteristics   01/31/08  
Net assets (mm)   $ 523.2    
Number of holdings     82    
Weighted average maturity     50 days    
Portfolio composition1    01/31/08  
Commercial paper     29.1 %  
Repurchase agreements     24.5    
US government and agency obligations     21.2    
Certificates of deposit     19.0    
Short-term corporate obligations     8.1    
Other assets less liabilities     (1.9 )  
Total     100.0 %  
Top 10 holdings1    01/31/08  
Repurchase Agreement with Deutsche Bank Securities, 2.850% due 02/01/08     13.0 %  
Repurchase Agreement with Barclays Bank PLC, 2.850% due 02/01/08     11.5    
Federal National Mortgage Association, 4.240% due 02/08/08     3.8    
Abbey National N.A. LLC, 4.345% due 02/04/08     2.3    
Federal Home Loan Bank, 2.720% due 02/22/08     2.3    
Bayerische Landesbank, 3.280% due 02/27/08     2.0    
Lehman Brothers Holdings, Inc., 3.040% due 02/01/08     1.9    
Danske Corp., 3.030% due 03/03/08     1.9    
International Lease Finance Corp., 3.020% due 03/06/08     1.9    
Federal Home Loan Bank, 2.870% due 03/28/08     1.9    
Total     42.5 %  

 

1  Weightings represent percentages of the Portfolio's net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time.


7


UBS PACE Select Advisors Trust

UBS PACE Money Market Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
US government and agency
obligations—21.21%		  
Federal Farm Credit Bank
3.030%, due 02/22/081 		   $ 4,000,000     $ 3,999,682    
3.080%, due 03/22/081      5,500,000       5,500,000    
Federal Home Loan Bank
4.785%, due 02/18/081 		     8,000,000       8,000,000    
2.720%, due 02/22/082      12,000,000       11,980,960    
2.870%, due 03/28/082      10,000,000       9,955,355    
4.345%, due 04/10/081      7,500,000       7,499,380    
3.625%, due 04/16/082      5,000,000       4,962,240    
4.885%, due 08/20/08     2,750,000       2,752,181    
5.100%, due 09/19/08     4,500,000       4,513,238    
4.500%, due 11/05/08     4,000,000       4,000,000    
3.330%, due 01/23/09     2,750,000       2,750,000    
Federal Home Loan
Mortgage Corp.
4.670%, due 03/30/081 		     2,000,000       1,999,154    
4.165%, due 05/12/082      5,000,000       4,941,574    
4.300%, due 12/26/08     3,000,000       3,000,000    
Federal National Mortgage
Association
4.240%, due 02/08/082 		     20,000,000       19,983,511    
3.375%, due 01/23/09     2,750,000       2,750,000    
US Treasury Bills2
3.000%, due 03/20/08		     5,500,000       5,478,000    
3.145%, due 06/12/08     7,000,000       6,919,278    
Total US government and
agency obligations
(cost—$110,984,553)		             110,984,553    
Certificates of deposit—19.02%  
Banking-non-US—15.96%  
Bank of Tokyo-Mitsubshi UFJ Ltd.
5.440%, due 03/14/08		     4,500,000       4,500,000    
3.790%, due 05/15/08     5,000,000       5,000,000    
Barclays Bank PLC
5.530%, due 03/14/08		     2,000,000       2,000,000    
5.200%, due 06/16/08     3,000,000       3,000,000    
3.000%, due 07/25/08     5,000,000       5,000,000    
Calyon N.A., Inc.
3.045%, due 02/01/081 		     4,000,000       3,999,874    
4.750%, due 02/28/08     5,000,000       5,000,000    
Credit Suisse First Boston
4.850%, due 05/27/08		     5,000,000       5,000,000    
4.230%, due 07/08/08     2,000,000       2,000,000    
Deutsche Bank AG
3.155%, due 02/01/081 		     4,000,000       4,000,000    
4.753%, due 03/25/081      5,000,000       5,000,000    
Fortis Bank NV-SA
4.850%, due 02/11/08		     5,000,000       5,000,000    
Natixis
4.810%, due 02/08/08		     5,000,000       5,000,000    
5.365%, due 06/02/08     2,000,000       2,000,000    
Norinchukin Bank Ltd.
4.545%, due 03/07/08		     3,000,000       3,000,000    

 

    Face
amount		   Value  
Certificates of deposit—(concluded)  
Banking-non-US—(concluded)  
4.300%, due 04/14/08   $ 5,000,000     $ 5,000,000    
Royal Bank of Scotland
3.750%, due 07/18/08		     5,000,000       5,000,000    
Societe Generale
4.800%, due 02/07/08		     5,000,000       5,000,000    
Svenska Handelsbanken
5.000%, due 10/09/08		     9,000,000       9,000,000    
      83,499,874    
Banking-US—3.06%  
PNC Bank N.A.
3.190%, due 07/25/08		     6,000,000       6,000,000    
State Street Bank & Trust Co.
5.540%, due 02/04/08		     5,000,000       5,000,000    
Wachovia Bank NA (Charlotte)
4.753%, due 04/04/081 		     5,000,000       5,000,000    
      16,000,000    
Total certificates of deposit
(cost—$99,499,874)		             99,499,874    
Commercial paper2—29.10%  
Asset backed-banking—1.43%  
Atlantis One Funding
3.450%, due 02/12/08		     2,500,000       2,497,365    
3.850%, due 04/15/08     5,000,000       4,960,430    
      7,457,795    
Asset backed-miscellaneous—5.29%  
Amsterdam Funding Corp.
4.450%, due 04/08/08		     2,750,000       2,727,225    
Falcon Asset Securitization Corp.
3.350%, due 02/25/08		     5,000,000       4,988,833    
Old Line Funding Corp.
4.080%, due 02/11/08		     5,000,000       4,994,333    
Ranger Funding Co. LLC
3.150%, due 02/06/08		     5,000,000       4,997,813    
Thunderbay Funding
4.120%, due 02/08/08		     5,000,000       4,995,995    
Variable Funding Capital Corp.
4.285%, due 02/13/08		     5,000,000       4,992,858    
      27,697,057    
Banking-non-US—1.24%  
Westpac Banking Corp.
3.450%, due 02/01/08		     6,500,000       6,500,000    
Banking-US—14.94%  
Abbey National N.A. LLC
4.345%, due 02/04/08		     12,000,000       11,995,655    
ABN-AMRO N.A. Finance, Inc.
3.300%, due 02/19/08		     5,000,000       4,991,750    
Bayerische Landesbank
3.280%, due 02/27/08		     10,500,000       10,475,127    
Danske Corp.
3.030%, due 03/03/08		     10,000,000       9,973,908    

 


8


UBS PACE Select Advisors Trust

UBS PACE Money Market Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Commercial paper2—(concluded)  
Banking-US (concluded)  
Deutsche Bank Financial LLC
3.100%, due 02/01/08		   $ 6,000,000     $ 6,000,000    
ING (US) Funding LLC
3.100%, due 04/25/08		     5,000,000       4,963,833    
JPMorgan Chase & Co.
4.830%, due 04/17/08		     6,900,000       6,829,643    
Nordea N.A., Inc.
4.740%, due 02/14/08		     5,000,000       4,991,442    
3.100%, due 02/28/08     5,000,000       4,988,375    
Societe General N.A. Inc.
3.915%, due 04/14/08		     4,000,000       3,968,245    
Stadshypotek Del, Inc.
3.150%, due 04/22/08		     4,000,000       3,971,650    
Toronto Dominion
Holdings USA, Inc.
3.100%, due 03/20/08		     5,000,000       4,979,333    
      78,128,961    
Brokerage—2.86%  
Greenwich Capital Holdings, Inc.
3.950%, due 03/24/08		     5,000,000       4,971,472    
Lehman Brothers Holdings, Inc.
3.040%, due 02/01/08		     10,000,000       10,000,000    
      14,971,472    
Finance-noncaptive diversified—1.91%  
International Lease Finance Corp.
3.020%, due 03/06/08		     10,000,000       9,971,478    
Insurance-multiline—0.74%  
Hartford Financial Services
Group, Inc.
3.780%, due 02/26/08		     3,885,000       3,874,802    
Pharmaceuticals—0.69%  
Pfizer, Inc.
4.410%, due 05/28/08		     3,675,000       3,622,328    
Total commercial paper
(cost—$152,223,893)		             152,223,893    
Short-term corporate obligations—8.14%  
Asset backed-securities—2.98%  
Asscher Finance Corp.
5.400%, due 07/09/083 		     2,000,000       1,999,956    
CC (USA), Inc. (Centauri)
5.340%, due 06/05/083 		     2,500,000       2,499,917    
Dorada Finance, Inc.
3.205%, due 02/01/081,3 		     3,100,000       3,100,101    
K2 (USA) LLC
4.218%, due 04/15/081,3 		     5,000,000       4,999,548    
5.400%, due 06/16/083      3,000,000       3,000,000    
      15,599,522    

 

    Face
amount		   Value  
Short-term corporate obligations—(concluded)  
Banking-non-US—3.63%  
BNP Paribas
4.032%, due 05/13/081 		   $ 3,000,000     $ 3,000,000    
La Caja de Ahorros y Pensiones
de Barcelona
3.848%, due 04/23/081,3 		     4,000,000       4,000,000    
National Australia Bank Ltd.
4.206%, due 02/15/081,3 		     6,000,000       6,000,000    
Societe Generale
4.631%, due 02/04/081,3 		     3,000,000       3,000,000    
Westpac Banking Corp.
4.530%, due 02/06/081,3 		     3,000,000       3,000,000    
      19,000,000    
Banking-US—0.38%  
Citigroup Funding, Inc.
3.110%, due 02/01/081 		     2,000,000       2,000,096    
Finance-captive automotive—1.15%  
Toyota Motor Credit Corp.
3.820%, due 02/01/081 		     3,000,000       3,000,000    
4.616%, due 04/07/081      3,000,000       3,000,111    
      6,000,111    
Total short-term
corporate obligations
(cost—$42,599,729)		             42,599,729    
Repurchase agreements—24.48%  
Repurchase agreement dated
01/31/08 with Barclays Bank PLC,
2.850%, due 02/01/08,
collateralized by $55,502,000
Federal National Mortgage
Association obligations,
6.000% due 05/15/11;
(value—$61,200,205);
proceeds: $60,004,750		     60,000,000       60,000,000    
Repurchase agreement dated
01/31/08 with Deutsche Bank
Securities, 2.850%, due
02/01/08, collateralized by
$25,000,000 Federal Home
Loan Bank obligations, 3.600%
due 01/16/09 and $45,922,000
Federal Home Loan Mortgage
Corp. obligations, zero coupon
due 11/10/08 to 07/15/13;
(value—$69,360,206);
proceeds: $68,005,383		     68,000,000       68,000,000    

 


9


UBS PACE Select Advisors Trust

UBS PACE Money Market Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Repurchase agreements—(concluded)  
Repurchase agreement dated
01/31/08 with State Street
Bank & Trust Co., 1.400%,
due 02/01/08, collateralized
by $9,865 US Treasury Bonds,
7.250% to 8.125% due
08/15/19 to 08/15/22 and
$26,940 US Treasury Bills,
zero coupon due 05/01/08;
(value—$40,817);
proceeds: $40,002		   $ 40,000     $ 40,000    
Total repurchase agreements
(cost—$128,040,000)		         128,040,000    
Total investments
(cost—$533,348,049)—
101.95%		         533,348,049    
Liabilities in excess of other
assets—(1.95)%		         (10,197,239 )  
Net assets (applicable to
523,108,984 shares of
beneficial interest outstanding
equivalent to $1.00 per share)—
100.00%		   $ 523,150,810    

 

1  Variable rate security. The maturity dates reflect earlier of reset dates or stated maturity dates. The interest rates shown are the current rates as of January 31, 2008, and reset periodically.

2  Rates shown are the discount rates at date of purchase.

3  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 6.04% of net assets as of January 31, 2008, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

Issuer breakdown by country of origin

    Percentage of
total investments		  
United States     78.5 %  
France     5.1    
Japan     4.4    
Australia     2.9    
United Kingdom     2.8    
Germany     1.7    
Sweden     1.7    
Switzerland     1.3    
Belgium     0.9    
Spain     0.7    
Total     100.0 %  

 

Weighted average maturity—50 days

See accompanying notes to financial statements.
10


UBS PACE Select Advisors Trust

UBS PACE Government Securities Fixed Income Investments

Performance

For the six months ended January 31, 2008, the Portfolio's Class P shares returned 6.82% (before the deduction of the maximum UBS PACE Select program fee; 6.02% after the deduction of the maximum UBS PACE Select program fee for the six month period). In comparison, the Lehman Brothers Mortgage-Backed Securities Index (the "benchmark") returned 7.02%, and the median return for the Lipper Intermediate US Government Funds category was 6.82%. (Returns for all share classes over various time periods are shown in the "Performance at a Glance" table on page 13. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.)

Market review

The primary focus in the fixed income markets during the period centered on the problems in the subprime mortgage sector. Chairman Ben Bernanke of the Federal Reserve Board (the "Fed") initially indicated that the issues related to the subprime mortgage market would probably not impact the overall economy. However, as the issues escalated, the Fed became more concerned about these issues. As credit concerns mounted, the Fed provided greater amounts of liquidity to the market in order to facilitate normal market operations. In mid-August 2007, the Fed lowered the discount rate—the rate the Fed uses for loans it makes directly to banks. Then, in mid-September, the Fed continued to take action by reducing the federal funds rate from 5.25% to 4.75%. (The federal funds rate, or "fed funds" rate, is the rate that banks charge one another for funds they borrow on an overnight basis.) The Fed again lowered the fed funds rate in October and December 2007, bringing it to 4.25% by the end of 2007.

In a surprise move, the Fed again cut the fed funds rate on January 22, 2008. The 0.75% reduction, taken to address what the Fed called "a weakening of the economic outlook" brought the fed funds rate to 3.50%. Eight days later, on January 30, 2008, the Fed further lowered the fed funds rate by 0.50%, bringing it to 3.00%—the lowest level since May 2005. In another move designed to get banks lending again, the Fed joined central banks in Canada, the UK, the European Union and Switzerland to inject more than $90 billion of liquidity into the global financial system via money market auctions.

UBS PACE Select Advisors Trust – UBS PACE Government Securities Fixed Income Investments

Investment Advisor:

Pacific Investment Management Company LLC ("PIMCO")

Portfolio Manager:

W. Scott Simon

Objective:

Current income

Investment process:

The Portfolio invests in US government bonds. Under normal conditions, the Portfolio may invest in mortgage-backed securities issued or guaranteed by US government agencies and instrumentalities. The Portfolio also invests, to a lesser extent, in investment grade bonds of private issuers, including those backed by mortgages or other assets. The Portfolio may invest in bonds of varying maturities, but normally limits its duration to within two years (plus or minus) of the effective duration of the Portfolio's benchmark index. (Duration is a measure of a bond portfolio's sensitivity to interest rate changes.) PIMCO establishes duration targets based on its expectations for changes in interest rates, and then positions the Portfolio to take advantage of yield curve shifts. Securities are chosen for their value relative to other similar securities.


11


UBS PACE Select Advisors Trust

UBS PACE Government Securities Fixed Income Investments

Advisor's comments – concluded

During the six-month reporting period, mortgages underperformed US Treasury securities of the same duration. (Duration measures a security's sensitivity to interest rate changes.) The average mortgage spread— the difference between the yields paid on U.S. Treasury bonds and higher risk securities—widened by 95 basis points during this time. (A basis point is 1/100th of one percentage point.) Poor performance was primarily a result of increasing volatility and concerns over the subprime sector, which resulted in investors favoring US Treasury securities. Demand from many global investors, such as central banks, was relatively low despite the attractive yields relative to US Treasuries. Market concerns over the financial health of guarantors and mortgage insurers sparked a continued flight to quality. This drove the 10-year Treasury yield down, lowering prices in the mortgage sector. A continued heavy supply of agency mortgage-backed securities also put pressure on prices as non-agency securitization channels were largely closed due to the subprime crisis. As the downturn in the subprime market continued, delinquency and foreclosure rates for subprime loans from recent vintages climbed to record levels.

The Portfolio's longer-than-benchmark duration had a positive effect on returns as the 10-year Treasury note fell 115 basis points over the reporting period to end at 3.59%. The Portfolio emphasized short-term securities, which benefited performance as the yield curve steepened by 185 basis points, as measured by the change in the two-year and 30-year yield differences. The Portfolio was overweight to mortgage-backed securities relative to interest rate swaps. (An interest rate swap is an agreement between two parties where one stream of future interest payments is exchanged for another based on a specified principal amount. In these, a fixed payment is often exchanged for a floating payment that is linked to an interest rate, such as the LIBOR, or the London Interbank Offered Rate.)

Adjusting the Portfolio's coupon positioning within agency mortgages added to returns. Our strategy was to opportunistically move in and out of coupons in response to buying and selling on the part of mortgage service providers. An emphasis on conventional mortgage-backed securities issued by Fannie Mae (Federal National Mortgage Association), which underperformed Ginnie Mae (Government National Mortgage Association) issues in the flight to quality, detracted from returns. An emphasis on 30-year conventional issues also hurt performance, trailing the 15-year sector. In addition, the Portfolio held some non-agency positions which underperformed relative to agency mortgage-backed securities, detracting from performance as a result. On a positive note, exposure to high-quality, low duration home equity asset-backed securities benefited the Portfolio.

Special considerations

The Portfolio may be appropriate for long-term investors seeking current income who are able to withstand short-term fluctuations in the fixed income markets in return for potentially higher returns over the long term. The yield and value of the Portfolio change every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the issuers in which the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.


12


UBS PACE Select Advisors Trust

UBS PACE Government Securities Fixed Income Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 01/31/08       6 months   1 year   5 years   10 years   Since
inception1 		  
Before deducting   Class A2      6.68 %     7.75 %     4.18 %   N/A     4.96 %  
maximum sales charge   Class B3      6.26 %     7.00 %     3.41 %   N/A     4.58 %  
or UBS PACE Select   Class C4      6.40 %     7.28 %     3.65 %   N/A     4.85 %  
program fee   Class Y5      6.85 %     8.18 %     4.52 %   N/A     5.29 %  
    Class P6      6.82 %     8.02 %     4.42 %   5.67%     6.10 %  
After deducting   Class A2      1.88 %     2.87 %     3.23 %   N/A     4.26 %  
maximum sales charge   Class B3      1.26 %     2.00 %     3.06 %   N/A     4.58 %  
or UBS PACE Select   Class C4      5.65 %     6.53 %     3.65 %   N/A     4.85 %  
program fee   Class P6      6.02 %     6.41 %     2.86 %   4.09%     4.52 %  
Lehman Brothers Mortgage-Backed Securities Index     7.02 %     8.81 %     4.82 %   6.00%     6.45 %  
Lipper Intermediate US Government Funds median     6.82 %     8.92 %     3.80 %   5.13%     5.62 %  

 

Average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: Class A—1-year period, 0.96%; 5-year period, 2.90%; since inception, 4.04%; Class B—1-year period, -0.09%; 5-year period, 2.72%; since inception, 4.36%; Class C—1-year period, 4.44%; 5-year period, 3.31%; since inception, 4.64%; Class Y—1-year period, 6.07%; 5-year period, 4.18%; since inception, 5.07%; Class P—1-year period, 4.42%; 5-year period, 2.54%; 10-year period, 4.00%; since inception, 4.41%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 30, 2007 prospectuses were as follows: Class A—1.13% and 1.07%; Class B—1.88% and 1.82%; Class C—1.70% and 1.57%; Class Y—0.79% and 0.76%; and Class P—0.91% and 0.82%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. Effective August 1, 2007, the portfolio and UBS Global AM have entered into a written fee waiver agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees to the extent necessary to reflect the lower sub-advisory fee paid by UBS Global AM to PIMCO. The portfolio and UBS Global AM have also entered into an additional written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse the portfolio so that the ordinary total operating expenses of each class through November 30, 2008 (excluding dividend expense, borrowing costs and interest expense, if any) would not exceed Class A—1.07%; Class B—1.82%; Class C—1.57%; Class Y—0.82%; and Class P—0.82%. The portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses under the preceding sentence to the extent that it can do so over the following three fiscal years without causing the portfolio's expenses in any of those three years to exceed these expense caps described above.

1  Since inception returns are calculated as of commencement of issuance or reissuance on August 24, 1995 for Class P shares, January 31, 2001 for Class A shares, December 18, 2000 for Class B shares, December 4, 2000 for Class C shares and February 2, 2001 for Class Y shares. Since inception returns for the Index and Lipper median are shown as of August 31, 1995, which is the month-end after the inception date of the oldest share class (Class P).

2  Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.

3  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

4  Maximum contingent deferred sales charge for Class C shares is 0.75% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

5  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

6  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual UBS PACE Select program fee of 1.5% of the value of Class P shares.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

The Lehman Brothers Mortgage-Backed Securities Index covers fixed rate securitized issues backed by the mortgage pools of the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. Graduated Payment Mortgages and Graduated Equity Mortgages are excluded. The average-weighted life is approximately eight years.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for the period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.


13


UBS PACE Select Advisors Trust

UBS PACE Government Securities Fixed Income Investments

Portfolio statistics (unaudited)

Characteristics   01/31/08  
Weighted average duration     2.7 yrs.  
Weighted average maturity     3.1 yrs.  
Average coupon     5.06 %  
Average quality1      AAA    
Net assets (mm)   $ 690.1    
Number of holdings     429    
Portfolio composition2    01/31/08  
Bonds     136.5 %  
Options, futures and swaps     (0.0 )3   
Investments sold short     (10.8 )  
Cash equivalents and other assets less liabilities     (25.7 )  
Total     100.0 %  
Asset allocation2    01/31/08  
US government agency mortgage pass-through certificates     126.9 %  
Collateralized mortgage obligations     6.3    
Asset-backed securities     2.5    
Corporate notes     0.7    
Stripped mortgage-backed securities     0.1    
Options, futures and swaps     (0.0 )3   
Investments sold short     (10.8 )  
Cash equivalents and other assets less liabilities     (25.7 )  
Total     100.0 %  

 

1  Credit quality ratings shown are based on the ratings assigned to portfolio holdings by Standard & Poor's Ratings Group, an independent rating agency.

2  Weightings represent percentages of the Portfolio's net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time.

3  Weighting represents less than 0.05% of the Portfolio's net assets as of January 31, 2008.


14


UBS PACE Select Advisors Trust

UBS PACE Government Securities Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Government national mortgage association certificates—11.82%  
GNMA
5.500%, due 12/15/32		   $ 123,297     $ 125,911    
5.500%, due 07/15/33     927,070       946,443    
5.500%, due 12/15/33     7,512,844       7,669,841    
5.500%, due 01/15/34     2,474,374       2,525,250    
5.500%, due 02/15/34     242,715       247,706    
5.500%, due 03/15/34     493,305       503,448    
5.500%, due 04/15/34     718,418       733,189    
5.500%, due 05/15/34     831,316       848,409    
5.500%, due 06/15/34     200,755       204,883    
5.500%, due 07/15/35     669,933       683,525    
5.500%, due 08/15/35     366,514       373,949    
5.500%, due 10/15/35     4,100,839       4,183,661    
5.500%, due 11/15/35     392,213       400,170    
5.500%, due 12/15/35     8,452,307       8,623,773    
5.500%, due 01/15/36     4,924,639       5,023,965    
5.500%, due 05/15/36     297,683       303,687    
6.000%, due 07/15/36     242,857       250,923    
6.000%, due 07/15/37     5,890,023       6,085,644    
6.500%, due 08/15/36     913,168       951,136    
6.500%, due 09/15/36     612,464       637,929    
6.500%, due 10/15/36     118,077       122,986    
6.500%, due 08/15/37     554,968       578,063    
6.500%, due 09/15/37     2,445,031       2,546,783    
7.500%, due 08/15/21     9,795       10,554    
7.500%, due 09/15/23     1,086       1,171    
8.000%, due 08/15/09     4,892       5,043    
8.000%, due 02/15/23     2,677       2,934    
8.250%, due 04/15/19     579,285       633,203    
9.000%, due 08/15/09     77,190       77,470    
10.500%, due 02/15/19     34,364       41,026    
10.500%, due 06/15/19     41,435       49,467    
10.500%, due 07/15/19     99,086       118,293    
10.500%, due 07/15/20     4,197       4,941    
10.500%, due 08/15/20     47,582       56,963    
10.500%, due 09/15/20     3,936       4,712    
11.500%, due 05/15/19     3,830       4,650    
GNMA II
9.000%, due 04/20/25		     36,594       40,210    
9.000%, due 12/20/26     10,470       11,510    
9.000%, due 01/20/27     13,666       15,030    
9.000%, due 06/20/30     1,800       1,981    
9.000%, due 07/20/30     13,005       14,311    
9.000%, due 09/20/30     3,184       3,504    
9.000%, due 10/20/30     8,952       9,851    
9.000%, due 11/20/30     48,284       53,131    
GNMA II ARM
5.625%, due 07/20/17		     19,500       19,696    
5.625%, due 09/20/21     286,535       288,964    
5.625%, due 08/20/25     56,013       56,447    
5.625%, due 09/20/25     62,963       63,438    
5.625%, due 08/20/26     71,124       71,673    
5.625%, due 09/20/26     10,813       10,912    
5.625%, due 07/20/27     27,457       27,661    

 

    Face
amount		   Value  
Government national mortgage association certificates—(concluded)  
5.625%, due 08/20/27   $ 68,614     $ 69,234    
5.625%, due 07/20/30     387,490       390,393    
5.625%, due 08/20/30     316,821       319,617    
6.125%, due 11/20/21     47,375       48,217    
6.125%, due 11/20/22     88,513       90,008    
6.125%, due 12/20/24     1,515       1,543    
6.125%, due 10/20/25     48,336       49,161    
6.125%, due 12/20/25     9,585       9,745    
6.125%, due 10/20/26     30,716       31,290    
6.125%, due 12/20/26     42,549       43,332    
6.125%, due 11/20/27     128,568       130,617    
6.125%, due 12/20/27     12,524       12,759    
6.125%, due 10/20/29     36,128       36,808    
6.125%, due 10/20/30     42,321       43,089    
6.125%, due 09/20/31     54,241       55,172    
6.250%, due 02/20/28     6,216       6,307    
6.375%, due 04/20/18     25,794       26,416    
6.375%, due 05/20/21     8,913       9,134    
6.375%, due 06/20/22     232,023       237,230    
6.375%, due 01/20/23     181,268       184,859    
6.375%, due 03/20/23     84,250       86,004    
6.375%, due 01/20/24     236,566       241,481    
6.375%, due 04/20/24     223,324       228,371    
6.375%, due 01/20/25     20,276       20,732    
6.375%, due 02/20/25     51,834       52,928    
6.375%, due 03/20/25     74,452       76,075    
6.375%, due 05/20/25     171,826       176,045    
6.375%, due 06/20/25     60,169       61,651    
6.375%, due 03/20/26     41,209       42,062    
6.375%, due 04/20/26     375,790       383,819    
6.375%, due 06/20/26     186,704       190,760    
6.375%, due 01/20/27     226,138       230,561    
6.375%, due 02/20/27     33,836       34,593    
6.375%, due 04/20/27     125,600       128,341    
6.375%, due 01/20/28     29,498       30,117    
6.375%, due 02/20/28     16,902       17,256    
6.375%, due 04/20/30     89,017       91,052    
6.375%, due 05/20/30     1,663,774       1,702,635    
6.500%, due 01/20/18     261,977       268,688    
6.500%, due 05/20/18     8,997       9,242    
6.500%, due 06/20/19     64,574       66,640    
6.500%, due 03/20/25     35,247       36,154    
6.500%, due 06/20/30     26,339       27,008    
GNMA TBA
5.500%, TBA		     25,000,000       25,471,871    
6.000%, TBA     3,700,000       3,820,250    
Total government national
mortgage association
certificates
(cost—$79,954,049)		             81,559,287    

 


15


UBS PACE Select Advisors Trust

UBS PACE Government Securities Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Federal home loan mortgage corporation certificates—30.62%  
FHLMC
5.000%, due 03/01/36		   $ 89,692     $ 89,335    
5.000%, due 04/01/36     186,649       185,906    
5.000%, due 06/01/36     3,761,376       3,745,200    
5.000%, due 11/01/36     14,579,956       14,521,934    
5.500%, due 02/01/33     1,081,723       1,097,149    
5.500%, due 03/01/33     598,989       607,532    
5.500%, due 04/01/33     686,245       696,031    
5.500%, due 05/01/33     777,974       789,069    
5.500%, due 06/01/33     3,457,037       3,506,337    
5.500%, due 10/01/33     806,802       818,308    
5.500%, due 12/01/33     405,528       411,311    
5.500%, due 03/01/34     139,576       141,477    
5.500%, due 10/01/34     1,187,330       1,204,263    
5.500%, due 12/01/34     778,882       789,490    
5.500%, due 02/01/35     6,911,686       7,005,819    
5.500%, due 05/01/35     225,180       228,106    
5.500%, due 06/01/35     1,649,428       1,670,857    
5.500%, due 03/01/37     1,239,536       1,255,137    
5.500%, due 04/01/37     13,451,331       13,620,635    
6.000%, due 07/01/08     180,721       182,991    
6.000%, due 11/01/36     1,442,835       1,479,516    
6.000%, due 01/01/37     494,078       506,639    
6.000%, due 06/01/37     2,063,087       2,115,548    
6.000%, due 08/01/37     2,683,397       2,751,631    
6.000%, due 11/01/37     21,316,599       21,858,645    
6.000%, due 01/01/38     7,000,005       7,178,004    
7.000%, due 08/01/25     2,144       2,287    
7.500%, due 10/01/17     4,524       4,922    
8.000%, due 03/01/13     160,936       175,026    
8.500%, due 05/01/16     21,224       21,703    
9.000%, due 07/01/09     1,187       1,230    
9.000%, due 02/01/10     4,472       4,715    
9.000%, due 04/01/25     73,043       75,906    
9.750%, due 11/01/16     31,065       32,513    
10.500%, due 11/01/20     8,741       9,084    
11.000%, due 05/01/11     5,826       5,965    
11.000%, due 03/01/13     1,862       1,906    
11.000%, due 07/01/15     2,926       3,447    
11.000%, due 09/01/15     5,958       6,302    
11.000%, due 10/01/15     1,136       1,284    
11.000%, due 12/01/15     11,119       13,033    
11.000%, due 04/01/19     5,471       6,509    
11.000%, due 06/01/19     488       580    
11.000%, due 08/01/20     70       82    
11.000%, due 09/01/20     3,395       4,011    
11.500%, due 05/01/10     5,176       5,309    
11.500%, due 11/01/10     8,958       9,809    
11.500%, due 09/01/14     1,509       1,640    
11.500%, due 01/01/16     3,390       3,978    
11.500%, due 01/01/18     11,536       13,536    
11.500%, due 05/01/19     6,455       7,259    
11.500%, due 06/01/19     22,449       26,688    

 

    Face
amount		   Value  
Federal home loan mortgage corporation certificates—(concluded)  
FHLMC ARM
6.212%, due 10/01/29		   $ 23,741     $ 24,804    
6.510%, due 01/01/28     116,965       119,105    
6.927%, due 11/01/27     228,629       234,977    
7.042%, due 10/01/23     264,280       269,721    
7.077%, due 07/01/24     436,662       445,452    
7.135%, due 07/01/28     425,912       430,028    
7.159%, due 04/01/29     493,236       498,347    
7.195%, due 11/01/29     903,112       930,435    
7.196%, due 11/01/25     554,284       566,112    
7.241%, due 12/01/29     254,938       258,866    
7.279%, due 06/01/28     711,481       721,052    
7.279%, due 01/01/29     402,720       409,763    
7.309%, due 10/01/27     739,015       756,787    
7.375%, due 01/01/30     40,432       41,465    
7.405%, due 10/01/27     511,084       520,344    
FHLMC TBA
5.000%, TBA		     21,900,000       21,763,125    
5.500%, TBA     71,000,000       71,865,348    
6.000%, TBA     22,000,000       22,550,000    
Total federal home loan
mortgage corporation
certificates
(cost—$209,826,031)		             211,301,325    
Federal housing administration
certificates—0.26%		  
FHA GMAC
7.400%, due 02/01/21		     671,990       671,990    
7.480%, due 04/01/19     57,226       57,369    
FHA Reilly
6.896%, due 07/01/20		     1,107,714       1,074,482    
Total federal housing
administration certificates
(cost—$1,841,574)		             1,803,841    
Federal national mortgage association certificates—84.19%  
FNMA
4.500%, due 10/01/19		     20,367,246       20,423,299    
4.500%, due 02/01/20     1,243,202       1,245,848    
4.500%, due 04/01/20     2,810,612       2,817,471    
4.500%, due 09/01/20     927,831       930,385    
4.500%, due 10/01/20     31,803       31,871    
4.500%, due 12/01/21     26,880       26,941    
4.500%, due 03/01/22     904,989       907,106    
4.500%, due 05/01/22     31,385       31,458    
4.500%, due 06/01/22     879,477       881,534    
4.500%, due 07/01/22     4,726,808       4,737,864    
5.000%, due 09/01/171      34,259       34,825    
5.000%, due 10/01/171      1,635,036       1,662,043    
5.000%, due 05/01/181      905,747       920,132    
5.000%, due 06/01/181      19,325       19,643    
5.000%, due 07/01/181      24,312       24,698    

 


16


UBS PACE Select Advisors Trust

UBS PACE Government Securities Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Federal national mortgage association certificates—(continued)  
5.000%, due 08/01/181    $ 412,868     $ 419,425    
5.000%, due 10/01/181      1,364,273       1,385,938    
5.000%, due 11/01/181      7,125,147       7,238,300    
5.000%, due 12/01/181      141,138       143,379    
5.000%, due 02/01/191      7,228,015       7,339,563    
5.000%, due 04/01/191      1,905,928       1,935,342    
5.000%, due 05/01/191      604,548       613,878    
5.000%, due 06/01/191      1,460,570       1,483,193    
5.000%, due 07/01/191      9,478,399       9,624,730    
5.000%, due 08/01/191      2,482,290       2,520,599    
5.000%, due 09/01/191      42,607       43,264    
5.000%, due 10/01/191      1,306,584       1,326,749    
5.000%, due 12/01/191      1,749,909       1,776,916    
5.000%, due 01/01/201      2,885,485       2,927,455    
5.000%, due 02/01/201      3,744,418       3,798,404    
5.000%, due 03/01/201      1,019,246       1,033,719    
5.000%, due 04/01/201      4,390,997       4,453,707    
5.000%, due 05/01/201      43,436       44,051    
5.000%, due 06/01/201      41,442       42,029    
5.000%, due 07/01/201      1,487,107       1,508,176    
5.000%, due 08/01/201      3,422,336       3,470,821    
5.000%, due 09/01/201      1,312,837       1,331,436    
5.000%, due 10/01/201      26,653,361       27,030,974    
5.000%, due 02/01/211      169,866       172,272    
5.000%, due 12/01/331      32,634,708       32,567,494    
5.000%, due 08/01/351      293,695       292,637    
5.000%, due 09/01/351      285,660       284,631    
5.000%, due 10/01/351      31,206,859       31,094,464    
5.000%, due 02/01/361      49,896,789       49,717,081    
5.500%, due 05/01/14     5,281       5,426    
5.500%, due 06/01/17     206,065       209,736    
5.500%, due 01/01/18     14,356       14,746    
5.500%, due 06/01/20     30,422       31,175    
5.500%, due 07/01/20     88,004       90,180    
5.500%, due 10/01/20     83,862       85,936    
5.500%, due 12/01/20     30,916       31,681    
5.500%, due 01/01/21     167,001       171,098    
5.500%, due 02/01/21     169,930       174,094    
5.500%, due 03/01/21     1,215,533       1,245,319    
5.500%, due 04/01/21     853,207       874,116    
5.500%, due 05/01/21     290,753       297,878    
5.500%, due 06/01/21     1,644,655       1,684,959    
5.500%, due 07/01/21     1,085,718       1,112,330    
5.500%, due 08/01/21     716,750       734,314    
5.500%, due 10/01/21     909,152       931,590    
5.500%, due 11/01/21     1,761,521       1,804,687    
5.500%, due 12/01/21     1,679,398       1,720,552    
5.500%, due 02/01/22     738,130       756,218    
5.500%, due 03/01/22     5,616,523       5,753,532    
5.500%, due 04/01/22     44,699       45,790    
5.500%, due 06/01/22     494,625       506,691    
5.500%, due 07/01/22     6,516,244       6,675,200    
5.500%, due 08/01/22     2,392,536       2,450,899    
5.500%, due 02/01/321      94,166       95,766    

 

    Face
amount		   Value  
Federal national mortgage association certificates—(continued)  
5.500%, due 11/01/321    $ 1,783,528     $ 1,811,657    
5.500%, due 01/01/331      909,901       924,252    
5.500%, due 02/01/331      530,553       538,558    
5.500%, due 06/01/331      166,791       169,308    
5.500%, due 09/01/331      565,015       573,539    
5.500%, due 10/01/331      932,772       946,844    
5.500%, due 11/01/331      228,893       232,346    
5.500%, due 12/01/331      908,787       922,497    
5.500%, due 01/01/341      321,733       326,587    
5.500%, due 04/01/341      836,725       848,862    
5.500%, due 07/01/341      543,122       551,316    
5.500%, due 01/01/351      407,364       413,002    
5.500%, due 04/01/351      4,912,194       4,980,187    
5.500%, due 05/01/351      8,477,203       8,594,543    
5.500%, due 06/01/351      1,892,883       1,919,084    
5.500%, due 07/01/351      594,031       602,253    
5.500%, due 08/01/351      1,644,287       1,667,046    
5.500%, due 01/01/361      810,344       821,560    
5.500%, due 02/01/361      800,853       811,938    
5.500%, due 03/01/361      22,468,348       22,779,350    
5.500%, due 04/01/361      880,250       892,292    
5.500%, due 07/01/361      386,601       391,889    
5.500%, due 12/01/361      19,250,117       19,513,464    
5.500%, due 02/01/371      3,437,139       3,484,160    
6.000%, due 01/01/32     143,181       147,517    
6.000%, due 04/01/32     158,311       162,918    
6.000%, due 09/01/32     155,371       159,893    
6.000%, due 10/01/32     155,361       159,882    
6.000%, due 01/01/33     343,778       353,783    
6.000%, due 02/01/33     284,494       292,620    
6.000%, due 06/01/33     371,816       382,436    
6.000%, due 07/01/33     212,984       219,068    
6.000%, due 10/01/33     219,495       225,764    
6.000%, due 11/01/33     608,504       625,885    
6.000%, due 02/01/34     2,264,002       2,328,670    
6.000%, due 05/01/34     147,734       151,852    
6.000%, due 09/01/34     423,484       435,288    
6.000%, due 01/01/35     1,019,360       1,047,577    
6.000%, due 02/01/35     813,397       835,721    
6.000%, due 04/01/35     10,105       10,379    
6.000%, due 05/01/35     882,539       906,567    
6.000%, due 06/01/35     488,155       501,891    
6.000%, due 07/01/35     1,918,352       1,970,495    
6.000%, due 08/01/35     683,992       702,583    
6.000%, due 09/01/35     760,462       781,131    
6.000%, due 10/01/35     268,988       276,300    
6.000%, due 11/01/35     885,025       909,081    
6.000%, due 01/01/36     627,764       644,827    
6.000%, due 04/01/36     1,351,281       1,386,852    
6.000%, due 08/01/36     827,239       849,015    
6.000%, due 09/01/36     4,942,752       5,072,865    
6.000%, due 10/01/36     535,187       549,275    
6.000%, due 11/01/36     1,030,566       1,057,695    
6.000%, due 12/01/36     4,185,015       4,295,183    

 


17


UBS PACE Select Advisors Trust

UBS PACE Government Securities Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Federal national mortgage association certificates—(continued)  
6.000%, due 01/01/37   $ 2,432,512     $ 2,496,545    
6.000%, due 03/01/37     3,843,374       3,944,431    
6.000%, due 04/01/37     2,584,712       2,652,674    
6.000%, due 05/01/37     999,164       1,025,436    
6.000%, due 06/01/37     794,793       815,691    
6.000%, due 07/01/37     2,963,809       3,041,750    
6.000%, due 08/01/37     984,276       1,010,156    
6.000%, due 09/01/37     2,858,191       2,933,343    
6.000%, due 10/01/37     31,274,758       32,097,086    
6.000%, due 11/01/37     22,309,919       22,896,530    
6.000%, due 12/01/37     16,427,461       16,859,400    
6.000%, due 01/01/38     3,851,424       3,952,692    
6.500%, due 09/01/12     10,530       11,012    
6.500%, due 12/01/12     22,155       23,169    
6.500%, due 01/01/13     3,964       4,151    
6.500%, due 02/01/13     23,898       24,992    
6.500%, due 03/01/13     41,118       43,001    
6.500%, due 04/01/13     3,787       3,961    
6.500%, due 06/01/13     65,178       68,252    
6.500%, due 07/01/13     12,552       13,143    
6.500%, due 08/01/13     15,779       16,523    
6.500%, due 09/01/13     103,634       108,523    
6.500%, due 10/01/13     26,804       28,068    
6.500%, due 11/01/13     52,770       55,260    
6.500%, due 07/01/19     137,789       144,135    
6.500%, due 04/01/26     7,952       8,342    
6.500%, due 03/01/29     86,427       90,429    
6.500%, due 05/01/29     203,625       213,104    
6.500%, due 10/01/36     2,047,435       2,125,684    
6.500%, due 10/01/37     133,347       138,436    
7.500%, due 06/01/24     2,302       2,496    
7.500%, due 07/01/24     4,791       5,193    
7.500%, due 08/01/24     32,876       35,638    
7.500%, due 12/01/24     2,576       2,792    
7.500%, due 06/01/25     12,112       13,134    
7.500%, due 07/01/25     6,078       6,591    
7.500%, due 10/01/26     18,519       20,075    
7.500%, due 11/01/26     30,339       32,866    
8.000%, due 11/01/26     48,411       52,606    
8.500%, due 09/01/25     157,150       171,880    
9.000%, due 05/01/09     37,030       37,660    
9.000%, due 10/01/19     73,944       81,112    
9.000%, due 02/01/26     37,093       40,898    
9.250%, due 04/01/10     11,681       11,911    
9.250%, due 05/01/14     7,576       7,908    
9.250%, due 12/01/15     4,011       4,090    
9.500%, due 12/01/09     2,756       2,887    
10.000%, due 08/01/19     40,208       46,046    
10.500%, due 02/01/12     1,167       1,297    
10.500%, due 07/01/13     2,076       2,126    
10.500%, due 09/01/15     17,932       20,848    
10.500%, due 11/01/15     31       33    
10.500%, due 08/01/20     2,768       3,140    
10.500%, due 09/01/21     2,102       2,337    

 

    Face
amount		   Value  
Federal national mortgage association certificates—(concluded)      
10.500%, due 04/01/22   $ 6,538     $ 7,227    
11.000%, due 07/01/13     4,493       4,758    
11.000%, due 10/01/15     9,056       10,528    
11.000%, due 11/01/15     27,126       28,726    
11.000%, due 01/01/16     5,891       6,239    
11.000%, due 02/01/16     4,246       4,497    
11.000%, due 03/01/16     2,308       2,444    
11.000%, due 05/01/20     3,518       3,838    
FNMA ARM
5.199%, due 11/01/23		     17,558       18,088    
5.645%, due 07/01/30     30,007       30,549    
6.063%, due 03/01/44     1,360,880       1,365,504    
6.541%, due 05/01/30     149,288       152,055    
6.571%, due 10/01/26     1,458,776       1,467,104    
6.604%, due 02/01/26     81,435       82,952    
6.659%, due 09/01/15     200,825       203,256    
7.033%, due 03/01/25     552,481       571,098    
7.095%, due 09/01/26     78,190       79,769    
7.158%, due 02/01/30     94,327       96,248    
7.255%, due 02/01/29     8,773       8,913    
7.416%, due 12/01/27     81,342       83,206    
FNMA TBA
5.500%, TBA		     6,000,000       6,144,372    
5.500%, TBA1      17,000,000       17,196,554    
6.000%, TBA     50,500,000       51,775,483    
6.500%, TBA     42,700,000       44,297,390    
Total federal national mortgage
association certificates
(cost—$568,738,370)		           581,071,486    
Collateralized mortgage obligations—6.30%      
Bear Stearns Commercial Mortgage
Securities Inc.,
Series 2005-PW10, Class A4
5.405%, due 12/11/40		     8,000,000       8,173,942    
Series 2006-PW13, Class A4
5.540%, due 09/11/41		     5,600,000       5,586,692    
Chevy Chase Funding LLC,
Series 2004-1, Class A1
3.656%, due 01/25/352,3 		     413,052       389,887    
Chevy Chase Mortgage
Funding Corp.,
Series 2007-2A, Class A1
3.506%, due 05/25/482,3 		     2,541,122       2,339,548    
Countrywide Alternative
Loan Trust,
Series 2006-0A2, Class A1
4.144%, due 05/20/463 		     5,215,921       4,756,734    
Federal Agricultural
Mortgage Corp. ARM,
Series 2002, Class AA1
7.856%, due 04/25/11		     839,221       897,303    
FHLMC REMIC,
Series 0023, Class KZ
6.500%, due 11/25/23		     119,257       126,937    

 


18


UBS PACE Select Advisors Trust

UBS PACE Government Securities Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Collateralized mortgage obligations—
(continued)		  
Series 0159, Class H
4.500%, due 09/15/21		   $ 29,515     $ 29,460    
Series 1003, Class H
5.000%, due 10/15/203 		     145,431       145,501    
Series 1349, Class PS
7.500%, due 08/15/22		     6,146       6,133    
Series 1502, Class PX
7.000%, due 04/15/23		     941,491       982,768    
Series 1534, Class Z
5.000%, due 06/15/23		     467,745       474,445    
Series 1573, Class PZ
7.000%, due 09/15/23		     164,435       172,600    
Series 1658, Class GZ
7.000%, due 01/15/24		     80,453       85,034    
Series 1694, Class Z
6.500%, due 03/15/24		     486,511       518,741    
Series 1775, Class Z
8.500%, due 03/15/25		     15,183       16,433    
Series 2411, Class FJ
4.586%, due 12/15/293 		     118,476       117,886    
FNMA REMIC,
Trust 1987-002, Class Z
11.000%, due 11/25/17		     432,176       492,428    
Trust 1988-007, Class Z
9.250%, due 04/25/18		     353,450       385,441    
Trust 1992-074, Class Z
8.000%, due 05/25/22		     3,027       3,159    
Trust 1992-129, Class L
6.000%, due 07/25/22		     23,264       24,539    
Trust 1992-158, Class ZZ
7.750%, due 08/25/22		     62,402       68,350    
Trust 1993-037, Class PX
7.000%, due 03/25/23		     911,748       982,363    
Trust 1993-240, Class Z
6.250%, due 12/25/13		     3,652       3,772    
Trust 1993-250, Class Z
7.000%, due 12/25/23		     35,532       37,711    
Trust 2007-114, Class A6
3.576%, due 10/27/373 		     5,000,000       4,755,000    
Trust G92-040, Class ZC
7.000%, due 07/25/22		     83,324       89,530    
Trust G94-006, Class PJ
8.000%, due 05/17/24		     107,384       118,335    
GNMA REMIC, Trust 2000-009,
Class FH
4.581%, due 02/16/303 		     84,187       84,767    
Indymac Index Mortgage
Loan Trust,
Series 2005-AR2, Class 2A1A
3.696%, due 02/25/353 		     2,088,896       1,979,508    
Sequoia Mortgage Trust,
Series 5, Class A
4.284%, due 10/19/263 		     847,548       823,331    
Small Business Administration,
Series 2000-10, Class B1
7.449%, due 08/01/10		     149,413       154,084    

 

    Face
amount		   Value  
Collateralized mortgage obligations—
(concluded)		  
Structured ARM Loan,
Series 2007-4, Class 1A2
3.596%, due 05/25/37		   $ 4,507,309     $ 4,245,415    
Structured Asset Mortgage
Investments Inc.,
Series 2006-AR3, Class 11A1
3.586%, due 04/25/363 		     2,673,396       2,450,417    
Washington Mutual,
Series 2003-R1, Class A1
3.916%, due 12/25/273 		     2,036,955       1,946,223    
Total collateralized
mortgage obligations
(cost—$44,453,206)		             43,464,417    
Asset-backed securities—2.50%  
Centex Home Equity Loan Trust,
Series 2006-A, Class AV1
3.426%, due 06/25/363 		     359,444       358,373    
Citibank Omni Master Trust,
Series 2007-A9A, Class A9
5.962%, due 12/23/132,3 		     5,400,000       5,335,740    
Conseco Finance
Securitizations Corp.,
Series 2000-5, Class M1
8.400%, due 02/01/324,5 		     212,033       7,786    
EMC Mortgage Loan Trust,
Series 2003-A, Class A2
4.126%, due 08/25/402,3 		     482,799       442,817    
Green Tree Financial Corp.,
Series 1998-2, Class A5
6.240%, due 11/01/16		     82,691       84,749    
Long Beach Mortgage Loan Trust,
Series 2006-WL1, Class 2A1
3.466%, due 01/25/363 		     317,956       317,198    
Renaissance Home Equity
Loan Trust,
Series 2003-2, Class A
3.816%, due 08/25/333 		     523,536       504,259    
Soundview Home Equity
Loan Trust,
Series 2007-OPT1, Class 2A1
3.456%, due 06/25/373 		     8,456,663       8,043,013    
Specialty Underwriting &
Residential Financing,
Series 2003-BC1, Class A
3.716%, due 01/25/343 		     57,784       56,024    
Series 2006-BC1, Class A2A
3.456%, due 12/25/363 		     399,275       397,137    
Wells Fargo Home Equity Trust,
Series 2005-2, Class AII2
3.616%, due 10/25/352,3 		     1,748,123       1,715,600    
Total asset-backed securities
(cost—$18,037,425)		             17,262,696    

 


19


UBS PACE Select Advisors Trust

UBS PACE Government Securities Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Stripped mortgage-backed securities5—0.10%  
FHLMC REMIC,
Series 0013, Class B
7.000%, due 06/25/234 		   $ 325,745     $ 60,509    
Series 1554, Class I
6.500%, due 08/15/084 		     2,851       33    
Series 2136, Class GD
7.000%, due 03/15/294 		     24,247       4,334    
Series 2178, Class PI
7.500%, due 08/15/294 		     126,759       20,369    
Hilton Hotel Pool Trust,
Series 2000-HLTA, Class X
0.889%, due 10/03/152,6 		     38,377,033       637,466    
Total stripped mortgage-backed
securities
(cost—$716,086)		             722,711    
Corporate note—0.72%  
SLM Corp. MTN
3.625%, due 03/17/08
(cost—$4,984,367)		     5,000,000       4,975,200    
Short-term US government obligations7—0.12%  
US Treasury Bills
2.955%, due 03/13/088 		     400,000       398,654    
3.021%, due 03/13/088      40,000       39,863    
3.119%, due 03/13/08     400,000       398,579    
Total Short-term
US government obligations
(cost—$837,096)		             837,096    
Repurchase agreement—1.80%  
Repurchase agreement dated
01/31/08 with State Street
Bank & Trust Co.,
1.400%, due 02/01/08,
collateralized by $8,890,000
US Treasury Bonds, 8.125% due
08/15/19; (value—$12,657,138);
proceeds: $12,407,482
(cost—$12,407,000)		     12,407,000       12,407,000    

 

    Number of
contracts		   Value  
Option—0.00%  
Call option purchased—0.00%  
US Treasury Note 10 Year
Futures, strike @ $126.00,
expires 02/22/08
(cost—$254)		     14     $ 219    
Total investments before
investments sold short
(cost—$941,795,458)—
138.43%		             955,405,278    
    Face
amount		      
Investments sold short—(10.84)%  
FNMA TBA
5.000%, TBA		   $ (57,000,000 )     (57,108,745 )  
5.500%, TBA     (17,500,000 )     (17,729,688 )  
Total investments sold short
(proceeds—$74,866,250)—
(10.84)%		             (74,838,433 )  
Liabilities in excess of
other assets—(27.59)%		             (190,422,250 )  
Net assets—100.00%   $ 690,144,595    

 


20


UBS PACE Select Advisors Trust

UBS PACE Government Securities Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

1  Entire amount pledged as collateral for investments sold short.

2  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 1.57% of net assets as of January 31, 2008, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

3  Floating rate security. The interest rate shown is the current rate as of January 31, 2008.

4  Illiquid security. These securities represent 0.01% of net assets as of January 31, 2008.

5  Interest Only Security. This security entitles the holder to receive interest payments from an underlying pool of mortgages. The risk associated with this security is related to the speed of the principal paydowns. High prepayments would result in a smaller amount of interest being received and cause the yield to decrease. Low prepayments would result in a greater amount of interest being received and cause the yield to increase.

6  Variable rate security. The interest rate shown is the current rate as of January 31, 2008.

7  Rate shown is the discount rate at date of purchase.

8  Entire amount delivered to broker as collateral for futures transactions.

ARM  Adjustable Rate Mortgage. The interest rate shown is the current rate as of January 31, 2008.

FHA  Federal Housing Administration

FHLMC  Federal Home Loan Mortgage Corporation

FNMA  Federal National Mortgage Association

GMAC  General Motors Acceptance Corporation

GNMA  Government National Mortgage Association

MTN  Medium Term Note

OTC  Over The Counter

REMIC  Real Estate Mortgage Investment Conduit

TBA  (To Be Announced) Security is purchased on a forward commitment basis with an approximate principal amount (generally +/- 1.0%) and no definite maturity date. The actual principal amount and maturity date will be determined upon settlement when the specific mortgage pools are assigned.

Futures contracts

Number of
contracts		   Buy contracts   Expiration
date		   Cost   Current
value		   Unrealized
appreciation		  
  672     90 Day Euro Dollar Futures   June 2008   $ 159,371,487     $ 163,816,800     $ 4,445,313    

 

See accompanying notes to financial statements.
21



UBS PACE Select Advisors Trust

UBS PACE Intermediate Fixed Income Investments

Performance

For the six months ended January 31, 2008, the Portfolio's Class P shares returned 7.07% (before the deduction of the maximum UBS PACE Select program fee; 6.27% after the deduction of the maximum UBS PACE Select program fee for the six month period). In comparison, the Lehman Brothers Intermediate Government/Credit Index (the "benchmark") returned 7.10%, and the median return for the Lipper Short-Intermediate Investment Grade Debt Funds category was 4.63%. (Returns for all share classes over various time periods are shown in the "Performance at a Glance" table on page 24. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.)

Market review

During the six-month reporting period, fears of a potential recession spread due to weakening consumer spending and a slowing housing market. New home sales data released in January 2008 reached lows not seen since early 1992, with a decline of 12.6% in January and anticipation of further weakening. The unemployment rate began to rise in the fourth quarter, inching from 4.7% in October to 5.0% in December. With these headwinds, the Federal Reserve Board (the "Fed") was extremely active during the period, lowering the federal funds rate on five occasions. (The federal funds rate, or "fed funds" rate, is the rate that banks charge one another for funds they borrow on an overnight basis.)

The Fed again lowered the federal funds rate in October and December 2007, bringing it to 4.25% by the end of 2007. In January 2008, the Fed cut the rate twice within nine days. On January 22nd, it reduced the fed funds rate by 0.75%, and by another 0.50% on January 30th, bringing it to 3.00%—its lowest level since May 2005.

Against this economic backdrop, many sectors posted negative returns during the period as investors moved to Treasuries in a flight to quality. Interest rates moved dramatically lower throughout the period, with 2-year, 5-year, 10-year and 30-year Treasury yields declining 2.10%, 1.88%, 1.20% and 0.60%, respectively. On an absolute basis, the Lehman Aggregate Bond Index1 performed well, posting a 6.82% return during the reporting period.

UBS PACE Select Advisors Trust – UBS PACE Intermediate Fixed Income Investments

Investment Advisor:

BlackRock Financial Management, Inc. ("BlackRock")

Portfolio Managers:

Team

Objective:

Current income, consistent with reasonable stability of principal

Investment process:

BlackRock decides to buy specific bonds based on its credit analysis and review. BlackRock strives to add value by controlling the Portfolio's duration within a narrow band relative to the Lehman Brothers Intermediate Government/Credit Index. To accomplish this, BlackRock employs an analytical process that involves evaluating macroeconomic trends, technical market factors, yield-curve exposure and market volatility. Once BlackRock establishes the investment themes on duration, yield curve exposure, convexity, sector weighting, credit quality and liquidity, the Portfolio's investments are diversified by sector, subsector and security.

1  The Lehman Aggregate Bond Index includes government securities, mortgage-backed securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market. The maturities of the bonds in the index are more than one year.


22


UBS PACE Select Advisors Trust

UBS PACE Intermediate Fixed Income Investments

Advisor's comments

Throughout the period, the Portfolio was positioned to take advantage of a steepening yield curve, which contributed to performance significantly as the yield curve continued to steepen, particularly on the front end of the curve.

We reduced the Portfolio's allocation to mortgage-backed securities throughout the period. In particular, we reduced our exposure to 15- and 30-year agency pass-throughs, a form of mortgage-backed security whose principal and interest payments are backed by the credit of the issuing government agencies. We now favor non-index products such as collateralized mortgage obligations. These are mortgage-backed securities that separate mortgage pools into different maturity classes called tranches which pay different rates of interest. Given the flights to quality that occurred in these volatile markets, our mortgage allocation detracted marginally from the Portfolio's performance.

The Portfolio continued to maintain a large overweight in commercial mortgage-backed securities. We added slightly to this position over the period. We believed it offered strong relative value versus other opportunities in sectors which offered spreads, or additional yield, above that paid on U.S. Treasury bonds and higher-risk securities.

We only held extremely high-quality, AAA rated senior commercial mortgage-backed securities. Commercial mortgage-backed securities were at historically low delinquency rates and offered what we expected to be very stable cash flows, which made them very attractive, in our opinion. Despite this, our commercial mortgage-backed securities exposure was the biggest detractor from performance as spreads in this sector widened dramatically in November 2007 and January 2008.

The Portfolio reduced its underweight to the credit sector throughout the period, seeking to take advantage of new issuance within the corporate financial sector as spreads reached extreme levels by historical standards. The Portfolio benefited from its credit sector underweight following the sector's negative returns during the period. Elsewhere, a small overweight position to asset-backed securities detracted from performance.

Special considerations

The Portfolio may be appropriate for long-term investors seeking current income and a reasonable stability of principal. Investors should be able to withstand short-term fluctuations in the fixed income markets. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.


23


UBS PACE Select Advisors Trust

UBS PACE Intermediate Fixed Income Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 01/31/08       6 months   1 year   5 years   10 years   Since
inception1 		  
Before deducting   Class A2      6.85 %     9.40 %     4.07 %     N/A       3.60 %  
maximum sales charge   Class B3      6.44 %     8.60 %     3.30 %     N/A       3.19 %  
or UBS PACE Select   Class C4      6.66 %     8.94 %     3.54 %     N/A       3.45 %  
program fee   Class Y5      7.07 %     9.70 %     4.34 %     N/A       3.89 %  
    Class P6      7.07 %     9.78 %     4.35 %     4.36 %     4.79 %  
After deducting   Class A2      2.01 %     4.52 %     3.11 %     N/A       2.93 %  
maximum sales charge   Class B3      1.44 %     3.60 %     2.94 %     N/A       3.19 %  
or UBS PACE Select   Class C4      5.91 %     8.19 %     3.54 %     N/A       3.45 %  
program fee   Class P6      6.27 %     8.15 %     2.79 %     2.81 %     3.22 %  
Lehman Brothers Intermediate Government/Credit Index         7.10 %     9.63 %     4.50 %     5.84 %     6.12 %  
Lipper Short-Intermediate Investment Grade Debt Funds median         4.63 %     6.56 %     3.47 %     4.89 %     5.19 %  

 

Average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: Class A—1-year period, 2.30%; 5-year period, 2.65%; since inception, 2.65%; Class B—1-year period, 1.36%; 5-year period, 2.47%; since inception, 2.92%; Class C—1-year period, 5.94%; 5-year period, 3.07%; since inception, 3.19%; Class Y—1-year period, 7.44%; 5-year period, 3.87%; since inception, 3.62%; Class P—1-year period, 5.83%; 5-year period, 2.33%; 10-year period, 2.72%; since inception, 3.08%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 30, 2007 prospectuses were as follows: Class A—1.08% and 0.93%; Class B—1.84% and 1.68%; Class C—1.57% and 1.43%; Class Y—0.80% and 0.68%; and Class P—0.80% and 0.68%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. Effective August 1, 2007, the portfolio and UBS Global AM have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse the portfolio so that the ordinary total operating expenses of each class through November 30, 2008 (excluding dividend expense, borrowing costs and interest expense, if any) would not exceed Class A—0.93%; Class B—1.68%; Class C—1.43%; Class Y—0.68%; and Class P—0.68%. The portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the portfolio's expenses in any of those three years to exceed these expense caps described above.

1  Since inception returns are calculated as of commencement of issuance or reissuance on August 24, 1995 for Class P shares, January 31, 2001 for Class A shares, December 14, 2000 for Class B shares, December 1, 2000 for Class C shares and February 2, 2001 for Class Y shares. Since inception returns for the Index and Lipper median are shown as of August 31, 1995, which is the month-end after the inception date of the oldest share class (Class P).

2  Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.

3  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

4  Maximum contingent deferred sales charge for Class C shares is 0.75% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

5  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

6  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual UBS PACE Select program fee of 1.5% of the value of Class P shares.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged

will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

The Lehman Brothers Intermediate Government/Credit Index is a subset of the Lehman Brothers Government/Credit Index covering all investment grade issues with maturities from one up to (but not including) 10 years. The average-weighted maturity is typically between four and five years.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for the period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.


24


UBS PACE Select Advisors Trust

UBS PACE Intermediate Fixed Income Investments

Portfolio statistics (unaudited)

Characteristics   01/31/08  
Weighted average duration     3.6 yrs.  
Weighted average maturity     4.8 yrs.  
Average coupon     5.16 %  
Net assets (mm)   $ 484.7    
Number of holdings     269    
Portfolio composition1    01/31/08  
Long-term debt securities (bonds and notes)     104.3 %  
Preferred stocks     2.5    
Investments sold short     (7.1 )  
Futures and forward foreign currency contracts     0.4    
Cash equivalents and other assets less liabilities     (0.1 )  
Total     100.0 %  
Quality diversification1    01/31/08  
US government and agency securities     39.9 %  
AAA     29.2    
AA     14.7    
A     12.8    
BBB and below/non-rated     10.2    
Futures and forward foreign currency contracts     0.4    
Investments sold short     (7.1 )  
Cash equivalents and other assets less liabilities     (0.1 )  
Total     100.0 %  
Asset allocation1    01/31/08  
Corporate notes     35.5 %  
Collateralized mortgage obligations     25.9    
US government agency mortgage pass-through certificates     13.5    
Asset-backed securities     10.8    
US government obligations     17.5    
Preferred stocks     2.5    
Non-US government obligation     1.1    
Futures and forward foreign currency contracts     0.4    
Investments sold short     (7.1 )  
Cash equivalents and other assets less liabilities     (0.1 )  
Total     100.0 %  

 

1  Weightings represent percentages of the Portfolio's net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time. Credit quality ratings shown are based on the ratings assigned to portfolio holdings by Standard & Poor's Ratings Group, an independent rating agency.


25


UBS PACE Select Advisors Trust

UBS PACE Intermediate Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
US government obligations—17.54%  
US Treasury Bonds
4.750%, due 02/15/372 		   $ 3,010,000     $ 3,206,589    
5.000%, due 05/15/37     2,350,000       2,602,808    
6.625%, due 02/15/27     2,125,000       2,748,388    
US Treasury Inflation Index
Bonds (TIPS)
2.375%, due 01/15/27		     4,277,451       4,760,670    
US Treasury Notes
2.875%, due 01/31/13		     1,295,000       1,298,238    
3.375%, due 11/30/12     35,390,000       36,274,750    
3.625%, due 12/31/12     9,225,000       9,568,779    
4.250%, due 09/30/122      14,480,000       15,405,359    
4.250%, due 11/15/17     6,095,000       6,400,701    
4.625%, due 07/31/122      2,550,000       2,751,011    
Total US government obligations
(cost—$82,958,581)		             85,017,293    
Government national mortgage
association certificate—0.22%		  
GNMA II ARM
4.750%, due 06/20/34
(cost—$1,045,934)		     1,066,684       1,072,248    
Federal home loan mortgage
corporation certificates—2.93%		  
FHLMC
5.000%, due 08/01/20		     144,207       146,138    
5.000%, due 09/01/20     630,956       639,403    
5.000%, due 10/01/20     824,583       835,624    
5.000%, due 11/01/20     669,441       678,404    
5.000%, due 12/01/20     6,516,278       6,603,522    
5.000%, due 01/01/21     881,887       893,352    
5.000%, due 03/01/21     130,227       131,884    
5.000%, due 04/01/21     2,941,195       2,978,722    
5.000%, due 05/01/21     195,567       198,055    
FHLMC ARM
4.183%, due 12/01/34		     1,094,316       1,110,391    
Total federal home loan mortgage
corporation certificates
(cost—$13,654,030)		             14,215,495    
Federal national mortgage association certificates—10.32%  
FNMA
4.000%, due 01/26/09		     1,915,000       1,940,638    
4.625%, due 05/01/13     845,000       878,782    
5.000%, due 08/01/353      6,936,901       6,911,917    
5.250%, due 08/01/12     1,460,000       1,556,124    
5.500%, due 12/01/323      6,176,511       6,273,926    
5.500%, due 07/01/343      5,927,485       6,013,456    
5.500%, due 09/01/363      5,172,017       5,250,045    
5.500%, due 03/01/373      461,213       467,448    
5.500%, due 07/01/373      7,162,287       7,259,101    
5.500%, due 07/01/37     2,598,408       2,633,531    

 

    Face
amount1 		   Value  
Federal national mortgage association certificates—(concluded)  
FNMA ARM
3.850%, due 06/01/34		   $ 1,059,777     $ 1,062,156    
4.000%, due 04/01/34     1,434,825       1,451,467    
4.651%, due 07/01/35     4,552,406       4,644,690    
5.463%, due 08/01/32     292,143       304,536    
FNMA TBA
6.000%, TBA		     3,300,000       3,385,595    
Total federal national mortgage
association certificates
(cost—$48,587,321)		             50,033,412    
Collateralized mortgage obligations—25.85%  
Banc of America Commercial
Mortgage, Inc.,
Series 2000-1,
Class A2A 7.333%,
due 11/15/314 		     2,460,000       2,539,900    
Series 2001-1, Class A2
6.503%, due 04/15/36		     1,796,640       1,862,187    
Series 2002-PB2, Class A4
6.186%, due 06/11/35		     2,145,000       2,228,835    
Bear Stearns Alternative Loan
Trust-A Trust,
Series 2004-13, Class A1
3.746%, due 11/25/345 		     861,801       841,447    
Bear Stearns ARM Trust,
Series 2004-5, Class 2A
3.991%, due 07/25/34		     2,548,318       2,554,209    
Bear Stearns Commercial
Mortgage Securities,
Series 2003-T12, Class A4
4.680%, due 08/13/39		     2,400,000       2,339,650    
Series 2007-PW17, Class A4
5.694%, due 06/11/50		     2,075,000       2,071,743    
Chase Commercial Mortgage
Securities Corp.,
Series 1999-2, Class A2
7.198%, due 01/15/32		     1,895,108       1,965,136    
Citigroup/Deutsche Bank
Commercial Mortgage Trust,
Series 2007-CD5, Class A4
5.886%, due 11/15/445 		     925,000       935,613    
Citigroup Mortgage Loan Trust, Inc.,
Series 2005-4, Class A
5.345%, due 08/25/35		     827,609       820,665    
CS First Boston Mortgage
Securities Corp.,
Series 1998-C1, Class A1B
6.480%, due 05/17/40		     1,070,519       1,073,228    
CWCapital COBALT,
Series 2007-C3, Class A4
5.820%, due 06/25/175 		     3,360,000       3,404,183    

 


26


UBS PACE Select Advisors Trust

UBS PACE Intermediate Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Collateralized mortgage obligations—(continued)  
FHLMC REMIC,
Trust 2626, Class NA
5.000%, due 06/15/23		   $ 2,761,738     $ 2,806,293    
Trust 2643, Class LC
4.500%, due 07/15/18		     1,680,000       1,682,355    
Trust 2772, Class DW
4.500%, due 06/15/17		     2,079,988       2,103,524    
Trust 2964, Class NA
5.500%, due 02/15/26		     1,421,057       1,449,822    
Trust 3154, Class PJ
5.500%, due 03/15/27		     2,319,288       2,381,057    
Trust 3159, Class TA
5.500%, due 11/15/26		     1,930,061       1,980,556    
Trust 3162, Class OA
6.000%, due 10/15/26		     2,665,894       2,742,078    
Trust 3184, Class LA
6.000%, due 03/15/28		     2,116,018       2,177,310    
Trust 3200, Class AD
5.500%, due 05/15/29		     6,557,654       6,674,508    
Trust 3303, Class PA
5.500%, due 01/15/22		     3,240,000       3,339,343    
First Horizon Alternative
Mortgage Securities,
Series 2006-FA2, Class 1A5
6.000%, due 05/25/36		     2,696,261       2,726,052    
First Union-Lehman Brothers-
Bank of America,
Series 1998-C2, Class A2
6.560%, due 11/18/35		     607,676       607,120    
First Union National Bank
Commercial Mortgage Trust,
Series 2001-C2, Class A2
6.663%, due 01/12/43		     3,180,000       3,319,952    
Series 2001-C3, Class A3
6.423%, due 08/15/33		     3,002,104       3,114,283    
FNMA REMIC,
Trust 2004-25, Class PA
5.500%, due 10/25/30		     2,073,443       2,110,669    
Trust 2004-36, Class BS
5.500%, due 11/25/30		     1,510,513       1,543,861    
Trust 2005-47, Class PA
5.500%, due 09/25/24		     1,890,001       1,914,630    
Trust 2005-57, Class PA
5.500%, due 05/25/27		     1,046,810       1,068,545    
Trust 2005-109, Class PV
6.000%, due 10/25/32		     2,059,523       2,149,065    
Trust 2006-26, Class QA
5.500%, due 06/25/26		     1,961,357       2,003,979    
Trust 2006-62, Class TA
5.500%, due 06/25/28		     721,558       739,423    
Trust 2006-63, Class QB
5.500%, due 09/25/27		     1,953,526       2,000,272    
Trust 2006-65, Class HA
5.500%, due 02/25/29		     1,903,334       1,953,597    

 

    Face
amount1 		   Value  
Collateralized mortgage obligations—(continued)  
GMAC Commercial Mortgage
Securities, Inc.,
Series 1999-C3, Class A2
7.179%, due 08/15/36		   $ 1,338,405     $ 1,378,453    
Series 2000-C3, Class A2
6.957%, due 09/15/35		     2,835,000       2,971,817    
Series 2001-C1, Class A2
6.465%, due 04/15/34		     2,511,430       2,604,431    
Series 2005-C1, Class AM
4.754%, due 05/10/43		     1,650,000       1,493,364    
Goldman Sachs Mortgage
Securities Corp. II,
Series 2005-GG4, Class A4A
4.751%, due 07/10/39		     700,000       678,225    
JPMorgan Chase Commercial
Mortgage Securities,
Series 2004-CBX, Class A4
4.529%, due 01/12/37		     2,090,000       2,056,944    
JPMorgan Mortgage Trust,
Series 2006-A2, Class 5A3
3.775%, due 11/25/335 		     3,208,742       3,212,694    
Lehman Brothers Commercial
Conduit Mortgage Trust,
Series 1998-C4, Class A1B
6.210%, due 10/15/35		     1,651,910       1,660,058    
Morgan Stanley Capital I,
Series 1999-LIFE, Class A2
7.110%, due 04/15/33		     2,239,970       2,302,504    
Series 2005-HQ6, Class A2A
4.882%, due 08/13/42		     2,600,000       2,586,586    
Series 2005-HQ6, Class A4A
4.989%, due 08/13/42		     2,980,000       2,935,119    
Series 2007-IQ16, Class A4
5.809%, due 12/12/49		     1,545,000       1,554,114    
Series 2007-T27, Class A4
5.804%, due 06/11/42		     2,900,000       2,911,575    
NationsLink Funding Corp.,
Series 1998-2, Class A2
6.476%, due 08/20/30		     1,849,846       1,851,435    
Residential Accredit Loans, Inc.,
Series 2006-QS2, Class 1A9
5.500%, due 02/25/36		     2,447,120       2,445,736    
Small Business Administration,
Series 2004-P10B, Class 1
4.754%, due 08/10/14		     1,361,854       1,371,827    
Structured ARM Loan Trust,
Series 2004-13, Class A2
3.676%, due 09/25/34		     273,696       256,016    
Structured Asset Securities Corp.,
Series 2003-2, Class C
4.294%, due 01/21/095,6 		     600,506       594,501    
Series 2003-AL1, Class A
3.357%, due 04/25/317 		     766,418       683,415    
Series 2004-6, Class 4A1 ARM
4.840%, due 06/25/34		     3,428,951       3,444,957    

 


27


UBS PACE Select Advisors Trust

UBS PACE Intermediate Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Collateralized mortgage obligations—(concluded)  
TIAA Real Estate CDO Ltd.,
Series 2001-C1A, Class A3
6.560%, due 06/19/267 		   $ 598,345     $ 600,444    
TIAA Seasoned Commercial
Mortgage Trust,
Series 2007-C4, Class A1
5.694%, due 08/15/395 		     3,862,445       3,915,886    
Washington Mutual Asset
Securities Corp.,
Series 2005-C1A, Class A2
5.150%, due 05/25/367 		     2,860,000       2,867,297    
Wells Fargo Mortgage Backed
Securities Trust,
Series 2004-H, Class A1
4.527%, due 06/25/345 		     2,495,202       2,491,947    
Series 2006-AR4, Class 2A4
5.773%, due 04/25/365 		     1,200,000       1,210,145    
Total collateralized mortgage obligations
(cost—$124,178,793)		             125,304,580    
Asset-backed securities—10.80%  
Bank One Issuance Trust,
Series 2003-A3, Class A3
4.346%, due 12/15/105 		     2,800,000       2,801,616    
Capital Auto Receivables Asset Trust,
Series 2005-1, Class A4
4.050%, due 07/15/094 		     666,822       667,700    
Series 2007-4A, Class A4
5.300%, due 05/15/14		     1,995,000       2,039,558    
Chase Credit Card Master Trust,
Series 2003-6, Class A
4.346%, due 02/15/115 		     3,800,000       3,791,250    
Chase Issuance Trust,
Series 2007-A17, Class A
5.120%, due 10/15/14		     2,900,000       3,015,572    
Chase Manhattan Auto Owner Trust,
Series 2006-A, Class A3
5.340%, due 07/15/10		     2,540,713       2,568,078    
Citibank Credit Card Issuance Trust,
Series 2003-A6, Class A6
2.900%, due 05/17/10		     3,475,000       3,469,071    
Citibank Omni Master Trust,
Series 2007-A9A, Class A9
5.962%, due 12/23/135,7 		     3,470,000       3,428,707    
Citigroup Mortgage Loan Trust, Inc.,
Series 2007-AMC3, Class A2A
3.486%, due 03/25/375 		     1,173,463       1,115,141    
DaimlerChrysler Auto Trust,
Series 2005-B, Class A3
4.040%, due 09/08/09		     556,956       557,622    
Discover Card Master Trust I,
Series 2003-2, Class A
4.366%, due 08/15/105 		     3,105,000       3,106,510    

 

    Face
amount1 		   Value  
Asset-backed securities—(concluded)  
Ford Credit Auto Owner Trust,
Series 2006-A, Class A3
5.050%, due 03/15/10		   $ 2,134,384     $ 2,150,222    
Series 2006-B, Class A2A
5.420%, due 07/15/09		     831,793       834,439    
Series 2006-B, Class A3
5.260%, due 10/15/10		     3,000,000       3,041,013    
Series 2006-C, Class A3
5.160%, due 11/15/10		     3,800,000       3,874,218    
Honda Auto Receivables
Owner Trust,
Series 2006-3, Class A3
5.120%, due 10/15/10		     3,375,000       3,418,244    
Nissan Auto Receivables
Owner Trust,
Series 2006-B, Class A3
5.160%, due 02/15/10		     2,778,520       2,800,769    
Series 2006-C, Class A4
5.450%, due 06/15/12		     3,725,000       3,843,734    
Residential Asset
Mortgage Products, Inc.,
Series 2006-RS2, Class A1
3.456%, due 03/25/265 		     75,798       75,691    
Sallie Mae Student Loan Trust,
Series 2005-8, Class A4
4.250%, due 01/25/28		     3,300,000       3,278,483    
Wachovia Auto Owner Trust,
Series 2006-A, Class A3
5.350%, due 02/22/11		     2,458,959       2,485,030    
Total asset-backed securities
(cost—$51,851,387)		             52,362,668    
Corporate notes—35.46%  
Airlines—0.10%  
Continental Airlines, Inc.
6.545%, due 02/02/19		     494,018       487,536    
Automotive—0.46%  
DaimlerChrysler N.A. Holding
4.875%, due 06/15/10		     800,000       813,598    
5.750%, due 09/08/11     1,150,000       1,196,038    
6.500%, due 11/15/13     200,000       216,391    
      2,226,027    
Banking-non-US—1.20%  
Barclays Bank Plc
7.434%, due 12/15/177,8,9 		     850,000       889,070    
Deutsche Bank AG London
5.375%, due 10/12/12		     2,450,000       2,578,919    
HBOS Treasury Services Plc
3.750%, due 09/30/087 		     500,000       502,059    
Royal Bank of Scotland Group Plc
6.990%, due 10/05/177,8,9 		     1,825,000       1,825,473    
      5,795,521    

 


28


UBS PACE Select Advisors Trust

UBS PACE Intermediate Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Corporate notes—(continued)  
Banking-US—6.00%  
BAC Capital Trust XI
6.625%, due 05/23/362 		   $ 200,000     $ 197,283    
BankBoston N.A.
6.375%, due 04/15/08		     400,000       401,698    
Bank of America Corp.
4.875%, due 01/15/13		     1,190,000       1,213,827    
5.750%, due 12/01/172      3,185,000       3,276,983    
6.000%, due 09/01/172      925,000       963,075    
7.800%, due 02/15/10     1,315,000       1,419,063    
Bank of America NA
6.100%, due 06/15/17		     925,000       957,443    
Bank One Corp.
2.625%, due 06/30/08		     250,000       249,072    
DEPFA Asset Covered Securities Bank
4.875%, due 10/28/157 		     1,300,000       1,352,978    
J.P. Morgan Chase Bank N.A.
6.000%, due 07/05/17		     1,825,000       1,894,768    
6.000%, due 10/01/172      1,450,000       1,511,703    
State Street Capital Trust
8.250%, due 03/15/118,9 		     1,725,000       1,737,937    
SunTrust Bank
4.000%, due 10/15/08		     430,000       430,468    
4.415%, due 06/15/09     500,000       504,600    
US Bank N.A.
6.500%, due 02/01/08		     860,000       860,000    
US Central Credit Union
2.750%, due 05/30/08		     785,000       783,294    
Wachovia Corp.
5.625%, due 12/15/08		     840,000       850,999    
Wells Fargo & Co.
3.120%, due 08/15/08		     1,150,000       1,144,900    
4.200%, due 01/15/10     1,545,000       1,560,013    
4.375%, due 01/31/13     1,975,000       1,974,469    
4.875%, due 01/12/11     220,000       224,004    
5.250%, due 10/23/12     5,350,000       5,561,940    
      29,070,517    
Beverages—0.48%  
Diageo Capital Plc
5.750%, due 10/23/17		     2,275,000       2,334,546    
Computers—0.25%  
IBM Corp.
5.700%, due 09/14/172 		     1,150,000       1,208,072    
Consumer products—0.19%  
Xstrata Finance Canada
5.800%, due 11/15/167 		     950,000       906,791    
Diversified financials—1.28%  
EnCana Holdings Financial Corp.
5.800%, due 05/01/14		     450,000       467,684    
General Electric Capital Corp.
6.375%, due 11/15/672,5 		     1,125,000       1,169,571    
General Electric Capital Corp. MTN
5.000%, due 04/10/12		     330,000       339,930    
5.875%, due 02/15/12     320,000       338,455    

 

    Face
amount1 		   Value  
Corporate notes—(continued)  
Diversified financials—(concluded)  
Goldman Sachs Group, Inc.
5.250%, due 10/15/132 		   $ 3,605,000     $ 3,726,989    
Nationwide Building Society
4.250%, due 02/01/107 		     180,000       182,538    
      6,225,167    
Electric utilities—0.32%  
Scottish Power Plc
4.910%, due 03/15/10		     950,000       963,123    
SP PowerAssets Ltd.
3.800%, due 10/22/087 		     600,000       600,058    
      1,563,181    
Electric-integrated—1.13%  
EDP Finance BV
5.375%, due 11/02/122,7 		     5,300,000       5,459,837    
Energy—0.88%  
Anadarko Petroleum Corp.
3.250%, due 05/01/08		     675,000       673,992    
5.950%, due 09/15/16     1,875,000       1,933,427    
Florida Power Corp.
4.800%, due 03/01/13		     340,000       348,021    
XTO Energy, Inc.
6.250%, due 08/01/17		     1,250,000       1,331,896    
      4,287,336    
Financial services—11.69%  
Bear Stearns Co., Inc.
3.250%, due 03/25/09		     550,000       537,771    
4.550%, due 06/23/10     670,000       653,513    
5.500%, due 08/15/11     750,000       748,335    
6.400%, due 10/02/17     975,000       925,565    
7.250%, due 02/01/18     925,000       924,966    
Bear Stearns Co., Inc. MTN
6.950%, due 08/10/12		     1,555,000       1,609,353    
Citigroup, Inc.
4.125%, due 02/22/10		     3,615,000       3,625,852    
4.625%, due 08/03/10     340,000       345,225    
Credit Suisse Guernsey
5.860%, due 05/15/178,9 		     2,290,000       2,101,377    
General Electric Capital Corp.
5.000%, due 11/15/11		     4,555,000       4,708,745    
6.000%, due 06/15/12     1,375,000       1,464,192    
General Electric Capital Corp. MTN
4.875%, due 10/21/10		     2,350,000       2,429,089    
5.000%, due 12/01/10     3,100,000       3,209,414    
Goldman Sachs Group, Inc.
5.300%, due 02/14/12		     825,000       854,485    
5.950%, due 01/18/18     1,050,000       1,083,623    
JPMorgan Chase & Co.
4.000%, due 02/01/08		     1,530,000       1,530,000    
5.375%, due 10/01/12     2,850,000       2,961,196    
JPMorgan Chase Capital XXV
6.800%, due 10/01/372 		     600,000       567,048    

 


29


UBS PACE Select Advisors Trust

UBS PACE Intermediate Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Corporate Notes—(continued)  
Financial services—(concluded)  
Lehman Brothers Holdings, Inc.
5.750%, due 04/25/11		   $ 895,000     $ 912,478    
5.750%, due 07/18/11     905,000       919,827    
6.200%, due 09/26/14     2,320,000       2,387,647    
6.625%, due 01/18/122      1,250,000       1,312,019    
6.691%, due 09/15/225      675,000       648,963    
Lehman Brothers
Holdings, Inc. MTN
5.170%, due 05/25/105 		     2,500,000       2,411,320    
6.750%, due 12/28/172      1,375,000       1,425,395    
MassMutual Global Funding
2.550%, due 07/15/087 		     800,000       797,403    
Morgan Stanley
4.793%, due 01/09/125 		     6,630,000       6,377,695    
5.050%, due 01/21/11     1,460,000       1,482,023    
5.300%, due 03/01/13     1,025,000       1,039,873    
6.600%, due 04/01/12     575,000       611,857    
6.750%, due 04/15/11     250,000       265,986    
Morgan Stanley MTN
5.550%, due 04/27/17		     305,000       303,854    
6.250%, due 08/28/17     2,225,000       2,310,558    
New York Life Global
Funding MTN
3.875%, due 01/15/097 		     1,000,000       1,006,030    
Principal Life Global Funding
3.625%, due 04/30/087 		     455,000       454,505    
SLM Corp.
4.880%, due 01/31/145 		     1,700,000       1,326,000    
State Street Corp.
7.650%, due 06/15/10		     345,000       373,645    
      56,646,827    
Food products—0.69%  
Kraft Foods, Inc.
6.000%, due 02/11/13		     575,000       601,124    
6.500%, due 08/11/17     2,625,000       2,740,353    
      3,341,477    
Insurance—2.43%  
Berkshire Hathaway Finance Corp.
4.125%, due 01/15/10		     1,430,000       1,452,830    
Chubb Corp.
6.375%, due 03/29/375 		     425,000       418,850    
Lincoln National Corp.
4.756%, due 04/06/095 		     4,390,000       4,343,238    
Metropolitan Life Global Funding
4.250%, due 07/30/097 		     235,000       238,240    
Pricoa Global Funding I
5.400%, due 10/18/127 		     2,175,000       2,315,048    
Progressive Corp.
6.700%, due 06/15/375 		     735,000       698,890    
Prudential Financial, Inc.
3.750%, due 05/01/08		     850,000       849,479    

 

    Face
amount1 		   Value  
Corporate notes—(continued)  
Insurance—(concluded)  
Prudential Financial, Inc. MTN
5.800%, due 06/15/12		   $ 975,000     $ 1,020,603    
Travelers Cos., Inc.
6.250%, due 03/15/375 		     450,000       427,909    
      11,765,087    
Media—1.31%  
Comcast Corp.
5.450%, due 11/15/10		     1,525,000       1,574,102    
5.900%, due 03/15/16     550,000       554,328    
Lenfest Communications, Inc.
7.625%, due 02/15/08		     745,000       745,583    
News America Holdings
8.500%, due 02/23/25		     200,000       234,744    
9.500%, due 07/15/24     225,000       283,341    
Rogers Communications
6.250%, due 06/15/13		     825,000       864,738    
Time Warner Cable, Inc.
5.850%, due 05/01/17		     1,700,000       1,701,503    
Time Warner, Inc.
7.570%, due 02/01/24		     350,000       371,722    
      6,330,061    
Medical providers—0.62%  
Aetna, Inc.
6.000%, due 06/15/16		     1,980,000       2,037,990    
WellPoint, Inc.
5.000%, due 01/15/11		     950,000       969,811    
      3,007,801    
Multi-line insurance—0.82%  
American International Group MTN
5.850%, due 01/16/18		     3,985,000       3,995,349    
Oil & gas—0.32%  
ConocoPhillips Co.
8.750%, due 05/25/10		     1,250,000       1,391,979    
EnCana Corp.
4.600%, due 08/15/09		     150,000       151,561    
      1,543,540    
Oil refining—0.08%  
Canadian Natural Resources
5.700%, due 05/15/17		     380,000       381,701    
Oil services—0.18%  
Halliburton Co.
5.500%, due 10/15/10		     850,000       891,557    
Pharmaceuticals—0.26%  
Abbott Laboratories
5.600%, due 05/15/11		     875,000       925,074    
Schering-Plough Corp.
5.550%, due 12/01/13		     340,000       358,315    
      1,283,389    

 


30


UBS PACE Select Advisors Trust

UBS PACE Intermediate Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Corporate notes—(continued)  
Real estate investment trusts—0.33%  
AvalonBay Communities, Inc. MTN
6.125%, due 11/01/12		   $ 280,000     $ 282,876    
ERP Operating LP
6.625%, due 03/15/12		     780,000       810,582    
Rouse Co.
3.625%, due 03/15/09		     225,000       213,434    
5.375%, due 11/26/13     315,000       277,044    
      1,583,936    
Retail—0.08%  
Federated Department Stores
6.625%, due 09/01/08		     130,000       131,752    
Federated Retail Holdings
5.900%, due 12/01/16		     300,000       279,635    
      411,387    
Software—0.36%  
Oracle Corp./Ozark Holdings
5.000%, due 01/15/11		     1,700,000       1,741,599    
Special purpose entity—0.62%  
BAE Systems Holdings, Inc.
5.200%, due 08/15/157 		     330,000       326,042    
Goldman Sachs Capital II
5.793%, due 06/01/128,9 		     1,565,000       1,210,948    
UnitedHealth Group
5.250%, due 03/15/11		     1,425,000       1,452,037    
      2,989,027    
Telecommunications—2.61%  
AT&T Broadband Corp.
8.375%, due 03/15/13		     1,585,000       1,792,497    
Cox Communications, Inc.
7.125%, due 10/01/12		     350,000       378,861    
7.750%, due 11/01/10     110,000       119,163    
SBC Communications, Inc.
5.875%, due 02/01/12		     95,000       100,085    
Sprint Capital Corp.
7.625%, due 01/30/11		     475,000       482,270    
TCI Communications, Inc.
7.875%, due 08/01/13		     100,000       110,598    
8.750%, due 08/01/15     50,000       58,726    
Telecom Italia Capital
5.250%, due 11/15/13		     1,665,000       1,672,516    
5.250%, due 10/01/15     205,000       200,243    
6.200%, due 07/18/112      1,750,000       1,823,832    
Telefonica Emisiones SAU
5.855%, due 02/04/13		     925,000       959,301    
5.984%, due 06/20/11     1,500,000       1,559,037    
6.421%, due 06/20/16     950,000       1,012,213    
Telefonica Europe BV
7.750%, due 09/15/10		     235,000       254,100    
Verizon New Jersey, Inc.
5.875%, due 01/17/12		     2,030,000       2,107,095    
      12,630,537    

 

    Face
amount1 		   Value  
Corporate notes—(concluded)  
Utilities—0.57%  
Dominion Resources, Inc.
5.125%, due 12/15/09		   $ 650,000     $ 663,929    
Nisource Finance Corp.
5.585%, due 11/23/095 		     950,000       926,803    
7.875%, due 11/15/10     1,075,000       1,160,909    
      2,751,641    
Wireless telecommunications—0.20%  
Vodafone Group Plc
7.750%, due 02/15/10		     920,000       981,599    
Total corporate notes
(cost—$169,521,289)		             171,841,046    
    Number of
shares		      
Preferred stocks*—2.46%  
Banking-US—0.95%  
Wachovia Corp.10      175,000       4,614,750    
Financial services—1.51%  
Citigroup, Inc., Series AA11      33,000       865,260    
Federal Home Loan
Mortgage Corp., Series Z12 		     100,600       2,701,110    
Federal National
Mortgage Association,
Series S13 		     141,025       3,725,880    
      7,292,250    
Total preferred stocks
(cost—$11,240,625)		             11,907,000    
    Face
amount1 		      
Non-US government obligations—1.15%  
Bundesrepublik Deutschland
4.250%, due 07/04/39		   EUR 550,000       791,216    
Government of Japan
1.170%, due 11/20/215 		   JPY 507,000,000       4,761,304    
Total non-US government
obligations
(cost—$5,090,473)		             5,552,520    
Short-term US government agency obligation14—1.96%  
Federal Home Loan Bank
1.350%, due 02/01/08
(cost—$9,500,000)		     9,500,000       9,500,000    

 


31


UBS PACE Select Advisors Trust

UBS PACE Intermediate Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Repurchase agreement—1.98%  
Repurchase agreement
dated 01/31/08 with
State Street Bank &
Trust Co., 1.400%,
due 02/01/08, collateralized
by $1,118,515 US Treasury
Bills, zero coupon due
05/01/08, $703,638
US Treasury Bonds,
8.125% due 08/15/19
and $7,248,293 US
Treasury Notes, 4.750%
due 12/31/08 to 01/31/12;
(value—$9,770,626);
proceeds: $9,579,373
(cost—$9,579,000)		   $ 9,579,000     $ 9,579,000    
    Number of
shares		      
Investments of cash collateral from securities loaned—7.82%  
Money market funds15—7.82%  
BlackRock Provident
Institutional TempFund
4.123%		     18,168,990       18,168,990    
DWS Money Market Series
4.201%		     2,813       2,813    
UBS Private Money Market
Fund LLC16
3.941%		     19,704,426       19,704,426    
Total money market funds and
investments of cash collateral
from securities loaned
(cost—$37,876,229)		             37,876,229    
Total investments before
investments sold short
(cost—$565,083,662)—
118.49%		             574,261,491    

 

    Face
amount1 		   Value  
Investments sold short—(7.05)%  
FNMA TBA
5.000%, TBA		   $ (6,500,000 )   $ (6,461,403 )  
5.500%, TBA     (27,400,000 )     (27,716,799 )  
Total investments sold short
(proceeds—$34,144,000)		         (34,178,202 )  
Liabilities in excess of other
assets—(11.44)%		         (55,425,516 )  
Net assets—100.00%   $ 484,657,773    

 


32


UBS PACE Select Advisors Trust

UBS PACE Intermediate Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

*  Non-income producing security.

1  In US Dollars unless otherwise indicated.

2  Security, or portion thereof, was on loan at January 31, 2008.

3  Partial amount pledged as collateral for investments sold short.

4  Partial amount delivered to broker as collateral for futures transactions.

5  Floating rate security. The interest rate shown is the current rate as of January 31, 2008.

6  Illiquid security representing 0.12% of net assets as of January 31, 2008.

7  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 5.04% of net assets as of January 31, 2008, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

8  Perpetual bond security. The maturity date reflects the next call date.

9  Variable rate security. The interest rate shown is the current rate as of January 31, 2008, and resets at the next call date.

10  Non cumulative preferred stock. The next call date is 12/15/17.

11  Non cumulative preferred stock. The next call date is 12/15/18.

12  Non cumulative preferred stock. The next call date is 12/31/12.

13  Non cumulative preferred stock. The next call date is 12/31/10.

14  Rate shown is the discount rate at date of purchase.

15  Rates shown reflect yield at January 31, 2008.

16  The table below details the Portfolio's transaction activity in an affiliated issuer during the six months ended January 31, 2008.

Security description   Value at
07/31/07		   Purchases
during the
six months
ended
01/31/08		   Sales
during the
six months
01/31/08		   Value at
01/31/08		   Net income
earned from
affiliate for
the six months
ended 01/31/08		  
UBS Private Money Market Fund LLC   $ 3,207,180     $ 37,871,157     $ 21,373,911     $ 19,704,426     $ 14,569    

 

ARM  Adjustable Rate Mortgage-The interest rate shown is the current rate as of January 31, 2008.

CDO  Collateralized Debt Obligation

EUR  Euro

FHLMC  Federal Home Loan Mortgage Corporation

FNMA  Federal National Mortgage Association

GMAC  General Motors Acceptance Corporation

GNMA  Government National Mortgage Association

JPY  Japanese Yen

MTN  Medium Term Note

REMIC  Real Estate Mortgage Investment Conduit

TBA  (To Be Announced) Security is purchased on a forward commitment basis with an approximate principal amount (generally +/- 1.0%) and no definite maturity date. The actual principal amount and maturity date will be determined upon settlement when the specific mortgage pools are assigned.

TIAA  Teachers Insurance and Annuity Association

TIPS  Treasury inflation protected securities ("TIPS") are debt securities issued by the US Treasury whose principal and/or interest payments are adjusted for inflation, unlike debt securities that make fixed principal and interest payments. The interest rate paid by the TIPS is fixed, while the principal value rises or falls based on changes in a published Consumer Price Index ("CPI"). Thus, if inflation occurs, the principal and interest payments on TIPS are adjusted accordingly to protect investors from inflationary loss. During a deflationary period, the principal and interest payments decrease, although the TIPS principal amounts will not drop below their face amounts at maturity. In exchange for the inflation protection, the TIPS generally pay lower interest rates than typical US Treasury securities. Only if inflation occurs will TIPS offer a higher real yield than a conventional Treasury bond of the same maturity.


33


UBS PACE Select Advisors Trust

UBS PACE Intermediate Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

Futures contracts


Number of
contracts		  

Currency		  

Buy contracts		  
Expiration
dates		  

Cost		  
Current
value		   Unrealized
appreciation
(depreciation)		  
  39     EUR   Euro Bobl Futures   March 2008   $ 6,324,972     $ 6,385,553     $ 60,581    
  77     EUR   Euro Bund Futures   March 2008     13,184,421       13,303,381       118,960    
  114     USD   90 Day Euro Dollar Futures   September 2008     27,552,502       27,803,175       250,673    
  140     USD   90 Day Euro Dollar Futures   December 2008     33,217,163       34,102,250       885,087    
  121     USD   US Treasury Note 2 Year Futures   March 2008     25,612,511       25,799,469       186,958    
  472     USD   US Treasury Note 10 Year Futures   March 2008     53,939,200       55,091,250       1,152,050    
                      159,830,769       162,485,078       2,654,309    
        Sale contracts       Proceeds          
  114     USD   90 Day Euro Dollar Futures   September 2009     27,523,497       27,615,075       (91,578 )  
  116     USD   US Treasury Note 5 Year Futures   March 2008     12,955,521       13,108,000       (152,479 )  
  270     USD   US Treasury Bond 30 Year Futures   March 2008     31,905,481       32,214,375       (308,894 )  
                      72,384,499       72,937,450       (552,951 )  
    $ 2,101,358    

 

Currency type abbreviations:

EUR  Euro

USD  US Dollar

Forward foreign currency contracts

    Contracts to
deliver		   In
exchange for		   Maturity
dates		   Unrealized
appreciation
(depreciation)		  
Euro     507,654     USD 744,221     4/23/08   $ (8,501 )  
United States Dollar     138,587     JPY 15,062,500     4/11/08     3,720    
    $ (4,781 )  

 

Currency type abbreviations:

JPY  Japanese Yen

USD  US Dollar

Issuer breakdown by country of origin

    Percentage of
total investments		  
United States     94.3 %  
United Kingdom     1.3    
Netherlands     1.0    
Japan     0.8    
Luxembourg     0.6    
Spain     0.6    
Germany     0.6    
Canada     0.5    
Ireland     0.2    
Singapore     0.1    
Total     100.0 %  

 

See accompanying notes to financial statements.
34


UBS PACE Select Advisors Trust

UBS PACE Strategic Fixed Income Investments

Performance

For the six months ended January 31, 2008, the Portfolio's Class P shares returned 10.14% (before the deduction of the maximum UBS PACE Select program fee; 9.31% after the deduction of the maximum UBS PACE Select program fee for the six month period). In comparison, the Lehman Brothers Government/Credit Index (the "benchmark") returned 7.15%, and the median return for the Lipper Intermediate Investment Grade Debt Funds category was 5.56%. (Returns for all share classes over various time periods are shown in the "Performance at a Glance" table on page 37. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.)

Market review

The primary focus in the fixed income markets during the period centered on problems in the subprime mortgage sector. Following a pause in a series of interest rate hikes that ended in August 2006, the Federal Reserve Board (the "Fed") had remained on hold until the beginning of the reporting period, leaving the federal funds rate at 5.25%. (The federal funds rate, or "fed funds" rate, is the rate that banks charge one another for funds they borrow on an overnight basis.) However, turmoil in the subprime market and a liquidity crunch in the asset-backed commercial paper market drove the Fed to take action.

In mid-August, the Fed lowered the discount rate—the rate the Fed uses for loans it makes directly to banks. Then, in mid-September, the Fed continued to take action by reducing the federal funds rate from 5.25% to 4.75%.

The Fed again lowered the fed funds rate in October and December 2007, bringing it to 4.25% by the end of 2007. In January 2008, the Fed cut the fed funds rate twice within nine days. On January 22nd, it reduced the fed funds rate by 0.75%, and by another 0.50% on January 30th, bringing it to 3.00%—its lowest level since May 2005. In another move designed to get banks lending again, the Fed joined central banks in Canada, the UK, the European Union and Switzerland to inject more than $90 billion of liquidity into the global financial system via money market auctions.

Advisor's comments

During the six-month reporting period the Portfolio's performance benefited from active management decisions emphasizing higher-quality assets. When the full force of the subprime situation was felt, this positioning added substantial value.

UBS PACE Select Advisors Trust – UBS PACE Strategic Fixed Income Investments

Investment Advisor:

Pacific Investment Management Company LLC ("PIMCO")

Portfolio Manager:

William C. Powers

Objective:

Total return consisting of income and capital appreciation.

Investment process:

The Portfolio invests primarily in investment grade bonds of governmental and private issuers in the United States and foreign countries. Its duration (a measure of sensitivity to interest rate changes) is normally limited to within two years (plus or minus) of the effective duration of the Portfolio's benchmark index. PIMCO seeks to invest in the areas of the bond market it considers undervalued, based on such factors as quality, sector, coupon and maturity. PIMCO decides to buy or sell specific bonds based on an analysis of their values relative to other similar bonds. PIMCO monitors the prepayment experience of the Portfolio's mortgage-backed bonds, and will also buy and sell securities to adjust the average portfolio duration, credit quality, yield curve, sector and prepayment exposure, as appropriate.


35


UBS PACE Select Advisors Trust

UBS PACE Strategic Fixed Income Investments

Advisor's comments – concluded

The Portfolio was positioned to take advantage of the steepening yield curve. This, coupled with an underweight to investment-grade corporate bonds, and an emphasis on emerging market currencies, contributed positively to the Portfolio's performance during the period.

A selloff in corporate bonds during the month of August drove corporate yields significantly higher in comparison to US Treasury securities. As a result, positioning to take advantage of the steepening yield curve in the US and UK, along with an underweight to corporate bonds, proved valuable.

The Portfolio also benefited from holdings in non-benchmark securities and direct holdings of currencies. In particular, holdings of emerging markets currencies such as the Brazilian real, the Russian ruble and the Mexican peso delivered positive results. Together, they more than offset the negative impact of the Portfolio's emphasis on prime, AAA rated, agency-backed mortgage-backed securities, which lost ground as volatility soared during the period.

Special considerations

The Portfolio may be appropriate for long-term investors seeking total return consisting of income and capital appreciation and who are able to withstand short-term fluctuations in the fixed income markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. In addition, investments in foreign bonds involve special risks. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.


36


UBS PACE Select Advisors Trust

UBS PACE Strategic Fixed Income Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 01/31/08       6 months   1 year   5 years   10 years   Since
inception1 		  
Before deducting   Class A2      10.07 %     11.45 %     5.23 %     N/A       6.43 %  
maximum sales charge   Class B3      9.56 %     10.57 %     4.43 %     N/A       5.58 %  
or UBS PACE Select   Class C4      9.71 %     10.89 %     4.72 %     N/A       6.00 %  
program fee   Class Y5      10.17 %     11.82 %     5.55 %     N/A       6.43 %  
    Class P6      10.14 %     11.72 %     5.51 %     6.13 %     6.95 %  
After deducting   Class A2      5.16 %     6.44 %     4.27 %     N/A       5.75 %  
maximum sales charge   Class B3      4.56 %     5.57 %     4.09 %     N/A       5.58 %  
or UBS PACE Select   Class C4      8.96 %     10.14 %     4.72 %     N/A       6.00 %  
program fee   Class P6      9.31 %     10.06 %     3.93 %     4.55 %     5.36 %  
Lehman Brothers Government/Credit Index         7.15 %     9.36 %     4.83 %     6.06 %     6.48 %  
Lipper Intermediate Investment Grade Debt Funds median         5.56 %     6.81 %     4.25 %     5.24 %     5.69 %  

 

Average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: Class A—1-year period, 2.84%; 5-year period, 3.72%; since inception, 5.36%; Class B—1-year period, 1.79%; 5-year period, 3.55%; since inception, 5.18%; Class C—1-year period, 6.44%; 5-year period, 4.18%; since inception, 5.63%; Class Y—1-year period, 8.01%; 5-year period, 4.99%; since inception, 6.03%; Class P—1-year period, 6.30%; 5-year period, 3.39%; 10-year period, 4.39%; since inception, 5.15%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 30, 2007 prospectuses were as follows: Class A—1.15% and 1.06%; Class B—1.93% and 1.81%; Class C—1.63% and 1.56%; Class Y—0.79% and 0.79%; and Class P—0.93% and 0.81%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. Effective August 1, 2007, the portfolio and UBS Global AM have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse the portfolio so that the ordinary total operating expenses of each class through November 30, 2008 (excluding dividend expense, borrowing costs and interest expense, if any) would not exceed Class A—1.06%; Class B—1.81%; Class C—1.56%; Class Y—0.81%; and Class P—0.81%. The portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the portfolio's expenses in any of those three years to exceed these expense caps described above.

1  Since inception returns are calculated as of commencement of issuance or reissuance on August 24, 1995 for Class P shares, December 11, 2000 for Class A shares, January 30, 2001 for Class B shares, December 1, 2000 for Class C shares and February 2, 2001 for Class Y shares. Since inception returns for the Index and Lipper median are shown as of August 31, 1995, which is the month-end after the inception date of the oldest share class (Class P).

2  Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.

3  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

4  Maximum contingent deferred sales charge for Class C shares is 0.75% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

5  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

6  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual UBS PACE Select program fee of 1.5% of the value of Class P shares.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

The Lehman Brothers Government/Credit Index is composed of all investment-grade bonds that have at least one year to maturity. The Index's total return comprises price appreciation/depreciation and income as a percentage of the original investment. The Index is rebalanced monthly by market capitalization.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for the period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.


37


UBS PACE Select Advisors Trust

UBS PACE Strategic Fixed Income Investments

Portfolio statistics (unaudited)

Characteristics   01/31/08  
Weighted average duration     5.8 yrs.  
Weighted average maturity     9.2 yrs.  
Average coupon     5.27 %  
Net assets (mm)   $ 834.7    
Number of holdings     313    
Portfolio composition1    01/31/08  
Long-term debt securities (bonds and notes)     91.1 %  
Options, futures, swaps and forward foreign currency contracts     1.9    
Investments sold short     (12.5 )  
Cash equivalents and other assets less liabilities     19.5    
Total     100.0 %  
Quality diversification1    01/31/08  
US government and agency securities     37.6 %  
AAA     16.3    
AA     11.2    
A     12.0    
BBB     4.6    
BB     2.8    
B     0.9    
Below B/non-rated     5.7    
Options, futures, swaps and forward foreign currency contracts     1.9    
Investments sold short     (12.5 )  
Cash equivalents and other assets less liabilities     19.5    
Total     100.0 %  
Asset allocation1    01/31/08  
Collateralized mortgage obligations     31.2 %  
Corporate notes     31.1    
US government agency mortgage pass-through certificates     22.0    
Non-US government obligations     2.9    
Asset-backed securities     2.5    
Municipal bonds and notes     1.4    
Stripped mortgage-backed security     0.0 2   
Options, futures, swaps and forward foreign currency contracts     1.9    
Investments sold short     (12.5 )  
Cash equivalents and other assets less liabilities     19.5    
Total     100.0 %  

 

1  Weightings represent percentages of net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time. Credit quality ratings shown are based on the ratings assigned to portfolio holdings by Standard & Poor's Ratings Group, an independent rating agency.

2  Weighting represents less than 0.05% of the Portfolio's net assets as of January 31, 2008.


38


UBS PACE Select Advisors Trust

UBS PACE Strategic Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Government national mortgage association certificates—0.05%  
GNMA
8.000%, due 06/15/17		   $ 72,548     $ 78,547    
8.000%, due 07/15/17     71,992       78,338    
8.000%, due 09/15/17     43,840       46,934    
8.000%, due 11/15/17     96,493       104,687    
GNMA II ARM
5.625%, due 07/20/25		     13,435       13,537    
6.125%, due 11/20/23     11,290       11,470    
6.375%, due 01/20/26     25,890       26,417    
6.375%, due 05/20/26     47,290       48,336    
Total government national
mortgage association
certificates
(cost—$399,615)		             408,266    
Federal home loan mortgage corporation certificates—2.48%  
FHLMC
4.500%, due 11/01/08		     2,419,729       2,415,503    
5.000%, due 09/01/35     330,056       328,743    
5.000%, due 10/01/35     173,020       172,332    
5.000%, due 11/01/35     1,497,486       1,491,526    
6.000%, due 08/01/26     12,314,386       12,661,725    
7.645%, due 05/01/25     1,475,785       1,617,130    
FHLMC TBA
5.500%, TBA		     2,000,000       2,024,376    
Total federal home loan
mortgage corporation
certificates
(cost—$20,469,362)		             20,711,335    
Federal housing administration
certificates—0.02%		  
FHA GMAC
7.430%, due 06/01/21		     111,208       111,486    
FHA Reilly
7.430%, due 10/01/20		     17,815       17,859    
Total federal housing
administration certificates
(cost—$138,687)		             129,345    
Federal national mortgage association certificates—19.45%  
FNMA
5.000%, due 09/01/352 		     834,903       831,896    
5.000%, due 02/01/362      64,193,436       63,962,236    
5.000%, due 03/01/362      14,279,861       14,228,430    
5.000%, due 01/01/382      99,990       99,593    
5.396%, due 11/01/34     12,252,990       12,276,736    
5.500%, due 06/01/332      3,276,102       3,325,527    
5.500%, due 07/01/332      9,948       10,098    
5.500%, due 01/01/352      392,595       398,265    
5.500%, due 05/01/352      240,125       243,449    

 

    Face
amount1 		   Value  
Federal national mortgage association certificates—(concluded)  
5.500%, due 06/01/352    $ 1,352,343     $ 1,371,062    
5.500%, due 08/01/352      913,495       926,141    
5.500%, due 10/01/352      432,493       438,479    
5.500%, due 11/01/352      1,209,660       1,226,403    
5.500%, due 12/01/352      3,329,239       3,375,323    
5.500%, due 01/01/362      3,122,795       3,166,019    
5.500%, due 02/01/362      3,543,887       3,592,619    
5.500%, due 03/01/362      2,718,324       2,755,511    
5.500%, due 04/01/362      782,001       792,764    
5.500%, due 05/01/362      514,769       521,811    
5.500%, due 06/01/362      1,475,046       1,495,225    
5.500%, due 08/01/362      120,823       122,495    
5.500%, due 09/01/362      1,073,116       1,088,681    
5.500%, due 11/01/362      1,963,249       1,990,107    
5.500%, due 02/01/372      1,990,054       2,017,278    
5.500%, due 03/01/372      520,134       527,165    
6.000%, due 09/01/272      18,505,505       19,043,946    
6.000%, due 10/01/362      1,281,712       1,315,452    
6.970%, due 12/01/09     3,581,430       3,770,014    
FNMA ARM
4.186%, due 11/01/34		     12,660,623       12,758,952    
4.466%, due 02/01/34     3,858,465       3,853,172    
6.188%, due 08/01/40     365,775       367,642    
6.488%, due 05/01/30     149,288       152,055    
7.091%, due 05/01/27     64,060       65,315    
7.177%, due 04/01/27     46,639       47,651    
FNMA ARM COFI
4.150%, due 11/01/26		     205,061       204,036    
Total federal national
mortgage association
certificates
(cost—$158,338,238)		             162,361,548    
Collateralized mortgage obligations—31.15%  
ARM Trust, Series 2005-5,
Class 2A1
5.132%, due 09/25/35		     686,451       692,832    
Arran Residential Mortgages
Funding PLC, Series 2006-1A,
Class A1B
4.339%, due 04/12/363,4 		     171,532       168,924    
Banc of America Funding Corp.,
Series 2005-D, Class A1
4.111%, due 05/25/353 		     6,374,027       6,234,637    
Bank of America Mortgage
Securities, Inc., Series 2002-G,
Class 1A3
7.297%, due 07/20/323 		     10,330       10,522    
Bear Stearns ARM Trust,
Series 2003-5, Class 2A1
4.535%, due 08/25/33		     1,706,233       1,707,421    
Series 2004-9, Class 22A1
4.772%, due 11/25/34		     146,985       144,231    

 


39


UBS PACE Select Advisors Trust

UBS PACE Strategic Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Collateralized mortgage obligations—(continued)  
Series 2005-5, Class A2
4.550%, due 08/25/35		   $ 7,427,886     $ 7,377,015    
Series 2005-9, Class A1
4.625%, due 10/25/35		     2,734,475       2,732,957    
Bear Stearns Alternative Loan
Trust-A Trust,
Series 2005-7, Class 22A1
5.508%, due 09/25/353 		     2,312,605       1,928,857    
Series 2006-1, Class 21A2
5.938%, due 02/25/363 		     2,459,034       2,027,550    
Bear Stearns Commerical
Mortgage Securities,
Series 2006-BBA7, Class A1
4.346%, due 03/15/193,4 		     4,198,472       4,083,788    
Bear Stearns,
Series 2003-1, Class 5A1
5.437%, due 04/25/333 		     99,129       99,857    
Series 2003-1, Class 6A1
5.033%, due 04/25/333 		     269,550       274,267    
Series 2003-3, Class 1A
7.240%, due 10/25/333 		     136,205       139,171    
Series 2004-3, Class 1A2
5.688%, due 07/25/343 		     998,394       979,668    
Series 2004-6, Class 2A1
5.073%, due 09/25/343 		     4,262,836       4,078,064    
Series 2004-7, Class 1A1
6.840%, due 10/25/343 		     1,364,209       1,374,727    
Series 2004-9, Class 2A1
5.336%, due 09/25/343 		     1,710,003       1,641,693    
Bear Stearns Structured
Products, Inc.,
Series 2007-R7, Class A1
3.485%, due 01/25/373,4 		     5,702,956       5,548,834    
Citicorp Mortgage Securities, Inc.,
Series 2002-12, Class 2A1
5.250%, due 12/25/32		     217,876       217,884    
Citigroup Mortgage Loan
Trust, Inc.,
Series 2005-6, Class A2
4.248%, due 08/25/353 		     464,796       466,406    
Series 2005-6, Class A3
4.098%, due 08/25/353 		     81,478       81,509    
Series 2005-11, Class A1A
4.900%, due 12/25/353 		     1,913,573       1,903,726    
Series 2006-AR1, Class 1A1
4.900%, due 10/25/353 		     4,063,791       4,101,835    
Countrywide Alternative Loan
Trust, Series 2003-J3, Class 2A1
6.250%, due 12/25/33		     950,663       961,527    
Countrywide Home Loans,
Series 2003-R4, Class 2A
6.500%, due 01/25/344 		     2,035,867       2,166,054    

 

    Face
amount1 		   Value  
Collateralized mortgage obligations—(continued)  
Series 2004-12, Class 11A2
6.141%, due 08/25/343 		   $ 1,019,600     $ 1,002,358    
FHLMC REMIC,
Series 1278, Class K
7.000%, due 05/15/22		     199,247       211,759    
Series 1367, Class KA
6.500%, due 09/15/22		     3,797       3,826    
Series 1502, Class PXZ
7.000%, due 04/15/23		     1,047,356       1,093,274    
Series 1503, Class PZ
7.000%, due 05/15/23		     356,940       371,714    
Series 1534, Class Z
5.000%, due 06/15/23		     374,196       379,556    
Series 1548, Class Z
7.000%, due 07/15/23		     298,017       312,614    
Series 1562, Class Z
7.000%, due 07/15/23		     442,705       464,919    
Series 1694, Class Z
6.500%, due 03/15/24		     148,228       158,048    
Series 2061, Class Z
6.500%, due 06/15/28		     873,384       908,165    
Series 2400, Class FQ
4.736%, due 01/15/323 		     350,852       352,061    
Series 2579, Class DZ
5.000%, due 03/15/34		     6,053,922       5,531,491    
Series 2764, Class LZ
4.500%, due 03/15/34		     2,375,777       2,141,085    
Series 2764, Class ZG
5.500%, due 03/15/34		     4,319,392       4,158,579    
Series 2835, Class JZ
5.000%, due 08/15/34		     3,320,442       3,181,465    
Series 2849, Class PZ
5.000%, due 07/15/33		     11,502,959       10,430,938    
Series 2921, Class PG
5.000%, due 01/15/35		     6,200,000       5,944,895    
Series 2983, Class TZ
6.000%, due 05/15/35		     5,044,085       5,233,035    
Series 3149, Class CZ
6.000%, due 05/15/36		     7,024,609       7,305,892    
Series G23, Class KZ
6.500%, due 11/25/23		     271,038       288,493    
Series T-054, Class 2A
6.500%, due 02/25/43		     1,422,472       1,471,815    
Series T-058, Class 2A
6.500%, due 09/25/43		     5,580,875       5,948,775    
Series T-061, Class 1A1
6.188%, due 07/25/443 		     2,867,097       2,892,096    
Series T-075, Class A1
3.416%, due 11/25/363 		     5,439,984       5,360,968    
First Horizon Mortgage
Pass-Through Trust,
Series 2005-AR3, Class 2A1
5.372%, due 08/25/353 		     190,506       192,919    

 


40


UBS PACE Select Advisors Trust

UBS PACE Strategic Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Collateralized mortgage obligations—(continued)  
FNMA REMIC,
Series 1998-066, Class FG
3.676%, due 12/25/283 		   $ 184,569     $ 185,064    
Series 2000-034, Class F
3.826%, due 10/25/303 		     27,184       27,346    
Series 2002-080, Class A1
6.500%, due 11/25/42		     2,741,139       2,928,141    
Series 2003-064, Class AH
6.000%, due 07/25/33		     9,209,402       9,365,605    
Series 2003-106, Class US
4.011%, due 11/25/235,6 		     333,000       273,671    
Series 2003-W8, Class 2A
7.000%, due 10/25/42		     184,249       198,634    
Series 2004-T1, Class 1A1
6.000%, due 01/25/44		     3,240,672       3,403,700    
Series 2004-W8, Class 2A
6.500%, due 06/25/44		     3,870,004       4,158,772    
Series 2005-024, Class ZE
5.000%, due 04/25/35		     1,310,809       1,208,020    
Series 2005-47, Class PA
5.500%, due 09/25/24		     5,057,030       5,122,929    
Series 2005-116, Class TZ
5.500%, due 01/25/36		     6,166,119       6,058,769    
Series 2005-120, Class ZU
5.500%, due 01/25/36		     6,726,675       6,534,358    
Series 2006-065, Class GD
6.000%, due 07/25/26		     2,800,000       2,996,689    
Trust, Series 1991-065, Class Z
6.500%, due 06/25/21		     17,731       18,970    
Trust, Series 1992-040, Class ZC
7.000%, due 07/25/22		     41,784       44,895    
Trust, Series 1992-129, Class L
6.000%, due 07/25/22		     22,559       23,795    
Trust, Series 1993-037, Class PX
7.000%, due 03/25/23		     63,215       68,110    
Trust, Series 1993-060, Class Z
7.000%, due 05/25/23		     371,657       401,962    
Trust, Series 1993-065, Class ZZ
7.000%, due 06/25/13		     390,188       409,680    
Trust, Series 1993-070, Class Z
6.900%, due 05/25/23		     56,729       61,314    
Trust, Series 1993-096, Class PZ
7.000%, due 06/25/23		     333,400       356,721    
Trust, Series 1993-160, Class ZB
6.500%, due 09/25/23		     68,188       68,899    
Trust, Series 1993-163, Class ZB
7.000%, due 09/25/23		     28,710       30,676    
Trust, Series 1994-023, Class PX
6.000%, due 08/25/23		     471,505       490,521    
Trust, Series 1998-M7, Class Z
6.390%, due 05/25/36		     1,305,678       1,401,536    
Trust, Series 1999-W4, Class A9
6.250%, due 02/25/29		     1,440,150       1,510,312    

 

    Face
amount1 		   Value  
Collateralized mortgage obligations—(continued)  
GNMA REMIC,
Trust, Series 2000-09, Class FG
4.681%, due 02/16/303 		   $ 219,016     $ 220,937    
Trust, Series 2002-031, Class FW
4.481%, due 06/16/313 		     232,301       233,005    
Trust, Series 2003-98, Class Z
6.000%, due 11/20/33		     12,832,258       13,149,207    
Trust, Series 2005-26, Class ZA
5.500%, due 01/20/35		     5,607,434       5,557,293    
GS Mortgage Securities Corp. II,
Series 2007-EOP, Class A1
4.630%, due 03/06/203,4 		     2,427,217       2,279,209    
GSR Mortgage Loan Trust,
Series 2005-AR6, Class 2A1
4.541%, due 09/25/35		     3,529,673       3,453,771    
Harborview Mortgage Loan
Trust, Series 2005-4, Class 3A1
5.147%, due 07/19/353 		     1,125,698       1,130,639    
Housing Security, Inc.,
Series 1992-8, Class B
5.991%, due 06/25/243 		     559,955       562,215    
JP Morgan Chase Commercial
Mortgage Securities Corp.,
Series 2007-CB19, Class A4
5.747%, due 02/12/493 		     3,200,000       3,222,238    
Lehman Brothers Mortgage
Trust, Series 1991-2, Class A3
8.477%, due 01/20/173 		     770,799       847,879    
Morgan Stanley Capital I,
Series 2006-HQ9, Class A4
5.731%, due 07/12/44		     1,900,000       1,919,070    
Series 2006-IQ12, Class A4
5.332%, due 12/15/43		     3,100,000       3,036,560    
Residential Funding Mortgage
Security I,
Series 2004-S2, Class A1
5.250%, due 03/25/34		     1,676,465       1,665,379    
Series 2004-S9, Class 1A23
5.500%, due 12/25/34		     2,300,000       1,903,066    
Small Business Administration,
Series 1999-20K, Class 1
7.060%, due 11/01/19		     847,302       901,228    
Series 2000-20K, Class 1
7.220%, due 11/01/20		     980,307       1,056,101    
Series 2001-P10B, Class 1
6.344%, due 08/10/11		     1,303,737       1,352,133    
Series 2002-20K, Class 1
5.080%, due 11/01/22		     3,876,629       3,977,689    
Series 2003-20I, Class 1
5.130%, due 09/01/23		     713,444       736,231    
Series 2003-20L, Class 1
4.890%, due 12/01/23		     1,952,668       1,981,289    
Series 2004-P10A, Class 1
4.504%, due 02/10/14		     6,268,314       6,178,036    

 


41


UBS PACE Select Advisors Trust

UBS PACE Strategic Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Collateralized mortgage obligations—(concluded)  
Series 2005-20H, Class 1
5.110%, due 08/01/25		   $ 2,435,827     $ 2,519,169    
Series 2007-20D, Class 1
5.320%, due 04/01/27		     6,844,093       7,131,189    
Structured ARM Loan Trust,
Series 2004-8, Class 3A
4.880%, due 07/25/34		     1,843,373       1,864,284    
Structured Asset Mortgage
Investments, Inc.,
Series 2002-AR3, Class A1
4.264%, due 09/19/323 		     647,489       628,772    
Series 2006-AR3, Class 11A1
3.586%, due 04/25/363 		     2,780,332       2,548,434    
Structured Asset Securities Corp.,
Series 2001-SB1, Class A2
3.375%, due 08/25/31		     3,335,674       2,916,960    
Wachovia Bank Commercial
Mortgage Trust,
Series 2006-C28, Class A4
5.572%, due 10/15/48		     7,100,000       7,080,587    
Washington Mutual Mortgage
Securities Corp.,
Series 2002-AR6, Class A
6.062%, due 06/25/423 		     150,378       140,059    
Series 2005-AR1, Class A1A
3.696%, due 01/25/453 		     240,014       226,926    
Series 2005-AR2, Class 2A1A
3.686%, due 01/25/453 		     297,434       280,999    
Series 2006-AR7, Class 3A
5.733%, due 07/25/463 		     3,687,694       3,523,252    
Series 2006-AR9, Class 1A
5.622%, due 08/25/463 		     2,720,812       2,613,293    
Series 2006-AR9, Class 2A
5.733%, due 08/25/463 		     2,063,109       1,970,161    
Wells Fargo Mortgage Backed
Securities Trust,
Series 2003-M, Class A1
4.705%, due 12/25/333 		     2,496,658       2,467,471    
Series 2004-CC, Class A1
4.952%, due 01/25/353 		     851,730       847,547    
Series 2006-AR2, Class 2A1
4.950%, due 03/25/36		     4,054,538       4,049,727    
Total collateralized mortgage
obligations
(cost—$258,431,423)		             260,005,790    
Asset-backed securities—2.45%  
Ace Securities Corp.,
Series 2006-HE3, A2A
3.426%, due 06/25/363 		     318,645       314,795    
Accredited Mortgage Loan Trust,
Series 2006-2, Class A1
3.416%, due 09/25/363 		     1,493,959       1,475,674    

 

    Face
amount1 		   Value  
Asset-backed securities—(continued)  
Carrington Mortgage Loan
Trust, Series 2006-FRE1,
Class A1
3.441%, due 07/25/363 		   $ 689,599     $ 685,212    
Citibank Credit Card Issuance
Trust, Series 2003-A3,
Class A3
3.100%, due 03/10/10		     2,000,000       1,999,929    
Citibank Omni-S Master Trust,
Series 2002-2, Class A
4.456%, due 04/16/133 		     2,000,000       1,979,467    
Countrywide Asset-Backed
Certificates,
Series 2006-8, Class 2A1
3.406%, due 01/25/463 		     1,779,556       1,748,163    
Series 2007-5, Class 2A1
3.476%, due 09/25/473 		     2,415,759       2,372,845    
Delta Funding Home Equity
Loan Trust, Series 1999-003,
Class A1A
5.056%, due 09/15/293 		     60,720       56,226    
First Franklin Mortgage Loan
Asset Backed Certificates,
Series 2006-FF8, Class 2A1
3.406%, due 07/25/363 		     573,682       566,482    
Fremont Home Loan Trust,
Series 2006-A, Class 2A2
3.476%, due 05/25/363 		     975,499       958,333    
Long Beach Mortgage Loan
Trust, Series 2006-3,
Class 2A1
3.436%, due 04/25/363 		     101,341       101,121    
Merrill Lynch Mortgage
Investors, Inc.,
Series 2006-AHL1,
Class A2A
3.426%, due 05/25/373 		     2,173,553       2,152,837    
Series 2006-RM2, Class A2A
3.406%, due 05/25/373 		     1,025,333       1,010,925    
Mid-State Trust Series 4, Class A
8.330%, due 04/01/30		     512,211       534,597    
Morgan Stanley ABS Capital I,
Series 2006-WMC2, Class A2A
3.416%, due 07/25/363 		     2,096,013       2,060,158    
New Century Home Equity
Loan Trust, Series 2006-2,
Class A2A
3.446%, due 08/25/363 		     610,768       605,468    
Residential Asset Securities
Corp.,
Series 2006-EMX4, Class A1
3.371%, due 06/25/363 		     449,228       443,447    
Series 2006-KS4, Class A1
3.371%, due 06/25/363 		     411,536       408,910    

 


42


UBS PACE Select Advisors Trust

UBS PACE Strategic Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Asset-backed securities—(concluded)  
Series 2006-KS5, Class A1
3.446%, due 07/25/363 		   $ 966,276     $ 959,006    
Total asset-backed securities
(cost—$20,665,275)		             20,433,595    
Stripped mortgage-backed security5,7—0.00%  
FNMA REMIC, Trust
Series 1993-040, Class D
7.000%, due 04/25/08
(cost—$4)		     1,035       5    
Corporate notes—31.12%  
Airlines—0.54%  
Northwest Airlines,
Series 2000-1, Class G
8.072%, due 04/01/21		     4,362,886       4,493,276    
United Air Lines, Inc.
10.360%, due 11/27/125,8,9 		     233,629       2,324    
      4,495,600    
Automobiles—0.41%  
DaimlerChrysler N.A. Holding
5.541%, due 03/13/093 		     2,900,000       2,880,976    
6.500%, due 11/15/13     500,000       540,977    
      3,421,953    
Banking-non-US—7.48%  
ASIF II
1.200%, due 03/20/08		   JPY 992,000,000       9,326,461    
Barclays Bank PLC
5.450%, due 09/12/1210 		     4,400,000       4,603,592    
BNP Paribas
5.186%, due 06/29/154,11,12 		     3,100,000       2,814,936    
Credit Agricole
5.103%, due 05/28/103,4 		     6,800,000       6,803,386    
6.637%, due 05/31/174,11,12      900,000       818,528    
Deutsche Bank AG London
6.000%, due 09/01/17		     10,800,000       11,482,107    
HBOS PLC
6.657%, due 05/21/374,11,12 		     2,400,000       1,957,015    
HSBC Holdings PLC
6.500%, due 05/02/36		     2,300,000       2,261,744    
6.500%, due 09/15/37     5,900,000       5,778,059    
Resona Bank Ltd.
5.850%, due 04/15/164,11,12 		     2,900,000       2,680,018    
Royal Bank of Scotland
Group PLC
7.640%, due 09/29/1711,12 		     5,500,000       5,633,144    
Santander Perpetual
6.671%, due 10/24/174,10,11,12 		     6,700,000       6,788,212    
VTB Capital (Vneshtorgbank)
5.511%, due 08/01/083,4 		     1,500,000       1,492,500    
      62,439,702    

 

    Face
amount1 		   Value  
Corporate notes—(continued)  
Banking-US—2.11%  
American Express,
Federal Savings Bank
4.339%, due 06/12/093 		   $ 2,000,000     $ 1,986,804    
Bank of America Corp.
5.750%, due 12/01/17		     6,400,000       6,584,832    
Bank of America N.A.
5.300%, due 03/15/17		     3,500,000       3,483,119    
HSBC Bank USA
6.000%, due 08/09/17		     4,900,000       5,103,056    
JP Morgan Chase Bank N.A.
6.000%, due 10/01/17		     400,000       417,022    
      17,574,833    
Biotechnology—0.28%  
Amgen, Inc.
5.133%, due 11/28/083,4 		     2,300,000       2,299,218    
Diversified financials—9.27%  
American Express Co.
6.150%, due 08/28/17		     7,100,000       7,330,374    
Chrysler Financial Term Loan
9.000%, due 08/03/12		     9,186,750       8,336,976    
CIT Group, Inc.
5.000%, due 11/24/0810 		     4,900,000       4,861,942    
5.256%, due 06/08/093      3,300,000       3,039,557    
General Electric Capital Corp.
4.939%, due 08/15/113 		     300,000       293,198    
5.500%, due 09/15/673,4    EUR 5,000,000       7,024,297    
5.875%, due 01/14/3810      5,400,000       5,277,074    
Goldman Sachs Group, Inc.
4.974%, due 12/22/083 		     1,500,000       1,493,007    
5.250%, due 10/15/1310      400,000       413,536    
5.625%, due 01/15/17     1,800,000       1,788,295    
6.250%, due 09/01/1710      14,400,000       15,268,752    
Hutchison Whampoa
International Ltd.
5.450%, due 11/24/10		     1,200,000       1,258,513    
JP Morgan Chase & Co.
6.000%, due 01/15/18		     6,400,000       6,641,933    
Lehman Brothers Holdings, Inc.
3.335%, due 11/24/083 		     1,900,000       1,873,136    
3.938%, due 01/23/093      1,900,000       1,871,517    
Lehman Brothers Holdings,
Inc. MTN
5.625%, due 01/24/13		     4,500,000       4,558,135    
Merrill Lynch & Co.
6.050%, due 08/15/12		     1,500,000       1,560,913    
Mizuho JGB Investment
9.870%, due 06/30/084,11,12 		     200,000       202,481    
Mizuho Preferred Capital
8.790%, due 06/30/084,11,12 		     1,200,000       1,214,716    
Sumitomo Mitsui Banking
5.625%, due 10/15/154,11,12 		     2,300,000       2,174,850    

 


43


UBS PACE Select Advisors Trust

UBS PACE Strategic Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Corporate notes—(continued)  
Diversified financials—(concluded)  
Tokai Preferred Capital Co. LLC
9.980%, due 06/30/084,11,12 		   $ 900,000     $ 914,266    
      77,397,468    
Diversified manufacturing—0.74%  
General Electric Co.
5.250%, due 12/06/17		     6,100,000       6,153,704    
Electric utilities—0.21%  
PSE&G Power LLC
5.000%, due 04/01/14		     1,800,000       1,759,275    
Electric-integrated—0.25%  
Enel Finance International
6.250%, due 09/15/174 		     2,000,000       2,067,532    
Finance-noncaptive diversified—0.44%  
Ford Motor Credit Co. LLC
7.250%, due 10/25/11		     3,200,000       2,841,120    
Ford Motor Credit Corp.,
Term B Loan
8.700%, due 11/29/133 		     992,500       865,956    
      3,707,076    
Financial services—2.63%  
Bear Stearns Co., Inc.
3.474%, due 01/31/113 		     900,000       813,914    
6.400%, due 10/02/17     3,800,000       3,607,329    
6.950%, due 08/10/12     1,700,000       1,759,422    
Citigroup, Inc.
4.995%, due 05/18/113 		     700,000       680,943    
5.125%, due 12/12/18   GBP 2,390,000       4,233,770    
General Motors Acceptance
Corp. LLC
6.119%, due 05/15/093 		     1,000,000       933,587    
7.250%, due 03/02/11     2,000,000       1,806,938    
Morgan Stanley
4.925%, due 05/07/093 		     1,700,000       1,676,273    
5.006%, due 02/09/093      2,000,000       1,983,748    
Residential Capital LLC
7.615%, due 02/22/083 		     600,000       408,000    
SLM Corp.
5.191%, due 03/15/113 		     2,600,000       2,327,400    
Bridge Loan
6.000%, due 06/30/085 		     1,700,000       1,695,203    
      21,926,527    
Forest products—0.19%  
Koch Forest Products, Inc.
6.580%, due 12/20/123 		     131,667       121,874    
6.831%, due 12/20/123      166,667       154,271    
6.896%, due 12/20/123      1,416,666       1,311,302    
      1,587,447    

 

    Face
amount1 		   Value  
Corporate notes—(continued)  
Insurance—1.11%  
Metropolitan Life Global
Funding I
4.945%, due 05/17/103,4 		   $ 500,000     $ 496,598    
Progressive Corp.
6.700%, due 06/15/373 		     2,800,000       2,662,436    
Prudential Financial, Inc. MTN
6.000%, due 12/01/17		     6,000,000       6,142,458    
      9,301,492    
Media—0.97%  
CSC Holdings, Inc.
7.250%, due 07/15/08		     3,000,000       3,000,000    
Echostar DBS Corp.
5.750%, due 10/01/08		     300,000       300,000    
7.000%, due 10/01/13     400,000       401,000    
Time Warner, Inc.
5.500%, due 11/15/11		     3,000,000       3,029,535    
Viacom, Inc.
5.341%, due 06/16/093 		     1,400,000       1,389,496    
      8,120,031    
Oil refining—0.49%  
Enterprise Products
Operating L.P. Series B
4.625%, due 10/15/09		     1,000,000       1,011,878    
Tesoro Corp.
6.250%, due 11/01/12		     1,000,000       995,000    
6.500%, due 06/01/17     800,000       780,000    
Valero Energy Corp.
6.625%, due 06/15/37		     1,300,000       1,284,119    
      4,070,997    
Oil services—1.61%  
Chesapeake Energy Corp.
2.500%, due 05/15/37		     2,700,000       2,926,125    
CITIC Resources Finance
6.750%, due 05/15/144,10 		     1,100,000       1,020,250    
El Paso Corp.
7.000%, due 06/15/17		     3,500,000       3,550,869    
Gaz Capital (Gazprom)
7.288%, due 08/16/374 		     2,600,000       2,557,880    
Kinder Morgan Term B Loan
6.330%, due 05/24/143 		     868,227       860,630    
NGPL PipeCo LLC
7.119%, due 12/15/174 		     2,200,000       2,270,937    
Pemex Project Funding
Master Trust
5.724%, due 12/03/123,4 		     300,000       291,450    
      13,478,141    
Paper & packaging—0.24%  
Georgia-Pacific LLC
7.125%, due 01/15/174 		     2,100,000       2,000,250    

 


44


UBS PACE Select Advisors Trust

UBS PACE Strategic Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Corporate notes—(concluded)  
Pharmaceuticals—0.29%  
Astrazeneca PLC
5.900%, due 09/15/17		   $ 2,300,000     $ 2,435,417    
Publishing—0.12%  
Idearc, Inc. Term Loan B
6.830%, due 11/09/143 		     1,091,750       971,658    
Retail—0.36%  
CVS Caremark Corp.
5.921%, due 06/01/103 		     1,700,000       1,660,725    
Target Corp.
6.000%, due 01/15/18		     1,300,000       1,353,282    
      3,014,007    
Road & rail—0.16%  
Burlington Northern
Santa Fe Corp.
6.150%, due 05/01/3710 		     1,400,000       1,350,231    
Telecommunication services—1.03%  
Embarq Corp.
6.738%, due 06/01/13		     1,300,000       1,333,687    
Telefonica Emisones SAU
5.226%, due 06/19/093 		     2,800,000       2,774,257    
Verizon Communications
5.550%, due 02/15/16		     3,400,000       3,469,180    
Verizon North, Inc.
5.634%, due 01/01/215,13 		     1,000,000       1,020,020    
      8,597,144    
Tobacco—0.19%  
Reynolds American, Inc.
7.250%, due 06/15/3710 		     1,600,000       1,609,123    
Total corporate notes
(cost—$259,027,875)		             259,778,826    
Non-US government obligations—2.95%  
Federal Republic of Brazil
10.250%, due 01/10/28		   BRL 18,000,000       9,593,519    
Mexican Fixed Rate Bonds,
Series M
8.000%, due 12/23/10		   MXN 101,740,000       9,535,195    
Republic of Italy
3.800%, due 03/27/08		   JPY 484,000,000       4,569,266    
Russian Federation
7.500%, due 03/31/303 		     74,250       85,335    
United Mexican States
6.750%, due 09/27/34		     196,000       212,464    
8.000%, due 09/24/22     500,000       617,000    
Total non-US government
obligations
(cost—$25,956,898)		             24,612,779    

 

    Face
amount1 		   Value  
Municipal bonds and notes—1.41%  
Tobacco—0.58%  
Buckeye Tobacco Settlement
Financing Authority (Asset
Backed Series Turbo),
Series A-2
5.875%, due 06/01/47		   $ 500,000     $ 483,340    
Tobacco Settlement Funding
Corp., Louisiana, Series 2001-B
5.875%, due 05/15/39		     1,075,000       1,050,221    
Tobacco Settlement Funding
Corp., Rhode Island, Series A
6.250%, due 06/01/42		     200,000       200,628    
Tobacco Settlement Revenue
Management Authority,
South Carolina Tobacco
Settlement Revenue,
Series A, 7.666%, due 05/15/16		     47,363       47,444    
Series B, 6.375%, due 05/15/30     3,030,000       3,078,389    
      4,860,022    
Utilities—0.83%  
New York City Municipal
Finance Authority Water &
Sewer Systems Revenue,
Series D
4.750%, due 06/15/38		     3,200,000       3,219,584    
New York City Municipal Water
Finance Authority Water &
Sewer Revenue Fiscal 2008
Series A
5.000%, due 06/15/38		     800,000       829,624    
Tennessee Valley Authority
5.375%, due 04/01/56		     2,700,000       2,898,093    
      6,947,301    
Total municipal bonds and notes
(cost—$11,881,987)		             11,807,323    
Certificates of deposit—2.88%  
Banking-non-US—2.88%  
Lloyds TSB Bank PLC
3.070%, due 02/01/08
(cost—$24,000,000)		     24,000,000       24,000,000    
Commercial paper14—3.71%  
Banking-US—3.71%  
CBA (Delaware) Finance, Inc.
3.000%, due 02/25/08		     7,000,000       6,986,000    
Rabobank USA Financial Corp.
3.010%, due 02/01/08		     24,000,000       24,000,000    
Total commercial paper
(cost—$30,986,000)		             30,986,000    

 


45


UBS PACE Select Advisors Trust

UBS PACE Strategic Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Short-term corporate obligations—0.06%  
Hotels/gaming—0.06%  
MGM Mirage, Inc.
6.750%, due 02/01/08
(cost—$500,000)		   $ 500,000     $ 500,000    
Repurchase agreement—0.00%  
Repurchase agreement dated
01/31/08 with State Street
Bank & Trust Co.,
1.400%, due 02/01/08,
collateralized by $15,000
US Treasury Bills, zero
coupon due 05/01/08;
(value—$14,918); proceeds:
$14,001 (cost—$14,000)		     14,000       14,000    
    Notional
amount1 		      
Options*—0.72%  
Call options purchased5—0.71%  
3 Month LIBOR Interest Rate Swap,
strike @ 3.750%,
expires 05/15/0915 		     230,200,000       3,162,948    
strike @ 4.120%,
expires 03/16/0916 		   EUR 155,000,000       1,126,844    
strike @ 5.300%,
expires 03/14/0817 		   GBP 90,000,000       1,446,406    
Japanese Yen Options,
strike @ 104.00,
expires 03/17/10		     2,700,000       162,691    
      5,898,889    
    Number of
contracts		      
Put options purchased—0.01%  
90 Day Euro Dollar Futures,
strike @ 91.75,
expires 03/17/08		     240       1,500    
strike @ 93.00,
expires 03/17/08		     865       5,406    
Euro Dollar Options,
strike @ 92.00,
expires 03/17/08		     660       4,125    
strike @ 93.25,
expires 03/17/08		     1,650       10,313    
    Notional
amount1 		      
Japanese Yen Options,
strike @ 104.00,
expires 03/17/105 		     2,700,000       105,192    
      126,536    
Total options (cost—$2,822,614)             6,025,425    

 

    Number of
shares		   Value  
Investments of cash collateral from securities loaned—2.66%  
Money market funds18—2.66%  
DWS Money Market Series
4.201%		     4,000,006     $ 4,000,006    
UBS Private Money Market
Fund LLC19
3.941%		     18,181,033       18,181,033    
Total money market funds and
investments of cash collateral
from securities loaned
(cost—$22,181,039)		             22,181,039    
Total investments before
investments sold short
(cost—$835,813,017)—
101.11%		             843,955,276    
    Face
amount1 		      
Investments sold short—(12.48)%  
FNMA TBA
5.000%, TBA		   $ (76,000,000 )     (75,667,500 )  
  5.500 %, TBA     (27,100,000 )     (27,455,687 )  
  6.000 %, TBA     (1,000,000 )     (1,025,938 )  
Total investments sold short
(proceeds—$103,788,078)—
(12.48%)		             (104,149,125 )  
Other assets in excess of
liabilities—11.37%		             94,899,116    
Net assets—100.00%           $ 834,705,267    

 


46


UBS PACE Select Advisors Trust

UBS PACE Strategic Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

*  Non-income producing security.

1  In US Dollars unless otherwise indicated.

2  Entire amount pledged as collateral for investments sold short.

3  Floating rate security. The interest rate shown is the current rate as of January 31, 2008.

4  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 7.44% of net assets as of January 31, 2008, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

5  Illiquid securities representing 1.54% of net assets as of January 31, 2008.

6  Inverse variable rate security. The interest rate shown is the current rate as of January 31, 2008.

7  Interest Only Security. This security entitles the holder to receive interest payments from an underlying pool of mortgages. The risk associated with this security is related to the speed of the principal paydowns. High prepayments would result in a smaller amount of interest being received and cause the yield to decrease. Low prepayments would result in a greater amount of interest being received and cause the yield to increase.

8  Bond interest in default.

9  Security is being fair valued by a valuation committee under the direction of the board of trustees.

10  Security, or portion thereof, was on loan at January 31, 2008.

11  Perpetual bond security. The maturity date reflects the next call date.

12  Variable rate security. The interest rate shown is the current rate as of January 31, 2008, and resets at the next call date.

13  Security exempt from registration under Rule 144A of the Securities Act of 1933. This security, which represents 0.12% of net assets as of January 31, 2008, is considered illiquid and restricted (see table below for more information).

Illiquid and restricted security   Acquisition
date		   Acquisition
cost		   Acquisition cost
as a percentage
of net assets		   Value at
01/31/08		   Value as a
percentage
of net assets		  
Verizon North, Inc. 5.634%, 01/01/21     04/25/03     $ 1,000,000       0.12 %   $ 1,020,020       0.12 %  

 

14  Rates shown are the discount rates at date of purchase.

15  3 Month LIBOR (USD on London Interbank Offered Rate) at January 31, 2008 was 3.112%.

16  3 Month LIBOR (EUR on London Interbank Offered Rate) at January 31, 2008 was 4.378%.

17  3 Month LIBOR (GBP on London Interbank Offered Rate) at January 31, 2008 was 5.580%.

18  Rates shown reflect yield at January 31, 2008.

19  The table below details the Portfolios's transaction activity in an affiliated issuer for the six months ended January 31, 2008.

Security description   Value at
07/31/07		   Purchases
during the
six months
ended
01/31/08		   Sales
during the
six months
ended
01/31/08		   Value at
01/31/08		   Net income
earned from
affiliate for
the six months
ended 01/31/08		  
UBS Private Money Market Fund LLC   $ 4,995,563     $ 62,301,243     $ 49,115,773     $ 18,181,033     $ 8,018    

 

ABS  Asset-backed security

ARM  Adjustable Rate Mortgage-The interest rate shown is the current rate as of January 31, 2008.

BRL  Brazilian Real

COFI  Cost of Funds Index

EUR  Euro

FHA  Federal Housing Administration

FHLMC  Federal Home Loan Mortgage Corporation

FNMA  Federal National Mortgage Association

GBP  Great Britain Pound

GMAC  General Motors Acceptance Corporation

GNMA  Government National Mortgage Association

JPY  Japanese Yen

MTN  Medium Term Note

MXN  Mexican Peso

REMIC  Real Estate Mortgage Investment Conduit

TBA  (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount (generally +/- 1.0%) and no definite maturity date. The actual principal amount and maturity date will be determined upon settlement when the specific mortgage pools are assigned.


47


UBS PACE Select Advisors Trust

UBS PACE Strategic Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

Written options

Number of
contracts
(000)		   Currency   Call options written   Expiration
dates		   Premiums
received		   Current
value		   Unrealized
appreciation
(depreciation)		  
  34,000     EUR   3 Month LIBOR16 Interest Rate Swap, strike @ 4.25%5    03/16/09   $ 331,356     $ 787,535     $ (456,179 )  
  23,000     GBP   3 Month LIBOR17 Interest Rate Swap, strike @ 4.85%5    03/14/08     349,029       227,734       121,295    
  18,400     USD   3 Month LIBOR15 Interest Rate Swap, strike @ 5.30%5    05/15/09     1,053,400       1,779,832       (726,432 )  
  1,000     USD   Japanese Yen Options, strike @ 104.005    03/17/10     52,625       60,256       (7,631 )  
          1,786,410       2,855,357       (1,068,947 )  
        Put options written                  
  17,800     USD   3 Month LIBOR15 Interest Rate Swap, strike @ 5.100%5    03/16/09     140,620       123,710       16,910    
  18,400     USD   3 Month LIBOR15 Interest Rate Swap, strike @ 5.300%5    05/15/09     1,053,400       846,400       207,000    
  1,000     USD   Japanese Yen Options, strike @ 104.005    03/10/10     52,625       38,960       13,665    
  0 20    USD   US Treasury Note 10 Year Futures, strike @ 107.00   02/22/08     55,356       2,797       52,559    
          1,302,001       1,011,867       290,134    
                                    $ (778,813 )  

 

20 Amount represents less than 500 contracts.

Futures contracts

Number of
contracts		   Currency   Buy contracts   Expiration
dates		   Cost   Current
value		   Unrealized
appreciation
(depreciation)		  
  273     EUR   90 Day Euribor Futures   March 2008   $ 96,640,057     $ 96,725,950     $ 85,893    
  273     EUR   90 Day Euribor Futures   June 2008     96,705,690       97,074,576       368,886    
  184     EUR   90 Day Euribor Futures   December 2008     65,127,879       65,655,713       527,834    
  10     GBP   90 Day Sterling Futures   June 2008     2,340,871       2,359,260       18,389    
  3,101     USD   US Treasury Note 10 Year Futures   March 2008     351,411,266       361,944,844       10,533,578    
                      612,225,763       623,760,343       11,534,580    
        Sale contracts       Proceeds          
  179     EUR   Euro Bund 10 Year Futures   March 2008     30,584,573       30,926,041       (341,468 )  
  665     EUR   Euro Schatz 2 Year Futures   March 2008     102,387,688       102,900,421       (512,733 )  
  18     JPY   Japan Bond 10 Year Futures   March 2008     23,038,992       23,320,017       (281,025 )  
  238     USD   US Treasury Bond 30 Year Futures   March 2008     27,914,500       28,396,375       (481,875 )  
  629     USD   US Treasury Note 5 Year Futures   March 2008     68,886,156       71,077,000       (2,190,844 )  
                      252,811,909       256,619,854       (3,807,945 )  
    $ 7,726,635    

 


48


UBS PACE Select Advisors Trust

UBS PACE Strategic Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

Forward foreign currency contracts

    Contracts to
deliver		   In
exchange for		   Maturity
dates		   Unrealized
appreciation
(depreciation)		  
Euro     5,725,000     USD 8,496,759     02/26/08   $ (8,845 )  
Great Britain Pound     1,449,000     USD 2,867,948     03/06/08     (7,390 )  
Japanese Yen     5,000,000     USD 46,314     02/07/08     (726 )  
Japanese Yen     22,947,000     USD 214,689     02/07/08     (1,198 )  
Japanese Yen     1,516,361,000     USD 13,779,776     02/07/08     (486,259 )  
United States Dollar     206,011     CAD 207,000     03/06/08     (26 )  
United States Dollar     372,369     CAD 374,000     03/06/08     (202 )  
United States Dollar     109,440     GBP 55,091     02/04/08     85    
United States Dollar     6,200,000     KRW 5,875,244,000     08/04/08     6,624    
United States Dollar     6,200,000     MYR 20,208,900     08/04/08     28,121    
United States Dollar     6,200,000     PHP 254,820,000     08/22/08     15,796    
United States Dollar     6,200,000     RUB 152,644,000     07/10/08     (5,192 )  
United States Dollar     6,200,000     SGD 8,841,510     08/28/08     87,257    
    $ (371,955 )  

 

Currency type abbreviations:

CAD  Canadian Dollar

EUR  Euro

GBP  Great Britain Pound

JPY  Japanese Yen

KRW  South Korean Won

MYR  Malaysian Ringgit

PHP  Philippine Peso

RUB  Russian Ruble

SGD  Singapore Dollar

USD  US Dollar

Issuer breakdown by country or territory of origin

    Percentage of
total investments		  
United States     86.1 %  
United Kingdom     5.5    
Germany     1.4    
Cayman Islands     1.3    
Mexico     1.2    
Brazil     1.1    
Spain     1.1    
Luxembourg     0.7    
Japan     0.6    
Italy     0.5    
France     0.4    
Virgin Islands     0.1    
Total     100.0 %  

 

See accompanying notes to financial statements.
49



UBS PACE Select Advisors Trust

UBS PACE Municipal Fixed Income Investments

Performance

For the six months ended January 31, 2008, the Portfolio's Class P shares returned 4.48% (before the deduction of the maximum UBS PACE Select program fee; 3.69% after the deduction of the maximum UBS PACE Select program fee for the six month period). In comparison, the Lehman Brothers US Municipal 3-15 year Blend Index (the "benchmark") returned 5.24%, and the median return for the Lipper Intermediate Municipal Debt Funds category was 4.22%. (Returns for all share classes over various time periods are shown in the "Performance at a Glance" table on page 52. Please note that the returns shown do not reflect the deduction of taxes that a shareholder could pay on Portfolio distributions or the redemption of Portfolio shares.)

Market review

Investment-grade municipal bonds benefited from declining interest rates and steady coupon income, producing positive returns for the Portfolio during the reporting period. A rally in the bond market was fueled by aggressive Federal Reserve Board (the "Fed") rate cuts. Over the course of the reporting period, the Fed cut the federal funds rate on several occasions, lowering it from 5.25% to 3.0%, and pushing yields lower across the curve. (The federal funds rate, or "fed funds" rate, is the rate that banks charge one another for funds they borrow on an overnight basis.) Bond market volatility spiked to the highest level since 2003, due to growing recession fears and investor uncertainty. The rally in tax-exempt yields—the 10-year municipal yield declined by 60 basis points—did not keep pace with Treasury declines, as the 10-year Treasury yield dropped by 100 basis points. (A basis point is 1/100th of one percent.) In general, investors did not take advantage of historically attractive relative values as municipal yields often were near 100% of those offered by Treasuries.

The municipal bond market experienced a "flight to safety" as the effects of the subprime mortgage crisis spilled over to the tax-exempt market. Concerns over the monoline insurers' financial strength were at the forefront, and the risks associated with insuring securities tied to subprime mortgages heightened. The growing uncertainty and fears that insurers' credit ratings would decline led to weakened liquidity, with the strength of the underlying credit becoming a key factor to trading levels.

The pace of tax-exempt issuance slowed as the turmoil from the bond insurers increased issuers' borrowing costs. As a result, the percentage of municipal securities that were insured declined significantly versus its historical average. The pressure on municipal bond mutual funds to sell flooded the market with excess supply, while broker dealer support diminished as these firms looked to protect their balance sheets. Overall,

UBS PACE Select Advisors Trust – UBS PACE Municipal Fixed Income Investments

Investment Advisor:

Standish Mellon Asset Management Company LLC ("Standish Mellon")

Portfolio Manager:

Christine L. Todd

Objective:

High current income exempt from federal income tax

Investment process:

In deciding which securities to buy for the Portfolio, Standish Mellon seeks to identify undervalued sectors or geographical regions of the municipal market, or undervalued individual securities. To do this, Standish Mellon uses credit research and valuation analysis, and monitors the relationship of the municipal yield curve to the Treasury yield curve. Standish Mellon may also make modest duration adjustments based on economic analyses and interest rate forecasts. Standish Mellon generally sells securities if it identifies more attractive investment opportunities within its investment criteria that may improve the Portfolio's return. Standish Mellon also may sell securities with weakening credit profiles or to adjust the average duration of the Portfolio.


50


UBS PACE Select Advisors Trust

UBS PACE Municipal Fixed Income Investments

Market review – concluded

municipal credit quality was strong and growing, and rating upgrades continued to exceed downgrades. During the reporting period, the slope of the yield curve steepened, nearing historical averages as shorter maturity yields were driven lower by the accommodative Fed policy and heavy demand from retail investors.

Advisor's comments

The Portfolio delivered positive absolute returns during the period, but lagged the benchmark on a relative basis, with the relative underperformance attributable to both sector and security selection. Investors' preference for the safety of Treasuries also carried into tax-exempt bonds, where government-backed pre-refunded securities generated the strongest returns. An underweight to the pre-refunded sector detracted from relative returns. (Pre-refunded municipal bonds are generally backed by US Treasury bonds. In a typical issue, a municipality sells new bonds, using the proceeds to buy Treasury securities. It then sets those Treasury bonds aside in an escrow account that will be used to redeem the older, higher-coupon bonds either at the earliest possible date or some later date.)

During the flight to safety, income-oriented revenue bonds, which comprise much of the Portfolio's core holdings, underperformed. The incremental yield in the Portfolio, which was driven by an overweight to revenue bonds, wasn't sufficient to overcome the risk aversion in the marketplace. The revenue bonds in the less-liquid hospitals and housing sectors detracted from the Portfolio's performance, as they underperformed pre-refunded securities. Revenue sub-sectors whose credit overlapped with the corporate markets were punished for not having a pure "muni" underlying credit backing. The Portfolio was overweight to alternative minimum tax securities, industrial development, and tobacco securitization bonds. The Portfolio is also overweight to prepaid gas contract bonds. These are agreements between municipalities and gas transmission companies on the delivery and payment of natural gas; both sides of the agreement are guaranteed by major Wall Street firms. All of these overweighted positions dragged on performance.

The Portfolio had, on average, a relatively neutral weighting to insured bonds, while maintaining diversification amongst the monoline companies in line with the benchmark. The liquidity and prices of insured bonds suffered amidst the rating turmoil, leading to heavy investor emphasis on the underlying credit quality of each bond. This benefited the Portfolio, as it held insured bonds with strong underlying credits.

The Portfolio's emphasis on non-callable bonds helped mitigate some of the negative impact from sector allocations. An overweight to these structures proved beneficial in the higher volatility environment, particularly versus the benchmark. The Portfolio's state allocation had a positive impact driven by an underweight allocation to California bonds, which lagged the national market amidst heavy supply. However, an overweight to Puerto Rico general obligation bonds detracted from relative returns as valuations softened for all BBB rated credits.

The municipal yield curve slope steepened during the reporting period, fueled by heavy retail investor demand for shorter-maturity bonds, as well as easing of monetary policy by the Fed. The Portfolio maintained broad yield curve exposure across intermediate maturities, generally ranging from two to 15 years. The Portfolio benefited from deemphasizing longer duration securities that underperformed their shortest-maturity counterparts. The Portfolio's duration was kept slightly longer than the benchmark's, adding to relative results as yields declined during the period (duration is a measure of an investment's sensitivity to interest rate changes).

Special considerations

The Portfolio may be appropriate for long-term investors seeking high current income exempt from federal income taxes. Investors should be able to withstand short-term fluctuations in the fixed income markets in return for potentially higher returns over the long term. The yield and value of the Portfolio change every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the issuers in which the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.


51


UBS PACE Select Advisors Trust

UBS PACE Municipal Fixed Income Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 01/31/08       6 months   1 year   5 years   10 years   Since
inception1 		  
Before deducting   Class A2      4.35 %     5.36 %     2.89 %     N/A       3.59 %  
maximum sales charge   Class B3      3.95 %     4.61 %     2.12 %     N/A       2.92 %  
or UBS PACE Select   Class C4      4.09 %     4.83 %     2.37 %     N/A       3.38 %  
program fee   Class Y5      4.47 %     5.70 %     3.12 %     N/A       3.85 %  
    Class P6      4.48 %     5.62 %     3.12 %     3.85 %     4.51 %  
After deducting   Class A2      -0.37 %     0.62 %     1.95 %     N/A       2.91 %  
maximum sales charge   Class B3      -1.05 %     -0.39 %     1.75 %     N/A       2.92 %  
or UBS PACE Select   Class C4      3.34 %     4.08 %     2.37 %     N/A       3.38 %  
program fee   Class P6      3.69 %     4.05 %     1.58 %     2.30 %     2.95 %  
Lehman Brothers US Municipal 3-15 Year Blend Index         5.24 %     6.78 %     4.39 %     5.11 %     5.52 %  
Lehman Brothers Municipal Five-Year Index         6.20 %     8.00 %     3.72 %     4.74 %     4.93 %  
Lipper Intermediate Municipal Debt Funds median         4.22 %     5.27 %     3.51 %     4.21 %     4.60 %  

 

Average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: Class A—1-year period, -1.46%; 5-year period, 1.52%; since inception, 2.67%; Class B—1-year period, -2.65%; 5-year period, 1.32%; since inception, 2.67%; Class C—1-year period, 1.90%; 5-year period, 1.93%; since inception, 3.15%; Class Y—1-year period, 3.42%; 5-year period, 2.70%; since inception, 3.61%; Class P—1-year period, 1.88%; 5-year period, 1.15%; 10-year period, 2.17%; since inception, 2.82%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 30, 2007 prospectuses were as follows: Class A—1.02% and 0.93%; Class B—1.78% and 1.68%; Class C—1.53% and 1.43%; Class Y—0.83% and 0.68%; and Class P—0.81% and 0.68%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. Effective August 1, 2007, the portfolio and UBS Global AM have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse the portfolio so that the ordinary total operating expenses of each class through November 30, 2008 (excluding dividend expense, borrowing costs and interest expense, if any) would not exceed Class A—0.93%; Class B—1.68%; Class C—1.43%; Class Y—0.68%; and Class P—0.68%. The portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the portfolio's expenses in any of those three years to exceed these expense caps described above.

1  Since inception returns are calculated as of commencement of issuance on August 24, 1995 for Class P shares, January 23, 2001 for Class A shares, February 23, 2001 for Class B shares, December 4, 2000 for Class C shares and February 23, 2001 for Class Y shares. Since inception returns for the Index and Lipper median are shown as of August 31, 1995, which is the month-end after the inception date of the oldest share class (Class P). Effective June 1, 2007, the Portfolio's benchmark was changed from the Lehman Brothers Municipal Five-Year Index to the Lehman Brothers US Municipal 3-15 Year Blend Index to reflect the decision to extend the duration of the portfolio.

2  Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.

3  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

4  Maximum contingent deferred sales charge for Class C shares is 0.75% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

5  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

6  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual UBS PACE Select program fee of 1.5% of the value of Class P shares.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

The Lehman Brothers US Municipal 3-15 Year Blend Index is a total return performance benchmark for the tax-exempt bond market. The Index includes municipal bonds with an effective maturity between 2 and 17 years that have at least one year to maturity and are investment grade.

The Lehman Brothers Municipal Five-Year Index is a total return performance benchmark for the tax-exempt bond market. The Index is a subindex of the Lehman Brothers Municipal Bond Index and includes all issues rated Baa3/BBB- or higher with an average maturity of five years.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder could pay on Portfolio distributions or the redemption of Portfolio shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for the period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.


52


UBS PACE Select Advisors Trust

UBS PACE Municipal Fixed Income Investments

Portfolio statistics (unaudited)

Characteristics   01/31/08  
Weighted average duration     4.9 yrs.  
Weighted average maturity     6.0 yrs.  
Average coupon     5.31 %  
Net assets (mm)   $ 344.9    
Number of holdings     179    
Portfolio composition1    01/31/08  
Municipal bonds and notes     98.4 %  
Short-term municipal variable notes     0.5    
Tax-free money market fund     0.0 2   
Other assets less liabilities     1.1    
Total     100.0 %  
Top five sectors1    01/31/08  
Insured     38.6 %  
Revenue     22.9    
Pre-refunded     11.7    
General obligations     11.6    
Housing     4.9    
Total     89.7 %  
Top five states/territories1    01/31/08  
Texas     11.3 %  
Illinois     8.9    
Massachusetts     6.0    
Puerto Rico     5.8    
California     5.8    
Total     37.8 %  
Quality diversification1    01/31/08  
AAA and agency backed securities     54.7 %  
AA     21.1    
A     4.9    
BBB     11.6    
A-1+/VMIG1     0.5    
Non-rated     6.1    
Tax-free money market fund     0.0 2   
Other assets less liabilities     1.1    
Total     100.0 %  

 

1  Weightings represent percentages of the Portfolio's net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time. Credit quality ratings shown are based on the ratings assigned to portfolio holdings by Standard & Poor's Ratings Group, an independent rating agency.

2  Weighting represents less than 0.05% of the Portfolio's net assets as of January 31, 2008.


53


UBS PACE Select Advisors Trust

UBS PACE Municipal Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Municipal bonds and notes—98.37%  
Alabama—0.47%  
Montgomery Special Care
Facilities Financing Authority
Revenue Capital Appreciation
Refunding Series B-2
(Escrowed to Maturity)
(FSA Insured)
5.000%, due 11/15/101 		   $ 1,500,000     $ 1,605,180    
Alaska—2.85%  
Alaska Housing Finance Corp.
General Housing Series C
(MBIA Insured)
5.000%, due 12/01/13		     1,110,000       1,208,901    
Alaska Housing Finance Corp.
Mortgage Series A-2
5.650%, due 12/01/102 		     970,000       996,171    
Alaska International Airports
Revenue Refunding Series A
(MBIA Insured)
5.500%, due 10/01/152 		     3,500,000       3,807,090    
North Slope Boro Series A
(MBIA Insured)
5.000%, due 06/30/16		     2,000,000       2,240,240    
Northern Tobacco Securitization
Corp. Alaska Tobacco Settlement
Asset-Backed Bonds
4.750%, due 06/01/15		     630,000       638,581    
Series A, 4.625%, due 06/01/23     975,000       924,095    
      9,815,078    
Arizona—1.47%  
Arizona State Transportation Board
Excise Tax Revenue Maricopa
County Regional Area Road Fund
5.000%, due 07/01/15		     2,000,000       2,238,760    
Pima County Hospital Revenue
St. Joseph Hospital Project
(Escrowed to Maturity)
7.500%, due 01/01/09		     10,000       10,391    
Pima County Industrial
Development Authority
Single-Family Mortgage Revenue
Capital Appreciation Series B
(FNMA/GNMA Collateralized)
4.550%, due 09/01/252 		     1,050,000       1,086,319    
San Manuel Entertainment
Series 04-C
4.500%, due 12/01/163 		     1,800,000       1,746,252    
      5,081,722    
Arkansas—0.00%  
Springdale Residential Housing
Mortgage Series A
(FNMA Collateralized)
7.650%, due 09/01/11		     4,654       4,760    

 

    Face
amount		   Value  
Municipal bonds and notes—(continued)  
California—5.75%  
California Pollution Control
Financing Kaiser Steel Corp.
Project (Escrowed to Maturity)
7.250%, due 10/01/08		   $ 20,000     $ 20,534    
California State
5.000%, due 03/01/17		     2,000,000       2,177,540    
5.000%, due 08/01/19     3,000,000       3,224,400    
California Statewide Communities
Development Authority Pollution
Control Revenue Refunding
Southern California Edison
Company Series A (Mandatory
Put 04/01/13 @ 100)
(XL Capital Insured)
4.100%, due 04/01/28		     1,000,000       1,004,120    
Golden State Tobacco Securitization
Corp. Tobacco Settlement Revenue
Asset-Backed Senior Series A-1
4.500%, due 06/01/27		     6,795,000       6,218,920    
Golden State Tobacco Securitization
Corp. Tobacco Settlement Revenue
Asset-Backed Series A-3
(Pre-refunded with Agency
Securities to 06/01/13 @ 100)
7.875%, due 06/01/42		     1,000,000       1,240,230    
Golden State Tobacco Securitization
Corp. Tobacco Settlement Revenue
Enhanced Asset-Backed
Series A (AMBAC Insured)
5.000%, due 06/01/20		     1,200,000       1,219,452    
Golden State Tobacco Securitization
Corp. Tobacco Settlement Revenue
Series A-1 (Pre-refunded with
Agency Securities to
06/01/08 @100),
5.000%, due 06/01/21		     430,000       434,162    
Series 2003-A-1 (Pre-refunded
with Agency Securities to
06/01/13 @ 100),
6.750%, due 06/01/39		     2,500,000       2,960,775    
Sacramento Utility District Electric
Revenue, White Rock Project
(Escrowed to Maturity)
6.750%, due 03/01/10		     280,000       291,917    
6.800%, due 05/01/10     135,000       141,658    
Tobacco Securitization Authority
Northern California Tobacco
Settlement Revenue
Asset-Backed Bonds Series A-1
4.750%, due 06/01/23		     945,000       906,161    
      19,839,869    

 


54


UBS PACE Select Advisors Trust

UBS PACE Municipal Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Municipal bonds and notes—(continued)  
Connecticut—0.59%  
Stamford Housing Authority
Multi-Family Revenue Refunding
Fairfield Apartments Project
(Mandatory Put 12/01/08 @ 100)
4.750%, due 12/01/282 		   $ 2,000,000     $ 2,020,680    
District of Columbia—0.97%  
District of Columbia Housing
Finance Authority Certificates of
Participation (Radian Insured)
4.850%, due 06/01/08		     75,000       75,099    
Metropolitan Airport Authority
System Refunding
Series A (FGIC Insured),
5.750%, due 10/01/142 		     1,000,000       1,093,340    
Series A (MBIA Insured),
5.000%, due 10/01/122 		     1,000,000       1,073,820    
Series D (MBIA Insured),
5.250%, due 10/01/122 		     1,000,000       1,084,560    
      3,326,819    
Florida—4.75%  
Citizens Property Insurance Corp.
Refunding Senior Secured High
Risk Account Series A
(MBIA Insured)
5.000%, due 03/01/14		     2,000,000       2,184,800    
Florida Department of Children's &
Family Services Certificates of
Participation (Florida Civil
Commitment Center)
(MBIA Insured)
5.000%, due 04/01/14		     1,065,000       1,148,879    
Gainesville Utilities Systems Revenue
Series B
6.500%, due 10/01/12		     1,795,000       2,081,859    
Miami-Dade County Aviation
Revenue Refunding Miami
International Airport Series D
(MBIA Insured)
5.250%, due 10/01/142 		     1,000,000       1,066,940    
Miami-Dade County Educational
Facilities Authority Revenue
Refunding University of Miami
Series B (AMBAC Insured)
5.000%, due 04/01/13		     2,000,000       2,155,280    
Orlando & Orange County
Expressway Authority Expressway
Revenue Junior Lien (FGIC Insured)
8.250%, due 07/01/16		     2,595,000       3,480,051    
Palm Beach County School Board
Certificates of Participation
Series A (FSA Insured)
5.000%, due 08/01/12		     1,305,000       1,418,522    

 

    Face
amount		   Value  
Municipal bonds and notes—(continued)  
Florida—(concluded)  
Tampa Utilities Tax & Special
Revenue Refunding Series B
(AMBAC Insured)
5.750%, due 10/01/15		   $ 1,000,000     $ 1,149,010    
Tampa-Hillsborough County
Expressway Authority Revenue
(AMBAC Insured)
5.000%, due 07/01/14		     1,535,000       1,698,785    
      16,384,126    
Georgia—1.28%  
Fulton De Kalb Hospital Authority
Hospital Revenue Refunding
Certificates (FSA Insured)
5.250%, due 01/01/15		     2,000,000       2,230,760    
Henry County School District
Series A
6.450%, due 08/01/11		     1,065,000       1,143,320    
Main Street Natural Gas, Inc.
Gas Project Revenue Series B
5.000%, due 03/15/15		     1,000,000       1,038,530    
      4,412,610    
Guam—0.31%  
Guam Education Financing
Foundation Certificates of
Participation, Guam Public
Schools Project Series A
5.000%, due 10/01/12		     1,000,000       1,061,810    
Hawaii—0.31%  
Hawaii State Harbor Systems
Revenue Series A (FSA Insured)
5.000%, due 01/01/132 		     1,000,000       1,078,430    
Idaho—0.21%  
Idaho Housing & Finance
Association Single-Family
Mortgage
Series G-2, Class III,
5.950%, due 07/01/192 		     500,000       518,575    
Subseries D-3,
5.150%, due 07/01/132 		     200,000       201,710    
      720,285    
Illinois—8.87%  
Belleville St. Clair County
(Escrowed to Maturity)
(MGIC Insured)
7.250%, due 11/01/09		     100,000       106,146    
Chicago O'Hare International
Airport Revenue Passenger
Facility Second Lien Series A
(AMBAC Insured)
5.500%, due 01/01/102 		     1,000,000       1,046,390    

 


55


UBS PACE Select Advisors Trust

UBS PACE Municipal Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Municipal bonds and notes—(continued)  
Illinois—(continued)  
Chicago O'Hare International
Airport Revenue Refunding
General Airport Third Lien
Series B (FGIC Insured)
5.250%, due 01/01/14		   $ 1,000,000     $ 1,089,420    
Chicago School Finance Authority
Refunding Series A (FGIC Insured)
6.250%, due 06/01/09		     2,000,000       2,054,700    
Cook County Forest Preservation
District (AMBAC Insured)
5.000%, due 11/15/19		     5,180,000       5,788,443    
Illinois Development Finance
Authority Revenue
DePaul University Series C
5.500%, due 10/01/13		     1,000,000       1,087,210    
Illinois Development Finance
Authority Revenue Refunding
Community Rehabilitation
Providers Series A
5.900%, due 07/01/09		     650,000       659,458    
Illinois Development Finance
Authority Revenue School District
Program School District No. U-46
(FSA Insured)
5.150%, due 01/01/19		     2,000,000       2,264,220    
Illinois Educational Facilities
Authority Revenue Evangelical
Hospital Series A
(Escrowed to Maturity)
6.750%, due 04/15/17		     660,000       793,848    
Illinois Finance Authority Revenue
Swedish America Hospital
(AMBAC Insured)
5.000%, due 11/15/11		     1,170,000       1,253,596    
Illinois Finance Authority Student
Housing Revenue MJH Education
Assistance IV Senior Series A
5.000%, due 06/01/08		     700,000       590,674    
Illinois Health Facilities Authority
Revenue Advocate Network
(Escrowed to Maturity)
6.000%, due 11/15/10		     3,250,000       3,565,055    
Illinois Health Facilities Authority
Revenue University of Chicago
Hospital & Health (MBIA Insured)
5.000%, due 08/15/12		     2,000,000       2,159,100    
Illinois Health Facilities Authority
Revenue Unrefunded Balance
Advocate Network
6.000%, due 11/15/10		     2,740,000       2,977,366    
Illinois Municipal Electric Agency
Power Supply Refunding Series C
(FGIC Insured)
5.000%, due 02/01/16		     1,200,000       1,308,480    

 

    Face
amount		   Value  
Municipal bonds and notes—(continued)  
Illinois—(concluded)  
Regional Transportation Authority
Series A (FSA Insured)
5.750%, due 06/01/18		   $ 3,000,000     $ 3,571,740    
St. Clair County Certificates of
Participation Series A
(FSA Insured)
5.000%, due 10/01/08		     285,000       290,472    
      30,606,318    
Indiana—1.83%  
Indiana Health Facility Financing
Authority Revenue
Ascension Health Subordinated
Credit Series A
5.000%, due 04/01/10		     5,000,000       5,248,900    
Indianapolis Local Public
Improvement Bond Bank
Airport Authority Series F
(AMBAC Insured)
5.250%, due 01/01/132 		     1,000,000       1,077,450    
      6,326,350    
Iowa—2.70%  
Iowa Finance Authority Revenue
Revolving Fund
5.250%, due 02/01/14		     3,310,000       3,626,006    
Tobacco Settlement Authority
Asset-Backed Revenue Bonds
Series B (Pre-refunded with Agency
Securities to 06/01/11 @ 101)
5.600%, due 06/01/35		     5,175,000       5,700,418    
      9,326,424    
Kentucky—0.81%  
Kentucky Asset/Liability
Commission Agency Fund
Revenue Project Notes Federal
Highway Trust First Series
(MBIA Insured)
5.000%, due 09/01/15		     1,010,000       1,130,089    
Louisville & Jefferson County
Regional Airport Authority
Airport Systems Revenue
Series A (FSA Insured)
5.750%, due 07/01/132 		     1,505,000       1,654,582    
      2,784,671    
Louisiana—1.83%  
East Baton Rouge Parish Woman's
Hospital Foundation
(Escrowed to Maturity)
7.200%, due 10/01/08		     65,000       66,812    

 


56


UBS PACE Select Advisors Trust

UBS PACE Municipal Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Municipal bonds and notes—(continued)  
Louisiana—(concluded)  
Jefferson Parish Home Mortgage
Authority Single-Family Housing
Revenue Refunding Series D-1
(FNMA/GNMA Collateralized)
5.600%, due 06/01/102 		   $ 25,000     $ 25,252    
Jefferson Parish Home Mortgage
Authority Single-Family Mortgage
Revenue Series A
(GNMA/FNMA and FHA/VA/USDA
Mortgages Insured)
5.125%, due 06/01/262 		     1,285,000       1,318,821    
Louisiana Public Facilities Authority
Revenue Hurricane Recovery
Project (AMBAC Insured)
5.000%, due 06/01/15		     2,880,000       3,132,288    
New Orleans Aviation Board
Revenue New Orleans Aviation
Series B2 Refunding (FSA Insured)
5.000%, due 01/01/122 		     1,655,000       1,761,913    
      6,305,086    
Maryland—0.86%  
Maryland Community Development
Administration Department
Housing & Community
Development Series D
4.650%, due 09/01/222 		     3,000,000       2,967,630    
Massachusetts—5.98%  
Massachusetts Bay Transportation
Authority Massachusetts Sales
Tax Revenue Series B
5.250%, due 07/01/21		     6,000,000       6,911,040    
Massachusetts Health &
Educational Facilities Authority
Revenue Partners Healthcare
Systems Series G-5
5.000%, due 07/01/19		     1,000,000       1,072,920    
Massachusetts State Consolidated
Loan Series D (Pre-refunded with
US Government Securities to
12/01/14 @ 100) (FSA Insured)
5.000%, due 12/01/23		     1,250,000       1,402,150    
Massachusetts State Development
Finance Agency Solid Waste
Disposal Revenue Waste
Management Income Project
5.450%, due 06/01/142 		     2,000,000       2,109,200    
Massachusetts State Housing
Finance Agency Series D
3.900%, due 12/01/172 		     2,000,000       2,019,080    
Massachusetts State Series B
5.000%, due 11/01/14		     5,000,000       5,584,050    
5.000%, due 11/01/16
(FSA Insured)		     1,355,000       1,536,475    
      20,634,915    

 

    Face
amount		   Value  
Municipal bonds and notes—(continued)  
Michigan—2.17%  
Detroit Sewer Disposal Revenue
Second Lien Series D-2
(Mandatory Put 01/01/12 @ 100)
(MBIA Insured)
5.500%, due 07/01/324 		   $ 2,000,000     $ 2,174,160    
Detroit Sewer Disposal Revenue
Senior Lien Series A (FSA Insured)
5.250%, due 07/01/19		     2,500,000       2,835,650    
Michigan State Housing
Development Authority Series A
4.550%, due 12/01/142 		     2,395,000       2,485,435    
      7,495,245    
Minnesota—1.65%  
Minnesota State Highway &
Various Purpose
5.000%, due 08/01/16		     5,000,000       5,675,900    
Moorhead Residential Mortgage
(Escrowed to Maturity)
(FHA/VA Insured)
7.100%, due 08/01/11		     25,000       27,245    
      5,703,145    
Missouri—2.72%  
Missouri State Health & Educational
Facilities Authority Health Facilities
Revenue St. Lukes Health Systems
Series A (FSA Insured)
5.000%, due 11/15/16		     2,000,000       2,213,220    
5.000%, due 11/15/17     2,500,000       2,766,025    
Springfield Public Building Corp.
Leasehold Revenue Springfield
Branson Airport Series B
(AMBAC Insured)
5.000%, due 07/01/132 		     2,075,000       2,223,072    
St. Louis Airport Revenue
Lambert International Airport
Series A (FSA Insured)
5.000%, due 07/01/13		     2,000,000       2,173,540    
      9,375,857    
Nevada—1.39%  
Clark County Pollution Control
Revenue Refunding Series C
(Mandatory Put 03/02/09 @ 100)
3.250%, due 06/01/312,4 		     2,000,000       2,006,260    
Las Vegas Valley Water District
Refunding & Improvement
Series A
5.000%, due 02/01/175 		     1,500,000       1,676,850    
Reno Senior Lien Reno
Transportation Project
(Pre-refunded with US
Government Securities to
06/01/12 @ 100)
(AMBAC Insured)
5.125%, due 06/01/32		     1,000,000       1,099,920    
      4,783,030    

 


57


UBS PACE Select Advisors Trust

UBS PACE Municipal Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Municipal bonds and notes—(continued)  
New Jersey—3.75%  
New Jersey Economic Development
Authority Revenue School
Facilities Construction Series I
5.000%, due 09/01/14		   $ 1,000,000     $ 1,111,710    
Tobacco Settlement Financing
Corp. Asset-Backed Revenue
Bonds (Escrowed to Maturity)
5.500%, due 06/01/11		     1,000,000       1,096,920    
Tobacco Settlement Financing
Corp. Asset-Backed Revenue
Bonds (Pre-refunded with US
Government Securities to
06/01/12 @ 100)
6.000%, due 06/01/37		     1,000,000       1,135,500    
Tobacco Settlement Financing
Corp. (Pre-refunded with US
Government Securities to
06/01/08 @ 100)
4.375%, due 06/01/19		     235,000       236,774    
Tobacco Settlement Financing
Corp. (Pre-refunded with US
Government Securities to
06/01/13 @ 100)
6.250%, due 06/01/43		     2,000,000       2,347,660    
6.750%, due 06/01/39     5,500,000       6,591,695    
Tobacco Settlement Financing
Corp. Series 1-A
4.500%, due 06/01/23		     455,000       422,509    
      12,942,768    
New York—5.65%  
Nassau Health Care Corp. Health
Systems Revenue (Pre-refunded
with cash and US Government
Securities to 08/01/09 @ 102)
(FSA Insured)
6.000%, due 08/01/11		     1,000,000       1,076,410    
New York City Industrial
Development Agency Special
Facility Revenue Terminal One
Group Association Project
5.000%, due 01/01/112 		     4,000,000       4,154,760    
New York City Transitional Finance
Authority Revenue Refunding
Future Tax Secured Series A
5.500%, due 11/01/264 		     2,000,000       2,187,880    
New York State Dorm Authority
Lease Revenue, Series B
(Mandatory Put 07/01/13 @ 100)
(XL Capital Insured)
5.250%, due 07/01/324 		     1,500,000       1,620,000    

 

    Face
amount		   Value  
Municipal bonds and notes—(continued)  
New York—(concluded)  
New York State Dorm Authority
Revenue State University
Educational Facilities Series A
5.500%, due 05/15/13		   $ 1,000,000     $ 1,104,890    
New York State Dorm Authority
State Personal Income Tax
Revenue Education Series D
5.000%, due 03/15/15		     2,500,000       2,805,475    
New York State Urban Development
Corp. Correctional & Youth
Facilities Service (Pre-refunded
with US Government Securities
to 01/01/11 @ 100) Series A
5.500%, due 01/01/17		     70,000       76,096    
Port Authority of New York &
New Jersey (FGIC Insured)
5.000%, due 10/01/132 		     6,000,000       6,465,120    
      19,490,631    
Ohio—2.50%  
Buckeye Tobacco Settlement
Financing Authority Asset-Backed
Securities Turbo Series A-2
5.125%, due 06/01/24		     3,000,000       2,898,360    
Butler County Transportation
Improvement District Series A
(Pre-refunded with US
Government Securities to
04/01/08 @ 102) (FSA Insured)
6.000%, due 04/01/11		     1,145,000       1,175,251    
Cleveland Waterworks Revenue
Refunding First Mortgage
Series G (MBIA Insured)
5.500%, due 01/01/13		     2,265,000       2,407,332    
Franklin County Revenue
Refunding Trinity Health
Credit Series A
5.000%, due 06/01/11		     1,680,000       1,792,745    
Ohio Housing Finance Agency
Mortgage Revenue Residential
Series B-2 (GNMA Collateralized)
5.350%, due 09/01/182 		     340,000       343,077    
      8,616,765    
Oklahoma—0.47%  
Oklahoma Development Finance
Authority Revenue
St. John Health System
5.000%, due 02/15/16		     1,500,000       1,618,590    

 


58


UBS PACE Select Advisors Trust

UBS PACE Municipal Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Municipal bonds and notes—(continued)  
Pennsylvania—4.61%  
Allegheny County Sanitation
Authority Sewer Revenue
(Pre-refunded with US
Government Securities and a
Repurchase Agreement to
12/01/10 @ 101) (MBIA Insured)
5.750%, due 12/01/15		   $ 800,000     $ 880,968    
Chester County Hospital Authority
Revenue (Escrowed to Maturity)
7.500%, due 07/01/09		     15,000       15,575    
City of Philadelphia (CIFG Insured)
5.000%, due 08/01/17		     4,395,000       4,734,646    
Lancaster Sewer Authority
(Escrowed to Maturity)
6.000%, due 04/01/12		     40,000       42,521    
Pennsylvania Economic
Development Financing Authority
Resource Recovery Revenue
Refunding Colver Project
Series F (AMBAC Insured)
5.000%, due 12/01/122 		     2,000,000       2,102,520    
Pennsylvania Housing Finance
Agency Single-Family Mortgage
Revenue Series 97A
4.500%, due 10/01/222 		     3,000,000       2,910,450    
Pennsylvania State Higher
Educational Facilities Authority
Revenue Waynesburg Series J-4
(Mandatory Put 05/01/09 @ 100)
(PNC Bank N.A. Insured)
3.300%, due 05/01/324 		     3,000,000       3,033,060    
Philadelphia Airport Revenue
Series A (MBIA Insured)
5.000%, due 06/15/102 		     1,000,000       1,046,200    
Pittsburgh Refunding Series B
(FSA Insured)
5.000%, due 09/01/14		     1,000,000       1,114,860    
      15,880,800    
Puerto Rico—5.84%  
Puerto Rico Commonwealth
Government Development Bank
Senior Notes
Series B, 5.000%, due 12/01/14		     1,500,000       1,588,470    
Series C, 5.250%, due 01/01/152      1,000,000       1,066,130    
Puerto Rico Commonwealth
Highway & Transportation
Authority Highway Revenue
Refunding Series CC
5.000%, due 07/01/13		     1,070,000       1,143,092    
Puerto Rico Commonwealth
Highway & Transportation
Authority Transportation Revenue
(Assured Guaranty FSA)
5.500%, due 07/01/25		     2,000,000       2,263,000    

 

    Face
amount		   Value  
Municipal bonds and notes—(continued)  
Puerto Rico—(concluded)  
Puerto Rico Commonwealth
Refunding Public Improvement
Series A
5.000%, due 07/01/13		   $ 1,000,000     $ 1,057,210    
Puerto Rico Commonwealth
Refunding Series A
(Mandatory Put 07/01/12 @ 100)
5.000%, due 07/01/304 		     1,000,000       1,037,620    
Puerto Rico Public Buildings
Authority Revenue Guaranteed
Government Facilities Series N
(Commonwealth GTD)
5.500%, due 07/01/18		     2,000,000       2,149,680    
Puerto Rico Public Buildings
Authority Revenue Guaranteed
Refunding Government Facilities
Series J (Mandatory Put
07/01/12 @ 100)
(Commonwealth GTD),
5.000%, due 07/01/284 		     3,000,000       3,112,860    
Series M (Commonwealth GTD),
5.750%, due 07/01/16		     2,000,000       2,208,100    
Puerto Rico Public Finance Corp.
Refunding Commonwealth
Appropriations Series A
(Mandatory Put 02/01/12 @ 100)
(Government Development Bank
for Puerto Rico Insured)
5.750%, due 08/01/274 		     4,250,000       4,507,422    
      20,133,584    
South Carolina—0.17%  
South Carolina Housing Finance &
Development Authority Mortgage
Revenue Series A-2 (FSA Insured)
4.700%, due 07/01/202 		     565,000       573,486    
South Dakota—0.90%  
South Dakota Health & Educational
Facilities Authority Revenue
Refunding Prairie Lakes Health
Care (ACA/CBI Insured)
5.450%, due 04/01/13		     3,030,000       3,097,357    
Tennessee—4.95%  
Clarksville Natural Gas Acquisition
Corp. Gas Revenue
5.000%, due 12/15/14		     2,000,000       2,087,400    
Metropolitan Government
Nashville & Davidson County
Water Sewer Revenue Cab
Converter Refunding (FGIC/TCRs)
7.700%, due 01/01/12		     8,300,000       9,195,487    
Tennessee Energy Acquisition
Corp. Series A
5.000%, due 09/01/11		     2,500,000       2,624,325    
5.000%, due 09/01/13     3,000,000       3,166,650    
      17,073,862    

 


59


UBS PACE Select Advisors Trust

UBS PACE Municipal Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Municipal bonds and notes—(continued)  
Texas—11.30%  
Cypress-Fairbanks Independent
School District Schoolhouse
(PSF-GTD)
5.000%, due 02/15/18		   $ 2,500,000     $ 2,775,100    
Dallas-Fort Worth International
Airport Revenue Refunding &
Improvement Series A
(FGIC Insured)
5.750%, due 11/01/132 		     2,000,000       2,124,200    
Harris County Health Facilities
Development Corp. Hospital
Revenue Memorial Hospital
System Project Series A
(MBIA Insured)
6.000%, due 06/01/12		     1,000,000       1,116,140    
Harris County Hospital District
Revenue Refunding Senior Lien
Series A (MBIA Insured)
5.000%, due 02/15/18		     1,675,000       1,800,458    
Houston Texas Airport Systems
Revenue (Escrowed to Maturity)
7.600%, due 07/01/10		     140,000       149,003    
Houston Utilities Systems Revenue
Refunding Combined First Lien
Series A (FSA Insured)
5.250%, due 11/15/17		     2,500,000       2,854,500    
Katy Independent School District
School Building Series A (PSF-GTD)
5.000%, due 02/15/14		     2,000,000       2,185,060    
Keller Independent School District
Refunding (PSF-GTD)
5.000%, due 08/15/16		     1,500,000       1,663,980    
Midlothian Development Authority
Tax Increment Contract Revenue
Refunding Series A
(Radian Insured)
5.000%, due 11/15/14		     560,000       590,929    
North Texas Health Facilities
Development Corp. Hospital
Revenue United Regional Health
Care Systems (FSA Insured)
5.000%, due 09/01/21		     1,450,000       1,546,585    
5.000%, due 09/01/22     1,400,000       1,484,168    
Pasadena Independent School
District School Building (PSF-GTD)
5.000%, due 02/15/14		     1,160,000       1,286,788    
Red River Authority Pollution
Control (MBIA Insured)
4.450%, due 06/01/20		     2,500,000       2,457,000    
Round Rock Independent School
District (PSF-GTD)
5.000%, due 08/01/16		     2,750,000       3,084,317    

 

    Face
amount		   Value  
Municipal bonds and notes—(continued)  
Texas—(concluded)  
SA Energy Acquisition Public
Facility Corp. Gas Supply Revenue
5.250%, due 08/01/17		   $ 1,000,000     $ 1,062,070    
San Antonio General Improvement
5.000%, due 02/01/14		     3,880,000       4,311,068    
Schertz-Cibolo-Universal City
Independent School District
School Building Series A (PSF-GTD)
5.000%, due 02/01/14		     1,500,000       1,663,185    
Tarrant County Health Facilities
Development Corp. Health
Systems Revenue Texas Health
Resources Systems Series A
(Escrowed to Maturity)
(MBIA Insured)
5.750%, due 02/15/15		     3,000,000       3,509,160    
Texas Municipal Gas Acquisition &
Supply Corp. I Gas Supply
Revenue Senior Lien Series A
5.000%, due 12/15/11		     1,000,000       1,042,900    
Texas Municipal Power Agency
Revenue (Escrowed to Maturity)
6.100%, due 09/01/136 		     25,000       21,066    
University of Texas Revenue
Refunding Financing Systems
Series D
5.000%, due 08/15/17		     2,000,000       2,245,380    
      38,973,057    
Utah—0.55%  
Utah State Housing Finance
Agency Single-Family Mortgage
Series G-3, Class III
5.700%, due 07/01/152 		     785,000       792,528    
Utah State Series A (Pre-refunded
with US Government Securities
to 07/01/13 @ 100)
5.000%, due 07/01/15		     1,000,000       1,114,090    
      1,906,618    
Virginia—1.92%  
Fairfax County Economic
Development Authority Resource
Recovery Revenue Refunding
Series A (AMBAC Insured)
6.100%, due 02/01/112 		     2,000,000       2,179,440    
Tobacco Settlement Financing
Corp. Asset-Backed Revenue
Bonds (Pre-refunded with FNMA
obligations to 06/01/15 @ 100)
5.625%, due 06/01/37		     3,810,000       4,442,536    
      6,621,976    

 


60


UBS PACE Select Advisors Trust

UBS PACE Municipal Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount		   Value  
Municipal bonds and notes—(concluded)  
Washington—3.92%  
Energy Northwest Electric Revenue
Columbia Station Series A
5.000%, due 07/01/23		   $ 2,500,000     $ 2,653,225    
Energy Northwest Electric Revenue
Refunding Project 1 Series A
5.000%, due 07/01/16		     1,515,000       1,692,270    
Energy Northwest Electric Revenue
Refunding Project 3 Series A
5.500%, due 07/01/13		     1,000,000       1,125,700    
Port Seattle Revenue Series B
(AMBAC Insured)
5.000%, due 10/01/122 		     1,425,000       1,533,386    
Washington Health Care Facilities
Authority Overlake Hospital
Medical Center Series A
(Assured Guaranty Insured)
5.000%, due 07/01/16		     1,000,000       1,088,350    
Washington State Public Power
Supply Systems Nuclear Project
No. 1 Revenue Refunding Series B
7.125%, due 07/01/16		     3,000,000       3,814,410    
Washington State Series 93-A
(Escrowed to Maturity)
5.750%, due 10/01/12		     20,000       21,659    
Washington State Unrefunded
Balance Series 93-A (FSA Insured)
5.750%, due 10/01/12		     1,480,000       1,592,865    
      13,521,865    
Wisconsin—1.46%  
Badger Tobacco Asset
Securitization Corp.
5.500%, due 06/01/10		     2,150,000       2,225,895    
Badger Tobacco Asset
Securitization Corp.
Asset-Backed Revenue Bonds
5.750%, due 06/01/11		     1,640,000       1,726,018    
Wisconsin State Certificates of
Participation Master Lease
Series A (MBIA Insured)
5.000%, due 03/01/13		     1,000,000       1,089,340    
      5,041,253    
Wyoming—0.61%  
Sweetwater County Improvement
Projects Joint Powers Board Lease
Revenue Bonds (MBIA Insured)
5.000%, due 06/15/13		     2,000,000       2,101,140    
Total municipal bonds and notes
(cost—$331,300,040)		           339,253,792    

 

    Face
amount		   Value  
Short-term municipal notes7—0.49%  
Idaho—0.35%  
Idaho Health Facilities Authority
Revenue St. Lukes Regional
Medical Center Project
(FSA Insured)
2.010%, due 02/01/08		   $ 1,200,000     $ 1,200,000    
Kansas—0.14%  
Kansas State Department of
Transportation Highway
Revenue Series B-2
1.990%, due 02/01/08		     500,000       500,000    
Total short-term municipal notes
(cost—$1,700,000)		           1,700,000    
    Number of
shares		      
Tax-free money market fund8—0.01%  
State Street Global Advisors
Tax Free Money Market Fund
2.060% (cost—$42,689)		     42,689       42,689    
Total investments—98.87%
(cost—$333,042,729)		           340,996,481    
Other assets in excess of
liabilities—1.13%		           3,902,244    
Net assets—100.00%   $ 344,898,725    

 


61


UBS PACE Select Advisors Trust

UBS PACE Municipal Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

1  Step-up bond that converts to the noted fixed rate at a designated future date.

2  Security subject to Alternative Minimum Tax.

3  Security exempt from registration under Rule 144A of the Securities Act of 1933. This security, which represents 0.51% of net assets as of January 31, 2008, is considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

4  Floating rate security. The interest rate shown is the current rate as of January 31, 2008.

5  Security purchased on a when-issued basis. When issued refers to a transaction made conditionally because a security, although authorized, has not yet been issued.

6  Zero coupon bond; interest rate represents annualized yield at date of purchase.

7  Variable rate demand notes are payable on demand. The maturity dates shown are the next interest rate reset dates. The interest rates shown are the current rates as of January 31, 2008.

8  Rate shown reflects yield at January 31, 2008.

ACA  American Capital Access

AMBAC  American Municipal Bond Assurance Corporation

CBI  Certificates of Bond Insurance

CIFG  CDC IXIS Financial Guaranty

FGIC  Financial Guaranty Insurance Company

FHA  Federal Housing Authority

FNMA  Federal National Mortgage Association

FSA  Financial Security Assurance

GNMA  Government National Mortgage Association

GTD  Guaranteed

MBIA  Municipal Bond Investors Assurance

MGIC  Mortgage Guaranty Insurance Corporation

PSF  Permanent School Fund

TCRs  Transferable Custodial Receipts

USDA  United States Department of Agriculture

VA  Veterans Administration

See accompanying notes to financial statements.
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Performance

For the six months ended January 31, 2008, the Portfolio's Class P shares returned 11.44% (before deduction of the maximum UBS PACE Select program fee; 10.60% after deduction of the maximum UBS PACE Select program fee for the six month period). In comparison, the Lehman Brothers Global Aggregate (ex-US) Index (in USD) (the "benchmark") returned 11.63% and the median return for the Lipper Global Income Funds category was 7.71%. (Returns for all share classes over various time periods are shown in the "Performance at a Glance" table on page 65. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.)

Market review

It was a rollercoaster ride for the financial markets during the reporting period. July and August 2007 turned into brutal months for most non-government asset classes. A confluence of factors, including further losses amongst US mortgage lenders, the withdrawal of cheap financing for leveraged buyouts, and glum US housing market data sent a wide range of asset classes into a steep decline. The markets followed more normal patterns in September, but the risk environment deteriorated once again in November as the banking sector disclosed further significant losses related to structured credit instruments. US economic data did not help sentiment, offering signs that the slump in the housing market still had further to run. In December, central banks came up with a plan to ease funding constraints in the banking sector. They took the unusual step of embarking on coordinated liquidity injections in an effort to restore confidence in the banking sector after the massive write-downs on securities linked to subprime mortgages. The announced measures helped to ease pressure in the short-term money markets, although the financial markets remained nervous, believing the possibility of a US recession to be increasing rapidly.

Advisors' comments
Rogge Global Partners

In terms of our country allocations, we preferred economies with strong economic growth and debt dynamics such as the Scandinavian countries (Norway, Sweden and Denmark) in addition to Australia. We took the view that downside growth risks were emerging in

UBS PACE Select Advisors Trust – UBS PACE Global Fixed Income Investments

Investment Advisors:

Rogge Global Partners plc ("Rogge Global Partners") and for the period from August 1-August 22, 2007, Fischer Francis Trees & Watts, Inc. (and affiliates) ("FFTW")

Portfolio Managers:

Rogge Global Partners: Team, led by Olaf Rogge; FFTW: Team, led by David Marmon

Objective:

High total return

Investment process:

Rogge Global Partners seeks to invest the Portfolio assets in bonds of financially healthy issuers, because it believes that these investments produce the highest bond and currency returns over time. In deciding which bonds to buy for the Portfolio, Rogge Global Partners uses a top-down analysis to find value across countries and to forecast interest and currency-exchange rates over a one-year horizon in those countries. Rogge Global Partners also uses an optimization model to help determine country, currency and duration positions for the Portfolio. Rogge Global Partners generally sells securities that no longer meet these selection criteria or when it identifies more attractive investment opportunities, and may also sell securities to adjust the average duration of the Portfolio assets it manages.

FFTW divides the investment universe into three major blocs (the Americas, Eurozone and Asia) plus emerging markets, and analyzes in each bloc, trends in economic growth, inflation, and monetary and fiscal policies. FFTW decides which securities to buy for the Portfolio by looking for investment opportunities where its opinions on the current economic environment of a bloc or country differ from those it judges to be reflected in current market valuations. FFTW generally sells securities when it has identified more attractive investment opportunities.


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Advisors' comments – concluded

Japan, the UK and Canada. As such, we expected these countries to offer less value on a relative basis versus our preferred countries. A short duration position in the UK in the early part of the reporting period added to returns, while a long duration position in Australia subtracted from returns. (Duration measures a portfolio's sensitivity to interest rate changes.) Our decision to keep the Portfolio's duration longer than the benchmark's contributed to performance over the period.

The Portfolio's currency positioning subtracted value over the period. Because the yen rallied as the risk environment deteriorated, our underweight Japanese yen position was the main detractor from performance. However, our underweight British pound position was a key positive contributor to returns. Our overweight positions in the Norwegian and Danish krone, the Australian dollar, and a basket of Asian currencies also added to returns, as did an underweight Canadian dollar position. A smaller overweight position in the Brazilian real towards the end of the period also added value.

The market's focus remained on the banking and finance sectors over the reporting period. Incoming earnings data and trading updates provided further evidence of losses from structured credit vehicles. Commentary from US lenders also made it clear that loan loss provision requirements were rising across the board as the deteriorating US housing market took its toll on the consumer. Our positioning in investment grade credit markets benefited from having a small underweight exposure to the financial sector, which underperformed during the period.

Despite continued robust fundamentals in emerging markets, the asset class suffered under the weight of a deteriorating risk environment. Our small allocation to emerging markets debt hurt performance only slightly.

FFTW

We managed a portion of the Portfolio from August 1, 2007 through the end of the business day on August 22, 2007. In early August, we began liquidating our non-government exposures, including corporate credit, mortgage-backed and asset-backed securities. As credit exposures were liquidated, the proceeds were invested in government and sovereign securities in an effort to manage the Portfolio's duration exposure. Through the period, concerns over the impact of hedge fund liquidations, subprime spillover and issues related to structured credit, caused global credit spreads to widen as investors flocked to US Treasury bonds and sovereign bonds.

Special considerations

The Portfolio may be appropriate for long-term investors seeking high total return and who are able to withstand short-term fluctuations in the fixed income markets in return for potentially higher returns over the long term. The yield and value of the Portfolio change every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the issuers in which the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan. The value of the Portfolio's investments in foreign securities may fall due to adverse political, social and economic developments abroad and due to decreases in foreign currency values relative to the US dollar. These risks are greater for investments in emerging markets than in more developed countries.


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Performance at a glance (unaudited)

Average annual total returns for periods ended 01/31/08       6 months   1 year   5 years   10 years   Since
inception1 		  
Before deducting   Class A2      11.30 %     15.69 %     6.77 %     N/A       7.50 %  
maximum sales charge   Class B3      10.95 %     14.90 %     5.98 %     N/A       6.34 %  
or UBS PACE Select   Class C4      11.02 %     15.12 %     6.25 %     N/A       7.04 %  
program fee   Class Y5      11.60 %     16.22 %     7.12 %     N/A       7.49 %  
    Class P6      11.44 %     16.08 %     7.03 %     5.73 %     5.69 %  
After deducting   Class A2      6.25 %     10.51 %     5.79 %     N/A       6.82 %  
maximum sales charge   Class B3      5.95 %     9.90 %     5.66 %     N/A       6.34 %  
or UBS PACE Select   Class C4      10.27 %     14.37 %     6.25 %     N/A       7.04 %  
program fee   Class P6      10.60 %     14.35 %     5.44 %     4.16 %     4.12 %  
Lehman Brothers Global Aggregate ex US Index (in USD)         11.63 %     16.64 %     8.36 %     6.37 %     5.88 %  
Citigroup World Government Bond Index (in USD)         12.21 %     16.65 %     7.30 %     6.60 %     6.12 %  
Lipper Global Income Funds median         7.71 %     11.16 %     6.25 %     5.30 %     5.94 %  

 

Average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: Class A—1-year period, 5.15%; 5-year period, 5.41%; since inception, 6.39%; Class B—1-year period, 4.22%; 5-year period, 5.26%; since inception, 5.90%; Class C—1-year period, 8.78%; 5-year period, 5.85%; since inception, 6.63%; Class Y—1-year period, 10.39%; 5-year period, 6.70%; since inception, 7.04%; Class P—1-year period, 8.70%; 5-year period, 5.02%; 10-year period, 3.95%; since inception, 3.87%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 30, 2007 prospectuses were as follows: Class A—1.37% and 1.25%; Class B—2.13% and 2.00%; Class C—1.85% and 1.75%; Class Y—1.03% and 0.98%; and Class P—1.22% and 1.00%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. Effective August 1, 2007, the portfolio and UBS Global AM have entered into a written fee waiver agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees to the extent necessary to reflect the lower sub-advisory fee paid by UBS Global AM to Rogge. The portfolio and UBS Global AM also entered into an additional written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse the portfolio so that the ordinary total operating expenses of each class through November 30, 2008 (excluding dividend expense, borrowing costs and interest expense, if any) would not exceed Class A—1.25%; Class B—2.00%; Class C—1.75%; Class Y—1.00%; and Class P—1.00%. The portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses under the preceding sentence to the extent that it can do so over the following three fiscal years without causing the portfolio's expenses in any of those three years to exceed these expense caps described above.

1  Since inception returns are calculated as of commencement of issuance on August 24, 1995 for Class P shares, December 11, 2000 for Class A shares, February 5, 2001 for Class B shares, December 1, 2000 for Class C shares and January 16, 2001 for Class Y shares. Since inception returns for the Indices and Lipper median are shown as of August 31, 1995, which is the month-end after the inception date of the oldest share class (Class P). Effective December 1, 2005, the Portfolio's benchmark was changed to the Lehman Brothers Global Aggregate ex US Index (in USD). The other index that is shown is for supplemental purposes only.

2  Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.

3  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

4  Maximum contingent deferred sales charge for Class C shares is 0.75% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

5  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

6  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual UBS PACE Select program fee of 1.5% of the value of Class P shares.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

The Lehman Brothers Global Aggregate ex US Index (in USD) provides a broad-based measure of the global investment-grade fixed income markets excluding the US market. The two major components of this Index are the Pan-European Aggregate and the Asian-Pacific Aggregate Indices. The Index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities.

The Citigroup World Government Bond Index (in USD) is a market capitalization-weighted index composed of straight (i.e., not floating rate or index-linked) government bonds with a one-year minimum maturity. The average maturity is seven years. The Index includes the 23 government bond markets of Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Malaysia, the Netherlands, Norway, Poland, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for the period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.


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Portfolio statistics (unaudited)

Characteristics   01/31/08  
Net assets (mm)   $ 666.3    
Number of holdings     132    
Portfolio composition1    01/31/08  
Long-term global debt securities     94.6 %  
Futures and forward foreign currency contracts     0.2    
Cash equivalents and other assets less liabilities     5.2    
Total     100.0 %  
Quality diversification1    01/31/08  
US government and agency securities     2.3 %  
AAA     60.4    
AA     17.6    
A     5.2    
BBB     3.1    
BB     0.7    
Non-rated     5.3    
Futures and forward foreign currency contracts     0.2    
Cash equivalents and other assets less liabilities     5.2    
Total     100.0 %  
Top five countries of origin1    01/31/08  
Germany     17.2 %  
Japan     16.8    
France     14.6    
Sweden     9.0    
United States     7.6    
Total     65.2 %  

 

1  Weightings represent percentages of the Portfolio's net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time. Credit quality ratings shown are based on the ratings assigned to portfolio holdings by Standard & Poor's Ratings Group, an independent rating agency.


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Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Long-term global debt securities—94.62%  
Australia—0.30%  
Australia & New Zealand
Banking Group Ltd.
4.450%, due 02/05/152 		   EUR 450,000     $ 663,390    
BHP Billiton Finance
4.125%, due 05/05/11		   EUR 900,000       1,306,848    
      1,970,238    
Austria—3.55%  
Republic of Austria
3.800%, due 10/20/13		     1,870,000       2,789,830    
4.000%, due 07/15/09     13,950,000       20,864,099    
      23,653,929    
Belgium—1.30%  
Kingdom of Belgium
4.250%, due 09/28/13		     3,365,000       5,120,257    
5.500%, due 03/28/28     1,830,000       3,049,179    
8.000%, due 03/28/15     250,000       464,646    
      8,634,082    
Brazil—0.18%  
Federal Republic of Brazil
8.000%, due 01/15/18		   USD 1,050,000       1,186,500    
Canada—0.44%  
Government of Canada
4.000%, due 06/01/16		     910,000       918,048    
5.750%, due 06/01/33     1,640,000       2,020,171    
      2,938,219    
Cayman Islands—0.40%  
Pacific Life Funding LLC
5.125%, due 01/20/15		   GBP 1,400,000       2,654,858    
Denmark—4.27%  
Dong Energy A/S
3.500%, due 06/29/12		   EUR 950,000       1,339,411    
Kingdom of Denmark
4.000%, due 11/15/15		     103,300,000       20,676,319    
6.000%, due 11/15/11     21,830,000       4,700,160    
Nykredit A/S
4.000%, due 01/01/12		     8,613,000       1,712,550    
      28,428,440    
Finland—1.07%  
Government of Finland
5.750%, due 02/23/11		     4,500,000       7,108,615    
France—14.62%  
BNP Paribas
3.125%, due 12/06/152 		     750,000       1,076,082    
5.250%, due 01/23/142      1,500,000       2,237,776    
Caisse d'Amortissement
de la Dette Sociale
3.625%, due 04/25/15		     4,500,000       6,533,122    
ERAP
3.375%, due 04/25/08		     1,950,000       2,894,324    

 

    Face
amount1 		   Value  
Long-term global debt securities—(continued)  
France—(concluded)  
France Telecom
8.125%, due 01/28/33		     350,000     $ 650,577    
French Treasury Notes
4.500%, due 07/12/12		     24,910,000       38,343,189    
Republic of France
4.000%, due 04/25/09		     14,050,000       20,979,614    
4.000%, due 04/25/55     1,250,000       1,678,744    
5.000%, due 10/25/11     60,000       93,561    
5.500%, due 04/25/10     9,460,000       14,664,575    
5.750%, due 10/25/32     2,520,000       4,420,886    
Societe Generale
4.875%, due 12/18/142 		     2,100,000       3,127,676    
Veolia Environnement
4.375%, due 12/11/20		     550,000       715,634    
      97,415,760    
Germany—17.22%  
Bayerische Landesbank
5.750%, due 10/23/17		     1,550,000       2,253,312    
Deutsche Bank AG
3.625%, due 03/09/172 		     2,100,000       2,928,007    
Deutsche Genossenschafts-
Hypothekenbank
4.000%, due 10/31/16		     4,050,000       5,910,060    
Federal Republic of Germany
3.250%, due 04/17/09		     500,000       740,347    
3.250%, due 07/04/15     800,000       1,147,922    
3.500%, due 10/09/09     1,300,000       1,933,443    
3.500%, due 01/04/16     27,610,000       40,127,886    
3.750%, due 01/04/15     1,117,000       1,660,842    
3.750%, due 01/04/17     90,000       132,453    
4.000%, due 07/04/16     975,000       1,462,447    
4.000%, due 01/04/37     3,860,000       5,325,992    
4.125%, due 07/04/08     4,500,000       6,693,559    
4.250%, due 02/15/08     1,300,000       1,932,535    
4.250%, due 01/04/14     1,230,000       1,885,310    
4.250%, due 07/04/14     1,290,000       1,976,509    
4.250%, due 07/04/17     1,600,000       2,442,397    
4.500%, due 01/04/13     2,305,000       3,571,420    
4.750%, due 07/04/28     340,000       527,340    
5.000%, due 07/04/11     400,000       622,618    
5.000%, due 01/04/12     2,720,000       4,255,193    
5.000%, due 07/04/12     2,715,000       4,266,220    
5.250%, due 01/04/11     100,000       155,880    
5.375%, due 01/04/10     1,335,000       2,054,864    
Hypothekenbank in Essen
3.750%, due 09/28/12		     4,060,000       5,973,110    
Kreditanstalt Fuer Wiederaufbau
3.500%, due 04/17/09		     5,610,000       8,322,926    
5.250%, due 07/04/12     4,100,000       6,440,330    
      114,742,922    
Ireland—0.70%  
Bank of Ireland Mortgage Bank
3.500%, due 09/22/09		     2,550,000       3,759,863    

 


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Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Long-term global debt securities—(continued)  
Ireland—(concluded)  
UT2 Funding PLC
5.321%, due 06/30/16		     740,000     $ 934,670    
      4,694,533    
Italy—0.24%  
Telecom Italia SpA
4.500%, due 01/28/11		     1,100,000       1,615,045    
Japan—16.81%  
Bank of Tokyo-Mitsubishi UFJ
3.500%, due 12/16/152 		   EUR 2,300,000       3,265,778    
Development Bank of Japan
1.750%, due 03/17/17		     130,000,000       1,239,204    
2.300%, due 03/19/26     50,000,000       481,890    
Government of Japan
1.400%, due 09/20/15		     128,000,000       1,225,568    
1.500%, due 09/20/14     648,000,000       6,269,998    
1.700%, due 12/20/16     1,755,000,000       17,053,164    
1.700%, due 03/20/17     3,046,400,000       29,494,692    
1.900%, due 06/20/16     728,800,000       7,215,576    
2.000%, due 03/20/16     3,483,000,000       34,775,927    
2.200%, due 09/20/26     613,000,000       5,889,290    
2.300%, due 12/20/36     380,000,000       3,526,323    
Sumitomo Mitsui Banking
4.375%, due 10/15/153,4 		   EUR 1,250,000       1,564,617    
      112,002,027    
Luxembourg—3.58%  
European Investment Bank
1.400%, due 06/20/17		   JPY 90,000,000       845,876    
4.500%, due 01/14/13   GBP 1,775,000       3,491,545    
4.625%, due 03/21/12   USD 18,500,000       19,542,716    
      23,880,137    
Malaysia—0.05%  
Petronas Capital Ltd.
6.375%, due 05/22/09		   EUR 200,000       303,539    
Mexico—0.35%  
United Mexican States
5.500%, due 02/17/20		   EUR 300,000       444,226    
7.500%, due 03/08/10   EUR 800,000       1,255,963    
8.300%, due 08/15/31   USD 500,000       633,000    
      2,333,189    
Netherlands—4.55%  
Bank Nederlandse Gemeenten
4.375%, due 01/19/15		   GBP 660,000       1,269,190    
BAT Holdings BV
4.375%, due 09/15/14		     1,650,000       2,314,456    
BMW Finance NV
4.250%, due 01/22/14		     450,000       652,033    
5.000%, due 08/06/18     450,000       680,456    
Deutsche Telekom
International Finance
8.125%, due 05/29/12		     955,000       1,582,123    

 

    Face
amount1 		   Value  
Long-term global debt securities—(continued)  
Netherlands—(concluded)  
E.ON International Finance BV
5.750%, due 05/29/09		     3,000,000     $ 4,545,665    
EDP Finance BV
5.375%, due 11/02/125 		   USD 3,600,000       3,708,569    
ELM BV
(Swiss Reinsurance Co.)
5.252%, due 05/25/163,4 		     950,000       1,266,241    
ENBW International
Finance BV
4.875%, due 01/16/25		     1,580,000       2,271,854    
Generali Finance BV
6.214%, due 06/16/163,4 		   GBP 750,000       1,395,965    
Government of the
Netherlands
5.250%, due 07/15/08		     1,451       2,169    
5.500%, due 01/15/28     500       845    
7.500%, due 01/15/23     2,020,000       4,045,069    
Linde Finance BV
4.750%, due 04/24/17		     1,040,000       1,466,498    
RWE Finance BV
5.125%, due 07/23/18		     900,000       1,376,688    
Siemens Financieringsmat
6.125%, due 09/14/662 		   GBP 700,000       1,277,856    
TNT NV
5.375%, due 11/14/17		     1,700,000       2,483,475    
      30,339,152    
Norway—0.13%  
Statkraft AS
4.625%, due 09/22/17		   EUR 600,000       861,464    
Peru—0.48%  
Republic of Peru
7.350%, due 07/21/25		   USD 1,800,000       2,043,000    
8.750%, due 11/21/33   USD 900,000       1,190,250    
      3,233,250    
Russia—0.73%  
Gaz Capital (Gazprom)
4.560%, due 12/09/12		     3,200,000       4,361,619    
8.625%, due 04/28/34   USD 400,000       489,520    
      4,851,139    
Spain—0.81%  
Santander Issuances
4.500%, due 09/30/192 		     1,600,000       2,229,411    
Telefonica Emisiones SAU
6.221%, due 07/03/17		   USD 3,000,000       3,148,986    
      5,378,397    
Sweden—8.98%  
Kingdom of Sweden
3.500%, due 12/01/15		     29,500,000       6,150,789    
4.500%, due 08/12/15     62,900,000       10,283,389    
6.750%, due 05/05/14     11,320,000       2,065,606    
Nordea Bank AB
4.000%, due 09/30/162 		   EUR 1,000,000       1,450,779    

 


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Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Long-term global debt securities—(concluded)  
Sweden—(concluded)  
Sweden Government Bond
3.000%, due 07/12/16		     24,800,000     $ 3,647,959    
3.750%, due 08/12/17     232,800,000       36,003,678    
5.000%, due 12/01/20     1,340,000       230,404    
      59,832,604    
United Kingdom—6.24%  
Aviva PLC
5.250%, due 10/02/232 		   EUR 1,500,000       2,173,762    
Barclays Bank PLC
4.500%, due 03/04/192 		   EUR 2,200,000       3,076,859    
Network Rail Infrastructure
Finance
4.875%, due 11/27/15		     705,000       1,400,240    
Rolls-Royce Group PLC
Euro MTN
4.500%, due 03/16/11		   EUR 1,000,000       1,486,350    
Standard Chartered Bank
3.625%, due 02/03/172 		   EUR 1,400,000       1,937,037    
United Kingdom Treasury
Bonds
4.000%, due 03/07/09		     3,300,000       6,538,131    
4.000%, due 09/07/16     654,000       1,258,284    
4.250%, due 12/07/55     2,920,000       5,815,276    
4.750%, due 09/07/15     7,460,000       15,126,527    
5.000%, due 03/07/25     1,315,000       2,776,076    
      41,588,542    
United States—7.62%  
BMW US Capital LLC
2.750%, due 09/23/10		   EUR 1,150,000       1,648,738    
Citigroup, Inc.
2.400%, due 10/31/25		   JPY 74,000,000       608,378    
IBM Corp.
5.700%, due 09/14/17		     3,000,000       3,151,491    
Inter-American
Development Bank
4.750%, due 10/19/12		     6,000,000       6,365,910    
5.125%, due 09/13/16     12,000,000       12,889,944    
JP Morgan Chase Bank N.A.
6.000%, due 10/01/17		     2,850,000       2,971,279    
Morgan Stanley
4.750%, due 04/01/14		     2,130,000       2,048,332    
Procter & Gamble Co.
4.875%, due 05/11/27		   EUR 1,610,000       2,240,595    
Schering-Plough
5.000%, due 10/01/10		   EUR 1,750,000       2,625,865    
US Treasury Notes
5.000%, due 07/31/08		     15,000,000       15,212,115    
Vodafone Group PLC
5.625%, due 02/27/17		     980,000       982,648    
      50,745,295    
Total long-term global debt
securities (cost—$570,965,081)		           630,391,876    

 

    Number of
shares		   Value  
Money market funds6—0.00%  
Blackrock Provident Institutional
TempFund,
4.123%		     3     $ 3    
DWS Money Market Series,
4.201%		     107       107    
Total money market funds
(cost—$110)		           110    
    Face
amount1 		      
Repurchase agreement—2.20%  
Repurchase agreement dated
01/31/08 with State Street
Bank & Trust Co., 1.400%,
due 02/01/08 collateralized
by $1,712,978 US Treasury
Bills, zero coupon due
05/01/08, $1,077,605 US
Treasury Bonds, 8.125%
due 08/15/19 and $11,100,580
US Treasury Notes, 4.750%
due 12/31/08 to 01/31/12;
(value—$14,963,471);
proceeds: $14,670,571
(cost—$14,670,000)		   $ 14,670,000       14,670,000    
Total investments—96.82%
(cost—$585,635,191)		           645,061,986    
Other assets in excess of
liabilities—3.18%		           21,191,590    
Net assets—100.00%   $ 666,253,576    

 


69


UBS PACE Select Advisors Trust

UBS PACE Global Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

  Note: The portfolio of investments is listed by the issuer's country of origin.

1  In local currency unless otherwise indicated.

2  Floating rate security. The interest rate shown is the current rate as of January 31, 2008.

3  Perpetual bond security. The maturity date reflects the next call date.

4  Variable rate security. The interest rate shown is the current rate as of January 31, 2008, and resets at the next call date.

5  Security exempt from registration under Rule 144A of the Securities Act of 1933. This security, which represent 0.56% of net assets as of January 31, 2008, is considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

6  Rates shown reflect yield at January 31, 2008.

Note: The table below details the Portfolio's transaction activity in an affiliated issuer during the six months ended January 31, 2008. There are no investments in affiliated issuers at January 31, 2008.

Security description   Value at
07/31/07		   Purchases
during the
six months
ended
01/31/08		   Sales
during the
six months
ended
01/31/08		   Value at
01/31/08		   Net income
earned from
affiliate for
the six months
ended
01/31/08		  
UBS Private Money Market Fund LLC   $ 496,397     $ 86,230,445     $ 86,726,842     $ —     $ 12,055    

 

EUR  Euro

GBP  Great Britain Pound

JPY  Japanese Yen

MTN  Medium Term Note

USD  US Dollar

Futures contracts

Number of
contracts		   Currency   Buy contracts   Expiration
dates		   Cost   Current
value		   Unrealized
appreciation
(depreciation)		  
  407     AUD   Australia Bond 10 Year Futures   March 2008   $ 36,412,842     $ 36,301,559     $ (111,283 )  
  74     CAD   Canada Bond 10 Year Futures   March 2008     8,485,714       8,559,152       73,438    
  234     EUR   Euro Bund 10 Year Futures   March 2008     40,168,168       40,623,701       455,533    
  66     GBP   United Kingdom Long Gilt 10 Year Futures   March 2008     14,479,422       14,522,630       43,208    
  9     JPY   Japan Bond 10 Year Futures   March 2008     11,510,700       11,650,179       139,479    
                111,056,846       111,657,221       600,375    
        Sale contracts       Proceeds          
  369     USD   US Treasury Note 10 Year Futures   March 2008     41,552,221       43,069,219       (1,516,998 )  
    $ (916,623 )  

 

Currency type abbreviations:

AUD  Australian Dollar

CAD  Canadian Dollar

EUR  Euro

GBP  Great Britain Pound

JPY  Japanese Yen

USD  US Dollar


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UBS PACE Select Advisors Trust

UBS PACE Global Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

Forward foreign currency contracts

    Contracts to
deliver		   In
exchange for		   Maturity
dates		   Unrealized
appreciation
(depreciation)		  
Australian Dollar     33,661,149     EUR 19,991,180     03/11/08   $ (349,352 )  
Australian Dollar     1,100,000     USD 974,380     03/11/08     (7,187 )  
Canadian Dollar     8,281,165     AUD 9,240,000     03/11/08     5,292    
Canadian Dollar     1,878,000     EUR 1,275,555     03/11/08     25,610    
Canadian Dollar     3,794,387     GBP 1,867,316     03/11/08     (71,205 )  
Canadian Dollar     6,690,000     NOK 37,004,932     03/11/08     164,974    
Canadian Dollar     14,070,000     USD 13,729,436     03/11/08     (270,402 )  
Canadian Dollar     6,670,000     USD 6,479,994     03/11/08     (156,746 )  
Canadian Dollar     4,421,435     USD 4,380,000     03/11/08     (19,387 )  
Danish Krone     12,743,211     EUR 1,710,000     03/11/08     729    
Danish Krone     12,668,910     EUR 1,700,000     03/11/08     681    
Danish Krone     25,491,464     EUR 3,420,000     03/11/08     454    
Danish Krone     61,492,797     GBP 5,926,445     03/11/08     (494,001 )  
Danish Krone     113,012,206     USD 22,423,502     03/11/08     (90,612 )  
Euro     3,733     CHF 6,129     03/11/08     133    
Euro     15,925,863     DKK 118,576,014     03/11/08     (27,954 )  
Euro     27,579,125     JPY 4,470,576,199     03/11/08     1,199,395    
Euro     21,730,000     JPY 3,331,904,360     03/11/08     (851,573 )  
Euro     1,200,000     NOK 9,576,724     03/11/08     (16,638 )  
Euro     11,496,323     NOK 93,440,811     03/11/08     152,740    
Euro     9,025,327     SEK 84,257,748     03/11/08     (177,391 )  
Great Britain Pound     10,393,781     AUD 24,480,473     03/11/08     1,226,240    
Great Britain Pound     23,485,030     EUR 32,753,432     03/11/08     2,051,951    
Great Britain Pound     6,600,000     EUR 8,723,545     03/11/08     (137,873 )  
Great Britain Pound     420,942     JPY 92,998,801     03/11/08     41,896    
Great Britain Pound     1,627,107     NZD 4,494,396     03/11/08     296,137    
Japanese Yen     945,606,493     AUD 10,059,644     03/11/08     59,942    
Japanese Yen     784,707,402     USD 7,178,734     03/11/08     (220,680 )  
Malaysian Ringgit     12,500,000     USD 3,797,084     04/15/08     (62,430 )  
Malaysian Ringgit     18,000,000     USD 5,475,119     04/15/08     (82,581 )  
New Zealand Dollar     3,989,400     USD 3,036,851     03/11/08     (91,087 )  
Norwegian Krone     6,466,958     GBP 578,181     03/11/08     (45,182 )  
Norwegian Krone     36,100,000     SEK 41,695,500     03/11/08     (110,048 )  
South Korean Won     3,550,000,000     USD 3,745,714     04/15/08     (8,318 )  
Swedish Krona     69,858,265     USD 10,876,850     03/11/08     (88,475 )  
Swedish Krona     128,144,659     USD 20,308,187     03/11/08     193,919    
Swedish Krona     205,120,604     USD 31,889,581     03/11/08     (307,241 )  
Swedish Krona     9,717,124     USD 1,516,158     03/11/08     (9,094 )  

 


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UBS PACE Select Advisors Trust

UBS PACE Global Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

Forward foreign currency contracts—(concluded)

    Contracts to
deliver		   In
exchange for		   Maturity
dates		   Unrealized
appreciation
(depreciation)		  
United States Dollar     25,873,167     AUD 29,525,650     03/11/08   $ 473,562    
United States Dollar     10,800,000     AUD 12,137,109     03/11/08     30,350    
United States Dollar     2,545,562     AUD 2,900,000     03/11/08     42,205    
United States Dollar     3,636,364     BRL 6,660,000     04/15/08     101,482    
United States Dollar     11,450,785     CAD 11,379,790     03/11/08     (127,742 )  
United States Dollar     177,060     CAD 179,185     03/11/08     1,231    
United States Dollar     1,500,937     DKK 7,640,258     03/11/08     21,144    
United States Dollar     194,059     DKK 1,007,943     03/11/08     6,742    
United States Dollar     127,568     DKK 642,524     03/11/08     435    
United States Dollar     4,056,382     EUR 2,746,503     03/11/08     22,274    
United States Dollar     3,572,505     EUR 2,438,004     03/11/08     48,019    
United States Dollar     9,964,145     EUR 6,914,041     03/11/08     303,455    
United States Dollar     2,503,658     EUR 1,692,284     03/11/08     9,445    
United States Dollar     22,519,955     EUR 15,218,551     03/11/08     80,141    
United States Dollar     5,513,487     GBP 2,685,972     03/11/08     (185,230 )  
United States Dollar     9,153,766     GBP 4,616,067     03/11/08     3,288    
United States Dollar     722,433     INR 28,500,000     04/15/08     (2,316 )  
United States Dollar     2,186,157     INR 86,480,000     04/15/08     (1,043 )  
United States Dollar     17,631,516     INR 695,250,000     04/15/08     (64,439 )  
United States Dollar     1,290,486     INR 51,000,000     04/15/08     (1,855 )  
United States Dollar     531,500     JPY 58,708,968     03/11/08     22,097    
United States Dollar     247,384     JPY 26,841,100     03/11/08     5,715    
United States Dollar     2,936,486     KRW 2,670,000,000     04/15/08     (113,031 )  
United States Dollar     9,327,315     KRW 8,472,000,000     04/15/08     (368,398 )  
United States Dollar     5,615,503     KRW 5,100,000,000     04/15/08     (222,387 )  
United States Dollar     5,412,720     MYR 18,000,000     04/15/08     144,980    
United States Dollar     6,730,482     MYR 22,500,000     04/15/08     216,643    
United States Dollar     8,862,329     NOK 48,570,879     03/11/08     91,390    
United States Dollar     506,764     NOK 2,777,472     03/11/08     5,245    
United States Dollar     6,918,713     SEK 43,934,778     03/11/08     (22,476 )  
United States Dollar     17,854,637     SGD 25,450,000     04/15/08     159,746    
United States Dollar     2,213,714     SGD 3,180,000     04/15/08     37,199    
United States Dollar     10,856,877     TWD 349,700,000     04/15/08     96,407    
    $ 2,538,914    

 


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UBS PACE Select Advisors Trust

UBS PACE Global Fixed Income Investments

Portfolio of investments—January 31, 2008 (unaudited)

Currency type abbreviations:

AUD  Australian Dollar

BRL  Brazilian Real

CAD  Canadian Dollar

CHF  Swiss Franc

DKK  Danish Krone

EUR  Euro

GBP  Great Britain Pound

INR  Indian Rupee

JPY  Japanese Yen

KRW  South Korean Won

MYR  Malaysian Ringgit

NZD  New Zealand Dollar

NOK  Norwegian Krone

SEK  Swedish Krona

SGD  Singapore Dollar

TWD  Taiwan Dollar

USD  US Dollar

Investments by type of issuer

    Percentage of total investments  
    Long-term   Short-term  
Government and other public issuers     71.38 %     —    
Repurchase agreement     —       2.27 %  
Banks and other financial institutions     19.65       —    
Industrial     6.70       —    
Money market fund     —       0.00 7   
      97.73 %     2.27 %  

 

7  Weighting represents less than 0.005% of total investments as of January 31, 2008.

See accompanying notes to financial statements.
73


UBS PACE Select Advisors Trust

UBS PACE High Yield Investments

Performance

For the six months ended January 31, 2008, the Portfolio's Class P shares returned 1.97% (before deduction of the maximum UBS PACE Select program fee; 1.21% after deduction of the maximum UBS PACE Select program fee for the six month period). In comparison, the Merrill Lynch Global High Yield Index (hedged in USD) (the "benchmark") returned 0.19%, and the median return of the Lipper High Current Yield Funds category was 0.33%. (Returns for all share classes over various time periods are shown in the "Performance at a Glance" table on page 76. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.)

Market review

The six months ended January 31, 2008 were dominated by the unfolding of the subprime mortgage crisis. As events played out, the world of leveraged structured products was profoundly shaken, resulting in sharp declines in asset prices, market illiquidity and huge write-downs at both US and European financial institutions. Housing prices fell in the US and UK, homebuilding activity in the US declined to levels not seen since 1995. As the implications of a system-wide deleveraging became more apparent, the possibility that the economy might sink into recession began to be seriously considered.

While equity markets were mixed and volatile over the period, the impact on credit markets was more definitive. High yield bonds and leveraged loans declined sharply, with the riskiest sectors being the hardest hit. CCC rated bonds, for example, declined in price over the period by an average of more than 9%. In contrast, sovereigns and other investments perceived to be "safe havens" rallied. In an effort to restore confidence and provide liquidity, the Federal Reserve Board (the "Fed") acted aggressively, taking the federal funds rate from 5.25% to 3.0% over the course of the reporting period. (The federal funds rate, or "fed funds" rate, is the rate that banks charge one another for funds they borrow on an overnight basis.) Meanwhile, the Bank of Japan (BOJ) and European Central Bank (ECB) have yet to follow suit, although the ECB's recent campaign of rate hikes is clearly on hold.

Advisor's comments

Our macroeconomic research has been indicating for some time that systemic risks in the global financial system were high, and the Portfolio was positioned accordingly. Going into the period, the Portfolio's yield was 0.5% lower than the yield of its benchmark, indicating that the Portfolio had assumed a lower level of risk. Over the period, the Portfolio became even more conservatively positioned.

UBS PACE Select Advisors Trust – UBS PACE High Yield Investments

Investment Advisor:

MacKay Shields LLC ("MacKay Shields")

Portfolio Managers:

Team

Objective:

Total return

Investment process:

MacKay Shields attempts to deliver attractive risk-adjusted returns by avoiding most of the unusually large losses in the high yield market, even if it means giving up much of the large gains. MacKay Shields believes that there is a very small subset of bonds that delivers outsized gains in the market. Due to the limited upside inherent in most bonds, over time, outsized gains are expected to be smaller than unusually large losses. By attempting to limit the Portfolio's participation in the extremes of the market, MacKay Shields strives to add value over a market cycle with lower volatility. MacKay Shields does this through a rigorous process that attempts to screen out what it believes to be the riskiest issuers in the market.


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UBS PACE Select Advisors Trust

UBS PACE High Yield Investments

Advisor's comments – concluded

The Portfolio maintained an overweight to the energy, gaming, coal, chemicals and services sectors, while continuing to increase weightings to the defense, consumer packaging, food and beverage, mid-stream energy and refining, and healthcare sectors. We expected these positions to be highly non-cyclical. The Portfolio participated in only a few of the highly leveraged, CCC rated leveraged buyout deals that dominated new issuance in 2007. This approach benefited performance, as those transactions were among the hardest hit following the market's downturn in the third quarter of 2007. The principal disappointment over the period was in the homebuilding sector. Here, the Portfolio held a small portfolio of bonds as a hedge against our macroeconomic outlook. While this strategy underperformed, its impact on the Portfolio's performance was minor, and we subsequently sold most of the bonds held in the homebuilding sector.

As a result of this sale, the weighting of the Portfolio in the riskiest part of the market, bonds rated CCC or lower versus the benchmark, decreased over the period. The average rating of the Portfolio's holdings drifted upward from a B+ to BB-. We believe that the conservative positioning of the Portfolio remains appropriate.

Special note regarding bank loans:

Beginning in the first quarter of 2008, the Portfolio may invest in loan participations and assignments. In a loan assignment, the loan is transferred to a new owner, in essence transferring the credit agreement from the original lender to the buyer. In contrast, a participation in a loan only transfers credit risk and interest payments to the buyer; the seller remains on the books as the lender of record. Participants do not become parties to the credit agreement. There are two basic categories of loans (leveraged and investment grade) and types of payment (variable rate, which is the most common, and fixed rate). Loans typically mature in one to ten years but are often prepaid in less than five years. Bank loans may be senior debt, senior subordinated debt or junior subordinated debt. Holders of senior loans normally have priority over the claims of most or all other creditors on the borrower's cash flow. In theory, senior loans must be repaid before claims from senior subordinated debt holders and junior subordinated debt holders.

Special considerations

The Portfolio may be appropriate for long-term investors seeking total return and who are able to withstand short-term fluctuations in the fixed income markets in return for potentially higher returns over the long term. The Portfolio seeks to achieve its objective by investing primarily in a professionally managed, diversified portfolio of fixed income securities rated below investment grade or considered to be of comparable quality (commonly referred to as "junk bonds"). These securities are subject to higher risks than investment grade securities, including greater price volatility and a greater risk of loss of principal and non-payment of interest. Issuers of such securities are typically in poor financial health, and their ability to pay interest and principal is uncertain. The prices of such securities may be more vulnerable to bad economic news, or even the expectation of bad news, than higher rated or investment grade bonds and other fixed income securities. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the issuers in which the Portfolio invests. In addition, investments in foreign bonds involve special risks. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.


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UBS PACE Select Advisors Trust

UBS PACE High Yield Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 01/31/08       6 months   1 year   Since
inception1 		  
Before deducting maximum
sales charge or UBS PACE		   Class A2      1.96 %     -0.24 %     3.29 %  
Select program fee   Class P3      1.97 %     -0.10 %     3.60 %  
After deducting maximum
sales charge or UBS PACE 		  Class A2      -2.61 %     -4.77 %     0.61 %  
Select program fee   Class P3      1.21 %     -1.59 %     2.06 %  
Merrill Lynch Global High Yield Index (hedged in USD)         0.19 %     -1.12 %     4.47 %  
Lipper High Current Yield Funds median         0.33 %     -1.06 %     3.72 %  

 

Average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: Class A—1-year period, -3.37%; since inception, 1.24%; Class P—1-year period, -0.15%; since inception, 2.82%

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 30, 2007 prospectuses were as follows: Class A—1.96% and 1.35%; Class B—2.71% and 2.10%; Class C—2.46% and 1.85%; Class Y—2.32% and 1.10%; and Class P—1.72% and 1.10%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The portfolio and UBS Global AM have entered into a written waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse the portfolio so that the ordinary total operating expenses of each class through November 30, 2008 (excluding dividend expense, borrowing costs and interest expense, if any) would not exceed Class A—1.35%; Class B—2.10%; Class C—1.85%; Class Y—1.10%; and Class P—1.10%. The portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the portfolio's expenses in any of those three years to exceed these expense caps described above.

1  Since inception returns are calculated as of commencement of issuance on April 10, 2006 for Class P shares and May 1, 2006 for Class A shares. The Class Y shares commenced issuance on April 3, 2006 and had been totally redeemed by July 24, 2006. Since inception returns for the Index and Lipper median are shown as of April 30, 2006, which is the month-end after the inception date of the oldest share class (Class P).

2  Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.

3  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual UBS PACE Select program fee of 1.5% of the value of Class P shares.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

Merrill Lynch Global High Yield Index (hedged in USD): U.S. dollar, Canadian dollar, sterling and euro-denominated fixed rate debt of corporate issuers domiciled in an investment grade rated country (i.e., BBB or higher foreign currency long-term debt rating). Individual bonds must be rated below investment grade (i.e., BB or lower based on a composite of Moody's and S&P) but not in default; must have at least one year remaining term to maturity; a minimum face value outstanding of $100 million, C$50 million, 50 million pounds sterling, or 50 million euros; and have available price quotations. New issues qualify for inclusion after they settle.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for the period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.


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UBS PACE Select Advisors Trust

UBS PACE High Yield Investments

Portfolio statistics (unaudited)

Characteristics   01/31/08  
Weighted average duration     4.4 yrs.  
Weighted average maturity     6.7 yrs.  
Average coupon     7.53 %  
Net assets (mm)   $ 121.7    
Number of holdings     180    
Portfolio composition1    01/31/08  
Long-term debt securities     96.0 %  
Forward foreign currency contracts     0.0 2   
Cash equivalents and other assets less liabilities     4.0    
Total     100.0 %  
Quality diversification1    01/31/08  
BB & higher     44.6 %  
B     45.0    
CCC & lower     5.9    
Not rated     0.5    
Cash equivalents and other assets less liabilities     4.0    
Total     100.0 %  
Asset allocation1    01/31/08  
Corporate bonds     96.0 %  
Forward foreign currency contracts     0.0 2   
Cash equivalents and other assets less liabilities     4.0    
Total     100.0 %  

 

1  Weightings represent percentages of the Portfolio's net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time. Credit quality ratings shown are based on the ratings assigned to portfolio holdings by Standard & Poor's Ratings Group, an independent rating agency.

2  Weighting represents less than 0.05% of net assets as of Janaury 31, 2008.


77


UBS PACE Select Advisors Trust

UBS PACE High Yield Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Corporate bonds—96.04%  
Aerospace & defense—3.04%  
Alliant Techsystems, Inc.
6.750%, due 04/01/16		   $ 1,475,000     $ 1,423,375    
DRS Technologies, Inc.
6.875%, due 11/01/132 		     1,170,000       1,146,600    
Hexcel Corp.
6.750%, due 02/01/15		     1,180,000       1,138,700    
      3,708,675    
Airlines—0.50%  
American Airlines, Inc.,
Series 2001-1, Class B
7.377%, due 05/23/19		     492,152       445,398    
Continental Airlines, Inc.
7.033%, due 06/15/11		     165,233       156,972    
      602,370    
Apparel/textiles—0.58%  
Phillips Van Heusen
7.250%, due 02/15/11		     55,000       55,138    
8.125%, due 05/01/13     635,000       647,700    
      702,838    
Auto & truck—4.59%  
Allison Transmission, Inc.
11.000%, due 11/01/153 		     205,000       172,200    
11.250%, due 11/01/153      100,000       81,000    
Ford Motor Co.
7.450%, due 07/16/31		     3,330,000       2,455,875    
General Motors
8.375%, due 07/05/33		   EUR 400,000       441,550    
8.375%, due 07/15/332      2,990,000       2,429,375    
      5,580,000    
Beverages—1.63%  
Constellation Brands, Inc.
7.250%, due 09/01/16		     740,000       706,700    
7.250%, due 05/15/17     335,000       318,250    
8.375%, due 12/15/14     300,000       309,000    
Constellation Brands, Inc.,
Series B
8.125%, due 01/15/12		     650,000       651,625    
      1,985,575    
Building & construction—0.49%  
K. Hovnanian Enterprises
6.500%, due 01/15/14		     450,000       308,250    
7.750%, due 05/15/132      80,000       39,200    
Standard Pacific Corp.
9.250%, due 04/15/122 		     270,000       131,625    
William Lyon Homes, Inc.
10.750%, due 04/01/13		     200,000       113,000    
      592,075    
Building materials—0.74%  
Interface, Inc.
10.375%, due 02/01/10		     880,000       906,400    

 

    Face
amount1 		   Value  
Corporate bonds—(continued)  
Building products—1.00%  
Ainsworth Lumber
6.750%, due 03/15/142 		   $ 595,000     $ 368,900    
Nortek, Inc.
8.500%, due 09/01/14		     455,000       354,900    
US Concrete, Inc.
8.375%, due 04/01/14		     595,000       493,850    
      1,217,650    
Building products-cement—0.61%  
Texas Industries, Inc.
7.250%, due 07/15/13		     767,000       736,320    
Cable—3.61%  
CCH I Holdings LLC
9.920%, due 04/01/142 		     670,000       338,350    
Central Euro Media Enterprises
8.250%, due 05/15/12		   EUR 100,000       144,210    
Charter Communications
Operating LLC
8.000%, due 04/30/123 		     180,000       171,000    
8.375%, due 04/30/143      1,865,000       1,767,087    
DIRECTV Holdings Finance
8.375%, due 03/15/13		     895,000       925,206    
EchoStar DBS Corp.
6.375%, due 10/01/11		     975,000       960,375    
NTL Cable PLC
9.750%, due 04/15/14		   GBP 50,000       86,502    
      4,392,730    
Car rental—1.33%  
Avis Budget Car Rental.
7.625%, due 05/15/14		     495,000       455,400    
Europcar Groupe SA
8.075%, due 05/15/134 		   EUR 300,000       341,197    
Hertz Corp.
8.875%, due 01/01/14		     850,000       820,250    
      1,616,847    
Chemicals—6.16%  
Chemtura Corp.
6.875%, due 06/01/16		     545,000       495,950    
Degussa AG
5.125%, due 12/10/13		   EUR 135,000       192,897    
Hexion US Finance
Corp./Nova Scotia
9.750%, due 11/15/14		     425,000       457,937    
Huntsman International LLC
6.875%, due 11/15/13		   EUR 150,000       210,740    
Huntsman LLC
11.500%, due 07/15/12		     1,310,000       1,388,600    
11.625%, due 10/15/10     100,000       105,000    
Innophos, Inc.
8.875%, due 08/15/14		     560,000       550,200    
Invista
9.250%, due 05/01/123 		     675,000       686,812    

 


78


UBS PACE Select Advisors Trust

UBS PACE High Yield Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Corporate bonds—(continued)  
Chemicals—(concluded)  
Koppers Holdings, Inc.
9.875%, due 11/15/145 		   $ 410,000     $ 346,450    
Koppers, Inc.
9.875%, due 10/15/13		     575,000       612,375    
Mosaic Co.
7.375%, due 12/01/143 		     605,000       653,400    
7.625%, due 12/01/163      380,000       410,400    
Nalco Co.
7.750%, due 11/15/11		     950,000       950,000    
9.000%, due 11/15/13   EUR 150,000       214,085    
Rockwood Specialties Group
7.625%, due 11/15/14		   EUR 50,000       64,671    
SGL Carbon Luxembourg SA
8.500%, due 02/01/12		   EUR 100,000       155,732    
      7,495,249    
Commercial services—3.59%  
Aramark Corp.
8.500%, due 02/01/152 		     1,020,000       1,014,900    
Ashtead Holdings PLC
8.625%, due 08/01/153 		     490,000       401,800    
Corrections Corp. of America
6.250%, due 03/15/13		     430,000       427,850    
6.750%, due 01/31/14     490,000       494,900    
Iron Mountain, Inc.
6.750%, due 10/15/18		   EUR 125,000       176,546    
7.750%, due 01/15/15     1,385,000       1,409,237    
United Rentals North
America, Inc.
6.500%, due 02/15/12		     480,000       441,600    
      4,366,833    
Communications equipment—2.39%  
American Tower Corp.
7.000%, due 10/15/173 		     530,000       524,700    
7.125%, due 10/15/12     1,980,000       2,034,450    
7.500%, due 05/01/12     345,000       354,487    
      2,913,637    
Computer software & services—1.10%  
Sungard Data Systems, Inc.
9.125%, due 08/15/13		     995,000       1,009,925    
10.250%, due 08/15/15     330,000       330,000    
      1,339,925    
Containers & packaging—3.64%  
Ball Corp.
6.625%, due 03/15/18		     270,000       265,950    
6.875%, due 12/15/12     1,185,000       1,193,887    
Crown Americas
7.625%, due 11/15/13		     1,115,000       1,123,363    
7.750%, due 11/15/15     240,000       244,200    
Crown Euro Holdings SA
6.250%, due 09/01/11		   EUR 50,000       70,061    

 

    Face
amount1 		   Value  
Corporate bonds—(continued)  
Containers & packaging—(concluded)  
Owens-Brockway Glass
Container, Inc.
6.750%, due 12/01/14		   $ 1,160,000     $ 1,151,300    
6.750%, due 12/01/14   EUR 300,000       385,798    
      4,434,559    
Diversified operations—0.76%  
SPX Corp.
7.625%, due 12/15/143 		     575,000       589,375    
Stena AB
5.875%, due 02/01/19		   EUR 300,000       335,622    
      924,997    
Electric utilities—2.56%  
Dynegy Holdings, Inc.
8.750%, due 02/15/12		     810,000       818,100    
Edison Mission Energy
7.500%, due 06/15/13		     1,175,000       1,201,437    
NRG Energy, Inc.
7.250%, due 02/01/14		     1,130,000       1,100,338    
      3,119,875    
Electric-generation—0.24%  
Intergen NV
8.500%, due 06/30/17		   EUR 205,000       288,011    
Electronics—1.80%  
Itron, Inc.
7.750%, due 05/15/12		     800,000       772,000    
L-3 Communications Corp.,
Series B
6.375%, due 10/15/15		     1,365,000       1,354,763    
UCAR Finance, Inc.
10.250%, due 02/15/12		     56,000       57,960    
      2,184,723    
Energy—2.93%  
Alpha Natural Resources
10.000%, due 06/01/12		     675,000       693,563    
Arch Western Finance
6.750%, due 07/01/13		     1,190,000       1,151,325    
Foundation PA Coal Co.
7.250%, due 08/01/14		     880,000       866,800    
Massey Energy Co.
6.875%, due 12/15/13		     895,000       852,487    
      3,564,175    
Finance-captive automotive—0.69%  
Ford Motor Credit Co.
7.000%, due 10/01/13		     995,000       834,128    
Finance-other—1.69%  
American Real Estate
Partners Finance
7.125%, due 02/15/13		     765,000       709,538    

 


79


UBS PACE Select Advisors Trust

UBS PACE High Yield Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Corporate bonds—(continued)  
Finance-other—(concluded)  
KAR Holdings, Inc.
10.000%, due 05/01/152,3 		   $ 640,000     $ 534,400    
Residential Capital LLC
7.328%, due 04/17/093,4 		     1,685,000       817,225    
      2,061,163    
Financial services—0.25%  
Bear Stearns Cos., Inc.
7.000%, due 02/02/173,6 		     320,000       303,744    
Food—0.68%  
Smithfield Foods, Inc.
7.000%, due 08/01/11		     850,000       828,750    
Gaming—7.79%  
American Casino & Entertainment
Properties LLC
7.850%, due 02/01/12		     335,000       348,651    
Harrah's Operating Co., Inc.
5.498%, due 02/08/083,4 		     615,000       615,105    
6.500%, due 06/01/16     465,000       297,600    
10.750%, due 02/01/163      1,790,000       1,624,425    
Isle of Capri Casinos
7.000%, due 03/01/14		     300,000       231,000    
Mandalay Resort Group
6.375%, due 12/15/11		     790,000       774,200    
9.375%, due 02/15/10     645,000       665,156    
MGM Mirage, Inc.
6.000%, due 10/01/09		     715,000       711,425    
7.500%, due 06/01/162      430,000       412,800    
Mohegan Tribal Gaming
6.125%, due 02/15/13		     1,070,000       1,003,125    
Pinnacle Entertainment, Inc.
7.500%, due 06/15/153 		     610,000       484,950    
River Rock Entertainment
9.750%, due 11/01/11		     505,000       520,150    
Station Casinos
6.000%, due 04/01/12		     635,000       554,038    
Wynn Las Vegas LLC Corp.
6.625%, due 12/01/14		     1,280,000       1,233,600    
      9,476,225    
Health care providers & services—1.91%  
HCA, Inc.
6.500%, due 02/15/16		     2,675,000       2,270,407    
9.250%, due 11/15/16     55,000       57,681    
      2,328,088    
Hotels, restaurants & leisure—0.30%  
TUI AG
5.125%, due 12/10/12		   EUR 300,000       370,857    
Industrial products & services—2.06%  
Allied Waste North America, Inc.
6.875%, due 06/01/17		     550,000       533,500    
7.875%, due 04/15/13     315,000       318,937    

 

    Face
amount1 		   Value  
Corporate bonds—(continued)  
Industrial products & services—(concluded)  
Allied Waste North America,
Series B
5.750%, due 02/15/11		   $ 1,720,000     $ 1,659,800    
      2,512,237    
Machinery—1.18%  
Terex Corp.
7.375%, due 01/15/14		     1,455,000       1,436,813    
Machinery-agriculture & construction—1.31%  
Case Corp.
7.250%, due 01/15/16		     450,000       450,000    
Case New Holland, Inc.
6.000%, due 06/01/09		     1,140,000       1,137,150    
      1,587,150    
Manufacturing-diversified—1.64%  
American Railcar Industries, Inc.
7.500%, due 03/01/14		     1,000,000       900,000    
Bombardier, Inc.
7.250%, due 11/15/16		   EUR 250,000       354,949    
RBS Global & Rexnord Corp.
9.500%, due 08/01/14		     825,000       744,563    
      1,999,512    
Media—1.58%  
Idearc, Inc.
8.000%, due 11/15/16		     345,000       308,775    
Lamar Media Corp.
6.625%, due 08/15/15		     430,000       407,425    
7.250%, due 01/01/13     890,000       878,875    
Series C,
6.625%, due 08/15/15		     105,000       99,488    
Lighthouse International Co. SA
8.000%, due 04/30/14		   EUR 160,000       226,870    
      1,921,433    
Medical products—1.61%  
Bausch & Lomb, Inc.
9.875%, due 11/01/152,3 		     870,000       883,050    
FMC Finance III SA
6.875%, due 07/15/173 		     920,000       920,000    
Fresenius Medical Capital Trust IV
7.375%, due 06/15/11		   EUR 100,000       151,643    
      1,954,693    
Metals—3.87%  
California Steel Industries
6.125%, due 03/15/14		     1,115,000       947,750    
Century Aluminum Co.
7.500%, due 08/15/14		     1,045,000       992,750    
Freeport-McMoRan Copper &
Gold, Inc.
8.250%, due 04/01/15		     700,000       734,125    
8.375%, due 04/01/17     535,000       568,439    
Novelis, Inc.
7.250%, due 02/15/15		     1,235,000       1,139,287    

 


80


UBS PACE Select Advisors Trust

UBS PACE High Yield Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Corporate bonds—(continued)  
Metals—(concluded)  
RathGibson, Inc.
11.250%, due 02/15/14		   $ 335,000     $ 329,975    
      4,712,326    
Oil & gas—12.73%  
Chesapeake Energy Corp.
6.250%, due 01/15/17		   EUR 100,000       136,776    
6.375%, due 06/15/15     1,865,000       1,809,050    
7.500%, due 09/15/13     595,000       608,387    
7.500%, due 06/15/14     220,000       224,400    
Compton Petroleum
Finance Corp.
7.625%, due 12/01/13		     690,000       638,250    
Delta Petroleum Corp.
7.000%, due 04/01/15		     1,060,000       906,300    
Denbury Resources, Inc.
7.500%, due 12/15/15		     955,000       955,000    
El Paso Corp.
6.875%, due 06/15/14		     1,290,000       1,285,857    
Forest Oil Corp.
8.000%, due 12/15/11		     1,030,000       1,068,625    
Hilcorp Energy Co.
9.000%, due 06/01/163 		     540,000       540,000    
Inergy LP
6.875%, due 12/15/14		     1,350,000       1,306,125    
Markwest Energy Partners
8.500%, due 07/15/16		     570,000       572,850    
Pacific Energy Partners
6.250%, due 09/15/15		     65,000       66,369    
Range Resources Corp.
7.375%, due 07/15/13		     760,000       769,500    
Regency Energy Partners
8.375%, due 12/15/13		     828,000       840,420    
SemGroup LP
8.750%, due 11/15/153 		     520,000       486,200    
Southwestern Energy Co.
7.500%, due 02/01/183 		     80,000       82,200    
Swift Energy Co.
7.625%, due 07/15/11		     585,000       576,225    
Targa Resources, Inc.
8.500%, due 11/01/13		     515,000       485,388    
Tenaska Alabama Partners
7.000%, due 06/30/213 		     254,187       247,607    
Williams Cos., Inc.
7.125%, due 09/01/11		     55,000       58,575    
8.125%, due 03/15/12     795,000       868,537    
Williams Partners LP
7.500%, due 06/15/11		     890,000       952,300    
      15,484,941    
Oil equipment—0.05%  
Grant Prideco, Inc.
6.125%, due 08/15/15		     60,000       61,350    

 

    Face
amount1 		   Value  
Corporate bonds—(continued)  
Oil refining—3.05%  
Frontier Oil Corp.
6.625%, due 10/01/11		   $ 1,345,000     $ 1,324,825    
Petroplus Finance Ltd.
6.750%, due 05/01/143 		     555,000       507,825    
7.000%, due 05/01/173      445,000       403,837    
Tesoro Corp.
6.250%, due 11/01/12		     1,325,000       1,318,375    
6.500%, due 06/01/17     160,000       156,000    
      3,710,862    
Oil services—2.73%  
Basic Energy Services
7.125%, due 04/15/16		     750,000       705,000    
CIE Generale de Geophysique
7.500%, due 05/15/15		     1,125,000       1,108,125    
Helix Energy Solutions
9.500%, due 01/15/163 		     385,000       390,775    
Hornbeck Offshore Services,
Series B
6.125%, due 12/01/14		     1,205,000       1,120,650    
      3,324,550    
Paper & forest products—1.10%  
Georgia-Pacific Corp.
8.125%, due 05/15/11		     1,335,000       1,335,000    
Real estate investment trust—0.63%  
Ventas Realty LP Capital Corp.
6.750%, due 06/01/10		     750,000       763,125    
Recycling—0.45%  
Aleris International, Inc.
9.000%, due 12/15/14		     695,000       542,100    
Retail—0.69%  
Neiman Marcus Group, Inc.
9.000%, due 10/15/15		     840,000       840,000    
Steel—0.55%  
Mueller Water Products
7.375%, due 06/01/17		     790,000       671,500    
Telecommunication services—3.07%  
MetroPCS Wireless, Inc.
9.250%, due 11/01/14		     430,000       395,600    
Nordic Telephone Co. Holdings
10.107%, due 05/01/164 		   EUR 150,000       218,545    
Qwest Communications
International
7.250%, due 02/15/11		     150,000       148,500    
Qwest Corp.
6.500%, due 06/01/17		     550,000       517,000    
8.875%, due 03/15/12     585,000       617,906    
Rogers Wireless, Inc.
6.375%, due 03/01/14		     215,000       224,184    
8.000%, due 12/15/12     1,165,000       1,206,975    
Softbank Corp.
7.750%, due 10/15/13		   EUR 300,000       403,639    
      3,732,349    

 


81


UBS PACE Select Advisors Trust

UBS PACE High Yield Investments

Portfolio of investments—January 31, 2008 (unaudited)

    Face
amount1 		   Value  
Corporate bonds—(concluded)  
Transportation services—1.14%  
Bristow Group, Inc.
6.125%, due 06/15/13		   $ 847,000     $ 815,237    
PHI, Inc.
7.125%, due 04/15/13		     600,000       570,750    
      1,385,987    
Total corporate bonds
(cost—$121,890,260)		           116,852,347    
Repurchase agreement—6.17%  
Repurchase agreement dated
01/31/08 with State Street
Bank & Trust Co., 1.400%,
due 02/01/08 collateralized by
$875,872 US Treasury Bills, zero
coupon due 05/01/08, $550,996
US Treasury Bonds, 8.125%
due 12/31/08 and $5,675,900
US Treasury Notes, 4.750%
due 12/31/08 to 1/31/12;
(value—$7,651,056);
proceeds: $7,501,292
(cost—$7,501,000)		     7,501,000       7,501,000    

 

    Number of
shares		   Value  
Investments of cash collateral from securities loaned—5.18%  
Money market funds7—5.18%  
DWS Money Market Series
4.201%		     12,155     $ 12,155    
UBS Private Money Market
Fund LLC8
3.940%		     6,293,201       6,293,201    
Total money market funds and
investments of cash collateral
from securities loaned
(cost—$6,305,356)		       6,305,356    
Total investments—107.39%
(cost—$135,696,616)		       130,658,703    
Liabilities in excess of other
assets—(7.39)%		       (8,992,851 )  
Net assets—100.00%   $ 121,665,852    

 

1  In US Dollars unless otherwise indicated.

2  Security, or portion thereof, was on loan at January 31, 2008.

3  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 11.75% of net assets as of January 31, 2008, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

4  Floating rate security. The interest rate shown is the current rate as of January 31, 2008.

5  Denotes a step-up bond that converts to the noted fixed rate at a designated future date.

6  Variable rate security. The interest rate shown is the current rate as of January 31, 2008, and resets periodically.

7  Rates shown reflect yield at January 31, 2008.

8  The table below details the Portfolio's transaction activity in an affiliated issuer during the six months ended January 31, 2008.

Security description   Value at
07/31/07		   Purchases
during the
six months
ended
01/31/08		   Sales
during the
six months
ended
01/31/08		   Value at
01/31/08		   Net income
earned from
affiliate for
the six months
ended
01/31/08		  
UBS Private Money Market Fund LLC   $ 755,048     $ 18,062,131     $ 12,523,978     $ 6,293,201     $ 10,364    

 

EUR  Euro

GBP  Great Britain Pound


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UBS PACE Select Advisors Trust

UBS PACE High Yield Investments

Portfolio of investments—January 31, 2008 (unaudited)

Forward foreign currency contracts

    Contracts to
deliver		   In
exchange for		   Maturity
date		   Unrealized
depreciation		  
Euro     3,250,000     USD 4,798,723       02/28/08     $ (29,535 )  

 

Currency type abbreviation:

USD  US Dollar

Issuer breakdown by country of origin

    Percentage of
total investments		  
United States     92.2 %  
Canada     3.0    
France     1.2    
Luxembourg     1.0    
Bermuda     0.8    
Germany     0.4    
United Kingdom     0.4    
Japan     0.3    
Sweden     0.3    
Netherlands     0.2    
Denmark     0.2    
Total     100.0 %  

 

See accompanying notes to financial statements.
83



UBS PACE Select Advisors Trust

UBS PACE Large Co Value Equity Investments

Performance

For the six months ended January 31, 2008, the Portfolio's Class P shares declined 4.53% (before the deduction of the maximum UBS PACE Select program fee, and declined 5.25% after the deduction of the maximum UBS PACE Select program fee for the six month period). In comparison, the Russell 1000 Value Index (the "benchmark") declined 5.42%, and the median return of the Lipper Large-Cap Value Funds category posted a decline of 5.40%. (Returns for all share classes over various time periods are shown in the "Performance at a Glance" table on page 87. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.)

Market review

Economic growth began to slow during the reporting period as the subprime mortgage problems and related troubles in the housing market spread to other sectors of the credit market. While the Federal Reserve Board (the "Fed") responded with reductions in the federal funds rate, during the period there were declines in both the broad market and the Portfolio's benchmark, the Russell 1000 Value Index, as well. (The federal funds rate, or "fed funds" rate, is the rate that banks charge one another for funds they borrow on an overnight basis.)

Advisors' comments
SSgA

During the reporting period, our portion of the Portfolio generated a negative absolute return, in line with the return of the Portfolio's benchmark. Our investment process, which incorporates perspectives on valuation, quality and sentiment, offered mixed performance for this time period.

Stock selection drove our performance results, with stock selection within five of 10 economic sectors in the benchmark enhancing results. In particular, our holdings in the financials, materials, telecom and industrials sectors were beneficial to performance. Within financials, a combination of avoiding stocks with exposure to the mortgage market such as Fannie Mae (Federal National Mortgage Association) (-42% versus the benchmark) while being overweight in Aon Corp., (+9% versus the benchmark) boosted our relative results. At the stock level, an overweight position in Apple, Inc., which was

UBS PACE Select Advisors Trust – UBS PACE Large Co Value Equity Investments

Investment Advisors:

SSgA Funds Management, Inc. ("SSgA"), Institutional Capital LLC ("ICAP") and Westwood Management Corp. ("Westwood")

Portfolio Managers:

SSgA: James M. Johnson and Team;

ICAP: Team;

Westwood: Susan M. Byrne

Objective:

Capital appreciation and dividend income

Investment process:

SSgA uses several quantitative measures to identify investment opportunities within a large-cap value universe and combines factors to produce an overall rank. Comprehensive research is used to seek the optimal weighting of these perspectives to arrive at strategies that vary by industry. SSgA constructs the portion of the Portfolio it advises by selecting its highest-ranked stocks from the investable universe, and manages deviations from the benchmark to maximize the risk/reward trade-off. The resulting segment has characteristics similar to the Russell 1000 Value Index. SSgA generally sells stocks that no longer meet its selection criteria or that it believes otherwise may adversely affect performance relative to the benchmark.

ICAP uses its proprietary valuation model to identify large capitalization companies that it believes offer the best relative values because they sell below the price-to-earnings ratio warranted by their prospects. ICAP looks for companies where there is a catalyst for positive change with potential to produce stock appreciation of 15% or more relative to the market over a 12- to 18-month period.

(continued on next page)


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UBS PACE Select Advisors Trust

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Advisors' comments – continued

sold late in the period, was the single largest positive contributor to performance. Shares of Apple climbed 44% during the period as the company reported fiscal fourth quarter profits that jumped 67%.

Stock picking among energy, utilities and healthcare stocks detracted from performance. Within energy, an overweight position in Western Refining, Inc.1 hindered our results as its shares declined 31% over the period. In addition, an overweight position in King Pharmaceuticals,1 Inc. fell 31% for the period. This weakness occurred as the company lost a court ruling that may open the door to generic competition in the US for its biggest product, blood pressure medicine Altace.

ICAP

While our portion of the Portfolio posted a negative return during the reporting period, it outperformed the Portfolio's benchmark on a relative basis. All of the outperformance was due to positive stock selection, specifically in the consumer staples, energy, information technology and telecommunications sectors. Our sector weightings, however, had a slightly negative effect on performance compared to the weightings of the benchmark.

This was primarily due to our overweighting in information technology and underweighting in energy and utilities. However, our underweight position in the financials sector positively contributed to overall performance. On a total return basis, the best performing sector during the reporting period was energy, and the worst performing sector was consumer discretionary.

The top-performing stocks for the period, based on portfolio contribution, were Occidental Petroleum Corp., Hess Corporation, JPMorgan Chase & Co., Coca-Cola Co., and Rio Tinto. The worst performing stocks, based on portfolio contribution, were Morgan Stanley, Citigroup, Inc., Wyeth, Schering-Plough Corp., and Cisco Systems, Inc. We sold Hess and Rio Tinto when they reached what we considered to be their target price. We also sold the Portfolio's holdings in Morgan Stanley and Citigroup, Inc.2 during the period.

Due to the changes in the economy, the slowdown in gross domestic product ("GDP") growth and the decline in the stock market itself, we initiated several changes in our portion of the Portfolio in an effort to reduce risk. In particular, beginning in the third quarter of 2007, we increased our holdings in the healthcare sector and reduced our holdings in the financials and materials sectors.

Investment process (concluded)

ICAP also uses internally generated research to evaluate the financial condition and business prospects of every company it considers. ICAP monitors each stock purchased and sells the stock when its target price is achieved, the catalyst becomes inoperative, or ICAP identifies another stock with greater opportunity for appreciation.

Westwood utilizes a value style of investing in which it choose commons stocks it believes are currently undervalued. Other key metrics it considers are return on equity, debt/equity ratio and, in the case of common equities, positive earnings surprises without a corresponding increase in Wall Street estimates.

Westwood has disciplines in place that serve as sell signals, such as a security reaching a pre-determined price target or a change to a company's fundamentals that negatively impacts the original investment thesis.

1  Not held by the Portfolio as of January 31, 2008.

2  Not held within this Advisor's portion of the Portfolio as of January 31, 2008.


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Advisors' comments – concluded

We ended the reporting period with a significant underweight in financials relative to the benchmark. While we still have holdings in this sector, we are emphasizing companies with strong risk management and relatively low subprime exposure. We will continue to seek to take advantage of individual financial opportunities created by the recent turmoil in financials.

Westwood

Our exposure to high-quality securities with strong fundamentals allowed us to outperform the Portfolio's benchmark during the reporting period. Strong security selection within the financial services sector was the primary contributor to relative performance. The best-performing securities in the sector included MasterCard, Inc. and Bank of New York Mellon Corp. Both companies reported good earnings and increasing market share over the period. Relative performance in the sector also benefited from an underweight to companies that have been negatively impacted by exposure to the credit crisis.

Within the technology sector, MEMC Electronics Materials Inc. benefited from the prospect of additional government subsidies to users, which could increase demand for their products. Our exposure to energy stock Murphy Oil Corp. benefited from the rise in the price of crude oil, reaching nearly $100 a barrel. Other holdings, such as Altria Group, Inc. and Colgate-Palmolive Co., benefited from investors' flight to securities considered to be "safe havens."

Our holdings in the materials & processing, producer durables and healthcare sectors were the primary detractors from relative performance. Among our worst-performing stocks was Allegheny Technologies, Inc. which was impacted by fears of weak metal prices and slowing demand. Technology company Cisco Systems, Inc., management services firm Accenture Ltd., consumer discretionary holding Macy's,1 and financial services stock American Express Co. all fell as investors feared the US credit crisis would lead to a global slowdown in overall demand and a US recession.

1  Not held by the Portfolio as of January 31, 2008.

Special considerations

The Portfolio may be appropriate for long-term investors seeking capital appreciation who are able to withstand short-term fluctuations in the equity markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.


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UBS PACE Select Advisors Trust

UBS PACE Large Co Value Equity Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 01/31/08       6 months   1 year   5 years   10 years   Since
inception1 		  
Before deducting   Class A2      -4.62 %     -2.40 %     13.42 %     N/A       6.29 %  
maximum sales charge   Class B3      -5.16 %     -3.35 %     12.44 %     N/A       5.58 %  
or UBS PACE Select   Class C4      -5.03 %     -3.17 %     12.53 %     N/A       5.48 %  
program fee   Class Y5      -4.53 %     -2.14 %     13.82 %     N/A       6.41 %  
    Class P6      -4.53 %     -2.18 %     13.72 %     5.61 %     9.33 %  
After deducting   Class A2      -9.85 %     -7.75 %     12.15 %     N/A       5.45 %  
maximum sales charge   Class B3      -9.36 %     -7.63 %     12.19 %     N/A       5.58 %  
or UBS PACE Select   Class C4      -5.87 %     -4.02 %     12.53 %     N/A       5.48 %  
program fee   Class P6      -5.25 %     -3.63 %     12.02 %     4.04 %     7.70 %  
Russell 1000 Value Index       -5.42 %     -5.38 %     14.26 %     7.40 %     11.01 %  
Lipper Large-Cap Value Funds median         -5.40 %     -4.04 %     12.44 %     5.72 %     9.08 %  

 

Average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: Class A—1-year period, -1.35%; 5-year period, 13.07%; since inception, 6.35%; Class B—1-year period, -1.11%; 5-year period, 13.13%; since inception, 6.48%; Class C—1-year period, 2.61%; 5-year period, 13.44%; since inception, 6.39%; Class Y—1-year period, 4.75%; 5-year period, 14.74%; since inception, 7.36%; Class P—1-year period, 3.07%; 5-year period, 12.92%; 10-year period, 4.70%; since inception, 8.25%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 30, 2007 prospectuses were as follows: Class A—1.21% and 1.08%; Class B—2.11% and 1.98%; Class C—2.00% and 1.87%; Class Y—0.88% and 0.75%; and Class P—0.96% and 0.83%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The portfolio and UBS Global AM have entered into a written fee waiver agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees through November 30, 2008 to the extent necessary to reflect the lower overall fees paid to the portfolio's investment advisor as a result of the lower sub-advisory fee paid by UBS Global AM to SSgA FM. The portfolio and UBS Global AM have also entered into an additional continuing fee waiver agreement pursuant to which UBS Global AM has agreed to reduce its management fee based on the fund's average daily net assets to the following rate: $0 to $250 million—0.60%; in excess of $250 million up to $500 million—0.57%; in excess of $500 million up to $1 billion—0.53%; and over $1 billion—0.50%.

1  Since inception returns are calculated as of commencement of issuance on August 24, 1995 for Class P shares, November 27, 2000 for Class A, B, and C shares and January 19, 2001 for Class Y shares. Since inception returns for the Index and Lipper median are shown as of August 31, 1995, which is the month-end after the inception date of the oldest share class (Class P).

2  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

3  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

4  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

5  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

6  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual UBS PACE Select program fee of 1.5% of the value of Class P shares.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

The Russell 1000 Value Index measures the performance of a large universe of stocks with lower price-to-book ratios and lower forecasted growth rates.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for the period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.


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Portfolio statistics (unaudited)

Characteristics   01/31/08  
Net assets (bn)   $ 1.6    
Number of holdings     135    
Portfolio composition1    01/31/08  
Common stocks, tracking stocks     95.0 %  
ADRs     3.4    
Cash equivalents and other assets less liabilities     1.6    
Total     100.0 %  
Top five sectors1    01/31/08  
Financials     24.1 %  
Energy     14.4    
Industrials     13.7    
Health care     9.3    
Information technology     8.5    
Total     70.0 %  
Top ten equity holdings1    01/31/08  
Exxon Mobil     3.7 %  
General Electric     3.6    
JPMorgan Chase     3.4    
AT&T     3.2    
Bank of America     3.0    
Pfizer     2.5    
ConocoPhillips     2.4    
ChevronTexaco     1.8    
Bank of New York Mellon     1.7    
American International Group     1.6    
Total     26.9 %  

 

1  Weightings represent percentages of the Portfolio's net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time.

ADR  American Depositary Receipt


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UBS PACE Select Advisors Trust

UBS PACE Large Co Value Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—98.23%
Security description		   Number of
shares		   Value  
Aerospace & defense—2.25%  
L-3 Communications
Holdings, Inc.		     102,647     $ 11,376,367    
Northrop Grumman Corp.     184,700       14,657,792    
United Technologies Corp.     149,398       10,967,307    
      37,001,466    
Airlines—0.18%  
UAL Corp.1      78,900       2,994,255    
Banks—7.88%  
Bank of America Corp.1      1,122,400       49,778,440    
Bank of New York Mellon Corp.     593,300       27,665,579    
Comerica, Inc.1      260,500       11,363,010    
Northern Trust Corp.     31,979       2,345,979    
PNC Financial Services
Group, Inc.		     117,200       7,690,664    
UnionBanCal Corp.     160,252       7,861,963    
Wells Fargo & Co.     678,750       23,084,288    
      129,789,923    
Beverages—1.12%  
Coca-Cola Co.     116,200       6,875,554    
Constellation Brands, Inc.,
Class A*		     383,851       8,022,486    
Pepsi Bottling Group, Inc.     102,347       3,566,793    
      18,464,833    
Building products—0.48%  
Masco Corp.     344,600       7,901,678    
Chemicals—1.56%  
Celanese Corp.     94,890       3,528,010    
E.I. du Pont de Nemours
and Co.		     430,400       19,445,472    
OM Group, Inc.*     47,358       2,717,402    
      25,690,884    
Commercial services & supplies—1.52%  
Apollo Group, Inc., Class A*     91,300       7,280,262    
Deluxe Corp.     294,239       7,155,892    
ITT Educational Services, Inc.*     49,600       4,530,960    
MasterCard, Inc., Class A1      29,100       6,023,700    
      24,990,814    
Communications equipment—1.60%  
Cisco Systems, Inc.*     1,076,500       26,374,250    
Computers & peripherals—1.70%  
Hewlett-Packard Co.     175,950       7,697,813    
International Business
Machines Corp.1 		     110,150       11,823,501    
Seagate Technology     416,400       8,440,428    
      27,961,742    

 

Security description   Number of
shares		   Value  
Construction & engineering—1.31%  
McDermott International, Inc.*     227,500     $ 10,733,450    
Perini Corp.*     91,552       3,199,742    
Shaw Group, Inc.1,*     134,800       7,616,200    
      21,549,392    
Diversified financials—6.76%  
American Express Co.     245,200       12,093,264    
Capital One Financial Corp.1      202,600       11,104,506    
Citigroup, Inc.1      496,976       14,024,663    
Franklin Resources, Inc.     40,900       4,263,007    
JPMorgan Chase & Co.1      1,179,389       56,079,947    
Lazard Ltd., Class A     136,300       5,386,576    
Raymond James Financial, Inc.     295,391       8,297,533    
      111,249,496    
Diversified telecommunication services—4.36%  
AT&T, Inc.1      1,389,959       53,499,522    
Verizon Communications, Inc.     472,001       18,332,519    
      71,832,041    
Electrical equipment—0.95%  
Thomas & Betts Corp.*     167,293       7,570,008    
Tyco Electronics Ltd.     238,000       8,046,780    
      15,616,788    
Electric utilities—3.09%  
Dominion Resources, Inc.     416,474       17,908,382    
Edison International     158,400       8,262,144    
Exelon Corp.1      128,700       9,805,653    
Mirant Corp.*     134,913       4,970,195    
PG&E Corp.     242,100       9,935,784    
      50,882,158    
Energy equipment & services—0.97%  
Baker Hughes, Inc.     154,600       10,038,178    
Dresser-Rand Group, Inc.*     186,100       5,899,370    
      15,937,548    
Food & drug retailing—2.08%  
Casey's General Stores, Inc.     32,821       832,893    
CVS Corp.     572,850       22,381,249    
Terra Industries, Inc.1,*     244,700       11,028,629    
      34,242,771    
Food products—0.41%  
Fresh Del Monte Produce, Inc.*     53,876       1,726,187    
General Mills, Inc.     92,800       5,067,808    
      6,793,995    
Gas utilities—0.89%  
Energen Corp.     163,738       10,299,120    
Sempra Energy1      78,779       4,403,746    
      14,702,866    

 


89


UBS PACE Select Advisors Trust

UBS PACE Large Co Value Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number of
shares		   Value  
Health care providers & services—1.96%  
Aetna, Inc.     184,200     $ 9,810,492    
AMERIGROUP Corp.*     60,300       2,219,031    
Humana, Inc.*     118,259       9,496,198    
McKesson Corp.     170,561       10,709,525    
      32,235,246    
Hotels, restaurants & leisure—1.49%  
InterContinental Hotels
Group PLC, ADR		     383,089       5,941,711    
McDonald's Corp.1      346,202       18,539,117    
      24,480,828    
Household durables—1.18%  
NVR, Inc.1,*     11,149       7,040,594    
Tupperware Brands Corp.     335,092       12,398,404    
      19,438,998    
Household products—2.04%  
Colgate-Palmolive Co.     130,300       10,033,100    
Procter & Gamble Co.     357,862       23,600,999    
      33,634,099    
Industrial conglomerates—5.49%  
General Electric Co.1      1,685,312       59,676,898    
Reynolds American, Inc.     89,540       5,670,568    
Siemens AG, ADR     23,250       3,017,850    
Textron, Inc.     302,750       16,969,138    
Tyco International Ltd.     129,700       5,104,992    
      90,439,446    
Insurance—8.80%  
ACE Ltd.     411,550       24,009,827    
Allied World Assurance Co.
Holdings Ltd.		     49,713       2,367,830    
American International
Group, Inc.		     486,050       26,810,518    
Aon Corp.     292,700       12,738,304    
Arch Capital Group Ltd.*     170,016       11,979,327    
Axis Capital Holdings Ltd.     234,282       9,380,651    
Chubb Corp.1      191,000       9,891,890    
Endurance Specialty
Holdings Ltd.1 		     180,055       7,295,829    
Hartford Financial Services
Group, Inc.		     122,100       9,862,017    
PartnerRe Ltd.     158,703       12,581,974    
RenaissanceRe Holdings Ltd.     215,900       12,304,141    
XL Capital Ltd., Class A1      126,400       5,688,000    
      144,910,308    
Internet software & services—1.24%  
Automatic Data Processing, Inc.     250,500       10,162,785    
eBay, Inc.*     199,116       5,354,229    
McAfee, Inc.*     142,800       4,806,648    
      20,323,662    

 

Security description   Number of
shares		   Value  
IT consulting & services—0.66%  
Accenture Ltd., Class A     314,300     $ 10,881,066    
Machinery—0.58%  
AGCO Corp.*     72,400       4,359,928    
ITT Industries, Inc.     86,000       5,110,980    
      9,470,908    
Media—0.86%  
DISH Network Corp., Class A*     145,116       4,098,076    
Walt Disney Co.1      337,200       10,092,396    
      14,190,472    
Metals & mining—1.40%  
Allegheny Technologies, Inc.     50,900       3,583,360    
Freeport-McMoRan Copper &
Gold, Inc., Class B1 		     194,000       17,271,820    
GrafTech International Ltd.*     141,884       2,135,354    
      22,990,534    
Multi-line retail—1.33%  
Big Lots, Inc.1,*     388,700       6,747,832    
Target Corp.     271,750       15,103,865    
      21,851,697    
Multi-utilities—0.43%  
Duke Energy Corp.     376,399       7,023,605    
Oil & gas—13.45%  
Apache Corp.1      55,002       5,249,391    
ChevronTexaco Corp.     353,391       29,861,539    
ConocoPhillips     490,600       39,404,992    
Devon Energy Corp.1      153,700       13,061,426    
Exxon Mobil Corp.     704,892       60,902,669    
Frontier Oil Corp.     158,400       5,586,768    
Marathon Oil Corp.     187,900       8,803,115    
Murphy Oil Corp.     149,006       10,957,901    
Occidental Petroleum Corp.     233,247       15,830,474    
Total SA, ADR1      149,400       10,873,332    
Valero Energy Corp.1      149,700       8,860,743    
XTO Energy, Inc.     232,788       12,091,009    
      221,483,359    
Personal products—0.13%  
NBTY, Inc.*     85,400       2,068,388    
Pharmaceuticals—7.37%  
Johnson & Johnson     312,700       19,781,402    
Merck & Co., Inc.     365,700       16,924,596    
Novartis AG, ADR1      393,200       19,899,852    
Pfizer, Inc.     1,770,781       41,418,568    
Schering-Plough Corp.     262,450       5,136,146    
Wyeth     456,300       18,160,740    
      121,321,304    

 


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UBS PACE Large Co Value Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(concluded)
Security description		   Number of
shares		   Value  
Real estate—0.69%  
Annaly Capital
Management, Inc.		     575,282     $ 11,344,561    
Road & rail—0.99%  
Norfolk Southern Corp.     300,600       16,349,634    
Semiconductor equipment & products—1.29%  
Atmel Corp.*     519,400       1,641,304    
MEMC Electronic
Materials, Inc.*		     79,000       5,645,340    
Texas Instruments, Inc.1      448,850       13,882,931    
      21,169,575    
Software—2.02%  
Microsoft Corp.     320,900       10,461,340    
Oracle Corp.1,*     1,110,694       22,824,762    
      33,286,102    
Specialty retail—1.08%  
AutoZone, Inc.*     78,900       9,537,432    
GameStop Corp., Class A*     159,259       8,238,468    
      17,775,900    
Textiles & apparel—1.58%  
Fossil, Inc.1,*     223,361       7,589,807    
Nike, Inc., Class B1      298,510       18,435,977    
      26,025,784    
Tobacco—1.77%  
Altria Group, Inc.     283,600       21,502,552    
Loews Corp. - Carolina Group     93,600       7,687,368    
      29,189,920    
Wireless telecommunication services—1.29%  
Telephone & Data Systems, Inc.     85,600       4,514,544    
Vodafone Group PLC, ADR1      479,950       16,702,260    
      21,216,804    
Total common stocks
(cost—$1,587,658,248)		             1,617,079,100    
Tracking stock—0.18%  
Media—0.18%  
Liberty Media Corp. - Capital,
Series A*
(cost—$3,019,192)		     26,864       2,891,104    

 

    Face
amount		   Value  
Repurchase agreement—1.33%  
Repurchase agreement dated
01/31/08 with State Street
Bank & Trust Co., 1.400%,
due 02/01/08 collateralized
by $9,115,000 Federal Home
Loan Bank obilgations,
5.250% due 02/13/08,
$1,490,186 US Treasury Bills,
zero coupon due 05/01/08,
$937,450 US Treasury Bonds,
8.125% due 08/15/19, and
$9,656,823 US Treasury Notes,
4.750% due 12/31/08 to
01/31/12; (value—$22,360,177);
proceeds: $21,917,852
(cost—$21,917,000)		   $ 21,917,000     $ 21,917,000    
    Number of
shares		      
Investments of cash collateral from securities loaned—7.06%  
Money market funds2—7.06%  
AIM Prime Portfolio,
3.663%		     38,975       38,975    
Blackrock Provident
Institutional TempFund,
4.123%		     53,410,361       53,410,361    
DWS Money Market Series,
4.201%		     25,243,683       25,243,683    
Federated Treasury
Obligation Fund,
1.571%		     14       14    
UBS Private Money
Market Fund LLC,3
3.941%		     37,469,297       37,469,297    
Total money market funds and
investments of cash collateral
from securities loaned
(cost—$116,162,330)		             116,162,330    
Total investments
(cost—$1,728,756,770)—
106.80%		             1,758,049,534    
Liabilities in excess of other
assets—(6.80)%		             (111,878,433 )  
Net assets—100.00%   $ 1,646,171,101    

 


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UBS PACE Select Advisors Trust

UBS PACE Large Co Value Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

*  Non-income producing security.

1  Security, or portion thereof, was on loan at January 31, 2008.

2  Rates shown reflect yield at January 31, 2008.

3  The table below details the Portfolio's transaction activity in an affiliated issuer during the six months ended January 31, 2008.

Security description   Value at
07/31/07		   Purchases
during the
six months
ended
01/31/08		   Sales
during the
six months
ended
01/31/08		   Value at
01/31/08		   Net income
earned from
affiliate for
the six months
ended
01/31/08		  
UBS Private Money Market Fund LLC   $ 103,529,766     $ 1,311,197,182     $ 1,377,257,651     $ 37,469,297     $ 120,506    

 

ADR  American Depositary Receipt

Issuer breakdown by country or territory of origin

    Percentage of
total investments		  
United States     89.0 %  
Bermuda     4.9    
Cayman Islands     2.3    
United Kingdom     1.3    
Switzerland     1.1    
France     0.6    
Panama     0.6    
Germany     0.2    
Total     100.0 %  

 

See accompanying notes to financial statements.
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UBS PACE Large Co Growth Equity Investments

Performance

For the six months ended January 31, 2008, the Portfolio's Class P shares declined 1.90% (before the deduction of the maximum UBS PACE Select program fee, and declined 2.63% after the deduction of the maximum UBS PACE Select program fee for the six month period). In comparison, the Russell 1000 Growth Index (the "benchmark") declined 3.15%, and the median return for the Lipper Large-Cap Growth Funds category declined 2.19%. (Returns for all share classes over various time periods are shown in the "Performance at a Glance" table on page 96. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.)

Market review

US equities succumbed to mounting headwinds during the reporting period and weakened amid continued evidence of subprime-related profit write-downs and a slowing US economy. In January, credit worries intensified and fears of a recession grew. All told, the Portfolio's benchmark, the Russell 1000 Growth Index, declined 3.15% during the reporting period. Within the benchmark, only three sectors generated positive results over the six-month period: materials, consumer staples and utilities. The weakest performing sectors were telecommunication services, consumer discretionary, financials and information technology.

Advisors' comments
Marsico

During the reporting period, our portion of the Portfolio generated a positive absolute return outperforming the Portfolio's benchmark. Several holdings in the consumer services industry contributed to our outperformance, including hotel/casino operators Wynn Resorts Ltd. and Las Vegas Sands Corp., as well as fast food retailer McDonald's Corp. Select individual holdings also enhanced our results, including China Mobile Ltd., Petroleo Brasileiro SA and Goldman Sachs Group, Inc. A select holding and investment posture in the materials sector was another area of strength. Our position in Monsanto Co. emerged as the largest individual contributor to performance at the stock level for the period. Performance was aided by our overweight in the materials sector, as this sector generated strong returns.

UBS PACE Select Advisors Trust – UBS PACE Large Co Growth Equity Investments

Advisors:

Wellington Management Company, LLC ("Wellington"), Marsico Capital Management, LLC ("Marsico"), SSgA Funds Management, Inc. ("SSgA") and Delaware Management Company ("Delaware")

Portfolio Managers:

Wellington: Andrew Shilling and Team;

Marsico: Thomas F. Marsico;

SSgA: Nick de Peyster and Team

Delaware: Jeffrey S. Van Harte and Team

Objective:

Capital appreciation

Investment process:

Wellington applies in-depth fundamental research in its effort to identify corporate change early, differentiate sustainable growth opportunities from short-lived events, identify superior business models, and develop strict valuation parameters for the companies it evaluates. Wellington's strategy is focused on investing in companies that appear well-positioned to benefit from long-lasting trends and that have structural advantages to maintaining their position.

Marsico uses an approach that combines top-down macro-economic analysis with bottom-up stock selection. It considers macro-economic factors such as interest rates, inflation, demographics, the regulatory environment and the global competitive environment. It then seeks to identify companies with earnings growth potential that may not be recognizable by the market at large. Marsico's stock selection process may focus on factors such as market expertise or dominance, franchise durability and pricing power, solid company

(continued on next page)


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Advisors' comments – continued

In contrast, overweight positions in the telecommunication services and consumer discretionary sectors detracted from results. These sectors were relatively weak, posting absolute returns of -25% and -11%, respectively. The Portfolio's underweight position in the consumer staples industry also hurt performance when that sector returned a relatively strong 6%. Merck & Co, Inc., a holding in the pharmaceuticals, biotechnology & life sciences industry, was the largest individual detractor from performance for the period. Other positions with negative returns included Schlumberger Ltd., Comcast Corp.,1 and Microsoft Corp.

As of January 31, 2008, our economic sector allocations emphasized the consumer discretionary, energy, industrials and information technology sector. We had little or no exposure to the utilities sector.

SSgA

Our portion of the Portfolio generated a negative absolute return and underperformed the Portfolio's benchmark during the reporting period. Our investment process incorporates perspectives on valuation, quality and sentiment, and these components offered mixed performance for this time period.

Stock selection drove our performance results. Underperforming stock picks in eight of 10 economic sectors represented in the benchmark detracted from performance. Negative contributors at the sector level included the technology, financials, consumer discretionary and telecommunication sectors. Within technology, a position in NVIDIA Corp. declined 28% for the period. Shares of the world's second largest producer of computer graphics chips fell after its sales growth forecast trailed analysts' estimates. In addition, an overweight position in Motorola, Inc.1 weighed heavily on our results. Motorola, the US mobile phone maker, fell 17% for the period on deteriorating fundamentals. Elsewhere, an overweight position in WellCare Health Plans, Inc.1 plunged 78%, making it the single largest negative contributor to performance. News that WellCare was being probed by the US Justice Department and the Florida Attorney General's Medicaid fraud unit sent its shares spiraling downward.

Investment process (concluded)

fundamentals, as well as strong management and reasonable valuations.

SSgA uses several independent quantitative measures based on valuation, sentiment and quality to identify investment opportunities within a large-cap growth universe and combines factors to produce an overall rank. Comprehensive research helps determine the optimal weighting of these perspectives to arrive at strategies that vary by industry. SSgA ranks all companies within the investable universe from top to bottom based on their relative attractiveness. SSgA constructs its portion of the Portfolio by selecting the highest-ranked stocks from the universe, and manages deviations from the benchmark to maximize the risk/reward trade-off. The resulting Portfolio has characteristics similar to the benchmark. SSgA generally sells stocks that no longer meet its selection criteria or that it believes otherwise may adversely affect performance relative to the benchmark.

Delaware invests primarily in common stocks of large capitalization growth-oriented companies that Delaware believes have long-term capital appreciation potential and are expected to grow faster than the US economy. Using a bottom-up approach, Delaware seeks to select securities of companies that it believes have attractive end market potential, dominant business models and strong free cash flow generation that are attractively priced compared to the intrinsic value of the securities. Delaware also considers a company's operational efficiencies, management's plans for capital allocation and the company's shareholder orientation.

1  Not held by the Portfolio as of January 31, 2008.


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Advisors' comments – concluded

Strong stock picking among industrials and utilities stocks positively contributed to performance, partially offsetting our losses. For example, an overweight position in Apollo Group, Inc. climbed 35% for the period. Within the utilities sector, our holding in Energen Corp. rose 21%, bolstering results. At the stock level, the single largest positive contributor to performance was an overweight position in GameStop Corp., the world's largest video game and entertainment software retailer. Shares of GameStop increased 28% for the period after reporting record fiscal third quarter results.

Wellington Management

During the reporting period, our portion of the Portfolio outperformed the benchmark. The greatest contributor to relative performance was our allocation to, and stock selection within, the materials sector. This portion of the portfolio represented an average overweight of 2.8% versus the benchmark and posted a return of 41.9%. Potash Corp. (+74.8%) and Agrium Inc. (+54.6%) were our top contributors in this sector. Elsewhere, energy stocks Transocean Inc. (+7.23%) and EOG Resources, Inc. (+24.1%) contributed to performance, as did industrials companies Foster Wheeler Ltd. (+56.2%) and Parker Hannifin1 (+15.9%). An underweight position in the poorly performing consumer discretionary sector also helped our relative performance.

An overweight position in the information technology sector was the greatest detractor from relative performance. With an average overweight of 6.8% versus the benchmark, this was our largest single allocation for the period. Our holdings in Cadence Design Systems Inc. (-52.8%) and Altera Corp. (-26.9%) were key drivers of underperformance in this sector. A 26.9% loss in the telecommunication services sector was another detractor from absolute and relative performance, as NII Holdings1 (-43.9%) and Metropcs Communications, Inc. (-51.4%) both declined substantially. An underweight position to the fairly strong- performing consumer staples sector also detracted from performance.

Delaware

Since assuming responsibility for our portion of the Portfolio, through period end, we lagged the benchmark primarily due to stock selection.

Stocks hurting performance included Seagate Technology, Google, Inc. and Apple, Inc., all of which experienced solid earnings, but saw their performance dragged down by other factors. For example, Google's disappointing consumer search growth and Apple's iPod's sales growth exacerbated investor concerns about the economy in general and technology stocks in particular. We do not believe that these issues negate our reasons for holding these stocks over the long term, however. In fact, in many cases we added to our exposures to these stocks following the market's volatility in January 2008.

On the upside, Zimmer Holdings, Inc. and Qualcomm, Inc. were our best-performing stocks during the period. Zimmer's shares fell in 2007 on a relatively short-term growth hurdle after missing out on a key hip replacement product. However, during the period, they reported earnings that exceeded market expectations, assuaging investor fears that their growth might be slowing. Qualcomm performed well as their strong fundamentals appear to be overcoming the negativity surrounding their stock following their very public litigation battles with Broadcom and Nokia.

1  Not held by the Portfolio as of January 31, 2008.

Special considerations

The Portfolio may be appropriate for long-term investors seeking capital appreciation who are able to withstand short-term fluctuations in the equity markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. Also, to the extent the Portfolio invests a large portion of its assets in technology companies, the Portfolio may experience greater volatility and risk of loss due to unfavorable developments in the technology sector. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.


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UBS PACE Select Advisors Trust

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Performance at a glance (unaudited)

Average annual total returns for periods ended 01/31/08       6 months   1 year   5 years   10 years   Since
inception1 		  
Before deducting   Class A2      -2.05 %     -2.11 %     10.70 %     N/A       -2.66 %  
maximum sales charge   Class B3      -2.52 %     -2.97 %     9.73 %     N/A       -3.32 %  
or UBS PACE Select   Class C4      -2.51 %     -2.96 %     9.79 %     N/A       -3.43 %  
program fee   Class Y5      -1.93 %     -1.77 %     11.13 %     N/A       -1.30 %  
    Class P6      -1.90 %     -1.79 %     11.03 %     2.13 %     5.87 %  
After deducting   Class A2      -7.45 %     -7.50 %     9.46 %     N/A       -3.43 %  
maximum sales charge   Class B3      -7.26 %     -7.69 %     9.46 %     N/A       -3.32 %  
or UBS PACE Select   Class C4      -3.46 %     -3.91 %     9.79 %     N/A       -3.43 %  
program fee   Class P6      -2.63 %     -3.26 %     9.38 %     0.61 %     4.30 %  
Russell 1000 Growth Index       -3.15 %     0.51 %     10.84 %     2.69 %     7.16 %  
Lipper Large-Cap Growth Funds median         -2.19 %     1.07 %     10.14 %     3.86 %     6.74 %  

 

Average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: Class A—1-year period, 5.71%; 5-year period, 11.21%; since inception, -2.09%; Class B—1-year period, 5.95%; 5-year period, 11.25%; since inception, -1.98%; Class C—1-year period, 9.92%; 5-year period, 11.53%; since inception, -2.07%; Class Y—1-year period, 12.25%; 5-year period, 12.91%; since inception, 0.13%; Class P—1-year period, 10.50%; 5-year period, 11.12%; 10-year period, 1.83%; since inception, 5.19%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 30, 2007 prospectuses were as follows: Class A—1.25% and 1.20%; Class B—2.24% and 2.05%; Class C—2.09% and 2.04%; Class Y—0.86% and 0.81%; and Class P—0.95% and 0.90%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The portfolio and UBS Global AM have entered into a written fee waiver agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees through November 30, 2008 to the extent necessary to reflect the lower fees paid to the portfolio's investment advisor as a result of the lower sub-advisory fee paid by UBS Global AM to SSgA FM. The portfolio and UBS Global AM have entered into an additional written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse the portfolio so that the ordinary total operating expenses of each class through November 30, 2008 (excluding dividend expense, borrowing costs and interest expense, if any) would not exceed Class A—1.30%; Class B—2.05%; Class C—2.05%; Class Y—1.05%; and Class P—1.05%. The portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the portfolio's expenses in any of those three years to exceed these expense caps described above.

1  Since inception returns are calculated as of commencement of issuance on August 24, 1995 for Class P shares, November 27, 2000 for Class A, B, and C shares and February 15, 2001 for Class Y shares. Since inception returns for the Index and Lipper median are shown as of August 31, 1995, which is the month-end after the inception date of the oldest share class (Class P).

2  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

3  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

4  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

5  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

6  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual UBS PACE Select program fee of 1.5% of the value of Class P shares.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

The Russell 1000 Growth Index measures the performance of a large universe of stocks with higher price-to-book ratios and higher forecasted growth rates.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for the period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.


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Portfolio statistics (unaudited)

Characteristics   01/31/08  
Net assets (bn)   $ 1.4    
Number of holdings     187    
Portfolio composition1    01/31/08  
Common stocks     92.6 %  
ADRs     5.6    
Cash equivalents and other assets less liabilities     1.8    
Total     100.0 %  
Top five sectors1    01/31/08  
Information technology     25.7 %  
Industrials     15.4    
Consumer discretionary     13.8    
Health care     13.8    
Financials     9.0    
Total     77.7 %  
Top ten equity holdings1    01/31/08  
Microsoft     3.1 %  
Google     3.0    
Apple     2.7    
General Dynamics     2.0    
Monsanto     1.8    
McDonald's     1.7    
Merck & Co.     1.6    
Oracle     1.6    
UnitedHealth Group     1.5    
QUALCOMM     1.5    
Total     20.5 %  

 

1  Weightings represent percentages of the Portfolio's net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time.

ADR  American Depositary Receipt


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UBS PACE Select Advisors Trust

UBS PACE Large Co Growth Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—98.17%
Security description		   Number of
shares		   Value  
Aerospace & defense—5.36%  
Boeing Co.     72,850     $ 6,059,663    
General Dynamics Corp.     323,273       27,303,638    
L-3 Communications
Holdings, Inc.		     52,200       5,785,326    
Lockheed Martin Corp.     187,867       20,274,607    
Northrop Grumman Corp.     62,690       4,975,078    
Precision Castparts Corp.     15,200       1,729,760    
Raytheon Co.     133,500       8,696,190    
      74,824,262    
Air freight & couriers—1.01%  
Expeditors International of
Washington, Inc.		     151,900       7,183,351    
United Parcel Service, Inc.,
Class B		     95,000       6,950,200    
      14,133,551    
Airlines—0.26%  
UAL Corp.1      95,400       3,620,430    
Auto components—0.31%  
BorgWarner, Inc.     86,000       4,352,460    
Automobiles—0.54%  
Toyota Motor Corp., ADR1      69,338       7,526,640    
Banks—1.63%  
Banco Itau Holding
Financeira SA, ADR		     110,670       2,576,398    
Bank of New York
Mellon Corp.		     140,600       6,556,178    
Northern Trust Corp.     86,900       6,374,984    
Wells Fargo & Co.     214,319       7,288,989    
      22,796,549    
Beverages—1.13%  
Coca-Cola Co.     17,400       1,029,558    
Coca-Cola Enterprises, Inc.1      57,100       1,317,297    
Constellation Brands, Inc.,
Class A*		     59,500       1,243,550    
PepsiAmericas, Inc.     166,100       4,092,704    
PepsiCo, Inc.     118,220       8,061,422    
      15,744,531    
Biotechnology—2.37%  
Biogen Idec, Inc.*     83,900       5,113,705    
Genentech, Inc.*     220,680       15,489,529    
Gilead Sciences, Inc.*     66,690       3,047,066    
Invitrogen Corp.**     47,700       4,086,459    
Millennium Pharmaceuticals,
Inc.*		     349,600       5,303,432    
      33,040,191    

 

Security description   Number of
shares		   Value  
Chemicals—3.58%  
Air Products & Chemicals, Inc.     93,820     $ 8,445,676    
Celanese Corp.     26,200       974,116    
CF Industries Holdings, Inc.     20,200       2,159,986    
Monsanto Co.     224,948       25,293,153    
Potash Corp. of
Saskatchewan, Inc.1 		     47,160       6,643,901    
Praxair, Inc.     80,000       6,472,800    
      49,989,632    
Commercial services & supplies—2.75%  
Apollo Group, Inc., Class A*     119,360       9,517,766    
Deluxe Corp.     82,500       2,006,400    
Hewitt Associates, Inc.,
Class A*		     120,600       4,482,702    
Manpower, Inc.     74,130       4,170,554    
MasterCard, Inc., Class A     43,600       9,025,200    
Republic Services, Inc.     148,600       4,458,000    
Weight Watchers
International, Inc.1 		     110,000       4,686,000    
      38,346,622    
Communications equipment—4.11%  
Cisco Systems, Inc.*     730,450       17,896,025    
Juniper Networks, Inc.*     168,300       4,569,345    
Plantronics, Inc.     216,800       4,140,880    
QUALCOMM, Inc.     505,670       21,450,521    
Research In Motion Ltd.1,*     100,000       9,388,000    
      57,444,771    
Computers & peripherals—6.15%  
Apple, Inc.*     281,285       38,074,737    
Hewlett-Packard Co.1      170,140       7,443,625    
International Business
Machines Corp.		     106,100       11,388,774    
Network Appliance, Inc.1,*     197,890       4,595,006    
NVIDIA Corp.*     234,300       5,761,437    
Seagate Technology1      390,000       7,905,300    
Teradata Corp.*     210,000       5,002,200    
Western Digital Corp.*     213,600       5,649,720    
      85,820,799    
Construction & engineering—1.86%  
Fluor Corp.     120,860       14,705,036    
Foster Wheeler Ltd.*     90,270       6,180,787    
Jacobs Engineering Group,
Inc.*		     59,400       4,540,536    
Shaw Group, Inc.*     9,100       514,150    
      25,940,509    
Containers & packaging—0.04%  
Owens-Illinois, Inc.*     11,600       584,640    

 


98


UBS PACE Select Advisors Trust

UBS PACE Large Co Growth Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number of
shares		   Value  
Diversified financials—5.54%  
American Express Co.     173,400     $ 8,552,088    
CME Group, Inc.     23,750       14,698,875    
Goldman Sachs Group, Inc.1      96,302       19,334,553    
Intercontinental Exchange,
Inc.*		     60,800       8,509,568    
Invesco Ltd.1      221,240       6,022,153    
JPMorgan Chase & Co.     93,840       4,462,092    
MF Global Ltd.1,*     212,930       6,398,546    
TD Ameritrade Holding Corp.*     97,400       1,827,224    
Western Union Co.     336,120       7,529,088    
      77,334,187    
Diversified telecommunication services—1.55%  
AT&T, Inc.     368,653       14,189,454    
Nokia Oyj, ADR     203,390       7,515,260    
      21,704,714    
Electrical equipment—0.98%  
ABB Ltd., ADR1      271,650       6,791,250    
SunPower Corp., Class A1,*     46,640       3,222,358    
Thomas & Betts Corp.*     82,000       3,710,500    
      13,724,108    
Electronic equipment & instruments—0.26%  
Suntech Power Holdings Co.,
Ltd., ADR1,*		     66,210       3,623,673    
Energy equipment & services—4.10%  
Cameron International Corp.*     187,658       7,555,111    
Diamond Offshore Drilling,
Inc.		     8,790       992,655    
Dresser-Rand Group, Inc.*     122,500       3,883,250    
FMC Technologies, Inc.1,*     99,100       4,772,656    
Global Industries Ltd.*     190,200       3,358,932    
Halliburton Co.1      92,930       3,082,488    
National-Oilwell Varco, Inc.*     98,600       5,938,678    
Schlumberger Ltd.     111,683       8,427,599    
Transocean, Inc.*     156,795       19,223,067    
      57,234,436    
Food & drug retailing—1.79%  
Agrium, Inc.     92,460       5,956,273    
CVS Caremark Corp.     232,789       9,095,066    
Terra Industries, Inc.*     85,100       3,835,457    
Walgreen Co.     175,000       6,144,250    
      25,031,046    
Food products—0.23%  
Corn Products International,
Inc.		     94,800       3,204,240    
Gas utilities—0.34%  
Energen Corp.     76,500       4,811,850    

 

Security description   Number of
shares		   Value  
Health care equipment & supplies—1.74%  
Covidien Ltd.     113,610     $ 5,070,414    
DENTSPLY International, Inc.     104,600       4,321,026    
Hologic, Inc.1,*     103,990       6,692,797    
Zimmer Holdings, Inc.*     105,200       8,234,004    
      24,318,241    
Health care providers & services—4.06%  
Aetna, Inc.     66,700       3,552,442    
Express Scripts, Inc.*     87,400       5,898,626    
Henry Schein, Inc.*     108,500       6,307,105    
Humana, Inc.*     76,600       6,150,980    
McKesson Corp.     186,190       11,690,870    
UnitedHealth Group, Inc.     423,547       21,533,130    
WellPoint, Inc.*     19,300       1,509,260    
      56,642,413    
Hotels, restaurants & leisure—5.76%  
Burger King Holdings, Inc.     152,200       4,010,470    
International Game
Technology		     304,920       13,010,937    
Las Vegas Sands Corp.*     117,269       10,280,973    
McDonald's Corp.     439,711       23,546,524    
MGM Mirage*     201,051       14,720,954    
Wynn Resorts Ltd.     101,806       11,705,654    
Yum! Brands, Inc.     91,200       3,115,392    
      80,390,904    
Household durables—0.62%  
Tupperware Brands Corp.     235,400       8,709,800    
Household products—0.75%  
Procter & Gamble Co.     159,800       10,538,810    
Industrial conglomerates—0.72%  
Siemens AG, ADR1      77,490       10,058,202    
Insurance—1.17%  
AFLAC, Inc.     70,300       4,311,499    
AON Corp.     277,910       12,094,643    
      16,406,142    
Internet & catalog retail—0.47%  
Amazon.com, Inc.*     28,800       2,237,760    
Expedia, Inc.1,*     185,600       4,272,512    
      6,510,272    
Internet software & services—4.58%  
eBay, Inc.1,*     448,600       12,062,854    
Google, Inc., Class A1,*     73,451       41,448,399    
McAfee, Inc.1,*     147,260       4,956,772    
VeriSign, Inc.*     162,010       5,495,379    
      63,963,404    

 


99


UBS PACE Select Advisors Trust

UBS PACE Large Co Growth Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number of
shares		   Value  
IT consulting & services—1.75%  
Accenture Ltd., Class A     202,980     $ 7,027,168    
Automatic Data Processing,
Inc.		     137,160       5,564,581    
Cognizant Technology
Solutions Corp., Class A1,*		     105,570       2,945,403    
Paychex, Inc.1      135,000       4,417,200    
Sun Microsystems, Inc.*     255,000       4,462,500    
      24,416,852    
Machinery—1.43%  
AGCO Corp.*     81,700       4,919,974    
Caterpillar, Inc.     96,600       6,872,124    
Danaher Corp.     82,180       6,118,301    
Deere & Co.     22,852       2,005,492    
      19,915,891    
Media—1.26%  
Omnicom Group, Inc.     43,900       1,991,743    
Reuters Group PLC, ADR     92,200       6,686,344    
Viacom, Inc., Class B*     163,910       6,353,152    
Walt Disney Co.1      84,100       2,517,113    
      17,548,352    
Metals & mining—1.03%  
Cameco Corp.1      132,960       4,500,696    
Companhia Vale do Rio
Doce (CVRD), ADR		     129,660       3,887,207    
Freeport-McMoRan
Copper & Gold, Inc.,
Class B		     42,730       3,804,252    
Worthington Industries, Inc.1      134,500       2,204,455    
      14,396,610    
Multi-line retail—0.67%  
Kohl's Corp.1,*     94,610       4,318,000    
Wal-Mart Stores, Inc.     100,000       5,088,000    
      9,406,000    
Oil & gas—3.81%  
Chevron Corp.     60,100       5,078,450    
ConocoPhillips     125,890       10,111,485    
EOG Resources, Inc.1      88,720       7,763,000    
Exxon Mobil Corp.1      117,900       10,186,560    
Frontier Oil Corp.     36,300       1,280,301    
Noble Energy, Inc.     7,900       573,382    
Occidental Petroleum Corp.     23,600       1,601,732    
Petroleo Brasileiro SA, ADR1      108,904       12,103,590    
Ultra Petroleum Corp.*     64,830       4,460,304    
      53,158,804    

 

Security description   Number of
shares		   Value  
Pharmaceuticals—5.60%  
Abbott Laboratories     198,220     $ 11,159,786    
Allergan, Inc.     125,000       8,398,750    
Elan Corp. PLC, ADR1,*     234,240       5,952,038    
Johnson & Johnson     126,400       7,996,064    
Medco Health Solutions, Inc.*     133,000       6,660,640    
Merck & Co., Inc.     481,613       22,289,050    
Pfizer, Inc.     158,800       3,714,332    
Schering-Plough Corp.     200,740       3,928,482    
Teva Pharmaceutical
Industries Ltd., ADR		     176,720       8,136,189    
      78,235,331    
Real estate—0.61%  
ProLogis REIT     143,324       8,506,279    
Road & rail—0.99%  
Norfolk Southern Corp.     24,665       1,318,252    
Union Pacific Corp.     100,447       12,558,888    
      13,877,140    
Semiconductor equipment & products—2.27%  
Altera Corp.     341,770       5,772,495    
Intel Corp.1      667,327       14,147,333    
Linear Technology Corp.1      179,410       4,964,275    
MEMC Electronic Materials,
Inc.*		     47,740       3,411,500    
National Semiconductor
Corp.		     1,500       27,645    
Novellus Systems, Inc.*     142,000       3,373,920    
      31,697,168    
Software—6.59%  
Autodesk, Inc.*     109,740       4,515,801    
Cadence Design
Systems, Inc. *		     276,860       2,810,129    
Electronic Arts, Inc.1,*     206,420       9,778,115    
Intuit, Inc.1,*     295,900       9,081,171    
Microsoft Corp.     1,341,655       43,737,953    
Oracle Corp.1,*     1,075,420       22,099,881    
      92,023,050    
Specialty retail—2.94%  
AutoZone, Inc.*     47,500       5,741,800    
GameStop Corp., Class A1,*     147,100       7,609,483    
Lowe's Cos., Inc.     268,926       7,110,403    
Sherwin-Williams Co.     87,100       4,982,991    
Staples, Inc.     299,000       7,158,060    
TJX Cos., Inc.     269,600       8,508,576    
      41,111,313    
Textiles & apparel—1.20%  
Nike, Inc., Class B1      271,660       16,777,722    
Tobacco—0.29%  
Altria Group, Inc.     52,900       4,010,878    

 


100


UBS PACE Select Advisors Trust

UBS PACE Large Co Growth Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(concluded)
Security description		   Number of
shares		   Value  
Wireless telecommunication services—1.97%  
America Movil SAB de C.V.,
ADR, Series L1 		     49,700     $ 2,977,527    
China Mobile Ltd.     103,619       7,833,597    
Crown Castle International
Corp.*		     155,200       5,616,688    
Metropcs Communications,
Inc.1,*		     198,330       3,583,823    
Telephone and Data
Systems, Inc.		     69,700       3,675,978    
US Cellular Corp.*     53,000       3,768,300    
      27,455,913    
Total common stocks
(cost—$1,358,545,382)		             1,370,909,332    
    Face
amount		      
Repurchase agreement—2.49%  
Repurchase agreement dated
01/31/08 with State Street
Bank & Trust Co., 1.400%,
due 02/01/08, collateralized
by $7,545,000 Federal Home
Loan Bank obligations,
5.250% due 02/13/08,
$3,183,080 US Treasury Bills,
zero coupon due 05/01/08,
$2,002,420 US Treasury Bonds,
8.125% due 08/15/19 and
$20,627,253 US Treasury Notes,
4.750% due 12/31/08 to
01/31/12; (value—$35,538,957);
proceeds: $34,841,355
(cost—$34,840,000)		   $ 34,840,000       34,840,000    

 

Security description   Number of
shares		   Value  
Investments of cash collateral from securities loaned—9.07%  
Money market funds2—9.07%  
AIM Prime Portfolio, 3.663%     18,082     $ 18,082    
BlackRock Provident
Institutional TempFund,
4.123%		     60,044,131       60,044,131    
DWS Money Market Series,
4.201%		     6,694,455       6,694,455    
UBS Private Money Market
Fund LLC,3 3.941%		     59,868,056       59,868,056    
Total money market funds and
investments of cash collateral
from securities loaned
(cost—$126,624,724)		             126,624,724    
Total investments
(cost—$1,520,010,106)—
109.73%		             1,532,374,056    
Liabilities in excess of other
assets—(9.73)%		             (135,890,168 )  
Net assets—100.00%   $ 1,396,483,888    

 


101


UBS PACE Select Advisors Trust

UBS PACE Large Co Growth Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

*  Non-income producing security.

1  Security, or portion thereof, was on loan at January 31, 2008.

2  Rates shown reflect yield at January 31, 2008.

3  The table below details the Portfolio's transaction activity in an affiliated issuer during the six months ended January 31, 2008.

Security description   Value at
07/31/07		   Purchases
during the
six months
ended
01/31/08		   Sales
during the
six months
ended
01/31/08		   Value at
01/31/08		   Net income
earned from
affiliate for
the six months
ended
01/31/08		  
UBS Private Money Market Fund LLC   $ 203,334,921     $ 1,146,440,669     $ 1,289,907,534     $ 59,868,056     $ 186,383    

 

ADR  American Depositary Receipt

REIT  Real Estate Investment Trust

Issuer breakdown by country or territory of origin

    Percentage of
total investments		  
United States     88.1 %  
Canada     2.0    
Cayman Islands     2.0    
Bermuda     2.0    
Brazil     1.2    
Germany     0.7    
Netherland Antilles     0.6    
Israel     0.5    
Hong Kong     0.5    
Japan     0.5    
Finland     0.5    
Switzerland     0.4    
United Kingdom     0.4    
Ireland     0.4    
Mexico     0.2    
Total     100.0 %  

 

See accompanying notes to financial statements.
102


UBS PACE Select Advisors Trust

UBS PACE Small/Medium Co Value Equity Investments

Performance

For the six months ended January 31, 2008, the Portfolio's Class P shares declined 11.23% (before the deduction of the maximum UBS PACE Select program fee, and declined 11.89% after the deduction of the maximum UBS PACE Select program fee for the six month period). In comparison, the Russell 2500 Value Index (the "benchmark") declined 8.88% and the median return for the Lipper Small-Cap Value Funds category declined 10.09%. (Returns for all share classes over various time periods are shown in the "Performance at a Glance" table on page 106. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.)

Market review

Market returns during the six months ended January 31, 2008 were negative, impacted by the severe volatility throughout the period. Several problems emerged during this time period, creating headwinds for the markets. These included the subprime mortgage crisis, declining home values, rising foreclosures, record high oil prices, declining job creation and rising unemployment. As is typical in these market conditions, investors fled to the perceived safety of large-cap stocks, which held up much better than their small-cap brethren. January saw general deterioration throughout all asset classes and styles of investing, as US stocks set new lows during the first three weeks of the month.

In January 2008, the Federal Reserve Board (the "Fed") cut the federal funds rate twice within nine days. (The federal funds rate, or "fed funds" rate, is the rate that banks charge one another for funds they borrow on an overnight basis.) On January 22nd, it reduced the rate by 0.75%, and by another 0.50% on January 30th, bringing it to 3.00%—its the lowest level since May 2005. These cuts provided welcome respite to the beleaguered markets, and stocks responded by moving higher in the last week of January.

Advisors' comments
Ariel

During the reporting period, our portion of the Portfolio lagged the benchmark. The most detrimental sector was financial services. Our weightings in the sector were similar to the benchmark's, but the stocks we held fared

UBS PACE Select Advisors Trust – UBS PACE Small/Medium Co Value Equity Investments

Advisors:

Ariel Capital Management, LLC ("Ariel"),

Opus Capital Management ("Opus")

and Metropolitan West Capital Management, LLC ("MetWest Capital")

Portfolio Managers:

Ariel: John W. Rogers, Jr.;

Opus: Team;

MetWest Capital: Gary W. Lisenbee and Samir Sikka

Objective:

Capital appreciation

Investment process:

Ariel seeks to invest in stocks of quality companies in industries where it believes it has expertise. Ariel buys stocks when it determines that these businesses appear to be selling at excellent values. It believes that quality companies share several attributes that should result in capital appreciation over time, such as solid financials, high entry barriers, competitive advantages and quality management teams.

Opus uses quantitative and qualitative analysis to construct a value-oriented portfolio of stocks that are believed to be fundamentally undervalued, financially strong, and exhibit strong earnings growth and positive earnings momentum.

MetWest Capital directly researches smaller capitalization businesses it views as "high-quality" from an objective perspective. MetWest Capital attempts to identify companies selling below intrinsic value with clear catalysts to realize full value within their investment time horizon (typically two to three years), and constructs a portfolio of highest conviction ideas.

(continued on next page)


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UBS PACE Select Advisors Trust

UBS PACE Small/Medium Co Value Equity Investments

Advisors' comments – continued

worse—losing 8.3% while those stocks in the benchmark declined 5.1%. Two holdings in particular negatively impacted our results: regional bank City National Corp. and real estate services firm Jones Lang LaSalle, Inc. These stocks fell 18.6% and 21.2%, respectively. Overall, we believe financial services firms have been punished with little regard for their underlying quality, and that our financial services holdings are among the most conservative.

The other difficult area for us was the technology sector. While we only held two stocks in this sector, both names struggled. Electronic wire distributor Anixter International, Inc. lost 15.7%, while consulting firm BearingPoint, Inc. which represented a smaller piece of the portfolio, lost 69.8%. We consider both to be attractive investments, the former due to fundamental strength and the latter due to its considerably low valuation.

More positively, on both an absolute and a relative basis, our investments in the healthcare sector performed best during the reporting period. Our three stocks from that area, Bio-Rad Laboratories Inc., IMS Health, Inc., and Invacare Corp., rose during the period. We sold Invacare after it posted strong gains to pursue what we believe to be more attractive investments, but continue to maintain positions in the other two holdings.

On a relative basis versus the benchmark, our stocks in the consumer discretionary and services sector performed well. On average, the sector represented 26% of our portfolio while the Russell 2500 Value Index had an average 12% weighting to the sector. While the benchmark's holdings lost 20.4%, our holdings fell 11.1%. Of particular note, Hewitt Associates, Inc., one of the premier human resources outsourcing companies and a significant holding in the portfolio, gained 24% over the six-month period.

Opus

The six months ended January 31, 2008 were a difficult period for our portion of the Portfolio on an absolute and relative basis. Significant headwinds buffeted our approach to investing during the period. Stocks with P/E (price to earnings) ratios in the lowest 40% of the small-cap universe were the worst performers prior to the Fed's rate cuts. Low valuations rallied back in favor over the final eight days of January 2008. Additionally, stocks that sported the lowest price to earnings growth ratios (P/E divided by growth plus yield) were the worst performers over the six months ended January 31, 2008. These two measures help us identify companies with what we believed were low valuations and good growth prospects. However, this style of investing was out of favor during the six months ended January 31, 2008.

Certain areas worked well during the reporting period, including increasing our holdings in the healthcare sector. We purchased two names that we believe will benefit from an aging American population and an increase in government-sponsored healthcare services. Our addition of two defense-related technology stocks also aided returns during the period. We believe future defense appropriations will flow toward more domestic programs, such as homeland security, and away from foreign arenas, namely the conflicts in Iraq and Afghanistan.

Other areas dragged on our performance, including an overweight position in the consumer discretionary sector. These stocks performed poorly as investors became increasingly concerned about a weakening consumer. Despite these concerns, we remain overweighted in consumer discretionary stocks and believe that compelling opportunities and valuations reside in this sector. Our underweighting in regional banks and REITs

Investment process (concluded)

MetWest Capital utilizes a bottom-up, fundamental, research-driven style that it believes is ideally suited to the small cap market segment.


104


UBS PACE Select Advisors Trust

UBS PACE Small/Medium Co Value Equity Investments

Advisors' comments – concluded

during the month of January hurt our relative performance as stocks in these industries roared back to life after the Fed's interest rate cuts in late January. We remain underweighted in these two areas, as we believe the rally is premature and more negative news awaits these stocks.

MetWest Capital

During this challenging period, our portion of the Portfolio slightly lagged its benchmark. Over long periods of time, our research-driven approach seeks to add value through strong stock selection. However, due to extreme over- and underperformance in a few segments of the market, the negative impact of our sector weighting relative to the benchmark more than offset favorable stock selection over the six-month period. It is important to note that sector weights are a by-product of bottom-up stock selection decisions, rather than reflective of a top-down view on the market.

Security selection was strong in several sectors, most notably industrials and consumer discretionary. Within industrials, composite materials producer Hexcel Corp. was the best performer. While our reasons for buying Hexcel remained intact, we felt most of the good news was already reflected in the stock price and had difficulty identifying additional, unique catalysts. Because we did not believe there was more upside potential, we opted to sell Hexcel in December 2007. In the consumer discretionary sector, Central European Media Enterprises Ltd. and Corinthian Colleges, Inc. were top contributors. While we trimmed our position in Central European Media, taking gains, the international cable company's long-term prospects for entrance into new markets make the stock continue to appear attractive in our view. When Corinthian Colleges' stock price appreciated, we sold the position in late 2007 in favor of other investment opportunities that we considered to have more attractive risk/reward profiles.

While we also benefited from an overweight position in the top-performing healthcare sector, this was more than offset by weak stock selection in that sector. The primary detractor, Advanced Medical Optics, Inc., fell as consumer spending weakened, primarily due to the company's involvement in elective laser vision correction surgery. However, we believe this company will be an excellent long-term investment given its leading position in the growing eye care industry.

An overweight position in the bottom-performing consumer discretionary sector subtracted value relative to the benchmark over the six-month period. Over the long term, we will continue to seek to add value through stock selection, as we have since we began managing a portion of the Portfolio in October 2005.

Special considerations

The Portfolio may be appropriate for long-term investors seeking capital appreciation who are able to withstand short-term fluctuations in the equity markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan. In addition, small- and mid-cap companies are typically subject to a greater degree of change in earnings and business prospects than are larger, more established companies. Therefore, they are considered to have a higher level of volatility and risk.


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UBS PACE Select Advisors Trust

UBS PACE Small/Medium Co Value Equity Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 01/31/08       6 months   1 year   5 years   10 years   Since
inception1 		  
Before deducting   Class A2      -11.27 %     -9.48 %     12.58 %     N/A       9.19 %  
maximum sales charge   Class B3      -11.68 %     -10.23 %     11.66 %     N/A       8.53 %  
or UBS PACE Select   Class C4      -11.63 %     -10.15 %     11.73 %     N/A       8.37 %  
program fee   Class Y5      -11.12 %     -9.19 %     12.96 %     N/A       9.84 %  
    Class P6      -11.23 %     -9.33 %     12.77 %     5.94 %     9.06 %  
After deducting   Class A2      -16.13 %     -14.46 %     11.32 %     N/A       8.33 %  
maximum sales charge   Class B3      -15.54 %     -14.16 %     11.40 %     N/A       8.53 %  
or UBS PACE Select   Class C4      -12.41 %     -10.93 %     11.73 %     N/A       8.37 %  
program fee   Class P6      -11.89 %     -10.68 %     11.09 %     4.36 %     7.43 %  
Russell 2500 Value Index       -8.88 %     -12.53 %     16.04 %     9.46 %     12.17 %  
Lipper Small-Cap Value Funds median         -10.09 %     -11.74 %     14.44 %     8.32 %     10.86 %  

 

Average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: Class A—1-year period, -7.80%; 5-year period, 11.35%; since inception, 9.15%; Class B—1-year period, -7.43%; 5-year period, 11.45%; since inception, 9.35%; Class C—1-year period, -3.97%; 5-year period, 11.77%; since inception, 9.20%; Class Y—1-year period, -2.06%; 5-year period, 13.00%; since inception, 10.69%; Class P—1-year period, -3.73%; 5-year period, 11.12%; 10-year period, 4.68%; since inception, 7.90%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 30, 2007 prospectuses were as follows: Class A—1.27% and 1.27%; Class B—2.13% and 2.13%; Class C—2.04% and 2.04%; Class Y—0.94% and 0.94%; and Class P—1.16% and 1.16%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses.

1  Since inception returns are calculated as of commencement of issuance on August 24, 1995 for Class P shares, November 27, 2000 for Class A and C shares, November 28, 2000 for Class B shares, and December 20, 2000 for Class Y shares. Since inception returns for the Index and Lipper median are shown as of August 31, 1995, which is the month-end after the inception date of the oldest share class (Class P).

2  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

3  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

4  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

5  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

6  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual UBS PACE Select program fee of 1.5% of the value of Class P shares.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

The Russell 2500 Value Index measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth rates.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for the period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.


106


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Portfolio statistics (unaudited)

Characteristics   01/31/08  
Net assets (mm)   $ 510.0    
Number of holdings     168.0    
Portfolio composition1    01/31/08  
Common stocks     96.1 %  
Cash equivalents and other assets less liabilities     3.9    
Total     100.0 %  
Top five sectors1    01/31/08  
Financials     24.4 %  
Industrials     22.7    
Consumer discretionary     16.3    
Information technology     11.6    
Health care     7.5    
Total     82.5 %  
Top ten equity holdings1    01/31/08  
Markel     2.0 %  
Anixter International     1.9    
Hewitt Associates     1.9    
HCC Insurance Holdings     1.9    
Brady Corp.     1.7    
Mohawk Industries     1.6    
IMS Health     1.5    
Royal Caribbean Cruises     1.4    
Constellation Brands     1.4    
Energizer Holdings     1.4    
Total     16.7 %  

 

1  Weightings represent percentages of the Portfolio's net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time.


107


UBS PACE Select Advisors Trust

UBS PACE Small/Medium Co Value Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—96.06%
Security description		   Number
of shares		   Value  
Aerospace & defense—0.26%  
BE Aerospace, Inc.*     34,150     $ 1,318,532    
Auto components—0.27%  
Aftermarket Technology Corp.1,*     54,500       1,384,845    
Automobiles—0.43%  
Thor Industries, Inc.1      62,500       2,207,500    
Banks—5.84%  
Boston Private Financial
Holdings, Inc.1 		     110,000       2,511,300    
Cathay General Bancorp1      127,000       3,293,110    
City National Corp.1      121,000       6,882,480    
Colonial BancGroup, Inc.1      226,000       3,548,200    
CVB Financial Corp.1      316,000       3,523,400    
International Bancshares Corp.     121,000       2,509,540    
Sterling Bancshares, Inc.1      239,200       2,399,176    
TrustCo Bank Corp. NY1      301,000       3,100,300    
W Holding Co., Inc.1      1,376,650       1,996,142    
      29,763,648    
Beverages—1.42%  
Constellation Brands, Inc.,
Class A1,*		     345,700       7,225,130    
Building products—1.16%  
Apogee Enterprises, Inc.1      112,550       1,963,998    
Crane Co.     42,900       1,753,323    
USG Corp.1,*     60,100       2,199,660    
      5,916,981    
Chemicals—0.94%  
Hercules, Inc.     125,700       2,203,521    
RPM International, Inc.1      120,000       2,596,800    
      4,800,321    
Commercial services & supplies—12.81%  
Consolidated Graphics, Inc.*     32,950       1,657,715    
Dun & Bradstreet Corp.     38,800       3,568,824    
Equifax, Inc.1      194,200       7,202,878    
G & K Services, Inc., Class A     51,000       2,038,470    
H&R Block, Inc.1      322,300       6,210,721    
Herman Miller, Inc.     115,900       3,683,302    
Hewitt Associates, Inc., Class A*     259,900       9,660,483    
Kforce, Inc.*     134,850       1,200,165    
Korn/Ferry International1,*     135,450       2,179,390    
LECG Corp.*     85,100       722,499    
Mobile Mini, Inc.*     108,300       1,646,160    
MPS Group, Inc.1,*     189,800       1,907,490    
Navigant Consulting, Inc.1,*     320,350       3,792,944    
Resources Connection, Inc.1      118,000       2,469,740    
Schawk, Inc.1      147,000       2,110,920    
School Specialty, Inc.1,*     86,000       2,791,560    
Sotheby's     100,300       3,116,321    
Steelcase, Inc., Class A1      290,500       4,453,365    
United Stationers, Inc.1,*     58,000       3,205,080    

 

Security description   Number
of shares		   Value  
Commercial services & supplies—(concluded)  
Watts Water Technologies, Inc.,
Class A1 		     58,000     $ 1,722,020    
      65,340,047    
Communications equipment—0.25%  
Avocent Corp.1,*     77,500       1,286,500    
Computers & peripherals—1.19%  
Avid Technology, Inc.1,*     115,000       2,980,800    
Electronics for Imaging, Inc.*     210,000       3,099,600    
      6,080,400    
Construction & engineering—0.87%  
EMCOR Group, Inc.*     88,700       1,945,191    
Granite Construction, Inc.1      65,000       2,474,550    
      4,419,741    
Diversified financials—6.64%  
Apollo Investment Corp.1      142,200       2,158,596    
Ares Capital Corp.1      147,650       2,064,147    
Assured Guaranty Ltd.1      300,500       7,109,830    
ASTA Funding, Inc.1      57,950       1,209,416    
EzCORP, Inc., Class A*     168,700       2,226,840    
First Cash Financial Services, Inc.*     30,150       301,802    
Investment Technology
Group, Inc.1,*		     84,800       3,983,056    
Janus Capital Group, Inc.     253,800       6,855,138    
Knight Capital Group, Inc.,
Class A1,*		     154,400       2,586,200    
MCG Capital Corp.1      239,200       3,152,656    
World Acceptance Corp.1,*     74,150       2,220,051    
      33,867,732    
Diversified telecommunication services—0.41%  
General Communication, Inc.,
Class A*		     290,000       2,090,900    
Electrical equipment—4.03%  
AMETEK, Inc.     57,000       2,510,280    
Brady Corp., Class A     288,050       8,748,078    
Energizer Holdings, Inc.*     77,000       7,208,740    
Regal-Beloit Corp.     54,900       2,081,808    
      20,548,906    
Electric utilities—0.58%  
Pike Electric Corp.1,*     180,000       2,979,000    
Electronic equipment & instruments—5.13%  
Anixter International, Inc.1,*     141,000       9,878,460    
Arrow Electronics, Inc.*     39,650       1,356,823    
Benchmark Electronics, Inc.1,*     283,500       5,032,125    
Coherent, Inc.*     111,000       2,886,000    
Ingram Micro, Inc., Class A*     116,250       2,066,925    
Insight Enterprises, Inc.1,*     47,000       811,690    
Plexus Corp.*     98,000       2,213,820    
TTM Technologies, Inc.*     188,550       1,917,553    
      26,163,396    

 


108


UBS PACE Select Advisors Trust

UBS PACE Small/Medium Co Value Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
Energy equipment & services—2.50%  
Helmerich & Payne, Inc.     71,800     $ 2,815,996    
Oceaneering International, Inc.*     42,500       2,447,150    
Oil States International, Inc.*     83,600       2,931,016    
TETRA Technologies, Inc.*     155,500       2,433,575    
Tidewater, Inc.     40,250       2,131,640    
      12,759,377    
Food & drug retailing—1.08%  
Performance Food Group Co.*     92,000       2,909,960    
Spartan Stores, Inc.1      147,350       2,590,413    
      5,500,373    
Food products—1.90%  
Brooklyn Cheesecake &
Desserts Co., Inc.2,*		     34,680       8,670    
J&J Snack Foods Corp.     104,000       2,601,040    
J.M. Smucker Co.     152,000       7,102,960    
      9,712,670    
Gas utilities—0.91%  
Atmos Energy Corp.     88,500       2,541,720    
New Jersey Resources Corp.     44,500       2,086,605    
      4,628,325    
Health care equipment & supplies—2.56%  
Advanced Medical Optics, Inc.1,*     126,000       2,649,780    
Bio-Rad Laboratories, Inc.,
Class A1,*		     61,600       5,864,936    
Cooper Cos., Inc.1      53,000       2,087,140    
ICU Medical, Inc.1,*     87,000       2,469,930    
      13,071,786    
Health care providers & services—4.37%  
AMN Healthcare Services, Inc.*     93,700       1,463,594    
Emergency Medical Services
Corp., Class A1,*		     93,000       2,861,610    
Gentiva Health Services, Inc.*     126,150       2,331,252    
Healthspring, Inc.*     129,650       2,682,458    
IMS Health, Inc.     321,000       7,668,690    
LifePoint Hospitals, Inc.*     63,450       1,713,150    
Magellan Health Services, Inc.*     81,000       3,542,940    
      22,263,694    
Hotels, restaurants & leisure—2.06%  
Papa John's International, Inc.1,*     98,000       2,478,420    
Royal Caribbean Cruises Ltd.1      180,200       7,258,456    
Ruby Tuesday, Inc.1      96,400       741,316    
      10,478,192    
Household durables—4.35%  
ACCO Brands Corp.1,*     185,400       2,512,170    
Black & Decker Corp.1      89,200       6,470,568    
Mohawk Industries, Inc.1,*     102,500       8,191,800    
Newell Rubbermaid, Inc.1      208,000       5,016,960    
      22,191,498    

 

Security description   Number
of shares		   Value  
Industrial conglomerates—0.75%  
Carlisle Cos., Inc.1      58,600     $ 1,951,380    
Chemed Corp.1      37,000       1,895,510    
      3,846,890    
Insurance—8.23%  
American Financial Group, Inc.     49,100       1,361,543    
Argo Group International
Holdings, Ltd.1,*		     50,623       2,067,443    
Aspen Insurance Holdings Ltd.1      130,600       3,685,532    
Delphi Financial Group, Inc.,
Class A1 		     66,800       2,096,184    
HCC Insurance Holdings, Inc.     340,101       9,475,214    
Infinity Property &
Casualty Corp.		     26,950       1,074,497    
Markel Corp.*     22,400       10,371,200    
Navigators Group, Inc.*     33,400       1,928,182    
Selective Insurance Group, Inc.     188,000       4,495,080    
StanCorp Financial Group, Inc.     110,250       5,425,402    
      41,980,277    
Internet software & services—0.45%  
TriZetto Group, Inc.*     117,600       2,295,552    
IT consulting & services—2.24%  
BearingPoint, Inc.1,*     1,053,300       2,064,468    
CACI International, Inc.,
Class A1,*		     116,300       5,069,517    
ManTech International Corp.,
Class A1,*		     57,350       2,345,615    
Unisys Corp.*     462,000       1,921,920    
      11,401,520    
Leisure equipment & products—0.29%  
RC2 Corp.*     80,000       1,502,400    
Machinery—2.18%  
Barnes Group, Inc.     46,050       1,227,233    
IDEX Corp.     224,400       7,008,012    
Kennametal, Inc.     40,300       1,234,389    
Timken Co.     53,700       1,623,351    
      11,092,985    
Marine—0.50%  
Genco Shipping & Trading Ltd.1      51,350       2,532,582    
Media—2.31%  
Central European Media
Enterprises Ltd., Class A1,*		     28,000       2,654,120    
Interpublic Group of Cos., Inc.1,*     398,900       3,562,177    
Lee Enterprises, Inc.1      214,450       2,560,533    
McClatchy Co., Class A1      278,700       3,001,599    
      11,778,429    
Metals & mining—0.29%  
Gibraltar Industries, Inc.     111,050       1,465,860    
Multi-line retail—0.19%  
Fred's, Inc.1      101,950       961,389    

 


109


UBS PACE Select Advisors Trust

UBS PACE Small/Medium Co Value Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(concluded)
Security description		   Number
of shares		   Value  
Oil & gas—1.85%  
Berry Petroleum Co.     30,200     $ 1,131,594    
Quicksilver Resources, Inc.1,*     51,000       2,898,330    
St. Mary Land & Exploration Co.     76,900       2,709,187    
Tsakos Energy Navigation Ltd.     78,000       2,687,100    
      9,426,211    
Paper & forest products—0.98%  
Glatfelter     198,000       2,863,080    
Neenah Paper, Inc.     79,000       2,140,900    
      5,003,980    
Personal products—0.32%  
NBTY, Inc.*     68,050       1,648,171    
Pharmaceuticals—0.58%  
Sciele Pharma, Inc.1,*     122,650       2,933,788    
Real estate—3.67%  
CB Richard Ellis Group, Inc.,
Class A*		     233,600       4,534,176    
DiamondRock Hospitality Co.1      196,800       2,587,920    
Entertainment Properties Trust1      28,700       1,420,650    
Jones Lang LaSalle, Inc.     87,100       6,776,380    
LaSalle Hotel Properties1      44,850       1,229,339    
Sunstone Hotel Investors, Inc.     131,200       2,183,168    
      18,731,633    
Road & rail—1.34%  
Forward Air Corp.1      99,000       3,069,000    
Landstar System, Inc.1      50,000       2,501,500    
YRC Worldwide, Inc.1,*     70,150       1,284,447    
      6,854,947    
Semiconductor equipment & products—0.53%  
Entegris, Inc.1,*     352,000       2,710,400    
Software—1.13%  
MSC. Software Corp.*     245,000       3,180,100    
Solera Holdings, Inc.*     114,000       2,598,060    
      5,778,160    
Specialty retail—5.07%  
Asbury Automotive Group, Inc.     73,850       1,047,193    
Borders Group, Inc.1      246,000       2,769,960    
Cabela's, Inc.1,*     103,150       1,521,463    
Charlotte Russe Holding, Inc.*     94,600       1,705,638    
Children's Place Retail
Stores, Inc.1,*		     139,000       2,577,060    
Dress Barn, Inc.1,*     162,950       1,986,360    
Group 1 Automotive, Inc.1      166,750       4,408,870    
Gymboree Corp.*     60,400       2,308,488    
Men's Wearhouse, Inc.     68,050       1,734,594    
Penske Automotive Group, Inc.1      67,450       1,224,892    
Sonic Automotive, Inc.1      119,600       2,397,980    
Tiffany & Co.     54,100       2,158,590    
      25,841,088    

 

Security description   Number
of shares		   Value  
Textiles & apparel—0.64%  
UniFirst Corp.     73,600     $ 3,005,824    
Volcom, Inc.*     11,700       236,106    
      3,241,930    
Trading companies & distributors—0.13%  
Huttig Building Products, Inc.2,*     162,000       646,380    
Wireless telecommunication services—0.43%  
iPCS, Inc.1      85,000       2,187,050    
Total common stocks
(cost—$514,380,659)		             489,861,116    
    Face
amount		      
Repurchase agreement—3.66%  
Repurchase agreement dated
01/31/08 with State Street
Bank & Trust Co., 1.400%,
due 02/01/08, collateralized by
$2,179,464 US Treasury Bills,
zero coupon due 05/01/08,
$1,371,063 US Treasury Bonds,
8.125% due 08/15/19 and
$14,123,539 US Treasury Notes,
4.750% due 12/31/08 to
01/31/12; (value—$19,038,390);
proceeds: $18,665,726
(cost—$18,665,000)		   $ 18,665,000       18,665,000    
    Number of
shares		      
Investments of cash collateral from securities loaned—26.70%  
Money market funds3—26.70%  
AIM Prime Portfolio, 3.663%     5,591       5,591    
BlackRock Provident Institutional
TempFund, 4.123%		     20,967,773       20,967,773    
DWS Money Market Series,
4.201%		     19,302,560       19,302,560    
Federated Treasury Obligation
Fund, 1.571%		     10       10    
UBS Private Money Market
Fund LLC,4 3.941%		     95,874,872       95,874,872    
Total money market funds and
investments of cash collateral
from securities loaned
(cost—$136,150,806)		             136,150,806    
Total investments
(cost—$669,196,465)—
126.42%		             644,676,922    
Liabilities in excess of other
assets—(26.42)%		             (134,714,813 )  
Net assets—100.00%   $ 509,962,109    

 


110


UBS PACE Select Advisors Trust

UBS PACE Small/Medium Co Value Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

*  Non-income producing security.

1  Security, or portion thereof, was on loan at January 31, 2008.

2  Illiquid securities representing 0.13% of net assets as of January 31, 2008.

3  Rates shown reflect yield at January 31, 2008.

4  The table below details the Portfolio's transaction activity in an affiliated issuer during the six months ended January 31, 2008.

Security description   Value at
07/31/07		   Purchases
during the
six months
ended
01/31/08		   Sales
during the
six months
ended
01/31/08		   Value at
01/31/08		   Net income
earned from
affiliate for
the six months
ended
01/31/08		  
UBS Private Money Market Fund LLC   $ 177,404,260     $ 317,642,729     $ 399,172,117     $ 95,874,872     $ 299,584    

 

Issuer breakdown by country, commonwealth or territory of origin

    Percentage of
total investments		  
United States     95.4 %  
Bermuda     2.8    
Liberia     1.1    
Marshall Islands     0.4    
Puerto Rico     0.3    
Total     100.0 %  

 

See accompanying notes to financial statements.
111


UBS PACE Select Advisors Trust

UBS PACE Small/Medium Co Growth Equity Investments

Performance

For the six months ended January 31, 2008, the Portfolio's Class P shares declined 7.77% (before deduction of the UBS PACE Select program fee, and declined 8.46% after deduction of the maximum UBS PACE Select program fee for the six month period). In comparison, the Russell 2500 Growth Index (the "benchmark") declined 5.52%, and the median return of the Lipper Mid-Cap Growth Funds category declined 4.83%. (Returns for all share classes over various time periods are shown in the "Performance at a Glance" table on page 116. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.)

Market review

In recent months, the US equity market has been posting declines as the likelihood of a recession has become more widely predicted by strategists and economists. Reflecting the problems in the credit markets, financial and housing stocks have already reached new lows. Fear is pervading the current environment, and bearish investor sentiment is approaching extreme levels. While housing, employment and manufacturing reports demonstrate that the economy is weakening, many believe the slowdown could be relatively short-lived. This is due to the positives associated with continued global growth, proactive monetary stimulus by the Federal Reserve Board, the availability of capital from non-US government and quasi-government sources, and strategic corporate and private equity investors.

Advisors' comments
Riverbridge

During the reporting period, our portion of the Portfolio lagged the benchmark modestly. Our portfolio benefited from its underweighting in consumer stocks and its overweighting in healthcare companies. In both of these sectors, our stocks outperformed their benchmark counterparts. Conversely, our overweight position in the information technology sector detracted from results. Stock selection within the industrial and materials sectors also detracted from our relative performance.

Several of our holdings experienced significant moves in their stock prices during the six-month period. For example, shares of Cepheid, Inc.—which creates fully

UBS PACE Select Advisors Trust – UBS PACE Small/Medium Co Growth
Equity Investments

Advisors:

Copper Rock Capital Partners, LLC ("Copper Rock"), AG Asset Management LLC ("AG Asset Management") and Riverbridge Partners, LLC ("Riverbridge")

Portfolio Managers:

Copper Rock: Tucker Walsh, Michael Malouf and Team

AG Asset Management: Team, led by Beth Dater and Sammy Oh

Riverbridge: Team, led by Mark Thompson

Objective:

Capital appreciation

Investment process:

Copper Rock employs a fundamental, bottom-up investment approach that focuses on identifying emerging companies that exhibit the potential for strong and sustainable revenue growth over each of the following two years. Copper Rock utilizes a "pure" growth investment style that emphasizes growth and momentum characteristics. Copper Rock attempts to manage risk by diversifying and understanding its holdings and employing a stringent sell discipline.

AG Asset Management seeks fundamentally strong and dynamic small- and mid-cap companies that are trading at a discount to their growth rates. AG Asset Management's goal is to ascertain a dynamic of change before it manifests in consensus estimates. AG Asset Management believes that it can be successful because it views the small- and mid-cap market to be inherently less efficient than the large-cap market.


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Advisors' comments – continued

integrated systems for genetic analysis in the clinical molecular diagnostic, industrial and biothreat markets—more than doubled in price. This was due to the approval and rapid adoption of new genetic tests. LKQ Corp. also experienced robust stock price appreciation, driven by the acquisition of its only national competitor.

In contrast, two companies witnessed significant drops in their stock prices. Mobile Mini, Inc., a leading provider of portable storage units, declined due to investor fears of a slowdown in the production activity of their customer base. F5 Networks, Inc., a leading provider of network efficiency solutions, fell due to concerns of lower corporate information technology spending.

Unlike the recent past, we no longer see a market backdrop featuring strong corporate earnings gains and the prospect for above average economic growth. We believe that the two most significant concerns facing investors for 2008 involve the proliferation of the credit crunch and the prospects of a domestic recession. These issues illustrate the merits of our focus: we seek to buy high-quality companies with the ability to grow their earnings regardless of the overall economic backdrop.

We sought to position our portfolio with exposure to companies that are able to internally finance their growth. Therefore, they are not reliant on borrowing, which may be difficult during a credit crunch. In fact, we believe several of our holdings will be in a position to use a difficult environment to strengthen their market position relative to competitors and enter new markets.

AG Asset Management

During the reporting period, our portion of the Portfolio underperformed the benchmark. Growth factors which contributed to our outperformance earlier in the reporting period subsided as investors grew increasingly concerned that the US economy is entering a recessionary phase.

Our portfolio's largest sector allocation was in the technology sector, which lagged the benchmark during the six-month period. Within the sector, our holding in ON Semiconductor Corp. was the worst performer. While the company reduced the guidance it offered with regards to possible earnings, we continue to expect it to grow faster than the industry as it transitions to higher powered, more efficient chipsets. Our holdings in the consumer discretionary sector were the largest detractors from performance as investors continued to worry about housing and the increasing cost of oil. Live Nation1 was our weakest position in the sector, as this spin-off from Clear Channel Communications is struggling to transition from a regional concert promoter to a global talent management and merchandising company. However, some of our holdings in the sector posted gains, including Urban Outfitters, Inc., GameStop Corp. and Crocs, Inc.

Although we viewed the fundamentals of the healthcare sector positively, we remained underweighted because valuations appeared rich to us. We clearly missed a strong-performing sector, underestimating the level of consolidation that would occur during 2007. In this area, we benefited from holding generic drug manufacturer Perrigo Co., which advanced over 65% during the period as it continued to take market share

Investment process (concluded)

Riverbridge believes that earnings power determines the value of a franchise. Riverbridge focuses on companies that are viewed as building their earnings power and building the intrinsic value of the company over long periods of time. Riverbridge looks to invest in high-quality growth companies that demonstrate the ability to sustain strong secular earnings growth, regardless of overall economic conditions.

1  Not held by the Portfolio as of January 31, 2008.


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Advisors' comments – continued

from competitors. As we look into 2008, we are concerned that valuations do not discount the possibility of regulatory changes arising from a White House controlled by the Democratic party.

Our holdings in the financial services sector made the largest overall contribution to performance. Nasdaq Stock Market Inc., a strong performer, has successfully integrated a number of acquisitions and continued to take market share from the New York Stock Exchange. Investment Technology Group, Inc., our second largest contributor, has started to benefit from new international initiatives. The worst performer in the group, East West Bancorp,1 suffered in a continued competitive business environment.

Although our portfolio held only a modest 5% allocation in the energy sector, our stock selection within that sector proved beneficial. Our holding in Denbury Resources Inc. performed well as the company's production and reserve growth exceeded expectations. We have been a longtime believer in this company and its innovative process, which entails injecting carbon dioxide into legacy oilfields to increase and prolong production.

As fundamental long-term investors, we continue to maintain a commitment to seek a diversified group of high quality companies that provide unique products and services, are industry leaders, and have the financial means to allow strong management to execute their business plans. These characteristics remain consistent with our disciplined and fundamental approach to asset management.

Copper Rock

Our portion of the Portfolio lagged the benchmark during the reporting period. This underperformance was due, in part, to stock selection in the producer durables, energy, healthcare and technology sectors. In contrast, stock selection in consumer discretionary, financial services, and consumer staples contributed the most to performance.

On the downside, the healthcare, producer durables, energy and technology sectors were challenging over the six months ended January 31, 2008. Within the healthcare sector, the prevailing uncertainty over healthcare reform and reimbursement legislation negatively impacted some healthcare services companies. In particular, pharmaceutical and medical device companies with new products in the late stages of development fell out of favor as the Food and Drug Administration (FDA) became extremely conservative in their approval process. Despite this environment, we maintained our conviction in our healthcare holdings, and have cautiously added to the sector in recent weeks, as it traditionally has done well in periods of economic slowdown or recession.

Although the technology sector was a leading contributor during most of 2007, stock selection detracted from performance during the six months ended January 31, 2008. In particular, our exposure to the cabling and semiconductor industries negatively impacted performance as corporate technology budgets decelerated once supply caught up with demand. Heading into 2008, we reduced our technology exposure as technology infrastructure spending has shown signs of slowing.

On the upside, a number of stocks in the consumer discretionary sector contributed to performance. These holdings included FTI Consulting, which provides myriad services including bankruptcy consulting, Priceline.com, Inc., an online travel company in the US and Europe and GameStop Corp., a retailer of new and used video games, platforms and software. As the economy weakened in the latter part of 2007, we believed that FTI Consulting, which has continued to gain market share in the email and business forensics analysis

1  Not held by the Portfolio as of January 31, 2008.


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Advisors' comments – concluded

area, would also be well positioned to earn additional market share assisting companies with bankruptcy concerns and financial problems.

During the reporting period, we continued to favor companies benefiting from the cycle that began in 2006 when Nintendo, Microsoft and Sony launched upgraded videogame platforms. We feel that GameStop should continue to benefit as the premier seller and reseller of video games and equipment. We also believe the company should maintain its competitive lead against larger, traditional retailers through its exhaustive training of staff and devoted customer base. We also held Activision, Inc., which has continually launched new games for the array of existing game consoles. Elsewhere, during the period we benefited from our holdings in education services companies such as Capella Education and Strayer Education Inc.

Special considerations

The Portfolio may be appropriate for long-term investors seeking capital appreciation who are able to withstand short-term fluctuations in the equity markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan. In addition, small- and mid-cap companies are typically subject to a greater degree of change in earnings and business prospects than are larger, more established companies. Therefore, they are considered to have a higher level of volatility and risk. Also, to the extent the Portfolio invests a large portion of its assets in technology companies, the Portfolio may experience greater volatility and risk of loss due to unfavorable developments in the technology sector.


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Performance at a glance (unaudited)  
Average annual total returns for periods ended 01/31/08       6 months   1 year   5 years   10 years   Since
inception1 		  
Before deducting   Class A2      -7.86 %     0.32 %     12.51 %     N/A       1.47 %  
maximum sales   Class B3      -8.27 %     -0.55 %     11.50 %     N/A       0.76 %  
charge or UBS PACE   Class C4      -8.22 %     -0.40 %     11.62 %     N/A       0.70 %  
Select program fee   Class Y5      -7.66 %     0.70 %     12.92 %     N/A       3.93 %  
  Class P6      -7.77 %     0.51 %     12.73 %     8.72 %     9.03 %  
After deducting   Class A2      -12.94 %     -5.17 %     11.24 %     N/A       0.68 %  
maximum sales   Class B3      -12.13 %     -4.73 %     11.24 %     N/A       0.76 %  
charge or UBS PACE   Class C4      -8.99 %     -1.24 %     11.62 %     N/A       0.70 %  
Select program fee   Class P6      -8.46 %     -0.99 %     11.05 %     7.10 %     7.41 %  
Russell 2500 Growth Index       -5.52 %     -2.35 %     15.96 %     5.86 %     7.28 %  
Lipper Mid-Cap Growth Funds median         -4.83 %     2.04 %     14.41 %     6.92 %     8.64 %  

 

Average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: Class A—1-year period, 9.55%; 5-year period 13.24%; since inception, 2.48%; Class B—1-year period, 10.19%; 5-year period, 13.29%; since inception, 2.56%; Class C—1-year period, 14.12%; 5-year period, 13.63%; since inception, 2.51%; Class Y—1-year period, 16.38%; 5-year period, 14.95%; since inception, 5.87%; Class P—1-year period, 14.48%; 5-year period, 13.07%; 10-year period, 8.29%; since inception, 8.57%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 30, 2007 prospectuses were as follows: Class A—1.30% and 1.30%; Class B—2.30% and 2.13%; Class C—2.08% and 2.08%; Class Y—0.93% and 0.93%; and Class P—1.16% and 1.13%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The portfolio and UBS Global AM have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse the portfolio so that the ordinary total operating expenses of each class through November 30, 2008 (excluding dividend expense, borrowing costs and interest expense, if any) would not exceed Class A—1.38%; Class B—2.13%; Class C—2.13%; Class Y—1.13%; and Class P—1.13%. The portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the portfolio's expenses in any of those three years to exceed these expense caps described above.

1  Since inception returns are calculated as of commencement of issuance on August 24, 1995 for Class P shares, November 27, 2000 for Class A, B, and C shares and February 12, 2001 for Class Y shares. Since inception returns for the Index and Lipper median are shown as of August 31, 1995, which is the month-end after the inception date of the oldest share class (Class P).

2  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

3  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

4  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

5  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

6  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual UBS PACE Select program fee of 1.5% of the value of Class P shares.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

The Russell 2500 Growth Index measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth rates.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for the period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.


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Portfolio statistics (unaudited)

Characteristics   01/31/08  
Net assets (mm)   $ 536    
Number of holdings     190    
Portfolio composition1    01/31/08  
Common stocks, investment company     95.2 %  
ADRs     1.4    
Cash equivalents and other assets less liabilities     3.4    
Total     100.0 %  
Top five sectors1    01/31/08  
Information technology     23.3 %  
Industrials     23.1    
Health care     19.8    
Consumer discretionary     11.7    
Financials     7.3    
Total     85.2 %  
Top ten equity holdings1    01/31/08  
BE Aerospace     1.8 %  
MF Global Ltd.     1.7    
Nuance Communications     1.4    
Pediatrix Medical Group     1.4    
Chicago Bridge & Iron     1.3    
FTI Consulting     1.3    
Huron Consulting Group     1.2    
Strayer Education     1.2    
Cepheid     1.2    
Urban Outfitters     1.1    
Total     13.6 %  

 

1  Weightings represent percentages of the Portfolio's net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time.

ADR  American Depositary Receipt


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Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—96.09%
Security description		   Number
of shares		   Value  
Aerospace & defense—3.31%  
AAR Corp.*     77,405     $ 2,280,351    
BE Aerospace, Inc.*     245,081       9,462,577    
Curtiss-Wright Corp.     48,325       2,015,153    
Ladish Co, Inc.1,*     49,579       1,759,559    
Spirit Aerosystems Holdings, Inc.,
Class A*		     80,510       2,223,686    
      17,741,326    
Air freight & couriers—0.32%  
Dynamex, Inc.*     69,000       1,718,790    
Auto components—1.46%  
Gentex Corp.     263,000       4,171,180    
LKQ Corp.*     205,000       3,667,450    
      7,838,630    
Banks—0.23%  
Prosperity Bancshares, Inc.1      42,500       1,221,875    
Biotechnology—4.58%  
Alexion Pharmaceuticals, Inc.*     33,960       2,218,267    
Cepheid, Inc.1,*     204,675       6,250,775    
Lifecell Corp.1,*     114,773       4,534,681    
Millennium Pharmaceuticals, Inc.*     95,020       1,441,453    
Neogen Corp.*     133,323       3,198,419    
Progenics Pharmaceuticals, Inc.1,*     69,226       1,131,153    
Techne Corp.*     50,000       3,250,000    
United Therapeutics Corp.*     30,310       2,545,434    
      24,570,182    
Chemicals—0.68%  
Landec Corp.*     200,000       1,864,000    
Spartech Corp.     120,000       1,767,600    
      3,631,600    
Commercial services & supplies—11.34%  
Atlas Air Worldwide
Holdings, Inc.*		     31,475       1,571,862    
Bright Horizons Family
Solutions, Inc.*		     56,595       2,409,249    
Capella Education Co.*     42,808       2,700,329    
Cenveo, Inc.1,*     218,150       3,390,051    
FTI Consulting, Inc.*     122,999       6,803,075    
G & K Services, Inc., Class A     73,000       2,917,810    
Huron Consulting Group, Inc.*     89,898       6,456,474    
Iconix Brand Group, Inc.1,*     119,875       2,492,201    
Intermec, Inc.1,*     106,850       2,128,452    
ITT Educational Services, Inc.*     44,240       4,041,324    
Mobile Mini, Inc.*     90,000       1,368,000    
Monster Worldwide, Inc.*     67,634       1,883,607    
New Oriental Education &
Technology Group, Inc., ADR*		     39,920       2,261,468    
Resources Connection, Inc.     187,650       3,927,514    
Rollins, Inc.     247,500       4,403,025    
Strayer Education, Inc.     36,460       6,292,267    

 

Security description   Number
of shares		   Value  
Commercial services & supplies—(concluded)  
Universal Technical
Institute, Inc.1,*		     60,000     $ 892,800    
VistaPrint Ltd.1,*     70,700       2,630,747    
Waste Connections, Inc.*     77,469       2,258,996    
      60,829,251    
Communications equipment—1.86%  
Comtech Group, Inc.*     81,628       878,317    
Digi International, Inc.*     312,000       3,653,520    
Echelon Corp.1,*     151,000       1,984,140    
F5 Networks, Inc.*     83,580       1,966,638    
Harris Corp.     27,226       1,487,400    
      9,970,015    
Computers & peripherals—0.93%  
Focus Media Holding
Ltd., ADR1,*		     40,850       1,962,842    
Stratasys, Inc.1,*     136,000       3,005,600    
      4,968,442    
Construction & engineering—1.76%  
Chicago Bridge & Iron Co. N.V.     157,495       7,006,953    
Quanta Services, Inc.*     111,348       2,440,748    
      9,447,701    
Containers & packaging—0.39%  
Silgan Holdings, Inc.     44,750       2,119,360    
Diversified financials—6.02%  
Affiliated Managers
Group, Inc.1,*		     15,430       1,516,923    
Bankrate, Inc.1,*     36,475       1,978,039    
Cohen & Steers, Inc.1      66,725       1,900,995    
FCStone Group, Inc.*     42,352       1,878,311    
GFI Group, Inc.*     40,365       3,560,597    
Investment Technology
Group, Inc.*		     76,945       3,614,107    
MF Global Ltd.*     295,805       8,888,940    
Nasdaq Stock Market, Inc.*     58,225       2,694,071    
Nymex Holdings, Inc.     22,190       2,551,850    
Portfolio Recovery
Associates, Inc.1 		     101,145       3,677,632    
      32,261,465    
Diversified telecommunication services—1.36%  
Cbeyond, Inc.*     90,197       3,043,247    
Time Warner Telecom,
Inc., Class A1,*		     242,800       4,244,144    
      7,287,391    
Electrical equipment—1.11%  
General Cable Corp.1,*     71,200       4,130,312    
SunPower Corp., Class A1,*     26,615       1,838,830    
      5,969,142    
Electronic equipment & instruments—2.25%  
Greatbatch, Inc.*     133,000       3,003,140    

 


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Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
Electronic equipment & instruments—(concluded)  
Itron, Inc.1,*     18,169     $ 1,497,126    
Napco Security Systems, Inc.*     115,750       685,240    
Riverbed Technology, Inc.*     152,508       3,408,554    
Taser International, Inc.1,*     150,670       1,731,198    
Tech Data Corp.*     50,000       1,719,000    
      12,044,258    
Energy equipment & services—1.84%  
Dresser-Rand Group, Inc.*     70,545       2,236,276    
Energy Conversion
Devices, Inc.1,*		     91,750       2,117,590    
W-H Energy Services, Inc.*     113,000       5,497,450    
      9,851,316    
Food & drug retailing—1.36%  
Performance Food Group Co.*     96,000       3,036,480    
United Natural Foods, Inc.*     177,255       4,250,575    
      7,287,055    
Food products—0.92%  
Hain Celestial Group, Inc.*     92,000       2,484,000    
USANA Health Sciences, Inc.1,*     57,000       2,470,950    
      4,954,950    
Gas utilities—0.79%  
Southern Union Co.     156,550       4,255,029    
Health care equipment & supplies—6.97%  
Abaxis, Inc.*     88,745       2,888,650    
AngioDynamics, Inc.1,*     220,775       4,475,109    
ArthroCare Corp.1,*     58,000       2,321,740    
Beckman Coulter, Inc.     30,850       2,051,525    
Conceptus, Inc.1,*     103,267       1,681,187    
Cooper Cos., Inc.     72,025       2,836,344    
Endologix, Inc.*     203,700       560,175    
I-Flow Corp.1,*     109,466       1,565,364    
Illumina, Inc.*     68,850       4,385,745    
Intuitive Surgical, Inc.*     12,680       3,220,720    
MEDTOX Scientific, Inc.*     62,500       1,104,375    
ResMed, Inc.*     76,500       3,563,370    
Somanetics Corp.*     79,316       2,125,669    
SurModics, Inc.*     39,000       1,702,740    
West Pharmaceutical Services, Inc.     73,975       2,892,422    
      37,375,135    
Health care providers & services—5.37%  
Advisory Board Co.*     50,000       3,186,000    
Henry Schein, Inc.*     40,875       2,376,064    
MAXIMUS, Inc.     107,000       3,774,960    
Omnicell, Inc.*     75,030       1,881,752    
Pediatrix Medical Group, Inc.*     111,369       7,583,115    
Psychiatric Solutions, Inc.*     162,240       4,894,781    
Universal Health Services,
Inc., Class B		     67,500       3,181,275    
VCA Antech, Inc.*     49,720       1,922,175    
      28,800,122    

 

Security description   Number
of shares		   Value  
Hotels, restaurants & leisure—3.76%  
Boyd Gaming Corp.1      64,219     $ 1,716,574    
Burger King Holdings, Inc.     63,400       1,670,590    
Cheesecake Factory, Inc.1,*     148,000       3,233,800    
Morgans Hotel Group1,*     106,175       1,546,970    
Penn National Gaming, Inc.*     39,329       2,051,007    
Pinnacle Entertainment, Inc.*     104,363       1,904,625    
Scientific Games Corp., Class A*     126,486       3,010,367    
Vail Resorts, Inc.1,*     106,050       5,020,407    
      20,154,340    
Industrial conglomerates—1.00%  
Chemed Corp.1      105,185       5,388,628    
Insurance—0.77%  
eHealth, Inc.*     95,720       2,506,907    
HCC Insurance Holdings, Inc.     59,268       1,651,206    
      4,158,113    
Internet & catalog retail—0.87%  
GSI Commerce, Inc.*     82,680       1,346,030    
Priceline.com, Inc.1,*     30,390       3,297,923    
      4,643,953    
Internet software & services—3.43%  
Akamai Technologies, Inc.*     64,244       1,940,169    
Allscripts Healthcare
Solutions, Inc.1,*		     100,000       1,483,000    
DealerTrack Holdings, Inc.*     132,142       3,562,548    
Equinix, Inc.1,*     46,890       3,541,602    
McAfee, Inc.*     94,900       3,194,334    
SINA Corp.*     47,245       1,875,626    
Sohu.com, Inc.*     59,675       2,776,678    
      18,373,957    
IT consulting & services—1.40%  
Forrester Research, Inc.*     91,535       2,196,840    
Innerworkings, Inc.1,*     178,365       2,470,355    
SAIC, Inc.*     100,520       1,899,828    
SRA International, Inc., Class A*     34,680       951,273    
      7,518,296    
Machinery—1.79%  
Bucyrus International,
Inc., Class A		     37,750       3,499,803    
Kaydon Corp.1      65,805       2,875,020    
Middleby Corp.1,*     53,800       3,207,018    
      9,581,841    
Marine—0.30%  
Cal Dive International, Inc.1,*     171,783       1,628,503    
Media—0.69%  
Airmedia Group, Inc.1,*     54,949       1,257,783    
Brocade Communications
Systems, Inc.*		     356,300       2,454,907    
      3,712,690    

 


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Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(concluded)
Security description		   Number
of shares		   Value  
Multi-line retail—0.45%  
BJ's Wholesale Club, Inc.*     74,900     $ 2,429,756    
Oil & gas—3.94%  
Aegean Marine Petroleum
Network, Inc.		     67,790       2,216,055    
Arena Resources, Inc.*     51,804       1,842,668    
ATP Oil & Gas Corp.1,*     46,870       1,764,187    
Carrizo Oil & Gas, Inc.1,*     51,325       2,498,501    
Denbury Resources, Inc.*     135,653       3,432,021    
Exterran Holdings, Inc.*     44,057       2,874,279    
Parallel Petroleum Corp.*     287,480       3,990,222    
SandRidge Energy, Inc.1,*     81,820       2,489,783    
      21,107,716    
Pharmaceuticals—2.88%  
AMAG Pharmaceuticals, Inc.*     42,820       2,207,799    
Barr Pharmaceuticals, Inc.*     41,150       2,147,619    
Medicis Pharmaceutical
Corp., Class A1 		     120,000       2,437,200    
Perrigo Co.     106,700       3,290,628    
Shire PLC, ADR     60,030       3,232,615    
Theravance, Inc.*     108,610       2,142,875    
      15,458,736    
Real estate—0.29%  
Brookdale Senior Living, Inc.1      68,945       1,538,852    
Road & rail—1.73%  
Forward Air Corp.     72,000       2,232,000    
Kansas City Southern*     102,935       3,693,308    
Landstar System, Inc.     45,275       2,265,108    
Old Dominion Freight Line, Inc.*     37,800       1,101,870    
      9,292,286    
Semiconductor equipment & products—5.23%  
ANADIGICS, Inc.1,*     138,295       1,381,567    
Atmel Corp.*     612,675       1,936,053    
Cavium Networks, Inc.*     199,047       3,803,788    
Entegris, Inc.*     330,002       2,541,015    
Microsemi Corp.1,*     141,303       3,210,404    
ON Semiconductor Corp.1,*     383,715       2,486,473    
Power Integrations, Inc.*     103,000       2,624,440    
Rudolph Technologies, Inc.*     83,000       850,750    
Semtech Corp.*     231,320       2,953,957    
Tessera Technologies, Inc.*     129,040       5,054,497    
Varian Semiconductor
Equipment Associates, Inc.*		     36,775       1,184,523    
      28,027,467    
Software—8.59%  
Activision, Inc.*     162,760       4,210,601    
Ansoft Corp.*     100,000       2,124,000    
Commvault Systems, Inc.*     167,580       3,120,340    
FARO Technologies, Inc.*     70,000       1,671,600    
Gartner, Inc.*     143,400       2,129,490    
Informatica Corp.*     169,574       3,274,474    

 

Security description   Number
of shares		   Value  
Software—(concluded)  
Lawson Software, Inc.1,*     261,705     $ 2,274,216    
Metavante Technologies, Inc.     68,775       1,523,366    
National Instruments Corp.     166,000       4,458,760    
Nuance Communications, Inc.*     481,675       7,653,816    
Omniture, Inc.1,*     31,700       783,624    
Quest Software, Inc.*     265,250       3,965,487    
Synopsys, Inc.*     57,630       1,269,013    
Ultimate Software Group, Inc.*     202,735       5,483,982    
Verint Systems, Inc.*     115,150       2,130,275    
      46,073,044    
Specialty retail—2.66%  
Aeropostale, Inc.*     81,940       2,308,250    
Dick's Sporting Goods, Inc.*     41,830       1,361,566    
GameStop Corp., Class A*     57,820       2,991,029    
Pacific Sunwear of California, Inc.*     168,565       1,874,443    
Urban Outfitters, Inc.*     198,185       5,747,365    
      14,282,653    
Textiles & apparel—1.46%  
Crocs, Inc.1,*     49,825       1,733,412    
Guess?, Inc.     95,350       3,557,508    
Phillips-Van Heusen Corp.     59,950       2,526,293    
      7,817,213    
Total common stocks
(cost—$514,713,231)		             515,331,079    
Investment company—0.51%  
iShares Russell 2000 Growth Index
Fund (cost—$2,762,390)		     36,660       2,762,390    
    Face
amount		      
Repurchase agreement—4.31%  
Repurchase agreement dated
01/31/08 with State Street
Bank & Trust Co., 1.400%
due 02/01/08, collateralized
by $2,698,962 US Treasury Bills,
zero coupon due 05/01/08,
$1,697,870 US Treasury Bonds,
8.125% due 08/15/19 and
$17,490,035 US Treasury Notes,
4.750% due 12/31/08 to
01/31/12; (value—$23,576,392)
proceeds: $23,114,899
(cost—$23,114,000)		   $ 23,114,000       23,114,000    

 


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UBS PACE Small/Medium Co Growth Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Security description   Number
of shares		   Value  
Investments of cash collateral from securities loaned—17.05%  
Money market funds2—17.05%  
AIM Prime Portfolio,
3.663%		     66     $ 66    
BlackRock Provident
Institutional TempFund,
4.123%		     10,208,875       10,208,875    
DWS Money Market Series,
4.201%		     32,638       32,638    
Federated Treasury
Obligation Fund,
1.571%		     8       8    
UBS Private Money Market
Fund LLC,3
3.941%		     81,173,868       81,173,868    
Total money market funds and
investments of cash collateral
from securities loaned
(cost—$91,415,455)		             91,415,455    

 

    Value  
Total investments
(cost—$632,005,076)—
117.96%		   $ 632,622,924    
Liabilities in excess of other
assets—(17.96)%		     (96,311,971 )  
Net assets—100.00%   $ 536,310,953    

 

*  Non-income producing security.

1  Security, or portion thereof, was on loan at January 31, 2008.

2  Rates shown reflect yield at January 31, 2008.

3  The table below details the Portolio's transaction activity in an affiliated issuer during the six months ended January 31, 2008.

Security description   Value at
07/31/07		   Purchases
during the
six months
ended
01/31/08		   Sales
during the
six months
ended
01/31/08		   Value at
01/31/08		   Net income
earned from
affiliate for
the six months
ended
01/31/08		  
UBS Private Money Market Fund LLC   $ 82,596,473     $ 207,147,104     $ 208,569,709     $ 81,173,868     $ 442,274    

 

ADR  American Depositary Receipt

Issuer breakdown by country or territory of origin

    Percentage of
total investments		  
United States     95.0 %  
Bermuda     1.8    
Cayman Islands     1.2    
Netherlands     1.1    
United Kingdom     0.5    
Marshall Islands     0.4    
Total     100.0 %  

 

See accompanying notes to financial statements.
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Performance

For the six months ended January 31, 2008, the Portfolio's Class P shares declined 7.21% (before the deduction of the maximum UBS PACE Select program fee and declined 7.91% after the deduction of the maximum UBS PACE Select program fee for the six month period). In comparison, the MSCI Europe, Australasia, Far East Free ("EAFE") Index (the "benchmark") declined 7.52%, and the median return for the Lipper International Large-Cap Growth Funds category declined 3.56%. (Returns for all share classes over various time periods are shown in the "Performance at a Glance" table on page 125. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.)

Market review

The international equity markets were highly volatile over this period as investors struggled with an uncertain global economic outlook and the continuing credit rout in the financial sector. During the six-month period ended January 31, 2008, all EAFE currencies (Europe, Australasia, Far East), with the exception of the British pound, rose against the US dollar. Hong Kong was the strongest market, rising nearly 10% over the period, while the weakest market in the benchmark was Sweden, which fell sharply. Japan also performed poorly, as its economic environment appears to be worsening. A number of factors negatively impacted Japan's economy, including a decline in consumer confidence, an increase in the jobless rate, and slowing capital spending. In addition, Japanese housing investment suffered from the government regulations introduced in June 2007.

Advisors' comments
Martin Currie

Our portion of the Portfolio underperformed the benchmark during the reporting period. While our asset allocation was broadly supportive, our stock selection was the principal cause of our underperformance. Much of this was driven by the panic-driven losses many previously high-flying stocks endured in January 2008, which caused many stocks to be sold for reasons unconnected to their fundamentals. However, we expect these stocks to bounce back strongly as their fundamentals reassert themselves in a calmer environment.

UBS PACE Select Advisors Trust – UBS PACE International Equity Investments

Advisors:

Martin Currie Inc. ("Martin Currie"), Mondrian Investment Partners Limited ("Mondrian") and JPMorgan Investment Management Inc. ("JPMorgan")

Portfolio Managers:

Martin Currie: Team, led by James Fairweather; Mondrian: Team; JPMorgan: Beltran Lastra and Jaco Venter

Objective:

Capital appreciation

Investment process:

Martin Currie has a highly active "conviction" approach, seeking the best opportunities for growth across global stock markets. Martin Currie identifies "change" as the central dynamic behind stock price movement. This means recognizing change at the company level (management changes, product strategies, acquisitions, etc.) and at the macro level (legislative changes, economic prospects, sector dynamics, etc.). Determining the impact of these changes may lead to outperformance. Martin Currie believes its investment process allows it to identify, evaluate and exploit change at an early stage in clients' portfolios. In managing its segment of the Portfolio's assets, Martin Currie uses a fully integrated international investment process. So rather than running distinct regional portfolios, it compares and ranks stock opportunities across the whole investment universe. To help identify and evaluate the best stock ideas, Martin Currie employs fundamental company and sector research, together with its own proprietary quantitative screening tool, the Dynamic Stock MatrixTM. The result is a committed

(continued on next page)


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Advisors' comments – continued

While our underweighting in Japan was beneficial to performance, our industries selection in the country detracted from results. Poor performers included Sumitomo Heavy Industries Ltd. and Hitachi Construction Machinery Co. Ltd., both of which suffered from the growing concerns about the outlook for the global economy.

We experienced good returns from our exposure to emerging markets equities, especially in Asia where our stock selection was strongly positive. Here, we benefited from companies exposed to growing demand in China, with China Mobile and Sun Hung Kai Properties generating solid results. Our strongest performance came from Hong Kong Exchanges & Clearing Ltd., which benefited from rising trading volume on hopes of massive inflows from the Chinese mainland.

Among our European holdings, we also benefited from a tilt towards emerging markets. Millicom, a Sweden-based telecom group with substantial exposure to Latin America and Africa, delivered strong performance after its results came in ahead of expectations. However, our overall stock selection in Europe was a major negative. For example, Hypo Real Estate Holding failed to avoid downgrades amid concerns about the real estate outlook and its exposure to collateralized debt obligations. French chemicals group Rhodia also had a negative impact on performance, and we eliminated the position towards the end of the reporting period.

On the whole, the portfolio is overweighted in industrials, utilities, telecoms and information technology, and underweighted in energy, materials, consumer stocks and healthcare, with a small underweighting in financials.

JPMorgan

During the reporting period our portion of the Portfolio underperformed the benchmark. From a sector perspective, basic industries, transport and consumer cyclicals detracted from performance, while the auto and telecom sectors contributed to performance. Regionally, our positions in continental Europe and the UK hurt our overall returns, while Japan and the Pacific Rim added value.

In terms of individual stocks, Taylor Wimpey, a UK-based homebuilder, was a major detractor from performance. Its shares have been hit by concerns that tighter credit conditions would continue to undermine business both in

Investment process (concluded)

and distinctive EAFE (that is, Europe, Australasia, Far East) portfolio that reflects what Martin Currie believes are the best investment opportunities internationally.

Mondrian conducts research on a global basis in an effort to identify securities that have the potential for long-term total return. The center of the research effort is a value-oriented dividend discount methodology toward individual securities and market analysis that attempts to identify value across country boundaries. This approach focuses on future anticipated dividends, and discounts the value of those dividends back to what they would be worth if they were being paid today. Comparisons of the values of different possible investments are then made. In an international portfolio, currency returns can be an integral component of an investment's total return. Mondrian uses a purchasing power parity approach to assess the value of individual currencies. Purchasing power parity attempts to identify the amount of goods and services that a dollar will buy in the United States, and compares that to the amount of a foreign currency required to buy the same amount of goods and services in another country.

JPMorgan manages its segment of the Portfolio's assets using a bottom-up, research-driven strategy that seeks to generate risk characteristics that closely match those of the benchmark, yet at the same time capitalize on the information advantage created by the firm's proprietary research capabilities to generate outperformance. The strategy is driven by valuation-based fundamental analysis, focused on normalized earnings and earnings growth. The team seeks to maintain regional weights and sector/industry weights close to those of the benchmark. Stock selection is the focus, being the expected primary source of added value.


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Advisors' comments – concluded

the UK and the US. However, despite the impact of higher UK interest rates and a slowdown in the US housing market, management recently raised its earnings forecasts. We remain confident in the company, as it continues to exploit the synergies generated by the merger between the Taylor Woodrow and George Wimpey companies. Orkla, Norway's largest producer of consumer goods, also detracted from performance as rising raw material costs undermined the company's food division.

On a more positive note, Nokia, the Finnish maker of cellular handsets and switching equipment, was the largest contributor to performance. The company's earnings have met or exceeded expectations for several quarters running, driven by sales in emerging markets countries. Nokia reclaimed market share in those areas and improved handset average selling prices. Investors also reacted positively as the company unveiled new handsets in conjunction with launching new online music and gaming services, allowing Nokia to effectively compete against Apple's iPhone and iTunes. Daikin Industries Ltd., a Japanese manufacturer of air conditioning equipment, also performed well during the reporting period. The company announced strong fiscal second half results, with revenue growth increasing approximately 50% and profit growth increasing approximately 100%. This strength is mainly due to increasing demand for air conditioning units in Europe and Asia, in addition to the revenue boost from a new Czech-based factory. Daikin's energy-saving products are also gaining market share.

Mondrian

Our portion of the Portfolio saw strong relative returns, outperforming the benchmark. Sector and stock selection were both positive contributors to performance. In contrast, our currency exposures detracted from performance. In particular, our underweight position in the yen was detrimental as it rose 12.0% over the reporting period.

Stock selection was positive overall. It was, however, negative in some of the larger European markets such as France and the UK. In addition, some of our financial stocks performed poorly, including Royal Bank of Scotland Group PLC. Its acquisition of portions of ABN AMRO occurred as the credit problems started to take hold in the sector. This bank now has a highly leveraged balance sheet at a time when sentiment in the sector is poor, given the generalized concerns over the weak environments surrounding US banking, wholesale banking, structured credit and commercial property.

In the Pacific region, most notably in Japan and Hong Kong, stock selection enhanced performance. One stock that performed strongly was Wharf Holdings Ltd. in Hong Kong. Declining US interest rates and strong trade between China and the rest of the world has helped this stock. Furthermore, we believe its dynamic move into property development in China will support strong earnings going forward.

On a country level, our overweighted position in Spain and a zero weight in Sweden bolstered performance. Sector contribution from the Pacific region was also markedly positive. An overweight position in Australia and an underweight position in Japan benefited performance, as did exposure in Taiwan.

Special considerations

The Portfolio may be appropriate for long-term investors seeking capital appreciation who are able to withstand short-term fluctuations in the equity markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan. The value of the Portfolio's investments in foreign securities may fall due to adverse political, social, and economic developments abroad and due to decreases in foreign currency values relative to the US dollar. These risks are greater for investments in emerging market issuers than for issuers in more developed countries.


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Performance at a glance (unaudited)

Average annual total returns for periods ended 01/31/08       6 months   1 year   5 years   10 years   Since
inception1 		  
Before deducting   Class A2      -7.33 %     0.11 %     20.21 %     N/A       5.64 %  
maximum sales charge   Class B3      -7.75 %     -0.73 %     19.05 %     N/A       4.81 %  
or UBS PACE   Class C4      -7.70 %     -0.69 %     19.24 %     N/A       4.79 %  
Select program fee   Class Y5      -7.12 %     0.52 %     20.70 %     N/A       6.43 %  
    Class P6      -7.21 %     0.38 %     20.56 %     6.55 %     7.27 %  
After deducting   Class A2      -12.44 %     -5.42 %     18.86 %     N/A       4.80 %  
maximum sales charge   Class B3      -11.85 %     -5.15 %     18.85 %     N/A       4.81 %  
or UBS PACE   Class C4      -8.52 %     -1.57 %     19.24 %     N/A       4.79 %  
Select program fee   Class P6      -7.91 %     -1.12 %     18.76 %     4.96 %     5.68 %  
MSCI EAFE Index       -7.52 %     0.22 %     20.28 %     7.13 %     7.25 %  
Lipper International Large-Cap Growth Funds median         -3.56 %     2.45 %     17.51 %     5.10 %     6.87 %  

 

Average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: Class A—1-year period, 4.77%; 5-year period, 20.22%; since inception, 6.30%; Class B—1-year period, 4.97%; 5-year period, 20.22%; since inception, 6.30%; Class C—1-year period, 8.94%; 5-year period, 20.58%; since inception, 6.29%; Class Y—1-year period, 11.21%; 5-year period, 22.10%; since inception, 7.99%; Class P—1-year period, 9.42%; 5-year period, 20.12%; 10-year period, 6.14%; since inception, 6.55%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 30, 2007 prospectuses were as follows: Class A—1.38% and 1.38%; Class B—2.27% and 2.27%; Class C—2.18% and 2.18%; Class Y—1.02% and 1.02%; and Class P—1.12% and 1.12%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses.

1  Since inception returns are calculated as of commencement of issuance on August 24, 1995 for Class P shares, November 27, 2000 for Class A, B, and C shares and January 17, 2001 for Class Y shares. Since inception returns for the Index and Lipper median are shown as of August 31, 1995, which is the month-end after the inception date of the oldest share class (Class P).

2  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

3  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

4  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

5  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

6  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual UBS PACE Select program fee of 1.5% of the value of Class P shares.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

The MSCI EAFE Index is an index of stocks from 21 countries designed to measure the investment returns of developed economies outside of North America.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for the period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.


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Portfolio statistics (unaudited)

Characteristics   01/31/08  
Net assets (bn)   $ 1.3    
Number of holdings     271    
Portfolio composition1    01/31/08  
Common stocks and preferred stocks     97.0 %  
ADRs and GDRs     1.3    
Futures and forward foreign currency contracts     0.0 2   
Cash equivalents and other assets less liabilities     1.7    
Total     100.0 %  
Regional allocation1    01/31/08  
Europe     67.9 %  
Asia     24.0    
Oceania     5.4    
The Americas     0.6    
Africa     0.4    
Futures and forward foreign currency contracts     0.0 2   
Cash equivalents and other assets less liabilities     1.7    
Total     100.0 %  
Top five countries (equity investments)1    01/31/08  
United Kingdom     20.5 %  
Japan     17.3    
Germany     9.9    
France     8.3    
Spain     6.8    
Total     62.8 %  
Top five sectors1    01/31/08  
Financials     25.8 %  
Telecommunication services     11.7    
Industrials     10.8    
Consumer discretionary     8.5    
Energy     8.0    
Total     64.8 %  
Top ten equity holdings1    01/31/08  
Telefonica     2.8 %  
BP     2.1    
RWE AG     2.0    
Nokia Oyj     1.8    
Banco Santander Central Hispano SA     1.7    
UniCredito Italiano SpA     1.6    
Royal Bank of Scotland     1.5    
Takeda Pharmaceutical     1.5    
E.ON AG     1.5    
GlaxoSmithKline     1.5    
Total SA     1.4    
Total     19.4 %  

 

1  Weightings represent percentages of the Portfolio's net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time.

2  Weighting represents less than 0.05% of the Portfolio's net assets as of January 31, 2008.

ADR  American Depositary Receipt

GDR  Global Depositary Receipt


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Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—97.91%
Security description		   Number
of shares		   Value  
Australia—5.08%  
Airlines—0.23%  
Qantas Airways Ltd.     713,080     $ 3,025,013    
Banks—1.22%  
Australia & New Zealand
Banking Group Ltd.		     82,027       1,946,169    
National Australia Bank Ltd.     400,022       12,639,883    
Westpac Banking Corp.     66,724       1,558,938    
      16,144,990    
Beverages—0.76%  
Foster's Group Ltd.     1,980,851       10,035,758    
Construction materials—0.12%  
CSR Ltd.1      548,688       1,548,820    
Containers & packaging—0.40%  
Amcor Ltd.     854,618       5,289,786    
Diversified financials—0.18%  
Macquarie Group Ltd.1      39,734       2,379,972    
Diversified telecommunication services—1.12%  
Telstra Corp. Ltd.     3,792,964       14,919,488    
Industrial conglomerates—0.42%  
Brambles Ltd.     74,576       724,791    
Wesfarmers Ltd.1      149,838       4,825,537    
      5,550,328    
Metals & mining—0.45%  
BHP Billiton Ltd.1      126,050       4,232,674    
International Ferro
Metals Ltd.*		     404,762       704,278    
Rio Tinto Ltd.     9,049       1,000,838    
      5,937,790    
Oil & gas—0.09%  
Woodside Petroleum Ltd.     28,356       1,198,761    
Transportation infrastructure—0.09%  
Macquarie Infrastructure
Group		     456,527       1,258,822    
Total Australia common stocks     67,289,528    
Austria—0.50%  
Diversified telecommunication services—0.21%  
Telekom Austria AG     98,267       2,742,175    
Oil & gas—0.29%  
OMV AG     53,651       3,856,702    
Total Austria common stocks     6,598,877    
Belgium—1.32%  
Banks—0.05%  
KBC Bancassurance Holding     5,123       653,243    
Diversified financials—0.81%  
Fortis2      394,041       8,809,931    
Fortis3      86,510       1,947,237    

 

Security description   Number
of shares		   Value  
Belgium—(concluded)  
Diversified financials—(concluded)  
Fortis STRIP VVPR*     151,262     $ 2,249    
      10,759,417    
Food & drug retailing—0.46%  
Delhaize Group     79,445       6,082,177    
Total Belgium common stocks     17,494,837    
Brazil—0.59%  
Banks—0.59%  
Unibanco—Uniao de Bancos
Brasileiros SA, GDR1 		     59,400       7,769,520    
Cayman Islands—0.00%  
Diversified telecommunication services—0.00%  
Hutchison Telecommunications
International Ltd.		     20,841       29,248    
Czech Republic—0.76%  
Electric utilities—0.76%  
CEZ     150,068       10,063,623    
Denmark—0.69%  
Banks—0.10%  
Danske Bank A/S     38,103       1,365,081    
Chemicals—0.09%  
Novozymes A/S     15,449       1,207,373    
Marine—0.11%  
A.P. Moller—Maersk A/S,
Class A		     143       1,409,661    
Pharmaceuticals—0.39%  
Novo-Nordisk A/S, Class B     81,856       5,142,307    
Total Denmark common stocks     9,124,422    
Finland—2.89%  
Auto components—0.53%  
Nokian Renkaat Oyj1      208,385       7,081,081    
Communications equipment—1.76%  
Nokia Oyj     633,996       23,316,848    
Construction & engineering—0.03%  
YIT Oyj     17,249       364,315    
Machinery—0.13%  
KCI Konecranes Oyj     58,696       1,784,137    
Paper & forest products—0.42%  
UPM-Kymmene Oyj1      291,167       5,512,340    
Venture capital—0.02%  
Ruukki Group Oyj     74,062       284,079    
Total Finland common stocks     38,342,800    
France—8.27%  
Automobiles—0.86%  
Renault SA     100,066       11,406,970    

 


127


UBS PACE Select Advisors Trust

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Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
France—(concluded)  
Banks—1.00%  
BNP Paribas SA     41,569     $ 4,109,721    
Societe Generale     73,934       9,173,222    
      13,282,943    
Beverages—0.10%  
Pernod Ricard SA     11,816       1,260,122    
Building products—0.55%  
Cie de Saint-Gobain     93,558       7,325,182    
Chemicals—0.17%  
Arkema*     40,442       2,289,642    
Construction & engineering—0.18%  
Alstom     11,955       2,413,885    
Construction materials—0.23%  
Lafarge SA     19,003       2,978,864    
Diversified telecommunication services—0.88%  
France Telecom     331,931       11,723,488    
Electrical equipment—0.18%  
Schneider Electric SA     20,911       2,425,114    
Food & drug retailing—1.18%  
Carrefour SA     119,396       8,397,901    
Casino Guichard-Perrachon SA     65,735       7,243,865    
      15,641,766    
Hotels, restaurants & leisure—0.52%  
Accor SA     90,105       6,898,426    
Insurance—0.15%  
SCOR SE     96,709       2,004,791    
IT consulting & services—0.18%  
Cap Gemini SA     43,798       2,382,843    
Media—0.31%  
Vivendi Universal SA     101,353       4,078,579    
Multi-line retail—0.03%  
PPR     2,811       397,332    
Multi-utilities—0.23%  
Suez SA     49,211       3,009,226    
Suez SA STRIP VVPR*     24,336       362    
      3,009,588    
Oil & gas—1.45%  
Total SA     263,998       19,149,194    
Pharmaceuticals—0.05%  
Sanofi-Aventis     8,302       676,119    
Transportation infrastructure—0.02%  
Vinci SA     4,380       298,716    
Total France common stocks     109,643,564    

 

Security description   Number
of shares		   Value  
Germany—9.54%  
Aerospace & defense—0.10%  
MTU Aero Engines
Holding AG		     25,280     $ 1,355,000    
Airlines—0.27%  
Deutsche Lufthansa AG1      148,070       3,550,738    
Automobiles—0.06%  
DaimlerChrysler AG     8,858       692,940    
Volkswagen AG     540       122,271    
      815,211    
Chemicals—1.40%  
Bayer AG     186,207       15,318,215    
Lanxess     60,423       2,112,816    
Symrise AG*     47,598       1,190,663    
      18,621,694    
Construction materials—0.12%  
HeidelbergCement AG1      10,721       1,599,873    
Diversified financials—0.42%  
Deutsche Boerse AG     5,934       1,048,251    
Hypo Real Estate Holding AG     144,831       4,569,979    
      5,618,230    
Diversified telecommunication services—0.77%  
Deutsche Telekom AG     497,913       10,173,188    
Electric utilities—1.49%  
E.ON AG     107,515       19,766,249    
Electrical equipment—1.03%  
Siemens AG1      105,045       13,611,098    
Insurance—0.52%  
Allianz SE     23,735       4,274,537    
Hannover
Rueckversicherung AG		     57,454       2,570,460    
      6,844,997    
Machinery—1.07%  
MAN AG     67,783       8,418,472    
Tognum AG*     237,463       5,793,833    
      14,212,305    
Metals & mining—0.31%  
ThyssenKrupp AG1      82,494       4,051,969    
Multi-utilities—1.98%  
RWE AG     214,233       26,272,732    
Total Germany common stocks     126,493,284    
Greece—1.37%  
Banks—1.37%  
EFG Eurobank Ergasias     65,676       1,854,581    
National Bank of Greece SA     232,706       14,254,536    
Piraeus Bank SA     61,637       1,987,783    
      18,096,900    

 


128


UBS PACE Select Advisors Trust

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Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
Greece—(concluded)  
Metals & mining—0.00%  
Corinth Pipeworks SA*     2,554     $ 21,610    
Total Greece common stocks     18,118,510    
Hong Kong—4.47%  
Banks—0.57%  
BOC Hong Kong
(Holdings) Ltd.		     3,005,000       7,554,481    
Diversified financials—0.74%  
Hong Kong Exchanges &
Clearing Ltd.		     417,500       8,671,971    
Swire Pacific Ltd.     88,245       1,205,630    
      9,877,601    
Electric utilities—0.54%  
Hong Kong Electric Holdings     1,249,500       7,132,208    
Industrial conglomerates—0.09%  
Hutchison Whampoa Ltd.     119,604       1,175,819    
Real estate—1.86%  
Cheung Kong Holdings Ltd.     821       13,316    
Hang Lung Properties Ltd.     1,114,221       4,550,806    
Henderson Land
Development Co. Ltd.		     214,000       1,846,679    
New World
Development Co. Ltd.		     246,000       764,877    
Sun Hung Kai Properties Ltd.     516,000       10,366,397    
Wharf Holdings Ltd.     1,303,875       7,131,410    
      24,673,485    
Specialty retail—0.20%  
Esprit Holdings Ltd.     202,469       2,625,295    
Wireless telecommunication services—0.47%  
China Mobile Ltd.     422,000       6,248,090    
Total Hong Kong common stocks     59,286,979    
Italy—5.24%  
Automobiles—1.00%  
Fiat SpA     566,814       13,259,064    
Banks—3.20%  
Banca Intesa SpA     2,296,388       16,404,536    
Banco Popolare Scarl*     137,071       2,739,949    
Intesa Sanpaolo     305,677       2,099,514    
UniCredito Italiano SpA     2,882,473       21,160,337    
      42,404,336    
Chemicals—0.03%  
Polynt SpA     76,090       398,493    
Construction materials—0.09%  
Buzzi Unicem SpA     50,577       1,201,703    

 

Security description   Number
of shares		   Value  
Italy—(concluded)  
Electric utilities—0.92%  
Enel SpA     1,091,542     $ 12,175,601    
Total Italy common stocks     69,439,197    
Japan—17.34%  
Automobiles—1.36%  
Nissan Motor Co. Ltd.     31,900       306,164    
Toyota Motor Corp.     326,607       17,771,655    
      18,077,819    
Banks—0.55%  
Mitsubishi Tokyo Financial
Group, Inc.		     415,000       4,110,288    
Sumitomo Mitsui Financial
Group, Inc.		     402       3,176,806    
      7,287,094    
Building products—0.19%  
Nippon Sheet Glass Co. Ltd.     566,000       2,587,469    
Chemicals—0.37%  
Kaneka Corp.     89,000       661,763    
Kuraray Co. Ltd.     225,500       2,689,940    
Ube Industries Ltd.     482,000       1,507,469    
Zeon Corp.     900       5,394    
      4,864,566    
Computers & peripherals—0.05%  
Elpida Memory, Inc.*     18,900       668,293    
Fujitsu Ltd.     6,000       38,850    
      707,143    
Construction & engineering—0.05%  
Nishimatsu
Construction Co. Ltd.		     249,000       693,792    
Diversified financials—0.73%  
Hitachi Capital Corp.     68,100       912,277    
Orix Corp.     51,160       8,705,820    
      9,618,097    
Diversified telecommunication services—0.37%  
Nippon Telegraph &
Telephone Corp. (NTT)		     1,023       4,895,698    
Electric utilities—0.51%  
Kansai Electric
Power Co., Inc.		     103,300       2,584,872    
Tokyo Electric
Power Co., Inc.		     161,600       4,196,941    
      6,781,813    
Electrical equipment—0.69%  
Fujikura Ltd.     200       976    
Mitsubishi Electric Corp.     161,000       1,500,621    
Nitto Denko Corp.     155,200       7,588,849    
      9,090,446    

 


129


UBS PACE Select Advisors Trust

UBS PACE International Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
Japan—(continued)  
Electronic equipment & instruments—0.56%  
Ibiden Co. Ltd.     36,700     $ 2,374,177    
Kyocera Corp.     26,500       2,117,020    
NIDEC Corp.     22,000       1,452,470    
Taiyo Yuden Co. Ltd.     42,000       492,401    
TDK Corp.     14,700       939,144    
      7,375,212    
Food & drug retailing—0.37%  
Seven & I Holdings Co. Ltd.     199,100       4,927,418    
Food products—0.16%  
Ajinomoto Co., Inc.     149,000       1,603,494    
Yakult Honsha Co. Ltd.1      19,600       531,081    
      2,134,575    
Gas utilities—0.08%  
Tokyo Gas Co. Ltd.     225,000       1,048,449    
Health care equipment & supplies—0.09%  
Terumo Corp.     21,300       1,158,497    
Household durables—0.27%  
Matsushita Electric
Industrial Co. Ltd.		     142,900       3,054,259    
Sharp Corp.     32,000       552,411    
      3,606,670    
Household products—0.95%  
Kao Corp.     389,000       11,800,599    
Uni-Charm Corp.     11,600       770,017    
      12,570,616    
Insurance—0.71%  
Millea Holdings, Inc.     237,700       9,075,210    
T&D Holdings, Inc.     5,450       292,521    
      9,367,731    
Internet software & services—0.08%  
Softbank Corp.     56,500       1,032,839    
IT consulting & services—0.24%  
Nomura Research Institute, Ltd.     42,300       1,117,613    
NTT Data Corp.     474       2,097,496    
      3,215,109    
Leisure equipment & products—0.04%  
FUJIFILM Holdings Corp.     14,800       580,260    
Machinery—1.28%  
Daikin Industries Ltd.     93,395       4,198,386    
Hitachi Construction
Machinery Co. Ltd.		     228,500       5,312,317    
Kubota Corp.     124,000       893,521    
Minebea Co. Ltd.     81,000       431,865    
Sumitomo Heavy
Industries Ltd.		     751,000       6,202,346    
      17,038,435    

 

Security description   Number
of shares		   Value  
Japan—(concluded)  
Metals & mining—0.47%  
JFE Holdings, Inc.     82,100     $ 3,799,398    
Mitsubishi Materials Corp.     594,000       2,429,280    
      6,228,678    
Office electronics—0.93%  
Canon, Inc.     286,700       12,374,346    
Personal products—0.26%  
Shiseido Co. Ltd.     147,000       3,461,094    
Pharmaceuticals—2.18%  
Astellas Pharma, Inc.     164,300       7,116,749    
Daiichi Sankyo Co. Ltd.     56,100       1,684,145    
Takeda Pharmaceutical Co.     330,800       20,089,669    
      28,890,563    
Real estate—0.73%  
Mitsui Fudosan Co. Ltd.     294,000       6,738,920    
Tokyu Land Corp.     371,000       2,990,514    
      9,729,434    
Road & rail—0.91%  
East Japan Railway Co.     856       7,070,769    
West Japan Railway Co.     1,032       4,985,044    
      12,055,813    
Semiconductor equipment & products—0.05%  
Sumco Corp.     27,600       605,302    
Software—0.66%  
Nintendo Co., Ltd.     17,500       8,748,267    
Specialty retail—0.05%  
Nitori Co., Ltd.     11,650       608,756    
Tobacco—0.34%  
Japan Tobacco, Inc.     835       4,447,315    
Trading companies & distributors—0.58%  
Itochu Corp.     723,000       6,632,316    
Mitsui & Co. Ltd.     50,700       1,043,571    
      7,675,887    
Wireless telecommunication services—0.48%  
KDDI Corp.     941       6,362,897    
Total Japan common stocks     229,848,100    
Luxembourg—0.62%  
Metals & mining—0.07%  
ArcelorMittal     14,048       933,819    
Wireless telecommunication services—0.55%  
Millicom International
Cellular SA1,*		     68,800       7,288,672    
Total Luxembourg
common stocks		     8,222,491    

 


130


UBS PACE Select Advisors Trust

UBS PACE International Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
Netherlands—2.77%  
Air freight & couriers—0.21%  
TNT NV     75,031     $ 2,779,342    
Diversified financials—0.98%  
ING Groep N.V.     399,622       13,010,101    
Diversified telecommunication services—0.39%  
Koninklijke (Royal) KPN NV     284,107       5,156,652    
Food & drug retailing—0.12%  
Koninklijke Ahold NV*     118,693       1,549,742    
Media—0.62%  
Reed Elsevier N.V.     451,381       8,246,546    
Semiconductor equipment & products—0.45%  
ASML Holding N.V.*     224,088       5,971,071    
Total Netherlands
common stocks		     36,713,454    
New Zealand—0.30%  
Diversified telecommunication services—0.30%  
Telecom Corp. of
New Zealand Ltd.1 		     1,252,972       3,975,691    
Norway—0.81%  
Banks—0.11%  
DnB NOR ASA     111,018       1,449,538    
Energy equipment & services—0.56%  
SeaDrill Ltd.1,*     355,700       7,435,046    
Industrial conglomerates—0.14%  
Orkla ASA     140,300       1,853,512    
Total Norway common stocks     10,738,096    
Portugal—0.07%  
Diversified telecommunication services—0.07%  
Portugal Telecom, SGPS, SA     75,258       970,218    
Singapore—1.45%  
Airlines—0.00%  
Singapore Airlines Ltd.     740       8,150    
Banks—0.94%  
Oversea-Chinese
Banking Corp.		     762,400       4,046,495    
United Overseas
Bank Ltd.		     684,000       8,469,194    
      12,515,689    
Diversified financials—0.29%  
Jardine Matheson
Holdings Ltd.		     106,400       2,719,547    
Singapore Exchange Ltd.     161,188       1,128,751    
      3,848,298    
Diversified telecommunication services—0.16%  
Singapore
Telecommunications Ltd.		     791,120       2,055,435    

 

Security description   Number
of shares		   Value  
Singapore—(concluded)  
Real estate—0.06%  
Keppel Land Ltd.     167,000     $ 738,067    
Total Singapore common stocks     19,165,639    
South Africa—0.36%  
Oil & gas—0.36%  
Sasol Ltd.     100,449       4,796,355    
Spain—6.82%  
Banks—2.01%  
Banco Bilbao Vizcaya
Argentaria SA		     186,870       3,941,473    
Banco Santander Central
Hispano SA1 		     1,297,926       22,766,636    
      26,708,109    
Construction & engineering—0.62%  
Acciona SA     2,846       724,505    
Tecnicas Reunidas SA     124,807       7,514,794    
      8,239,299    
Diversified financials—0.09%  
Bolsas y Mercados Espanoles     18,583       1,139,684    
Diversified telecommunication services—2.81%  
Telefonica SA     1,272,654       37,265,904    
Electric utilities—0.80%  
Iberdrola SA1      689,562       10,542,694    
Specialty retail—0.49%  
Inditex SA     129,160       6,483,674    
Total Spain common stocks     90,379,364    
Sweden—0.27%  
Banks—0.27%  
Skandinaviska Enskilda
Banken AB (SEB), Class A		     100,563       2,281,185    
Svenska Handelsbanken,
Series A		     46,098       1,291,095    
Total Sweden common stocks     3,572,280    
Switzerland—5.19%  
Banks—0.83%  
Credit Suisse Group     60,056       3,403,605    
Julius Baer Holding Ltd.     109,167       7,624,997    
      11,028,602    
Construction materials—0.09%  
Holcim Ltd.     12,055       1,166,793    
Electrical equipment—0.93%  
ABB Ltd.     492,983       12,334,628    
Food products—0.66%  
Nestle SA     19,490       8,710,715    
Health care equipment & supplies—0.47%  
Phonak Holding AG     69,594       6,235,885    

 


131


UBS PACE Select Advisors Trust

UBS PACE International Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
Switzerland—(concluded)  
Insurance—0.27%  
Baloise Holding AG     3,448     $ 301,207    
Swiss Re     26,634       1,995,292    
Zurich Financial Services AG     4,607       1,312,737    
      3,609,236    
Oil & gas—0.45%  
Petroplus Holdings AG*     98,893       6,050,381    
Pharmaceuticals—1.49%  
Novartis AG     292,838       14,818,910    
Roche Holding
Genussehein AG		     27,129       4,915,201    
      19,734,111    
Total Switzerland
common stocks		     68,870,351    
Taiwan—0.70%  
Diversified telecommunication services—0.37%  
Chunghwa Telecom
Co. Ltd., ADR1 		     233,090       4,901,883    
Semiconductor equipment & products—0.33%  
Taiwan Semiconductor
Manufacturing Co.
Ltd., ADR		     473,084       4,390,219    
Total Taiwan common stocks     9,292,102    
United Kingdom—20.49%  
Aerospace & defense—0.04%  
BAE Systems PLC     57,997       540,323    
Auto components—0.27%  
GKN PLC     670,708       3,536,771    
Banks—3.70%  
Barclays PLC     334,480       3,153,400    
HBOS PLC     815,716       11,265,429    
HSBC Holdings PLC2      239,613       3,592,682    
HSBC Holdings PLC4      48,800       726,835    
Lloyds TSB Group PLC     1,121,715       9,876,291    
Royal Bank of Scotland
Group PLC		     2,683,293       20,499,192    
      49,113,829    
Construction materials—0.07%  
Biffa PLC     155,482       939,919    
Diversified financials—0.15%  
Man Group PLC     181,755       1,997,937    
Diversified telecommunication services—0.71%  
BT Group PLC     1,805,524       9,379,904    
Electronic equipment & instruments—0.08%  
Cookson Group PLC     95,408       1,055,314    

 

Security description   Number
of shares		   Value  
United Kingdom—(continued)  
Food & drug retailing—1.22%  
Tesco PLC     468,233     $ 3,906,597    
William Morrison
Supermarkets PLC		     2,055,645       12,306,040    
      16,212,637    
Gas utilities—0.33%  
Centrica PLC     663,730       4,377,352    
Health care equipment & supplies—0.42%  
Smith & Nephew PLC     408,517       5,571,374    
Hotels, restaurants & leisure—0.78%  
Compass Group PLC     1,303,800       8,252,483    
Greene King PLC     136,901       2,047,889    
      10,300,372    
Household durables—0.31%  
Bovis Homes Group PLC     65,448       795,056    
Persimmon PLC     91,710       1,415,571    
Taylor Wimpey PLC     542,118       1,949,208    
      4,159,835    
Insurance—0.61%  
Amlin PLC     389,566       2,067,434    
Aviva PLC     360,129       4,510,632    
Beazley Group PLC     367,729       1,228,034    
Catlin Group Ltd.     35,526       257,712    
      8,063,812    
IT consulting & services—0.46%  
Capita Group PLC     462,457       6,058,762    
Machinery—0.60%  
Babcock International
Group PLC		     711,414       7,930,712    
Media—0.24%  
Pearson PLC     135,586       1,875,794    
United Business Media PLC     123,374       1,352,106    
      3,227,900    
Metals & mining—1.00%  
BHP Billiton PLC     321,551       9,530,698    
Lonmin PLC     13,188       758,427    
Rio Tinto PLC     7,482       746,758    
Vedanta Resources PLC     37,359       1,356,721    
Xstrata PLC     11,866       907,120    
      13,299,724    
Multi-line retail—1.47%  
Marks & Spencer Group PLC     414,849       3,660,823    
Next PLC     24,506       690,560    
Unilever PLC     458,934       15,081,588    
      19,432,971    
Oil & gas—4.77%  
BG Group PLC     608,475       13,390,470    
BP PLC     2,674,947       28,374,841    

 


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Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(concluded)
Security description		   Number
of shares		   Value  
United Kingdom—(concluded)  
Oil & gas—(concluded)  
Royal Dutch Shell PLC,
A Shares2 		     147,150     $ 5,240,773    
Royal Dutch Shell PLC,
A Shares1,5 		     292,737       10,466,856    
Royal Dutch Shell PLC,
B Shares		     165,124       5,712,602    
      63,185,542    
Pharmaceuticals—2.02%  
Astra Zeneca PLC2      94,801       3,954,460    
Astra Zeneca PLC6      22,731       945,257    
GlaxoSmithKline PLC     814,990       19,236,039    
Shire PLC     150,877       2,690,122    
      26,825,878    
Software—0.78%  
Autonomy Corp. PLC*     568,978       10,275,832    
Tobacco—0.16%  
British American Tobacco PLC     57,436       2,056,929    
Trading companies & distributors—0.07%  
Wolseley PLC     71,351       984,070    
Wireless telecommunication services—0.23%  
Vodafone Group PLC     869,760       3,052,468    
Total United Kingdom
common stocks		     271,580,167    
Total common stocks
(cost—$1,183,937,449)		     1,297,818,697    
Preferred stocks—0.36%  
Germany—0.36%  
Automobiles—0.25%  
Porsche AG1      770       1,385,236    
Volkswagen AG     13,606       1,894,131    
      3,279,367    
Multi-utilities—0.11%  
RWE AG     14,452       1,525,783    
Total preferred stocks
(cost—$3,284,336)		     4,805,150    
    Face
amount		      
Short-term US government
obligations7,8—0.06%		  
United States—0.06%  
US Treasury Bills
2.375% due 06/12/08		   $ 200,000       198,260    
2.990% due 06/12/08     550,000       543,970    
(cost—$742,230)     742,230    

 

Security description   Face
amount		   Value  
Repurchase agreement—2.35%  
Repurchase agreement dated
01/31/08 with State Street
Bank & Trust Co., 1.400%,
due 02/01/08, collateralized
by $3,639,407 US Treasury
Bills, zero coupon due
05/01/08, $2,289,487
US Treasury Bonds, 8.125%
due 08/15/19, and
$23,584,382 US Treasury
Notes, 4.750% due
12/31/08 to 01/31/12;
(value—$31,791,511);
proceeds: $31,169,212
(cost—$31,168,000)		   $ 31,168,000     $ 31,168,000    
    Number
of shares		      
Investments of cash collateral from
securities loaned—5.95%		  
Money market funds9—5.95%  
AIM Prime Portfolio,
3.663%		     990       990    
BlackRock Provident
Institutional TempFund,
4.123%		     47,592,653       47,592,653    
DWS Money Market Series,
4.201%		     125,807       125,807    
Federated Treasury
Obligation Fund,
1.571%		     4       4    
UBS Private Money Market
Fund LLC,10
3.941%		     31,184,519       31,184,519    
Total money market funds and
investments of cash collateral
from securities loaned
(cost—$78,903,973)		     78,903,973    
Total investments
(cost—$1,298,035,988)—
106.63%		     1,413,438,050    
Liabilities in excess of other
assets—(6.63)%		     (87,853,156 )  
Net assets—100.00%   $ 1,325,584,894    

 

*  Non-income producing security.

1  Security, or portion thereof, was on loan at January 31, 2008.

2  Security is traded on the London Exchange.

3  Security is traded on the Brussels Exchange.

4  Security is traded on the Hong Kong Exchange.

5  Security is traded on the Netherlands Exchange.

6  Security is traded on the Stockholm Exchange.

7  Rate shown is the discount rate at date of purchase.

8  Entire amount delivered to broker as collateral for futures transactions.

9  Rates shown reflect yield at January 31, 2008.

10  The table below details the Portfolio's transaction activity in an affiliated issuer during the six months ended January 31, 2008.


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Portfolio of investments—January 31, 2008 (unaudited)

Security description   Value at
07/31/07		   Purchases
during the
six months
ended
01/31/08		   Sales
during the
six months
ended
01/31/08		   Value at
01/31/08		   Net income
earned from
affiliate for
the six months
ended
01/31/08		  
UBS Private Money Market Fund LLC   $ 56,022,635     $ 496,367,069     $ 521,205,185     $ 31,184,519     $ 95,855    

 

ADR  American Depositary Receipt

GDR  Global Depositary Receipt

STRIP  Separate Trading of Registered Interest and Principal of Securities

VVPR  Verminderde Voorheffing Precompte Reduit (Belgium dividend coupon)

Futures contracts

Number of
contracts		   Currency   Buy contracts   Expiration
dates		   Cost   Current
value		   Unrealized
appreciation
(depreciation)		  
  14     EUR   Dow Jones Euro STOXX 50 Futures   March 2008   $ 863,182     $ 797,645     $ (65,537 )  
  7     GBP   FTSE 100 Index Futures   March 2008     832,901       821,137       (11,764 )  
  5     JPY   TOPIX Index Futures   March 2008     603,409       634,999       31,590    
                    $ 2,299,492     $ 2,253,781     $ (45,711 )  

 

Forward foreign currency contracts

    Contracts to
deliver		   In
exchange for		   Maturity
dates		   Unrealized
appreciation
(depreciation)		  
Euro     1,470,000     USD 2,166,515     04/07/08   $ (14,453 )  
Euro     3,843,000     USD 5,682,798     04/07/08     (18,878 )  
Great Britain Pound     1,887,886     USD 3,727,480     04/07/08     (11,022 )  
Great Britain Pound     2,430,000     USD 4,827,146     04/07/08     15,119    
Great Britain Pound     14,506,500     USD 28,733,315     04/30/08     53,385    
Hong Kong Dollar     29,329,956     USD 3,768,852     04/07/08     1,352    
Japanese Yen     316,500,000     USD 2,974,009     04/07/08     (15,497 )  
Japanese Yen     449,880,890     USD 4,181,088     04/07/08     (68,269 )  
United States Dollar     8,801,921     AUD 10,044,071     04/07/08     132,498    
United States Dollar     2,013,247     CHF 2,189,870     04/07/08     15,396    
United States Dollar     3,451,082     CHF 3,804,301     04/07/08     73,132    
United States Dollar     2,050,258     EUR 1,400,000     04/07/08     26,855    
United States Dollar     2,364,070     EUR 1,610,764     04/07/08     25,744    
United States Dollar     2,306,800     GBP 1,159,341     04/07/08     (11,004 )  
United States Dollar     2,272,688     HKD 17,702,425     04/07/08     1,228    
United States Dollar     3,980,633     SEK 25,236,415     04/07/08     (23,384 )  
    $ 182,202    

 


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Portfolio of investments—January 31, 2008 (unaudited)

Currency type abbreviations:

AUD  Australian Dollar

CHF  Swiss Franc

EUR  Euro

GBP  Great Britain Pound

HKD  Hong Kong Dollar

JPY  Japanese Yen

SEK  Swedish Krona

USD  US Dollar

See accompanying notes to financial statements.
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UBS PACE International Emerging Markets Equity Investments

Performance

For the six months ended January 31, 2008, the Portfolio's Class P shares declined 0.14% (before the deduction of the maximum UBS PACE Select program fee, and declined 0.89% after the deduction of the maximum UBS PACE Select program fee for the six month period). In comparison, the MSCI Emerging Markets Free (EMF) Index (the "benchmark") declined 1.33%, and the median return of the Lipper Emerging Markets Funds category was 0.49%. (Returns for all share classes over various time periods are shown in the "Performance at a Glance" table on page 139. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.)

Market review

Emerging market equities struggled to maintain the momentum developed earlier in 2007. Asian markets underperformed, as the export-dependent markets of Korea and Taiwan fell 15.5% and 14.9%, respectively, on fears of the impact of a US economic slowdown. Meanwhile, the markets of India and Malaysia outperformed, with gains of 19.5% and 10.8%, respectively. Latin America outperformed, returning 20.2%, as the strong performance in Brazil more than offset the losses experienced in Mexico and Chile.

In Europe, Russia gained 2.6%, while markets in Poland, Turkey and Hungary sustained sharp losses that were cushioned by currency appreciation. The Middle East provided a relatively safe haven, as Israel rose by 7.6% and Egypt appreciated 28%. Elsewhere, South Africa declined by 6.5% due primarily to the depreciation of its currency, the rand. Currency appreciation generally boosted market returns, particularly in Latin America, where the Brazilian real gained 6.0% and in Europe, where the Polish zloty rose by 13.6%.

Advisors' comments
Gartmore

Our portion of the Portfolio outperformed the benchmark during the reporting period. Stock picking in the energy sector contributed to the Portfolio's relative returns. The most successful positions included our overweights in Thai coal producer Banpu Public Co. Ltd. and China Shenhua Energy. Both companies are benefiting from rising demand from China as the country

(continued on next page)

UBS PACE Select Advisors Trust – UBS PACE International Emerging Markets Equity Investments

Advisors:

Gartmore Global Partners ("Gartmore") and Mondrian Investment Partners Limited ("Mondrian")

Portfolio Managers:

GGP: Christopher Palmer

Mondrian: Team

Objective:

Capital appreciation.

Investment process:

Gartmore seeks to identify companies whose earnings have the ability to exceed or be sustained beyond market expectations. Gartmore employs a stringent analysis of strategic factors, industry dynamics and the assessment of individual company franchises. It focuses on bottom-up stock picking within a risk-controlled environment.

Mondrian conducts research on a global basis in an effort to identify securities that have the potential for long-term total return. The center of the research effort is a value-oriented dividend discount methodology toward individual securities and market analysis that identifies value across country boundaries. This approach focuses on future anticipated dividends, and discounts the value of those dividends back to what they would be worth if they were being paid today. Comparisons of the values of different possible investments are then made. In an international portfolio, currency returns can be an integral component of an investment's total return. Mondrian uses a purchasing power parity approach to assess the value of individual currencies. Purchasing power parity


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Advisors' comments – continued

expands its coal-fired energy generating capacity. This has contributed to record prices for thermal coal. Within the energy sector, we also increased our exposure to the Brazilian state-owned energy company Petroleo Brasileiros. Within the last six months the company has announced two major offshore finds, one of oil and one of gas. Elsewhere in the sector, increased demand for alternative energy generating capacity prompted us to take a new position in China's largest solar cell maker Suntech Power Holdings. The company has the lowest non-silicon manufacturing costs of its peers.

On the downside, our holdings in the financials sector were affected by concerns about the extent of their exposure to the US credit markets. For example, our overweight in Shin Kong Financial of Taiwan detracted from performance after the company revealed its exposure to higher risk debt instruments. China's moves to slow access to credit, including the introduction of lending limits, affected real estate developers such as Shimao Property Holdings Ltd.,1 a position which we sold during the period.

At the country level, South Korean stocks fell as the country was seen to be vulnerable to a slowing export market. For example, our overweight in shipbuilder Hanjin Heavy Industries Construction Co. Ltd. hindered results as investors locked in gains following a record year for the industry. In contrast, our overweight in Russia proved effective. In particular, we benefited from our focus on consumer discretionary stocks that we believe are likely to gain from rising disposable income. A Russian stock that enhanced results was mobile phone operator Mobile TeleSystems.

Heightened volatility in the global equity markets caused us to make some portfolio changes in January 2008. This led to the placing of stop-losses on some stocks, and the reduction of some overweight positions. (By putting a stop-loss, we established a stock price that is below its current market price. If the share price falls to the stop-loss price, we sell the stock.)

Mondrian

Our portion of the Portfolio outperformed the benchmark slightly during the period as gains in Europe and Africa outweighed the impact of underperformance in Latin America and Asia. Exposure to the several holdings in the telecommunications sector proved beneficial, while holdings in the energy and resources sector performed well as commodity prices continued to rise.

In Europe, stock selection contributed to performance, particularly in Russia and Turkey. Within those countries, our holdings in mobile telecommunications operators Mobile TeleSystems (Russia) and Iletisim Hizmetteri ("Turkcell") (Turkey) benefited from strong subscriber growth. Russian steel manufacturer Evraz Group also performed well as global steel prices moved higher, driving expectations of improved profitability.

In Africa, we benefited from an overweighting in Egypt, although our selection of stocks slightly underperformed the benchmark. Stock selection in South Africa boosted returns, with energy company Sasol Ltd. proving to be a key beneficiary of the continued strength in energy prices.

Investment process (concluded)

attempts to identify the amount of goods and services that a dollar will buy in the United States, and compares that to the amount of a foreign currency required to buy the same amount of goods and services in another country.

1  Not held within this Advisor's portion of the Portfolio as of January 31, 2008.


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Advisors' comments – concluded

Our sector positioning in Asian markets detracted from returns, although this was largely offset by good stock selection. An underweight position in the Indian market, which had strong performance proved costly, although this was offset by adopting underweight positions in Korea and China, where returns were much lower. Despite our overweight exposure to the underperforming Taiwanese market, select holdings provided strong returns, particularly domestically-oriented holdings such as Chunghwa Telecom Co. Ltd. and President Chain Store Corp., which outperformed the market by a wide margin.

In Latin America, the gains from correctly overweighting Brazil were more than offset by disappointing stock performance in Brazil and, to a lesser extent, Mexico. Despite very strong contributions from holdings in the natural resources sectors such as Petrobras and Companhia Vale do Rio Doce, we were impacted by poor returns of more domestic names, particularly toll road operator Companhia de Concessoes Rodoviarias and credit card processing company Redecard.

Special considerations

The Portfolio may be appropriate for long-term investors seeking capital appreciation who are able to withstand short-term fluctuations in the equity markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan. The value of the Portfolio's investments in foreign securities may fall due to adverse political, social, and economic developments abroad and due to decreases in foreign currency values relative to the US dollar. These risks are greater for investments in emerging market issuers than for issuers in more developed countries.


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Performance at a glance (unaudited)

Average annual total returns for periods ended 01/31/08       6 months   1 year   5 years   10 years   Since
inception1 		  
Before deducting   Class A2      -0.15 %     22.40 %     30.69 %     N/A       15.51 %  
maximum sales charge   Class B3      -0.59 %     21.36 %     29.56 %     N/A       15.91 %  
or UBS PACE Select   Class C4      -0.52 %     21.52 %     29.67 %     N/A       15.72 %  
program fee   Class Y5      0.05 %     22.89 %     31.30 %     N/A       16.01 %  
    Class P6      -0.14 %     22.47 %     30.81 %     9.45 %     7.18 %  
After deducting   Class A2      -5.63 %     15.67 %     29.22 %     N/A       14.60 %  
maximum sales charge   Class B3      -4.80 %     16.36 %     29.42 %     N/A       15.91 %  
or UBS PACE Select   Class C4      -1.36 %     20.52 %     29.67 %     N/A       15.72 %  
program fee   Class P6      -0.89 %     20.65 %     28.86 %     7.82 %     5.59 %  
MSCI Emerging Markets Free (EMF) Index         -1.33 %     23.66 %     33.97 %     13.94 %     9.62 %  
Lipper Emerging Markets Funds median         0.49 %     22.66 %     33.41 %     12.94 %     9.85 %  

 

Average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: Class A—1-year period, 27.78%; 5-year period, 31.79%; since inception, 16.53%; Class B—1-year period, 29.19%; 5-year period, 32.02%; since inception, 17.89%; Class C—1-year period, 33.25%; 5-year period, 32.26%; since inception, 17.69%; Class Y—1-year period, 35.76%; 5-year period, 33.85%; since inception, 18.02%; Class P—1-year period, 33.33%; 5-year period, 31.42%; 10-year period, 8.38%; since inception, 6.55%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 30, 2007 prospectuses were as follows: Class A—1.89% and 1.89%; Class B—2.69% and 2.69%; Class C—2.64% and 2.64%; Class Y—1.52% and 1.52%; and Class P—1.82% and 1.82%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses.

1  Since inception returns are calculated as of commencement of issuance on August 24, 1995 for Class P shares, December 11, 2000 for Class A shares, December 22, 2000 for Class B shares, December 1, 2000 for Class C shares and February 9, 2001 for Class Y shares. Since inception returns for the Index and Lipper median are shown as of August 31, 1995, which is the month-end after the inception date of the oldest share class (Class P).

2  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

3  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

4  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

5  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

6  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual UBS PACE Select program fee of 1.5% of the value of Class P shares.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

The MSCI Emerging Markets Free (EMF) Index is a market capitalization-weighted index composed of companies representative of the market structure of 25 emerging market countries in Europe, Latin America, and the Pacific Basin. The MSCI EMF Index excludes closed markets and those shares in otherwise free markets that are not purchasable by foreigners.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for the period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.


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Portfolio statistics (unaudited)

Characteristics   01/31/08  
Net assets (mm)   $ 439.7    
Number of holdings     168    
Portfolio composition1    01/31/08  
Common stocks, preferred stocks and rights     73.6 %  
ADRs, GDRs and NVDRs     24.0    
Corporate bond     0.0 2   
Cash equivalents and other assets less liabilities     2.4    
Total     100.0 %  
Regional allocation1    01/31/08  
Asia     46.5 %  
The Americas     27.6    
Europe/Middle East/Africa     23.5    
Cash equivalents and other assets less liabilities     2.4    
Total     100.0 %  
Top five countries (equity investments)1    01/31/08  
Brazil     15.4 %  
Taiwan     12.2    
South Korea     11.0    
Russia     8.4    
Mexico     6.5    
Total     53.5 %  
Top ten equity holdings1    01/31/08  
China Mobile (Hong Kong)     2.4 %  
Taiwan Semiconductor Manufacturing     2.4    
Petroleo Brasileiro SA—Petrobras (common stock)     2.0    
America Movil SA de C.V., ADR     1.9    
Gazprom, ADR     1.9    
Bharti Airtel     1.8    
Sasol     1.7    
Petroleo Brasileiro SA—Petrobras, ADR (preferred stock)     1.7    
LUKOIL, ADR     1.6    
Companhia Vale do Rio Doce, Class A (preferred stock)     1.5    
Total     18.9 %  

 

1  Weightings represent percentages of the Portfolio's net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time.

2  Weighting represents less than 0.05% of the Portfolio's net assets as of January 31, 2008.

ADR  American Depositary Receipt

GDR  Global Depositary Receipt

NVDR  Non Voting Depositary Receipt


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Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—89.73%
Security description		   Number
of shares		   Value  
Argentina—0.25%  
Energy equipment & services—0.25%  
Tenaris SA, ADR     27,000     $ 1,079,730    
Bermuda—1.92%  
Banks—0.36%  
Credicorp Ltd.     21,858       1,565,470    
Marine—1.02%  
Cosco Pacific Ltd.     2,190,000       4,466,402    
Real estate—0.54%  
Sinofert Holdings Ltd.1      2,984,000       2,398,651    
Total Bermuda common stocks     8,430,523    
Brazil—9.62%  
Banks—0.53%  
Unibanco—Uniao de Bancos
Brasileiros SA, GDR		     17,900       2,341,320    
Diversified telecommunication services—0.64%  
Brasil Telecom
Participacoes SA, ADR1 		     40,467       2,825,406    
Electric utilities—1.35%  
AES Tiete SA     26,200,000       1,116,963    
CPFL Energia SA     58,500       1,006,373    
CPFL Energia SA, ADR1      21,000       1,099,350    
MPX Mineracao e Energia SA*     6,000       2,728,823    
      5,951,509    
Insurance—0.21%  
Porto Seguro SA     28,800       914,429    
Metals & mining—0.91%  
Companhia Vale do Rio
Doce (CVRD), ADR1 		     152,800       3,977,384    
Oil & gas—1.97%  
Petroleo Brasileiro SA—
Petrobras		     77,944       8,662,696    
Paper & forest products—0.85%  
Votorantim Celulose e Papel SA,
ADR1 		     126,150       3,727,732    
Retail—0.73%  
Lojas Renner SA     205,400       3,222,877    
Software & Services—0.99%  
Redecard SA     299,800       4,346,162    
Transportation infrastructure—1.20%  
Companhia de Concessoes
Rodoviarias (CCR)		     327,089       5,271,730    
Warehousing & harbor transportation services—0.24%  
Santos Brasil Participacoes SA     73,500       1,044,628    
Total Brazil common stocks     42,285,873    

 

Security description   Number
of shares		   Value  
Canada—0.46%  
Metals & mining—0.46%  
Uranium One, Inc.*     288,300     $ 2,004,217    
Cayman Islands—1.30%  
Electronic equipment & instruments—0.51%  
Suntech Power Holdings Co.,
Ltd., ADR1,*		     41,100       2,249,403    
Internet software & services—0.17%  
Alibaba.com Ltd.1,*     305,000       742,559    
Media—0.39%  
Focus Media Holding Ltd.,
ADR1,*		     35,200       1,691,360    
Real estate—0.06%  
Agile Property Holdings Ltd.1      234,000       261,226    
Specialty retail—0.17%  
China Dongxiang Group Co.1,*     1,219,924       758,654    
Total Cayman Islands
common stocks		     5,703,202    
Chile—0.57%  
Banks—0.37%  
Banco Santander Chile SA,
ADR1 		     33,600       1,648,416    
Water utilities—0.20%  
Inversiones Aguas Metropolitanas
SA (IAM), ADR2 		     36,500       879,519    
Total Chile common stocks     2,527,935    
China—4.53%  
Banks—0.85%  
China Construction Bank Corp.     5,401,000       3,758,199    
Construction materials—0.47%  
Anhui Conch Cement Co. Ltd.,
Class H1 		     380,800       2,047,161    
Insurance—0.35%  
Ping An Insurance (Group) Co. of
China Ltd.		     220,000       1,544,092    
Marine—0.61%  
China Shipping Development Co.
Ltd., Class H		     1,030,000       2,700,635    
Metals & mining—0.85%  
China Shenhua Energy Co. Ltd.,
Class H		     715,500       3,721,174    
Oil & gas—0.46%  
PetroChina Co. Ltd., Class H     1,433,200       2,013,195    
Real estate—0.41%  
Shimao Property Holdings Ltd.     1,000,800       1,789,422    
Technology, hardware & equipment—0.27%  
TPV Technology Ltd.1      1,862,000       1,193,815    

 


141


UBS PACE Select Advisors Trust

UBS PACE International Emerging Markets Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
China—(concluded)  
Textiles & apparel—0.26%  
Fountain Set (Holdings) Ltd.1      1,404,000     $ 274,059    
Texwinca Holdings Ltd.     1,130,000       863,323    
      1,137,382    
Total China common stocks     19,905,075    
Columbia—1.09%  
Banks—1.09%  
Bancolombia SA1      143,600       4,797,676    
Czech Republic—1.29%  
Banks—0.38%  
Komercni Banka A.S.     8,000       1,675,985    
Electric utilities—0.91%  
CEZ     59,500       3,990,095    
Total Czech Republic
common stocks		     5,666,080    
Egypt—1.60%  
Wireless telecommunication services—1.60%  
Egyptian Co. for Mobile Services
(MobiNil)		     54,966       2,177,216    
Orascom Telecom Holding S.A.E.,
GDR1 		     65,800       4,875,780    
Total Egypt common stocks     7,052,996    
Hong Kong—4.24%  
Electric utilities—0.54%  
China Resources Power
Holdings Co. Ltd.		     987,200       2,381,157    
Marine—0.49%  
Pacific Basin Shipping Ltd.     1,533,000       2,169,647    
Multi-utilities—0.49%  
China Power International
Development Ltd.1 		     6,316,000       2,161,162    
Oil & gas—0.34%  
CNOOC Ltd.     1,031,000       1,481,786    
Wireless telecommunication services—2.38%  
China Mobile (Hong Kong) Ltd.     705,100       10,439,640    
Total Hong Kong common stocks     18,633,392    
Hungary—0.40%  
Banks—0.40%  
OTP Bank Rt.     40,492       1,746,657    
India—4.95%  
Automobiles—0.39%  
Hero Honda Motors Ltd.     98,184       1,709,536    
Chemicals—1.05%  
Reliance Industries Ltd.     72,459       4,606,320    
Construction & engineering—0.49%  
Unitech Ltd.     217,408       2,161,475    

 

Security description   Number
of shares		   Value  
India—(concluded)  
Diversified financials—0.22%  
Reliance Capital Ltd.     20,042     $ 981,316    
Diversified manufacturing—0.24%  
Max India Ltd.*     197,166       1,065,676    
Diversified telecommunication services—1.84%  
Bharti Airtel Ltd.*     368,014       8,111,206    
Electric utilities—0.28%  
Tata Power Co. Ltd.     35,900       1,211,038    
IT consulting & services—0.44%  
Satyam Computer Services Ltd.,
ADR1 		     78,525       1,912,084    
Total India common stocks     21,758,651    
Indonesia—0.77%  
Automobiles—0.77%  
PT Astra International Tbk     1,128,000       3,393,483    
Israel—2.72%  
Banks—0.96%  
Bank Hapoalim Ltd.     915,403       4,238,931    
Chemicals—0.37%  
Makhteshim-Agan
Industries Ltd.*		     203,442       1,604,808    
Diversified telecommunication services—0.92%  
Bezeq Israeli Telecommunication
Corp. Ltd.		     2,199,685       4,053,263    
Pharmaceuticals—0.47%  
Teva Pharmaceutical Industries
Ltd., ADR		     44,900       2,067,196    
Total Israel common stocks     11,964,198    
Kazakhstan—0.59%  
Oil & gas—0.59%  
KazMunaiGas Exploration
Production, GDR		     98,800       2,578,680    
Malaysia—3.79%  
Banks—1.47%  
Commerce Asset-Holding
Berhad		     749,500       2,399,125    
Hong Leong Bank Berhad     958,400       1,729,505    
Public Bank Berhad     53,900       190,373    
Public Bank Berhad, Foreign
Market		     600,000       2,134,841    
      6,453,844    
Consumer products—0.63%  
Tanjong PLC     551,600       2,762,815    
Hotels, restaurants & leisure—0.43%  
Genting Berhad     837,700       1,913,744    
Marine—0.72%  
Malaysia International Shipping
Co. Berhad		     1,078,600       3,172,883    

 


142


UBS PACE Select Advisors Trust

UBS PACE International Emerging Markets Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
Malaysia—(concluded)  
Plantations—0.54%  
IOI Corp. Berhad     1,076,895     $ 2,375,036    
Total Malaysia common stocks     16,678,322    
Mexico—6.45%  
Banks—0.87%  
Banco Compartamos SA de C.V.*     281,800       1,220,522    
Grupo Financiero Banorte
SA de C.V., Series O1 		     622,591       2,587,301    
      3,807,823    
Beverages—0.70%  
Grupo Modelo SA de C.V.,
Series C1 		     669,900       3,080,853    
Construction materials—0.49%  
Cemex SA de C.V., ADR1,*     80,429       2,180,430    
Household products—0.46%  
Kimberly-Clark de Mexico SA de
C.V., Series A1 		     500,200       2,025,559    
Media—0.46%  
Grupo Televisa SA, ADR1      91,600       2,041,764    
Metals & mining—0.88%  
Grupo Mexico SAB de C.V.,
Series B		     346,757       2,033,437    
Industrias CH SA, Series B1,*     476,400       1,844,711    
      3,878,148    
Multi-line retail—0.34%  
Wal-Mart de Mexico SA de C.V.,
Series V1 		     415,621       1,496,904    
Transportation infrastructure—0.32%  
Grupo Aeroportuario del Pacifico
SA de C.V., ADR1 		     32,400       1,388,988    
Wireless telecommunication services—1.93%  
America Movil SA de C.V., ADR,
Series L1 		     141,422       8,472,592    
Total Mexico common stocks     28,373,061    
Morocco—0.18%  
Real estate—0.18%  
Compagnie Generale
Immobiliere*		     2,534       801,601    
Panama—0.18%  
Banks—0.18%  
Banco Latinoamericano de
Exportaciones SA, Class E		     51,700       797,731    
Philippines—0.59%  
Diversified telecommunication services—0.59%  
Philippine Long Distance
Telephone Co., ADR1 		     34,500       2,596,125    

 

Security description   Number
of shares		   Value  
Poland—1.15%  
Banks—0.73%  
Bank Pekao SA     21,108     $ 1,704,055    
Bank Zachodni WBK SA     19,386       1,515,935    
      3,219,990    
Diversified telecommunication services—0.42%  
Telekomunikacja Polska SA     193,469       1,854,522    
Total Poland common stocks     5,074,512    
Russia—8.36%  
Auto manufacturing/suppliers—0.56%  
JSC Severstal-Auto     48,900       2,445,000    
Banks—1.01%  
Sberbank     1,224,200       4,433,519    
Food products—0.39%  
Uralkali, GDR1,*     53,857       1,730,541    
Marine—0.10%  
Novorossiysk Sea Trade Port,
GDR1,*		     33,082       448,592    
Metals & mining—1.40%  
Chelyabinsk Zinc Factory, GDR*     20,800       193,440    
Evraz Group SA, GDR     46,400       3,373,280    
Mining & Metallurgical Co.,
Norilsk Nickel, ADR		     10,750       2,609,563    
      6,176,283    
Oil & gas—3.46%  
Gazprom, ADR     171,796       8,309,667    
LUKOIL, ADR     100,012       6,890,827    
      15,200,494    
Wireless telecommunication services—1.44%  
Mobile TeleSystems, ADR     75,860       6,309,276    
Total Russia common stocks     36,743,705    
South Africa—5.88%  
Banks—1.04%  
African Bank Investments Ltd.1      1,230,784       4,587,329    
Construction materials—0.36%  
Freeworld Coatings Ltd.*     119,829       136,110    
Pretoria Portland Cement
Co. Ltd.		     282,944       1,422,430    
      1,558,540    
Diversified financials—0.36%  
ABSA Group Ltd.     116,492       1,593,105    
Diversified telecommunication services—0.36%  
Telkom South Africa Ltd.     83,636       1,577,306    
Industrial conglomerates—0.57%  
Barloworld Ltd.     147,348       1,751,607    
Remgro Ltd.     32,152       771,849    
      2,523,456    

 


143


UBS PACE Select Advisors Trust

UBS PACE International Emerging Markets Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
South Africa—(concluded)  
Metals & mining—0.78%  
Impala Platinum Holdings Ltd.     91,819     $ 3,439,020    
Oil & gas—1.72%  
Sasol Ltd.     157,874       7,538,350    
Wireless telecommunication services—0.69%  
MTN Group Ltd.     191,845       3,052,314    
Total South Africa
common stocks		     25,869,420    
South Korea—8.94%  
Airlines—0.31%  
Korean Air Lines Co. Ltd.     18,897       1,370,529    
Banks—2.14%  
Industrial Bank of Korea (IBK)     158,100       2,892,864    
Kookmin Bank     77,322       5,118,728    
Shinhan Financial Group
Co. Ltd.		     26,361       1,417,871    
      9,429,463    
Building products—0.23%  
KCC Corp.     2,519       994,073    
Chemicals—0.52%  
LG Chem Ltd.     27,525       2,273,024    
Construction & engineering—0.42%  
Hyundai Development Co.     25,368       1,826,003    
Diversified financials—1.08%  
Hana Financial Group, Inc.     97,268       4,743,347    
Electric utilities—0.90%  
Korea Electric Power Corp.
(KEPCO)		     99,170       3,980,414    
Industrial conglomerates—0.34%  
Hanjin Heavy Industries &
Construction Co. Ltd.*		     33,293       1,501,895    
Insurance—0.42%  
Samsung Fire & Marine Insurance
Co. Ltd.		     9,262       1,841,674    
Machinery—0.30%  
Hyundai Heavy Industries
Co. Ltd.		     3,905       1,326,675    
Metals & mining—0.92%  
POSCO     7,472       4,047,665    
Semiconductor equipment & products—1.36%  
Samsung Electronics Co. Ltd.     9,315       5,972,690    
Total South Korea
common stocks		     39,307,452    

 

Security description   Number
of shares		   Value  
Taiwan—12.23%  
Banks—1.85%  
Chinatrust Financial Holding
Co. Ltd.*		     3,269,000     $ 2,639,995    
Mega Financial Holding Co. Ltd.     8,272,000       5,481,676    
      8,121,671    
Chemicals—0.29%  
Nan Ya Plastics Corp.     628,000       1,270,671    
Computers & peripherals—2.05%  
Asustek Computer, Inc.     831,372       2,149,680    
Innolux Display Corp.3,*     285,300       1,169,730    
Innolux Display Corp.4      186,000       400,992    
Lite-On Technology Corp.     3,543,299       5,305,732    
      9,026,134    
Construction materials—0.45%  
Taiwan Cement Corp.     1,531,155       1,989,230    
Diversified telecommunication services—1.31%  
Chunghwa Telecom Co. Ltd.     1,418,698       3,048,521    
Chunghwa Telecom Co. Ltd.,
ADR		     128,512       2,702,607    
      5,751,128    
Electronic equipment & instruments—0.65%  
HON HAI Precision Industry Co.
Ltd. (Foxconn)		     349,840       1,892,493    
Synnex Technology International
Corp.		     475,811       964,228    
      2,856,721    
Food & drug retailing—0.81%  
President Chain Store Corp.     1,257,000       3,579,666    
Industrial conglomerates—0.00%  
HannStar Display Corp.*     852       311    
Insurance—0.33%  
Shin Kong Financial Holding
Co. Ltd.		     2,114,336       1,439,296    
Semiconductor equipment & products—3.83%  
Advanced Semiconductor
Engineering, Inc.		     2,155,083       1,927,535    
MediaTek, Inc.     339,900       3,311,911    
Taiwan Semiconductor
Manufacturing Co. Ltd.		     5,461,215       10,394,904    
Taiwan Semiconductor
Manufacturing Co. Ltd., ADR		     129,800       1,204,544    
      16,838,894    
Textiles & apparel—0.00%  
Formosa Taffeta Co. Ltd.     1,000       894    
Wireless telecommunication services—0.66%  
Far EasTone Telecommunications
Co. Ltd.		     2,330,000       2,877,586    
Total Taiwan common stocks     53,752,202    

 


144


UBS PACE Select Advisors Trust

UBS PACE International Emerging Markets Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(concluded)
Security description		   Number
of shares		   Value  
Thailand—3.76%  
Banks—0.47%  
Kasikornbank Public Co. Ltd.,
NVDR1 		     734,800     $ 1,858,699    
Siam City Bank Public Co. Ltd.5      465,500       198,805    
      2,057,504    
Construction materials—1.01%  
Siam Cement Public Co. Ltd.,
NVDR1 		     711,600       4,453,349    
Home builders—0.26%  
Land & Houses Public Co. Ltd.,
NVDR1 		     5,328,800       1,145,512    
Metals & mining—0.89%  
Banpu Public Co. Ltd., NVDR     296,302       3,910,998    
Oil & gas—1.13%  
PTT Exploration and Production
Public Co., Ltd. (NVDR)		     369,000       1,654,169    
PTT Public Co. Ltd.     341,700       3,332,649    
      4,986,818    
Total Thailand common stocks     16,554,181    
Turkey—1.92%  
Automobiles—0.54%  
Tofas Turk Otomobil
Fabrikasi A.S.		     520,129       2,369,884    
Diversified financials—0.48%  
Turkiye Vakiflar Bankasi T.A.O.,
Class D		     841,268       2,089,104    
Wireless telecommunication services—0.90%  
Turkcell Iletisim Hizmetleri A.S.
(Turkcell)		     442,772       3,979,783    
Total Turkey common stocks     8,438,771    
Total common stocks
(cost—$323,407,802)		     394,515,451    
Preferred stocks—7.87%  
Brazil—5.78%  
Banks—1.54%  
Banco Bradesco SA     96,204       2,555,777    
Itausa—Investimentos Itau SA     726,912       4,186,253    
      6,742,030    
Beverages—0.42%  
Companhia de Bebidas das
Americas (AmBev), ADR1 		     26,011       1,848,862    
Electric utilities—0.13%  
AES Tiete SA     17,300,000       586,174    

 

Preferred stocks—(concluded)
Security description		   Number
of shares		   Value  
Brazil—(concluded)  
Metals & mining—2.00%  
Companhia Vale do Rio Doce
(CVRD), Class A		     253,664     $ 6,456,246    
Usinas Siderurgicas de Minas
Gerais SA (Usiminas), Class A		     50,100       2,349,773    
      8,806,019    
Oil & gas—1.69%  
Petroleo Brasileiro SA—Petrobras,
ADR		     79,756       7,442,032    
Total Brazil preferred stocks     25,425,117    
South Korea—2.09%  
Automobiles—0.84%  
Hyundai Motor Co.     109,270       3,688,412    
Semiconductor equipment & products—1.25%  
Samsung Electronics Co. Ltd.     11,847       5,473,774    
Total South Korea
preferred stocks		     9,162,186    
Total preferred stocks
(cost—$23,634,718)		     34,587,303    
    Number
of rights		      
Rights*—0.00%  
Brazil—0.00%  
Banks—0.00%  
Banco Bradesco SA exercise price
BRL 43.00, expires 02/22/08		     1,329       3,136    
Thailand—0.00%  
Diversified telecommunication services—0.00%  
True Corporation Public Company
Ltd. exercise price $0.5764,
expires 03/28/085,6 		     218,684       0    
Total rights (cost—$0)     3,136    
    Face
amount9 		      
Corporate bond5,6,7,8—0.00%  
Brazil—0.00%  
Metals & mining—0.00%  
Companhia Vale do Rio Doce
1.000% , due 09/29/49
(cost—$0)		   $ 10,050       0    

 


145


UBS PACE Select Advisors Trust

UBS PACE International Emerging Markets Equity Investments

Portfolio of investments—January 31, 2008 (unaudited)

Security description   Face
amount9 		   Value  
Repurchase agreement—1.45%  
Repurchase agreement dated
01/31/08 with State Street
Bank & Trust Co., 1.400% due
02/01/08, collateralized by
$746,844 US Treasury Bills,
zero coupon due 05/01/08,
$469,827 US Treasury Bonds,
8.125% due 08/15/19 and
$4,839,762 US Treasury Notes,
4.750% due 12/31/08 to
01/31/12; (value—$6,523,951);
proceeds: $6,396,249
(cost—$6,396,000)		   $ 6,396,000     $ 6,396,000    
    Number
of shares		      
Investments of cash collateral from securities
loaned—14.72%		  
Money market funds10—14.72%  
AIM Prime Portfolio,
3.663%		     55       55    

 

Security description   Number
of shares		   Value  
Investments of cash collateral from securities
loaned—(concluded)		  
Money market funds10—(concluded)  
BlackRock Provident Institutional
TempFund,
4.123%		     15,264,219     $ 15,264,219    
DWS Money Market Series,
4.201%		     65,369       65,369    
UBS Private Money Market Fund
LLC,11
3.941%		     49,401,041       49,401,041    
Total money market funds and
investments of cash collateral
from securities loaned
(cost—$64,730,684)		     64,730,684    
Total investments
(cost—$418,169,204)—
113.77%		     500,232,574    
Liabilities in excess of other
assets—(13.77)%		     (60,542,346 )  
Net assets—100.00%   $ 439,690,228    

 

*  Non-income producing security.

1  Security, or portion thereof, was on loan at January 31, 2008.

2  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.20% of net assets as of January 31, 2008, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

3  Security is traded on the Euro OTC Exchange.

4  Security is traded on the Taipei Exchange.

5  Illiquid securities representing 0.05% of net assets as of January 31, 2008.

6  Security is being fair valued by a valuation committee under the direction of the board of trustees.

7  Perpetual bond security. The maturity date represents the final maturity.

8  Variable rate security. The interest rate shown is the current rate as of January 31, 2008, and resets periodically.

9  In US Dollars unless otherwise indicated.

10  Rates shown reflect yields at January 31, 2008.

11  The table below details the Portfolio's transaction activity in an affiliated issuer for the six months ended January 31, 2008.

Security description   Value at
07/31/07		   Purchases
during the
six months
ended
01/31/08		   Sales
during the
six months
ended
01/31/08		   Value at
01/31/08		   Net income
earned from
affiliate for
the six
months ended
01/31/08		  
UBS Private Money Market Fund LLC   $ 7,303,388     $ 283,430,882     $ 241,333,229     $ 49,401,041     $ 148,158    

 

ADR  American Depositary Receipt

BRL  Brazilian Real

GDR  Global Depositary Receipt

NVDR  Non Voting Depositary Receipt

OTC  Over The Counter

See accompanying notes to financial statements.
146


UBS PACE Select Advisors Trust

UBS PACE Global Real Estate Securities Investments

Performance

For the six months ended January 31, 2008, the Portfolio's Class P shares declined 5.66% (before deduction of the maximum UBS PACE Select program fee; the shares declined 6.37% after the deduction of the maximum UBS PACE Select program fee for the six month period). In comparison, the FTSE NAREIT Equity REIT Index declined 3.83% and the FTSE EPRA/NAREIT Global Real Estate Index (the "benchmark") declined 6.28%, while the Lipper Real Estate Funds median (which is inclusive of US and international funds) declined 4.82%. (Returns for all share classes over various time periods are shown in the "Performance at a Glance" table on page 150. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.)

Market review

During the period, volatility increased as macroeconomic headwinds persisted, driven by credit market concerns, high oil prices, weak US consumption and decelerating US employment growth. The credit dislocations led to an evaporation of debt available to real estate investors. For those who required debt, spreads widened significantly. (Spreads are the difference between the yield paid on U.S. Treasury bonds and higher risk securities with the same maturities.) These concerns led investors to take a more defensive posture, which resulted in a flight to quality within the real estate securities sector in terms of property, balance sheets and management.

During the reporting period, Hong Kong led the real estate securities group, returning 27.7%. All other Asian markets underperformed, with Japan, Australia and Singapore each down over 10%. North American securities fared slightly better, with the US and Canada down 4.4% and 4.9%, respectively, over the six-month reporting period. In Europe, with the exception of the Netherlands, all countries posted negative returns; most notably Spain, Italy, Germany and the UK. Likewise, all emerging markets underperformed meaningfully for the reporting period.

Advisor's comments

Although Hong Kong is further along in its fundamental recovery than other Asian markets, it continues to show strong occupancy and rental growth driven by a healthy local economy supported by Mainland China. Home prices increased over 12%, and rents increased over 10% in 2007 as wage growth, a strong local stock

UBS PACE Select Advisors Trust – UBS PACE Global Real Estate Securities Investments

Advisor:

Goldman Sachs Asset Management, L.P. ("GSAM")

Portfolio Managers:

Team, led by Mark Howard-Johnson and David Kruth, co-managers

Objective:

Total return

Investment process:

The Portfolio invests primarily in real estate investment trusts (REITs) and other real estate related securities. The Portfolio can invest in both developed and emerging markets around the world.

GSAM conducts fundamental, bottom-up research seeking to identify undervalued, well-managed businesses with strong growth potential that offer an attractive level of income and capital appreciation.


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Advisor's comments – continued

market and US Federal Reserve Board (the "Fed") interest rate cuts were positive for residential demand. Retail rents rose 14% while the central office market rents rose over 22%, driven by strong demand in a supply constrained environment. During the reporting period, our stock selection in Hong Kong detracted from performance.

In Japan, real estate fundamentals were solid, but volatility remains high due to growing global credit concerns. The office market continued to perform well. In Tokyo's five Central Wards (Central Wards are the 23 municipalities that make up the core and the most populous part of Tokyo), vacancy within the office sector declined to 2.55% in the fourth quarter of 2007 from 3.00% in the third quarter, while rent hikes continued to increase not only in the Class A space (that is, well located properties with high-quality tenants), but also in tertiary markets. Since new construction is limited or pre-leased, we believe this trend should continue. Not only do we expect fundamentals to remain strong, but we believe valuations are attractive with real estate operating companies trading at 35-40% discounts to their net asset values—representing some of the most attractive values globally. Our stock selection in Japan contributed positively to performance for the reporting period.

The US real estate securities market modestly outperformed the global real estate market, declining 4.4% over the period. As investors turned more defensive, those sub-sectors with long lease terms and companies with strong balance sheets performed best. Consequently, the industrial, healthcare and retail sectors outperformed, while the hotels, multifamily, and office sectors underperformed. Positive stock selection in every major sub-sector except the office sector contributed to performance. In addition, an underweight position to the multifamily sector and an overweight position to the industrial sector enhanced results. Conversely, stock selection in the office sector and underweight positions to the healthcare and self-storage sectors detracted from performance.

Real estate in emerging markets underperformed the broader real estate securities group during the reporting period. Its outperformance in prior periods, combined with credit market conditions, caused the weakness. However, the underlying emerging markets economies remain resilient, which drove our positive view of these markets. We continue to leverage our team to identify unique names such as Desarrollos Urbanos, a Mexican homebuilder capitalizing on increased homeownership and expansion of the mortgage market; Multiplan Empreendimentos Imobilarios, a Brazilian high-end regional mall owner expected to capitalize on favorable consumer trends; MRV Engenharia e Participacoes, another Brazilian-listed company that is focused on the for-sale housing market where there is a shortage of housing and a rate environment which is declining; and Megaworld Corp., a Philippines listed stock focused on the burgeoning office market housing English-speaking call centers.

Overall, our stock selection in the UK detracted from performance during the reporting period. Weakness in the UK largely stemmed from ongoing fears over the impact on the property market of recent credit market dislocation and concern over slowing fundamentals. With the UK property stocks now trading 20-30% below their net asset values, we believe the market has overreacted. Even though repricing needs to continue in the private market, where net asset values must come down, the UK REITs seem to be pricing in this change and more. As a result, many REITs, including British Land and Land Securities, have announced share buy-back programs, a testament of management's view that their stock is undervalued. With vacancy rates less than 4% in Central London and 2% in the West End, fundamentals remain very robust. Throughout the decline,


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Advisor's comments – concluded

we opportunistically increased our weightings in our higher conviction stocks including Great Portland Estates and Derwent London. Each has significant asset exposure and redevelopment opportunities, largely in the West End office market.

Special considerations

The Portfolio may be appropriate for long-term investors seeking to diversify a portion of their assets into real-estate related investments. Investors should be willing to withstand short-term fluctuations in the equity and real estate markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies or issuers in whose securities the Portfolio invests. The value of the Portfolio's investments in foreign securities may fall due to adverse political, social, and economic developments abroad and due to decreases in foreign currency values relative to the US dollar. These risks are greater for investments in emerging market issuers than for issuers in more developed countries. There are certain risks associated with investing in real estate-related investments, including sensitivity to economic downturns, interest rates, declines in property values and variation in property management.


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Performance at a glance (unaudited)

Average annual total returns for periods ended 01/31/08       6 months   1 year   Since
inception1 		  
Before deducting maximum   Class A2      -5.81 %     -15.39 %     -7.43 %  
sales charge or UBS PACE   Class C3      -6.14 %     -16.04 %     -8.17 %  
Select program fee   Class P4      -5.66 %     -15.16 %     -11.83 %  
After deducting maximum   Class A2      -11.03 %     -20.06 %     -11.97 %  
sales charge or UBS PACE   Class C3      -7.05 %     -16.86 %     -8.17 %  
Select program fee   Class P4      -6.37 %     -16.43 %     -13.14 %  
FTSE NAREIT Equity REIT Index       -3.83 %     -23.04 %     -15.39 %  
FTSE EPRA/NAREIT Global Real Estate Index         -6.28 %     -15.01 %     -10.12 %  
Lipper Real Estate Funds median         -4.82 %     -23.38 %     -16.06 %  

 

Average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: Class A—1-year period, -11.12%; since inception, -9.88%; Class C—1-year period, -7.63%; since inception, -5.67%; Class P—since inception, -10.35%. Please note that Class P since inception return has not been annualized.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 30, 2007 prospectuses were as follows: Class A—3.06% and 1.45%; Class C—3.78% and 2.20%; Class Y—1.92% and 1.20%; and Class P—3.02% and 1.20%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The portfolio and UBS Global AM have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse the portfolio so that the ordinary total operating expenses of each class through November 30, 2008 (excluding dividend expense, borrowing costs and interest expense, if any) would not exceed Class A—1.45%; Class C—2.20%; Class Y—1.20%; and Class P—1.20%. The portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the portfolio's expenses in any of those three years to exceed these expense caps described above.

1  Since inception returns are calculated as of commencement of issuance on December 18, 2006 for Class A and C shares, and January 22, 2007 for Class P shares. The Class Y shares commenced issuance on November 30, 2006 and had been totally redeemed by February 16, 2007. Since inception returns for the Indices and Lipper median are shown as of December 31, 2006, which is the month-end after the inception date of the oldest share classes (Class A & Class C).

2  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

3  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

4  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual UBS PACE Select program fee of 1.5% of the value of Class P shares.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

FTSE NAREIT Equity REIT Index—NAREIT (National Association of Real Estate Investment Trusts) is a voice for US REITs and publicly traded real estate companies worldwide. Members are real estate investment trusts (REITs) and other businesses that own, operate and finance income-producing real estate, as well as those firms and individuals who advise, study and service these businesses. Equity Real Estate Investment Trusts include those firms that own, manage and lease investment-grade commercial real estate. Specifically, a company is classified as an Equity REIT if 75% or more of its gross invested book assets is invested in real property.

The FTSE EPRA/NAREIT Global Real Estate Index Series is designed to represent general trends in eligible real estate equities worldwide. Relevant real estate activities are defined as the ownership, disposure and development of income-producing real estate.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for periods of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.


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Portfolio statistics (unaudited)

Characteristics   01/31/08  
Net assets (mm)   $ 72.1    
Number of holdings     87    
Portfolio composition1    01/31/08  
Common stocks     97.1 %  
Cash equivalents and other assets less liabilities     2.9    
Total     100.0 %  
Top five countries (equity investments)1    01/31/08  
United States     35.3 %  
Hong Kong     13.6    
Japan     13.1    
Australia     9.5    
United Kingdom     6.7    
Total     78.2 %  
Top ten equity holdings1    01/31/08  
Sun Hung Kai Properties     5.1 %  
Mitsubishi Estate     4.4    
Mitsui Fudosan     3.6    
Simon Property Group     3.5    
Vornado Realty Trust     3.5    
ProLogis     3.2    
Unibail Rodamco     3.1    
GPT Group     2.3    
Henderson Land Development Co.     2.2    
Boston Properties     1.8    
Total     32.7 %  

 

1  Weightings represent percentages of the Portfolio's net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time.


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Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—97.14%
Security description		   Number
of shares		   Value  
Australia—9.45%  
Alternative Real Estate—0.16%  
Australian Education Trust     94,800     $ 113,851    
Diversified—2.97%  
Abacus Property Group     333,843       425,360    
DB RREEF Trust     53,327       77,123    
GPT Group     479,353       1,639,594    
      2,142,077    
Hotels—0.33%  
Thakral Holdings Group     262,679       235,312    
Office—2.71%  
Tishman Speyer Office Fund     756,917       890,346    
Valad Property Group     1,106,045       1,066,560    
      1,956,906    
Residential—1.39%  
Australand Property Group1      449,984       766,646    
ING Real Estate Community
Living Group		     248,650       234,312    
      1,000,958    
Retail—1.89%  
Centro Retail Group     389,662       163,055    
Macquarie CountryWide Trust     12,177       16,488    
Macquarie DDR Trust     7,245       4,506    
Westfield Group     69,744       1,178,370    
      1,362,419    
Total Australia common stocks     6,811,523    
Brazil—2.46%  
Residential—0.50%  
MRV Engenharia e
Participacoes SA*		     19,396       361,125    
Retail—1.96%  
BR Malls Participacoes SA*     35,691       371,316    
Iguatemi Empresa de Shopping
Centers SA		     49,166       733,717    
Multiplan Empreendimentos
Imobiliarios SA*		     28,211       306,327    
      1,411,360    
Total Brazil common stocks     1,772,485    
Canada—2.78%  
Office—1.28%  
Brookfield Properties Corp.1      45,449       923,069    
Residential—1.50%  
Boardwalk Real Estate Investment
Trust		     27,400       1,084,757    
Total Canada common stocks     2,007,826    

 

Security description   Number
of shares		   Value  
China—2.18%  
Diversified—2.18%  
China Overseas Land &
Investment Ltd.		     528,000     $ 893,454    
Shui On Land Ltd.     639,500       676,768    
Total China common stocks     1,570,222    
France—5.28%  
Diversified—3.60%  
Fonciere des Regions     2,847       377,344    
Unibail Rodamco     9,347       2,216,922    
      2,594,266    
Retail—1.68%  
Klepierre     13,773       735,316    
Mercialys     12,762       475,992    
      1,211,308    
Total France common stocks     3,805,574    
Hong Kong—13.57%  
Diversified—9.77%  
Henderson Land Development
Co. Ltd.		     181,000       1,561,911    
Kerry Properties Ltd.     164,903       1,110,457    
Sun Hung Kai Properties Ltd.     182,000       3,656,365    
Wharf (Holdings) Ltd.     131,000       716,491    
      7,045,224    
Office—1.25%  
Hongkong Land Holdings Ltd.     189,000       902,012    
Residential—0.97%  
Agile Property Holdings Ltd.     624,000       696,603    
Retail—1.58%  
Hang Lung Properties Ltd.     279,000       1,139,518    
Total Hong Kong
common stocks		     9,783,357    
Japan—13.14%  
Diversified—5.67%  
Kenedix Realty Investment
Corp.		     144       948,723    
Mitsubishi Estate Co. Ltd.     118,000       3,138,248    
      4,086,971    
Office—6.81%  
Japan Excellent, Inc.     177       1,279,810    
Mitsui Fudosan Co. Ltd.     112,000       2,567,208    
Nippon Commercial Investment
Corp.		     81       350,259    
Sumitomo Realty & Development
Co. Ltd.		     29,000       715,219    
      4,912,496    
Residential—0.66%  
New City Residence Investment
Corp.		     122       476,655    
Total Japan common stocks     9,476,122    

 


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Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(concluded)
Security description		   Number
of shares		   Value  
Mexico—1.32%  
Residential—1.32%  
Urbi, Desarrollos Urbanos,
SA de C.V.*		     269,269     $ 952,146    
Philippines—1.20%  
Diversified—1.20%  
Megaworld Corp.     4,336,833       302,950    
Robinsons Land Corp.     1,636,900       562,157    
Total Philippines
common stocks		     865,107    
Singapore—3.76%  
Industrial—0.71%  
Ascendas Real Estate Investment
Trust (A-REIT)		     333,000       514,068    
Office—0.50%  
Ascendas India Trust     471,000       357,293    
Residential—1.78%  
Capitaland Ltd.     305,000       1,282,543    
Retail—0.77%  
CapitaMall Trust     260,000       554,553    
Total Singapore
common stocks		     2,708,457    
United Kingdom—6.73%  
Diversified—2.00%  
British Land Co. PLC     38,685       776,623    
China Central Properties Ltd.*     92,534       102,396    
Land Securities Group PLC     17,608       562,555    
      1,441,574    
Office—3.89%  
Dawnay Day Sirius Ltd.     306,228       346,004    
Derwent London PLC     45,422       1,233,825    
Great Portland Estates PLC     100,197       970,547    
Minerva PLC*     93,000       261,011    
      2,811,387    
Residential—0.48%  
Unite Group PLC     51,994       344,234    
Retail—0.36%  
Capital & Regional PLC     27,742       257,557    
Total United Kingdom
common stocks		     4,854,752    
United States—35.27%  
Diversified—3.48%  
Vornado Realty Trust     27,783       2,511,583    
Health care—1.51%  
Ventas, Inc.     24,605       1,087,541    

 

Security description   Number
of shares		   Value  
United States—(concluded)  
Hotels—3.36%  
Host Hotels & Resorts, Inc.     40,740     $ 681,988    
Morgans Hotel Group Co.1,*     49,289       718,141    
Orient-Express Hotels Ltd.,
Class A1 		     9,139       472,943    
Starwood Hotels & Resorts
Worldwide, Inc.		     12,168       550,602    
      2,423,674    
Industrial—5.28%  
AMB Property Corp.1      17,895       905,487    
ProLogis     39,451       2,341,417    
Public Storage, Inc.     7,151       559,566    
      3,806,470    
Office—4.75%  
Alexandria Real Estate Equities,
Inc.1 		     5,412       531,621    
Boston Properties, Inc.1      14,231       1,308,113    
Corporate Office Properties
Trust		     11,110       355,853    
Digital Realty Trust, Inc.1      9,257       330,753    
SL Green Realty Corp.     9,653       895,895    
      3,422,235    
Other—2.18%  
American Tower Corp., Class A*     23,416       878,803    
Gramercy Capital Corp.1      14,541       336,624    
iStar Financial, Inc.     13,434       358,419    
      1,573,846    
Residential—4.39%  
American Campus Communities,
Inc.1 		     26,268       757,832    
AvalonBay Communities, Inc.     13,668       1,284,108    
Equity Residential     9,260       346,417    
Essex Property Trust, Inc.     7,494       776,453    
      3,164,810    
Retail—10.32%  
Federal Realty Investment Trust     10,020       739,476    
General Growth Properties, Inc.     13,799       503,939    
Kimco Realty Corp.     35,502       1,271,327    
Regency Centers Corp.     11,954       734,334    
Simon Property Group, Inc.     28,556       2,552,335    
Taubman Centers, Inc.     15,059       755,209    
The Macerich Co.     12,999       888,742    
      7,445,362    
Total United States
common stocks		     25,435,521    
Total common stocks
(cost—$77,633,939)		     70,043,092    

 


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Portfolio of investments—January 31, 2008 (unaudited)

Security description   Face
amount		   Value  
Repurchase agreement—2.53%  
Repurchase agreement dated
01/31/08 with State Street
Bank & Trust Co., 1.400%,
due 02/01/08, collateralized
by $212,867 US Treasury Bills,
zero coupon due 05/01/08,
$133,911 US Treasury Bonds,
8.125% due 08/15/19 and
$1,379,438 US Treasury Notes,
4.750% due 12/31/08 to
01/31/12; (value—$1,859,469);
proceeds: $1,823,071
(cost—$1,823,000)		   $ 1,823,000     $ 1,823,000    

 

Security description   Number
of shares		   Value  
Investments of cash collateral from securities loaned—5.93%  
Money market funds2—5.93%  
AIM Prime Portfolio,
3.663%		     12     $ 12    
DWS Money Market Series,
4.201%		     2,010,212       2,010,212    
UBS Private Money Market
Fund LLC,3
3.941%		     2,269,476       2,269,476    
Total money market funds and
investments of cash collateral
from securities loaned
(cost—$4,279,700)		     4,279,700    
Total investments
(cost—$83,736,639)—
105.60%		     76,145,792    
Liabilities in excess of other
assets—(5.60)%		     (4,037,072 )  
Net assets—100.00%   $ 72,108,720    

 

*  Non-income producing security.

1  Security, or portion thereof, was on loan at January 31, 2008.

2  Rates shown reflect yield at January 31, 2008.

3  The table below details the Portfolio's transaction activity in an affiliated issuer during the six months ended January 31, 2008.

Security description   Value at
07/31/07		   Purchases
during the
six months
ended
01/31/08		   Sales
during the
six months
ended
01/31/08		   Value at
01/31/08		   Net income
earned from
affiliate for the
six months
ended
01/31/08		  
UBS Private Money Market Fund LLC   $ 6,923,073     $ 29,378,091     $ 34,031,688     $ 2,269,476     $ 12,536    

 

See accompanying notes to financial statements.
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Performance

For the six months ended January 31, 2008, the Portfolio's Class P shares declined 2.85% (before deduction of the maximum UBS PACE Select program fee, and declined 3.58% after deduction of the maximum UBS PACE Select program fee for the six month period). In comparison, the Merrill Lynch US Treasury 1-5 Year Index returned 7.17%, the MSCI World Free Index (net US) (the "benchmark") declined 5.54%, and the Consumer Price Index gained 1.34%, while the Lipper Global Flexible Portfolio Funds median declined 1.50%. (Returns for all share classes over various time periods are also shown in the "Performance at a Glance" table on page 158. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.)

Market review

Global equity market performance was down during the six-month period, as every region in the benchmark posted negative results. Within this Index, Asia ex Japan (-3.5%) fared the best, followed by the US (-4.2%) and Europe (-11.3%). Japan (-20.5%) was the biggest laggard, as it underperformed all of the other developed markets. Despite a weak January, emerging markets equities continued to outperform the developed markets as growth remained supported by high commodity prices. The US dollar continued to depreciate versus most major currencies, with the exception of the British pound.

Advisors' comments
Analytic Investors

Our portion of the Portfolio underperformed during the reporting period, largely due to the asset allocation component of our strategy.

We use a multi-strategy approach comprised of buying equities, global index futures and currencies. Within the Portfolio, we take both "long" and "short" positions on a security. Short positions represent borrowed securities, which are sold and must be repurchased and returned to the lender at a later date. A short position is taken when a security is expected to fall in price, while a long position is purchased with the expectation that the security will rise in price. In addition, we purchase call options. (A call option is a short-term contract pursuant to which the purchaser of the option, in return for a premium, has the right to buy the security underlying the option at a specified price at any time during the term of the option, or at specified times, or at the expiration of the option (depending on the type of option involved).

UBS PACE Select Advisors Trust – UBS PACE Alternative Strategies Investments

Advisors:

Analytic Investors, Inc. ("Analytic Investors"); Wellington Management Company, LLP ("Wellington Management") and Goldman Sachs Asset Management, L.P. ("GSAM")

Portfolio Managers:

Analytic Investors: Team, led by Gregory McMurran and Dennis Bein; Wellington Management: Team, led by Scott M. Elliott, Evan S. Grace, CFA, John R. Roberts and Trond Skramstad; GSAM: Team, led by Jonathan Beinner, Thomas Kenney, James Clark and Christopher Sullivan

Objective:

Long-term capital appreciation

Investment process:

Analytic Investors primarily employs a long/short global equity strategy. Analytic Investors also employs an index option strategy, pursuant to which the Portfolio may write index call options. In addition, Analytic Investors may employ a global tactical asset allocation strategy, comprised of investments in the currency markets and a market allocation component that uses derivatives, such as swaps, futures, and forward contracts to express its market views.

Wellington Management pursues a diversified total return strategy. Wellington Management pursues this strategy by buying or selling, directly or indirectly, listed or unlisted equity and fixed income securities issued by entities around the world, as well as derivative instruments.

(continued on next page)


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Advisors' comments – continued

Long-short equities subtracted 5.4% from performance during the reporting period. Equity positions in companies with positive earnings revisions helped performance as investors favored this characteristic over the period. However, our emphasis on companies with certain technical characteristics, such as those with above average price momentum, coupled with an emphasis on certain companies with what we believe to be attractive earnings-to-price ratios detracted from performance as they underperformed.

Our top equity performers were long positions in Raytheon Co. and Porsche Auto Holdings1 and a short position in Norske Skogindustrier. In contrast, our positions in Electronic Data Systems Corp., Ladbrokes1 and Polo Ralph Lauren1 detracted from relative performance. Our stock selection process detracted from performance over the period. Although positions in the energy and healthcare sectors performed well, our positions in the information technology, financials and consumer discretionary sectors had a negative impact on performance.

The asset allocation within the Portfolio subtracted 8.6% from overall performance, with equity and currency positions being the main negative contributors to results. Equity positions subtracted approximately 4%, with long positions in the Germany and Netherlands equity markets being the largest detractors. Bond performance was relatively flat, subtracting 0.3%, with positions in Japanese bonds positively contributing to performance, while short positions taken in UK debt securities detracted from performance. Currencies subtracted approximately 4.0% during the reporting period, with short positions in the Canadian dollar, euro and Swiss franc the largest detractors. In addition, a short position taken in the Japanese yen dampened performance, while a long position in the Norwegian krone added value.

Our positions in call options added 0.8% to performance in the declining equity market. In particular, calls written on the Amsterdam, CAC 40 French and Italian indices added value, as did calls written on the KBW bank index. In contrast, calls written on the oil and gas and Internet sectors hurt performance over the six-month period.

GSAM

From September 11, 2007, when we began managing a portion of the Portfolio, through January 31, 2008, we outperformed the benchmark. The portfolio benefited from positions poised to benefit from a steeper US yield curve, given the belief that the Federal Reserve would continue to reduce interest rates to prevent a recession. Additional positive contributors to performance included a long position in UK interest rates due to our view that the UK economy would not be immune to a US slowdown, and that the Bank of England would also reduce rates to prevent a slowdown in growth. A short position in Euroland interest rates versus a long position in US interest rates also benefited the portfolio. This occurred as markets began anticipating additional Federal Reserve rate cuts on the expectation that the European Central Bank ("ECB") would remain on hold, as European inflation remained above the ECB's 2% ceiling. The Portfolio's long positions in the Japanese yen and Swiss franc, and short positions in the Sterling and the US dollar also added to performance over the period.

On the negative side, positions in residential mortgages and corporate bonds detracted from performance as credit-sensitive sectors underperformed US Treasuries. Mortgage-backed security selection, particularly a focus on non-agency mortgage securities, also detracted from performance.

Investment process (concluded)

GSAM is expected to invest mainly in currencies, fixed income securities and financial derivatives instruments. GSAM focuses mainly on the global fixed income and currency markets, across variable investment grade and sub-investment grade sectors.

1  Not held by the Portfolio as of January 31, 2008.


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Advisors' comments – concluded
Wellington Management

Our portion of the Portfolio generated a positive return during the reporting period, outperforming the Portfolio's benchmark.

We employ a multi-strategy approach to managing our portfolio. Performance in the equity markets was weak during the period, and our underweight position in equities helped performance, both on an absolute basis and relative to the benchmark. Our portfolio's average net equity exposure during the period was approximately 36%. The biggest contributors to overall performance during the six-month period were our currency and hedge overlays. The hedge overlay, which consisted primarily of short positions in the Russell 2000 Index and the S&P 500 Index, significantly added to performance. Exposure to Treasury Inflation Protected Securities (TIPS) added to performance on the strength of US Treasuries, which performed well relative to equities during the period. The recently added agriculture sub-portfolio, which ended the period with a weight of approximately 8%, also contributed to performance.

On the other hand, the Japan and alternative energy were the biggest detractors from overall performance. As noted above, the Japanese market performed poorly. Elsewhere, with an average weight of 4.2% during the period, the Portfolio's alternative energy holdings detracted from results with a loss of 29.8%. Much of this lackluster performance came from a bet on uranium stocks, which were down 31.7% during the six-month period. Our credit overlay also detracted from overall performance. Initiated in January 2008, it underperformed as credit spreads—the difference between the yield paid on U.S. Treasury bonds and higher risk securities with the same maturities—widened significantly during the month.

Special considerations

The Portfolio may be appropriate for investors seeking long term capital appreciation who are able to withstand short-term fluctuations in the equity markets and fixed income markets in return for potentially higher returns over the long-term. The Portfolio may employ investment strategies that involve greater risks than the strategies used by many other mutual funds, including increased use of short sales (which involve the risk of an unlimited increase in the market value of the security sold short, which could result in a theoretically unlimited loss), leverage and derivative transactions, and hedging strategies. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the issuers of securities in which the Portfolio invests. The value of the Portfolio's investments in foreign securities may fall due to adverse political, social and economic developments abroad and due to decreases in foreign currency values relative to the US dollar. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.


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Performance at a glance (unaudited)

Average annual total returns for periods ended 01/31/08       6 months   1 year   Since
inception1 		  
Before deducting maximum   Class A2      -2.95 %     2.32 %     5.32 %  
sales charge or UBS PACE   Class B3      -3.32 %     1.58 %     5.91 %  
Select program fee   Class C4      -3.21 %     1.70 %     4.85 %  
    Class P5      -2.85 %     2.50 %     5.58 %  
After deducting maximum   Class A2      -8.32 %     -3.29 %     2.09 %  
sales charge or UBS PACE   Class B3      -8.06 %     -3.40 %     3.64 %  
Select program fee   Class C4      -4.15 %     0.70 %     4.85 %  
    Class P5      -3.58 %     0.98 %     4.01 %  
Merrill Lynch US Treasury 1-5 Year Index         7.17 %     10.33 %     7.94 %  
MSCI World Free Index (net US)         -5.54 %     -0.18 %     5.95 %  
Consumer Price Index       1.34 %     4.28 %     2.69 %  
Lipper Global Flexible Portfolio Funds median         -1.50 %     3.02 %     5.68 %  

 

Average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: Class A—1-year period, 1.58%; since inception, 3.96%; Class B—1-year period, 1.75%; since inception, 5.89%; Class C—1-year period, 5.77%; since inception, 6.92%; Class P—1-year period, 6.07%; since inception, 6.08%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 30, 2007 prospectuses were as follows: follows: Class A—2.70% and 2.59%; Class B—3.69% and 3.34%; Class C—3.46% and 3.34%; Class Y—2.34% and 2.29%; and Class P—2.44% and 2.34%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The portfolio and UBS Global AM have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse the portfolio so that the ordinary total operating expenses of each class through November 30, 2008 (excluding dividend expense, borrowing costs and interest expense, if any) would not exceed Class A—1.95%; Class B—2.70%; Class C—2.70%; Class Y—1.70%; and Class P—1.70%. The portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the portfolio's expenses in any of those three years to exceed these expense caps described above.

1  Since inception returns are calculated as of commencement of issuance on April 10, 2006 for Class P and A shares, May 19, 2006 for Class B shares, April 11, 2006 for Class C shares. Class Y shares commenced issuance on April 3, 2006 and had been totally redeemed by July 26, 2006. Since inception returns for the Indices and Lipper median are shown as of April 30, 2006, which is the month-end after the inception date of the oldest share class (Class P).

2  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

3  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

4  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

5  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual UBS PACE Select program fee of 1.5% of the value of Class P shares.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

The Merrill Lynch US Treasury 1-5 Year Index is an unmanaged index tracking US Treasury securities with maturities between 1 and 5 years.

The MSCI World Free Index (net US) is a broad-based securities index that represents the US and developed international equity markets in terms of capitalization and performance. It is designed to provide a representative total return for all major stock exchanges located inside and outside the United States. This benchmark has been calculated net of withholding tax from a US perspective by the Advisor.

Consumer Price Index (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. The Index is calculated by the Bureau of Labor Statistics.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for the period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.


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Portfolio statistics (unaudited)

Characteristics   01/31/08  
Net assets (mm)   $ 617.9    
Number of holdings     561    
Portfolio composition1    01/31/08  
Common stocks, preferred stocks and warrants     43.4 %  
Long-term debt securities (bonds and notes)     23.4    
ADRs and GDRs     0.9    
Investments sold short     (9.1 )  
Options, futures, swaps and forward foreign currency contracts     0.7    
Cash equivalents and other assets less liabilities     40.7    
Total     100.0 %  

 

Top five countries (long holdings)1    01/31/08  
United States     75.6 %  
Japan     3.6    
United Kingdom     2.6    
Canada     2.5    
France     2.0    
Total     86.3 %  
Top five sectors (long holdings)1    01/31/08  
Materials     6.8 %  
Financials     6.7    
Industrials     5.8    
Consumer discretionary     5.7    
Energy     5.2    
Total     30.2 %  
Top ten equity holdings (long holdings)1    01/31/08  
Deere & Co.     0.8 %  
Vivendi     0.8    
Raytheon Co.     0.8    
BASF AG     0.7    
Hewlett-Packard Co.     0.6    
Altria Group, Inc.     0.6    
Bunge Ltd.     0.6    
Encana Corp.     0.6    
Sempra Energy     0.6    
Occidental Petroleum     0.5    
Total     6.6 %  

 

Top five countries (short holdings)1    01/31/08  
United States     (3.3 )%  
United Kingdom     (1.3 )  
Canada     (1.2 )  
Japan     (1.1 )  
France     (0.6 )  
Total     (7.5 )%  
Top five sectors (short holdings)1    01/31/08  
Consumer discretionary     (2.1 )%  
Information technology     (1.8 )  
Materials     (1.3 )  
Financials     (1.0 )  
Health Care     (0.8 )  
Total     (7.0 )%  
Top ten equity holdings (short holdings)1    01/31/08  
Gilead Sciences, Inc.     (0.5 )%  
Sodexho Allance     (0.5 )  
Wolseley     (0.4 )  
Forest City Enterprises     (0.4 )  
Infineon Technologies AG     (0.4 )  
HOYA     (0.3 )  
Niko Resources     (0.3 )  
Cablevision Systems Corp., Class A     (0.3 )  
General Motors     (0.3 )  
Eldorado Gold     (0.3 )  
Total     (3.7 )%  

 

1  Weightings represent percentages of the Portfolio's net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time.

ADR  American Depositary Receipt

GDR  Global Depositary Receipt


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Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—44.08%
Security description		   Number
of shares		   Value  
Australia—1.93%  
Banks—0.18%  
Bendigo Bank Ltd.     15,470     $ 175,169    
Commonwealth Bank
of Australia		     11,423       514,719    
National Australia Bank Ltd.     14,227       449,544    
      1,139,432    
Metals & mining—1.00%  
Alumina Ltd.     115,949       546,001    
BHP Billiton Ltd.     94,462       3,171,971    
Energy Resources of
Australia Ltd.		     140,477       2,433,870    
      6,151,842    
Oil & gas—0.56%  
Paladin Resources Ltd.*     422,285       1,685,662    
Santos Ltd.     162,984       1,773,539    
      3,459,201    
Pharmaceuticals—0.00%  
Symbio Health Ltd.     2,958       10,494    
Real estate—0.19%  
ING Industrial Fund     423,388       774,651    
Macquarie Office Trust     365,250       376,286    
      1,150,937    
Total Australia common stocks             11,911,906    
Belgium—0.34%  
Diversified financials—0.14%  
Groupe Bruxelles Lambert SA*     7,722       897,097    
Food & drug retailing—0.15%  
Delhaize Group     12,099       926,279    
Pharmaceuticals—0.05%  
UCB SA     6,229       302,573    
Total Belgium common stocks             2,125,949    
Bermuda—1.52%  
Banks—0.01%  
Credicorp Ltd.     1,100       78,782    
Biotechnology—0.04%  
Mingyuan Medicare
Development Co. Ltd.		     1,690,000       262,990    
Construction & engineering—0.05%  
Foster Wheeler Ltd.1,*     4,200       287,574    
Diversified financials—0.06%  
Assured Guaranty Ltd.     15,900       376,194    
Food & drug retailing—0.02%  
People's Food Holdings Ltd.     143,000       97,007    
Food products—0.55%  
Bunge Ltd.1      28,800       3,411,936    

 

Security description   Number
of shares		   Value  
Bermuda—(concluded)  
Hotels, restaurants & leisure—0.08%  
China LotSynergy
Holdings Ltd.2,*		     1,348,000     $ 82,471    
Shangri-La Asia Ltd.     141,333       412,468    
      494,939    
Insurance—0.24%  
PartnerRe Ltd.1      18,600       1,474,608    
IT consulting & services—0.21%  
Accenture Ltd., Class A1      37,400       1,294,788    
Real estate—0.17%  
Kerry Properties Ltd.     126,000       848,485    
Sinofert Holdings Ltd.     256,000       205,782    
      1,054,267    
Retail—0.05%  
Huabao International
Holdings Ltd.		     325,000       299,483    
Textiles & apparel—0.04%  
Ports Design Ltd.     92,500       261,730    
Total Bermuda common stocks             9,394,298    
Brazil—0.57%  
Electric utilities—0.01%  
MPX Mineracao e Energia SA*     100       45,481    
Food products—0.10%  
Cosan SA Industria e Comercio     28,100       439,152    
Perdigao SA     7,900       176,504    
      615,656    
Health care providers & services—0.01%  
OdontoPrev SA     2,200       47,902    
Metals & mining—0.18%  
Companhia Vale do Rio Doce
(CVRD), ADR		     30,700       920,386    
MMX Mineracao e Metalicos SA*     200       98,692    
Usinas Siderurgicas de Minas
Gerais SA		     1,600       77,772    
      1,096,850    
Oil & gas—0.15%  
Petroleo Brasileiro SA, ADR     8,300       922,462    
Paper & forest products—0.06%  
Aracruz Celulose SA, ADR     5,100       366,231    
Real estate—0.01%  
Cyrela Brazil Realty SA     4,700       61,188    
Specialty retail—0.01%  
B2W Companhia Global do
Varejo (B2W Varejo)		     2,400       85,289    
Transportation services—0.04%  
All America Latina Logistica (ALL)     23,000       248,437    
Total Brazil common stocks             3,489,496    

 


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Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
Canada—2.30%  
Chemicals—0.70%  
Agrium, Inc.     19,100     $ 1,231,546    
Methanex Corp.*     19,800       497,145    
Potash Corp. of
Saskatchewan, Inc.		     18,500       2,613,271    
      4,341,962    
Food products—0.02%  
Saskatchewan Wheat Pool, Inc.*     9,300       108,186    
IT consulting & services—0.13%  
CGI Group, Inc., Class A*     79,700       797,754    
Metals & mining—0.70%  
Teck Cominco Ltd., Class B     31,800       1,038,199    
Uranium One, Inc.*     470,460       3,270,565    
      4,308,764    
Oil & gas—0.75%  
Canadian Natural Resources Ltd.     4,600       294,175    
Canadian Oil Sands Trust     7,000       264,927    
Encana Corp.     58,500       3,856,496    
Suncor Energy, Inc.     2,800       263,254    
      4,678,852    
Total Canada common stocks             14,235,518    
Cayman Islands—0.30%  
Auto components—0.01%  
Minth Group Ltd.     58,000       65,453    
Electronic equipment & instruments—0.03%  
Kingboard Chemical
Holdings Ltd.		     42,500       178,806    
Food products—0.01%  
Chaoda Modern Agriculture
(Holdings) Ltd.		     48,000       47,632    
Hotels, restaurants & leisure—0.04%  
Ctrip.com International
Ltd., ADR		     4,940       225,560    
Industrial conglomerates—0.03%  
Golden Meditech Co. Ltd.     552,000       224,005    
Internet software & services—0.02%  
Tencent Holdings Ltd.     17,600       105,077    
Machinery—0.03%  
China Infrastructure Machinery
Holdings Ltd.		     35,000       50,152    
Prime Success International
Group Ltd.		     296,000       172,532    
      222,684    
Multi-line retail—0.02%  
Golden Eagle Retail Group Ltd.     102,000       106,928    
Oil & gas—0.07%  
Transocean, Inc.*     3,608       442,341    

 

Security description   Number
of shares		   Value  
Cayman Islands—(concluded)  
Personal products—0.03%  
Hengan International
Group Co. Ltd.		     46,000     $ 169,753    
Pharmaceuticals—0.01%  
China Shineway Pharmaceutical
Group Ltd.		     94,000       64,467    
Total Cayman Islands
common stocks		             1,852,706    
Chile—0.01%  
Chemicals—0.01%  
Sociedad Quimica y Minera de
Chile SA, ADR		     400       70,888    
China—0.58%  
Automobiles—0.03%  
Dongfeng Motor Corp., Class H     268,000       176,681    
Banks—0.04%  
Industrial & Commercial Bank of
China, Class H		     454,000       270,816    
Chemicals—0.01%  
Sinopec Shanghai Petrochemical
Co. Ltd., Class H		     118,000       54,348    
Commercial services & supplies—0.02%  
Travelsky Technology Ltd.,
Class H		     124,000       125,666    
Construction & engineering—0.01%  
Baoye Group Co. Ltd., Class H     78,000       69,660    
Electric utilities—0.04%  
Datang International Power
Generation Co. Ltd., Class H		     230,000       142,005    
Huaneng Power
International, Inc., Class H		     122,000       99,918    
      241,923    
Energy equipment & services—0.05%  
China Oilfield Services Ltd.,
Class H		     156,000       291,697    
Health care equipment & supplies—0.03%  
Shandong Weigao Group
Medical Polymer Co. Ltd.,
Class H2 		     114,000       193,202    
Machinery—0.04%  
Shanghai Electric Group Co. Ltd.,
Class H		     162,000       126,085    
Shanghai Prime Machinery
Co. Ltd., Class H		     516,000       158,125    
      284,210    
Metals & mining—0.13%  
Angang Steel Co. Ltd., Class H     50,000       89,509    
China Shenhua Energy Co. Ltd.,
Class H		     34,500       179,428    
Jiangxi Copper Co. Ltd.     112,000       202,510    

 


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Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
China—(concluded)  
Metals & mining—(concluded)  
Yanzhou Coal Mining Co. Ltd.,
Class H		     184,000     $ 313,850    
      785,297    
Multi-line retail—0.01%  
Wumart Stores, Inc., Class H     58,000       39,690    
Oil & gas—0.01%  
PetroChina Co. Ltd., Class H     50,000       70,234    
Pharmaceuticals—0.04%  
Guangzhou Pharmaceutical
Co. Ltd., Class H		     354,000       222,247    
Real estate—0.03%  
Shanghai Forte Land Co. Ltd.,
Class H		     358,000       182,089    
Transportation infrastructure—0.06%  
China Communications
Construction Co. Ltd., Class H		     147,000       354,190    
Wireless telecommunication services—0.03%  
China Mobile (Hong Kong) Ltd.     13,500       199,880    
Total China common stocks             3,561,830    
Denmark—0.72%  
Banks—0.10%  
Danske Bank A/S     11,100       397,669    
Jyske Bank A/S*     3,550       228,755    
      626,424    
Beverages—0.43%  
Carlsberg A/S, Class B     24,800       2,619,998    
Electrical equipment—0.02%  
Vestas Wind Systems A/S*     1,150       111,518    
Pharmaceuticals—0.17%  
Novo Nordisk A/S, Class B     17,050       1,071,104    
Total Denmark common stocks             4,429,044    
Egypt—0.10%  
Construction & engineering—0.03%  
Orascom Construction
Industries (OCI)		     1,794       184,726    
Diversified financials—0.02%  
Egyptian Financial
Group-Hermes Holding		     9,799       104,488    
Hotels, restaurants & leisure—0.01%  
Orascom Hotels & Development*     5,330       73,804    
Telecommunications—0.04%  
Orascom Telecom Holding SAE     16,545       249,025    
Total Egypt common stocks             612,043    

 

Security description   Number
of shares		   Value  
Finland—0.13%  
Banks—0.13%  
OKO Bank PLC (OKO Pankki Oyj),
Class A		     44,852     $ 804,178    
France—2.00%  
Automobiles—0.50%  
PSA Peugeot Citroen     41,466       3,061,354    
Banks—0.03%  
BNP Paribas     1,825       180,429    
Societe Generale     292       36,229    
      216,658    
Construction materials—0.17%  
Lafarge SA     6,552       1,027,076    
Diversified telecommunication services—0.37%  
France Telecom SA     64,673       2,284,189    
Energy equipment & services—0.04%  
Technip SA     3,795       245,382    
Media—0.76%  
Vivendi     116,456       4,686,344    
Oil & gas—0.06%  
Total SA     5,099       369,858    
Pharmaceuticals—0.07%  
Sanofi-Aventis     5,698       464,048    
Total France common stocks             12,354,909    
Germany—1.68%  
Chemicals—0.66%  
BASF AG1      30,915       4,047,715    
Construction & engineering—0.04%  
Bilfinger Berger AG1      3,747       235,293    
Diversified financials—0.00%  
Hypo Real Estate Holding AG1      848       26,758    
Health care providers & services—0.04%  
Fresenius Medical Care AG & Co.     4,930       253,105    
Hotels, restaurants & leisure—0.38%  
TUI AG1,*     106,528       2,330,423    
Metals & mining—0.30%  
ThyssenKrupp AG     37,901       1,861,634    
Multi-line retail—0.26%  
Metro AG     19,878       1,633,753    
Total Germany common stocks             10,388,681    
Hong Kong—1.32%  
Banks—0.09%  
BOC Hong Kong (Holdings) Ltd.     102,500       257,682    
Hang Seng Bank Ltd.     15,600       313,612    
      571,294    
Distributors—0.05%  
China Resources Enterprise Ltd.     86,000       288,276    

 


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Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
Hong Kong—(concluded)  
Diversified financials—0.23%  
Hong Kong Exchanges &
Clearing Ltd.		     63,000     $ 1,308,585    
Swire Pacific Ltd.     6,000       81,974    
      1,390,559    
Industrial conglomerates—0.05%  
Beijing Enterprises Holdings Ltd.     48,000       204,609    
Shenzhen International
Holdings Ltd.		     692,500       72,346    
      276,955    
Insurance—0.01%  
China Insurance International
Holdings Co. Ltd.*		     34,000       70,717    
Real estate—0.88%  
Henderson Land Development
Co. Ltd.		     218,000       1,881,197    
New World Development Co. Ltd.     222,000       690,255    
Shun Tak Holdings Ltd.     108,000       151,651    
Sun Hung Kai Properties Ltd.     96,000       1,928,632    
Wharf (Holdings) Ltd.     114,000       623,511    
Wheelock & Co. Ltd.     58,000       173,623    
      5,448,869    
Trading companies & distributors—0.01%  
Shougang Concord International
Enterprises Co. Ltd.		     302,000       85,105    
Total Hong Kong common stocks             8,131,775    
India—0.13%  
Automobiles—0.02%  
Mahindra & Mahindra Ltd.     6,773       119,616    
Banks—0.02%  
Firstsource Solutions Ltd.*     19,000       25,949    
HDFC Bank Ltd., ADR     1,100       131,274    
      157,223    
Construction & engineering—0.03%  
Larsen & Toubro Ltd.     1,160       108,780    
Voltas Ltd.     13,422       65,339    
      174,119    
Diversified telecommunication services—0.02%  
Bharti Airtel Ltd.*     5,700       125,631    
Electrical equipment—0.01%  
Bharat Heavy Electricals Ltd.     1,100       57,903    
Metals & mining—0.02%  
JSW Steel Ltd.     4,063       101,996    
Pharmaceuticals—0.01%  
Nicholas Piramal India Ltd.     5,600       45,392    
Total India common stocks             781,880    

 

Security description   Number
of shares		   Value  
Indonesia—0.01%  
Banks—0.01%  
PT Bank Mandiri     187,000     $ 68,979    
Ireland—0.06%  
Pharmaceuticals—0.06%  
Elan Corp. PLC, ADR*     14,100       358,281    
Israel—0.11%  
Chemicals—0.06%  
Israel Chemicals Ltd.     8,247       106,811    
Makhteshim-Agan
Industries Ltd.*		     32,774       258,531    
      365,342    
Pharmaceuticals—0.05%  
Teva Pharmaceutical
Industries Ltd., ADR		     6,800       313,072    
Total Israel common stocks             678,414    
Italy—0.56%  
Banks—0.02%  
UniCredit SpA     17,992       132,080    
Diversified financials—0.07%  
IFI-Istituto Finanziario
Industriale SpA*		     13,633       402,534    
Insurance—0.42%  
Compagnia Assicuratrice
Unipol SpA		     984,674       2,596,284    
Oil & gas—0.05%  
ENI SpA     10,137       326,697    
Total Italy common stocks             3,457,595    
Japan—3.58%  
Banks—0.33%  
Mitsubishi UFJ Financial
Group, Inc. (MUFG)		     20,700       205,019    
Mizuho Financial Group, Inc.     86       407,600    
Sumitomo Mitsui Financial
Group, Inc.		     8       63,220    
The 77 Bank Ltd.     47,000       293,362    
The Bank of Kyoto Ltd.     21,000       250,547    
The Chiba Bank Ltd.     36,000       267,422    
The Gunma Bank Ltd.     43,000       297,377    
The Hachijuni Bank Ltd.     37,000       253,940    
      2,038,487    
Chemicals—0.29%  
Denki Kagaku Kogyo
Kabushiki Kaisha		     298,000       1,224,811    
Mitsubishi Chemical
Holdings Corp.		     53,500       388,879    
Mitsui Chemicals, Inc.     29,000       194,205    
      1,807,895    
Computers & peripherals—0.32%  
Toshiba Corp.     287,000       1,941,510    

 


163


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
Japan—(continued)  
Construction & engineering—0.04%  
Nishimatsu Construction Co. Ltd.     84,000     $ 234,050    
Electrical equipment—0.33%  
Hitachi Cable Ltd.     57,000       295,414    
Mitsubishi Electric Corp.     187,000       1,742,957    
      2,038,371    
Electronic equipment & instruments—0.52%  
Hitachi Ltd.     432,000       3,239,730    
Food products—0.05%  
Q.P. Corp.     29,100       280,824    
Health care equipment & supplies—0.04%  
Alfresa Holdings Corp.     3,800       234,418    
Olympus Corp.     1,000       33,522    
      267,940    
Health care providers & services—0.07%  
Suzuken Co. Ltd.     11,400       415,156    
Household durables—0.03%  
Sanyo Electric Co. Ltd.*     152,000       203,228    
Leisure equipment & products—0.24%  
Konica Minolta Holdings, Inc.     90,500       1,452,858    
Marine—0.11%  
Nippon Yusen Kabushiki Kaisha     82,000       669,812    
Multi-line retail—0.04%  
H20 Retailing Corp.     36,000       257,880    
Oil & gas—0.25%  
Nippon Oil Corp.     232,000       1,570,623    
Pharmaceuticals—0.30%  
Astellas Pharma, Inc.     9,600       415,829    
Daiichi Sankyo Co. Ltd.     14,000       420,286    
Eisai Co. Ltd.     11,400       469,052    
Kyowa Hakko Kogyo Co. Ltd.     1,000       10,059    
Taisho Pharmaceutical Co. Ltd.     25,000       517,995    
      1,833,221    
Real estate—0.18%  
Leopalace21 Corp.     47,100       1,137,696    
Road & rail—0.01%  
Nippon Express Co. Ltd.     10,000       53,938    
Semiconductor equipment & products—0.07%  
Nikon Corp.     16,000       448,723    
Software—0.16%  
Nintendo Co. Ltd.     2,000       999,802    
Specialty retail—0.07%  
Matsumotokiyoshi
Holdings Co. Ltd.*		     18,100       438,109    
Trading companies & distributors—0.13%  
Marubeni Corp.     23,000       157,896    

 

Security description   Number
of shares		   Value  
Japan—(concluded)  
Trading companies & distributors—(concluded)  
Sojitz Corp.     192,700     $ 659,475    
      817,371    
Total Japan common stocks             22,147,224    
Luxembourg—0.04%  
Metals & mining—0.04%  
Evraz Group SA, GDR     3,850       279,895    
Malaysia—0.06%  
Diversified financials—0.02%  
AMMB Holdings Berhad     76,900       88,052    
Malaysian Plantations Berhad     40,600       36,812    
      124,864    
Food products—0.04%  
Kuala Lumpur Kepong Berhad     46,000       249,784    
Total Malaysia common stocks             374,648    
Mauritius—0.06%  
Food products—0.06%  
Golden Agri-Resources Ltd.     249,000       344,665    
Mexico—0.06%  
Beverages—0.01%  
Coca-Cola Femsa SAB de C.V.
(Femsa), ADR		     1,800       84,510    
Construction & engineering—0.01%  
Impulsora del Desarrollo y el
Empleo en America Latina,
SA de C.V. (Ideal)*		     50,300       61,316    
Wireless telecommunication services—0.04%  
America Movil SA de C.V., ADR     3,800       227,658    
Total Mexico common stocks             373,484    
Netherlands—0.21%  
Energy equipment & services—0.05%  
Schlumberger Ltd.     4,200       316,932    
Food & drug retailing—0.01%  
X 5 Retail Group NV, GDR*     3,127       100,638    
Food products—0.06%  
Unilever NV     12,433       404,558    
Household durables—0.02%  
Koninklijke (Royal) Philips
Electronics N.V.		     2,635       103,372    
Machinery—0.04%  
CNH Global N.V.     4,600       227,516    
Pharmaceuticals—0.03%  
Zentiva N.V.     3,303       169,442    
Total Netherlands
common stocks		             1,322,458    

 


164


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
New Zealand—0.15%  
Construction materials—0.15%  
Fletcher Building Ltd.     116,477     $ 931,277    
Electric utilities—0.00%  
Vector Ltd.     17,569       29,314    
Total New Zealand
common stocks		             960,591    
Norway—0.58%  
Banks—0.05%  
DnB NOR ASA*     25,300       330,337    
Chemicals—0.10%  
Yara International ASA     12,450       601,939    
Electronic equipment & instruments—0.01%  
Tandberg ASA*     4,700       82,220    
Food products—0.06%  
Marine Harvest*     642,000       344,357    
Oil & gas—0.36%  
Norsk Hydro ASA     174,600       2,091,967    
Statoil ASA     4,000       104,582    
      2,196,549    
Total Norway common stocks             3,555,402    
Panama—0.00%  
Construction & engineering—0.00%  
McDermott International, Inc.1,*     500       23,590    
Philippines—0.01%  
Diversified telecommunication services—0.01%  
Philippine Long Distance
Telephone Co., ADR		     1,100       82,775    
Portugal—0.14%  
Banks—0.06%  
Banco Espirito Santo SA (BES)     20,987       367,830    
Diversified telecommunication services—0.08%  
Portugal Telecom, SGPS, SA     36,060       464,882    
Total Portugal common stocks             832,712    
Russia—0.16%  
Banks—0.02%  
Sberbank     30,864       111,776    
Oil & gas—0.14%  
Gazprom, ADR3      866       42,261    
Gazprom, ADR4      12,020       581,423    
LUKOIL, ADR     3,300       227,370    
      851,054    
Total Russia common stocks             962,830    
Singapore—0.72%  
Banks—0.05%  
Overseas-Chinese Banking
Corp. Ltd.		     56,000       297,224    

 

Security description   Number
of shares		   Value  
Singapore—(concluded)  
Electronic equipment & instruments—0.52%  
Flextronics International Ltd.1,*     277,100     $ 3,242,070    
Food products—0.05%  
Wilmar International Ltd.*     99,000       295,540    
Machinery—0.03%  
Yangzijiang Shipbuilding
Holdings Ltd.*		     200,000       183,780    
Real estate—0.04%  
CapitaMall Trust     110,000       234,619    
Schools—0.03%  
Raffles Education Corp. Ltd.     123,000       205,017    
Total Singapore common stocks             4,458,250    
South Africa—0.23%  
Construction & engineering—0.02%  
Murray & Roberts Holdings Ltd.     10,925       126,188    
Metals & mining—0.19%  
Anglo Platinum Ltd.     4,140       598,701    
Gold Fields Ltd., ADR     37,100       557,613    
      1,156,314    
Specialty retail—0.01%  
Truworths International Ltd.     11,219       39,154    
Wireless telecommunication services—0.01%  
MTN Group Ltd.     6,104       97,116    
Total South Africa
common stocks		             1,418,772    
South Korea—0.08%  
Household durables—0.01%  
LG Electronics, Inc.     927       90,471    
Internet software & services—0.02%  
NHN Corp.*     468       102,082    
Metals & mining—0.01%  
POSCO     151       81,798    
Pharmaceuticals—0.03%  
Dong-A Pharmaceutical Co. Ltd.     869       91,871    
Hanmi Pharm Co. Ltd.     424       66,057    
      157,928    
Semiconductor equipment & products—0.01%  
Samsung Electronics Co.
Ltd., GDR		     193       60,795    
Total South Korea
common stocks		             493,074    
Spain—1.10%  
Banks—0.16%  
Banco Bilbao Vizcaya
Argentaria SA		     4,307       90,843    
Banco Santander SA     51,146       897,141    
      987,984    
Electric utilities—0.12%  
Union Fenosa SA*     11,532       768,523    

 


165


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
Spain—(concluded)  
Gas utilities—0.01%  
Gas Natural SDG SA*     605     $ 33,369    
Oil & gas—0.37%  
Repsol YPF SA     71,750       2,288,204    
Specialty retail—0.44%  
Industria de Diseno Textil SA
(Inditex)		     54,134       2,717,461    
Total Spain common stocks             6,795,541    
Sweden—0.59%  
Banks—0.07%  
Nordea Bank AB     31,661       428,603    
Diversified telecommunication services—0.41%  
Tele2 AB1      123,500       2,520,337    
Machinery—0.11%  
Volvo AB, Class B     52,015       694,890    
Total Sweden common stocks             3,643,830    
Switzerland—0.77%  
Chemicals—0.17%  
Syngenta AG     3,924       1,034,955    
Electrical equipment—0.08%  
ABB Ltd.1      19,774       494,753    
Textiles & apparel—0.52%  
Swatch Group AG1      11,871       3,194,851    
Total Switzerland
common stocks		             4,724,559    
Taiwan—0.07%  
Airlines—0.02%  
Eva Airways Corp.*     277,000       137,474    
Diversified financials—0.02%  
Yuanta Financial
Holdings Co. Ltd.*		     134,000       102,250    
Electronic equipment & instruments—0.02%  
HON HAI Precision Industry Co.
Ltd (Foxconn)		     21,800       117,929    
Semiconductor equipment & products—0.01%  
Powertech Technology, Inc.     20,100       59,802    
Total Taiwan common stocks             417,455    
United Kingdom—2.40%  
Banks—0.20%  
Barclays PLC1      11,394       107,420    
HBOS PLC     2,714       37,482    
HSBC Holdings PLC1      30,496       457,247    
Royal Bank of Scotland
Group PLC1 		     23,953       182,990    
Standard Chartered PLC1      13,474       448,104    
      1,233,243    

 

Security description   Number
of shares		   Value  
United Kingdom—(concluded)  
Commercial services & supplies—0.20%  
De La Rue PLC1      67,397     $ 1,211,562    
Construction & engineering—0.32%  
Balfour Beatty PLC1      237,625       1,997,061    
Diversified financials—0.14%  
Schroders PLC1      40,845       889,905    
Diversified telecommunication services—0.23%  
BT Group PLC1      278,976       1,449,312    
Electronic equipment & instruments—0.00%  
Cookson Group PLC1      1,060       11,725    
Food & drug retailing—0.35%  
J Sainsbury PLC1      7,793       61,936    
William Morrison
Supermarkets PLC1 		     346,412       2,073,782    
      2,135,718    
Health care equipment & supplies—0.08%  
SSL International PLC1      46,113       480,832    
Metals & mining—0.65%  
Anglo American PLC1      36,302       1,985,179    
Antofagasta PLC1      116,694       1,531,683    
Eurasian Natural
Resources Corp.*		     33,136       507,373    
      4,024,235    
Oil & gas—0.18%  
BG Group PLC     23,191       510,355    
BP PLC     24,211       256,822    
Royal Dutch Shell PLC     9,154       316,690    
      1,083,867    
Pharmaceuticals—0.05%  
AstraZeneca PLC     7,834       326,782    
Total United Kingdom
common stocks		             14,844,242    
United States—18.70%  
Aerospace & defense—0.93%  
L-3 Communications
Holdings, Inc.		     10,300       1,141,549    
Raytheon Co.1      71,300       4,644,482    
      5,786,031    
Automobiles—0.13%  
Harley-Davidson, Inc.     20,400       827,832    
Banks—0.26%  
Bank of New York
Mellon Corp.1 		     5,200       242,476    
Northern Trust Corp.1      14,300       1,049,048    
Wachovia Corp.1      2,500       97,325    
Wells Fargo & Co.1      6,600       224,466    
      1,613,315    

 


166


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
United States—(continued)  
Biotechnology—0.89%  
Amgen, Inc.*     3,600     $ 167,724    
Genentech, Inc.*     7,400       519,406    
Gilead Sciences, Inc.*     12,500       571,125    
Invitrogen Corp.1,*     23,000       1,970,410    
Millennium
Pharmaceuticals, Inc.1,*		     147,900       2,243,643    
      5,472,308    
Chemicals—0.54%  
CF Industries Holdings, Inc.     5,900       630,887    
E.I. du Pont de Nemours and Co.     11,400       515,052    
Monsanto Co.     16,100       1,810,284    
The Mosaic Co.*     2,200       200,222    
Zep, Inc.     12,000       198,240    
      3,354,685    
Commercial services & supplies—0.48%  
Arbitron, Inc.     15,800       631,526    
Dun & Bradstreet Corp.1      8,300       763,434    
Manpower, Inc.1      27,500       1,547,150    
      2,942,110    
Computers & peripherals—0.98%  
Apple, Inc.1,*     8,900       1,204,704    
Hewlett-Packard Co.1      89,468       3,914,225    
NVIDIA Corp.1,*     38,700       951,633    
      6,070,562    
Containers & packaging—0.21%  
Owens-Illinois, Inc.1,*     18,300       922,320    
Smurfit-Stone Container Corp.1,*     41,300       391,937    
      1,314,257    
Diversified financials—1.01%  
Ameriprise Financial, Inc.1      56,800       3,141,608    
Discover Financial Services1      143,200       2,506,000    
Fannie Mae1      600       20,316    
Janus Capital Group, Inc.1      15,800       426,758    
TD Ameritrade Holding Corp.1,*     7,100       133,196    
      6,227,878    
Diversified telecommunication services—0.18%  
AT&T, Inc.1      28,804       1,108,666    
Electric utilities—0.38%  
Mirant Corp.1,*     1,200       44,208    
Reliant Energy, Inc.1,*     107,700       2,290,779    
      2,334,987    
Electrical equipment—0.20%  
Acuity Brands, Inc.     26,700       1,215,117    
Electronic equipment & instruments—0.50%  
Agilent Technologies, Inc.1,*     42,200       1,431,002    
Belden CDT, Inc.     38,300       1,620,090    

 

Security description   Number
of shares		   Value  
United States—(continued)  
Electronic equipment & instruments—(concluded)  
Jabil Circuit, Inc.1      900     $ 11,925    
      3,063,017    
Energy equipment & services—0.14%  
Baker Hughes, Inc.     3,000       194,790    
Halliburton Co.     4,100       135,997    
Nabors Industries Ltd.*     2,000       54,440    
Weatherford International Ltd.*     8,300       513,023    
      898,250    
Food & drug retailing—0.04%  
Terra Industries, Inc.*     5,400       243,378    
Food products—0.27%  
Archer-Daniels-Midland Co.     18,800       828,140    
Dean Foods Co.     9,900       277,200    
Hormel Foods Corp.     4,300       166,582    
Kraft Foods, Inc., Class A1      1,300       38,038    
Lance, Inc.     19,500       357,435    
      1,667,395    
Gas utilities—0.60%  
Sempra Energy1      66,700       3,728,530    
Health care equipment & supplies—0.46%  
Baxter International, Inc.     10,900       662,066    
Becton, Dickinson and Co.1      7,700       666,281    
Hologic, Inc.1,*     500       32,180    
Medtronic, Inc.     17,500       814,975    
St. Jude Medical, Inc.*     13,300       538,783    
Synthes, Inc.     1,044       133,402    
      2,847,687    
Health care providers & services—0.79%  
Aetna, Inc.     8,900       474,014    
Express Scripts, Inc.1,*     900       60,741    
Humana, Inc.*     1,900       152,570    
Lincare Holdings, Inc.1,*     1,800       60,138    
McKesson Corp.1      49,300       3,095,547    
UnitedHealth Group, Inc.     10,300       523,652    
WellPoint, Inc.*     6,700       523,940    
      4,890,602    
Household durables—0.14%  
Acco Brands Corp.*     65,700       890,235    
Industrial conglomerates—0.34%  
Carlisle Cos., Inc.     63,000       2,097,900    
Insurance—1.07%  
Berkshire Hathaway, Inc.*     435       1,979,250    
Metlife, Inc.1      30,400       1,792,688    
Unum Group1      125,600       2,841,072    
      6,613,010    
Internet & catalog retail—0.31%  
Amazon.com, Inc.*     24,300       1,888,110    

 


167


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Common stocks—(continued)
Security description		   Number
of shares		   Value  
United States—(continued)  
Internet software & services—0.08%  
Websense, Inc.*     25,400     $ 520,700    
IT consulting & services—0.09%  
Electronic Data Systems Corp.1      26,478       532,208    
Leisure equipment & products—0.44%  
Mattel, Inc.     128,200       2,693,482    
Machinery—1.41%  
AGCO Corp.*     10,500       632,310    
Deere & Co.1      54,200       4,756,592    
Flowserve Corp.     10,900       895,108    
Parker-Hannifin Corp.1      11,200       757,232    
SPX Corp.1      13,200       1,327,920    
Valmont Industries, Inc.     3,800       318,060    
      8,687,222    
Media—0.75%  
CBS Corp., Class B1      98,400       2,478,696    
Comcast Corp., Special Class A*     36,700       660,233    
Liberty Global, Inc.,*     28,500       1,060,200    
Walt Disney Co.1      14,400       430,992    
      4,630,121    
Metals & mining—0.38%  
CONSOL Energy, Inc.     2,100       153,300    
Freeport-McMoRan Copper &
Gold, Inc., Class B1 		     6,300       560,889    
Nucor Corp.     7,800       450,840    
Patriot Coal Corp.*     460       18,285    
Peabody Energy Corp.     3,600       194,472    
United States Steel Corp.1      9,700       990,467    
      2,368,253    
Oil & gas—1.98%  
Anadarko Petroleum Corp.1      36,300       2,126,817    
Apache Corp.1      8,800       839,872    
Chevron Corp.     7,200       608,400    
ConocoPhillips     5,400       433,728    
EOG Resources, Inc.     3,600       315,000    
Equitable Resources, Inc.     2,800       156,100    
Exxon Mobil Corp.     6,500       561,600    
Hess Corp.     2,200       199,826    
Marathon Oil Corp.     4,100       192,085    
Noble Energy     1,600       116,128    
Occidental Petroleum Corp.1      48,400       3,284,908    
Plains Exploration &
Production Co.1,*		     500       24,320    
Valero Energy Corp.     6,100       361,059    
Williams Cos., Inc.1      94,200       3,011,574    
      12,231,417    
Paper & forest products—0.11%  
Deltic Timber Corp.     13,000       693,680    

 

Security description   Number
of shares		   Value  
United States—(concluded)  
Pharmaceuticals—0.90%  
Abbott Laboratories     20,900     $ 1,176,670    
Bristol-Myers Squibb Co.1      14,200       329,298    
Eli Lilly & Co.     10,000       515,200    
Forest Laboratories, Inc.*     5,800       230,666    
Merck & Co., Inc.1      30,300       1,402,284    
Pfizer, Inc.1      33,900       792,921    
Schering-Plough Corp.     34,500       675,165    
Simcere Pharmaceutical
Group, ADR*		     9,800       117,502    
Wyeth     7,900       314,420    
      5,554,126    
Road & rail—0.24%  
GATX Corp.     39,400       1,481,440    
Semiconductor equipment & products—0.14%  
Maxim Integrated Products, Inc.     44,100       867,006    
Specialty retail—0.22%  
O'Reilly Automotive, Inc.*     32,800       965,304    
The Sherwin-Williams Co.1      6,500       371,865    
      1,337,169    
Textiles & apparel—0.11%  
UniFirst Corp.     17,300       706,532    
Tobacco—1.00%  
Altria Group, Inc.1      49,900       3,783,418    
Loews Corp. - Carolina Group1      29,100       2,389,983    
      6,173,401    
Total United States
common stocks		             115,572,619    
Total common stocks
(cost—$289,510,974)		             272,336,986    
Preferred stocks—0.15%  
Brazil—0.06%  
Diversified telecommunication services—0.02%  
Tele Norte Leste Participacoes SA
(Telemar)		     5,000       129,051    
Media—0.01%  
NET Servicos de Comunicacao SA*     4,645       53,976    
Paper & forest products—0.03%  
Votorantim Celulose e Papel SA     6,700       195,439    
Total Brazil preferred stocks             378,466    
United States—0.09%  
Financial services—0.09%  
Federal National Mortgage
Association, Series S5 		     20,000       528,400    
Total preferred stocks
(cost—$864,459)		             906,866    

 


168


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Security description   Number
of warrants		   Value  
Warrants*—0.05%  
India—0.05%  
Banks—0.01%  
Firstsource Solutions Ltd.
(Deutsche Bank AG),
strike price $1.42,
expires 01/30/176 		     23,300     $ 32,102    
Tata Steel Ltd. (Deutsche
Bank AG),
strike price $10.51,
expires 01/24/176,7 		     738       13,844    
      45,946    
Diversified financials—0.04%  
Bharat Heavy Electricals Ltd.
(Citigroup Global
Markets Holdings),
strike price $0.001,
expires 10/24/126 		     1,370       71,685    
Bharti Airtel Ltd. (Citigroup
Global Markets Holdings),
strike price $15.19,
expires 10/24/126 		     6,900       151,485    
Nicholas Piramal India Ltd.
(Citigroup Global
Markets Holdings),
strike price $16.02,
expires 12/24/126 		     6,600       52,104    
      275,274    
Total warrants
(cost—$294,609)		             321,220    
    Face
amount8 		      
Federal national mortgage association
certificates—15.77%		  
United States—15.77%  
FNMA
6.500%, due 10/01/37		   $ 27,212,483       28,250,958    
6.500%, due 11/01/37     28,458,332       29,544,351    
7.000%, due 12/01/36     4,852,290       5,108,624    
7.000%, due 03/01/37     775,614       816,588    
7.000%, due 04/01/37     2,651,787       2,791,874    
FNMA TBA
5.500%, TBA		     16,000,000       16,210,000    
7.000%, TBA     14,000,000       14,735,000    
Total federal national mortgage
association certificates
(cost—$96,328,808)		             97,457,395    

 

Security description   Face
amount8 		   Value  
Collateralized mortgage obligations—3.74%  
United States—3.74%  
American Home
Mortgage Assets,
Series 2006-3, Class 1A1
5.632%, due 10/25/469 		   $ 866,149     $ 807,683    
Series 2006-3, Class 2A11
5.602%, due 10/25/469 		     848,018       776,864    
Series 2007-1, Class A1
5.362%, due 02/25/479 		     876,068       824,051    
American Home Mortgage
Investment Trust,
Series 2004-3, Class 1A
3.746%, due 10/25/349 		     112,830       110,691    
Series 2005-4, Class 1A1
3.666%, due 11/25/459 		     1,242,330       1,175,955    
Banc of America Funding Corp.,
Series 2007-D, Class 1A5
4.214%, due 06/20/479 		     600,000       507,375    
BCAP LLC Trust,
Series 2006-RR1, Class CF
4.016%, due 11/25/369 		     363,937       361,789    
Bear Stearns Alternative
Trust-A Trust,
Series 2005-8, Class 11A1
3.646%, due 10/25/359 		     1,345,646       1,310,749    
Countrywide Alternative
Loan Trust,
Series 2005-61, Class 1A1
3.636%, due 12/25/359 		     1,676,609       1,576,765    
Series 2007-0A11, Class A1A
6.042%, due 11/25/479 		     987,558       901,068    
DSLA Mortgage Loan Trust,
Series 2006-AR2, Class 2A1A
4.134%, due 11/19/379 		     742,274       693,222    
Harborview Mortgage Loan Trust,
Series 2005-9, Class 2A1A
4.274%, due 06/20/359 		     755,375       725,704    
Series 2005-10, Class 2A1A
4.244%, due 11/19/359 		     476,343       444,473    
Series 2005-11, Class 2A1A
4.244%, due 08/19/459 		     396,322       374,004    
Series 2005-16, Class 3A1A
4.184%, due 01/19/369 		     885,994       842,888    
Series 2006-1, Class 2A1A
4.174%, due 03/19/379 		     1,546,322       1,408,374    
Series 2006-12, Class 2A2A
4.124%, due 01/19/389 		     810,801       744,750    
Indymac Index Mortgage
Loan Trust,
Series 2006-AR4, Class A1A
3.586%, due 05/25/469 		     2,831,879       2,669,804    
Luminent Mortgage Trust,
Series 2006-2, Class A1A
3.576%, due 02/25/469 		     2,737,456       2,541,025    
Series 2006-5, Class A1A
3.566%, due 07/25/369 		     1,041,645       945,975    

 


169


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Security description   Face
amount8 		   Value  
Collateralized mortgage obligations—(concluded)  
United States—(concluded)  
Morgan Stanley Capital I,
Series 2005-HQ7, Class A4
5.374%, due 11/14/429 		   $ 500,000     $ 491,754    
Morgan Stanley Mortgage
Loan Trust,
Series 2007-15AR, Class 2A1
6.493%, due 11/25/379 		     986,608       987,101    
Mortgageit Trust,
Series 2005-AR1, Class 1A1
3.626%, due 11/25/359 		     991,838       930,235    
Residential Accredit Loans, Inc.,
Series 2007-QH9, Class A1
6.550%, due 11/25/37		     984,108       983,211    
Total collateralized
mortgage obligations
(cost—$23,472,929)		             23,135,510    
Asset-backed securities—0.40%  
United States—0.40%  
CIT Mortgage Loan Trust,
Series 2007-1, Class 2A1
4.376%, due 10/25/372,9,10 		     464,723       451,943    
Series 2007-1, Class 2A2
4.626%, due 10/25/372,9,10 		     130,000       119,600    
Series 2007-1, Class 2A3
4.826%, due 10/25/372,9,10 		     230,000       200,100    
GMAC Mortgage Corp.
Loan Trust,
Series 2007-HE3, Class 1A1
7.000%, due 09/25/37		     96,265       95,182    
Series 2007-HE3, Class 2A1
7.000%, due 09/25/37		     142,829       141,222    
Household Home Equity
Loan Trust,
Series 2007-3, Class APT
6.235%, due 11/20/36		     474,505       445,683    
USAA Auto Owner Trust,
Series 2007-2, Class A3
4.900%, due 02/15/12		     1,000,000       1,019,784    
Total asset-backed securities
(cost—$2,538,669)		             2,473,514    
Corporate notes—3.06%  
Australia—0.05%  
Financial services—0.05%  
Westfield Capital/Westfield
Financial
4.375%, due 11/15/106 		     325,000       319,796    
Bermuda—0.04%  
Insurance—0.02%  
White Mountains Re Group
6.375%, due 03/20/176 		     150,000       148,852    

 

Security description   Face
amount8 		   Value  
Corporate notes—(continued)  
Bermuda—(concluded)  
Reinsurance—0.02%  
Endurance Specialty Holdings
7.000%, due 07/15/34		   $ 125,000     $ 118,609    
      267,461    
Canada—0.20%  
Oil & gas—0.20%  
Canadian Natural Resources
5.150%, due 02/01/13		     250,000       254,983    
5.700%, due 05/15/17     225,000       226,007    
Encana Corp.
6.500%, due 02/01/38		     325,000       335,405    
Nexen, Inc.
6.400%, due 05/15/37		     225,000       217,702    
Transocean, Inc.
6.800%, due 03/15/38		     200,000       208,084    
      1,242,181    
Cayman Islands—0.04%  
Special purpose entity—0.04%  
Resona Preferred Global Securities
7.191%, due 07/30/156,11,12 		     275,000       272,802    
Denmark—0.06%  
Telecommunication services—0.06%  
Nordic Telephone Co. Holdings
8.250%, due 05/01/16		   EUR 250,000       353,091    
Jersey—0.02%  
Special purpose entity—0.02%  
QBE Capital Funding II LP
6.797%, due 06/01/172,10,11,12 		     150,000       141,242    
Luxembourg—0.17%  
Banking-non-US—0.02%  
VTB Capital SA
6.609%, due 10/31/126 		     150,000       148,500    
Special purpose entity—0.06%  
Hellas Telecom V
8.076%, due 10/15/129 		   EUR 250,000       341,011    
Telephone-integrated—0.09%  
Telecom Italia Capital
6.000%, due 09/30/34		     200,000       187,344    
6.200%, due 07/18/11     325,000       338,712    
      526,056    
      1,015,567    
Netherlands—0.06%  
Containers—0.06%  
Impress Holdings BV
7.701%, due 09/15/139 		   EUR 250,000       336,366    
United Kingdom—0.23%  
Banks—0.20%  
HSBC Holdings PLC
6.500%, due 09/15/37		     250,000       244,833    
JP Morgan Chase London
10.000%, due 05/22/459 		     680,000       608,523    

 


170


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Security description   Face
amount8 		   Value  
Corporate notes—(continued)  
United Kingdom—(concluded)  
Banks—(concluded)  
Royal Bank of Scotland
Group PLC
6.990%, due 10/05/176,11,12 		   $ 150,000     $ 150,039    
9.118%, due 03/31/1011,12      200,000       216,645    
      1,220,040    
Special purpose entity—0.03%  
Swiss Re Capital I LP
6.854%, due 05/25/166,11,12 		     175,000       169,288    
      1,389,328    
United States—2.19%  
Agricultural operations—0.07%  
Cargill, Inc.
5.200%, due 01/22/132,10 		     400,000       403,295    
Banking-US—0.42%  
Bank of America Corp.
5.750%, due 12/01/17		     200,000       205,776    
8.000%, due 01/30/1811,12      525,000       545,344    
JP Morgan Chase Bank NA
6.000%, due 10/01/17		     250,000       260,638    
Wachovia Corp. MTN
5.750%, due 02/01/18		     350,000       350,789    
Wells Fargo & Co.
4.375%, due 01/31/13		     850,000       849,771    
5.625%, due 12/11/17     375,000       385,379    
      2,597,697    
Cable—0.22%  
Comcast Corp.
5.500%, due 03/15/11		     225,000       230,096    
6.450%, due 03/15/37     200,000       193,813    
Comcast Holdings Corp.
10.625%, due 07/15/12		     250,000       297,220    
COX Communications, Inc.
4.625%, due 01/15/10		     400,000       401,164    
CSC Holdings, Inc., Series B
7.625%, due 04/01/11		     250,000       247,500    
      1,369,793    
Chemicals—0.04%  
Ferro Corp.
9.125%, due 01/01/09		     250,000       255,000    
Data processing—0.04%  
Fiserv, Inc.
6.125%, due 11/20/12		     250,000       260,103    
Diversified financials—0.02%  
ANZ Capital Trust I
4.484%, due 01/15/106,11,12 		     150,000       147,446    
Electric-generation—0.02%  
AES Corp.
9.500%, due 06/01/09		     125,000       128,750    

 

Security description   Face
amount8 		   Value  
Corporate notes—(continued)  
United States—(continued)  
Electric-integrated—0.11%  
Commonwealth Edison Co.
5.900%, due 03/15/36		   $ 150,000     $ 140,042    
FirstEnergy Corp.
7.375%, due 11/15/31		     100,000       109,835    
Midamerican Energy Holdings Co.
6.125%, due 04/01/36		     225,000       223,573    
Nevada Power Co.
6.500%, due 05/15/18		     225,000       236,046    
      709,496    
Financial services—0.61%  
Bear Stearns Co., Inc.
7.250%, due 02/01/18		     800,000       799,970    
Citigroup, Inc.
5.850%, due 07/02/13		     500,000       525,566    
Countrywide Home Loans MTN
4.125%, due 09/15/09		     100,000       89,167    
International Lease Finance
Corp. MTN
4.950%, due 02/01/11		     175,000       174,704    
Lehman Brothers Holdings
5.375%, due 10/17/12		   EUR 300,000       433,766    
6.200%, due 09/26/14     150,000       154,374    
Lehman Brothers Holdings MTN
5.625%, due 01/24/13		     575,000       582,429    
Merrill Lynch & Co., Inc.
5.450%, due 02/05/13		     450,000       450,700    
6.400%, due 08/28/17     100,000       102,718    
Morgan Stanley MTN
5.550%, due 04/27/17		     200,000       199,248    
5.950%, due 12/28/17     225,000       227,132    
      3,739,774    
Medical products—0.02%  
HCA, Inc.
9.625%, due 11/15/16		     125,000       131,563    
Multi-line insurance—0.02%  
CNA Financial Corp.
7.250%, due 11/15/23		     100,000       103,304    
Oil & gas—0.30%  
Anadarko Petroleum Corp.
5.950%, due 09/15/16		     200,000       206,232    
Boardwalk Pipelines LP
5.875%, due 11/15/16		     225,000       233,327    
Energy Transfer Partners
5.950%, due 02/01/15		     450,000       449,451    
Enterprise Products Operating LLC
6.300%, due 09/15/17		     350,000       362,985    
ONEOK Partners, LP
6.150%, due 10/01/16		     175,000       178,676    
6.850%, due 10/15/37     50,000       50,942    
XTO Energy, Inc.
6.250%, due 08/01/17		     375,000       399,569    
      1,881,182    

 


171


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Security description   Face
amount8 		   Value  
Corporate notes—(concluded)  
United States—(concluded)  
Pipeline—0.07%  
Tennessee Gas Pipeline
8.375%, due 06/15/32		   $ 350,000     $ 408,035    
Real estate—0.04%  
Hospitality Properties Trust
6.700%, due 01/15/18		     225,000       216,370    
Retail-restaurants—0.08%  
Darden Restaurants, Inc.
5.625%, due 10/15/12		     225,000       227,426    
Yum! Brands, Inc.
6.250%, due 03/15/18		     275,000       283,508    
      510,934    
Telephone-integrated—0.11%  
AT&T, Inc.
6.300%, due 01/15/38		     350,000       347,558    
Sprint Capital Corp.
8.375%, due 03/15/12		     325,000       337,793    
      685,351    
      13,548,093    
Total corporate notes
(cost—$18,690,381)		             18,885,927    
Non-US government obligations—0.41%  
Argentina—0.08%  
Republic of Argentina
2.000%, due 01/03/169 		   ARS 790,000       458,290    
Mexico—0.33%  
Mexican Fixed Rate Bonds,
10.000%, due 12/05/24		   MXN 18,320,000       2,052,361    
Total non-US
government obligations
(cost—$2,282,411)		             2,510,651    
Time deposit—10.52%  
Banking-US—10.52%  
PNC Bank N.A.
3.063%, due 02/01/08
(cost—$65,000,000)		     65,000,000       65,000,000    
Short-term US government obligation—2.64%  
US Treasury Bills
3.010%, due 06/05/0813
(cost—$16,332,500)		     16,505,000       16,332,500    

 

Security description   Face
amount8 		   Value  
Repurchase agreement—21.58%  
Repurchase agreement dated
01/31/08 with State Street
Bank & Trust Co., 1.400%,
due 02/01/08 collateralized by
$15,573,153 US Treasury Bills,
zero coupon due 05/01/08,
$9,796,799 US Treasury Bonds,
8.125% due 08/15/19 and
$100,918,423 US Treasury
Notes, 4.750% due 12/31/08
to 01/31/12;
(value—$136,037,025);
proceeds: $133,374,187
(cost—$133,369,000)		   $ 133,369,000     $ 133,369,000    
    Number
of contracts		      
Options*—0.00%  
Put options purchased—0.00%  
Euro Dollar Options,
strike @ 1.30, expires 10/21/08
(cost—$19,230)		     92,000       15,299    
Total investments before
investments sold short
(cost—$648,703,970)—
102.40%		             632,744,868    
    Number
of shares		      
Investments sold short—(9.07)%  
Common Stocks—(9.07)%  
Australia—(0.27)%  
Beverages—(0.22)%  
Foster's Group Ltd.     (195,290 )     (989,415 )  
Lion Nathan Ltd.     (44,670 )     (381,043 )  
      (1,370,458 )  
Chemicals—0.00%  
Orica Ltd.     (301 )     (7,888 )  
Specialty retail—(0.05)%  
Billabong International Ltd.     (26,601 )     (287,286 )  
Total Australia common stocks             (1,665,632 )  
Bermuda—(0.28)%  
Semiconductor equipment & products—(0.28)%  
Marvell Technology Group Ltd.     (144,600 )     (1,716,402 )  
Canada—(1.24)%  
Energy equipment & services—(0.31)%  
Niko Resources Ltd.     (22,500 )     (1,907,251 )  
Food & drug retailing—(0.01)%  
Loblaw Cos. Ltd.     (2,000 )     (64,300 )  

 


172


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Investments sold short—(continued)
Common Stocks—(continued)
Security description		   Number
of shares		   Value  
Canada—(concluded)  
Industrial conglomerates—(0.11)%  
UTS Energy Corp.     (128,800 )   $ (682,452 )  
Metals & mining—(0.75)%  
Eldorado Gold Corp.     (267,300 )     (1,757,064 )  
Ivanhoe Mines Ltd.     (138,000 )     (1,353,817 )  
Kinross Gold Corp.     (19,600 )     (432,389 )  
Uranium One, Inc.     (156,100 )     (1,085,183 )  
      (4,628,453 )  
Oil & gas—(0.06)%  
OPTI Canada, Inc.     (7,000 )     (115,383 )  
Trican Well Service Ltd.     (18,800 )     (255,210 )  
      (370,593 )  
Total Canada common stocks             (7,653,049 )  
France—(0.64)%  
Aerospace & defense—(0.08)%  
Zodiac SA     (9,943 )     (508,221 )  
Hotels, restaurants & leisure—(0.47)%  
Sodexho Alliance SA     (53,164 )     (2,885,385 )  
Media—(0.05)%  
Societe Television Francaise     (13,160 )     (332,993 )  
Real estate—(0.04)%  
Klepierre     (4,382 )     (233,947 )  
Total France common stocks             (3,960,546 )  
Germany—(0.52)%  
Semiconductor equipment & products—(0.35)%  
Infineon Technologies AG     (213,893 )     (2,174,508 )  
Textiles & apparel—(0.17)%  
Adidas AG     (16,744 )     (1,069,305 )  
Total Germany common stocks             (3,243,813 )  
Japan—(1.05)%  
Auto components—(0.13)%  
NGK Spark Plug Co. Ltd.     (47,000 )     (818,753 )  
Chemicals—(0.03)%  
Nippon Shokubai Co. Ltd.     (21,000 )     (186,165 )  
Electronic equipment & instruments—(0.32)%  
HOYA Corp.     (72,600 )     (1,979,027 )  
Gas utilities—(0.05)%  
Tokyo Gas Co. Ltd.     (69,000 )     (321,524 )  
Insurance—(0.05)%  
T&D Holdings, Inc.     (5,950 )     (319,358 )  
Media—(0.08)%  
Toho Co. Ltd.     (20,900 )     (504,224 )  
Multi-line retail—(0.11)%  
Marui Co. Ltd.     (77,700 )     (681,361 )  

 

Security description   Number
of shares		   Value  
Japan—(concluded)  
Semiconductor equipment & products—(0.28)%  
Advantest Corp.     (79,100 )   $ (1,740,480 )  
Total Japan common stocks             (6,550,892 )  
Jersey—(0.15)%  
Real estate—(0.15)%  
Meinl European Land Ltd.     (71,972 )     (918,461 )  
Netherlands—(0.17)%  
Construction materials—(0.17)%  
James Hardie Industries NV     (187,536 )     (1,065,301 )  
Norway—(0.12)%  
Paper & forest products—(0.12)%  
Norske Skogindustrier ASA     (128,300 )     (741,762 )  
Singapore—(0.01)%  
Real estate—(0.01)%  
Singapore Land Ltd.     (13,000 )     (55,780 )  
United Kingdom—(1.28)%  
Electric utilities—(0.24)%  
British Energy Group PLC     (141,493 )     (1,458,424 )  
Electronic equipment & instruments—(0.21)%  
Premier Farnell PLC     (454,409 )     (1,275,765 )  
Media—(0.11)%  
Emap PLC     (37,260 )     (681,289 )  
Software—(0.18)%  
Misys PLC     (318,503 )     (1,102,045 )  
Specialty retail—(0.14)%  
Signet Group PLC     (670,259 )     (879,826 )  
Trading companies & distributors—(0.40)%  
Wolseley PLC     (179,316 )     (2,473,119 )  
Total United Kingdom
common stocks		             (7,870,468 )  
United States—(3.34)%  
Air freight & couriers—(0.07)%  
Expeditors International of
Washington, Inc.		     (9,400 )     (444,526 )  
Automobiles—(0.32)%  
General Motors Corp.     (62,600 )     (1,772,206 )  
Harley-Davidson, Inc.     (4,700 )     (190,726 )  
      (1,962,932 )  
Beverages—(0.01)%  
Brown-Forman Corp., Class B     (1,400 )     (88,172 )  
Biotechnology—(0.64)%  
Amylin Pharmaceuticals, Inc.     (28,000 )     (830,200 )  
Gilead Sciences, Inc.     (68,400 )     (3,125,196 )  
      (3,955,396 )  
Containers & packaging—(0.20)%  
Sealed Air Corp.     (46,700 )     (1,221,205 )  

 


173


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Investments sold short—(concluded)
Common Stocks—(continued)
Security description		   Number
of shares		   Value  
United States—(continued)  
Diversified financials—(0.29)%  
Merrill Lynch & Co., Inc.     (15,800 )   $ (891,120 )  
Moody's Corp.     (25,000 )     (874,750 )  
      (1,765,870 )  
Diversified telecommunication services—(0.11)%  
Level 3 Communications, Inc.     (194,100 )     (667,704 )  
Electric utilities—(0.22)%  
AES Corp.     (72,000 )     (1,373,760 )  
Gas utilities—(0.12)%  
Southwestern Energy Co.     (13,200 )     (738,012 )  
Health care providers & services—(0.12)%  
Tenet Healthcare Corp.     (163,900 )     (726,077 )  
Hotels, restaurants & leisure—(0.03)%  
Las Vegas Sands Corp.     (1,900 )     (166,573 )  
Wendy's International, Inc.     (1,000 )     (24,420 )  
      (190,993 )  
Household durables—(0.17)%  
Centex Corp.     (37,500 )     (1,041,750 )  
Insurance—(0.12)%  
Old Republic International Corp.     (50,600 )     (755,458 )  
Media—(0.31)%  
Cablevision Systems Corp.,
Class A		     (78,600 )     (1,845,528 )  
Lamar Advertising Co., Class A     (1,300 )     (56,056 )  
      (1,901,584 )  

 

Security description   Number
of shares		   Value  
United States—(concluded)  
Real estate—(0.38)%  
Forest City Enterprises, Inc.,
Class A		     (58,900 )   $ (2,347,165 )  
Semiconductor equipment & products—(0.19)%  
Micron Technology, Inc.     (163,300 )     (1,147,999 )  
Trading companies & distributors—(0.04)%  
Fastenal Co.     (6,900 )     (278,829 )  
Total United States
common stocks		             (20,607,432 )  
Total common stocks sold short
(proceeds—$62,154,150)		             (56,049,538 )  
Other assets in excess of
liabilities—6.67%		             41,233,958    
Net assets—100.00%   $ 617,929,288    

 

*  Non-income producing security.

1  Security, or portion thereof, pledged as collateral for investments sold short and written options.

2  Illiquid security. These securities represent 0.26% of net assets as of January 31, 2008.

3  Security is traded on the London Exchange.

4  Security is traded on the NASDAQ Exchange.

5  Non cumulative preferred stock. The next call date is 12/31/10.

6  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.27% of net assets as of January 31, 2008, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

7  Security is being fair valued by a valuation committee under the direction of the board of trustees.

8  In US Dollars unless otherwise indicated.

9  Floating rate security. The interest rate shown is the current rate as of January 31, 2008.

10  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.21% of net assets as of January 31, 2008, are considered illquid and restricted (see table below for more information).


174


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Portfolio of investments—January 31, 2008 (unaudited)

Illiquid and restricted security   Acquisition
date		   Acquisition
cost		   Acquisition cost
as a percentage
of net assets		   Value at
01/31/08		   Value as a
percentage
of net assets		  
Cargill, Inc. 5.200%, 01/22/13   01/16/08   $ 399,668       0.06 %   $ 403,295       0.07 %  
CIT Mortgage Loan Trust, Series 2007-1,
Class 2A1 4.376%, 10/25/37		   10/05/07     464,723       0.08       451,943       0.07    
CIT Mortgage Loan Trust, Series 2007-1,
Class 2A2 4.626%, 10/25/37		   10/05/07     130,000       0.02       119,600       0.02    
CIT Mortgage Loan Trust, Series 2007-1,
Class 2A3 4.826%, 10/25/37		   10/05/07     230,000       0.04       200,100       0.03    
QBE Capital Funding II LP 6.797%, 06/01/17   10/09/07     149,411       0.02       141,242       0.02    
        $ 1,373,802       0.22 %   $ 1,316,180       0.21 %  

 

11  Perpetual bond security. The maturity date reflects the next call date.

12  Variable rate security. The interest rate shown is the current rate as of January 31, 2008, and resets at the next call date.

13  Rate shown is the discount rate at date of purchase.

ADR  American Depositary Receipt

ARS  Argentine Dollar

EUR  Euro

FNMA  Federal National Mortgage Association

GDR  Global Depositary Receipt

GMAC  General Motors Acceptance Corporation

MTN  Medium Term Note

MXN  Mexican Peso

TBA  (To Be Announced) Security is purchased on a forward commitment basis with an approximate principal amount (generally +/- 1.0%) and no definite maturity date. The actual principal amount and maturity date will be determined upon settlement when the specific mortgage pools are assigned.

Written Options

Number of
contracts
(000)		   Currency   Call options written   Expiration
dates		   Premiums
received		   Current
value		   Unrealized
appreciation
(depreciation)		  
  205     EUR   DJ Euro Stoxx 50 Index, strike @ $4,150   02/29/08   $ 44,341     $ 8,229     $ 36,112    
  44     EUR   SPMIB MI Index, strike @ $37,000   02/15/08     19,741       4,742       14,999    
  34     GBP   FTSE 100 Index, strike @ $6,000   02/15/08     43,902       52,060       (8,158 )  
  26     USD   AMEX Broker Deal, strike @ $190   02/15/08     13,701       53,040       (39,339 )  
  44     USD   AMEX MS Tech 35 Index, strike @ $560   02/15/08     25,036       27,280       (2,244 )  
  27     USD   Morgan Stanley CYC Index, strike @ $910   02/15/08     41,113       167,400       (126,287 )  
  30     USD   MS CMDTY REL, strike @ $810   02/15/08     50,910       85,200       (34,290 )  
  72     USD   Oil Services Index, strike @ $280   02/15/08     19,728       4,680       15,048    
  90     USD   S&P 500 Index, strike @ $1,370   02/16/08     190,297       328,500       (138,203 )  
  32     USD   S&P 400 Midcap Index, strike @ $780   02/15/08     31,968       111,040       (79,072 )  
        $ 480,737     $ 842,171     $ (361,434 )  

 


175


UBS PACE Select Advisors Trust

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Portfolio of investments—January 31, 2008 (unaudited)

Futures contracts

Number of
contracts
(000)		   Currency   Buy contracts   Expiration
dates		   Cost   Current
value		   Unrealized
appreciation
(depreciation)		  
  85     EUR   DAX Index Futures   March 2008   $ 24,970,406     $ 21,742,329     $ (3,228,077 )  
  61     EUR   DJ Euro Stoxx 50 Index Futures   March 2008     3,954,060       3,450,093       (503,967 )  
  133     EUR   EOE Dutch Stock Index Futures   February 2008     18,657,360       17,378,169       (1,279,191 )  
  368     EUR   Euro Bund 10 Year Futures   March 2008     62,796,878       63,579,794       782,916    
  52     GBP   FTSE 100 Index Futures   March 2008     6,532,349       6,072,308       (460,041 )  
  75     GBP   Long Gilt Futures   March 2008     16,538,489       16,485,991       (52,498 )  
  126     HKD   Hang Seng Stock Index Futures   February 2008     19,657,134       18,984,685       (672,449 )  
  27     JPY   Japan Government Bonds 10 Year Futures   March 2008     34,583,868       34,980,012       396,144    
  48     JPY   TOPIX Index Futures   March 2008     6,976,377       6,076,464       (899,913 )  
  365     SEK   OMX 30 Stock Index Futures   February 2008     5,438,676       5,404,302       (34,374 )  
  95     SGD   MSCI Singapore Stock Index Futures   February 2008     5,079,591       4,841,823       (237,768 )  
  26     USD   Federal Funds Futures   February 2008     10,393,385       10,514,049       120,664    
  6     USD   S&P 500 Index Futures   March 2008     2,250,750       2,069,400       (181,350 )  
  321     USD   S&P Mini 500 Index Futures   March 2008     22,447,218       22,142,580       (304,638 )  
  4     USD   US Treasury Note 2 Year Futures   March 2008     851,567       852,875       1,308    
  1,066     USD   US Treasury Note 5 Year Futures   March 2008     118,867,004       120,458,000       1,590,996    
  90     USD   US Treasury Note 10 Year Futures   March 2008     10,253,672       10,504,688       251,016    
                      370,248,784       365,537,562       (4,711,222 )  
        Sale contracts       Proceeds          
  225     AUD   Australian 10 Year Bond Futures   March 2008     19,841,774       19,959,947       (118,173 )  
  90     AUD   SPI 200 Futures   March 2008     12,792,274       11,294,435       1,497,839    
  185     CAD   S&P TSE 60 Index Futures   March 2008     29,632,254       28,427,098       1,205,156    
  110     EUR   CAC 40 10 Year Euro Index Futures   February 2008     8,548,020       7,947,045       600,975    
  19     EUR   DAX Index Futures   March 2008     5,615,760       4,860,050       755,710    
  44     EUR   EOE Dutch Stock Index Futures   February 2008     6,302,102       5,749,169       552,933    
  22     EUR   IBEX 35 Index Futures   February 2008     4,571,973       4,315,948       256,025    
  36     GBP   FTSE 100 Index Futures   March 2008     4,561,832       4,203,905       357,927    
  164     GBP   United Kingdom Long Gilt Futures   March 2008     35,746,932       36,049,366       (302,434 )  
  49     JPY   TOPIX Index Futures   March 2008     7,045,005       6,203,056       841,949    
  329     SEK   OMX 30 Stock Index Futures   February 2008     4,744,073       4,871,275       (127,202 )  
  39     USD   Euro Dollar Futures   March 2008     9,466,842       9,466,763       79    
  14     USD   Euro Dollar Futures   September 2008     3,399,765       3,414,425       (14,660 )  
  14     USD   Euro Dollar Futures   December 2008     3,402,302       3,410,225       (7,923 )  
  266     USD   Russell E-Mini 2000 Futures   March 2008     20,340,735       19,019,000       1,321,735    
  701     USD   US Treasury Bonds Futures   March 2008     81,847,868       83,638,062       (1,790,194 )  
  173     USD   US Treasury Note 10 Year Futures   March 2008     19,757,214       20,192,344       (435,130 )  
                      277,616,725       273,022,113       4,594,612    
    $ (116,610 )  

 

Currency type abbreviations:

AUD  Australian Dollar

CAD  Canadian Dollar

EUR  Euro

GBP  Great Britain Pound

HKD  Hong Kong Dollar

JPY  Japanese Yen

SEK  Swedish Krona

SGD  Singapore Dollar

USD  US Dollar


176


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Forward foreign currency contracts

    Contracts to
deliver		   In
exchange for		   Maturity
dates		   Unrealized
appreciation
(depreciation)		  
Argentine Peso     18,790,000     USD 5,974,563     02/15/08   $ 33,935    
Argentine Peso     10,425,000     USD 3,293,839     02/15/08     (2,119 )  
Australian Dollar     8,808,000     USD 7,726,045     03/19/08     (126,491 )  
Australian Dollar     18,503,000     USD 16,136,497     03/19/08     (359,356 )  
Australian Dollar     7,317,583     USD 6,297,000     03/19/08     (226,795 )  
Australian Dollar     20,180,000     USD 17,730,919     03/19/08     (260,018 )  
Brazilian Real     1,124,704     USD 631,324     02/06/08     (7,407 )  
Brazilian Real     11,232,000     USD 6,245,459     03/19/08     (87,314 )  
Brazilian Real     2,995,000     USD 1,690,915     03/19/08     2,288    
Brazilian Real     1,124,704     USD 622,587     05/15/08     (5,147 )  
Canadian Dollar     4,839,000     USD 4,766,851     03/19/08     (47,352 )  
Canadian Dollar     651,000     USD 648,038     03/19/08     375    
Canadian Dollar     452,000     USD 450,275     03/19/08     592    
Canadian Dollar     2,733,000     USD 2,722,437     03/19/08     3,442    
Canadian Dollar     22,294,233     USD 22,207,800     03/19/08     27,816    
Canadian Dollar     1,629,000     USD 1,616,954     03/19/08     (3,698 )  
Canadian Dollar     56,634,000     USD 56,089,600     03/19/08     (254,176 )  
Chilean Peso     1,644,300,000     USD 3,492,566     02/15/08     (45,360 )  
Chinese Yuan     20,980,000     USD 2,922,006     06/18/08     (100,739 )  
Chinese Yuan     20,155,000     USD 2,807,103     06/18/08     (96,777 )  
Columbian Peso     2,376,700,000     USD 1,173,168     02/15/08     (49,095 )  
Czech Koruna     1,130,000     USD 63,087     03/19/08     (1,392 )  
Czech Koruna     30,710,000     USD 1,716,524     03/19/08     (35,816 )  
Egyptian Pound     7,350,000     USD 1,336,364     06/03/08     24,805    
Euro     3,803,335     NOK 30,845,803     03/19/08     36,493    
Euro     7,122,109     SEK 66,507,963     03/19/08     (137,291 )  
Euro     1,551,520     USD 2,259,435     02/26/08     (45,651 )  
Euro     4,527,000     USD 6,653,899     03/19/08     (67,071 )  
Euro     723,000     USD 1,061,263     03/19/08     (12,133 )  
Euro     1,856,000     USD 2,701,927     03/19/08     (53,567 )  
Euro     4,186,000     USD 6,152,742     03/19/08     (61,965 )  
Euro     55,434,013     USD 81,044,799     03/19/08     (1,254,816 )  
Euro     6,452,000     USD 9,467,185     03/19/08     (111,719 )  
Euro     49,442,000     USD 72,889,556     03/19/08     (514,070 )  
Great Britain Pound     1,264,479     USD 2,577,328     02/20/08     65,850    
Great Britain Pound     18,262,000     USD 37,272,975     03/19/08     1,064,246    
Great Britain Pound     570,000     USD 1,133,732     03/19/08     3,572    
Great Britain Pound     7,606,000     USD 15,350,804     03/19/08     270,113    

 


177


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Forward foreign currency contracts—(continued)

    Contracts to
deliver		   In
exchange for		   Maturity
dates		   Unrealized
appreciation
(depreciation)		  
Great Britain Pound     34,494,448     USD 69,528,193     03/19/08   $ 1,134,802    
Great Britain Pound     5,272,000     USD 10,562,323     03/19/08     109,338    
Great Britain Pound     1,290,000     USD 2,662,238     03/19/08     104,508    
Hungarian Forint     442,572,000     USD 2,527,486     03/19/08     (7,366 )  
Hungarian Forint     342,600,000     USD 1,971,277     03/19/08     9,019    
Icelandic Krona     392,261,000     USD 6,127,033     03/19/08     160,333    
Icelandic Krona     20,339,000     USD 312,908     03/19/08     3,530    
Icelandic Krona     195,605,000     USD 3,082,370     03/19/08     107,013    
Indian Rupee     52,810,000     USD 1,340,355     02/15/08     535    
Indonesian Rupiah     22,049,467,000     USD 2,325,975     02/15/08     (54,592 )  
Indonesian Rupiah     15,130,674,000     USD 1,592,200     02/15/08     (41,381 )  
Israeli Shekel     4,330,000     USD 1,123,753     03/19/08     (74,278 )  
Japanese Yen     27,932,619     USD 261,786     02/21/08     (1,269 )  
Japanese Yen     652,200,000     USD 6,113,235     03/19/08     (39,830 )  
Japanese Yen     230,800,000     USD 2,155,941     03/19/08     (21,500 )  
Japanese Yen     158,100,000     USD 1,425,825     03/19/08     (65,741 )  
Japanese Yen     10,126,103,723     USD 93,421,203     03/19/08     (2,111,717 )  
Japanese Yen     1,851,147,000     USD 16,744,849     03/19/08     (719,467 )  
Malaysian Ringgit     22,990,000     USD 7,079,220     03/19/08     (21,946 )  
Mexican Peso     27,140,000     USD 2,461,436     03/19/08     (32,405 )  
Mexican Peso     42,211,000     USD 3,834,385     03/19/08     (44,301 )  
Mexican Peso     21,334,476     USD 1,935,978     04/15/08     (18,275 )  
New Zealand Dollar     14,843,000     USD 11,186,476     03/19/08     (437,071 )  
New Zealand Dollar     12,192,000     USD 9,397,576     03/19/08     (149,974 )  
New Zealand Dollar     5,566,000     USD 4,179,462     03/19/08     (179,270 )  
New Zealand Dollar     20,207,000     USD 15,298,032     03/19/08     (526,061 )  
Norwegian Krone     6,780,000     USD 1,247,424     03/19/08     (1,734 )  
Norwegian Krone     153,308,000     USD 28,053,830     03/19/08     (191,882 )  
Norwegian Krone     65,993,098     USD 11,910,190     03/19/08     (248,484 )  
Norwegian Krone     88,404,000     USD 15,998,986     03/19/08     (288,708 )  
Norwegian Krone     5,770,000     USD 1,061,841     03/19/08     (1,233 )  
Philippine Peso     132,830,000     USD 3,279,427     02/15/08     7,690    
Polish Zloty     155,000     USD 62,439     03/19/08     (1,363 )  
Polish Zloty     2,439,000     USD 999,300     03/19/08     (4,653 )  
Polish Zloty     7,965,000     USD 3,229,862     03/19/08     (48,732 )  
Polish Zloty     11,890,000     USD 4,772,609     03/19/08     (121,614 )  
Romanian Leu     9,600,000     USD 3,889,051     03/19/08     85,307    
Russian Ruble     35,050,000     USD 1,428,863     03/19/08     (2,277 )  
Russian Ruble     100,460,000     USD 4,087,063     03/19/08     (14,858 )  

 


178


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Forward foreign currency contracts—(continued)

    Contracts to
deliver		   In
exchange for		   Maturity
dates		   Unrealized
appreciation
(depreciation)		  
Russian Ruble     94,950,000     USD 3,861,326     03/19/08   $ (15,614 )  
Singapore Dollar     17,129,000     USD 11,931,946     03/19/08     (178,771 )  
Singapore Dollar     18,629,000     USD 13,056,933     03/19/08     (114,329 )  
Slovakian Koruna     36,330,000     USD 1,576,823     03/19/08     (29,861 )  
Slovakian Koruna     11,190,000     USD 487,451     03/19/08     (7,423 )  
South African Rand     5,750,000     USD 835,139     03/19/08     74,898    
South African Rand     70,610,000     USD 10,087,750     03/19/08     751,991    
South African Rand     6,130,000     USD 830,334     03/19/08     19,851    
South Korean Won     9,264,000,000     USD 9,898,322     03/05/08     94,947    
South Korean Won     7,342,300,000     USD 7,917,425     03/19/08     149,493    
Swedish Krona     400,000     USD 63,142     03/19/08     374    
Swedish Krona     205,483,000     USD 32,181,445     03/19/08     (63,117 )  
Swedish Krona     155,638,795     USD 24,239,568     03/19/08     (183,401 )  
Swedish Krona     90,785,000     USD 14,214,013     03/19/08     (32,045 )  
Swedish Krona     450,000     USD 71,520     03/19/08     905    
Swedish Krona     5,609,041     USD 877,896     03/20/08     (2,248 )  
Swiss Franc     5,830,000     USD 5,272,103     03/19/08     (127,319 )  
Swiss Franc     2,270,000     USD 2,096,262     03/19/08     (6,086 )  
Swiss Franc     770,000     USD 687,789     03/19/08     (25,343 )  
Swiss Franc     29,396,822     USD 26,835,358     03/19/08     (390,346 )  
Swiss Franc     4,185,000     USD 3,761,838     03/19/08     (114,076 )  
Swiss Franc     75,772,000     USD 67,451,566     03/19/08     (2,724,252 )  
Taiwan Dollar     435,775,000     USD 13,535,255     02/15/08     (38,891 )  
Turkish Lira     6,085,000     USD 4,987,883     03/19/08     (123,891 )  
United States Dollar     6,350,944     ARS 19,940,000     02/15/08     (46,734 )  
United States Dollar     7,963,938     ARS 24,955,000     02/15/08     (74,190 )  
United States Dollar     7,398,263     AUD 8,564,000     03/19/08     236,742    
United States Dollar     11,807,180     AUD 13,524,000     03/19/08     249,779    
United States Dollar     8,201,926     AUD 9,224,395     03/19/08     21,836    
United States Dollar     58,106,357     AUD 66,553,000     03/19/08     1,227,183    
United States Dollar     7,486,275     BRL 13,554,000     03/19/08     155,677    
United States Dollar     2,672,238     CAD 2,650,000     03/19/08     (35,818 )  
United States Dollar     24,614,098     CAD 24,818,000     03/19/08     76,721    
United States Dollar     3,885,471     CAD 3,925,000     03/19/08     19,415    
United States Dollar     648,214     CHF 722,000     03/19/08     20,462    
United States Dollar     8,830,354     CHF 9,881,000     03/19/08     320,880    
United States Dollar     6,463,711     CHF 7,280,000     03/19/08     278,620    
United States Dollar     11,687,727     CHF 12,985,000     03/19/08     338,258    
United States Dollar     37,428,000     CHF 41,169,245     03/19/08     700,669    

 


179


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Forward foreign currency contracts—(continued)

    Contracts to
deliver		   In
exchange for		   Maturity
dates		   Unrealized
appreciation
(depreciation)		  
United States Dollar     4,003,555     CHF 4,482,000     03/19/08   $ 147,425    
United States Dollar     14,462,691     CHF 16,048,000     03/19/08     400,075    
United States Dollar     6,326,970     CLP 2,973,689,000     02/15/08     71,310    
United States Dollar     7,317,929     CNY 53,275,000     06/18/08     357,796    
United States Dollar     1,084,324     COP 2,116,600,000     02/15/08     4,178    
United States Dollar     1,726,515     COP 3,374,906,000     02/15/08     9,095    
United States Dollar     2,267,949     CZK 40,340,000     03/19/08     33,888    
United States Dollar     2,800,857     CZK 50,309,000     03/19/08     69,819    
United States Dollar     1,609,009     EGP 8,930,000     06/03/08     (15,510 )  
United States Dollar     2,904,464     EGP 16,250,000     06/03/08     (4,759 )  
United States Dollar     344,704     EUR 237,891     02/26/08     8,729    
United States Dollar     5,866,618     EUR 3,965,000     03/19/08     19,984    
United States Dollar     3,046,604     EUR 2,060,000     03/19/08     11,757    
United States Dollar     18,413,994     EUR 12,505,000     03/19/08     151,444    
United States Dollar     104,913,753     EUR 71,208,583     03/19/08     805,438    
United States Dollar     4,920,765     EUR 3,345,000     03/19/08     45,360    
United States Dollar     6,117,058     EUR 4,148,000     03/19/08     41,234    
United States Dollar     2,930,574     GBP 1,448,256     02/20/08     (54,082 )  
United States Dollar     10,955,133     GBP 5,440,000     03/19/08     (169,048 )  
United States Dollar     2,454,936     GBP 1,195,000     03/19/08     (85,567 )  
United States Dollar     10,387,381     GBP 5,050,000     03/19/08     (374,563 )  
United States Dollar     19,878,243     GBP 9,864,000     03/19/08     (320,533 )  
United States Dollar     62,144,748     GBP 31,288,123     03/19/08     (108,653 )  
United States Dollar     21,547,152     GBP 10,790,000     03/19/08     (153,428 )  
United States Dollar     21,963,876     GBP 10,834,000     03/19/08     (482,912 )  
United States Dollar     187,620     HUF 32,757,000     03/19/08     (3 )  
United States Dollar     1,468,018     HUF 255,300,000     03/19/08     (5,775 )  
United States Dollar     424,363     HUF 72,600,000     03/19/08     (8,543 )  
United States Dollar     4,757,833     HUF 837,815,000     03/19/08     40,792    
United States Dollar     3,638,641     IDR 34,203,223,000     02/15/08     54,104    
United States Dollar     4,560,943     IDR 42,991,000,000     02/15/08     80,573    
United States Dollar     1,387,343     ILS 5,360,000     03/19/08     95,670    
United States Dollar     393,646     ILS 1,425,000     03/19/08     625    
United States Dollar     4,824,051     INR 189,755,000     02/15/08     (9,857 )  
United States Dollar     3,820,658     ISK 241,030,000     03/19/08     (154,339 )  
United States Dollar     1,586,357     ISK 105,350,000     03/19/08     16,126    
United States Dollar     1,187,646     ISK 76,330,000     03/19/08     (26,587 )  
United States Dollar     261,199     JPY 27,932,619     02/21/08     1,857    
United States Dollar     13,324,243     JPY 1,437,755,000     03/19/08     240,001    

 


180


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Forward foreign currency contracts—(continued)

    Contracts to
deliver		   In
exchange for		   Maturity
dates		   Unrealized
appreciation
(depreciation)		  
United States Dollar     1,613,831     JPY 171,200,000     03/19/08   $ 1,325    
United States Dollar     94,435,886     JPY 10,177,223,726     03/19/08     1,579,317    
United States Dollar     2,937,199     JPY 320,200,000     03/19/08     83,671    
United States Dollar     27,350,513     JPY 2,963,655,000     03/19/08     609,562    
United States Dollar     10,125,668     KRW 9,264,000,000     03/05/08     (322,293 )  
United States Dollar     9,066,885     KRW 8,386,595,000     03/19/08     (194,119 )  
United States Dollar     7,512,568     MXN 82,583,000     03/19/08     75,823    
United States Dollar     2,216,722     MXN 24,090,000     03/19/08     (3,138 )  
United States Dollar     7,066,559     MYR 23,622,000     03/19/08     229,819    
United States Dollar     12,647,634     MYR 41,943,000     03/19/08     307,747    
United States Dollar     522,054     NOK 2,840,000     03/19/08     1,192    
United States Dollar     19,131,698     NOK 104,588,000     03/19/08     137,763    
United States Dollar     5,819,619     NOK 31,580,000     03/19/08     (1,269 )  
United States Dollar     13,809,805     NOK 75,800,000     03/19/08     155,709    
United States Dollar     50,297,548     NOK 273,000,000     03/19/08     410    
United States Dollar     8,011,088     NZD 10,361,000     03/19/08     102,606    
United States Dollar     9,263,000     NZD 12,244,000     03/19/08     325,272    
United States Dollar     39,270,995     NZD 51,220,000     03/19/08     839,364    
United States Dollar     1,484,787     PLN 3,660,000     03/19/08     21,761    
United States Dollar     7,050,591     PLN 17,532,000     03/19/08     166,020    
United States Dollar     3,845,792     RON 9,600,000     03/19/08     (42,048 )  
United States Dollar     4,740,620     RUB 116,240,000     03/19/08     5,620    
United States Dollar     3,716,626     RUB 90,760,000     03/19/08     (10,769 )  
United States Dollar     5,597,009     RUB 136,595,000     03/19/08     (19,646 )  
United States Dollar     637,850     SEK 4,120,000     03/19/08     8,664    
United States Dollar     24,527,011     SEK 155,886,000     03/19/08     (65,251 )  
United States Dollar     9,525,447     SEK 60,654,504     03/19/08     (7,492 )  
United States Dollar     12,848,737     SEK 83,615,000     03/19/08     272,198    
United States Dollar     25,171,305     SEK 162,000,000     03/19/08     249,870    
United States Dollar     699,054     SEK 4,473,944     03/20/08     2,976    
United States Dollar     2,374,680     SGD 3,385,000     03/19/08     18,616    
United States Dollar     13,225,136     SGD 18,825,000     03/19/08     84,704    
United States Dollar     2,083,971     SGD 2,996,000     03/19/08     34,291    
United States Dollar     845,437     SKK 19,105,000     03/19/08     (524 )  
United States Dollar     1,933,082     SKK 43,620,000     03/19/08     (4,001 )  
United States Dollar     1,651,844     SKK 36,960,000     03/19/08     (17,299 )  
United States Dollar     4,039,293     TRY 4,913,000     03/19/08     87,929    
United States Dollar     1,041,581     TRY 1,265,000     03/19/08     21,097    
United States Dollar     2,388,998     TRY 2,935,000     03/19/08     76,582    

 


181


UBS PACE Select Advisors Trust

UBS PACE Alternative Strategies Investments

Portfolio of investments—January 31, 2008 (unaudited)

Forward foreign currency contracts—(concluded)

    Contracts to
deliver		   In
exchange for		   Maturity
dates		   Unrealized
appreciation
(depreciation)		  
United States Dollar     2,198,031     TWD 70,315,000     02/15/08   $ (7,758 )  
United States Dollar     9,339,359     TWD 299,880,000     02/15/08     1,734    
United States Dollar     1,595,933     ZAR 10,830,000     03/19/08     (164,036 )  
United States Dollar     9,573,092     ZAR 66,204,000     03/19/08     (819,877 )  
    $ (1,223,526 )  

 

Currency type abbreviations:

ARS  Argentine Peso

AUD  Australian Dollar

BRL  Brazilian Real

CAD  Canadian Dollar

CHF  Swiss Franc

CLP  Chilean Peso

CNY  Chinese Yuan

COP  Columbian Peso

CZK  Czech Koruna

EGP  Egyptian Pound

EUR  Euro

GBP  Great Britain Pound

HUF  Hungarian Forint

IDR  Indonesian Rupiah

ILS  Israeli Shekel

INR  Indian Rupee

ISK  Icelandic Krona

JPY  Japanese Yen

KRW  South Korean Won

MXN  Mexican Peso

MYR  Malaysian Ringgit

NOK  Norwegian Krone

NZD  New Zealand Dollar

PLN  Polish Zloty

RON  Romanian Leu

RUB  Russian Ruble

SEK  Swedish Krona

SGD  Singapore Dollar

SKK  Slovakian Koruna

TRY  Turkish Lira

TWD  Taiwan Dollar

USD  US Dollar

ZAR  South African Rand

See accompanying notes to financial statements.
182



UBS PACE Select Advisors Trust

Understanding your Portfolio's expenses (unaudited)

As a shareholder of a Portfolio, you incur two types of costs: (1) transactional costs (as applicable), including sales charges (loads), or ongoing program fees; and (2) ongoing Portfolio costs, including management fees; service and/or distribution (12b-1) fees (if applicable); and other Portfolio expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in each Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples below are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, August 1, 2007 to January 31, 2008.

Actual expenses

The first line for each class of shares in the table below for each Portfolio provides information about its actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over a period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for each class of shares for each respective Portfolio under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during the period.

Hypothetical example for comparison purposes

The second line for each class of shares in the table below for each Portfolio provides information about hypothetical account values and hypothetical expenses based on that Portfolio's actual expense ratios for each class of shares and an assumed rate of return of 5% per year before expenses, which is not that Portfolio's actual return for each class of shares. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing Portfolio costs only and do not reflect any transactional costs (as applicable), such as sales charges (loads), or program fees. Therefore, the second line in the table for each class of shares for each Portfolio is useful in comparing ongoing Portfolio costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs or program fees were included, your costs would have been higher.


183


UBS PACE Select Advisors Trust
 

  Beginning
account value
August 1, 2007		   Ending
account value
January 31, 2008		   Expenses paid
during period1
08/01/07 to 01/31/08		   Expense
ratio
during the period		  
UBS PACE Money Market Investments  
Class P   Actual   $ 1,000.00     $ 1,022.10     $ 3.05       0.60 %  

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,022.12		      
3.05		      
0.60		    
UBS PACE Government Securities Fixed Income Investments  
Class A   Actual     1,000.00       1,066.80       5.56       1.07    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,019.76		      
5.43		      
1.07		    
Class B   Actual     1,000.00       1,062.60       9.44       1.82    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,015.99		      
9.22		      
1.82		    
Class C   Actual     1,000.00       1,064.00       8.15       1.57    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,017.24		      
7.96		      
1.57		    
Class Y   Actual     1,000.00       1,068.50       3.95       0.76    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,021.32		      
3.86		      
0.76		    
Class P   Actual     1,000.00       1,068.20       4.26       0.82    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,021.01		      
4.17		      
0.82		    
UBS PACE Intermediate Fixed Income Investments  
Class A   Actual     1,000.00       1,068.50       4.84       0.93    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,020.46		      
4.72		      
0.93		    
Class B   Actual     1,000.00       1,064.40       8.72       1.68    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,016.69		      
8.52		      
1.68		    
Class C   Actual     1,000.00       1,066.60       7.43       1.43    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,017.95		      
7.25		      
1.43		    
Class Y   Actual     1,000.00       1,070.70       3.54       0.68    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,021.72		      
3.46		      
0.68		    
Class P   Actual     1,000.00       1,070.70       3.54       0.68    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,021.72		      
3.46		      
0.68		    

 


184


UBS PACE Select Advisors Trust
 

  Beginning
account value
August 1, 2007		   Ending
account value
January 31, 2008		   Expenses paid
during period1
08/01/07 to 01/31/08		   Expense
ratio
during the period		  
UBS PACE Strategic Fixed Income Investments  
Class A   Actual   $ 1,000.00     $ 1,100.70     $ 5.60       1.06 %  

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,019.81		      
5.38		      
1.06		    
Class B   Actual     1,000.00       1,095.60       9.53       1.81    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,016.04		      
9.17		      
1.81		    
Class C   Actual     1,000.00       1,097.10       8.22       1.56    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,017.29		      
7.91		      
1.56		    
Class Y   Actual     1,000.00       1,101.70       4.02       0.76    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,021.32		      
3.86		      
0.76		    
Class P   Actual     1,000.00       1,101.40       4.28       0.81    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,021.06		      
4.12		      
0.81		    
UBS PACE Municipal Fixed Income Investments  
Class A   Actual     1,000.00       1,043.50       4.78       0.93    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,020.46		      
4.72		      
0.93		    
Class B   Actual     1,000.00       1,039.50       8.61       1.68    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,016.69		      
8.52		      
1.68		    
Class C   Actual     1,000.00       1,040.90       7.34       1.43    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,017.95		      
7.25		      
1.43		    
Class Y   Actual     1,000.00       1,044.70       3.49       0.68    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,021.72		      
3.46		      
0.68		    
Class P   Actual     1,000.00       1,044.80       3.50       0.68    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,021.72		      
3.46		      
0.68		    
UBS PACE Global Fixed Income Investments  
Class A   Actual     1,000.00       1,113.00       6.64       1.25    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,018.85		      
6.34		      
1.25		    
Class B   Actual     1,000.00       1,109.50       10.61       2.00    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,015.08		      
10.13		      
2.00		    
Class C   Actual     1,000.00       1,110.20       9.28       1.75    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,016.34		      
8.87		      
1.75		    
Class Y   Actual     1,000.00       1,116.00       4.84       0.91    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,020.56		      
4.62		      
0.91		    
Class P   Actual     1,000.00       1,114.40       5.31       1.00    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,020.11		      
5.08		      
1.00		    

 


185


UBS PACE Select Advisors Trust
 

  Beginning
account value
August 1, 2007		   Ending
account value
January 31, 2008		   Expenses paid
during period1
08/01/07 to 01/31/08		   Expense
ratio
during the period		  
UBS PACE High Yield Investments  
Class A   Actual   $ 1,000.00     $ 1,019.60     $ 6.85       1.35 %  

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,018.35		      
6.85		      
1.35		    
Class P   Actual     1,000.00       1,019.70       5.58       1.10    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,019.61		      
5.58		      
1.10		    
UBS PACE Large Co Value Equity Investments  
Class A   Actual     1,000.00       953.80       5.30       1.08    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,019.71		      
5.48		      
1.08		    
Class B   Actual     1,000.00       948.40       9.89       2.02    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,014.98		      
10.23		      
2.02		    
Class C   Actual     1,000.00       949.70       9.16       1.87    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,015.74		      
9.48		      
1.87		    
Class Y   Actual     1,000.00       954.70       3.64       0.74    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,021.42		      
3.76		      
0.74		    
Class P   Actual     1,000.00       954.70       4.08       0.83    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,020.96		      
4.22		      
0.83		    
UBS PACE Large Co Growth Equity Investments  
Class A   Actual     1,000.00       979.50       5.92       1.19    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,019.15		      
6.04		      
1.19		    
Class B   Actual     1,000.00       974.80       10.18       2.05    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,014.83		      
10.38		      
2.05		    
Class C   Actual     1,000.00       974.90       10.18       2.05    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,014.83		      
10.38		      
2.05		    
Class Y   Actual     1,000.00       980.70       3.98       0.80    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,021.11		      
4.06		      
0.80		    
Class P   Actual     1,000.00       981.00       4.48       0.90    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,020.61		      
4.57		      
0.90		    

 


186


UBS PACE Select Advisors Trust
 

  Beginning
account value
August 1, 2007		   Ending
account value
January 31, 2008		   Expenses paid
during period1
08/01/07 to 01/31/08		   Expense
ratio
during the period		  
UBS PACE Small/Medium Co Value Equity Investments  
Class A   Actual   $ 1,000.00     $ 887.30     $ 6.07       1.28 %  

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,018.70		      
6.50		      
1.28		    
Class B   Actual     1,000.00       883.20       10.22       2.16    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,014.28		      
10.94		      
2.16		    
Class C   Actual     1,000.00       883.70       9.71       2.05    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,014.83		      
10.38		      
2.05		    
Class Y   Actual     1,000.00       888.80       4.42       0.93    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,020.46		      
4.72		      
0.93		    
Class P   Actual     1,000.00       887.70       5.50       1.16    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,019.30		      
5.89		      
1.16		    
UBS PACE Small/Medium Co Growth Equity Investments  
Class A   Actual     1,000.00       921.40       6.23       1.29    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,018.65		      
6.55		      
1.29		    
Class B   Actual     1,000.00       917.30       10.27       2.13    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,014.43		      
10.79		      
2.13		    
Class C   Actual     1,000.00       917.80       9.98       2.07    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,014.73		      
10.48		      
2.07		    
Class Y   Actual     1,000.00       923.40       4.40       0.91    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,020.56		      
4.62		      
0.91		    
Class P   Actual     1,000.00       922.30       5.46       1.13    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,019.46		      
5.74		      
1.13		    
UBS PACE International Equity Investments  
Class A   Actual     1,000.00       926.70       6.59       1.36    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,018.30		      
6.90		      
1.36		    
Class B   Actual     1,000.00       922.50       10.87       2.25    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,013.83		      
11.39		      
2.25		    
Class C   Actual     1,000.00       923.00       10.49       2.17    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,014.23		      
10.99		      
2.17		    
Class Y   Actual     1,000.00       928.80       4.90       1.01    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,020.06		      
5.13		      
1.01		    
Class P   Actual     1,000.00       927.90       5.33       1.10    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,019.61		      
5.58		      
1.10		    

 


187


UBS PACE Select Advisors Trust
 

  Beginning
account value
August 1, 2007		   Ending
account value
January 31, 2008		   Expenses paid
during period1
08/01/07 to 01/31/08		   Expense
ratio
during the period		  
UBS PACE International Emerging Markets Equity Investments  
Class A   Actual   $ 1,000.00     $ 998.50     $ 9.24       1.84 %  

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,015.89		      
9.32		      
1.84		    
Class B   Actual     1,000.00       994.10       13.28       2.65    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,011.81		      
13.40		      
2.65		    
Class C   Actual     1,000.00       994.80       12.99       2.59    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,012.12		      
13.10		      
2.59		    
Class Y   Actual     1,000.00       1,000.50       7.44       1.48    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,017.70		      
7.51		      
1.48		    
Class P   Actual     1,000.00       998.60       8.84       1.76    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,016.29		      
8.92		      
1.76		    
UBS PACE Global Real Estate Securities Investments  
Class A   Actual     1,000.00       941.90       7.08       1.45    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,017.85		      
7.35		      
1.45		    
Class C   Actual     1,000.00       938.60       10.72       2.20    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,014.08		      
11.14		      
2.20		    
Class P   Actual     1,000.00       943.40       5.86       1.20    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,019.10		      
6.09		      
1.20		    
UBS PACE Alternative Strategies Investments  
Class A   Actual     1,000.00       970.50       11.39       2.30    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,013.57		      
11.64		      
2.30		    
Class B   Actual     1,000.00       966.80       15.03       3.04    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,009.85		      
15.36		      
3.04		    
Class C   Actual     1,000.00       967.90       15.09       3.05    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,009.80		      
15.41		      
3.05		    
Class P   Actual     1,000.00       971.50       10.11       2.04    

  Hypothetical
(5% annual return before expenses)		    
1,000.00		      
1,014.88		      
10.33		      
2.04		    

 

1  Expenses are equal to the Portfolios' annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period).


188



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189


UBS PACE Select Advisors Trust

Statement of assets and liabilities

January 31, 2008 (unaudited)

    UBS PACE
Money Market
Investments		   UBS PACE
Government
Securities
Fixed Income
Investments		   UBS PACE
Intermediate
Fixed Income
Investments		   UBS PACE
Strategic
Fixed Income
Investments		  
Assets:  
Investments in unaffiliated securities, at value (cost – $405,308,049;
$929,388,458; $535,800,236; $817,617,984; $333,042,729;
$570,965,191; $121,902,415, respectively)1 		   $ 405,308,049     $ 942,998,278     $ 544,978,065     $ 825,760,243    
Investment in an affiliated security, at value (cost – $0; $0;
$19,704,426; $18,181,033; $0; $0; $6,293,201, respectively)		     —       —       19,704,426       18,181,033    
Repurchase agreements, at value (cost – $128,040,000; $12,407,000;
$9,579,000; $14,000; $0; $14,670,000; $7,501,000, respectively)		     128,040,000       12,407,000       9,579,000       14,000    
Total investments in securities, at value (cost – $533,348,049;
$941,795,458; $565,083,662; $835,813,017; $333,042,729;
$585,635,191; $135,696,616, respectively)		   $ 533,348,049     $ 955,405,278     $ 574,261,491     $ 843,955,276    
Cash     749       —       —       8,660,500 2   
Foreign currency, at value (cost – $0; $0; $28,318; $2,854,237; $0; $0;
$23,676, respectively)		     —       —       29,388       2,876,803    
Receivable for investments sold     —       181,918,523       90,159,292       151,267,288    
Receivable for shares of beneficial interest sold     2,200,590       707,304       998,723       1,143,667    
Receivable for interest     1,684,972       3,213,434       4,188,464       6,407,572    
Swap contracts, at value4      —       —       —       12,548,230    
Due from broker     —       —       —       368,719    
Unrealized appreciation on forward foreign currency contracts     —       —       3,720       137,883    
Receivable for variation margin     —       109,200       223,123       1,546,470    
Receivable for foreign tax reclaims     —       —       10,237       93,317    
Other assets     29,799       48,435       41,156       53,861    
Total assets     537,264,159       1,141,402,174       669,915,594       1,029,059,586    
Liabilities:  
Payable for investments purchased     9,973,908       370,538,019       102,908,319       54,998,703    
Payable for shares of beneficial interest repurchased     2,759,378       557,725       333,478       625,648    
Dividends payable to shareholders     816,901       —       —       —    
Payable to affiliates     34,892       333,484       191,550       434,794    
Payable to custodian     11,951       321,231       9,524,988       54,719    
Investments sold short, at value (proceeds – $0; $74,866,250;
$34,144,000; $103,788,078; $0; $0; $0, respectively)		     —       74,838,433       34,178,202       104,149,125    
Swap contracts, at value4      —       4,355,287       —       7,098,833    
Due to broker     —       18,333       55,978       183,723    
Payable for cash collateral from securities loaned     —       —       37,876,229       22,181,039    
Unrealized depreciation of forward foreign currency contracts     —       —       8,501       509,838    
Payable for foreign withholding taxes     —       —       4,166       —    
Payable for options written, at value (premiums received – $0; $0; $0;
$3,088,411; $0; $0; $0, respectively)		     —       —       —       3,867,224    
Accrued expenses and other liabilities     516,319       295,067       176,410       250,673    
Total liabilities     14,113,349       451,257,579       185,257,821       194,354,319    

 

1 Includes $0; $0; $36,792,148; $21,502,662; $0; $0; $5,959,280, respectively, of investments in securities on loan, at value.

2 Includes restricted cash of $8,660,000 delivered to broker as initial margin for futures contracts for UBS PACE Strategic Fixed Income Investments.

3 Includes restricted cash of $9,384,150 delivered to broker as initial margin for futures contracts for UBS PACE Global Fixed Income Investments.

4 Includes net upfront payments received by UBS PACE Government Securities Fixed Income Investments of $1,363,525 and net upfront payments made by UBS PACE Strategic Fixed Income Investments of $1,862,364.

See accompanying notes to financial statements
190


    UBS PACE
Municipal
Fixed Income
Investments		   UBS PACE
Global
Fixed Income
Investments		   UBS PACE
High Yield
Investments		  
Assets:  
Investments in unaffiliated securities, at value (cost – $405,308,049;
$929,388,458; $535,800,236; $817,617,984; $333,042,729;
$570,965,191; $121,902,415, respectively)1 		   $ 340,996,481     $ 630,391,986     $ 116,864,502    
Investment in an affiliated security, at value (cost – $0; $0;
$19,704,426; $18,181,033; $0; $0; $6,293,201, respectively)		     —       —       6,293,201    
Repurchase agreements, at value (cost – $128,040,000; $12,407,000;
$9,579,000; $14,000; $0; $14,670,000; $7,501,000, respectively)		     —       14,670,000       7,501,000    
Total investments in securities, at value (cost – $533,348,049;
$941,795,458; $565,083,662; $835,813,017; $333,042,729;
$585,635,191; $135,696,616, respectively)		   $ 340,996,481     $ 645,061,986     $ 130,658,703    
Cash     —       9,384,775 3      41    
Foreign currency, at value (cost – $0; $0; $28,318; $2,854,237; $0; $0;
$23,676, respectively)		     —       —       23,803    
Receivable for investments sold     1,007,550       —       128,724    
Receivable for shares of beneficial interest sold     1,089,350       717,567       404,948    
Receivable for interest     4,076,203       10,128,810       2,242,159    
Swap contracts, at value4      —       —       —    
Due from broker     —       —       —    
Unrealized appreciation on forward foreign currency contracts     —       7,343,288       —    
Receivable for variation margin     —       —       —    
Receivable for foreign tax reclaims     —       4,814       —    
Other assets     38,106       58,078       15,160    
Total assets     347,207,690       672,699,318       133,473,538    
Liabilities:  
Payable for investments purchased     1,681,365       —       5,271,484    
Payable for shares of beneficial interest repurchased     345,780       592,616       66,618    
Dividends payable to shareholders     —       —       —    
Payable to affiliates     176,767       400,930       73,000    
Payable to custodian     22,508       374,906       11,645    
Investments sold short, at value (proceeds – $0; $74,866,250;
$34,144,000; $103,788,078; $0; $0; $0, respectively)		     —       —       —    
Swap contracts, at value4      —       —       —    
Due to broker     —       —       —    
Payable for cash collateral from securities loaned     —       —       6,305,356    
Unrealized depreciation of forward foreign currency contracts     —       4,804,374       29,535    
Payable for foreign withholding taxes     —       6,344       —    
Payable for options written, at value (premiums received – $0; $0; $0;
$3,088,411; $0; $0; $0, respectively)		     —       —       —    
Accrued expenses and other liabilities     82,545       266,572       50,048    
Total liabilities     2,308,965       6,445,742       11,807,686    

 


191


UBS PACE Select Advisors Trust

Statement of assets and liabilities (continued)

January 31, 2008 (unaudited)

    UBS PACE
Money Market
Investments		   UBS PACE
Government
Securities
Fixed Income
Investments		   UBS PACE
Intermediate
Fixed Income
Investments		   UBS PACE
Strategic
Fixed Income
Investments		  
Net assets:  
Beneficial interest shares of $0.001 par value (unlimited
amount authorized)		   $ 523,108,823     $ 679,072,502     $ 492,171,509     $ 797,046,506    
Accumulated undistributed (distributions in excess of) net
investment income		     —       308,980       (336,174 )     (1,659,000 )  
Accumulated net realized gains (losses) from investments, futures,
options written, short sales, swaps, forward foreign currency contracts
and foreign currency transactions		     41,987       (4,328,075 )     (18,419,966 )     21,317,700    
Net unrealized appreciation (depreciation) of investments, other assets
and liabilities denominated in foreign currency, futures, options written,
short sales, swaps and forward foreign currency contracts		     —       15,091,188       11,242,404       18,000,061    
Net assets   $ 523,150,810     $ 690,144,595     $ 484,657,773     $ 834,705,267    
Class A:  
Net assets   $ —     $ 97,679,501     $ 52,488,662     $ 24,050,036    
Shares outstanding     —       7,354,777       4,405,032       1,684,492    
Net asset value per share   $ —     $ 13.28     $ 11.92     $ 14.28    
Maximum offering price per share   $ —     $ 13.91     $ 12.48     $ 14.95    
Class B:  
Net assets   $ —     $ 1,073,144     $ 282,583     $ 233,185    
Shares outstanding     —       80,742       23,671       16,334    
Net asset value and offering price per share   $ —     $ 13.29     $ 11.94     $ 14.28    
Class C:  
Net assets   $ —     $ 26,533,210     $ 4,252,315     $ 5,732,003    
Shares outstanding     —       1,996,417       356,465       401,360    
Net asset value and offering price per share   $ —     $ 13.29     $ 11.93     $ 14.28    
Class Y:  
Net assets   $ —     $ 17,621,933     $ 1,327,735     $ 2,244,334    
Shares outstanding     —       1,326,296       111,369       157,276    
Net asset value, offering price and redemption value per share1    $ —     $ 13.29     $ 11.92     $ 14.27    
Class P:  
Net assets   $ 523,150,810     $ 547,236,807     $ 426,306,478     $ 802,445,709    
Shares outstanding     523,108,984       41,193,414       35,764,585       56,230,074    
Net asset value, offering price and redemption value per share1    $ 1.00     $ 13.28     $ 11.92     $ 14.27    

 

1 Assumes shares were held a sufficient period or are otherwise not subject to a redemption fee.

See accompanying notes to financial statements
192


    UBS PACE
Municipal
Fixed Income
Investments		   UBS PACE
Global
Fixed Income
Investments		   UBS PACE
High Yield
Investments		  
Net assets:  
Beneficial interest shares of $0.001 par value (unlimited
amount authorized)		   $ 340,676,069     $ 634,793,946     $ 127,718,730    
Accumulated undistributed (distributions in excess of) net
investment income		     (1,803 )     (34,383,396 )     (103,988 )  
Accumulated net realized gains (losses) from investments, futures,
options written, short sales, swaps, forward foreign currency contracts
and foreign currency transactions		     (3,729,293 )     4,433,059       (883,928 )  
Net unrealized appreciation (depreciation) of investments, other assets
and liabilities denominated in foreign currency, futures, options written,
short sales, swaps and forward foreign currency contracts		     7,953,752       61,409,967       (5,064,962 )  
Net assets   $ 344,898,725     $ 666,253,576     $ 121,665,852    
Class A:  
Net assets   $ 94,243,435     $ 117,719,915     $ 1,011,793    
Shares outstanding     7,513,967       9,930,624       106,923    
Net asset value per share   $ 12.54     $ 11.85     $ 9.46    
Maximum offering price per share   $ 13.13     $ 12.41     $ 9.91    
Class B:  
Net assets   $ 160,089     $ 717,453     $ —    
Shares outstanding     12,753       60,382       —    
Net asset value and offering price per share   $ 12.55     $ 11.88     $ —    
Class C:  
Net assets   $ 14,782,236     $ 6,984,316     $ —    
Shares outstanding     1,178,442       589,149       —    
Net asset value and offering price per share   $ 12.54     $ 11.85     $ —    
Class Y:  
Net assets   $ 140,116     $ 8,374,629     $ —    
Shares outstanding     11,164       707,579       —    
Net asset value, offering price and redemption value per share1    $ 12.55     $ 11.84     $ —    
Class P:  
Net assets   $ 235,572,849     $ 532,457,263     $ 120,654,059    
Shares outstanding     18,785,292       44,924,168       12,742,174    
Net asset value, offering price and redemption value per share1    $ 12.54     $ 11.85     $ 9.47    

 


193


UBS PACE Select Advisors Trust

Statement of assets and liabilities (continued)

January 31, 2008 (unaudited)

    UBS PACE
Large Co
Value Equity
Investments		   UBS PACE
Large Co
Growth Equity
Investments		   UBS PACE
Small/Medium Co
Value Equity
Investments		   UBS PACE
Small/Medium Co
Growth Equity
Investments		  
Assets:  
Investments in unaffiliated securities, at value (cost – $1,669,370,473;
$1,425,302,050; $554,656,593; $527,717,208; $1,235,683,469;
$362,372,163; $79,644,163; $515,334,970, respectively)1 		   $ 1,698,663,237     $ 1,437,666,000     $ 530,137,050     $ 528,335,056    
Investment in an affiliated security, at value (cost – $37,469,297;
$59,868,056; $95,874,872; $81,173,868; $31,184,519; $49,401,041;
$2,269,476; $0, respectively)		     37,469,297       59,868,056       95,874,872       81,173,868    
Repurchase agreements, at value (cost – $21,917,000; $34,840,000;
$18,665,000; $23,114,000; $31,168,000; $6,396,000; $1,823,000;
$133,369,000, respectively)		     21,917,000       34,840,000       18,665,000       23,114,000    
Total investments in securities, at value (cost – $1,728,756,770;
$1,520,010,106; $669,196,465; $632,005,076; $1,298,035,988;
$418,169,204; $83,736,639; $648,703,970, respectively)		   $ 1,758,049,534     $ 1,532,374,056     $ 644,676,922     $ 632,622,924    
Cash     830       1,960       1,577       990    
Foreign currency, at value (cost – $0; $0; $0; $0; $1,128,654;
$2,043,569; $118,791; $2,148,661, respectively)		     —       —       —       —    
Receivable for investments sold     18,798,322       6,520,863       3,289,299       5,512,136    
Receivable for shares of beneficial interest sold     1,579,322       1,632,153       519,668       521,017    
Receivable for dividends and interest     2,170,323       1,046,093       205,418       157,129    
Swap contracts, at value3      —       —       —       —    
Due from broker     —       —       —       —    
Unrealized appreciation on forward foreign currency contracts     —       —       —       —    
Receivable for variation margin     —       —       —       —    
Receivable for foreign tax reclaims     —       26,120       —       —    
Other assets     85,652       77,631       42,824       48,112    
Total assets     1,780,683,983       1,541,678,876       648,735,708       638,862,308    
Liabilities:  
Payable for cash collateral from securities loaned     116,162,330       126,624,724       136,150,806       91,415,455    
Payable for investments purchased     15,361,356       16,044,579       1,400,833       9,866,265    
Payable for shares of beneficial interest repurchased     1,407,173       1,158,887       501,458       545,194    
Payable to affiliates     1,019,842       924,560       334,189       378,924    
Payable for foreign withholding taxes     —       27,771       574       —    
Payable to custodian     114,766       100,054       34,843       39,109    
Unrealized depreciation on forward foreign currency contracts     —       —       —       —    
Investments sold short, at value (proceeds – $0; $0; $0; $0; $0; $0;
$0; $62,154,150, respectively)		     —       —       —       —    
Swap contracts, at value3      —       —       —       —    
Payable for variation margin     —       —       —       —    
Payable for options written, at value (premiums received – $0; $0; $0;
$0; $0; $0; $0; $480,737, respectively)		     —       —       —       —    
Payable for dividend and interest expense on investments sold short     —       —       —       —    
Due to broker     —       —       —       —    
Accrued expenses and other liabilities     447,415       314,413       350,896       306,408    
Total liabilities     134,512,882       145,194,988       138,773,599       102,551,355    

 

1 Includes $140,060,968; $130,404,249; $141,912,805; $90,927,667; $68,970,051; $61,886,413; $4,209,584; $0, respectively of investments in securities on loan, at value.

2 Represents restricted cash of $69,972,906 delivered to broker as initial margin for investments sold short and futures contracts for UBS PACE Alternative Strategies Investments.

3 Includes net upfront payments received by UBS PACE Alternative Strategies Investments of $4,345,279.

See accompanying notes to financial statements
194


    UBS PACE
International
Equity
Investments		   UBS PACE
International
Emerging
Markets Equity
Investments		   UBS PACE
Global Real
Estate
Securities
Investments		   UBS PACE
Alternative
Strategies
Investments		  
Assets:  
Investments in unaffiliated securities, at value (cost – $1,669,370,473;
$1,425,302,050; $554,656,593; $527,717,208; $1,235,683,469;
$362,372,163; $79,644,163; $515,334,970, respectively)1 		   $ 1,351,085,531     $ 444,435,533     $ 72,053,316     $ 499,375,868    
Investment in an affiliated security, at value (cost – $37,469,297;
$59,868,056; $95,874,872; $81,173,868; $31,184,519; $49,401,041;
$2,269,476; $0, respectively)		     31,184,519       49,401,041       2,269,476       —    
Repurchase agreements, at value (cost – $21,917,000; $34,840,000;
$18,665,000; $23,114,000; $31,168,000; $6,396,000; $1,823,000;
$133,369,000, respectively)		     31,168,000       6,396,000       1,823,000       133,369,000    
Total investments in securities, at value (cost – $1,728,756,770;
$1,520,010,106; $669,196,465; $632,005,076; $1,298,035,988;
$418,169,204; $83,736,639; $648,703,970, respectively)		   $ 1,413,438,050     $ 500,232,574     $ 76,145,792     $ 632,744,868    
Cash     1,008       44,899       90       69,972,906 2    
Foreign currency, at value (cost – $0; $0; $0; $0; $1,128,654;
$2,043,569; $118,791; $2,148,661, respectively)		     1,135,280       2,048,408       119,513       2,153,928    
Receivable for investments sold     15,146,929       5,050,196       1,145,726       409,697,860    
Receivable for shares of beneficial interest sold     1,337,888       282,806       302,375       2,641,932    
Receivable for dividends and interest     3,153,371       1,467,789       250,238       807,560    
Swap contracts, at value3      —       —       —       18,141,888    
Due from broker     —       —       —       141,294    
Unrealized appreciation on forward foreign currency contracts     344,709       —       —       16,203,225    
Receivable for variation margin     81,131       —       —       —    
Receivable for foreign tax reclaims     80,287       6,252       1,358       105,211    
Other assets     75,184       39,182       24,472       43,925    
Total assets     1,434,793,837       509,172,106       77,989,564       1,152,654,597    
Liabilities:  
Payable for cash collateral from securities loaned     78,903,973       64,730,684       4,279,700       —    
Payable for investments purchased     27,299,030       2,385,936       1,327,139       441,424,653    
Payable for shares of beneficial interest repurchased     849,360       532,236       106,806       446,035    
Payable to affiliates     1,072,126       460,213       41,409       774,599    
Payable for foreign withholding taxes     347,647       779,709       44,074       10,360    
Payable to custodian     238,769       242,516       6,795       120,735    
Unrealized depreciation on forward foreign currency contracts     162,507       —       —       17,426,751    
Investments sold short, at value (proceeds – $0; $0; $0; $0; $0; $0;
$0; $62,154,150, respectively)		     —       —       —       56,049,538    
Swap contracts, at value3      —       —       —       16,482,488    
Payable for variation margin     —       —       —       946,108    
Payable for options written, at value (premiums received – $0; $0; $0;
$0; $0; $0; $0; $480,737, respectively)		     —       —       —       842,171    
Payable for dividend and interest expense on investments sold short     —       —       —       109,462    
Due to broker     —       —       —       1,156    
Accrued expenses and other liabilities     335,531       350,584       74,921       91,253    
Total liabilities     109,208,943       69,481,878       5,880,844       534,725,309    

 


195


UBS PACE Select Advisors Trust

Statement of assets and liabilities (concluded)

January 31, 2008 (unaudited)

    UBS PACE
Large Co
Value Equity
Investments		   UBS PACE
Large Co
Growth Equity
Investments		   UBS PACE
Small/Medium Co
Value Equity
Investments		   UBS PACE
Small/Medium Co
Growth Equity
Investments		  
Net assets:  
Beneficial interest shares of $0.001 par value (unlimited
amount authorized)		   $ 1,617,329,649     $ 1,346,445,594     $ 538,875,655     $ 548,009,772    
Accumulated undistributed (distributions in excess of)
net investment income		     8,488,327       565,676       1,303,768       (1,641,354 )  
Accumulated net realized gain (loss) from investments, futures,
options written, short sales, swaps and forward foreign currency
contracts and foreign currency transactions		     (8,939,639 )     37,108,668       (5,697,771 )     (10,675,313 )  
Net unrealized appreciation (depreciation) of investments, other
assets and liabilities denominated in foreign currency, futures,
options written, short sales and forward foreign currency contracts		     29,292,764       12,363,950       (24,519,543 )     617,848    
Net assets   $ 1,646,171,101     $ 1,396,483,888     $ 509,962,109     $ 536,310,953    
Class A:  
Net assets   $ 260,305,498     $ 78,995,010     $ 40,481,204     $ 43,670,705    
Shares outstanding     13,828,386       4,550,911       2,677,615       3,214,958    
Net asset value per share   $ 18.82     $ 17.36     $ 15.12     $ 13.58    
Maximum offering price per share   $ 19.92     $ 18.37     $ 16.00     $ 14.37    
Class B:  
Net assets   $ 1,317,937     $ 432,276     $ 637,580     $ 209,352    
Shares outstanding     69,921       26,459       45,674       16,716    
Net asset value and offering price per share   $ 18.85     $ 16.34     $ 13.96     $ 12.52    
Class C:  
Net assets   $ 30,160,258     $ 6,677,308     $ 9,685,239     $ 5,728,809    
Shares outstanding     1,604,025       407,709       690,998       454,347    
Net asset value and offering price per share   $ 18.80     $ 16.38     $ 14.02     $ 12.61    
Class Y:  
Net assets   $ 40,009,992     $ 24,781,395     $ 4,466,160     $ 6,027,200    
Shares outstanding     2,119,005       1,399,980       288,430       430,941    
Net asset value, offering price and redemption value per share1    $ 18.88     $ 17.70     $ 15.48     $ 13.99    
Class P:  
Net assets   $ 1,314,377,416     $ 1,285,597,899     $ 454,691,926     $ 480,674,887    
Shares outstanding     69,840,523       72,979,814       29,570,463       34,628,144    
Net asset value, offering price and redemption value per share1    $ 18.82     $ 17.62     $ 15.38     $ 13.88    

 

1 Assumes shares were held a sufficient period or are otherwise not subject to a redemption fee.

See accompanying notes to financial statements
196


    UBS PACE
International
Equity
Investments		   UBS PACE
International
Emerging
Markets Equity
Investments		   UBS PACE
Global Real
 Estate
 Securities
Investments		   UBS PACE
Alternative
Strategies
Investments		  
Net assets:  
Beneficial interest shares of $0.001 par value (unlimited
amount authorized)		   $ 1,212,110,580     $ 329,496,633     $ 83,233,976     $ 619,686,409    
Accumulated undistributed (distributions in excess of)
net investment income		     (2,954,012 )     (493,646 )     (984,992 )     1,949,368    
Accumulated net realized gain (loss) from investments, futures,
options written, short sales, swaps and forward foreign currency
contracts and foreign currency transactions		     849,726       29,257,122       (2,553,932 )     1,824,513    
Net unrealized appreciation (depreciation) of investments, other
assets and liabilities denominated in foreign currency, futures,
options written, short sales and forward foreign currency contracts		     115,578,600       81,430,119       (7,586,332 )     (5,531,002 )  
Net assets   $ 1,325,584,894     $ 439,690,228     $ 72,108,720     $ 617,929,288    
Class A:  
Net assets   $ 118,284,144     $ 31,139,108     $ 7,589,772     $ 108,253,047    
Shares outstanding     6,808,568       1,561,244       873,528       10,098,275    
Net asset value per share   $ 17.37     $ 19.95     $ 8.69     $ 10.72    
Maximum offering price per share   $ 18.38     $ 21.11     $ 9.20     $ 11.34    
Class B:  
Net assets   $ 397,822     $ 446,862     $ —     $ 25,372    
Shares outstanding     23,334       23,460       —       2,382    
Net asset value and offering price per share   $ 17.05     $ 19.05     $ —     $ 10.65    
Class C:  
Net assets   $ 7,851,974     $ 7,401,420     $ 278,917     $ 8,061,294    
Shares outstanding     461,005       389,285       32,153       758,191    
Net asset value and offering price per share   $ 17.03     $ 19.01     $ 8.67     $ 10.63    
Class Y:  
Net assets   $ 57,195,831     $ 30,984,786     $ —     $ —    
Shares outstanding     3,293,109       1,529,882       —       —    
Net asset value, offering price and redemption value per share1    $ 17.37     $ 20.25     $ —     $ —    
Class P:  
Net assets   $ 1,141,855,123     $ 369,718,052     $ 64,240,031     $ 501,589,575    
Shares outstanding     65,856,160       18,333,598       7,379,807       46,651,353    
Net asset value, offering price and redemption value per share1    $ 17.34     $ 20.17     $ 8.70     $ 10.75    

 


197


UBS PACE Select Advisors Trust

Statement of operations

For the six months ended January 31, 2008 (unaudited)

    UBS PACE
Money Market
Investments		   UBS PACE
Government
Securities
Fixed Income
Investments		   UBS PACE
Intermediate
Fixed Income
Investments		   UBS PACE
Strategic
Fixed Income
Investments		  
Investment income:  
Interest (net of foreign withholding taxes of $0; $0; $2,209; $0; $0; $77;
$0, respectively)		   $ 11,583,997     $ 17,753,793     $ 11,682,869     $ 21,011,733    
Securities lending income (includes $0; $0; $14,569; $8,018; $0; $12,055;
$10,364, respectively, earned from an affiliated entity)		     —       —       48,588       15,465    
      11,583,997       17,753,793       11,731,457       21,027,198    
Expenses:  
Investment management and administration fees     823,701       2,159,657       1,328,176       2,531,873    
Service fees–Class A     —       123,093       64,816       27,925    
Service and distribution fees–Class B     —       6,874       1,504       1,714    
Service and distribution fees–Class C     —       100,495       14,711       20,960    
Transfer agency and related services fees     991,802       445,691       223,828       499,490    
Reports and notices to shareholders     160,406       53,053       30,487       50,876    
Professional fees     33,836       64,790       57,967       57,570    
Custody and accounting fees     32,948       130,127       92,024       154,193    
Federal and state registration fees     21,162       33,826       33,395       36,664    
Trustees' fees     8,931       10,569       9,709       10,229    
Insurance expense     5,994       9,108       6,691       9,885    
Other expenses     5,319       13,321       12,538       13,089    
      2,084,099       3,150,604       1,875,846       3,414,468    
Less: Fee waivers and/or expense reimbursements by investment
manager and administrator		     (672,039 )     (257,210 )     (230,401 )     (241,891 )  
Net expenses     1,412,060       2,893,394       1,645,445       3,172,577    
Net investment income     10,171,937       14,860,399       10,086,012       17,854,621    
Net realized and unrealized gains (losses) from investment activities:  
Net realized gains (losses) from:
Investments		     42,586       8,347,773       4,596,635       6,648,169    
Futures     —       24,897       2,651,349       15,478,544    
Options written     —       —       —       (3,663,297 )  
Short sales     —       (992,255 )     (138,320 )     (460,754 )  
Swaps     —       (4,271,289 )     —       14,673,583    
Forward foreign currency contracts and foreign currency transactions     —       —       716,293       (1,336,844 )  
Net change in unrealized appreciation/depreciation of:
Investments		     —       22,563,161       11,589,444       18,986,974    
Futures     —       4,072,502       1,677,917       7,067,639    
Options written     —       —       —       (1,162,782 )  
Short sales     —       542,653       (34,202 )     (165,602 )  
Swaps     —       (2,515,844 )     —       1,162,868    
Other assets and liabilities denominated in foreign currency and
forward foreign currency contracts		     —       —       (123,327 )     158,734    
Net realized and unrealized gains (losses) from investment activities     42,586       27,771,598       20,935,789       57,387,232    
Net increase in net assets resulting from operations   $ 10,214,523     $ 42,631,997     $ 31,021,801     $ 75,241,853    

 

See accompanying notes to financial statements
198


    UBS PACE
Municipal
Fixed Income
Investments		   UBS PACE
Global
Fixed Income
Investments		   UBS PACE
High Yield
Investments		  
Investment income:  
Interest (net of foreign withholding taxes of $0; $0; $2,209; $0; $0; $77;
$0, respectively)		   $ 6,813,887     $ 9,287,854     $ 4,074,341    
Securities lending income (includes $0; $0; $14,569; $8,018; $0; $12,055;
$10,364, respectively, earned from an affiliated entity)		     —       34,345       20,781    
      6,813,887       9,322,199       4,095,122    
Expenses:  
Investment management and administration fees     940,758       2,454,912       420,291    
Service fees–Class A     112,054       144,206       1,041    
Service and distribution fees–Class B     1,071       3,188       —    
Service and distribution fees–Class C     55,575       25,153       —    
Transfer agency and related services fees     100,828       572,464       92,085    
Reports and notices to shareholders     20,376       68,958       8,970    
Professional fees     47,064       57,068       45,430    
Custody and accounting fees     63,848       308,654       31,522    
Federal and state registration fees     31,487       32,801       27,528    
Trustees' fees     8,328       9,618       7,145    
Insurance expense     4,262       8,173       592    
Other expenses     10,854       12,245       8,140    
      1,396,505       3,697,440       642,744    
Less: Fee waivers and/or expense reimbursements by investment
manager and administrator		     (142,380 )     (441,705 )     (63,803 )  
Net expenses     1,254,125       3,255,735       578,941    
Net investment income     5,559,762       6,066,464       3,516,181    
Net realized and unrealized gains (losses) from investment activities:  
Net realized gains (losses) from:
Investments		     (219,835 )     (1,999,450 )     (586,384 )  
Futures     —       1,653,062       —    
Options written     —       —       —    
Short sales     —       —       —    
Swaps     —       —       —    
Forward foreign currency contracts and foreign currency transactions     —       11,467,173       (280,857 )  
Net change in unrealized appreciation/depreciation of:
Investments		     8,712,073       48,111,350       (1,019,613 )  
Futures     —       (1,074,409 )     —    
Options written     —       —       —    
Short sales     —       —       —    
Swaps     —       —       —    
Other assets and liabilities denominated in foreign currency and
forward foreign currency contracts		     —       2,556,872       (50,236 )  
Net realized and unrealized gains (losses) from investment activities     8,492,238       60,714,598       (1,937,090 )  
Net increase in net assets resulting from operations   $ 14,052,000     $ 66,781,062     $ 1,579,091    

 


199


UBS PACE Select Advisors Trust

Statement of operations (concluded)

For the six months ended January 31, 2008 (unaudited)

    UBS PACE
Large Co
Value Equity
Investments		   UBS PACE
Large Co
Growth Equity
Investments		   UBS PACE
Small/Medium Co
Value Equity
Investments		   UBS PACE
Small/Medium Co
Growth Equity
Investments		  
Investment income:  
Interest (net of foreign withholding taxes of $0; $0; $0; $0; $0; $26; $0; $0,
respectively)		   $ 583,610     $ 683,401     $ 382,860     $ 484,660    
Dividends (net of foreign witholding taxes of $33,033; $36,650; $6,841;
$1,083; $904,540; $546,040; $69,929; $96,833, respectively)		     17,849,752       8,509,719       3,914,290       768,839    
Securities lending income (includes $120,506; $186,383; $299,584; $442,274;
$95,855; $148,158; $12,536; $0, respectively, earned from an affiliated entity)		     255,270       299,404       381,984       514,763    
      18,688,632       9,492,524       4,679,134       1,768,262    
Expenses:  
Investment management and administration fees     6,913,353       5,681,099       2,177,084       2,367,110    
Service fees–Class A     359,902       105,395       56,835       62,229    
Service and distribution fees–Class B     8,059       2,621       4,356       1,361    
Service and distribution fees–Class C     171,645       38,056       56,184       33,528    
Transfer agency and related service fees     813,786       718,283       667,212       667,157    
Custody and accounting fees     345,668       292,917       108,854       118,355    
Reports and notices to shareholders     102,116       75,779       57,255       69,155    
Professional fees     62,211       62,105       54,464       57,082    
Federal and state registration fees     43,012       38,593       31,624       36,362    
Insurance expense     25,412       19,390       8,114       7,860    
Trustees' fees     16,413       14,522       10,272       10,254    
Interest expense     —       —       —       —    
Dividend and interest expense for securities sold short     —       —       —       —    
Offering expenses     —       —       —       —    
Other expenses     21,059       18,343       16,259       16,315    
      8,882,636       7,067,103       3,248,513       3,446,768    
Less: Fee waivers and/or expense reimbursements by investment manager
and administrator		     (1,180,464 )     (330,079 )     (16,763 )     (37,152 )  
Net expenses     7,702,172       6,737,024       3,231,750       3,409,616    
Net investment income (loss)     10,986,460       2,755,500       1,447,384       (1,641,354 )  
Net realized and unrealized gains (losses) from investment activities:  
Net realized gains (losses) from:
Investments (net of foreign tax expense of $0; $0; $0; $0; $0;
$58,000; $0; $0, respectively)		     25,155,711       62,259,054       9,937,781       4,184,908    
Commissions recaptured     122,317       10,059       75,610       168,037    
Futures     —       —       —       —    
Options written     —       —       —       —    
Short sales     —       —       —       —    
Swaps     —       —       —       —    
Forward foreign currency contracts and foreign currency transactions     —       858       —       —    
Net change in unrealized appreciation/depreciation of:
Investments		     (116,906,191 )     (97,715,130 )     (75,560,433 )     (49,076,233 )  
Futures     —       —       —       —    
Options written     —       —       —       —    
Short sales     —       —       —       —    
Swaps     —       —       —       —    
Other assets and liabilities denominated in foreign currency and
forward foreign currency contracts		     —       —       —       —    
Net realized and unrealized losses from investment activities     (91,628,163 )     (35,445,159 )     (65,547,042 )     (44,723,288 )  
Net decrease in net assets resulting from operations   $ (80,641,703 )   $ (32,689,659 )   $ (64,099,658 )   $ (46,364,642 )  

 

See accompanying notes to financial statements
200


    UBS PACE
International
Equity
Investments		   UBS PACE
International
Emerging
Markets Equity
Investments		   UBS PACE
Global Real
Estate
Securities
Investments		   UBS PACE
Alternative
Strategies
Investments		  
Investment income:  
Interest (net of foreign withholding taxes of $0; $0; $0; $0; $0; $26; $0; $0,
respectively)		   $ 452,504     $ 141,888     $ 40,904     $ 7,003,989    
Dividends (net of foreign witholding taxes of $33,033; $36,650; $6,841;
$1,083; $904,540; $546,040; $69,929; $96,833, respectively)		     15,135,891       6,270,125       1,029,768       2,256,230    
Securities lending income (includes $120,506; $186,383; $299,584; $442,274;
$95,855; $148,158; $12,536; $0, respectively, earned from an affiliated entity)		     241,694       233,323       17,091       —    
      15,830,089       6,645,336       1,087,763       9,260,219    
Expenses:  
Investment management and administration fees     6,255,322       2,610,207       253,855       3,893,480    
Service fees–Class A     164,165       41,404       7,724       99,678    
Service and distribution fees–Class B     2,344       2,644       —       118    
Service and distribution fees–Class C     44,129       39,742       1,720       24,069    
Transfer agency and related service fees     619,966       597,553       70,409       174,869    
Custody and accounting fees     713,741       711,982       19,039       265,520    
Reports and notices to shareholders     70,555       55,085       7,395       19,637    
Professional fees     57,544       55,824       43,358       62,197    
Federal and state registration fees     39,454       29,236       17,487       39,578    
Insurance expense     19,686       5,885       155       2,665    
Trustees' fees     13,281       9,472       6,177       10,246    
Interest expense     4,645       5,277       —       —    
Dividend and interest expense for securities sold short     —       —       —       926,647    
Offering expenses     —       —       83,496       —    
Other expenses     25,040       21,280       13,804       20,535    
      8,029,872       4,185,591       524,619       5,539,239    
Less: Fee waivers and/or expense reimbursements by investment manager
and administrator		     —       —       (134,393 )     (22 )  
Net expenses     8,029,872       4,185,591       390,226       5,539,217    
Net investment income (loss)     7,800,217       2,459,745       697,537       3,721,002    
Net realized and unrealized gains (losses) from investment activities:  
Net realized gains (losses) from:
Investments (net of foreign tax expense of $0; $0; $0; $0; $0;
$58,000; $0; $0, respectively)		     44,737,778       42,988,587       (2,446,235 )     15,704,260    
Commissions recaptured     28,480       —       —       3,576    
Futures     (1,377,759 )     —       —       (9,721,141 )  
Options written     —       —       —       2,671,740    
Short sales     —       —       —       (5,476,098 )  
Swaps     —       —       —       6,597,066    
Forward foreign currency contracts and foreign currency transactions     809,598       104,615       7,126       (6,327,708 )  
Net change in unrealized appreciation/depreciation of:
Investments		     (156,515,223 )     (46,098,144 )     (3,060,529 )     (32,439,574 )  
Futures     248,965       —       —       67,292    
Options written     —       —       —       (1,179,442 )  
Short sales     —       —       —       6,881,007    
Swaps     —       —       —       6,004,679    
Other assets and liabilities denominated in foreign currency and
forward foreign currency contracts		     (265,295 )     (214,290 )     7,710       (521,552 )  
Net realized and unrealized losses from investment activities     (112,333,456 )     (3,219,232 )     (5,491,928 )     (17,735,895 )  
Net decrease in net assets resulting from operations   $ (104,533,239 )   $ (759,487 )   $ (4,794,391 )   $ (14,014,893 )  

 


201


UBS PACE Select Advisors Trust

Statement of changes in net assets

    UBS PACE
Money Market
Investments		   UBS PACE
Government Securities
Fixed Income Investments		   UBS PACE
Intermediate Fixed Income
Investments		  
    For the
six months
ended
January 31,
2008
(unaudited)		   For the
year ended
July 31, 2007		   For the
six months
ended
January 31,
2008
(unaudited)		   For the
year ended
July 31, 2007		   For the
six months
ended
January 31,
2008
(unaudited)		   For the
year ended
July 31, 2007		  
From operations:  
Net investment income   $ 10,171,937     $ 18,020,741     $ 14,860,399     $ 26,289,534     $ 10,086,012     $ 17,053,940    
Net realized gains (losses) from:
Investments, futures, options written, short sales and swaps		     42,586       (150 )     3,109,126       1,130,006       7,109,664       1,553,178    
Forward foreign currency contracts and foreign
currency transactions		     —       —       —       —       716,293       (204,961 )  
Net change in unrealized appreciation/depreciation of:
Investments, futures, options written, short sales and swaps		     —       —       24,662,472       (2,079,337 )     13,233,159       2,576,284    
Other assets and liabilities denominated in foreign currency
and forward foreign currency contracts		     —       —       —       —       (123,327 )     17,322    
Net increase in net assets resulting from operations     10,214,523       18,020,591       42,631,997       25,340,203       31,021,801       20,995,763    
Dividends and distributions to shareholders from:  
Net investment income–Class A     —       —       (2,114,275 )     (4,762,590 )     (1,071,403 )     (2,130,119 )  
Net investment income–Class B     —       —       (24,078 )     (78,641 )     (5,080 )     (13,418 )  
Net investment income–Class C     —       —       (507,023 )     (1,108,077 )     (70,629 )     (152,367 )  
Net investment income–Class Y     —       —       (364,879 )     (495,554 )     (28,295 )     (51,748 )  
Net investment income–Class P     (10,171,937 )     (18,020,741 )     (11,637,247 )     (19,557,779 )     (8,864,192 )     (14,705,551 )  
Return of capital–Class A     —       —       —       —       —       —    
Return of capital–Class B     —       —       —       —       —       —    
Return of capital–Class C     —       —       —       —       —       —    
Return of capital–Class Y     —       —       —       —       —       —    
Return of capital–Class P     —       —       —       —       —       —    
      (10,171,937 )     (18,020,741 )     (14,647,502 )     (26,002,641 )     (10,039,599 )     (17,053,203 )  
From beneficial interest transactions:  
Net proceeds from the sale of shares     372,077,075       424,841,805       98,461,613       175,224,955       64,590,073       127,240,505    
Cost of shares repurchased     (267,538,444 )     (376,397,873 )     (60,724,941 )     (128,651,772 )     (49,250,501 )     (121,672,914 )  
Proceeds from dividends reinvested     10,007,251       17,545,669       13,748,807       24,028,262       9,582,190       16,013,323    
Net increase in net assets from beneficial interest
transactions		     114,545,882       65,989,601       51,485,479       70,601,445       24,921,762       21,580,914    
Redemption fees     —       —       15,334       12,235       10,209       25,868    
Contributions to capital from custodian     —       —       —       —       —       —    
Net increase in net assets     114,588,468       65,989,451       79,485,308       69,951,242       45,914,173       25,549,342    
Net assets:  
Beginning of period     408,562,342       342,572,891       610,659,287       540,708,045       438,743,600       413,194,258    
End of period   $ 523,150,810     $ 408,562,342     $ 690,144,595     $ 610,659,287     $ 484,657,773     $ 438,743,600    
Accumulated undistributed (distributions in excess of)
net investment income		   $ —     $ —     $ 308,980     $ 96,083     $ (336,174 )   $ (382,587 )  

 

See accompanying notes to financial statements
202


    UBS PACE
Strategic Fixed Income
Investments		   UBS PACE
Municipal Fixed Income
Investments		  
    For the
six months
ended
January 31,
2008
(unaudited)		   For the
year ended
July 31, 2007		   For the
six months
ended
January 31,
2008
(unaudited)		   For the
year ended
July 31, 2007		  
From operations:  
Net investment income   $ 17,854,621     $ 27,769,395     $ 5,559,762     $ 9,133,036    
Net realized gains (losses) from:
Investments, futures, options written, short sales and swaps		     32,676,245       (2,336,563 )     (219,835 )     (776,053 )  
Forward foreign currency contracts and foreign
currency transactions		     (1,336,844 )     981,645       —       —    
Net change in unrealized appreciation/depreciation of:
Investments, futures, options written, short sales and swaps		     25,889,097       157,397       8,712,073       (598,450 )  
Other assets and liabilities denominated in foreign currency
and forward foreign currency contracts		     158,734       (654,197 )     —       —    
Net increase in net assets resulting from operations     75,241,853       25,917,677       14,052,000       7,758,533    
Dividends and distributions to shareholders from:  
Net investment income–Class A     (488,890 )     (882,135 )     (1,487,961 )     (3,040,905 )  
Net investment income–Class B     (6,081 )     (23,752 )     (2,724 )     (13,984 )  
Net investment income–Class C     (107,375 )     (210,729 )     (209,773 )     (434,873 )  
Net investment income–Class Y     (39,024 )     (40,030 )     (2,481 )     (5,089 )  
Net investment income–Class P     (17,152,097 )     (25,766,422 )     (3,858,626 )     (5,639,683 )  
Return of capital–Class A     —       (39,132 )     —       —    
Return of capital–Class B     —       (822 )     —       —    
Return of capital–Class C     —       (9,966 )     —       —    
Return of capital–Class Y     —       (2,179 )     —       —    
Return of capital–Class P     —       (1,225,471 )     —       —    
      (17,793,467 )     (28,200,638 )     (5,561,565 )     (9,134,534 )  
From beneficial interest transactions:  
Net proceeds from the sale of shares     129,281,892       248,747,853       58,491,095       86,909,193    
Cost of shares repurchased     (78,046,977 )     (133,682,533 )     (26,798,112 )     (51,575,204 )  
Proceeds from dividends reinvested     17,450,020       27,609,952       4,944,709       7,837,102    
Net increase in net assets from beneficial interest
transactions		     68,684,935       142,675,272       36,637,692       43,171,091    
Redemption fees     18,847       21,963       7,660       2,704    
Contributions to capital from custodian     23,174       —       —       —    
Net increase in net assets     126,175,342       140,414,274       45,135,787       41,797,794    
Net assets:  
Beginning of period     708,529,925       568,115,651       299,762,938       257,965,144    
End of period   $ 834,705,267     $ 708,529,925     $ 344,898,725     $ 299,762,938    
Accumulated undistributed (distributions in excess of)
net investment income		   $ (1,659,000 )   $ (1,720,154 )   $ (1,803 )   $ —    

 


203


UBS PACE Select Advisors Trust

Statement of changes in net assets (continued)

    UBS PACE
Global Fixed Income
Investments		   UBS PACE
High Yield
Investments		   UBS PACE
Large Co Value Equity
Investments		  
    For the
six months
ended
January 31,
2008
(unaudited)		   For the
year ended
July 31, 2007		   For the
six months
ended
January 31,
2008
(unaudited)		   For the
year ended
July 31, 2007		   For the
six months
ended
January 31,
2008
(unaudited)		   For the
year ended
July 31, 2007		  
From operations:  
Net investment income   $ 6,066,464     $ 12,571,426     $ 3,516,181     $ 3,009,461     $ 10,986,460     $ 18,682,756    
Net realized gains (losses) from:
Investments and futures		     (346,388 )     (5,643,237 )     (586,384 )     145,934       25,278,028       192,333,754    
Forward foreign currency contracts and foreign
currency transactions		     11,467,173       7,951,524       (280,857 )     (100,490 )     —       87    
Net change in unrealized appreciation/depreciation of:
Investments and futures		     47,036,941       6,273,746       (1,019,613 )     (3,859,684 )     (116,906,191 )     (6,757,007 )  
Other assets and liabilities denominated in foreign
currency and forward foreign currency contracts		     2,556,872       2,340,307       (50,236 )     20,861       —       —    
Net increase (decrease) in net assets resulting from
operations		     66,781,062       23,493,766       1,579,091       (783,918 )     (80,641,703 )     204,259,590    
Dividends and distributions to shareholders from:  
Net investment income–Class A     (7,431,583 )     (3,145,649 )     (26,629 )     (36,824 )     (1,415,372 )     (2,887,155 )  
Net investment income–Class B     (37,622 )     (14,857 )     —       —       —       —    
Net investment income–Class C     (417,743 )     (150,768 )     —       —       —       (56,819 )  
Net investment income–Class Y     (516,873 )     (212,495 )     —       —       (365,430 )     (585,242 )  
Net investment income–Class P     (32,788,438 )     (11,372,307 )     (3,491,117 )     (2,975,599 )     (10,592,086 )     (14,521,659 )  
Net realized gains from investment activities–Class A     —       —       (885 )     —       (31,780,291 )     (34,160,087 )  
Net realized gains from investment activities–Class B     —       —       —       —       (167,260 )     (491,696 )  
Net realized gains from investment activities–Class C     —       —       —       —       (3,771,932 )     (4,144,721 )  
Net realized gains from investment activities–Class Y     —       —       —       —       (4,834,393 )     (5,024,893 )  
Net realized gains from investment activities–Class P     —       —       (115,247 )     —       (154,419,861 )     (132,723,012 )  
      (41,192,259 )     (14,896,076 )     (3,633,878 )     (3,012,423 )     (207,346,625 )     (194,595,284 )  
From beneficial interest transactions:  
Net proceeds from the sale of shares     84,189,198       152,571,778       40,638,434       83,690,855       201,390,930       348,850,961    
Cost of shares repurchased     (49,348,745 )     (97,400,804 )     (8,438,541 )     (6,417,215 )     (149,278,188 )     (322,560,606 )  
Proceeds from dividends reinvested     38,932,262       13,927,142       3,603,550       2,984,685       201,490,794       188,804,160    
Net increase in net assets from beneficial interest
transactions		     73,772,715       69,098,116       35,803,443       80,258,325       253,603,536       215,094,515    
Redemption fees     12,019       8,911       5,415       1,676       29,058       18,299    
Net increase (decrease) in net assets     99,373,537       77,704,717       33,754,071       76,463,660       (34,355,734 )     224,777,120    
Net assets:  
Beginning of period     566,880,039       489,175,322       87,911,781       11,448,121       1,680,526,835       1,455,749,715    
End of period   $ 666,253,576     $ 566,880,039     $ 121,665,852     $ 87,911,781     $ 1,646,171,101     $ 1,680,526,835    
Accumulated undistributed (distributions in excess of)
net investment income		   $ (34,383,396 )   $ 742,399     $ (103,988 )   $ (102,423 )   $ 8,488,327     $ 9,874,755    

 

See accompanying notes to financial statements
204


    UBS PACE
Large Co Growth Equity
Investments		   UBS PACE
Small/Medium Co Value
Equity Investments		  
    For the
six months
ended
January 31,
2008
(unaudited)		   For the
year ended
July 31, 2007		   For the
six months
ended
January 31,
2008
(unaudited)		   For the
year ended
July 31, 2007		  
From operations:  
Net investment income   $ 2,755,500     $ 1,821,509     $ 1,447,384     $ 652,609    
Net realized gains (losses) from:
Investments and futures		     62,269,113       126,868,573       10,013,391       55,263,276    
Forward foreign currency contracts and foreign
currency transactions		     858       (1,179 )     —       —    
Net change in unrealized appreciation/depreciation of:
Investments and futures		     (97,715,130 )     39,294,481       (75,560,433 )     23,711,660    
Other assets and liabilities denominated in foreign
currency and forward foreign currency contracts		     —       —       —       —    
Net increase (decrease) in net assets resulting from
operations		     (32,689,659 )     167,983,384       (64,099,658 )     79,627,545    
Dividends and distributions to shareholders from:  
Net investment income–Class A     —       —       (11,759 )     —    
Net investment income–Class B     —       —       —       —    
Net investment income–Class C     —       —       —       —    
Net investment income–Class Y     (69,854 )     (69,862 )     (17,009 )     —    
Net investment income–Class P     (2,467,674 )     (2,231,348 )     (702,792 )     —    
Net realized gains from investment activities–Class A     (2,106,176 )     —       (4,977,880 )     (1,909,067 )  
Net realized gains from investment activities–Class B     (12,829 )     —       (98,245 )     (64,279 )  
Net realized gains from investment activities–Class C     (196,275 )     —       (1,303,538 )     (519,896 )  
Net realized gains from investment activities–Class Y     (679,047 )     —       (544,442 )     (171,355 )  
Net realized gains from investment activities–Class P     (33,937,523 )     —       (53,593,047 )     (17,081,765 )  
      (39,469,378 )     (2,301,210 )     (61,248,712 )     (19,746,362 )  
From beneficial interest transactions:  
Net proceeds from the sale of shares     210,339,685       359,424,717       75,130,642       126,910,887    
Cost of shares repurchased     (126,508,852 )     (240,594,314 )     (50,688,711 )     (106,382,984 )  
Proceeds from dividends reinvested     38,722,149       2,264,287       60,186,207       19,435,972    
Net increase in net assets from beneficial interest
transactions		     122,552,982       121,094,690       84,628,138       39,963,875    
Redemption fees     32,035       18,865       14,282       4,718    
Net increase (decrease) in net assets     50,425,980       286,795,729       (40,705,950 )     99,849,776    
Net assets:  
Beginning of period     1,346,057,908       1,059,262,179       550,668,059       450,818,283    
End of period   $ 1,396,483,888     $ 1,346,057,908     $ 509,962,109     $ 550,668,059    
Accumulated undistributed (distributions in excess of)
net investment income		   $ 565,676     $ 347,704     $ 1,303,768     $ 587,944    

 


205


UBS PACE Select Advisors Trust

Statement of changes in net assets (concluded)

    UBS PACE
Small/Medium Co Growth
Equity Investments		   UBS PACE
International
Equity Investments		   UBS PACE
International Emerging
Markets Equity Investments		  
    For the
six months
ended
January 31,
2008
(unaudited)		   For the
year ended
July 31, 2007		   For the
six months
ended
January 31,
2008
(unaudited)		   For the
year ended
July 31, 2007		   For the
six months
ended
January 31,
2008
(unaudited)		   For the
year ended
July 31, 2007		  
From operations:  
Net investment income (loss)   $ (1,641,354 )   $ (3,195,671 )   $ 7,800,217     $ 20,659,319     $ 2,459,745     $ 4,097,537    
Net realized gains (losses) from:
Investments, futures, options written, short sales
and swaps		     4,352,945       76,175,005       43,388,499       142,651,404       42,988,587       54,497,962    
Forward foreign currency contracts and foreign
currency transactions		     —       —       809,598       (1,558,001 )     104,615       (399,420 )  
Net change in unrealized appreciation/depreciation of:
Investments, futures, options written, short sales
and swaps		     (49,076,233 )     29,647,759       (156,266,258 )     100,565,372       (46,098,144 )     88,860,414    
Other assets and liabilities denominated in foreign
currency and forward foreign currency contracts		     —       —       (265,295 )     437,640       (214,290 )     (345,807 )  
Net increase (decrease) in net assets resulting from
operations		     (46,364,642 )     102,627,093       (104,533,239 )     262,755,734       (759,487 )     146,710,686    
Dividends and distributions to shareholders from:  
Net investment income–Class A     —       —       (1,698,807 )     (2,034,810 )     (355,396 )     (249,613 )  
Net investment income–Class B     —       —       (1,378 )     (3,730 )     (1,385 )     (620 )  
Net investment income–Class C     —       —       (44,547 )     (76,628 )     (37,870 )     (17,791 )  
Net investment income–Class Y     —       —       (1,063,788 )     (1,204,817 )     (491,601 )     (302,392 )  
Net investment income–Class P     —       —       (19,300,639 )     (19,420,316 )     (4,491,022 )     (3,016,785 )  
Net realized gains from investment activities–Class A     (7,153,725 )     (1,343,996 )     (13,559,594 )     (10,261,337 )     (4,756,491 )     (3,130,829 )  
Net realized gains from investment activities–Class B     (38,611 )     (16,697 )     (48,077 )     (56,608 )     (77,205 )     (67,462 )  
Net realized gains from investment activities–Class C     (1,017,570 )     (189,623 )     (932,772 )     (745,315 )     (1,209,655 )     (809,794 )  
Net realized gains from investment activities–Class Y     (998,131 )     (132,391 )     (6,706,296 )     (5,026,490 )     (5,043,668 )     (2,766,836 )  
Net realized gains from investment activities–Class P     (76,426,562 )     (11,193,851 )     (128,203,620 )     (84,780,704 )     (56,782,137 )     (37,148,298 )  
      (85,634,599 )     (12,876,558 )     (171,559,518 )     (123,610,755 )     (73,246,430 )     (47,510,420 )  
From beneficial interest transactions:  
Net proceeds from the sale of shares     74,339,266       126,178,794       182,978,863       317,221,422       57,022,183       89,829,187    
Cost of shares repurchased     (53,685,531 )     (105,768,616 )     (127,844,963 )     (272,647,356 )     (59,203,672 )     (99,396,200 )  
Proceeds from dividends reinvested     84,111,142       12,662,240       167,692,068       120,906,709       72,160,109       46,879,964    
Net increase in net assets from beneficial interest
transactions		     104,764,877       33,072,418       222,825,968       165,480,775       69,978,620       37,312,951    
Redemption fees     12,250       4,899       26,770       147,428       20,016       4,960    
Contributions to capital from investment
manager/subadvisor		     —       —       —       —       —       —    
Net increase (decrease) in net assets     (27,222,114 )     122,827,852       (53,240,019 )     304,773,182       (4,007,281 )     136,518,177    
Net assets:  
Beginning of period     563,533,067       440,705,215       1,378,824,913       1,074,051,731       443,697,509       307,179,332    
End of period   $ 536,310,953     $ 563,533,067     $ 1,325,584,894     $ 1,378,824,913     $ 439,690,228     $ 443,697,509    
Accumulated undistributed (distributions in excess of)
net investment income		   $ (1,641,354 )   $ —     $ (2,954,012 )   $ 11,354,930     $ (493,646 )   $ 2,423,883    

 

1 Commencement of operations.

See accompanying notes to financial statements
206


    UBS PACE
Global Real Estate
Securities Investments		   UBS PACE
Alternative
Strategies Investments		  
    For the
six months
ended
January 31,
2008
(unaudited)		   For the
period
November 30,
20061
through
July 31, 2007		   For the
six months
ended
January 31,
2008
(unaudited)		   For the period
April 3, 20061
through
July 31, 2007		  
From operations:  
Net investment income (loss)   $ 697,537     $ 317,023     $ 3,721,002     $ 3,243,445    
Net realized gains (losses) from:
Investments, futures, options written, short sales
and swaps		     (2,446,235 )     178,640       9,779,403       6,941,986    
Forward foreign currency contracts and foreign
currency transactions		     7,126       (25,269 )     (6,327,708 )     638,020    
Net change in unrealized appreciation/depreciation of:
Investments, futures, options written, short sales
and swaps		     (3,060,529 )     (4,530,318 )     (20,666,038 )     16,529,985    
Other assets and liabilities denominated in foreign
currency and forward foreign currency contracts		     7,710       (3,195 )     (521,552 )     (677,285 )  
Net increase (decrease) in net assets resulting from
operations		     (4,794,391 )     (4,063,119 )     (14,014,893 )     26,676,151    
Dividends and distributions to shareholders from:  
Net investment income–Class A     (193,919 )     (122 )     (518,325 )     (113,151 )  
Net investment income–Class B     —       —       (42 )     (46 )  
Net investment income–Class C     (7,556 )     (80 )     (22,588 )     (1,207 )  
Net investment income–Class Y     —       (43,000 )     —       —    
Net investment income–Class P     (1,805,244 )     —       (3,317,376 )     (826,863 )  
Net realized gains from investment activities–Class A     (21,919 )     —       (1,412,015 )     —    
Net realized gains from investment activities–Class B     —       —       (432 )     —    
Net realized gains from investment activities–Class C     (1,147 )     —       (83,108 )     —    
Net realized gains from investment activities–Class Y     —       —       —       —    
Net realized gains from investment activities–Class P     (194,759 )     —       (7,895,869 )     —    
      (2,224,544 )     (43,202 )     (13,249,755 )     (941,267 )  
From beneficial interest transactions:  
Net proceeds from the sale of shares     34,883,986       66,645,812       227,349,543       396,179,418    
Cost of shares repurchased     (7,291,185 )     (13,274,912 )     (48,229,950 )     (27,573,409 )  
Proceeds from dividends reinvested     2,211,400       43,202       13,118,387       933,888    
Net increase in net assets from beneficial interest
transactions		     29,804,201       53,414,102       192,237,980       369,539,897    
Redemption fees     9,358       6,315       36,767       9,046    
Contributions to capital from investment
manager/subadvisor		     —       —       —       17,248    
Net increase (decrease) in net assets     22,794,624       49,314,096       165,010,099       395,301,075    
Net assets:  
Beginning of period     49,314,096       —       452,919,189       57,618,114    
End of period   $ 72,108,720     $ 49,314,096     $ 617,929,288     $ 452,919,189    
Accumulated undistributed (distributions in excess of)
net investment income		   $ (984,992 )   $ 324,190     $ 1,949,368     $ 2,086,697    

 


207



(This page has been left blank intentionally)


208


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Money Market Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class P  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Net investment income     0.022       0.048       0.038       0.018       0.005       0.009    
Dividends from net investment income     (0.022 )     (0.048 )     (0.038 )     (0.018 )     (0.005 )     (0.009 )  
Net asset value, end of period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total investment return1      2.21 %     4.86 %     3.89 %     1.80 %     0.51 %     0.96 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 523,151     $ 408,562     $ 342,573     $ 227,528     $ 166,067     $ 123,915    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by manager		     0.60 %2      0.60 %     0.60 %     0.60 %     0.60 %     0.57 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     0.89 %2      0.92 %     0.99 %     0.97 %     0.96 %     1.13 %  
Net investment income to average net assets     4.32 %2      4.75 %     3.89 %     1.85 %     0.51 %     0.94 %  

 

1  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. The figures do not include program fees; results would be lower if these fees were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions.

2  Annualized.

See accompanying notes to financial statements
209


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Government Securities Fixed Income Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class A  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   20041    2003  
Net asset value, beginning of period   $ 12.72     $ 12.71     $ 13.20     $ 13.05     $ 12.81     $ 13.08    
Net investment income     0.29 2      0.57 2      0.51       0.34       0.26       0.33    
Net realized and unrealized gains (losses)  
from investment activities		     0.55       0.00 3      (0.31 )     0.17       0.34       (0.18 )  
Net increase from operations     0.84       0.57       0.20       0.51       0.60       0.15    
Dividends from net investment income     (0.28 )     (0.56 )     (0.53 )     (0.36 )     (0.36 )     (0.42 )  
Distributions from net realized gains
from investment activities		     —       —       (0.16 )     —       —       —    
Total dividends and distributions     (0.28 )     (0.56 )     (0.69 )     (0.36 )     (0.36 )     (0.42 )  
Net asset value, end of period   $ 13.28     $ 12.72     $ 12.71     $ 13.20     $ 13.05     $ 12.81    
Total investment return4      6.68 %     4.52 %     1.61 %     3.97 %     4.75 %     1.13 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 97,680     $ 99,378     $ 114,663     $ 140,734     $ 159,227     $ 190,933    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by manager		     1.07 %5      1.12 %     1.11 %     1.08 %     1.08 %     1.04 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     1.13 %5      1.13 %     1.17 %     1.17 %     1.20 %     1.20 %  
Net investment income to average net assets     4.39 %5      4.40 %     3.97 %     2.54 %     2.08 %     2.57 %  
Portfolio turnover     266 %     495 %     575 %     665 %     805 %     741 %  

 

1  As of August 1, 2003, the Portfolio has adopted the method of accounting for interim payments on swap contracts in accordance with Financial Accounting Standards Board Statement No. 133. These interim payments are reflected within net realized and unrealized gain (loss) from investment activities, however, prior to August 1, 2003, these interim payments were reflected within interest income (or as an offset to interest income) on the Statement of operations. The effect of this change for the year ended July 31, 2004 was to decrease net investment income per share by $0.01 on all share classes and increase net realized and unrealized gain (loss) from investment activities per share by $0.01 on all share classes, and decrease the ratio of net investment income by 0.05% and 0.04% on Class A and Class B, respectively.

2  Calculated using the average shares method.

3  Amount represents less than $0.005 per share.

4  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

5  Annualized.

See accompanying notes to financial statements
210


    Class B  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   20041    2003  
Net asset value, beginning of period   $ 12.73     $ 12.72     $ 13.20     $ 13.05     $ 12.81     $ 13.08    
Net investment income     0.23 2      0.46 2      0.40       0.22       0.14       0.23    
Net realized and unrealized gains (losses)  
from investment activities		     0.56       0.01       (0.29 )     0.19       0.36       (0.18 )  
Net increase from operations     0.79       0.47       0.11       0.41       0.50       0.05    
Dividends from net investment income     (0.23 )     (0.46 )     (0.43 )     (0.26 )     (0.26 )     (0.32 )  
Distributions from net realized gains
from investment activities		     —       —       (0.16 )     —       —       —    
Total dividends and distributions     (0.23 )     (0.46 )     (0.59 )     (0.26 )     (0.26 )     (0.32 )  
Net asset value, end of period   $ 13.29     $ 12.73     $ 12.72     $ 13.20     $ 13.05     $ 12.81    
Total investment return4      6.26 %     3.73 %     0.92 %     3.17 %     3.94 %     0.34 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 1,073     $ 1,617     $ 2,776     $ 4,273     $ 8,373     $ 15,056    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by manager		     1.82 %5      1.87 %     1.86 %     1.84 %     1.84 %     1.82 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     1.91 %5      1.88 %     1.93 %     1.93 %     1.95 %     1.94 %  
Net investment income to average net assets     3.63 %5      3.64 %     3.20 %     1.69 %     1.33 %     1.79 %  
Portfolio turnover     266 %     495 %     575 %     665 %     805 %     741 %  

 


211


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Government Securities Fixed Income Investments
(continued)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class C  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   20041    2003  
Net asset value, beginning of period   $ 12.73     $ 12.72     $ 13.21     $ 13.06     $ 12.82     $ 13.09    
Net investment income     0.25 2      0.50 2      0.45       0.27       0.19       0.26    
Net realized and unrealized gains (losses)
from investment activities		     0.56       0.01       (0.32 )     0.17       0.34       (0.18 )  
Net increase from operations     0.81       0.51       0.13       0.44       0.53       0.08    
Dividends from net investment income     (0.25 )     (0.50 )     (0.46 )     (0.29 )     (0.29 )     (0.35 )  
Distributions from net realized gains
from investment activities		     —       —       (0.16 )     —       —       —    
Total dividends and distributions     (0.25 )     (0.50 )     (0.62 )     (0.29 )     (0.29 )     (0.35 )  
Net asset value, end of period   $ 13.29     $ 12.73     $ 12.72     $ 13.21     $ 13.06     $ 12.82    
Total investment return4      6.40 %     4.00 %     1.09 %     3.40 %     4.18 %     0.59 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 26,533     $ 26,449     $ 30,338     $ 36,372     $ 41,707     $ 50,245    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by and recoupments to manager		     1.57 %5      1.62 %     1.62 %     1.62 %     1.62 %     1.57 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     1.71 %5      1.70 %     1.75 %     1.74 %     1.78 %     1.77 %  
Net investment income to average net assets     3.89 %5      3.90 %     3.45 %     2.00 %     1.54 %     2.04 %  
Portfolio turnover     266 %     495 %     575 %     665 %     805 %     741 %  

 

1  As of August 1, 2003, the Portfolio has adopted the method of accounting for interim payments on swap contracts in accordance with Financial Accounting Standards Board Statement No. 133. These interim payments are reflected within net realized and unrealized gain (loss) from investment activities, however, prior to August 1, 2003, these interim payments were reflected within interest income (or as an offset to interest income) on the Statement of operations. The effect of this change for the year ended July 31, 2004 was to decrease net investment income per share by $0.01 on all share classes and increase net realized and unrealized gain (loss) from investment activities per share by $0.01 on all share classes, and decrease the ratio of net investment income by 0.05% and 0.04% on Class C and Class Y, respectively.

2  Calculated using the average shares method.

3  Amount represents less than $0.005 per share.

4  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

5  Annualized.

6  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
212


    Class Y  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   20041    2003  
Net asset value, beginning of period   $ 12.73     $ 12.72     $ 13.20     $ 13.05     $ 12.80     $ 13.07    
Net investment income     0.31 2      0.61 2      0.55       0.38       0.29       0.37    
Net realized and unrealized gains (losses)
from investment activities		     0.55       0.00 3      (0.30 )     0.17       0.36       (0.18 )  
Net increase from operations     0.86       0.61       0.25       0.55       0.65       0.19    
Dividends from net investment income     (0.30 )     (0.60 )     (0.57 )     (0.40 )     (0.40 )     (0.46 )  
Distributions from net realized gains
from investment activities		     —       —       (0.16 )     —       —       —    
Total dividends and distributions     (0.30 )     (0.60 )     (0.73 )     (0.40 )     (0.40 )     (0.46 )  
Net asset value, end of period   $ 13.29     $ 12.73     $ 12.72     $ 13.20     $ 13.05     $ 12.80    
Total investment return4      6.85 %     4.87 %     1.97 %     4.24 %     5.12 %     1.46 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 17,622     $ 13,658     $ 8,460     $ 10,069     $ 10,441     $ 16,466    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by and recoupments to manager		     0.76 %5,6      0.79 %     0.81 %     0.76 %     0.76 %     0.72 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     0.79 %5      0.79 %     0.84 %     0.85 %     0.88 %     0.88 %  
Net investment income to average net assets     4.70 %5,6      4.74 %     4.27 %     2.88 %     2.41 %     2.89 %  
Portfolio turnover     266 %     495 %     575 %     665 %     805 %     741 %  

 


213


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Government Securities Fixed Income Investments
(concluded)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class P  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   20041    2003  
Net asset value, beginning of period   $ 12.72     $ 12.72     $ 13.20     $ 13.06     $ 12.82     $ 13.09    
Net investment income     0.30 2      0.60 2      0.54       0.37       0.30       0.36    
Net realized and unrealized gains (losses)
from investment activities		     0.56       (0.01 )     (0.30 )     0.16       0.33       (0.18 )  
Net increase from operations     0.86       0.59       0.24       0.53       0.63       0.18    
Dividends from net investment income     (0.30 )     (0.59 )     (0.56 )     (0.39 )     (0.39 )     (0.45 )  
Distributions from net realized gains from
investment activities		     —       —       (0.16 )     —       —       —    
Total dividends and distributions     (0.30 )     (0.59 )     (0.72 )     (0.39 )     (0.39 )     (0.45 )  
Net asset value, end of period   $ 13.28     $ 12.72     $ 12.72     $ 13.20     $ 13.06     $ 12.82    
Total investment return3      6.82 %     4.71 %     1.94 %     4.11 %     4.97 %     1.35 %  
Ratios/supplemental data:  
Net assets, end of period (000s)   $ 547,237     $ 469,556     $ 384,472     $ 318,339     $ 252,716     $ 207,466    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by manager		     0.82 %4      0.87 %     0.87 %     0.87 %     0.87 %     0.83 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     0.90 %4      0.91 %     0.96 %     0.96 %     1.00 %     0.98 %  
Net investment income to average net assets     4.64 %4      4.66 %     4.22 %     2.82 %     2.27 %     2.76 %  
Portfolio turnover     266 %     495 %     575 %     665 %     805 %     741 %  

 

1  As of August 1, 2003, the Portfolio has adopted the method of accounting for interim payments on swap contracts in accordance with Financial Accounting Standards Board Statement No. 133. These interim payments are reflected within net realized and unrealized gain (loss) from investment activities, however, prior to August 1, 2003, these interim payments were reflected within interest income (or as an offset to interest income) on the Statement of operations. The effect of this change for the year ended July 31, 2004 was to decrease net investment income per share by $0.01 on all share classes and increase net realized and unrealized gain (loss) from investment activities per share by $0.01 on all share classes, and decrease the ratio of net investment income by 0.05% on Class P.

2  Calculated using the average shares method.

3  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

4  Annualized.

See accompanying notes to financial statements
214


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215


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Intermediate Fixed Income Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class A  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 11.39     $ 11.27     $ 11.44     $ 11.51     $ 11.46     $ 11.13    
Net investment income     0.24 1      0.43 1      0.38 1      0.34 1      0.29       0.33    
Net realized and unrealized gains (losses)
from investment activities		     0.53       0.12       (0.17 )     (0.07 )     0.06       0.34    
Net increase from operations     0.77       0.55       0.21       0.27       0.35       0.67    
Dividends from net investment income     (0.24 )     (0.43 )     (0.38 )     (0.34 )     (0.30 )     (0.34 )  
Net asset value, end of period   $ 11.92     $ 11.39     $ 11.27     $ 11.44     $ 11.51     $ 11.46    
Total investment return2      6.85 %     4.96 %     1.90 %     2.38 %     3.08 %     6.05 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 52,489     $ 51,800     $ 59,884     $ 75,331     $ 90,732     $ 113,500    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by manager		     0.93 %3      1.05 %     1.06 %     1.07 %     1.07 %     1.03 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     1.08 %3      1.08 %     1.10 %     1.09 %     1.13 %     1.14 %  
Net investment income to average net assets     4.17 %3      3.81 %     3.36 %     2.93 %     2.52 %     2.86 %  
Portfolio turnover     213 %     255 %     349 %     221 %     299 %     294 %  

 

1  Calculated using the average shares method.

2  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

3  Annualized.

See accompanying notes to financial statements
216


    Class B  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 11.41     $ 11.29     $ 11.46     $ 11.53     $ 11.47     $ 11.15    
Net investment income     0.20 1      0.34 1      0.28 1      0.24 1      0.21       0.24    
Net realized and unrealized gains (losses)
from investment activities		     0.53       0.13       (0.15 )     (0.06 )     0.06       0.33    
Net increase from operations     0.73       0.47       0.13       0.18       0.27       0.57    
Dividends from net investment income     (0.20 )     (0.35 )     (0.30 )     (0.25 )     (0.21 )     (0.25 )  
Net asset value, end of period   $ 11.94     $ 11.41     $ 11.29     $ 11.46     $ 11.53     $ 11.47    
Total investment return2      6.44 %     4.18 %     1.13 %     1.60 %     2.37 %     5.13 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 283     $ 324     $ 637     $ 1,458     $ 4,712     $ 9,871    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by manager		     1.68 %3      1.80 %     1.80 %     1.81 %     1.81 %     1.79 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     1.87 %3      1.84 %     1.89 %     1.87 %     1.85 %     1.87 %  
Net investment income to average net assets     3.41 %3      3.04 %     2.56 %     2.15 %     1.75 %     2.10 %  
Portfolio turnover     213 %     255 %     349 %     221 %     299 %     294 %  

 


217


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Intermediate Fixed Income Investments

(continued)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class C  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 11.40     $ 11.28     $ 11.46     $ 11.53     $ 11.48     $ 11.15    
Net investment income     0.21 1      0.38 1      0.32 1      0.28 1      0.24       0.27    
Net realized and unrealized gains (losses)
from investment activities		     0.53       0.11       (0.17 )     (0.06 )     0.05       0.34    
Net increase from operations     0.74       0.49       0.15       0.22       0.29       0.61    
Dividends from net investment income     (0.21 )     (0.37 )     (0.33 )     (0.29 )     (0.24 )     (0.28 )  
Net asset value, end of period   $ 11.93     $ 11.40     $ 11.28     $ 11.46     $ 11.53     $ 11.48    
Total investment return2      6.66 %     4.43 %     1.30 %     1.87 %     2.56 %     5.49 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 4,252     $ 4,116     $ 5,301     $ 7,684     $ 9,583     $ 12,281    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by and recoupments to manager		     1.43 %3      1.55 %     1.55 %     1.56 %     1.56 %     1.53 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     1.59 %3      1.57 %     1.59 %     1.59 %     1.61 %     1.63 %  
Net investment income to average net assets     3.67 %3      3.31 %     2.86 %     2.44 %     2.03 %     2.37 %  
Portfolio turnover     213 %     255 %     349 %     221 %     299 %     294 %  

 

1  Calculated using the average shares method.

2  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

3  Annualized.

4  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
218


    Class Y  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 11.39     $ 11.28     $ 11.45     $ 11.52     $ 11.47     $ 11.14    
Net investment income     0.26 1      0.47 1      0.41 1      0.37 1      0.34       0.36    
Net realized and unrealized gains (losses)
from investment activities		     0.53       0.10       (0.17 )     (0.07 )     0.04       0.34    
Net increase from operations     0.79       0.57       0.24       0.30       0.38       0.70    
Dividends from net investment income     (0.26 )     (0.46 )     (0.41 )     (0.37 )     (0.33 )     (0.37 )  
Net asset value, end of period   $ 11.92     $ 11.39     $ 11.28     $ 11.45     $ 11.52     $ 11.47    
Total investment return2      7.07 %     5.17 %     2.17 %     2.66 %     3.34 %     6.32 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 1,328     $ 1,249     $ 1,074     $ 1,108     $ 1,246     $ 1,730    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by and recoupments to manager		     0.68 %3      0.80 %4      0.80 %     0.81 %     0.81 %     0.77 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     0.76 %3      0.80 %     0.83 %     0.86 %     0.87 %     0.89 %  
Net investment income to average net assets     4.41 %3      4.07 %4      3.63 %     3.20 %     2.79 %     3.15 %  
Portfolio turnover     213 %     255 %     349 %     221 %     299 %     294 %  

 


219


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Intermediate Fixed Income Investments
(concluded)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class P  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 11.39     $ 11.28     $ 11.45     $ 11.52     $ 11.47     $ 11.14    
Net investment income     0.26 1      0.46 1      0.41 1      0.37 1      0.33       0.36    
Net realized and unrealized gains (losses) from
investment activities		     0.53       0.11       (0.17 )     (0.07 )     0.05       0.34    
Net increase from operations     0.79       0.57       0.24       0.30       0.38       0.70    
Dividends from net investment income     (0.26 )     (0.46 )     (0.41 )     (0.37 )     (0.33 )     (0.37 )  
Net asset value, end of period   $ 11.92     $ 11.39     $ 11.28     $ 11.45     $ 11.52     $ 11.47    
Total investment return2      7.07 %     5.17 %     2.17 %     2.66 %     3.36 %     6.34 %  
Ratios/supplemental data:  
Net assets, end of period (000s)   $ 426,306     $ 381,254     $ 346,298     $ 313,031     $ 261,390     $ 210,860    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements by
and recoupments to manager		     0.68 %3      0.80 %4      0.80 %     0.80 %     0.80 %     0.77 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     0.77 %3      0.80 %     0.81 %     0.82 %     0.84 %     0.87 %  
Net investment income to average net assets     4.42 %3      4.07 %4      3.64 %     3.22 %     2.81 %     3.10 %  
Portfolio turnover     213 %     255 %     349 %     221 %     299 %     294 %  

 

1  Calculated using the average shares method.

2  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

3  Annualized.

4  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
220



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221


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Strategic Fixed Income Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class A  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   20041    2003  
Net asset value, beginning of period   $ 13.25     $ 13.26     $ 13.89     $ 13.88     $ 13.44     $ 13.16    
Net investment income2      0.30       0.56       0.60       0.45       0.36       0.57    
Net realized and unrealized gains (losses) from
investment activities		     1.03       0.00 3      (0.59 )     0.35       0.44       0.25    
Net increase (decrease) from operations     1.33       0.56       0.01       0.80       0.80       0.82    
Dividends from net investment income     (0.30 )     (0.55 )     (0.62 )     (0.46 )     (0.36 )     (0.54 )  
Distributions from net realized gains from
investment activities		     —       —       —       (0.33 )     —       —    
Return of capital     —       (0.02 )     (0.02 )     —       —       —    
Total dividends, distributions and returns of capital     (0.30 )     (0.57 )     (0.64 )     (0.79 )     (0.36 )     (0.54 )  
Net asset value, end of period   $ 14.28     $ 13.25     $ 13.26     $ 13.89     $ 13.88     $ 13.44    
Total investment return4      10.07 %     4.32 %     0.06 %     5.88 %     6.00 %     6.22 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 24,050     $ 21,711     $ 20,735     $ 23,269     $ 24,587     $ 26,814    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and
recoupments to manager		     1.06 %5      1.15 %6      1.20 %6      1.23 %6      1.21 %     1.21 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     1.12 %5      1.15 %     1.20 %     1.23 %     1.25 %     1.25 %5  
Net investment income to average net assets     4.40 %5      4.17 %6      4.46 %6      3.20 %6      2.56 %     4.13 %  
Portfolio turnover     145 %     188 %     196 %     147 %     185 %     357 %  

 

1  As of August 1, 2003, the Portfolio has adopted the method of accounting for interim payments on swap contracts in accordance with Financial Accounting Standards Board Statement No. 133. These interim payments are reflected within net realized and unrealized gain (loss) from investment activities, however, prior to August 1, 2003, these interim payments were reflected within interest income (or as an offset to interest income) on the Statement of operations. The effect of this change for the year ended July 31, 2004 was to increase net investment income per share by $0.02 on all share classes and decrease net realized and unrealized gain (loss) from investment activities per share by $0.02 on all share classes, and increase the ratio of net investment income by 0.16% and 0.15% on Class A and Class B, respectively.

2  Calculated using the average shares method.

3  Amount represents less than $0.005 per share.

4  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

5  Annualized.

6  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

7  For the year ended July 31, 2007, UBS Global Asset Management (Americas) Inc. reimbursed a portion of its ordinary operating expenses. The ratios net and before waivers and/or expense reimbursements are the same since the reimbursement represents less than 0.01%.

See accompanying notes to financial statements
222


    Class B  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   20041    2003  
Net asset value, beginning of period   $ 13.25     $ 13.26     $ 13.88     $ 13.88     $ 13.44     $ 13.15    
Net investment income2      0.24       0.44       0.48       0.33       0.25       0.48    
Net realized and unrealized gains (losses) from
investment activities		     1.04       0.01       (0.56 )     0.36       0.45       0.25    
Net increase (decrease) from operations     1.28       0.45       (0.08 )     0.69       0.70       0.73    
Dividends from net investment income     (0.25 )     (0.44 )     (0.52 )     (0.36 )     (0.26 )     (0.44 )  
Distributions from net realized gains from
investment activities		     —       —       —       (0.33 )     —       —    
Return of capital     —       (0.02 )     (0.02 )     —       —       —    
Total dividends, distributions and returns of capital     (0.25 )     (0.46 )     (0.54 )     (0.69 )     (0.26 )     (0.44 )  
Net asset value, end of period   $ 14.28     $ 13.25     $ 13.26     $ 13.88     $ 13.88     $ 13.44    
Total investment return4      9.56 %     3.55 %     (0.68 )%     5.06 %     5.22 %     5.52 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 233     $ 456     $ 1,098     $ 2,175     $ 5,190     $ 11,227    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and
recoupments to manager		     1.81 %5      1.93 %7      1.93 %     1.94 %     1.94 %     1.93 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     2.03 %5      1.93 %7      1.98 %     1.96 %     1.95 %     1.95 %  
Net investment income to average net assets     3.61 %5      3.36 %     3.64 %     2.45 %     1.83 %     3.49 %  
Portfolio turnover     145 %     188 %     196 %     147 %     185 %     357 %  

 


223


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Strategic Fixed Income Investments
(continued)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class C  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   20041    2003  
Net asset value, beginning of period   $ 13.26     $ 13.26     $ 13.89     $ 13.88     $ 13.44     $ 13.16    
Net investment income2      0.27       0.50       0.54       0.38       0.29       0.50    
Net realized and unrealized gains (losses) from
investment activities		     1.02       0.00 3      (0.60 )     0.35       0.44       0.25    
Net increase (decrease) from operations     1.29       0.50       (0.06 )     0.73       0.73       0.75    
Dividends from net investment income     (0.27 )     (0.48 )     (0.55 )     (0.39 )     (0.29 )     (0.47 )  
Distributions from net realized gains from
investment activities		     —       —       —       (0.33 )     —       —    
Return of capital     —       (0.02 )     (0.02 )     —       —       —    
Total dividends, distributions and returns of capital     (0.27 )     (0.50 )     (0.57 )     (0.72 )     (0.29 )     (0.47 )  
Net asset value, end of period   $ 14.28     $ 13.26     $ 13.26     $ 13.89     $ 13.88     $ 13.44    
Total investment return4      9.71 %     3.87 %     (0.43 )%     5.38 %     5.49 %     5.69 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 5,732     $ 5,531     $ 6,280     $ 8,082     $ 8,960     $ 10,827    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and
recoupments to manager		     1.56 %5      1.63 %     1.68 %6      1.70 %6      1.70 %     1.70 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     1.61 %5      1.63 %     1.68 %     1.70 %     1.71 %     1.72 %  
Net investment income to average net assets     3.89 %5      3.69 %     3.97 %6      2.73 %6      2.08 %     3.67 %  
Portfolio turnover     145 %     188 %     196 %     147 %     185 %     357 %  

 

1  As of August 1, 2003, the Portfolio has adopted the method of accounting for interim payments on swap contracts in accordance with Financial Accounting Standards Board Statement No. 133. These interim payments are reflected within net realized and unrealized gain (loss) from investment activities, however, prior to August 1, 2003, these interim payments were reflected within interest income (or as an offset to interest income) on the Statement of operations. The effect of this change for the year ended July 31, 2004 was to increase net investment income per share by $0.02 on all share classes and decrease net realized and unrealized gain (loss) from investment activities per share by $0.02 on all share classes, and increase the ratio of net investment income by 0.16% and 0.16% on Class C and Class Y, respectively.

2  Calculated using the average shares method.

3  Amount represents less than $0.005 per share.

4  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

5  Annualized.

6  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
224


    Class Y  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   20041    2003  
Net asset value, beginning of period   $ 13.25     $ 13.26     $ 13.88     $ 13.87     $ 13.43     $ 13.16    
Net investment income2      0.32       0.61       0.65       0.51       0.40       0.61    
Net realized and unrealized gains (losses) from
investment activities		     1.02       (0.01 )     (0.59 )     0.34       0.44       0.23    
Net increase (decrease) from operations     1.34       0.60       0.06       0.85       0.84       0.84    
Dividends from net investment income     (0.32 )     (0.59 )     (0.66 )     (0.51 )     (0.40 )     (0.57 )  
Distributions from net realized gains from
investment activities		     —       —       —       (0.33 )     —       —    
Return of capital     —       (0.02 )     (0.02 )     —       —       —    
Total dividends, distributions and returns of capital     (0.32 )     (0.61 )     (0.68 )     (0.84 )     (0.40 )     (0.57 )  
Net asset value, end of period   $ 14.27     $ 13.25     $ 13.26     $ 13.88     $ 13.87     $ 13.43    
Total investment return4      10.17 %     4.76 %     0.41 %     6.25 %     6.27 %     6.39 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 2,244     $ 1,208     $ 716     $ 959     $ 527     $ 551    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and
recoupments to manager		     0.76 %5      0.79 %     0.85 %     0.89 %6      0.96 %6      0.98 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     0.76 %5      0.79 %     0.85 %     0.89 %     0.96 %     0.98 %  
Net investment income to average net assets     4.70 %5      4.55 %     4.79 %     3.58 %6      2.81 %6      4.19 %  
Portfolio turnover     145 %     188 %     196 %     147 %     185 %     357 %  

 


225


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Strategic Fixed Income Investments
(concluded)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class P  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   20041    2003  
Net asset value, beginning of period   $ 13.25     $ 13.26     $ 13.88     $ 13.88     $ 13.44     $ 13.16    
Net investment income2      0.32       0.59       0.64       0.49       0.42       0.61    
Net realized and unrealized gains (losses) from
investment activities		     1.02       0.00 3      (0.59 )     0.34       0.42       0.25    
Net increase from operations     1.34       0.59       0.05       0.83       0.84       0.86    
Dividends from net investment income     (0.32 )     (0.58 )     (0.65 )     (0.50 )     (0.40 )     (0.58 )  
Distributions from net realized gains from
investment activities		     —       —       —       (0.33 )     —       —    
Return of capital     —       (0.02 )     (0.02 )     —       —       —    
Total dividends, distributions and returns
of capital		     (0.32 )     (0.60 )     (0.67 )     (0.83 )     (0.40 )     (0.58 )  
Net asset value, end of period   $ 14.27     $ 13.25     $ 13.26     $ 13.88     $ 13.88     $ 13.44    
Total investment return4      10.14 %     4.63 %     0.34 %     6.13 %     6.31 %     6.54 %  
Ratios/supplemental data:  
Net assets, end of period (000s)   $ 802,446     $ 679,623     $ 539,286     $ 429,250     $ 347,091     $ 252,219    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements by
and recoupments to manager		     0.81 %5      0.93 %6      0.93 %     0.93 %     0.93 %     0.90 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     0.87 %5      0.93 %     0.98 %     0.98 %     0.99 %     1.00 %  
Net investment income to average net assets     4.64 %5      4.40 %6      4.77 %     3.51 %     2.85 %     4.44 %  
Portfolio turnover     145 %     188 %     196 %     147 %     185 %     357 %  

 

1  As of August 1, 2003, the Portfolio has adopted the method of accounting for interim payments on swap contracts in accordance with Financial Accounting Standards Board Statement No. 133. These interim payments are reflected within net realized and unrealized gain (loss) from investment activities, however, prior to August 1, 2003, these interim payments were reflected within interest income (or as an offset to interest income) on the Statement of operations. The effect of this change for the year ended July 31, 2004 was to increase net investment income per share by $0.02 on all share classes and decrease net realized and unrealized gain (loss) from investment activities per share by $0.02 on all share classes, and increase the ratio of net investment income by 0.17% on Class P.

2  Calculated using the average shares method.

3  Amount represents less than $0.005 per share.

4  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

5  Annualized.

6  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
226


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227


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Municipal Fixed Income Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class A  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 12.22     $ 12.27     $ 12.49     $ 12.56     $ 12.56     $ 12.70    
Net investment income     0.20 1      0.40 1      0.39 1      0.40 1      0.39       0.45    
Net realized and unrealized gains (losses) from
investment activities		     0.33       (0.05 )     (0.22 )     (0.07 )     0.00 2      (0.14 )  
Net increase from operations     0.53       0.35       0.17       0.33       0.39       0.31    
Dividends from net investment income     (0.21 )     (0.40 )     (0.39 )     (0.40 )     (0.39 )     (0.45 )  
Net asset value, end of period   $ 12.54     $ 12.22     $ 12.27     $ 12.49     $ 12.56     $ 12.56    
Total investment return3      4.35 %     2.84 %     1.42 %     2.61 %     3.09 %     2.42 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 94,243     $ 90,219     $ 99,169     $ 115,286     $ 131,888     $ 153,966    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by manager		     0.93 %4      1.01 %     0.99 %     0.96 %     0.96 %     0.93 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     1.00 %4      1.02 %     1.04 %     1.03 %     1.08 %     1.06 %  
Net investment income to average net assets     3.34 %4      3.21 %     3.19 %     3.12 %     3.03 %     3.49 %  
Portfolio turnover     13 %     48 %     27 %     35 %     46 %     42 %  

 

1  Calculated using the average shares method.

2  Amount represents less than $0.005 per share.

3  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder could pay on Portfolio distributions or the redemption of Portfolio shares.

4  Annualized.

See accompanying notes to financial statements
228


    Class B  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 12.23     $ 12.27     $ 12.49     $ 12.56     $ 12.56     $ 12.70    
Net investment income     0.16 1      0.30 1      0.29 1      0.30 1      0.30       0.35    
Net realized and unrealized gains (losses) from
investment activities		     0.32       (0.04 )     (0.21 )     (0.07 )     (0.01 )     (0.14 )  
Net increase from operations     0.48       0.26       0.08       0.23       0.29       0.21    
Dividends from net investment income     (0.16 )     (0.30 )     (0.30 )     (0.30 )     (0.29 )     (0.35 )  
Net asset value, end of period   $ 12.55     $ 12.23     $ 12.27     $ 12.49     $ 12.56     $ 12.56    
Total investment return3      3.95 %     2.10 %     0.65 %     1.82 %     2.31 %     1.65 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 160     $ 259     $ 985     $ 2,665     $ 4,861     $ 7,870    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by manager		     1.68 %4      1.76 %     1.74 %     1.71 %     1.71 %     1.68 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     1.82 %4      1.78 %     1.80 %     1.79 %     1.83 %     1.80 %  
Net investment income to average net assets     2.56 %4      2.44 %     2.43 %     2.37 %     2.28 %     2.75 %  
Portfolio turnover     13 %     48 %     27 %     35 %     46 %     42 %  

 


229


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Municipal Fixed Income Investments
(continued)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class C  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 12.22     $ 12.27     $ 12.49     $ 12.56     $ 12.56     $ 12.70    
Net investment income     0.18 1      0.33 1      0.33 1      0.33 1      0.32       0.38    
Net realized and unrealized gains (losses) from
investment activities		     0.32       (0.05 )     (0.22 )     (0.07 )     0.00 2      (0.14 )  
Net increase from operations     0.50       0.28       0.11       0.26       0.32       0.24    
Dividends from net investment income     (0.18 )     (0.33 )     (0.33 )     (0.33 )     (0.32 )     (0.38 )  
Net asset value, end of period   $ 12.54     $ 12.22     $ 12.27     $ 12.49     $ 12.56     $ 12.56    
Total investment return3      4.09 %     2.32 %     0.91 %     2.07 %     2.56 %     1.88 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 14,782     $ 14,777     $ 17,315     $ 21,291     $ 25,191     $ 28,882    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by manager		     1.43 %4      1.51 %     1.50 %     1.48 %     1.48 %     1.45 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     1.51 %4      1.53 %     1.55 %     1.55 %     1.59 %     1.56 %  
Net investment income to average net assets     2.84 %4      2.71 %     2.68 %     2.61 %     2.51 %     2.96 %  
Portfolio turnover     13 %     48 %     27 %     35 %     46 %     42 %  

 

1  Calculated using the average shares method.

2  Amount represents less than $0.005 per share.

3  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder could pay on Portfolio distributions or the redemption of Portfolio shares.

4  Annualized.

See accompanying notes to financial statements
230


    Class Y  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 12.23     $ 12.28     $ 12.49     $ 12.56     $ 12.56     $ 12.70    
Net investment income     0.22 1      0.43 1      0.43 1      0.42 1      0.41       0.48    
Net realized and unrealized gains (losses) from
investment activities		     0.32       (0.05 )     (0.22 )     (0.07 )     0.00 2      (0.14 )  
Net increase from operations     0.54       0.38       0.21       0.35       0.41       0.34    
Dividends from net investment income     (0.22 )     (0.43 )     (0.42 )     (0.42 )     (0.41 )     (0.48 )  
Net asset value, end of period   $ 12.55     $ 12.23     $ 12.28     $ 12.49     $ 12.56     $ 12.56    
Total investment return3      4.47 %     3.09 %     1.75 %     2.83 %     3.29 %     2.65 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 140     $ 137     $ 176     $ 186     $ 200     $ 194    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by manager		     0.68 %4      0.76 %     0.75 %     0.74 %     0.74 %     0.69 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     0.80 %4      0.83 %     0.84 %     0.85 %     0.90 %     0.85 %  
Net investment income to average net assets     3.59 %4      3.46 %     3.44 %     3.35 %     3.26 %     3.73 %  
Portfolio turnover     13 %     48 %     27 %     35 %     46 %     42 %  

 


231


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Municipal Fixed Income Investments
(concluded)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class P  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 12.22     $ 12.27     $ 12.49     $ 12.56     $ 12.56     $ 12.70    
Net investment income     0.22 1      0.43 1      0.42 1      0.42 1      0.41       0.47    
Net realized and unrealized gains (losses)
from investment activities		     0.32       (0.05 )     (0.22 )     (0.07 )     0.00 2      (0.14 )  
Net increase from operations     0.54       0.38       0.20       0.35       0.41       0.33    
Dividends from net investment income     (0.22 )     (0.43 )     (0.42 )     (0.42 )     (0.41 )     (0.47 )  
Net asset value, end of period   $ 12.54     $ 12.22     $ 12.27     $ 12.49     $ 12.56     $ 12.56    
Total investment return3      4.48 %     3.10 %     1.66 %     2.81 %     3.29 %     2.64 %  
Ratios/supplemental data:  
Net assets, end of period (000s)   $ 235,573     $ 194,370     $ 140,320     $ 111,908     $ 94,445     $ 69,938    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by manager		     0.68 %4      0.76 %     0.76 %     0.76 %     0.76 %     0.72 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     0.78 %4      0.81 %     0.84 %     0.82 %     0.88 %     0.84 %  
Net investment income to average net assets     3.59 %4      3.47 %     3.43 %     3.33 %     3.24 %     3.69 %  
Portfolio turnover     13 %     48 %     27 %     35 %     46 %     42 %  

 

1  Calculated using the average shares method.

2  Amount represents less than $0.005 per share.

3  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder could pay on Portfolio distributions or the redemption of Portfolio shares.

4  Annualized.

See accompanying notes to financial statements
232


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233


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Global Fixed Income Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class A  
    For the six
months ended
January 31, 20081 		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 11.38     $ 11.20     $ 11.76     $ 11.74     $ 11.78     $ 10.91    
Net investment income2      0.10       0.25       0.25       0.24       0.22       0.27    
Net realized and unrealized gains (losses) from
investment activities		     1.14       0.23       (0.06 )     0.52       0.70       0.92    
Net increase from operations     1.24       0.48       0.19       0.76       0.92       1.19    
Dividends from net investment income     (0.77 )     (0.30 )     (0.57 )     (0.72 )     (0.96 )     (0.32 )  
Distributions from net realized gains from
investment activities		     —       —       (0.18 )     (0.02 )     —       —    
Total dividends and distributions     (0.77 )     (0.30 )     (0.75 )     (0.74 )     (0.96 )     (0.32 )  
Net asset value, end of period   $ 11.85     $ 11.38     $ 11.20     $ 11.76     $ 11.74     $ 11.78    
Total investment return3      11.30 %     4.36 %     1.86 %     6.33 %     7.76 %     11.01 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 117,720     $ 111,910     $ 124,045     $ 144,325     $ 159,669     $ 176,124    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by manager		     1.25 %4      1.37 %     1.37 %     1.37 %5      1.36 %     1.33 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     1.35 %4      1.37 %     1.40 %     1.41 %5      1.45 %     1.45 %  
Net investment income to average net assets     1.77 %4      2.23 %     2.25 %     1.98 %     1.83 %     2.32 %  
Portfolio turnover     46 %     111 %     175 %     260 %     244 %     274 %  

 

1  Effective August 23, 2007, Rogge Global Partners plc ("Rogge") assumed the role of sole manager of the investment advisory function of this Portfolio. Prior to August 23, 2007, the investment advisory function for this Portfolio was performed by Rogge and Fischer Francis Trees & Watts, Inc., who were each responsible for a portion of the Portfolio.

2  Calculated using the average shares method.

3  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

4  Annualized.

5  Includes 0.01% of interest expense related to reverse repurchase agreement activity during the year ended July 31, 2005.

See accompanying notes to financial statements
234


    Class B  
    For the six
months ended
January 31, 20081 		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 11.40     $ 11.22     $ 11.78     $ 11.76     $ 11.80     $ 10.93    
Net investment income2      0.06       0.16       0.17       0.15       0.13       0.18    
Net realized and unrealized gains (losses) from
investment activities		     1.15       0.24       (0.06 )     0.52       0.70       0.92    
Net increase from operations     1.21       0.40       0.11       0.67       0.83       1.10    
Dividends from net investment income     (0.73 )     (0.22 )     (0.49 )     (0.63 )     (0.87 )     (0.23 )  
Distributions from net realized gains from
investment activities		     —       —       (0.18 )     (0.02 )     —       —    
Total dividends and distributions     (0.73 )     (0.22 )     (0.67 )     (0.65 )     (0.87 )     (0.23 )  
Net asset value, end of period   $ 11.88     $ 11.40     $ 11.22     $ 11.78     $ 11.76     $ 11.80    
Total investment return3      10.95 %     3.57 %     1.08 %     5.52 %     6.94 %     10.16 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 717     $ 723     $ 878     $ 1,450     $ 1,907     $ 2,233    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by manager		     2.00 %4      2.13 %     2.12 %     2.12 %5      2.11 %     2.09 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     2.12 %4      2.13 %     2.16 %     2.17 %5      2.21 %     2.21 %  
Net investment income to average net assets     1.03 %4      1.47 %     1.50 %     1.22 %     1.08 %     1.56 %  
Portfolio turnover     46 %     111 %     175 %     260 %     244 %     274 %  

 


235


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Global Fixed Income Investments
(continued)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class C  
    For the six
months ended
January 31, 20081 		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 11.38     $ 11.20     $ 11.76     $ 11.74     $ 11.78     $ 10.91    
Net investment income2      0.08       0.20       0.20       0.18       0.16       0.21    
Net realized and unrealized gains (losses) from
investment activities		     1.13       0.23       (0.06 )     0.53       0.70       0.92    
Net increase from operations     1.21       0.43       0.14       0.71       0.86       1.13    
Dividends from net investment income     (0.74 )     (0.25 )     (0.52 )     (0.67 )     (0.90 )     (0.26 )  
Distributions from net realized gains from
investment activities		     —       —       (0.18 )     (0.02 )     —       —    
Total dividends and distributions     (0.74 )     (0.25 )     (0.70 )     (0.69 )     (0.90 )     (0.26 )  
Net asset value, end of period   $ 11.85     $ 11.38     $ 11.20     $ 11.76     $ 11.74     $ 11.78    
Total investment return3      11.02 %     3.86 %     1.35 %     5.82 %     7.24 %     10.43 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 6,984     $ 6,347     $ 7,499     $ 8,736     $ 8,754     $ 9,633    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and
recoupments to manager		     1.75 %4      1.85 %     1.87 %     1.86 %5      1.85 %     1.83 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     1.83 %4      1.85 %     1.89 %     1.92 %5      1.93 %     1.97 %  
Net investment income to average net assets     1.27 %4      1.74 %     1.75 %     1.50 %     1.34 %     1.84 %  
Portfolio turnover     46 %     111 %     175 %     260 %     244 %     274 %  

 

1  Effective August 23, 2007, Rogge Global Partners plc ("Rogge") assumed the role of sole manager of the investment advisory function of this Portfolio. Prior to August 23, 2007, the investment advisory function for this Portfolio was performed by Rogge and Fischer Francis Trees & Watts, Inc., who were each responsible for a portion of the Portfolio.

2  Calculated using the average shares method.

3  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

4  Annualized.

5  Includes 0.01% of interest expense related to reverse repurchase agreement activity during the year ended July 31, 2005.

6  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
236


    Class Y  
    For the six
months ended
January 31, 20081 		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 11.36     $ 11.19     $ 11.75     $ 11.73     $ 11.78     $ 10.91    
Net investment income2      0.12       0.29       0.29       0.28       0.26       0.30    
Net realized and unrealized gains (losses) from
investment activities		     1.15       0.22       (0.06 )     0.52       0.69       0.92    
Net increase from operations     1.27       0.51       0.23       0.80       0.95       1.22    
Dividends from net investment income     (0.79 )     (0.34 )     (0.61 )     (0.76 )     (1.00 )     (0.35 )  
Distributions from net realized gains from
investment activities		     —       —       (0.18 )     (0.02 )     —       —    
Total dividends and distributions     (0.79 )     (0.34 )     (0.79 )     (0.78 )     (1.00 )     (0.35 )  
Net asset value, end of period   $ 11.84     $ 11.36     $ 11.19     $ 11.75     $ 11.73     $ 11.78    
Total investment return3      11.60 %     4.67 %     2.21 %     6.67 %     8.01 %     11.34 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 8,375     $ 7,113     $ 7,077     $ 9,285     $ 9,673     $ 12,429    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and
recoupments to manager		     0.91 %4      1.03 %6      1.05 %6      1.06 %5,6      1.05 %     1.04 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     0.97 %4      1.03 %     1.05 %     1.06 %5      1.08 %     1.09 %  
Net investment income to average net assets     2.11 %4      2.58 %6      2.57 %6      2.30 %6      2.14 %     2.61 %  
Portfolio turnover     46 %     111 %     175 %     260 %     244 %     274 %  

 


237


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Global Fixed Income Investments
(concluded)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class P  
    For the six
months ended
January 31, 20081 		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 11.38     $ 11.20     $ 11.76     $ 11.74     $ 11.78     $ 10.91    
Net investment income2      0.12       0.28       0.28       0.27       0.25       0.30    
Net realized and unrealized gains (losses)
from investment activities		     1.14       0.23       (0.06 )     0.52       0.70       0.92    
Net increase from operations     1.26       0.51       0.22       0.79       0.95       1.22    
Dividends from net investment income     (0.79 )     (0.33 )     (0.60 )     (0.75 )     (0.99 )     (0.35 )  
Distributions from net realized gains
from investment activities		     —       —       (0.18 )     (0.02 )     —       —    
Total dividends and distributions     (0.79 )     (0.33 )     (0.78 )     (0.77 )     (0.99 )     (0.35 )  
Net asset value, end of period   $ 11.85     $ 11.38     $ 11.20     $ 11.76     $ 11.74     $ 11.78    
Total investment return3      11.44 %     4.62 %     2.11 %     6.58 %     8.02 %     11.31 %  
Ratios/supplemental data:  
Net assets, end of period (000s)   $ 532,457     $ 440,787     $ 349,676     $ 274,572     $ 203,450     $ 139,300    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements by
manager		     1.00 %4      1.13 %     1.13 %     1.14 %4      1.13 %     1.07 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     1.16 %4      1.22 %     1.27 %     1.29 %4      1.32 %     1.30 %  
Net investment income to average net assets     2.02 %4      2.49 %     2.49 %     2.25 %     2.07 %     2.57 %  
Portfolio turnover     46 %     111 %     175 %     260 %     244 %     274 %  

 

1  Effective August 23, 2007, Rogge Global Partners plc ("Rogge") assumed the role of sole manager of the investment advisory function of this Portfolio. Prior to August 23, 2007, the investment advisory function for this Portfolio was performed by Rogge and Fischer Francis Trees & Watts, Inc., who were each responsible for a portion of the Portfolio.

2  Calculated using the average shares method.

3  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

4  Annualized.

5  Includes 0.01% of interest expense related to reverse repurchase agreement activity during the year ended July 31, 2005.

See accompanying notes to financial statements
238


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239



UBS PACE Select Advisors Trust

Financial highlights

UBS PACE High Yield Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class A   Class Y  
    For the six
months ended
January 31,
2008
(unaudited)		   For the year
ended July 31,
2007 		  For the period
ended July 31,
20061  		   For the period
ended July 24,
20062,3 		  
Net asset value, beginning of period   $ 9.60     $ 9.81     $ 9.95     $ 10.00    
Net investment income5      0.31       0.60       0.11       0.17    
Net realized and unrealized losses from investment activities     (0.13 )     (0.23 )     (0.10 )     (0.22 )  
Net increase (decrease) from operations     0.18       0.37       0.01       (0.05 )  
Dividends from net investment income     (0.31 )     (0.58 )     (0.15 )     (0.14 )  
Distributions from net realized gains from investment activities     (0.01 )     —       —       —    
Total dividends and distributions     (0.32 )     (0.58 )     (0.15 )     (0.14 )  
Net asset value, end of period   $ 9.46     $ 9.60     $ 9.81     $ 9.81    
Total investment return6      1.96 %     3.66 %     0.15 %     (0.45 )%  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 1,012     $ 741     $ 345     $ —    
Expenses to average net assets, net of fee waivers and/or expense
reimbursements by manager		     1.35 %7      1.35 %     1.35 %7      1.10 %7   
Expenses to average net assets, before fee waivers and/or expense
reimbursements by manager		     1.45 %7      1.96 %     7.56 %7      2.32 %7   
Net investment income to average net assets     6.43 %7      5.96 %     6.04 %7      5.94 %7   
Portfolio turnover     12 %     26 %     39 %     39 %  

 

1  For the period May 1, 2006 (commencement of issuance) through July 31, 2006.

2  For the period April 3, 2006 (commencement of issuance) through July 24, 2006.

3  At July 25, 2006 there were no shares outstanding.

4  For the period April 10, 2006 (commencement of issuance) through July 31, 2006.

5  Calculated using the average shares method.

6  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges, redemption fees or program fees; results would be lower if they were included. Total investment return for periods of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

7  Annualized.

See accompanying notes to financial statements
240


    Class P  
    For the six
months ended
January 31,
2008
(unaudited)		   For the year
ended July 31,
2007 		  For the period
ended July 31,
20064  		  
Net asset value, beginning of period   $ 9.61     $ 9.81     $ 9.95    
Net investment income5      0.32       0.62       0.14    
Net realized and unrealized losses from investment activities     (0.13 )     (0.22 )     (0.09 )  
Net increase (decrease) from operations     0.19       0.40       0.05    
Dividends from net investment income     (0.32 )     (0.60 )     (0.19 )  
Distributions from net realized gains from investment activities     (0.01 )     —       —    
Total dividends and distributions     (0.33 )     (0.60 )     (0.19 )  
Net asset value, end of period   $ 9.47     $ 9.61     $ 9.81    
Total investment return6      1.97 %     3.96 %     0.56 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 120,654     $ 87,171     $ 11,103    
Expenses to average net assets, net of fee waivers and/or expense
reimbursements by manager		     1.10 %7      1.10 %     1.10 %7   
Expenses to average net assets, before fee waivers and/or expense
reimbursements by manager		     1.22 %7      1.72 %     8.16 %7   
Net investment income to average net assets     6.69 %7      6.24 %     6.34 %7   
Portfolio turnover     12 %     26 %     39 %  

 


241


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Large Co Value Equity Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class A  
    For the six
months ended
January 31, 2008 		  For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 22.41     $ 22.35     $ 20.64     $ 17.56     $ 15.39     $ 14.83    
Net investment income     0.12 1      0.23 1      0.22 1      0.22 1      0.18       0.15    
Net realized and unrealized gains (losses) from
investment activities		     (1.06 )     2.80       2.16       3.06       2.13       0.55    
Net increase (decrease) from operations     (0.94 )     3.03       2.38       3.28       2.31       0.70    
Dividends from net investment income     (0.11 )     (0.23 )     (0.20 )     (0.20 )     (0.14 )     (0.14 )  
Distributions from net realized gains from
investment activities		     (2.54 )     (2.74 )     (0.47 )     —       —       —    
Total dividends and distributions     (2.65 )     (2.97 )     (0.67 )     (0.20 )     (0.14 )     (0.14 )  
Net asset value, end of period   $ 18.82     $ 22.41     $ 22.35     $ 20.64     $ 17.56     $ 15.39    
Total investment return2      (4.62 )%     13.94 %     11.77 %     18.78 %     15.06 %     4.82 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 260,305     $ 291,942     $ 292,632     $ 306,916     $ 305,359     $ 296,936    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and
recoupments to manager		     1.08 %3      1.08 %     1.14 %4      1.15 %4      1.21 %     1.21 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     1.22 %3      1.21 %     1.27 %     1.27 %     1.31 %     1.33 %  
Net investment income to average net assets     1.08 %3      0.99 %     1.03 %4      1.16 %4      0.98 %     1.01 %  
Portfolio turnover     66 %     105 %     95 %     74 %     73 %     72 %  

 

1  Calculated using the average shares method.

2  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

3  Annualized.

4  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
242


    Class B  
    For the six
months ended
January 31, 2008 		  For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 22.43     $ 22.34     $ 20.62     $ 17.50     $ 15.34     $ 14.75    
Net investment income     0.01 1      0.04 1      0.03 1      0.07 1      0.02       0.02    
Net realized and unrealized gains (losses) from
investment activities		     (1.05 )     2.79       2.16       3.05       2.14       0.57    
Net increase (decrease) from operations     (1.04 )     2.83       2.19       3.12       2.16       0.59    
Dividends from net investment income     —       —       —       —       —       —    
Distributions from net realized gains from
investment activities		     (2.54 )     (2.74 )     (0.47 )     —       —       —    
Total dividends and distributions     (2.54 )     (2.74 )     (0.47 )     —       —       —    
Net asset value, end of period   $ 18.85     $ 22.43     $ 22.34     $ 20.62     $ 17.50     $ 15.34    
Total investment return2      (5.16 )%     13.00 %     10.77 %     17.83 %     14.08 %     4.00 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 1,318     $ 1,872     $ 5,289     $ 8,554     $ 23,273     $ 58,523    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and
recoupments to manager		     2.02 %3      1.98 %     2.00 %     2.02 %4      2.04 %4      2.01 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     2.21 %3      2.11 %     2.13 %     2.13 %     2.14 %     2.13 %  
Net investment income to average net assets     0.13 %3      0.18 %     0.16 %     0.36 %4      0.16 %4      0.21 %  
Portfolio turnover     66 %     105 %     95 %     74 %     73 %     72 %  

 


243


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Large Co Value Equity Investments
(continued)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class C  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 22.36     $ 22.29     $ 20.58     $ 17.50     $ 15.34     $ 14.75    
Net investment income     0.03 1      0.05 1      0.05 1      0.07 1      0.03       0.03    
Net realized and unrealized gains (losses) from
investment activities		     (1.05 )     2.80       2.15       3.05       2.14       0.57    
Net increase (decrease) from operations     (1.02 )     2.85       2.20       3.12       2.17       0.60    
Dividends from net investment income     —       (0.04 )     (0.02 )     (0.04 )     (0.01 )     (0.01 )  
Distributions from net realized gains from
investment activities		     (2.54 )     (2.74 )     (0.47 )     —       —       —    
Total dividends and distributions     (2.54 )     (2.78 )     (0.49 )     (0.04 )     (0.01 )     (0.01 )  
Net asset value, end of period   $ 18.80     $ 22.36     $ 22.29     $ 20.58     $ 17.50     $ 15.34    
Total investment return2      (5.03 )%     13.11 %     10.86 %     17.87 %     14.14 %     4.04 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 30,160     $ 35,110     $ 36,374     $ 40,113     $ 41,701     $ 46,437    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and
recoupments to manager		     1.87 %3      1.86 %     1.93 %4      1.94 %4      2.00 %4      2.00 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     2.01 %3      2.00 %     2.06 %     2.06 %     2.10 %     2.12 %  
Net investment income to average net assets     0.29 %3      0.21 %     0.24 %4      0.38 %4      0.19 %4      0.22 %  
Portfolio turnover     66 %     105 %     95 %     74 %     73 %     72 %  

 

1  Calculated using the average shares method.

2  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

3  Annualized.

4  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
244


    Class Y  
    For the six
months ended
January 31, 2008 		  For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 22.51     $ 22.45     $ 20.70     $ 17.60     $ 15.41     $ 14.85    
Net investment income     0.16 1      0.30 1      0.30 1      0.28 1      0.24       0.20    
Net realized and unrealized gains (losses) from
investment activities		     (1.06 )     2.82       2.17       3.07       2.14       0.55    
Net increase (decrease) from operations     (0.90 )     3.12       2.47       3.35       2.38       0.75    
Dividends from net investment income     (0.19 )     (0.32 )     (0.25 )     (0.25 )     (0.19 )     (0.19 )  
Distributions from net realized gains from
investment activities		     (2.54 )     (2.74 )     (0.47 )     —       —       —    
Total dividends and distributions     (2.73 )     (3.06 )     (0.72 )     (0.25 )     (0.19 )     (0.19 )  
Net asset value, end of period   $ 18.88     $ 22.51     $ 22.45     $ 20.70     $ 17.60     $ 15.41    
Total investment return2      (4.53 )%     14.36 %     12.20 %     19.17 %     15.49 %     5.19 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 40,010     $ 45,177     $ 43,234     $ 42,046     $ 37,336     $ 36,448    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and
recoupments to manager		     0.74 %3      0.74 %     0.77 %     0.83 %4      0.85 %4      0.87 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     0.88 %3      0.88 %     0.90 %     0.95 %     0.95 %     0.97 %  
Net investment income to average net assets     1.42 %3      1.32 %     1.40 %     1.48 %4      1.33 %4      1.35 %  
Portfolio turnover     66 %     105 %     95 %     74 %     73 %     72 %  

 


245


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Large Co Value Equity Investments
(concluded)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class P  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 22.44     $ 22.38     $ 20.66     $ 17.58     $ 15.40     $ 14.84    
Net investment income     0.15 1      0.28 1      0.28 1      0.26 1      0.19       0.17    
Net realized and unrealized gains (losses)
from investment activities		     (1.06 )     2.82       2.16       3.07       2.18       0.57    
Net increase (decrease) from operations     (0.91 )     3.10       2.44       3.33       2.37       0.74    
Dividends from net investment income     (0.17 )     (0.30 )     (0.25 )     (0.25 )     (0.19 )     (0.18 )  
Distributions from net realized gains from
investment activities		     (2.54 )     (2.74 )     (0.47 )     —       —       —    
Total dividends and distributions     (2.71 )     (3.04 )     (0.72 )     (0.25 )     (0.19 )     (0.18 )  
Net asset value, end of period   $ 18.82     $ 22.44     $ 22.38     $ 20.66     $ 17.58     $ 15.40    
Total investment return2      (4.53 )%     14.26 %     12.07 %     19.03 %     15.40 %     5.09 %  
Ratios/supplemental data:  
Net assets, end of period (000s)   $ 1,314,377     $ 1,306,425     $ 1,078,221     $ 837,901     $ 598,934     $ 400,188    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by and recoupments to manager		     0.83 %3      0.83 %     0.86 %     0.91 %4      0.96 %     0.97 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     0.97 %3      0.96 %     0.99 %     1.03 %     1.06 %     1.07 %  
Net investment income to average net assets     1.33 %3      1.23 %     1.30 %     1.38 %4      1.21 %     1.24 %  
Portfolio turnover     66 %     105 %     95 %     74 %     73 %     72 %  

 

1  Calculated using the average shares method.

2  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

3  Annualized.

4  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
246


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247


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Large Co Growth Equity Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class A  
    For the six
months ended
January 31, 20081 		   For the years ended July 31,  
    (unaudited)   20072    2006   2005   2004   20033   
Net asset value, beginning of period   $ 18.18     $ 15.75     $ 15.83     $ 13.50     $ 12.78     $ 11.49    
Net investment income (loss)4      0.01       (0.02 )     (0.03 )     (0.02 )     (0.07 )     (0.05 )  
Net realized and unrealized gains (losses) from
investment activities		     (0.35 )     2.45       (0.05 )     2.35       0.79       1.34    
Net increase (decrease) from operations     (0.34 )     2.43       (0.08 )     2.33       0.72       1.29    
Distributions from net realized gains from
investment activities		     (0.48 )     —       —       —       —       —    
Net asset value, end of period   $ 17.36     $ 18.18     $ 15.75     $ 15.83     $ 13.50     $ 12.78    
Total investment return5      (2.05 )%     15.43 %     (0.51 )%     17.26 %     5.63 %     11.23 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 78,995     $ 80,334     $ 82,201     $ 95,264     $ 98,710     $ 109,326    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements by
and recoupments to manager		     1.19 %6      1.20 %     1.23 %     1.28 %7      1.30 %7      1.25 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     1.24 %6      1.25 %     1.28 %     1.32 %     1.36 %     1.40 %  
Net investment income (loss) to average
net assets		     0.10 %6      (0.10 )%     (0.18 )%     (0.11 )%7      (0.48 )%7      (0.46 )%  
Portfolio turnover     68 %     95 %     64 %     79 %     82 %     107 %  

 

1  A portion of the investment advisory function for this Portfolio was transferred to Delaware Management Company on December 5, 2007. Marsico Capital Management, LLC, SSgA Funds Management, Inc. and Wellington Management Company LLP continue to provide a portion of the investment advisory function.

2  A portion of the investment advisory function for this Portfolio was transferred from GE Asset Management, Inc. to Wellington Management Company, LLP on June 1, 2007. Marsico Capital Management, LLC and SSgA Funds Management, Inc. continue to provide a portion of the investment advisory function.

3  A portion of the investment advisory function for this Portfolio was transferred from Alliance Capital Management L.P. to GE Asset Management, Inc. and Marsico Capital Management, LLC on September 16, 2002. SSgA Funds Management, Inc. continues to provide a portion of the investment advisory function.

4  Calculated using the average shares method.

5  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

6  Annualized.

7  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
248


    Class B  
    For the six
months ended
January 31, 20081 		   For the years ended July 31,  
    (unaudited)   20072    2006   2005   2004   20033   
Net asset value, beginning of period   $ 17.22     $ 15.05     $ 15.25     $ 13.12     $ 12.53     $ 11.36    
Net investment income (loss)4      (0.07 )     (0.15 )     (0.16 )     (0.13 )     (0.18 )     (0.15 )  
Net realized and unrealized gains (losses) from
investment activities		     (0.33 )     2.32       (0.04 )     2.26       0.77       1.32    
Net increase (decrease) from operations     (0.40 )     2.17       (0.20 )     2.13       0.59       1.17    
Distributions from net realized gains from
investment activities		     (0.48 )     —       —       —       —       —    
Net asset value, end of period   $ 16.34     $ 17.22     $ 15.05     $ 15.25     $ 13.12     $ 12.53    
Total investment return5      (2.52 )%     14.42 %     (1.31 )%     16.24 %     4.71 %     10.30 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 432     $ 643     $ 1,450     $ 3,185     $ 6,038     $ 10,503    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements by
and recoupments to manager		     2.05 %6      2.05 %     2.10 %     2.16 %     2.16 %     2.09 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     2.30 %6      2.24 %     2.27 %     2.27 %     2.27 %     2.31 %  
Net investment income (loss) to average
net assets		     (0.77 )%6      (0.90 )%     (1.09 )%     (0.98 )%     (1.35 )%     (1.29 )%  
Portfolio turnover     68 %     95 %     64 %     79 %     82 %     107 %  

 


249


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Large Co Growth Equity Investments
(continued)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class C  
    For the six
months ended
January 31, 20081 		   For the years ended July 31,  
    (unaudited)   20072    2006   2005   2004   20033   
Net asset value, beginning of period   $ 17.26     $ 15.08     $ 15.27     $ 13.14     $ 12.54     $ 11.36    
Net investment income (loss)4      (0.07 )     (0.16 )     (0.16 )     (0.13 )     (0.17 )     (0.14 )  
Net realized and unrealized gains (losses) from
investment activities		     (0.33 )     2.34       (0.03 )     2.26       0.77       1.32    
Net increase (decrease) from operations     (0.40 )     2.18       (0.19 )     2.13       0.60       1.18    
Dividends from net investment income     —       —       —       —       —       —    
Distributions from net realized gains from
investment activities		     (0.48 )     —       —       —       —       —    
Total dividends and distributions     (0.48 )     —       —       —       —       —    
Net asset value, end of period   $ 16.38     $ 17.26     $ 15.08     $ 15.27     $ 13.14     $ 12.54    
Total investment return5      (2.51 )%     14.46 %     (1.24 )%     16.21 %     4.78 %     10.39 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 6,677     $ 7,488     $ 7,586     $ 9,944     $ 11,152     $ 12,598    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and recoupments
to manager		     2.05 %6,7      2.05 %7      2.07 %7      2.11 %7      2.11 %     2.05 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     2.09 %6      2.09 %     2.12 %     2.15 %     2.19 %     2.24 %  
Net investment income (loss) to average net assets     (0.75 )%6,7      (0.95 )%7      (1.03 )%7      (0.94 )%7      (1.29 )%     (1.26 )%  
Portfolio turnover     68 %     95 %     64 %     79 %     82 %     107 %  

 

1  A portion of the investment advisory function for this Portfolio was transferred to Delaware Management Company on December 5, 2007. Marsico Capital Management, LLC, SSgA Funds Management, Inc. and Wellington Management Company LLP continue to provide a portion of the investment advisory function.

2  A portion of the investment advisory function for this Portfolio was transferred from GE Asset Management, Inc. to Wellington Management Company, LLP on June 1, 2007. Marsico Capital Management, LLC and SSgA Funds Management, Inc. continue to provide a portion of the investment advisory function.

3  A portion of the investment advisory function for this Portfolio was transferred from Alliance Capital Management L.P. to GE Asset Management, Inc. and Marsico Capital Management, LLC on September 16, 2002. SSgA Funds Management, Inc. continues to provide a portion of the investment advisory function.

4  Calculated using the average shares method.

5  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

6  Annualized.

7  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
250


    Class Y  
    For the six
months ended
January 31, 20081 		   For the years ended July 31,  
    (unaudited)   20072    2006   2005   2004   20033   
Net asset value, beginning of period   $ 18.54     $ 16.05     $ 16.09     $ 13.67     $ 12.88     $ 11.54    
Net investment income (loss)4      0.05       0.05       0.03       0.04       (0.01 )     (0.01 )  
Net realized and unrealized gains (losses) from
investment activities		     (0.36 )     2.49       (0.04 )     2.38       0.80       1.35    
Net increase (decrease) from operations     (0.31 )     2.54       (0.01 )     2.42       0.79       1.34    
Dividends from net investment income     (0.05 )     (0.05 )     (0.03 )     —       —       —    
Distributions from net realized gains from
investment activities		     (0.48 )     —       —       —       —       —    
Total dividends and distributions     (0.53 )     (0.05 )     (0.03 )     —       —       —    
Net asset value, end of period   $ 17.70     $ 18.54     $ 16.05     $ 16.09     $ 13.67     $ 12.88    
Total investment return5      (1.93 )%     15.90 %     (0.10 )%     17.70 %     6.13 %     11.61 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 24,781     $ 26,125     $ 22,668     $ 25,014     $ 22,647     $ 23,829    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and recoupments
to manager		     0.80 %6      0.82 %     0.85 %7      0.85 %     0.89 %     0.90 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     0.85 %6      0.86 %     0.89 %     0.90 %     0.93 %     0.98 %  
Net investment income (loss) to average net assets     0.49 %6      0.27 %     0.20 %7      0.30 %     (0.07 )%     (0.11 )%  
Portfolio turnover     68 %     95 %     64 %     79 %     82 %     107 %  

 


251


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Large Co Growth Equity Investments
(concluded)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class P  
    For the six
months ended
January 31, 20081 		   For the years ended July 31,  
    (unaudited)   20072    2006   2005   2004   20033   
Net asset value, beginning of period   $ 18.45     $ 15.97     $ 16.02     $ 13.62     $ 12.85     $ 11.53    
Net investment income (loss)4      0.04       0.03       0.02       0.03       (0.02 )     (0.03 )  
Net realized and unrealized gains (losses)
from investment activities		     (0.35 )     2.49       (0.05 )     2.37       0.79       1.35    
Net increase (decrease) from operations     (0.31 )     2.52       (0.03 )     2.40       0.77       1.32    
Dividends from net investment income     (0.04 )     (0.04 )     (0.02 )     —       —       —    
Distributions from net realized gains from
investment activities		     (0.48 )     —       —       —       —       —    
Total dividends and distributions     (0.52 )     (0.04 )     (0.02 )     —       —       —    
Net asset value, end of period   $ 17.62     $ 18.45     $ 15.97     $ 16.02     $ 13.62     $ 12.85    
Total investment return5      (1.90 )%     15.76 %     (0.20 )%     17.62 %     5.99 %     11.45 %  
Ratios/supplemental data:  
Net assets, end of period (000s)   $ 1,285,598     $ 1,231,468     $ 945,358     $ 780,687     $ 546,373     $ 389,805    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements by
and recoupments to manager		     0.90 %6      0.91 %     0.95 %7      0.97 %7      1.00 %     1.01 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     0.95 %6      0.95 %     1.00 %     1.01 %     1.05 %     1.10 %  
Net investment income (loss) to average
net assets		     0.40 %6      0.17 %     0.12 %7      0.18 %7      (0.18 )%     (0.22 )%  
Portfolio turnover     68 %     95 %     64 %     79 %     82 %     107 %  

 

1  A portion of the investment advisory function for this Portfolio was transferred to Delaware Management Company on December 5, 2007. Marsico Capital Management, LLC, SSgA Funds Management, Inc. and Wellington Management Company LLP continue to provide a portion of the investment advisory function.

2  A portion of the investment advisory function for this Portfolio was transferred from GE Asset Management, Inc. to Wellington Management Company, LLP on June 1, 2007. Marsico Capital Management, LLC and SSgA Funds Management, Inc. continue to provide a portion of the investment advisory function.

3  A portion of the investment advisory function for this Portfolio was transferred from Alliance Capital Management L.P. to GE Asset Management, Inc. and Marsico Capital Management, LLC on September 16, 2002. SSgA Funds Management, Inc. continues to provide a portion of the investment advisory function.

4  Calculated using the average shares method.

5  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

6  Annualized.

7  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
252


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253



UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Small/Medium Co Value Equity Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class A  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   20061    2005   2004   2003  
Net asset value, beginning of period   $ 19.29     $ 17.07     $ 21.80     $ 19.63     $ 16.49     $ 16.10    
Net investment income (loss)2      0.04       0.01       (0.03 )     (0.05 )     (0.07 )     (0.04 )  
Net realized and unrealized gains (losses) from
investment activities		     (2.14 )     2.97       (0.82 )     4.27       3.21       1.57    
Net increase (decrease) from operations     (2.10 )     2.98       (0.85 )     4.22       3.14       1.53    
Dividends from net investment income     (0.00 )3      —       —       —       —       —    
Distributions from net realized gains from
investment activities		     (2.07 )     (0.76 )     (3.88 )     (2.05 )     —       (1.14 )  
Total dividends and distributions     (2.07 )     (0.76 )     (3.88 )     (2.05 )     —       (1.14 )  
Net asset value, end of period   $ 15.12     $ 19.29     $ 17.07     $ 21.80     $ 19.63     $ 16.49    
Total investment return4      (11.27 )%     17.70 %     (4.10 )%     22.35 %     19.04 %     10.88 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 40,481     $ 47,845     $ 45,583     $ 55,299     $ 50,786     $ 44,758    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and
recoupments to manager		     1.28 %5      1.27 %     1.30 %     1.33 %6      1.36 %6      1.36 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     1.28 %5      1.27 %     1.30 %     1.33 %     1.36 %     1.40 %  
Net investment income (loss) to average net assets     0.43 %5      0.05 %     (0.16 )%     (0.27 )%6      (0.38 )%6      (0.27 )%  
Portfolio turnover     21 %     59 %     81 %     55 %     36 %     32 %  

 

1  A portion of the investment advisory function for this Portfolio was transferred from ICM Asset Management, Inc. to Metropolitan West Capital Management, LLC and Opus Capital Management, Inc. on October 1, 2005. Ariel Capital Management LLC continues to provide a portion of the investment advisory function.

2  Calculated using the average shares method.

3  Amount of dividend paid represents less then $0.005 per share.

4  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

5  Annualized.

6  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
254


    Class B  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   20061    2005   2004   2003  
Net asset value, beginning of period   $ 18.06     $ 16.15     $ 21.00     $ 19.12     $ 16.19     $ 15.95    
Net investment income (loss)2      (0.04 )     (0.14 )     (0.18 )     (0.21 )     (0.21 )     (0.16 )  
Net realized and unrealized gains (losses) from
investment activities		     (1.99 )     2.81       (0.79 )     4.14       3.14       1.54    
Net increase (decrease) from operations     (2.03 )     2.67       (0.97 )     3.93       2.93       1.38    
Dividends from net investment income     —       —       —       —       —       —    
Distributions from net realized gains from
investment activities		     (2.07 )     (0.76 )     (3.88 )     (2.05 )     —       (1.14 )  
Total dividends and distributions     (2.07 )     (0.76 )     (3.88 )     (2.05 )     —       (1.14 )  
Net asset value, end of period   $ 13.96     $ 18.06     $ 16.15     $ 21.00     $ 19.12     $ 16.19    
Total investment return4      (11.68 )%     16.77 %     (4.93 )%     21.38 %     18.10 %     10.00 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 638     $ 1,006     $ 1,859     $ 4,373     $ 6,683     $ 10,877    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and
recoupments to manager		     2.16 %5      2.13 %     2.14 %6      2.14 %6      2.16 %6      2.17 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     2.20 %5      2.13 %     2.14 %     2.14 %     2.16 %     2.20 %  
Net investment income (loss) to average net assets     (0.49 )%5      (0.80 )%     (0.97 )%6      (1.09 )%6      (1.19 )%6      (1.08 )%  
Portfolio turnover     21 %     59 %     81 %     55 %     36 %     32 %  

 


255


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Small/Medium Co Value Equity Investments
(continued)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class C  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   20061    2005   2004   2003  
Net asset value, beginning of period   $ 18.12     $ 16.19     $ 21.03     $ 19.13     $ 16.19     $ 15.95    
Net investment income (loss)2      (0.03 )     (0.13 )     (0.17 )     (0.20 )     (0.21 )     (0.15 )  
Net realized and unrealized gains (losses) from
investment activities		     (2.00 )     2.82       (0.79 )     4.15       3.15       1.53    
Net increase (decrease) from operations     (2.03 )     2.69       (0.96 )     3.95       2.94       1.38    
Dividends from net investment income     —       —       —       —       —       —    
Distributions from net realized gains from
investment activities		     (2.07 )     (0.76 )     (3.88 )     (2.05 )     —       (1.14 )  
Total dividends and distributions     (2.07 )     (0.76 )     (3.88 )     (2.05 )     —       (1.14 )  
Net asset value, end of period   $ 14.02     $ 18.12     $ 16.19     $ 21.03     $ 19.13     $ 16.19    
Total investment return3      (11.63 )%     16.85 %     (4.86 )%     21.48 %     18.16 %     10.00 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 9,685     $ 11,964     $ 11,552     $ 14,515     $ 13,548     $ 12,759    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by and recoupments to manager		     2.05 %4      2.04 %     2.08 %     2.08 %5      2.13 %5      2.16 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     2.05 %4      2.04 %     2.08 %     2.08 %     2.13 %     2.19 %  
Net investment income (loss) to average net assets     (0.34 )%4      (0.71 )%     (0.93 )%     (1.03 )%5      (1.15 )%5      (1.07 )%  
Portfolio turnover     21 %     59 %     81 %     55 %     36 %     32 %  

 

1  A portion of the investment advisory function for this Portfolio was transferred from ICM Asset Management, Inc. to Metropolitan West Capital Management, LLC and Opus Capital Management, Inc. on October 1, 2005. Ariel Capital Management LLC continues to provide a portion of the investment advisory function.

2  Calculated using the average shares method.

3  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

4  Annualized.

5  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
256


    Class Y  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   20061    2005   2004   2003  
Net asset value, beginning of period   $ 19.73     $ 17.39     $ 22.07     $ 19.78     $ 16.56     $ 16.13    
Net investment income (loss)2      0.07       0.07       0.03       0.02       (0.01 )     (0.01 )  
Net realized and unrealized gains (losses) from
investment activities		     (2.19 )     3.03       (0.83 )     4.32       3.23       1.58    
Net increase (decrease) from operations     (2.12 )     3.10       (0.80 )     4.34       3.22       1.57    
Dividends from net investment income     (0.06 )     —       —       —       —       —    
Distributions from net realized gains from
investment activities		     (2.07 )     (0.76 )     (3.88 )     (2.05 )     —       (1.14 )  
Total dividends and distributions     (2.13 )     (0.76 )     (3.88 )     (2.05 )     —       (1.14 )  
Net asset value, end of period   $ 15.48     $ 19.73     $ 17.39     $ 22.07     $ 19.78     $ 16.56    
Total investment return3      (11.12 )%     18.07 %     (3.78 )%     22.82 %     19.44 %     11.12 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 4,466     $ 5,980     $ 4,311     $ 4,994     $ 3,754     $ 1,813    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by and recoupments to manager		     0.93 %4      0.94 %     0.97 %     0.98 %5      1.04 %5      1.14 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     0.93 %4      0.94 %     0.97 %     0.98 %     1.04 %     1.16 %  
Net investment income (loss) to average net assets     0.77 %4      0.37 %     0.17 %     0.08 %5      (0.05 )%5      (0.05 )%  
Portfolio turnover     21 %     59 %     81 %     55 %     36 %     32 %  

 


257


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Small/Medium Co Value Equity Investments
(concluded)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class P  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 19.60     $ 17.31     $ 22.02     $ 19.78     $ 16.58     $ 16.14    
Net investment income (loss)2      0.05       0.03       (0.00 )3      (0.02 )     (0.03 )     (0.00 )3   
Net realized and unrealized gains (losses) from
investment activities		     (2.17 )     3.02       (0.83 )     4.31       3.23       1.58    
Net increase (decrease) from operations     (2.12 )     3.05       (0.83 )     4.29       3.20       1.58    
Dividends from net investment income     (0.03 )     —       —       —       —       —    
Distributions from net realized gains from
investment activities		     (2.07 )     (0.76 )     (3.88 )     (2.05 )     —       (1.14 )  
Total dividends and distributions     (2.10 )     (0.76 )     (3.88 )     (2.05 )     —       (1.14 )  
Net asset value, end of period   $ 15.38     $ 19.60     $ 17.31     $ 22.02     $ 19.78     $ 16.58    
Total investment return4      (11.23 )%     17.86 %     (3.95 )%     22.55 %     19.30 %     11.18 %  
Ratios/supplemental data:  
Net assets, end of period (000s)   $ 454,692     $ 483,873     $ 387,514     $ 366,083     $ 277,254     $ 204,028    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements by
and recoupments to manager		     1.16 %5      1.16 %6      1.16 %     1.16 %     1.16 %     1.11 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     1.17 %5      1.16 %     1.18 %     1.17 %     1.20 %     1.25 %  
Net investment income (loss) to average
net assets		     0.56 %5      0.16 %6      (0.03 )%     (0.10 )%     (0.17 )%     (0.01 )%  
Portfolio turnover     21 %     59 %     81 %     55 %     36 %     32 %  

 

1  A portion of the investment advisory function for this Portfolio was transferred from ICM Asset Management, Inc. to Metropolitan West Capital Management, LLC and Opus Capital Management, Inc. on October 1, 2005. Ariel Capital Management LLC continues to provide a portion of the investment advisory function.

2  Calculated using the average shares method.

3  Amount of loss represents less than $0.005 per share.

4  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

5  Annualized.

6  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
258


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259


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Small/Medium Co Growth Equity Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class A  
    For the six
months ended
January 31, 2008 		  For the years ended July 31,  
    (unaudited)   20071    20062    2005   2004   2003  
Net asset value, beginning of period   $ 17.30     $ 14.45     $ 17.52     $ 14.08     $ 13.08     $ 10.84    
Net investment loss3      (0.06 )     (0.12 )     (0.12 )     (0.14 )     (0.13 )     (0.10 )  
Net realized and unrealized gains (losses) from
investment activities		     (1.06 )     3.40       (0.58 )     3.64       1.13       2.34    
Net increase (decrease) from operations     (1.12 )     3.28       (0.70 )     3.50       1.00       2.24    
Distributions from net realized gains from
investment activities		     (2.60 )     (0.43 )     (2.37 )     (0.06 )     —       —    
Net asset value, end of period   $ 13.58     $ 17.30     $ 14.45     $ 17.52     $ 14.08     $ 13.08    
Total investment return4      (7.86 )%     23.00 %     (4.22 )%     24.91 %     7.65 %     20.66 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 43,671     $ 49,562     $ 48,824     $ 60,328     $ 60,239     $ 63,435    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by and recoupments to manager		     1.29 %5      1.30 %     1.32 %     1.33 %6      1.37 %6      1.38 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     1.29 %5      1.30 %     1.32 %     1.33 %     1.37 %     1.41 %  
Net investment loss to average net assets     (0.69 )%5      (0.77 )%     (0.78 )%     (0.92 )%6      (0.88 )%6      (0.87 )%  
Portfolio turnover     56 %     109 %     134 %     60 %     85 %     50 %  

 

1  A portion of the investment advisory function for this Portfolio was transferred from Delaware Management Co., Inc. to Copper Rock Capital Partners, LLC on March 1, 2007.

2  A portion of the investment advisory function for this Portfolio was transferred from Delaware Management Co., Inc. to ForstmannLeff Associates, LLC and Riverbridge Partners, LLC on October 1, 2005.

3  Calculated using the average shares method.

4  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

5  Annualized.

6  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
260


    Class B  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   20071    20062    2005   2004   2003  
Net asset value, beginning of period   $ 16.22     $ 13.68     $ 16.86     $ 13.68     $ 12.82     $ 10.71    
Net investment loss3      (0.12 )     (0.23 )     (0.24 )     (0.28 )     (0.24 )     (0.19 )  
Net realized and unrealized gains (losses) from
investment activities		     (0.98 )     3.20       (0.57 )     3.52       1.10       2.30    
Net increase (decrease) from operations     (1.10 )     2.97       (0.81 )     3.24       0.86       2.11    
Distributions from net realized gains from
investment activities		     (2.60 )     (0.43 )     (2.37 )     (0.06 )     —       —    
Net asset value, end of period   $ 12.52     $ 16.22     $ 13.68     $ 16.86     $ 13.68     $ 12.82    
Total investment return4      (8.27 )%     22.02 %     (5.13 )%     23.73 %     6.71 %     19.70 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 209     $ 310     $ 696     $ 1,915     $ 2,836     $ 5,334    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by and recoupments to manager		     2.13 %5      2.13 %     2.19 %     2.27 %     2.23 %     2.24 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     2.42 %5      2.30 %     2.27 %     2.28 %     2.24 %     2.30 %  
Net investment loss to average net assets     (1.53 )%5      (1.58 )%     (1.62 )%     (1.85 )%     (1.74 )%     (1.72 )%  
Portfolio turnover     56 %     109 %     134 %     60 %     85 %     50 %  

 


261


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Small/Medium Co Growth Equity Investments
(continued)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class C  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   20071    20062    2005   2004   2003  
Net asset value, beginning of period   $ 16.30     $ 13.74     $ 16.90     $ 13.70     $ 12.83     $ 10.71    
Net investment loss3      (0.12 )     (0.24 )     (0.24 )     (0.26 )     (0.24 )     (0.18 )  
Net realized and unrealized gains (losses)
from investment activities		     (0.97 )     3.23       (0.55 )     3.52       1.11       2.30    
Net increase (decrease) from operations     (1.09 )     2.99       (0.79 )     3.26       0.87       2.12    
Distributions from net realized gains from
investment activities		     (2.60 )     (0.43 )     (2.37 )     (0.06 )     —       —    
Net asset value, end of period   $ 12.61     $ 16.30     $ 13.74     $ 16.90     $ 13.70     $ 12.83    
Total investment return4      (8.22 )%     22.14 %     (4.98 )%     23.84 %     6.78 %     19.79 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 5,729     $ 6,712     $ 6,709     $ 8,337     $ 8,850     $ 9,459    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by and recoupments to manager		     2.07 %5      2.08 %     2.11 %     2.15 %6      2.16 %6      2.18 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     2.07 %5      2.08 %     2.11 %     2.15 %     2.16 %     2.22 %  
Net investment loss to average net assets     (1.47 )%5      (1.55 )%     (1.56 )%     (1.74 )%6      (1.68 )%6      (1.67 )%  
Portfolio turnover     56 %     109 %     134 %     60 %     85 %     50 %  

 

1  A portion of the investment advisory function for this Portfolio was transferred from Delaware Management Co., Inc. to Copper Rock Capital Partners, LLC on March 1, 2007.

2  A portion of the investment advisory function for this Portfolio was transferred from Delaware Management Co., Inc. to ForstmannLeff Associates, LLC and Riverbridge Partners, LLC on October 1, 2005.

3  Calculated using the average shares method.

4  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

5  Annualized.

6  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
262


    Class Y  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   20071    20062    2005   2004   2003  
Net asset value, beginning of period   $ 17.71     $ 14.72     $ 17.74     $ 14.21     $ 13.15     $ 10.87    
Net investment loss3      (0.03 )     (0.07 )     (0.07 )     (0.09 )     (0.07 )     (0.08 )  
Net realized and unrealized gains (losses)
from investment activities		     (1.09 )     3.49       (0.58 )     3.68       1.13       2.36    
Net increase (decrease) from operations     (1.12 )     3.42       (0.65 )     3.59       1.06       2.28    
Distributions from net realized gains from
investment activities		     (2.60 )     (0.43 )     (2.37 )     (0.06 )     —       —    
Net asset value, end of period   $ 13.99     $ 17.71     $ 14.72     $ 17.74     $ 14.21     $ 13.15    
Total investment return4      (7.66 )%     23.54 %     (3.86 )%     25.32 %     8.06 %     20.97 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 6,027     $ 6,022     $ 4,279     $ 4,057     $ 2,980     $ 1,372    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by and recoupments to manager		     0.91 %5      0.93 %     0.95 %     0.96 %     0.97 %6      1.22 %6   
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     0.91 %5      0.93 %     0.95 %     0.96 %     0.97 %     1.16 %  
Net investment loss to average net assets     (0.32 )%5      (0.41 )%     (0.41 )%     (0.55 )%     (0.50 )%6      (0.69 )%6   
Portfolio turnover     56 %     109 %     134 %     60 %     85 %     50 %  

 


263


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Small/Medium Co Growth Equity Investments
(concluded)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class P  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   20071    20062    2005   2004   2003  
Net asset value, beginning of period   $ 17.61     $ 14.67     $ 17.72     $ 14.22     $ 13.18     $ 10.88    
Net investment loss3      (0.05 )     (0.10 )     (0.10 )     (0.11 )     (0.10 )     (0.06 )  
Net realized and unrealized gains (losses)
from investment activities		     (1.08 )     3.47       (0.58 )     3.67       1.14       2.36    
Net increase (decrease) from operations     (1.13 )     3.37       (0.68 )     3.56       1.04       2.30    
Distributions from net realized gains from
investment activities		     (2.60 )     (0.43 )     (2.37 )     (0.06 )     —       —    
Net asset value, end of period   $ 13.88     $ 17.61     $ 14.67     $ 17.72     $ 14.22     $ 13.18    
Total investment return4      (7.77 )%     23.28 %     (4.05 )%     25.08 %     7.89 %     21.14 %  
Ratios/supplemental data:  
Net assets, end of period (000s)   $ 480,675     $ 500,929     $ 380,197     $ 356,839     $ 262,516     $ 216,911    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by manager		     1.13 %5      1.13 %     1.13 %     1.13 %     1.13 %     1.09 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     1.14 %5      1.16 %     1.18 %     1.18 %     1.17 %     1.22 %  
Net investment loss to average net assets     (0.53 )%5      (0.60 )%     (0.59 )%     (0.72 )%     (0.65 )%     (0.57 )%  
Portfolio turnover     56 %     109 %     134 %     60 %     85 %     50 %  

 

1  A portion of the investment advisory function for this Portfolio was transferred from Delaware Management Co., Inc. to Copper Rock Capital Partners, LLC on March 1, 2007.

2  A portion of the investment advisory function for this Portfolio was transferred from Delaware Management Co., Inc. to ForstmannLeff Associates, LLC and Riverbridge Partners, LLC on October 1, 2005.

3  Calculated using the average shares method.

4  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

5  Annualized.

See accompanying notes to financial statements
264


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265


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE International Equity Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class A  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   20051    20041    2003  
Net asset value, beginning of period   $ 21.27     $ 19.03     $ 15.46     $ 12.96     $ 10.37     $ 10.08    
Net investment income (loss)     0.09 2      0.29 2      0.30 2      0.21 2      0.04 2      0.09    
Net realized and unrealized gains (losses)
from investment activities		     (1.47 )     4.09       3.50       2.35       2.60       0.21    
Net increase (decrease) from operations     (1.38 )     4.38       3.80       2.56       2.64       0.30    
Dividends from net investment income     (0.28 )     (0.35 )     (0.23 )     (0.06 )     (0.05 )     (0.01 )  
Distributions from net realized gains from
investment activities		     (2.24 )     (1.79 )     —       —       —       —    
Total dividends and distributions     (2.52 )     (2.14 )     (0.23 )     (0.06 )     (0.05 )     (0.01 )  
Net asset value, end of period   $ 17.37     $ 21.27     $ 19.03     $ 15.46     $ 12.96     $ 10.37    
Total investment return4      (7.33 )%     24.14 %     24.77 %     19.78 %     25.47 %     2.95 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 118,284     $ 130,966     $ 111,153     $ 97,046     $ 92,590     $ 90,630    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by and recoupments to manager		     1.36 %5      1.38 %     1.47 %6      1.55 %6      1.59 %6      1.58 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     1.36 %5      1.38 %     1.47 %     1.55 %     1.59 %     1.62 %  
Net investment income (loss) to average net assets     0.87 %5      1.42 %     1.73 %6      1.45 %6      0.33 %6      0.92 %  
Portfolio turnover     30 %     61 %     52 %     39 %     117 %     88 %  

 

1  A portion of the investment advisory function for this Portfolio was transferred to J.P. Morgan Investment Management, Inc. and Delaware International Advisors Ltd. on April 1, 2004. Delaware International Advisors Ltd. changed its name to Mondrian Investment Partners Ltd. on September 24, 2004. Martin Currie, Inc. continues to provide a portion of the investment advisory function.

2  Calculated using the average shares method.

3  Amount of loss represents less than $0.005 per share.

4  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investments return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

5  Annualized.

6  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
266


    Class B  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   20051    20041    2003  
Net asset value, beginning of period   $ 20.80     $ 18.60     $ 15.07     $ 12.71     $ 10.23     $ 10.05    
Net investment income (loss)     (0.00 )2,3      0.07 2      0.12 2      0.05 2      (0.09 )2      (0.03 )  
Net realized and unrealized gains (losses)
from investment activities		     (1.45 )     4.04       3.43       2.31       2.57       0.21    
Net increase (decrease) from operations     (1.45 )     4.11       3.55       2.36       2.48       0.18    
Dividends from net investment income     (0.06 )     (0.12 )     (0.02 )     —       —       —    
Distributions from net realized gains from
investment activities		     (2.24 )     (1.79 )     —       —       —       —    
Total dividends and distributions     (2.30 )     (1.91 )     (0.02 )     —       —       —    
Net asset value, end of period   $ 17.05     $ 20.80     $ 18.60     $ 15.07     $ 12.71     $ 10.23    
Total investment return4      (7.75 )%     23.03 %     23.60 %     18.57 %     24.24 %     1.79 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 398     $ 489     $ 740     $ 831     $ 976     $ 1,235    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by and recoupments to manager		     2.25 %5      2.27 %     2.45 %6      2.55 %6      2.63 %     2.58 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     2.25 %5      2.27 %     2.45 %     2.55 %     2.64 %     2.65 %  
Net investment income (loss) to average net assets     (0.01 )%5      0.37 %     0.73 %6      0.39 %6      (0.73 )%     (0.18 )%  
Portfolio turnover     30 %     61 %     52 %     39 %     117 %     88 %  

 


267


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE International Equity Investments (continued)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class C  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   20051    20041    2003  
Net asset value, beginning of period   $ 20.81     $ 18.65     $ 15.16     $ 12.76     $ 10.25     $ 10.04    
Net investment income (loss)     0.01 2      0.12 2      0.14 2      0.09 2      (0.06 )2      0.00 3   
Net realized and unrealized gains (losses)
from investment activities		     (1.44 )     4.01       3.44       2.31       2.57       0.21    
Net increase (decrease) from operations     (1.43 )     4.13       3.58       2.40       2.51       0.21    
Dividends from net investment income     (0.11 )     (0.18 )     (0.09 )     —       —       —    
Distributions from net realized gains from
investment activities		     (2.24 )     (1.79 )     —       —       —       —    
Total dividends and distributions     (2.35 )     (1.97 )     (0.09 )     —       —       —    
Net asset value, end of period   $ 17.03     $ 20.81     $ 18.65     $ 15.16     $ 12.76     $ 10.25    
Total investment return4      (7.70 )%     23.13 %     23.68 %     18.81 %     24.49 %     2.09 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 7,852     $ 8,856     $ 8,168     $ 8,099     $ 7,576     $ 7,598    
Expenses to average net assets net of fee waivers
and/or expense reimbursements by and recoupments
to manager		     2.17 %5      2.18 %     2.32 %6      2.35 %6      2.44 %6      2.41 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     2.17 %5      2.18 %     2.32 %     2.35 %     2.44 %     2.48 %  
Net investment income (loss) to average net assets     0.06 %5      0.60 %     0.84 %6      0.64 %6      (0.53 )%6      0.05 %  
Portfolio turnover     30 %     61 %     52 %     39 %     117 %     88 %  

 

1  A portion of the investment advisory function for this Portfolio was transferred to J.P. Morgan Investment Management, Inc. and Delaware International Advisors Ltd. on April 1, 2004. Delaware International Advisors Ltd. changed its name to Mondrian Investment Partners Ltd. on September 24, 2004. Martin Currie, Inc. continues to provide a portion of the investment advisory function.

2  Calculated using the average shares method.

3  Amount represents less than $0.005 per share.

4  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

5  Annualized.

6  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
268


    Class Y  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   20051    20041    2003  
Net asset value, beginning of period   $ 21.30     $ 19.06     $ 15.49     $ 12.98     $ 10.37     $ 10.09    
Net investment income (loss)     0.13 2      0.36 2      0.38 2      0.28 2      0.10 2      0.13    
Net realized and unrealized gains (losses)
from investment activities		     (1.46 )     4.10       3.49       2.36       2.60       0.19    
Net increase (decrease) from operations     (1.33 )     4.46       3.87       2.64       2.70       0.32    
Dividends from net investment income     (0.36 )     (0.43 )     (0.30 )     (0.13 )     (0.09 )     (0.04 )  
Distributions from net realized gains from
investment activities		     (2.24 )     (1.79 )     —       —       —       —    
Total dividends and distributions     (2.60 )     (2.22 )     (0.30 )     (0.13 )     (0.09 )     (0.04 )  
Net asset value, end of period   $ 17.37     $ 21.30     $ 19.06     $ 15.49     $ 12.98     $ 10.37    
Total investment return4      (7.12 )%     24.55 %     25.25 %     20.35 %     26.12 %     3.24 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 57,196     $ 65,377     $ 53,388     $ 45,107     $ 39,474     $ 33,813    
Expenses to average net assets net of fee waivers
and/or expense reimbursements by and recoupments
to manager		     1.01 %5      1.02 %     1.06 %     1.11 %     1.15 %     1.21 %6   
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     1.01 %5      1.02 %     1.06 %     1.11 %     1.15 %     1.19 %  
Net investment income (loss) to average net assets     1.22 %5      1.78 %     2.14 %     1.93 %     0.80 %     1.25 %6   
Portfolio turnover     30 %     61 %     52 %     39 %     117 %     88 %  

 


269


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE International Equity Investments (concluded)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class P  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   20051    20041    2003  
Net asset value, beginning of period   $ 21.27     $ 19.03     $ 15.46     $ 12.96     $ 10.36     $ 10.08    
Net investment income     0.12 2      0.35 2      0.37 2      0.27 2      0.09 2      0.11    
Net realized and unrealized gains (losses)
from investment activities		     (1.47 )     4.09       3.48       2.34       2.59       0.20    
Net increase (decrease) from operations     (1.35 )     4.44       3.85       2.61       2.68       0.31    
Dividends from net investment income     (0.34 )     (0.41 )     (0.28 )     (0.11 )     (0.08 )     (0.03 )  
Distributions from net realized gains from
investment activities		     (2.24 )     (1.79 )     —       —       —       —    
Total dividends and distributions     (2.58 )     (2.20 )     (0.28 )     (0.11 )     (0.08 )     (0.03 )  
Net asset value, end of period   $ 17.34     $ 21.27     $ 19.03     $ 15.46     $ 12.96     $ 10.36    
Total investment return3      (7.21 )%     24.48 %     25.17 %     20.16 %     25.93 %     3.10 %  
Ratios/supplemental data:  
Net assets, end of period (000s)   $ 1,141,855     $ 1,173,137     $ 900,603     $ 625,091     $ 425,956     $ 250,224    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements by
and recoupments to manager		     1.10 %4      1.12 %     1.17 %     1.24 %5      1.30 %     1.35 %5   
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     1.10 %4      1.12 %     1.17 %     1.24 %     1.30 %     1.31 %  
Net investment income to average net assets     1.12 %4      1.70 %     2.09 %     1.83 %5      0.73 %     1.21 %5   
Portfolio turnover     30 %     61 %     52 %     39 %     117 %     88 %  

 

1  A portion of the investment advisory function for this Portfolio was transferred to J.P. Morgan Investment Management, Inc. and Delaware International Advisors Ltd. on April 1, 2004. Delaware International Advisors Ltd. changed its name to Mondrian Investment Partners Ltd. on September 24, 2004. Martin Currie, Inc. continues to provide a portion of the investment advisory function.

2  Calculated using the average shares method.

3  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

4  Annualized.

5  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
270


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271



UBS PACE Select Advisors Trust

Financial highlights

UBS PACE International Emerging Markets Equity Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class A  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   20051    2004   20031   
Net asset value, beginning of period   $ 23.61     $ 18.30     $ 15.13     $ 10.55     $ 8.88     $ 7.74    
Net investment income (loss)2      0.11       0.21       0.21       0.15       0.02       0.07    
Net realized and unrealized gains from
investment activities		     0.14       8.02       3.10       4.43       1.65       1.07    
Net increase from operations     0.25       8.23       3.31       4.58       1.67       1.14    
Dividends from net investment income     (0.27 )     (0.22 )     (0.14 )     (0.00 )3      —       —    
Distributions from net realized gains from
investment activities		     (3.64 )     (2.70 )     —       —       —       —    
Total dividends and distributions     (3.91 )     (2.92 )     (0.14 )     (0.00 )3      —       —    
Net asset value, end of period   $ 19.95     $ 23.61     $ 18.30     $ 15.13     $ 10.55     $ 8.88    
Total investment return4      (0.15 )%     49.16 %     21.97 %     43.42 %     18.81 %     14.73 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 31,139     $ 31,216     $ 21,651     $ 16,691     $ 11,965     $ 9,810    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and
recoupments to manager		     1.84 %5      1.89 %     1.97 %6      2.09 %6      2.13 %6      2.18 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     1.84 %5      1.89 %     1.97 %     2.09 %     2.13 %     2.36 %  
Net investment income (loss) to average net assets     0.95 %5      1.05 %     1.20 %6      1.13 %6      0.20 %6      0.91 %  
Portfolio turnover     26 %     54 %     84 %     119 %     128 %     214 %  

 

1  Investment advisory functions for this Portfolio were transferred from Schroder Investment Management North America Inc. to Baring International Investment Limited and Gartmore Global Partners on August 2, 2002. Mondrian Investment Partners Ltd. replaced Baring International Investments Ltd. on September 28, 2004. Gartmore Global Partners continues to provide a portion of the investment advisory function.

2  Calculated using the average shares method.

3  Amount of dividend paid represents less than $0.005 per share.

4  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

5  Annualized.

6  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
272


    Class B  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   20051    2004   20031   
Net asset value, beginning of period   $ 22.61     $ 17.60     $ 14.55     $ 10.25     $ 8.70     $ 7.66    
Net investment income (loss)2      0.02       0.04       0.05       0.01       (0.09 )     (0.04 )  
Net realized and unrealized gains from
investment activities		     0.13       7.69       3.00       4.29       1.64       1.08    
Net increase from operations     0.15       7.73       3.05       4.30       1.55       1.04    
Dividends from net investment income     (0.07 )     (0.02 )     —       —       —       —    
Distributions from net realized gains from
investment activities		     (3.64 )     (2.70 )     —       —       —       —    
Total dividends and distributions     (3.71 )     (2.72 )     —       —       —       —    
Net asset value, end of period   $ 19.05     $ 22.61     $ 17.60     $ 14.55     $ 10.25     $ 8.70    
Total investment return4      (0.59 )%     47.95 %     20.96 %     41.95 %     17.82 %     13.58 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 447     $ 535     $ 522     $ 690     $ 857     $ 2,235    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and
recoupments to manager		     2.65 %5      2.69 %     2.86 %6      3.02 %6      3.03 %6      2.91 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     2.65 %5      2.69 %     2.86 %     3.02 %     3.03 %     3.18 %  
Net investment income (loss) to average net assets     0.19 %5      0.20 %     0.29 %6      0.11 %6      (0.90 )%6      (0.51 )%  
Portfolio turnover     26 %     54 %     84 %     119 %     128 %     214 %  

 


273


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE International Emerging Markets Equity Investments

(continued)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class C  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   20051    2004   20031   
Net asset value, beginning of period   $ 22.61     $ 17.62     $ 14.58     $ 10.25     $ 8.69     $ 7.66    
Net investment income (loss)2      0.02       0.06       0.07       0.04       (0.07 )     (0.01 )  
Net realized and unrealized gains from
investment activities		     0.13       7.69       3.00       4.29       1.63       1.04    
Net increase from operations     0.15       7.75       3.07       4.33       1.56       1.03    
Dividends from net investment income     (0.11 )     (0.06 )     (0.03 )     —       —       —    
Distributions from net realized gains from
investment activities		     (3.64 )     (2.70 )     —       —       —       —    
Total dividends and distributions     (3.75 )     (2.76 )     (0.03 )     —       —       —    
Net asset value, end of period   $ 19.01     $ 22.61     $ 17.62     $ 14.58     $ 10.25     $ 8.69    
Total investment return3      (0.52 )%     48.03 %     21.06 %     42.24 %     17.95 %     13.45 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 7,401     $ 7,461     $ 5,484     $ 4,625     $ 3,768     $ 3,752    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and recoupments
to manager		     2.59 %4      2.64 %     2.78 %5      2.86 %5      2.91 %5      2.96 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     2.59 %4      2.64 %     2.78 %     2.86 %     2.91 %     3.15 %  
Net investment income (loss) to average net assets     0.21 %4      0.30 %     0.40 %5      0.35 %5      (0.64 )%5      (0.17 )%  
Portfolio turnover     26 %     54 %     84 %     119 %     128 %     214 %  

 

1  Investment advisory functions for this Portfolio were transferred from Schroder Investment Management North America Inc. to Baring International Investment Limited and Gartmore Global Partners on August 2, 2002. Mondrian Investment Partners Ltd. replaced Baring International Investments Ltd. on September 28, 2004. Gartmore Global Partners continues to provide a portion of the investment advisory function.

2  Calculated using the average shares method.

3  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

4  Annualized.

5  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
274


    Class Y  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   20051    2004   20031   
Net asset value, beginning of period   $ 23.95     $ 18.53     $ 15.30     $ 10.66     $ 8.94     $ 7.77    
Net investment income (loss)2      0.16       0.30       0.30       0.23       0.09       0.16    
Net realized and unrealized gains from
investment activities		     0.13       8.12       3.13       4.45       1.63       1.01    
Net increase from operations     0.29       8.42       3.43       4.68       1.72       1.17    
Dividends from net investment income     (0.35 )     (0.30 )     (0.20 )     (0.04 )     —       —    
Distributions from net realized gains from
investment activities		     (3.64 )     (2.70 )     —       —       —       —    
Total dividends and distributions     (3.99 )     (3.00 )     (0.20 )     (0.04 )     —       —    
Net asset value, end of period   $ 20.25     $ 23.95     $ 18.53     $ 15.30     $ 10.66     $ 8.94    
Total investment return3      0.05 %     49.74 %     22.52 %     43.97 %     19.24 %     15.06 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 30,985     $ 29,576     $ 20,201     $ 14,518     $ 5,017     $ 1,380    
Expenses to average net assets, net of fee waivers
and/or expense reimbursements by and recoupments
to manager		     1.48 %4      1.52 %     1.56 %     1.67 %     1.71 %5      1.96 %  
Expenses to average net assets, before fee waivers
and/or expense reimbursements by manager		     1.48 %4      1.52 %     1.56 %     1.67 %     1.71 %     2.01 %  
Net investment income (loss) to average net assets     1.28 %4      1.44 %     1.64 %     1.72 %     0.78 %5      2.03 %  
Portfolio turnover     26 %     54 %     84 %     119 %     128 %     214 %  

 


275


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE International Emerging Markets Equity Investments

(concluded)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class P  
    For the six
months ended
January 31, 2008		   For the years ended July 31,  
    (unaudited)   2007   2006   20051    2004   20031   
Net asset value, beginning of period   $ 23.84     $ 18.44     $ 15.25     $ 10.64     $ 8.94     $ 7.79    
Net investment income2      0.13       0.23       0.21       0.17       0.04       0.07    
Net realized and unrealized gains from
investment activities		     0.13       8.09       3.13       4.45       1.66       1.08    
Net increase from operations     0.26       8.32       3.34       4.62       1.70       1.15    
Dividends from net investment income     (0.29 )     (0.22 )     (0.15 )     (0.01 )     —       —    
Distributions from net realized gains from
investment activities		     (3.64 )     (2.70 )     —       —       —       —    
Total dividends and distributions     (3.93 )     (2.92 )     (0.15 )     (0.01 )     —       —    
Net asset value, end of period   $ 20.17     $ 23.84     $ 18.44     $ 15.25     $ 10.64     $ 8.94    
Total investment return3      (0.14 )%     49.31 %     21.98 %     43.46 %     19.02 %     14.76 %  
Ratios/supplemental data:  
Net assets, end of period (000s)   $ 369,718     $ 374,910     $ 259,321     $ 199,403     $ 117,746     $ 78,462    
Expenses to average net assets, net of fee
waivers and/or expense reimbursements by
and recoupments to manager		     1.76 %4      1.82 %     1.98 %5      2.00 %     2.00 %     1.84 %  
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager		     1.76 %4      1.82 %     1.98 %     2.05 %     2.08 %     2.30 %  
Net investment income to average net assets     1.04 %4      1.13 %     1.20 %5      1.28 %     0.37 %     0.98 %  
Portfolio turnover     26 %     54 %     84 %     119 %     128 %     214 %  

 

1  Investment advisory functions for this Portfolio were transferred from Schroder Investment Management North America Inc. to Baring International Investment Limited and Gartmore Global Partners on August 2, 2002. Mondrian Investment Partners Ltd. replaced Baring International Investments Ltd. on September 28, 2004. Gartmore Global Partners continues to provide a portion of the investment advisory function.

2  Calculated using the average shares method.

3  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

4  Annualized.

5  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
276


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277


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Global Real Estate Securities Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class A   Class C  
    For the six
months ended
January 31,
2008
(unaudited)		   For the
period ended
July 31,
20071 		   For the six
months ended
January 31,
2008
(unaudited)		   For the
period ended
July 31,
20071 		  
Net asset value, beginning of period   $ 9.54     $ 9.84     $ 9.49     $ 9.84    
Net investment income5      0.09       0.09       0.06       0.05    
Net realized and unrealized gain (losses) from investment activities     (0.64 )     (0.35 )     (0.65 )     (0.36 )  
Net increase (decrease) from operations     (0.55 )     (0.26 )     (0.59 )     (0.31 )  
Dividends from net investment income     (0.27 )     (0.04 )     (0.20 )     (0.04 )  
Distributions from net realized gains from investment activities     (0.03 )     —       (0.03 )     —    
Total dividends and distributions     (0.30 )     (0.04 )     (0.23 )     (0.04 )  
Net asset value, end of period   $ 8.69     $ 9.54     $ 8.67     $ 9.49    
Total investment return6      (5.81 )%     (2.63 )%     (6.14 )%     (3.16 )%  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 7,590     $ 4,199     $ 279     $ 343    
Expenses to average net assets, net of fee waivers and/or
expense reimbursements by manager		     1.45 %7      1.45 %7      2.20 %7      2.20 %7   
Expenses to average net assets, before fee waivers and/or
expense reimbursements by manager		     1.73 %7      3.06 %7      2.60 %7      3.78 %7   
Net investment income to average net assets     1.96 %7      1.47 %7      1.21 %7      0.84 %7   
Portfolio turnover     27 %     38 %     27 %     38 %  

 

1  For the period December 18, 2006 (commencement of issuance) through July 31, 2007.

2  For the period November 30, 2006 (commencement of issuance) through February 15, 2007.

3  At February 16, 2007 there were no shares outstanding.

4  For the period January 22, 2007 (commencement of issuance) through July 31, 2007.

5  Calculated using the average shares method.

6  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges, redemption fees or program fees; results would be lower if they were included. Total investment return for periods of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

7  Annualized.

See accompanying notes to financial statements
278


    Class Y   Class P  
    For the
period ended
February 15,
20072,3 		   For the six
months ended
January 31,
2008
(unaudited)		   For the
period ended
July 31,
20074 		  
Net asset value, beginning of period   $ 10.00     $ 9.56     $ 10.26    
Net investment income5      0.06       0.11       0.09    
Net realized and unrealized gain (losses) from investment activities     0.97       (0.66 )     (0.79 )  
Net increase (decrease) from operations     1.03       (0.55 )     (0.70 )  
Dividends from net investment income     (0.04 )     (0.28 )     —    
Distributions from net realized gains from investment activities     —       (0.03 )     —    
Total dividends and distributions     (0.04 )     (0.31 )     —    
Net asset value, end of period   $ 10.99     $ 8.70     $ 9.56    
Total investment return6      10.39 %     (5.66 )%     (6.82 )%  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ —     $ 64,240     $ 44,772    
Expenses to average net assets, net of fee waivers and/or
expense reimbursements by manager		     1.20 %7      1.20 %7      1.20 %7   
Expenses to average net assets, before fee waivers and/or
expense reimbursements by manager		     1.92 %7      1.64 %7      3.02 %7   
Net investment income to average net assets     3.07 %7      2.23 %7      1.75 %7   
Portfolio turnover     38 %     27 %     38 %  

 


279


UBS PACE Select Advisors Trust

Financial highlights

UBS PACE Alternative Strategies Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    Class A   Class B  
    For the six
months ended
January 31,
2008
(unaudited)		   For the
year ended
July 31,
2007		   For the
period ended
July 31,
20061 		   For the six
months ended
January 31,
2008
(unaudited)		   For the
year ended
July 31,
2007		   For the
period ended
July 31,
20062 		  
Net asset value, beginning of period   $ 11.27     $ 9.93     $ 10.01     $ 11.19     $ 9.91     $ 9.84    
Net investment income6      0.07       0.13       0.03       0.02       0.02       0.01    
Net realized and unrealized gains (losses)
from investment activities		     (0.37 )     1.26       (0.11 )     (0.36 )     1.29       0.06    
Net increase (decrease) from operations     (0.30 )     1.39       (0.08 )     (0.34 )     1.31       0.07    
Dividends from net investment income     (0.07 )     (0.05 )     —       (0.02 )     (0.03 )     —    
Distributions from net realized gains
from investment activities		     (0.18 )     —       —       (0.18 )     —       —    
Total dividends and distributions     (0.25 )     (0.05 )     —       (0.20 )     (0.03 )     —    
Net asset value, end of period   $ 10.72     $ 11.27     $ 9.93     $ 10.65     $ 11.19     $ 9.91    
Total investment return7      (2.95 )%     14.09 %     (0.80 )%     (3.32 )%     13.26 %     0.71 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 108,253     $ 64,409     $ 10,393     $ 25     $ 18     $ 3    
Expenses to average net assets,
net of fee waivers and/or expense
reimbursements by and recoupments
to manager including dividend and
interest expense for securities sold short		     2.30 %8,9      2.52 %     2.14 %8      3.04 %8      3.23 %     2.83 %8   
Expenses to average net assets, before
fee waivers and/or expense reimbursements
by manager including dividend and
interest expense for securities sold short		     2.30 %8      2.69 %     4.24 %8      3.23 %8      3.68 %     5.09 %8   
Expenses to average net assets, net of
fee waivers and/or expense reimbursements
by and recoupment to manager excluding
dividend and interest expense for
securities sold short		     1.94 %8,9      1.88 %     1.66 %8      2.70 %8      2.63 %     2.38 %8   
Net investment income to average net assets     1.24 %8,9      1.21 %     1.30 %     0.44 %8      0.31 %     0.41 %8   
Portfolio turnover     190 %     178 %     54 %     190 %     178 %     54 %  

 

1  For the period April 10, 2006 (commencement of issuance) through July 31, 2006.

2  For the period May 19, 2006 (commencement of issuance) through July 31, 2006.

3  For the period April 11, 2006 (commencement of issuance) through July 31, 2006.

4  For the period April 3, 2006 (commencement of issuance) through July 31, 2006.

5  At July 27, 2006 there were no shares outstanding.

6  Calculated using the average shares method.

7  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges, redemption fees or program fees; results would be lower if they were included. Total investment return for periods of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

8  Annualized.

9  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements
280


    Class C   Class Y   Class P  
    For the six
months ended
January 31,
2008
(unaudited)		   For the
year ended
July 31,
2007		   For the
period ended
July 31,
20063 		   For the
period ended
July 26,
20064,5 		   For the six
months ended
January 31,
2008
(unaudited)		   For the
year ended
July 31,
2007		   For the
period ended
July 31,
20061 		  
Net asset value, beginning of period   $ 11.20     $ 9.91     $ 9.97     $ 10.00     $ 11.30     $ 9.94     $ 10.01    
Net investment income6      0.03       0.05       0.02       0.06       0.08       0.16       0.03    
Net realized and unrealized gains (losses)
from investment activities		     (0.37 )     1.26       (0.08 )     (0.20 )     (0.37 )     1.26       (0.10 )  
Net increase (decrease) from operations     (0.34 )     1.31       (0.06 )     (0.14 )     (0.29 )     1.42       (0.07 )  
Dividends from net investment income     (0.05 )     (0.02 )     —       —       (0.08 )     (0.06 )     —    
Distributions from net realized gains
from investment activities		     (0.18 )     —       —       —       (0.18 )     —       —    
Total dividends and distributions     (0.23 )     (0.02 )     —       —       (0.26 )     (0.06 )     —    
Net asset value, end of period   $ 10.63     $ 11.20     $ 9.91     $ 9.86     $ 10.75     $ 11.30     $ 9.94    
Total investment return7      (3.21 )%     13.23 %     (0.60 )%     (1.40 )%     (2.85 )%     14.38 %     (0.70 )%  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 8,061     $ 3,843     $ 302     $ —     $ 501,590     $ 384,649     $ 46,920    
Expenses to average net assets,
net of fee waivers and/or expense
reimbursements by and recoupments
to manager including dividend and
interest expense for securities sold short		     3.05 %8,9      3.28 %     2.84 %8      1.76 %8      2.04 %8,9      2.28 %     1.90 %8   
Expenses to average net assets, before
fee waivers and/or expense reimbursements
by manager including dividend and
interest expense for securities sold short		     3.05 %8      3.45 %     4.35 %8      2.34 %8      2.04 %8      2.43 %     4.12 %8   
Expenses to average net assets, net of
fee waivers and/or expense reimbursements
by and recoupment to manager excluding
dividend and interest expense for
securities sold short		     2.67 %8,9      2.65 %     2.40 %8      1.41 %8      1.69 %8,9      1.64 %     1.41 %8   
Net investment income to average net assets     0.58 %8,9      0.56 %     0.66 %8      1.94 %8      1.44 %8,9      1.44 %     1.47 %8   
Portfolio turnover     190 %     178 %     54 %     54 %     190 %     178 %     54 %  

 


281



UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

Organization and significant accounting policies

UBS PACE Select Advisors Trust (the "Trust") is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended, as an open-end management investment company currently composed of fifteen separate investment portfolios and was organized as a Delaware statutory trust under the laws of the State of Delaware by Certificate of Trust dated September 9, 1994, as amended June 9, 1995 and thereafter. The trustees of the Trust have authority to issue an unlimited number of shares of beneficial interest, par value $0.001 per share.

The Trust has fifteen Portfolios available for investment, each having its own investment objectives and policies: UBS PACE Money Market Investments, UBS PACE Government Securities Fixed Income Investments, UBS PACE Intermediate Fixed Income Investments, UBS PACE Strategic Fixed Income Investments, UBS PACE Municipal Fixed Income Investments, UBS PACE Global Fixed Income Investments, UBS PACE High Yield Investments, UBS PACE Large Co Value Equity Investments, UBS PACE Large Co Growth Equity Investments, UBS PACE Small/Medium Co Value Equity Investments, UBS PACE Small/Medium Co Growth Equity Investments, UBS PACE International Equity Investments, UBS PACE International Emerging Markets Equity Investments, UBS PACE Global Real Estate Securities Investments and UBS PACE Alternative Strategies Investments (collectively, the "Portfolios").

Each of the Portfolios is classified as a diversified investment company with the exception of UBS PACE Intermediate Fixed Income Investments, UBS PACE Global Fixed Income Investments, UBS PACE Global Real Estate Securities Investments and UBS PACE Alternative Strategies Investments. With the exception of UBS PACE Money Market Investments (which currently offers Class P shares only) and UBS PACE Global Real Estate Securities Investments (which currently offers Class A, Class C, Class Y and Class P shares), each Portfolio currently offers Class A, Class B, Class C, Class Y and Class P shares. Each class represents interests in the same assets of the applicable Portfolio and the classes are identical except for differences in their sales charge structures, ongoing service and distribution charges and certain transfer agency and related services expenses. In addition, Class B shares and all corresponding reinvested dividend shares automatically convert to Class A shares within a certain number of years after issuance which varies depending upon the amount invested. All classes of shares have equal voting privileges except that each class has exclusive voting rights with respect to its service and/or distribution plan, if any. Class Y and Class P shares have no service or distribution plan. The Portfolios' Class P shares currently are available only to participants in the UBS PACESM Select Advisors Program, except that UBS PACE Money Market Investments shares are also available to participants in the UBS PACESM Multi Advisor Program.

As of October 1, 2007, new or additional investments into Class B shares, including investments through an automatic investment plan, are not permitted. Existing shareholders of Class B shares may: (i) continue as Class B shareholders; (ii) continue to reinvest dividends and distributions into Class B shares; and (iii) exchange their Class B shares for Class B shares of other series of the UBS Family of Funds, as permitted by existing exchange priviledges. For Class B shares outstanding on October 1, 2007 and Class B shares acquired upon reinvestment of dividends and distributions or through exchanges, all Class B share attributes, including the associated Rule 12b-1 service plan and distribution fees, contingent deferred sales charges and conversion features will continue.

The Trust accounts separately for the assets, liabilities and operations of each Portfolio. Expenses directly attributable to each Portfolio are charged to that Portfolio's operations; expenses which are applicable to all Portfolios are allocated among them on a pro rata basis.


282


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

In the normal course of business, the Portfolios may enter into contracts that contain a variety of representations or that provide indemnification for certain liabilities. The Portfolios' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Portfolios that have not yet occurred. However, the Portfolios have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.

The preparation of financial statements in accordance with US generally accepted accounting principles requires the Trust's management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies:

Valuation of investments—Each Portfolio (except UBS PACE Money Market Investments) calculates its net asset value based on the current market value for its portfolio securities. The Portfolios normally obtain market values for their securities from independent pricing sources. Independent pricing sources may use last reported sale prices, current market quotations or valuations from computerized "matrix" systems that derive values based on comparable securities. Securities traded in the over-the-counter ("OTC") market and listed on The Nasdaq Stock Market, Inc. ("Nasdaq") normally are valued at the NASDAQ Official Closing Price. Other OTC securities are valued at the last bid price available prior to valuation. Securities which are listed on US and foreign stock exchanges normally are valued at the last sale price on the day the securities are valued or, lacking any sales on such day, at the last available bid price. Securities listed on foreign stock exchanges (and certain related derivatives) may be fair valued based on significant events that have occurred subsequent to the close of the foreign markets. UBS PACE International Equity Investments, UBS PACE International Emerging Markets Equity Investments, UBS PACE Global Real Estate Securities Investments and UBS PACE Alternative Strategies Investments may use a systematic fair valuation model provided by an independent third party to value securities principally traded in foreign markets (and certain related derivatives) in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time for valuation. If a security is valued at a "fair value", that value is likely to be different from the last quoted market price for the security. In cases where securities are traded on more than one exchange, the securities are valued on the exchange designated as the primary market by UBS Global Asset Management (Americas) Inc. If a market value is not available from an independent pricing source for a particular security, that security is valued at fair value as determined in good faith by or under the direction of the Trust's Board of Trustees (the "Board"). Various factors may be reviewed in order to make a good faith determination of a security's fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; and changes in overall market conditions. If events occur that materially affect the value of securities (particularly non-US securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange ("NYSE"), the securities are fair valued. The amortized cost method of valuation, which approximates market value, generally is used to value short-term debt instruments with sixty days or less remaining to maturity, unless the Board determines that this does not represent fair value. Investments of the UBS PACE Money Market Investments Portfolio are valued using the amortized cost method of valuation. All investments quoted in foreign currencies will be valued daily in US dollars on the basis of the foreign currency exchange rates prevailing at the time such valuation is determined by the Portfolios' custodian.

In September 2006, the Financial Accounting Standards Board ("FASB") issued Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional


283


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

disclosures about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of January 31, 2008, management does not believe the adoption of FAS 157 will impact the amounts reported in the financial statements, however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain measurements reported on the Statement of operations for a fiscal period.

Repurchase agreements—The Portfolios may purchase securities or other obligations from a bank or securities dealer (or its affiliate), subject to the seller's agreement to repurchase them at an agreed upon date (or upon demand) and price. The Portfolios maintain custody of the underlying obligations prior to their repurchase, either through its regular custodian or through a special "tri-party" custodian or sub-custodian that maintains a separate account for both the Portfolios and their counterparty. The underlying collateral is valued daily to ensure that the value, including accrued interest, is at least equal to the repurchase price. In the event of default of the obligation to repurchase, the Portfolios generally have the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Repurchase agreements involving obligations other than US government securities (such as commercial paper, corporate bonds and mortgage loans) may be subject to special risks and may not have the benefit of certain protections in the event of counterparty insolvency. If the seller (or seller's guarantor, if any) becomes insolvent, the Portfolios may suffer delays, costs and possible losses in connection with the disposition or retention of the collateral. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. Each Portfolio (with the exception of UBS PACE Municipal Fixed Income Investments) may participate in joint repurchase agreement transactions with other funds managed, advised or sub-advised by UBS Global Asset Management (Americas) Inc. ("UBS Global AM").

Investment transactions, investment income and expenses—Investment transactions are recorded on the trade date. Realized gains and losses from investment transactions and foreign exchange transactions are calculated using the identified cost method. Dividend income is recorded net of withholding taxes on the ex-dividend date ("ex-date") (except in the case of certain dividends from foreign securities which are recorded as soon after the ex-date as the respective Portfolio, using reasonable diligence, becomes aware of such dividends). Interest income is recorded on an accrual basis. Discounts are accreted and premiums are amortized as adjustments to interest income and the identified cost of investments.

Income, expenses (excluding class-specific expenses) and realized/unrealized gains/losses are allocated proportionately to each class of shares based upon the relative net asset value of outstanding shares (or the value of dividend-eligible shares, as appropriate) of each class at the beginning of the day (after adjusting for current capital share activity of the respective classes). Class-specific expenses are charged directly to the applicable class of shares.

Foreign currency translation—The books and records of the Portfolios are maintained in US dollars. Foreign currency amounts are translated into US dollars as follows: (1) the foreign currency market value of investment securities and other assets and liabilities stated in foreign currencies are translated into US dollars based on the current exchange rates each business day; and (2) purchases, sales, income and expenses are translated at the rate of exchange prevailing on the respective dates of such transactions. The resulting exchange gains and losses are included on the Statement of operations.

The Portfolios do not generally isolate the effects of fluctuations in foreign exchange rates from the effects of fluctuations in the market prices of securities. However, the Portfolios do isolate the effect of fluctuations in foreign exchange rates when determining the realized gain or loss upon the sale or maturity of foreign


284


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

currency-denominated debt obligations pursuant to US federal income tax regulations; such amount is categorized as realized foreign currency transaction gain or loss for both financial reporting and income tax purposes. Net realized foreign currency transaction gain (loss) is treated as ordinary income (loss) for income tax reporting purposes.

Forward foreign currency contracts—Certain Portfolios may enter into forward foreign currency contracts ("forward contracts") in connection with planned purchases or sales of securities or to hedge the US dollar value of portfolio securities denominated in a particular currency. The Portfolios may also engage in cross-hedging by using forward contracts in one currency to hedge fluctuations in the value of securities denominated in a different currency if the applicable investment sub-advisor anticipates that there is a correlation between the two currencies. Forward contracts may also be used to shift a Portfolio's exposure to foreign currency fluctuations from one country to another. UBS PACE Alternative Strategies Investments may also enter into foreign currency strategies for purposes of risk management, efficient asset allocation and in pursuit of its investment objective.

The Portfolios have no specific limitation on the percentage of assets which may be committed to such contracts; however, the value of all forward contracts will not exceed the value of a Portfolio's total assets. The Portfolios may enter into forward contracts or maintain a net exposure to forward contracts only if (1) the consummation of the contracts would not obligate the Portfolios to deliver an amount of foreign currency in excess of the value of the positions being hedged by such contracts or (2) the Portfolios maintain cash or liquid securities in a segregated account in an amount determined pursuant to the Portfolios' segregation policies as disclosed in the Trust's Statement of Additional Information.

Risks may arise upon entering into forward contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of foreign currencies relative to the US dollar or each other.

Fluctuations in the value of open forward contracts are recorded for book purposes as unrealized gains or losses on forward foreign currency contracts by the Portfolios. Realized gains and losses on forward foreign currency contracts include net gains or losses recognized by the Portfolios on contracts which have matured.

Securities traded on to-be-announced basis—The Portfolios may from time to time purchase securities on a to-be-announced ("TBA") basis. In a TBA transaction, the Portfolio commits to purchasing or selling securities for which all specific information is not yet known at the time of the trade, particularly the face amount and maturity date of the underlying security transactions. Securities purchased on a TBA basis are not settled until they are delivered to the Portfolio, normally 15 to 45 days later. Beginning on the date the Portfolio enters into a TBA transaction, cash, US government securities or other liquid securities are segregated in an amount equal in value to the purchase price of the TBA security. These transactions are subject to market fluctuations, and their current value is determined in the same manner as for other securities.

At January 31, 2008, UBS PACE Government Securities Fixed Income Investments, UBS PACE Intermediate Fixed Income Investments, UBS PACE Strategic Fixed Income Investments and UBS PACE Alternative Strategies Investments held TBA securities with a total cost of $264,319,699, $3,365,672, $2,013,125, and $89,870,859, respectively.

Option writing—Certain Portfolios may write (sell) put and call options on securities or derivative instruments in order to gain exposure to or protect against changes in the markets. When a Portfolio writes a call or a put option, an amount equal to the premium received by the Portfolio is included on the


285


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

Portfolio's Statement of assets and liabilities as an asset and as an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. If an option which the Portfolio has written either expires on its stipulated expiration date or the Portfolio enters into a closing purchase transaction, the Portfolio realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security or derivative instrument, and the liability related to such option is extinguished. If a call option which the Portfolio has written is exercised, the Portfolio recognizes a realized capital gain or loss (long-term or short-term, depending on the holding period of the underlying security) from the sale of the underlying security or derivative instrument and the proceeds from the sale are increased by the premium originally received. If a put option which the Portfolio has written is exercised, the amount of the premium originally received reduces the cost of the security or derivative instrument which the Portfolio purchases upon exercise of the option.

In writing an option, the Portfolios bear the market risk of an unfavorable change in the price of the derivative instrument, security or currency underlying the written option. Exercise of an option written by a Portfolio could result in the Portfolio selling or buying a derivative instrument, security or currency at a price different from current market value.

Written option activity for the six months ended January 31, 2008 for UBS PACE Strategic Fixed Income Investments and UBS PACE Alternative Strategies Investments was as follows:

    UBS PACE
Strategic
Fixed Income
Investments		   UBS PACE
Alternative
Strategies
Investments		  
    Number of
contracts
(000)		   Amount of
premiums
received		   Number of
contracts		   Amount of
premiums
received		  
Options outstanding at July 31, 2007     80,700     $ 1,007,573       1,253     $ 940,821    
Options written     267,002       3,874,016       125,897       6,706,482    
Options terminated in closing purchase transactions     (234,102 )     (1,793,178 )     (122,604 )     (3,301,748 )  
Options expired prior to exercise     —       —       (3,942 )     (3,864,818 )  
Options outstanding at January 31, 20081      113,600     $ 3,088,411       604     $ 480,737    

 

1  For additional information regarding the written options outstanding at January 31, 2008, please refer to the footnotes in the Portfolio of investments for the respective Portfolios.

Written call options—In the event that the counterparty (usually a securities dealer or a bank) to the written options contracts defaults on its obligation under the contracts, the maximum loss related to these contracts is limited to the market value of the securities subject to the written call options outstanding, which aggregated $2,855,357 and $842,171 for UBS PACE Strategic Fixed Income Investments and UBS PACE Alternative Strategies Investments, respectively at January 31, 2008.

Written put options—In the event that the counterparty (usually a securities dealer or a bank) to the written options contracts defaults on its obligation under the contracts, the maximum loss related to these contracts is limited to the notional amount of the written put options outstanding, which aggregated $1,011,867 for UBS PACE Strategic Fixed Income Investments at January 31, 2008.

Purchased options—Certain Portfolios may also purchase put and call options. Purchasing call options tends to increase exposure to the underlying instrument. Purchasing put options tends to decrease exposure


286


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

to the underlying instrument. The Portfolio pays a premium which is included on the Statement of assets and liabilities as an investment and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying future, security or currency transaction to determine the realized gain or loss.

Futures contracts—Certain Portfolios may use financial futures contracts for hedging purposes and to adjust exposure to US and foreign markets in connection with a reallocation of the Portfolios' assets or to manage the average duration of a Portfolio. In addition, a Portfolio may purchase or sell futures contracts or purchase options thereon to increase or reduce its exposure to an asset class without purchasing or selling the underlying securities, either as a hedge or to enhance return or realize gains. Using financial futures contracts involves various market risks. However, imperfect correlations between futures contracts and the related securities or markets, or market disruptions, do not normally permit full control of these risks at all times. The maximum amount at risk from the purchase of a futures contract is the contract value or the loss of the benefit of the transaction should the counterparty default.

Upon entering into a financial futures contract, a Portfolio is required to deliver to a broker an amount of cash and/or government securities equal to a certain percentage of the contract amount. This amount is known as the "initial margin". Subsequent payments, known as "variation margin", generally are made or received by the Portfolio each day depending on the fluctuations in the value of the underlying financial futures contracts, except that in the case of certain futures contracts payments may be made or received at settlement. Such variation margin is recorded for financial statement purposes on a daily basis as an unrealized gain or loss on futures until the financial futures contract is closed, at which time the net gain or loss is reclassified to realized gain or loss on futures.

Short sales "Against the Box"—Each Portfolio (other than UBS PACE Money Market Investments and UBS PACE Municipal Fixed Income Investments) may engage in short sales of securities it owns or has the right to acquire at no added cost through conversion or exchange of other securities it owns (short sales "against the box"). To make delivery to the purchaser in a short sale, the executing broker borrows the securities being sold short on behalf of a Portfolio, and that Portfolio is obligated to replace the securities borrowed at a date in the future. When a Portfolio sells short, it establishes a margin account with the broker effecting the short sale and deposits collateral with the broker. In addition, the Portfolio maintains, in a segregated account with is custodian, the securities that could be used to cover the short sale. Each Portfolio incurs transaction costs, including dividend and interest expense, in connection with opening, maintaining and closing short sales "against the box".

A Portfolio might make a short sale "against the box" to hedge against market risks when its investment manager or sub-advisor believes that the price of a security may decline, thereby causing a decline in the value of a security owned by the Portfolio or a security convertible into or exchangeable for a security owned by the Portfolio. In such case, any loss in the Portfolio's long position after the short sale should be reduced by a corresponding gain in the short position. Conversely, any gain in the long position after the short sale should be reduced by a corresponding loss in the short position. The extent to which gains or losses in the long position are reduced will depend upon the amount of the securities sold short relative to the amount of the securities a Portfolio owns, either directly or indirectly, and in the case where the Portfolio owns convertible securities, changes in the investment values or conversion premiums of such securities.


287


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

Short sales—UBS PACE Alternative Strategies Investments and UBS PACE Global Real Estate Securities Investments can enter into short sales whereby they sell a security they generally do not own, in anticipation of a decline in the security's price. The initial amount of a short sale is recorded as a liability which is marked to market daily. Fluctuations in the value of this liability are recorded as unrealized gains or losses on the Statement of operations. The Portfolio will realize a gain or loss upon closing of the short sale (returning the security to the counterparty by way of purchase or delivery of a long position owned). The Portfolio is liable to the buyer for any dividends and interest payable on securities while those securities are in a short position. These dividends and interest are booked as an expense of the Portfolio. UBS PACE Alternative Strategies Investments maintains one or more accounts containing cash and/or liquid assets at such a level that the amount deposited in the account plus that amount deposited with the broker as collateral will, at minimum, equal the current value of the stock sold short. UBS PACE Global Real Estate Securities Investments did not engage in short sales during the period ended January 31, 2008.

Reverse repurchase agreements—Certain Portfolios may enter into reverse repurchase agreements with qualified third party broker-dealers. Interest on the value of reverse repurchase agreements issued and outstanding is based upon competitive market rates at the time of issuance. At the time the Portfolio enters into reverse repurchase agreements, the Portfolio establishes and maintains a segregated account with the Portfolio's custodian containing liquid securities having a value not less than the repurchase price, including accrued interest, of the reverse repurchase agreement. The Portfolios did not enter into any reverse repurchase agreements during the six months ended January 31, 2008.

Interest rate swap agreements—Certain Portfolios may enter into interest rate swap agreements to protect themselves from interest rate fluctuations. UBS PACE Alternative Strategies Investments may also enter into swap transactions for purposes of risk management, efficient asset allocation and in pursuit of its investment objective. This type of swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to a specified interest rate(s) for a specified amount. The payment flows are usually netted against each other, with the difference being paid by one party to the other.

Risks may arise as a result of the failure of the counterparty to the swap contract to comply with the terms of the contract. The loss incurred by the failure of a counterparty is generally limited to the net interest payment to be received by the Portfolio. Therefore, the Portfolio considers the creditworthiness of the counterparty to a swap contract in evaluating potential credit risk.

The Portfolio accrues for interim payments on swap contracts on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swap contracts on the Statement of assets and liabilities. Once interim payments are settled in cash, the net amount is recorded as realized gain/loss on swaps, in addition to realized gain/loss recorded upon the termination of swap contracts on the Statement of operations. Fluctuations in the value of swap contracts are recorded for financial statement purposes as unrealized appreciation or depreciation of swaps.


288


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

At January 31, 2008, UBS PACE Government Securities Fixed Income Investments, UBS PACE Strategic Fixed Income Investments and UBS PACE Alternative Strategies Investments had outstanding interest rate swap contracts with the following terms:

UBS PACE Government Securities Fixed Income Investments—Interest rate swaps1

            Rate type              


  Notional
amount
(000)		  
Termination
dates		  
Payments made
by the Portfolio		  
Payments received
by the Portfolio		   Upfront
payments
received		  

Value		   Unrealized
depreciation		  
USD     3,000     12/15/15     5.000 %     3.112 %2    $ 150     $ (192,930 )   $ (192,780 )  
USD     15,100     06/18/18     5.000       3.112 2      151,000       (797,609 )     (646,609 )  
USD     19,000     06/18/18     5.000       3.112 2      569,441       (1,003,614 )     (434,173 )  
USD     21,100     06/18/18     5.000       3.112 2      522,574       (1,114,540 )     (591,966 )  
USD     23,600     06/18/18     5.000       3.112 2      120,360       (1,246,594 )     (1,126,234 )  
                                $ 1,363,525     $ (4,355,287 )   $ (2,991,762 )  

 

UBS PACE Strategic Fixed Income Investments—Interest rate swaps1

            Rate type              


  Notional
amount
(000)		  
Termination
dates		  
Payments made
by the Portfolio		  
Payments received
by the Portfolio		   Upfront
payments
received (made)		  

Value		   Unrealized
appreciation
(depreciation)		  
AUD     17,000     09/15/09     7.300 %3      7.000 %   $ 21,822     $ (42,893 )   $ (21,071 )  
AUD     17,000     09/15/09     7.300 3      7.000       35,638       (42,893 )     (7,255 )  
BRL     36,000     01/04/10     — 4      12.948       (56,811 )     243,216       186,405    
CAD     70,400     06/20/12     3.968 5      5.000       (469,013 )     1,388,317       919,304    
CAD     70,400     06/20/12     5.000       3.968 5      1,690,812       (1,388,317 )     302,495    
CAD     48,900     06/20/17     3.968 5      5.500       (1,326,664 )     1,091,597       (235,067 )  
CAD     48,900     06/20/17     5.500       3.968 5      948,727       (1,091,597 )     (142,870 )  
EUR     300     12/15/11     4.000       4.364 6      (314 )     638       324    
EUR     1,200     03/15/12     — 7      1.983       (2,461 )     (18,137 )     (20,598 )  
EUR     2,400     03/15/12     — 7      1.948       (1,764 )     (41,341 )     (43,105 )  
GBP     22,900     03/20/13     5.530 8      5.000       (109,493 )     112,800       3,307    
GBP     3,500     12/15/35     4.000       5.530 8      (229,827 )     304,619       74,792    
MXN     32,000     11/04/16     7.913 9      8.170       16,807       14,592       31,399    
MXN     86,000     11/04/16     7.913 9      8.170       (117,559 )     30,430       (87,129 )  
NZD     6,435     06/15/09     8.750 10      7.250       32,689       (84,396 )     (51,707 )  
USD     1,900     06/18/09     3.112 2      5.000       (27,075 )     122,074       94,999    
USD     95,200     06/18/09     3.112 2      4.000       (163,744 )     1,293,113       1,129,369    
USD     136,500     06/18/09     3.112 2      4.000       (245,700 )     2,856,451       2,610,751    
USD     135,100     06/18/10     3.112 2      4.000       (945,700 )     2,827,154       1,881,454    
USD     74,800     06/17/11     4.000       3.112 2      (78,540 )     (691,875 )     (770,415 )  
USD     40,600     06/18/13     3.112 2      4.000       680,050       621,136       1,301,186    
USD     56,800     06/18/13     3.112 2      4.000       906,401       868,978       1,775,379    
USD     37,900     12/21/16     5.000       3.112 2      (198,596 )     (80,196 )     (278,792 )  
USD     8,500     06/18/18     3.112 2      5.000       (439,195 )     439,195       —    
USD     2,800     12/15/25     5.000       3.112 2      137,508       (98,044 )     39,464    
USD     58,000     06/18/28     5.000       3.112 2      (1,400,700 )     (1,497,261 )     (2,897,961 )  
USD     9,600     06/18/38     5.000       3.112 2      (316,512 )     (226,077 )     (542,589 )  
USD     1,700     06/15/31     6.000       3.112 2      (115,175 )     (290,838 )     (406,013 )  
USD     2,500     12/17/31     6.000       3.112 2      (87,975 )     (430,776 )     (518,751 )  
                                $ (1,862,364 )   $ 6,189,669     $ 4,327,305    

 


289


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

UBS PACE Alternative Strategies Investments—Interest rate swaps1

            Rate type              


  Notional
amount
(000)		  
Termination
dates		  
Payments made
by the Portfolio		  
Payments received
by the Portfolio		   Upfront
payments
received (made)		  

Value		   Unrealized
appreciation
(depreciation)		  
BRL     3,900     01/04/10     11.100 %11      12.700 %     —     $ 3,659     $ 3,659    
BRL     4,400     01/04/10     11.100 11      12.700       —       3,785       3,785    
EUR     800     06/18/13     4.250       4.364 6    $ (7,068 )     (11,202 )     (18,270 )  
EUR     1,500     06/18/13     4.250       4.364 6      8,244       (21,004 )     (12,760 )  
EUR     1,730     06/18/13     4.250       4.364 6      (3,166 )     (24,223 )     (27,389 )  
EUR     3,000     06/18/13     4.364 6      4.250       22,458       42,007       64,465    
EUR     4,000     06/18/13     4.250       4.378 12      (59,509 )     (56,008 )     (115,517 )  
EUR     5,200     06/18/13     4.250       4.364 6      (32,095 )     (72,811 )     (104,906 )  
EUR     5,460     06/18/13     4.250       4.364 6      40,586       (76,451 )     (35,865 )  
EUR     7,980     06/18/13     4.250       4.364 6      119,392       (111,737 )     7,655    
EUR     14,500     06/18/13     4.364 6      4.250       (162,085 )     203,031       40,946    
EUR     14,900     06/18/13     4.364 6      4.250       (143,524 )     208,631       65,107    
EUR     15,100     06/18/13     4.364 6      4.250       (229,502 )     211,432       (18,070 )  
EUR     16,000     06/18/13     4.250       4.364 6      (9,241 )     (224,034 )     (233,275 )  
EUR     17,000     06/18/13     4.364 6      4.250       30,106       238,036       268,142    
EUR     18,000     06/18/13     4.250       4.364 6      (332,738 )     (252,039 )     (584,777 )  
EUR     78,900     06/18/13     4.250       4.364 6      (270,198 )     (1,104,768 )     (1,374,966 )  
EUR     6,000     06/18/15     4.364 6      4.500       (20,403 )     165,669       145,266    
EUR     500     06/18/18     4.364 6      4.500       (5,844 )     6,927       1,083    
EUR     3,000     06/18/18     4.364 6      4.500       21,291       41,565       62,856    
EUR     11,500     06/18/18     4.364 6      4.500       280,541       159,335       439,876    
EUR     12,030     06/18/18     4.364 6      4.500       15,631       166,677       182,308    
EUR     12,030     06/18/18     4.364 6      4.500       47,122       166,677       213,799    
EUR     3,150     06/18/38     4.364 6      4.750       11,282       42,696       53,978    
EUR     3,220     06/18/38     4.364 6      4.750       (14,625 )     43,645       29,020    
EUR     3,220     06/18/38     4.750       4.364 6      (62,367 )     (43,645 )     (106,012 )  
EUR     6,300     06/18/38     4.364 6      4.750       15,274       85,392       100,666    
GBP     5     06/18/11     5.250       5.530 8      3       (109 )     (106 )  
GBP     1,400     06/18/13     5.530 8      5.250       (53,430 )     40,040       (13,390 )  
GBP     2,000     06/18/13     5.530 8      5.250       (3,197 )     57,200       54,003    
GBP     3,300     06/18/13     5.530 8      5.250       (110,796 )     94,381       (16,415 )  
GBP     5,320     06/18/13     5.530 8      5.250       (33,384 )     152,153       118,769    
GBP     7,050     06/18/13     5.250       5.530 8      229,345       (201,631 )     27,714    
GBP     7,130     06/18/13     5.250       5.530 8      236,330       (203,919 )     32,411    
GBP     8,170     06/18/13     5.530 8      5.250       (44,046 )     233,664       189,618    
GBP     1,000     06/18/18     5.250       5.530 8      24,880       106,314       131,194    
GBP     1,000     06/18/18     5.530 8      5.250       (68,605 )     45,964       (22,641 )  
GBP     1,080     06/18/18     5.250       5.530 8      53,368       (49,641 )     3,727    
GBP     1,220     06/18/18     5.530 8      5.250       (33,351 )     56,076       22,725    
GBP     1,460     06/18/18     5.250       5.530 8      49,653       (67,108 )     (17,455 )  
GBP     1,730     06/18/18     5.250       5.530 8      93,039       (79,518 )     13,521    
GBP     2,590     06/18/18     5.530 8      5.250       (158,618 )     99,327       (59,291 )  
GBP     2,600     06/18/18     5.530 8      5.250       (124,716 )     119,507       (5,209 )  
JPY     525,000     12/17/10     0.921 13      1.183       —       29,909       29,909    
JPY     718,000     12/17/10     0.921 13      1.170       —       39,246       39,246    
JPY     718,000     12/17/10     0.921 13      1.160       —       37,920       37,920    
JPY     1,143,000     12/17/10     0.921 13      1.188       —       66,171       66,171    
JPY     1,357,000     12/17/10     0.921 13      1.181       —       76,981       76,981    
JPY     1,427,000     12/17/10     0.921 13      1.183       —       81,295       81,295    

 


290


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

            Rate type              


  Notional
amount
(000)		  
Termination
dates		  
Payments made
by the Portfolio		  
Payments received
by the Portfolio		   Upfront
payments
received (made)		  

Value		   Unrealized
appreciation
(depreciation)		  
JPY     3,272,000     06/18/13     1.250 %     0.921 %13    $ 157,328     $ (172,388 )   $ (15,060 )  
JPY     3,278,000     06/18/13     1.250       0.921 13      264,200       (172,704 )     91,496    
JPY     333,000     12/17/15     1.703       0.921 13      —       (55,161 )     (55,161 )  
JPY     454,000     12/17/15     1.670       0.921 13      —       (66,100 )     (66,100 )  
JPY     454,000     12/17/15     1.641       0.921 13      —       (57,819 )     (57,819 )  
JPY     724,000     12/17/15     1.709       0.921 13      —       (122,868 )     (122,868 )  
JPY     859,000     12/17/15     1.699       0.921 13      —       (140,574 )     (140,574 )  
JPY     903,000     12/17/15     1.691       0.921 13      —       (143,093 )     (143,093 )  
JPY     68,000     12/17/38     0.921 13      2.595       —       12,165       12,165    
JPY     91,000     12/17/38     0.921 13      2.570       —       11,658       11,658    
JPY     91,000     12/17/38     0.921 13      2.540       —       6,112       6,112    
JPY     147,000     12/17/38     0.921 13      2.648       —       41,974       41,974    
JPY     173,000     12/17/38     0.921 13      2.594       —       30,491       30,491    
JPY     182,000     12/17/38     0.921 13      2.585       —       28,861       28,861    
SEK     15,000     06/18/18     4.750       4.453 14      25,988       (58,974 )     (32,986 )  
SEK     18,000     06/18/18     4.750       4.453 14      (17,203 )     (20,813 )     (38,016 )  
SEK     30,000     06/18/18     4.750       4.453 14      (16,321 )     16,817       496    
SEK     33,000     06/18/18     4.750       4.453 14      (78,801 )     37,207       (41,594 )  
SEK     100,300     06/18/18     4.750       4.453 14      (74,077 )     (115,976 )     (190,053 )  
SEK     109,500     06/18/18     4.750       4.453 14      (33,068 )     123,459       90,391    
USD     38,900     11/17/10     4.315       3.112 2      —       (862,357 )     (862,357 )  
USD     32,760     12/24/10     3.780       3.112 2      —       (353,758 )     (353,758 )  
USD     9,750     12/29/10     4.000       3.112 2      —       (143,980 )     (143,980 )  
USD     15,880     12/29/10     3.868       3.112 2      —       (194,970 )     (194,970 )  
USD     31,890     01/07/11     3.658       3.112 2      —       (259,367 )     (259,367 )  
USD     17,880     01/28/11     3.161       3.112 2      —       33,651       33,651    
USD     9,000     06/18/11     3.112 2      4.500       (212,100 )     332,263       120,163    
USD     20,340     06/18/11     3.112 2      4.500       (128,695 )     750,914       622,219    
USD     23,000     06/18/11     3.112 2      4.500       (210,900 )     849,116       638,216    
USD     1,400     06/18/13     3.112 2      4.500       (49,800 )     53,071       3,271    
USD     2,500     06/18/13     3.112 2      4.500       (54,000 )     94,770       40,770    
USD     2,700     06/18/13     3.112 2      4.500       (23,632 )     102,351       78,719    
USD     2,800     06/18/13     4.500       3.112 2      70,997       (106,142 )     (35,145 )  
USD     4,900     06/18/13     3.112 2      4.500       (48,762 )     185,748       136,986    
USD     5,500     06/18/13     4.500       3.112 2      142,816       (208,493 )     (65,677 )  
USD     5,600     06/18/13     4.500       3.112 2      140,990       (212,284 )     (71,294 )  
USD     6,700     06/18/13     3.112 2      4.500       (39,195 )     253,982       214,787    
USD     9,000     06/18/13     4.500       3.112 2      23,500       (341,170 )     (317,670 )  
USD     9,700     06/18/13     3.112 2      4.500       (88,917 )     367,706       278,789    
USD     9,700     06/18/13     3.112 2      4.500       (87,880 )     367,706       279,826    
USD     11,000     06/18/13     4.500       3.112 2      409,847       (416,986 )     (7,139 )  
USD     11,300     06/18/13     3.112 2      4.500       (9,627 )     428,358       418,731    
USD     12,100     06/18/13     3.112 2      4.500       (83,793 )     458,685       374,892    
USD     12,800     06/18/13     3.112 2      4.500       (64,960 )     485,220       420,260    
USD     20,000     06/18/13     4.500       3.112 2      302,800       (758,157 )     (455,357 )  
USD     20,000     06/18/13     3.112 2      4.500       (584,571 )     758,157       173,586    
USD     82,015     06/18/13     3.112 2      4.500       (199,160 )     3,109,011       2,909,851    
USD     34,300     11/17/15     3.112 2      4.920       —       1,532,369       1,532,369    
USD     28,600     12/24/15     3.112 2      4.520       —       522,029       522,029    
USD     8,500     12/29/15     3.112 2      4.745       —       266,805       266,805    
USD     13,900     12/29/15     3.112 2      4.630       —       341,356       341,356    

 


291


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

            Rate type              


  Notional
amount
(000)		  
Termination
dates		  
Payments made
by the Portfolio		  
Payments received
by the Portfolio		   Upfront
payments
received (made)		  

Value		   Unrealized
appreciation
(depreciation)		  
USD     27,800     01/07/16     3.112 %2      4.487 %     —     $ 430,691     $ 430,691    
USD     15,500     01/28/16     3.112 2      4.224       —       (22,293 )     (22,293 )  
USD     4,700     06/18/18     5.000       3.112 2    $ 367,598       (248,262 )     119,336    
USD     5,400     06/18/18     3.112 2      5.000       (238,258 )     285,238       46,980    
USD     5,500     06/18/18     3.112 2      5.000       (247,646 )     290,520       42,874    
USD     5,500     06/18/18     3.112 2      5.000       (247,135 )     290,520       43,385    
USD     7,100     06/18/18     3.112 2      5.000       (163,950 )     375,035       211,085    
USD     10,800     06/18/18     3.112 2      5.000       (236,918 )     570,475       333,557    
USD     2,600     06/18/23     5.250       3.112 2      95,501       (163,526 )     (68,025 )  
USD     3,200     06/18/23     5.250       3.112 2      177,659       (201,263 )     (23,604 )  
USD     3,200     06/18/23     5.250       3.112 2      178,032       (201,262 )     (23,230 )  
USD     3,400     06/18/23     5.250       3.112 2      207,400       (213,842 )     (6,442 )  
USD     3,400     06/18/23     5.250       3.112 2      208,964       (213,842 )     (4,878 )  
USD     10,900     06/18/23     5.250       3.112 2      900,199       (685,552 )     214,647    
USD     4,600     06/18/28     3.112 2      5.250       (428,174 )     267,460       (160,714 )  
USD     5,300     06/18/28     5.250       3.112 2      299,655       (308,160 )     (8,505 )  
USD     5,300     06/18/28     5.250       3.112 2      298,821       (308,160 )     (9,339 )  
USD     5,300     06/18/28     5.250       3.112 2      290,355       (308,160 )     (17,805 )  
USD     6,800     06/18/28     5.250       3.112 2      238,241       (395,376 )     (157,135 )  
USD     14,000     06/18/28     3.112 2      5.250       (225,537 )     814,009       588,472    
USD     15,000     06/18/28     5.250       3.112 2      633,319       (872,153 )     (238,834 )  
USD     3,790     06/18/38     5.250       3.112 2      229,170       (238,731 )     (9,561 )  
USD     7,590     06/18/38     5.250       3.112 2      482,759       (478,093 )     4,666    
USD     9,570     11/17/38     5.309       3.112 2      —       (588,177 )     (588,177 )  
USD     7,850     12/24/38     5.011       3.112 2      —       (101,281 )     (101,281 )  
USD     2,350     12/29/38     5.215       3.112 2      —       (103,879 )     (103,879 )  
USD     3,830     12/29/38     5.121       3.112 2      —       (114,013 )     (114,013 )  
USD     7,630     01/07/39     5.017       3.112 2      —       (99,546 )     (99,546 )  
USD     4,260     01/28/39     4.939       3.112 2      —       562       562    
                                $ 1,569,096     $ 4,602,281     $ 6,171,377    

 

1  Illiquid securities. These securities represent 0.43% of net assets for UBS PACE Government Securities Fixed Income Investments, 0.52% of net assets for UBS PACE Strategic Fixed Income Investments and 1.00% of net assets for UBS PACE Alternative Strategies Investments as of January 31, 2008.

2  Rate based on 3 Month LIBOR (London Interbank Offered Rate).

3  Rate based on 3 Month LIBOR (AUD on Interbank Offered Rate).

4  At the maturity date, the Portfolio will make or receive a payment depending on the movement of the Brazil CETIP (Central of Custody and Settlement of Private Bonds) Interbank Deposit Rate versus the fixed rate set at inception of the swap.

5  Rate based on 3 Month LIBOR (CAD on Interbank Offered Rate).

6  Rate based on 6 Month LIBOR (EUR on Interbank Offered Rate).

7  At the maturity date, the Portfolio will make or receive a payment depending on the movement of the France CPI Excluding Tobacco Index, versus the fixed rate set at the inception of the swap.

8  Rate based on 6 Month LIBOR (GBP on Interbank Offered Rate).

9  Rate based on Mexican 28-day TIIE, Tasa de Interes Interbancaria de Equilibrio (Interbank Equilibrium Interest Rate).

10  Rate based on 3 Month LIBOR (NZD on Interbank Offered Rate).

11  Rate based on Brazil CETIP (Central of Custody and Settlement of Private Bonds) Interbank Deposit Rate.

12  Rate based on 3 Month LIBOR (EUR on Interbank Offered Rate).

13  Rate based on 6 Month LIBOR (JPY on Interbank Offered Rate).

14  Rate based on 3 Month LIBOR (SEK on Interbank Offered Rate).

AUD  Australian Dollar

BRL  Brazilian Real

CAD  Canadian Dollar

EUR  Euro

GBP  Great Britain Pound

JPY  Japanese Yen

MXN  Mexican Peso

NZD  New Zealand Dollar

SEK  Swedish Krona

USD  US Dollar


292


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

Credit default swap agreements—Credit default swap agreements involve commitments to make or receive payments in the event of a default of a security or a credit event. As a buyer, the Portfolio would make periodic payments to the counterparty, and the Portfolio would receive payments only upon the occurrence of a credit event. If no credit event occurs, the Portfolio will lose its periodic stream of payments over the term of the contract. However, if a credit event does occur, the Portfolio typically would receive full notional value for a reference obligation that may have little or no value. As a seller, the Portfolio would receive periodic payments from the counterparty, and the Portfolio would make payments only upon the occurence of a credit event. If no default or credit event occurs, the Portfolio will gain the periodic stream of payments it received over the term of the contract and the counterpary will lose its periodic stream of payments over the term of the contract. However, if a default or credit event occurs, the Portfolio typically pays full notional value for a reference obligation that may have little or no value. Credit default swaps may involve greater risks than if the Portfolio had invested in the reference obligation directly and are subject to general market risk, liquidity risk and credit risk.

At January 31, 2008, UBS PACE Strategic Fixed Income Investments and UBS PACE Alternative Strategies Investments had outstanding credit default swap contracts with the following terms:

UBS PACE Strategic Fixed Income Investments—Credit default swaps1

            Rate type              


  Notional
amount
(000)		  
Termination
dates		   Payments
made by the
Portfolio		   Payments
received by the
Portfolio		   Upfront
payments
received (made)		  

Value		   Unrealized
appreciation
(depreciation)		  
USD     2,900     03/20/08     0.000 %2      0.750 %     —     $ (11,250 )   $ (11,250 )  
USD     2,400     09/20/08     0.000 3      0.070       —       (1,847 )     (1,847 )  
USD     2,400     06/20/12     0.280       0.000 4      —       333,920       333,920    
USD     2,100     09/20/12     0.000 5      5.600       —       (158,244 )     (158,244 )  
USD     2,500     09/20/12     0.000 6      5.150       —       (154,388 )     (154,388 )  
USD     2,600     09/20/12     0.000 7      5.550       —       (130,913 )     (130,913 )  
USD     3,600     09/20/12     0.000 8      4.850       —       (353,431 )     (353,431 )  
USD     3,300     10/20/12     0.000 9      1.020       —       (155,665 )     (155,665 )  
USD     300     12/20/12     0.000 10      6.700       —       (12,072 )     (12,072 )  
USD     1,000     12/20/12     0.000 11      2.870       —       (48,782 )     (48,782 )  
USD     1,000     12/20/12     0.000 11      2.900       —       (47,600 )     (47,600 )  
                                  —     $ (740,272 )   $ (740,272 )  

 

UBS PACE Alternative Strategies Investments—Credit default swaps1

                Rate type  


  Notional
amount
(000)		  
Termination
dates		   Payments
made by the
Portfolio		   Payments
received by the
Portfolio		   Upfront
payments
received (made)		  

Value		   Unrealized
appreciation
(depreciation)		  
USD     7,000     12/20/12     0.000 %12      1.750 %   $ 70,534     $ (69,834 )   $ 700    
USD     15,000     12/20/12     0.000 13      0.600       311,728       (306,000 )     5,728    
USD     139,000     12/20/12     0.000 13      0.600       1,929,046       (1,915,146 )     13,900    
USD     25     03/20/13     0.000 14      2.350       —       (1,589 )     (1,589 )  
USD     125     03/20/13     0.000 14      2.400       —       (7,704 )     (7,704 )  
USD     150     03/20/13     0.000 14      2.300       —       (9,823 )     (9,823 )  
USD     2,000     08/25/37     0.000 15      0.090       464,875       (517,175 )     (52,300 )  
                                $ 2,776,183     $ (2,827,271 )   $ (51,088 )  

 

1  Illiquid securities. These securities represent 0.09% of net assets for UBS PACE Strategic Fixed Income Investments and 0.01% of net assets for UBS PACE Alternative Strategies Investments.


293


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

2  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Ford Motor Credit Co. bond, 7.000%, due 10/01/13.

3  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Proctor & Gamble bond, 4.950%, due 08/15/14.

4  Payment from the counterparty will be received upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Glitnir Banki HF bond, 4.420%, due 01/18/12.

5  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the General Motors Acceptance Corporation bond, 6.880%, due 08/28/12.

6  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Ford Motor Credit Co. bond, 7.000%, due 10/01/13.

7  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Ford Motor Credit Co. bond, 7.000%, due 10/01/13.

8  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the General Motors Acceptance Corporation bond, 6.880%, due 08/28/12.

9  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Gazprom bond, 7.200%, due 02/01/20.

10  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the General Motors Corp. bond, 7.125%, due 07/15/13.

11  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the SLM Corp. bond, 5.125%, due 08/27/12.

12  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the CDX Emerging Markets Index.

13  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the CDX North America Investment Grade Index.

14  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Countrywide Home Loan bond, 6.000%, due 01/24/18.

15  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the bonds on the Asset Backed Securities Index.

USD  US Dollar

Total return swaps—Total return swap contracts involve commitments to pay interest in exchange for a market-linked return both based on notional amounts. To the extent the total return of the security or index underlying the transactions exceeds or falls short of the offsetting interest rate obligation, the Portfolio will receive a payment from or make a payment to the counterparty.

At January 31, 2008, UBS PACE Alternative Strategies Investments had outstanding total return swap contracts with the following terms:

UBS PACE Alternative Strategies Investments—Total return swaps1,2

Counterparty   Notional
amount
(000)		  
Termination
dates		  

Value		   Unrealized
appreciation
(depreciation)		  
Banc of America   USD 500     06/03/08   $ (22,598 )   $ (22,598 )  
Banc of America   USD 500     06/03/08     (20,982 )     (20,982 )  
Banc of America   USD 1,000     06/03/08     (40,525 )     (40,525 )  
JP Morgan   USD 2,000     06/03/08     90,054       90,054    
Banc of America   USD 3,000     06/03/08     (121,559 )     (121,559 )  
                $ (115,610 )   $ (115,610 )  

 

1  Illiquid securities. These securities represent 0.02% of net assets as of January 31, 2008.

2  The Portfolio receives payments based on any positive monthly duration adjusted return of the Banc of America CMBS AAA 10 Year Index. The Portfolio makes payments on any negative monthly duration adjusted return of such index.

USD  US Dollar

Dividends and distributions—Dividends and distributions to shareholders are recorded on the ex-dividend date. The amounts of dividends and distributions are determined in accordance with federal income tax


294


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

regulations, which may differ from US generally accepted accounting principles. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification.

Concentration of risk

Investing in securities of foreign issuers and currency transactions may involve certain considerations and risks not typically associated with investments in the United States. These risks include revaluation of currencies, adverse fluctuations in foreign currency values and possible adverse political, social and economic developments, including those particular to a specific industry, country or region, which could cause the securities and their markets to be less liquid and prices more volatile than those of comparable US companies and US government securities. These risks are greater with respect to securities of issuers located in emerging market countries in which the UBS PACE Global Fixed Income Investments, UBS PACE International Equity Investments, UBS PACE International Emerging Markets Equity Investments, UBS PACE Global Real Estate Securities Investments and UBS PACE Alternative Strategies Investments Portfolios are authorized to invest.

Small capitalization ("small cap") companies may be more vulnerable than larger capitalization companies to adverse business or economic developments. Small cap companies may also have limited product lines, markets or financial resources, and may be dependent on a relatively small management group. Securities of such companies may be less liquid and more volatile than securities of larger capitalization companies or the market averages in general and therefore may involve greater risk than investing in larger capitalization companies. In addition, small cap companies may not be well-known to the investing public, may not have institutional ownership and may have only cyclical, static or moderate growth prospects. These risks are greater with respect to the securities in which the UBS PACE Small/Medium Co Value Equity Investments and UBS PACE Small/Medium Co Growth Equity Investments Portfolios tend to invest.

The ability of the issuers of debt securities held by the Portfolios to meet their obligations may be affected by economic and political developments particular to a specific industry, country, state or region.

Investment Manager and Administrator

The Trust has entered into an investment management and administration contract ("Management Contract") with UBS Global AM. In accordance with the Management Contract, each Portfolio pays UBS Global AM investment management and administration fees, which are accrued daily and paid monthly, in accordance with the following schedule:

Portfolio   Annual rate
as a percentage of
each Portfolio's
average daily net assets		  
UBS PACE Money Market Investments   0.350%  
UBS PACE Government Securities Fixed Income Investments   0.700% up to $250 million
0.650% above $250 million
up to $500 million
0.625% above $500 million
up to $750 million
0.600% above $750 million
up to $1 billion
0.575% above $1 billion		  

 


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Notes to financial statements (unaudited)

Portfolio   Annual rate
as a percentage of
each Portfolio's
average daily net assets		  
UBS PACE Intermediate Fixed Income Investments   0.600% up to $250 million
0.550% above $250 million
up to $500 million
0.525% above $500 million
up to $750 million
0.500% above $750 million
up to $1 billion
0.475% above $1 billion		  
UBS PACE Strategic Fixed Income Investments   0.700% up to $250 million
0.650% above $250 million
up to $500 million
0.625% above $500 million
up to $750 million
0.600% above $750 million
up to $1 billion
0.575% above $1 billion		  
UBS PACE Municipal Fixed Income Investments   0.600% up to $250 million
0.550% above $250 million
up to $500 million
0.525% above $500 million
up to $750 million
0.500% above $750 million
up to $1 billion
0.475% above $1 billion		  
UBS PACE Global Fixed Income Investments   0.800% up to $500 million
0.775% above $500 million
up to $1 billion
0.750% above $1 billion		  
UBS PACE High Yield Investments   0.800% up to $500 million
0.750% above $500 million
up to $1 billion
0.725% above $1 billion
up to $1.5 billion
0.700% above $1.5 billion
up to $2 billion
0.675% above $2 billion		  
UBS PACE Large Co Value Equity Investments   0.800%1   
UBS PACE Large Co Growth Equity Investments   0.800% up to $500 million
0.775% above $500 million
up to $1 billion
0.750% above $1 billion
up to $2 billion
0.725% above $2 billion		  
UBS PACE Small/Medium Co Value Equity Investments   0.800% up to $750 million
0.775% above $750 million		  
UBS PACE Small/Medium Co Growth Equity Investments   0.800% up to $750 million
0.775% above $750 million		  

 

1  See page 299 for additional information.


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UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

Portfolio   Annual rate
as a percentage of
each Portfolio's
average daily net assets		  
UBS PACE International Equity Investments   0.900% up to $500 million
0.875% above $500 million
up to $1 billion
0.850% above $1 billion
up to $2 billion
0.825% above $2 billion		  
UBS PACE International Emerging Markets Equity Investments   1.100% up to $500 million
1.075% above $500 million
up to $1 billion
1.050% above $1 billion
up to $2 billion
1.025% above $2 billion		  
UBS PACE Global Real Estate Securities Investments   0.800% up to $500 million
0.750% above $500 million
up to $1 billion
0.725% above $1 billion
up to $1.5 billion
0.700% above $1.5 billion
up to $2 billion
0.675% above $2 billion		  
UBS PACE Alternative Strategies Investments   1.400% up to $500 million
1.350% above $500 million
up to $1 billion
1.300% above $1 billion
up to $1.5 billion
1.275% above $1.5 billion
up to $2 billion
1.250% above $2 billion		  

 

Under separate Sub-Advisory Agreements, with the exception of UBS PACE Money Market Investments, UBS Global AM (not the Portfolios) pays each investment sub-advisor a fee from the investment management and administration fees which UBS Global AM receives, which is accrued daily and paid monthly, in accordance with the following schedule:

Portfolio   Investment sub-advisor   Annual rate
as a percentage of
each Portfolio's
average daily net assets		  
UBS PACE Government Securities Fixed Income Investments   Pacific Investment Management Company LLC   0.200%  
UBS PACE Intermediate Fixed Income Investments   BlackRock Financial Management, Inc.   0.200% up to $120 million
0.100% above $120 million		  
UBS PACE Strategic Fixed Income Investments   Pacific Investment Management Company LLC   0.250%  
UBS PACE Municipal Fixed Income Investments   Standish Mellon Asset Management Company LLC   0.200% up to $60 million
0.150% above $60 million		  
UBS PACE Global Fixed Income Investments   Rogge Global Partners plc1    0.250% up to $150 million
0.180% above $150 million up to $500 million
0.150% above $500 million		  
UBS PACE High Yield Investments   MacKay Shields LLC   0.350%  

 


297


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

Portfolio   Investment sub-advisor   Annual rate
as a percentage of
each Portfolio's
average daily net assets		  
UBS PACE Large Co Value Equity Investments   Institutional Capital LLC
SSgA Funds Management, Inc.
Westwood Management Corp.		   0.300%
0.150%
0.300%		  
UBS PACE Large Co Growth Equity Investments   Delaware Management Company2
Marsico Capital Management, LLC
SSgA Funds Management, Inc.
Wellington Management Company, LLC		   0.400%
0.300%
0.150%
0.300%		  
UBS PACE Small/Medium Co Value Equity Investments   Ariel Capital Management LLC
Metropolitan West Capital Management, LLC
Opus Capital Management, Inc.		   0.300%
0.400%
0.500% up to $75 million
0.450% above $75 million		  
UBS PACE Small/Medium Co Growth Equity Investments   AG Asset Management LLC

Copper Rock Capital Partners, LLC

Riverbridge Partners, LLC		   0.450% up to $100 million
0.400% above $100 million
0.450% up to $100 million
0.400% above $100 million
0.400%		  
UBS PACE International Equity Investments   J.P. Morgan Asset Management Inc.
Martin Currie Inc.





Mondrian Investment Partners Ltd.		   0.200%
0.350% up to $150 million
0.300% above $150 million
up to $250 million
0.250% above $250 million
up to $350 million
0.200% above $350 million
0.350% up to $150 million
0.300% above $150 million		  
UBS PACE International Emerging Markets Equity Investments   Mondrian Investment Partners Ltd.



Gartmore Global Partners		   0.650% up to $150 million
0.550% above $150 million
up to $250 million
0.500% above $250 million
0.500%		  
UBS PACE Global Real Estate Securities Investments   Goldman Sachs Asset Management, L.P.   0.420% up to $50 million
0.400% above $50 million		  
UBS PACE Alternative Strategies Investments   Analytic Investors, Inc.



Goldman Sachs Asset Management, L.P.3



Wellington Management Company, LLP		   0.750% up to $200 million
0.700% above $200 million
up to $400 million
0.650% above $400 million
0.800% up to $300 million
0.750% above $300 million
up to $500 million
0.700% above $500 million
0.750% up to $200 million
0.725% above $200 million		  

 

1  Fischer Francis Tree & Watts, Inc., (and its affiliates) was terminated as a sub-advisor to the Portfolio, effective August 23, 2007. As a result, Rogge Global Partners plc is now the sole manager of the Portfolio.

2  Delaware Management Company became a sub-advisor effective December 5, 2007.

3  Goldman Sachs Asset Management, L.P. became a sub-advisor effective September 11, 2007.


298


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

At January 31, 2008, certain Portfolios owed UBS Global AM for investment management and administration fees as follows:

Portfolio   Amounts
owed		  
UBS PACE Money Market Investments   $ 154,321    
UBS PACE Government Securities Fixed Income Investments     367,980    
UBS PACE Intermediate Fixed Income Investments     233,524    
UBS PACE Strategic Fixed Income Investments     456,259    
UBS PACE Municipal Fixed Income Investments     168,894    
UBS PACE Global Fixed Income Investments     406,335    
UBS PACE High Yield Investments     79,437    
UBS PACE Large Co Value Equity Investments     926,947    
UBS PACE Large Co Growth Equity Investments     883,644    
UBS PACE Small/Medium Co Value Equity Investments     333,842    
UBS PACE Small/Medium Co Growth Equity Investments     374,954    
UBS PACE International Equity Investments     1,017,195    
UBS PACE International Emerging Markets Equity Investments     431,003    
UBS PACE Global Real Estate Securities Investments     45,895    
UBS PACE Alternative Strategies Investments     708,703    

 

UBS Global AM has entered into a written agreement with each of UBS PACE Government Securities Fixed Income Investments, UBS PACE Global Fixed Income Investments, UBS PACE Large Co Value Equity Investments and UBS PACE Large Co Growth Equity Investments under which UBS Global AM is contractually obligated to waive its management fees to the extent necessary to reflect the lower sub-advisory fees paid by UBS Global AM to each of these Portfolio's sub-advisors: Pacific Investment Management Company LLC, Rogge Global Partners plc, SSgA Funds Management, Inc. and SSgA Funds Management, Inc., respectively. Additionally, UBS PACE Large Co Value Equity Investments and UBS Global AM have entered into an additional fee waiver whereby UBS Global AM has agreed to permanently reduce its management fees based on the Portfolio's average daily net assets to the following rates: $0 to $250 million, 0.60%; in excess of $250 million up to $500 million, 0.57%; in excess of $500 million up to $1 billion, 0.53%; and over $1 billion, 0.50%.

For the six months ended January 31, 2008, UBS Global AM was contractually obligated to waive $81,331, $180,457, $1,180,017 and $329,532 in investment management and administration fees for UBS PACE Government Securities Fixed Income Investments, UBS PACE Global Fixed Income Investments, UBS PACE Large Co Value Equity Investments and UBS PACE Large Co Growth Investments, respectively. Additionally, for the six months ended January 31, 2008, UBS Global AM had the following voluntary expense reimbursements, and recoupments. The recoupments are included in the investment management and administration fees on the Statements of operations. The expense reimbursements for the six months ended January 31, 2008, which are subject to repayment by the Portfolios through December 1, 2011, were as follows:

Portfolio   Expense
reimbursements		   Recoupments  
UBS PACE Money Market Investments   $ 672,039       —    
UBS PACE Government Securities Fixed Income Investments     175,879     $ 733    
UBS PACE Intermediate Fixed Income Investments     230,401       —    
UBS PACE Strategic Fixed Income Investments     241,891       —    
UBS PACE Municipal Fixed Income Investments     142,380       —    

 


299


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

Portfolio   Expense
reimbursements		   Recoupments  
UBS PACE Global Fixed Income Investments   $ 261,248       —    
UBS PACE High Yield Investments     63,803       —    
UBS PACE Large Co Value Equity Investments     447       —    
UBS PACE Large Co Growth Equity Investments     547     $ 385    
UBS PACE Small/Medium Co Value Equity Investments     16,763       —    
UBS PACE Small/Medium Co Growth Equity Investments     37,152       —    
UBS PACE International Equity Investments     —       —    
UBS PACE International Emerging Markets Equity Investments     —       —    
UBS PACE Global Real Estate Securities Investments     134,393       —    
UBS PACE Alternative Strategies Investments     22       185,169    

 

UBS Global AM is contractually obligated to waive all or a portion of its investment management and administration fees and/or to reimburse certain operating expenses for the twelve months ending November 30, 2008 to maintain the total annual ordinary operating expenses (with certain exclusions such as dividend expense, borrowing cost and interest expense) at a level not to exceed the following:

Portfolio    
UBS PACE Money Market Investments     0.60 %  
UBS PACE Government Securities Fixed Income Investments—Class A     1.07    
UBS PACE Government Securities Fixed Income Investments—Class B     1.82    
UBS PACE Government Securities Fixed Income Investments—Class C     1.57    
UBS PACE Government Securities Fixed Income Investments—Class Y     0.82    
UBS PACE Government Securities Fixed Income Investments—Class P     0.82    
UBS PACE Intermediate Fixed Income Investments—Class A     0.93    
UBS PACE Intermediate Fixed Income Investments—Class B     1.68    
UBS PACE Intermediate Fixed Income Investments—Class C     1.43    
UBS PACE Intermediate Fixed Income Investments—Class Y     0.68    
UBS PACE Intermediate Fixed Income Investments—Class P     0.68    
UBS PACE Strategic Fixed Income Investments—Class A     1.06    
UBS PACE Strategic Fixed Income Investments—Class B     1.81    
UBS PACE Strategic Fixed Income Investments—Class C     1.56    
UBS PACE Strategic Fixed Income Investments—Class Y     0.81    
UBS PACE Strategic Fixed Income Investments—Class P     0.81    
UBS PACE Municipal Fixed Income Investments—Class A     0.93    
UBS PACE Municipal Fixed Income Investments—Class B     1.68    
UBS PACE Municipal Fixed Income Investments—Class C     1.43    
UBS PACE Municipal Fixed Income Investments—Class Y     0.68    
UBS PACE Municipal Fixed Income Investments—Class P     0.68    
UBS PACE Global Fixed Income Investments—Class A     1.25    
UBS PACE Global Fixed Income Investments—Class B     2.00    
UBS PACE Global Fixed Income Investments—Class C     1.75    
UBS PACE Global Fixed Income Investments—Class Y     1.00    
UBS PACE Global Fixed Income Investments—Class P     1.00    
UBS PACE High Yield Investments—Class A     1.35    
UBS PACE High Yield Investments—Class B     2.10    
UBS PACE High Yield Investments—Class C     1.85    
UBS PACE High Yield Investments—Class Y     1.10    

 


300


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

Portfolio    
UBS PACE High Yield Investments—Class P     1.10 %  
UBS PACE Large Co Value Equity Investments—Class A     1.27    
UBS PACE Large Co Value Equity Investments—Class B     2.02    
UBS PACE Large Co Value Equity Investments—Class C     2.02    
UBS PACE Large Co Value Equity Investments—Class Y     1.02    
UBS PACE Large Co Value Equity Investments—Class P     1.02    
UBS PACE Large Co Growth Equity Investments—Class A     1.30    
UBS PACE Large Co Growth Equity Investments—Class B     2.05    
UBS PACE Large Co Growth Equity Investments—Class C     2.05    
UBS PACE Large Co Growth Equity Investments—Class Y     1.05    
UBS PACE Large Co Growth Equity Investments—Class P     1.05    
UBS PACE Small/Medium Co Value Equity Investments—Class A     1.41    
UBS PACE Small/Medium Co Value Equity Investments—Class B     2.16    
UBS PACE Small/Medium Co Value Equity Investments—Class C     2.16    
UBS PACE Small/Medium Co Value Equity Investments—Class Y     1.16    
UBS PACE Small/Medium Co Value Equity Investments—Class P     1.16    
UBS PACE Small/Medium Co Growth Equity Investments—Class A     1.38    
UBS PACE Small/Medium Co Growth Equity Investments—Class B     2.13    
UBS PACE Small/Medium Co Growth Equity Investments—Class C     2.13    
UBS PACE Small/Medium Co Growth Equity Investments—Class Y     1.13    
UBS PACE Small/Medium Co Growth Equity Investments—Class P     1.13    
UBS PACE International Equity Investments—Class A     1.65    
UBS PACE International Equity Investments—Class B     2.40    
UBS PACE International Equity Investments—Class C     2.40    
UBS PACE International Equity Investments—Class Y     1.40    
UBS PACE International Equity Investments—Class P     1.40    
UBS PACE International Emerging Markets Equity Investments—Class A     2.25    
UBS PACE International Emerging Markets Equity Investments—Class B     3.00    
UBS PACE International Emerging Markets Equity Investments—Class C     3.00    
UBS PACE International Emerging Markets Equity Investments—Class Y     2.00    
UBS PACE International Emerging Markets Equity Investments—Class P     2.00    
UBS PACE Global Real Estate Securities Investments—Class A     1.45    
UBS PACE Global Real Estate Securities Investments—Class C     2.20    
UBS PACE Global Real Estate Securities Investments—Class Y     1.20    
UBS PACE Global Real Estate Securities Investments—Class P     1.20    
UBS PACE Alternative Strategies Investments—Class A     1.95    
UBS PACE Alternative Strategies Investments—Class B     2.70    
UBS PACE Alternative Strategies Investments—Class C     2.70    
UBS PACE Alternative Strategies Investments—Class Y     1.70    
UBS PACE Alternative Strategies Investments—Class P     1.70    

 

Each Portfolio will repay UBS Global AM for any such reimbursed payments during a three-year period following July 31, 2007, to the extent that ordinary operating expenses (with certain exclusions such as dividend expense, borrowing cost and interest expense) are otherwise below the expense caps.


301


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

At January 31, 2008, the following Portfolios had remaining expense reimbursements subject to repayment to UBS Global AM and respective dates of expiration as follows:

Portfolio   Expense
reimbursements
subject to
repayment		   Expires
July 31,
2008		   Expires
July 31,
2009		   Expires
July 31,
2010		   Expires
July 31,
2011		  
UBS PACE Money Market Investments   $ 3,705,176     $ 718,836     $ 1,115,063     $ 1,199,238     $ 672,039    
UBS PACE Government Securities Fixed Income Investments—Class A     235,164       131,857       79,695       6,440       17,172    
UBS PACE Government Securities Fixed Income Investments—Class B     8,495       5,606       2,297       158       434    
UBS PACE Government Securities Fixed Income Investments—Class C     125,886       47,054       41,525       22,421       14,886    
UBS PACE Government Securities Fixed Income Investments—Class Y     10,891       8,045       2,846       —       —    
UBS PACE Government Securities Fixed Income Investments—Class P     891,929       265,167       309,936       173,439       143,387    
UBS PACE Intermediate Fixed Income Investments—Class A     103,435       18,529       29,769       15,881       39,256    
UBS PACE Intermediate Fixed Income Investments—Class B     3,040       1,730       829       201       280    
UBS PACE Intermediate Fixed Income Investments—Class C     9,066       2,749       2,347       832       3,138    
UBS PACE Intermediate Fixed Income Investments—Class Y     1,379       606       282       —       491    
UBS PACE Intermediate Fixed Income Investments—Class P     255,837       42,345       26,256       —       187,236    
UBS PACE Strategic Fixed Income Investments—Class A     6,232       —       —       —       6,232    
UBS PACE Strategic Fixed Income Investments—Class B     1,804       770       633       19       382    
UBS PACE Strategic Fixed Income Investments—Class C     1,310       —       —       —       1,310    
UBS PACE Strategic Fixed Income Investments—Class P     693,861       213,858       246,036       —       233,967    
UBS PACE Municipal Fixed Income Investments—Class A     187,967       92,476       50,063       12,636       32,792    
UBS PACE Municipal Fixed Income Investments—Class B     4,116       2,881       953       134       148    
UBS PACE Municipal Fixed Income Investments—Class C     34,882       15,723       9,336       3,609       6,214    
UBS PACE Municipal Fixed Income Investments—Class Y     560       214       166       99       81    
UBS PACE Municipal Fixed Income Investments—Class P     349,364       66,310       93,519       86,390       103,145    
UBS PACE Global Fixed Income Investments—Class A     127,046       72,872       33,045       —       21,129    
UBS PACE Global Fixed Income Investments—Class B     1,588       977       416       —       195    
UBS PACE Global Fixed Income Investments—Class C     8,497       5,871       1,835       —       791    
UBS PACE Global Fixed Income Investments—Class P     1,384,263       369,333       438,105       337,692       239,133    
UBS PACE High Yield Investments—Class A     7,179       —       2,976       3,786       417    
UBS PACE High Yield Investments—Class Y     28,988       —       28,988       —       —    
UBS PACE High Yield Investments—Class P     437,498       —       77,698       296,414       63,386    
UBS PACE Large Co Value Equity Investments—Class B     447       —       —       —       447    
UBS PACE Large Co Growth Equity Investments—Class B     7,623       2,941       2,705       1,430       547    
UBS PACE Large Co Growth Equity Investments—Class C     256       —       256       —       —    
UBS PACE Small/Medium Co Value Equity Investments—Class B     163       —       —       —       163    
UBS PACE Small/Medium Co Value Equity Investments—Class P     132,674       31,628       84,446       —       16,600    
UBS PACE Small/Medium Co Growth Equity Investments—Class B     2,280       143       895       848       394    
UBS PACE Small/Medium Co Growth Equity Investments—Class P     491,397       154,596       188,202       111,841       36,758    
UBS PACE Global Real Estate Securities Investments—Class A     28,255       —       —       19,517       8,738    
UBS PACE Global Real Estate Securities Investments—Class C     3,253       —       —       2,563       690    
UBS PACE Global Real Estate Securities Investments—Class Y     13,331       —       —       13,331       —    
UBS PACE Global Real Estate Securities Investments—Class P     375,374       —       —       250,409       124,965    
UBS PACE Alternative Strategies Investments—Class A     50,381       —       22,383       27,998       —    
UBS PACE Alternative Strategies Investments—Class B     99       —       13       64       22    
UBS PACE Alternative Strategies Investments—Class C     2,018       —       908       1,110       —    
UBS PACE Alternative Strategies Investments—Class Y     61,695       —       61,695       —       —    
UBS PACE Alternative Strategies Investments—Class P     252,661       —       100,299       152,362       —    

 


302


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

UBS PACE Strategic Fixed Income Investments Class Y, UBS PACE Global Fixed Income Investments Class Y, UBS PACE Large Co Value Equity Investments Class A, Class C, Class Y and Class P, UBS PACE Large Co Growth Equity Investments Class A, Class Y and Class P, UBS PACE Small/Medium Co Value Equity Investments Class A, Class C and Class Y, UBS PACE Small/Medium Co Growth Equity Investments Class A, Class C and Class Y, UBS PACE International Equity Investments Class A, Class B, Class C, Class Y and Class P and UBS PACE International Emerging Markets Equity Investments Class A, Class B, Class C, Class Y and Class P have no remaining expense reimbursements subject to repayment.

At January 31, 2008, UBS Global AM owed (was owed by) certain Portfolios for expense reimbursements (recouped expense reimbursements) as follows:

Portfolio   Amounts due
(owed)		  
UBS PACE Money Market Investments   $ 119,429    
UBS PACE Government Securities Fixed Income Investments     73,138    
UBS PACE Intermediate Fixed Income Investments     60,729    
UBS PACE Strategic Fixed Income Investments     30,914    
UBS PACE Municipal Fixed Income Investments     21,575    
UBS PACE Global Fixed Income Investments     35,009    
UBS PACE High Yield Investments     8,032    
UBS PACE Large Co Value Equity Investments     84    
UBS PACE Large Co Growth Equity Investments     196    
UBS PACE Small/Medium Co Value Equity Investments     41,419    
UBS PACE Small/Medium Co Growth Equity Investments     44,203    
UBS PACE International Equity Investments     —    
UBS PACE International Emerging Markets Equity Investments     —    
UBS PACE Global Real Estate Securities Investments     7,939    
UBS PACE Alternative Strategies Investments     (38,764 )  

 

During the six months ended January 31, 2008, the Portfolios listed below paid broker commssions to affiliates of the investment manager as follows:

Affiliated Broker   UBS PACE
Large Co Value
Equity
Investments		   UBS PACE
Large Co Growth
Equity
Investments		   UBS PACE
Small/Medium
Co Value
Equity
Investments		   UBS PACE
International
Emerging Markets
Equity
Investments		   UBS PACE
Alternative
Strategies
Investments		  
UBS AG     —       —       —     $ 16,917     $ 2,108    
UBS Securities Asia Ltd.     —       —       —       6,896       70    
UBS Securities LLC   $ 1,884     $ 19,482     $ 1,244       109       2,885    
UBS Securities Hong Kong Ltd.     —       —       —       1,659       —    
UBS Securities Pte. Ltd.     —       —       —       672       24    

 

Additional information regarding compensation to an affiliate board member

Effective March 1, 2005, Professor Meyer Feldberg accepted the position of senior advisor to Morgan Stanley, resulting in him becoming an interested trustee of the Portfolios. The Portfolios have been informed that Professor Feldberg's role at Morgan Stanley does not involve matters directly affecting any UBS funds. Portfolio transactions are executed through Morgan Stanley based on that firm's ability to provide best


303


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

execution of the transactions. For the six months ended January 31, 2008, the following Portfolios paid brokerage commissions to Morgan Stanley in the amounts as follows:

UBS PACE Large Co Value Equity Investments   $ 25,803    
UBS PACE Large Co Growth Equity Investments     28,536    
UBS PACE Small/Medium Co Value Equity Investments     2,741    
UBS PACE Small/Medium Co Growth Equity Investments     545    
UBS PACE International Equity Investments     57,016    
UBS PACE International Emerging Markets Equity Investments     19,262    
UBS PACE Global Real Estate Securities Investments     5,982    
UBS PACE Alternative Strategies Investments     8,608    

 

During the six months ended January 31, 2008, the following Portfolios purchased and sold certain securities (e.g., fixed income securities) in principal trades with Morgan Stanley having aggregate values as follows:

UBS PACE Money Market Investments   $ 718,469,069    
UBS PACE Government Securities Fixed Income Investments     343,981,064    
UBS PACE Intermediate Fixed Income Investments     23,917,912    
UBS PACE Strategic Fixed Income Investments     290,042,209    
UBS PACE Municipal Fixed Income Investments     5,687,915    
UBS PACE Global Fixed Income Investments     58,455,565    
UBS PACE High Yield Investments     4,076,611    
UBS PACE Large Co Growth Equity Investments     4,217,920    
UBS PACE International Equity Investments     6,665,524    
UBS PACE International Emerging Markets Equity Investments     627,494    
UBS PACE Alternative Strategies Investments     62,272,618    

 

Morgan Stanley received compensation in connection with these trades, which may have been in the form of a "mark-up" or "mark-down" of the price of the securities, a fee from the issuer for maintaining a commercial paper program, or some other form of compensation. Although the precise amount of this compensation is not generally known by the investment manager, it is believed that under normal circumstances it represents a small portion of the total value of the transactions.

Service and distribution plans

UBS Global Asset Management (US) Inc. ("UBS Global AM (US)") is the principal underwriter of each Portfolios' shares. Under separate plans of service and/or distribution pertaining to Class A, Class B and Class C shares, the Portfolios (with the exception of UBS PACE Money Market Investments, which only offers Class P shares, and UBS PACE Global Real Estate Securities Investments, which does not offer Class B shares) pay UBS Global AM (US) monthly service fees at the annual rate of 0.25% of the average daily net assets of Class A, Class B and Class C shares and monthly distribution fees (1) at the annual rate of 0.75% of the average daily net assets of Class B and Class C shares for UBS PACE Large Co Value Equity Investments, UBS PACE Large Co Growth Equity Investments, UBS PACE Small/Medium Co Value Equity Investments, UBS PACE Small/Medium Co Growth Equity Investments, UBS PACE International Equity Investments, UBS PACE International Emerging Markets Equity Investments, UBS PACE Global Real Estate Securities Investments and UBS PACE Alternative Strategies Investments Portfolios and (2) at the annual rate of 0.75% and 0.50% of the average daily net assets of Class B and Class C shares, respectively, for UBS PACE Government Securities Fixed Income Investments, UBS PACE Intermediate Fixed Income Investments, UBS PACE Strategic Fixed Income Investments, UBS PACE Municipal Fixed Income Investments, UBS PACE Global Fixed Income Investments and UBS PACE High Yield Investments Portfolios.


304


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

UBS Global AM (US) also receives the proceeds of the initial sales charges paid upon the purchase of Class A shares and the contingent deferred sales charges paid by shareholders upon certain redemptions of Class A, Class B and Class C shares.

At January 31, 2008, certain Portfolios owed UBS Global AM (US) service and distribution fees, and for the six months ended January 31, 2008, certain Portfolios were informed by UBS Global AM (US) that it had earned sales charges as follows:

Portfolio   Service and
distribution
fees owed		   Sales charges
earned by
distributor		  
UBS PACE Government Securities Fixed Income Investments—Class A   $ 20,646     $ 4,413    
UBS PACE Government Securities Fixed Income Investments—Class B     909       1,772    
UBS PACE Government Securities Fixed Income Investments—Class C     17,087       23    
UBS PACE Intermediate Fixed Income Investments—Class A     11,060       1,193    
UBS PACE Intermediate Fixed Income Investments—Class B     227       —    
UBS PACE Intermediate Fixed Income Investments—Class C     2,480       4    
UBS PACE Strategic Fixed Income Investments—Class A     4,937       6,971    
UBS PACE Strategic Fixed Income Investments—Class B     196       888    
UBS PACE Strategic Fixed Income Investments—Class C     3,594       118    
UBS PACE Municipal Fixed Income Investments—Class A     19,957       15,655    
UBS PACE Municipal Fixed Income Investments—Class B     135       167    
UBS PACE Municipal Fixed Income Investments—Class C     9,356       —    
UBS PACE Global Fixed Income Investments—Class A     24,725       15,985    
UBS PACE Global Fixed Income Investments—Class B     523       330    
UBS PACE Global Fixed Income Investments—Class C     4,356       —    
UBS PACE High Yield Investments—Class A     210       —    
UBS PACE Large Co Value Equity Investments—Class A     55,578       13,012    
UBS PACE Large Co Value Equity Investments—Class B     1,125       1,013    
UBS PACE Large Co Value Equity Investments—Class C     25,981       753    
UBS PACE Large Co Growth Equity Investments—Class A     17,086       10,910    
UBS PACE Large Co Growth Equity Investments—Class B     380       727    
UBS PACE Large Co Growth Equity Investments—Class C     5,896       6    
UBS PACE Small/Medium Co Value Equity Investments—Class A     8,390       4,999    
UBS PACE Small/Medium Co Value Equity Investments—Class B     525       1,347    
UBS PACE Small/Medium Co Value Equity Investments—Class C     8,094       142    
UBS PACE Small/Medium Co Growth Equity Investments—Class A     9,584       5,496    
UBS PACE Small/Medium Co Growth Equity Investments—Class B     184       78    
UBS PACE Small/Medium Co Growth Equity Investments—Class C     5,060       —    
UBS PACE International Equity Investments—Class A     25,982       13,948    
UBS PACE International Equity Investments—Class B     357       307    
UBS PACE International Equity Investments—Class C     6,975       995    
UBS PACE International Emerging Markets Investments—Class A     6,974       29,388    
UBS PACE International Emerging Markets Investments—Class B     415       506    
UBS PACE International Emerging Markets Investments—Class C     6,577       699    
UBS PACE Global Real Estate Securities Investments—Class A     1,507       5,965    
UBS PACE Global Real Estate Securities Investments—Class C     263       857    
UBS PACE Alternative Strategies Investments—Class A     21,331       45,384    

 


305


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

Portfolio   Service and
distribution
fees owed		   Sales charges
earned by
distributor		  
UBS PACE Alternative Strategies Investments—Class B   $ 22     $ —    
UBS PACE Alternative Strategies Investments—Class C     5,779       1,541    

 

Redemption fees

The Portfolios, except for UBS PACE Money Market Investments, charge a 1.00% redemption fee if you sell or exchange any class of shares less than 90 days after purchase, subject to certain exemptions as noted in the prospectuses.

For the six months ended January 31, 2008, the following Portfolios received redemption fees as follows:

Portfolio   Redemption
fees received		  
UBS PACE Government Securities Fixed Income Investments   $ 15,334    
UBS PACE Intermediate Fixed Income Investments     10,209    
UBS PACE Strategic Fixed Income Investments     18,847    
UBS PACE Municipal Fixed Income Investments     7,660    
UBS PACE Global Fixed Income Investments     12,019    
UBS PACE High Yield Investments     5,415    
UBS PACE Large Co Value Equity Investments     29,058    
UBS PACE Large Co Growth Equity Investments     32,035    
UBS PACE Small/Medium Co Value Equity Investments     14,282    
UBS PACE Small/Medium Co Growth Equity Investments     12,250    
UBS PACE International Equity Investments     26,770    
UBS PACE International Emerging Markets Equity Investments     20,016    
UBS PACE Global Real Estate Securities Investments     9,358    
UBS PACE Alternative Strategies Investments     36,767    

 

Transfer agency and related services fees

UBS Financial Services Inc. provides certain services pursuant to a delegation of authority from PFPC Inc. ("PFPC"), the Portfolios' transfer agent, and was compensated for these services by PFPC, not the Portfolios.

For the period ended January 31, 2008, UBS Financial Services Inc. received from PFPC, not the Portfolios, total delegated services fees as follows:

Portfolio   Delegated
services
fees earned		  
UBS PACE Money Market Investments   $ 495,395    
UBS PACE Government Securities Fixed Income Investments     227,197    
UBS PACE Intermediate Fixed Income Investments     110,791    
UBS PACE Strategic Fixed Income Investments     307,195    
UBS PACE Municipal Fixed Income Investments     56,683    
UBS PACE Global Fixed Income Investments     340,136    
UBS PACE High Yield Investments     73,948    
UBS PACE Large Co Value Equity Investments     423,883    
UBS PACE Large Co Growth Equity Investments     386,441    

 


306


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

Portfolio   Delegated
services
fees earned		  
UBS PACE Small/Medium Co Value Equity Investments   $ 366,912    
UBS PACE Small/Medium Co Growth Equity Investments     366,156    
UBS PACE International Equity Investments     376,628    
UBS PACE International Emerging Markets Equity Investments     329,466    
UBS PACE Global Real Estate Securities Investments     75,418    
UBS PACE Alternative Strategies Investments     115,497    

 

For the six months ended January 31, 2008, each Portfolio accrued transfer agency and related services fees payable to PFPC on each class as follows:

Portfolio   Transfer agency
and related
services fees		  
UBS PACE Money Market Investments   $ 991,802    
UBS PACE Government Securities Fixed Income Investments—Class A     59,193    
UBS PACE Government Securities Fixed Income Investments—Class B     1,037    
UBS PACE Government Securities Fixed Income Investments—Class C     26,307    
UBS PACE Government Securities Fixed Income Investments—Class Y     1,110    
UBS PACE Government Securities Fixed Income Investments—Class P     358,044    
UBS PACE Intermediate Fixed Income Investments—Class A     38,645    
UBS PACE Intermediate Fixed Income Investments—Class B     277    
UBS PACE Intermediate Fixed Income Investments—Class C     3,088    
UBS PACE Intermediate Fixed Income Investments—Class Y     480    
UBS PACE Intermediate Fixed Income Investments—Class P     181,338    
UBS PACE Strategic Fixed Income Investments—Class A     13,710    
UBS PACE Strategic Fixed Income Investments—Class B     505    
UBS PACE Strategic Fixed Income Investments—Class C     3,196    
UBS PACE Strategic Fixed Income Investments—Class Y     95    
UBS PACE Strategic Fixed Income Investments—Class P     481,984    
UBS PACE Municipal Fixed Income Investments—Class A     21,395    
UBS PACE Municipal Fixed Income Investments—Class B     125    
UBS PACE Municipal Fixed Income Investments—Class C     4,319    
UBS PACE Municipal Fixed Income Investments—Class Y     65    
UBS PACE Municipal Fixed Income Investments—Class P     74,924    
UBS PACE Global Fixed Income Investments—Class A     80,205    
UBS PACE Global Fixed Income Investments—Class B     517    
UBS PACE Global Fixed Income Investments—Class C     4,219    
UBS PACE Global Fixed Income Investments—Class Y     563    
UBS PACE Global Fixed Income Investments—Class P     486,960    
UBS PACE High Yield Investments—Class A     641    
UBS PACE High Yield Investments—Class P     91,444    
UBS PACE Large Co Value Equity Investments—Class A     139,691    
UBS PACE Large Co Value Equity Investments—Class B     2,760    
UBS PACE Large Co Value Equity Investments—Class C     23,314    
UBS PACE Large Co Value Equity Investments—Class Y     1,222    
UBS PACE Large Co Value Equity Investments—Class P     646,799    

 


307


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

Portfolio   Transfer agency
and related
services fees		  
UBS PACE Large Co Growth Equity Investments—Class A   $ 60,353    
UBS PACE Large Co Growth Equity Investments—Class B     1,205    
UBS PACE Large Co Growth Equity Investments—Class C     9,093    
UBS PACE Large Co Growth Equity Investments—Class Y     377    
UBS PACE Large Co Growth Equity Investments—Class P     647,255    
UBS PACE Small/Medium Co Value Equity Investments—Class A     28,226    
UBS PACE Small/Medium Co Value Equity Investments—Class B     1,284    
UBS PACE Small/Medium Co Value Equity Investments—Class C     7,948    
UBS PACE Small/Medium Co Value Equity Investments—Class Y     637    
UBS PACE Small/Medium Co Value Equity Investments—Class P     629,117    
UBS PACE Small/Medium Co Growth Equity Investments—Class A     34,008    
UBS PACE Small/Medium Co Growth Equity Investments—Class B     701    
UBS PACE Small/Medium Co Growth Equity Investments—Class C     5,526    
UBS PACE Small/Medium Co Growth Equity Investments—Class Y     257    
UBS PACE Small/Medium Co Growth Equity Investments—Class P     626,665    
UBS PACE International Equity Investments—Class A     65,457    
UBS PACE International Equity Investments—Class B     576    
UBS PACE International Equity Investments—Class C     7,082    
UBS PACE International Equity Investments—Class Y     1,280    
UBS PACE International Equity Investments—Class P     545,571    
UBS PACE International Emerging Markets Equity Investments—Class A     19,529    
UBS PACE International Emerging Markets Equity Investments—Class B     464    
UBS PACE International Emerging Markets Equity Investments—Class C     4,611    
UBS PACE International Emerging Markets Equity Investments—Class Y     1,247    
UBS PACE International Emerging Markets Equity Investments—Class P     571,702    
UBS PACE Global Real Estate Securities Investments—Class A     2,669    
UBS PACE Global Real Estate Securities Investments—Class C     319    
UBS PACE Global Real Estate Securities Investments—Class P     67,421    
UBS PACE Alternative Strategies Investments—Class A     27,312    
UBS PACE Alternative Strategies Investments—Class B     40    
UBS PACE Alternative Strategies Investments—Class C     1,454    
UBS PACE Alternative Strategies Investments—Class P     146,063    

 

Securities lending

Each Portfolio may lend securities up to 331/3% of its total assets to qualified broker-dealers or institutional investors. The loans are secured at all times by cash, US government securities or irrevocable letters of credit in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. The Portfolio will regain ownership of loaned securities to exercise certain beneficial rights; however, each Portfolio may bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower fail financially. Each Portfolio receives compensation for lending its securities from interest or dividends earned on the cash, US government securities or irrevocable letters of credit held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees. UBS Financial Services Inc. an indirect wholly owned subsidiary of UBS AG, and other affiliated broker-dealers have been approved as borrowers under the Portfolios' securities lending program. UBS Securities LLC is each Portfolio's lending agent.


308


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

For the six months ended January 31, 2008, UBS Securities LLC earned compensation from certain Portfolios as the Portfolios' lending agent as follows:

Portfolio   Compensation  
UBS PACE Intermediate Fixed Income Investments   $ 15,532    
UBS PACE Strategic Fixed Income Investments     4,712    
UBS PACE Global Fixed Income Investments     12,511    
UBS PACE High Yield Investments     6,862    
UBS PACE Large Co Value Equity Investments     85,613    
UBS PACE Large Co Growth Equity Investments     97,933    
UBS PACE Small/Medium Co Value Equity Investments     127,966    
UBS PACE Small/Medium Co Growth Equity Investments     170,120    
UBS PACE International Equity Investments     74,999    
UBS PACE International Emerging Markets Equity Investments     77,221    
UBS PACE Global Real Estate Securities Investments     5,781    

 

At January 31, 2008, certain Portfolios owed UBS Securities LLC compensation as the Portfolios' lending agent as follows:

Portfolio   Amounts
owed		  
UBS PACE Intermediate Fixed Income Investments   $ 4,988    
UBS PACE Strategic Fixed Income Investments     722    
UBS PACE High Yield Investments     1,385    
UBS PACE Large Co Value Equity Investments     10,295    
UBS PACE Large Co Growth Equity Investments     17,750    
UBS PACE Small/Medium Co Value Equity Investments     24,757    
UBS PACE Small/Medium Co Growth Equity Investments     33,345    
UBS PACE International Equity Investments     21,617    
UBS PACE International Emerging Markets Equity Investments     15,244    
UBS PACE Global Real Estate Securities Investments     1,683    

 

At January 31, 2008, UBS PACE Large Co Value Equity Investments, UBS PACE Large Co Growth Equity Investments, UBS PACE Small/Medium Co Value Equity Investments and UBS PACE Small/Medium Co Growth Equity Investments had securities on loan having a market value of $140,060,968, $130,404,249, $141,912,805, and $90,927,667, respectively. The custodian for UBS PACE Large Co Value Equity Investments, UBS PACE Large Co Growth Equity Investments, UBS PACE Small/Medium Co Value Equity Investments and UBS Small/Medium Co Growth Equity Investments held cash and cash equivalents as collateral for securities loaned of $116,162,330, $126,624,724, $136,150,806 and $91,415,455, respectively. In addition UBS PACE Large Co Value Equity Investments, UBS PACE Large Co Growth Equity, UBS PACE Small/Medium Co Value Equity Investments and UBS PACE Small/Medium Co Growth Equity


309


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

Investments held US Government and agency obligations having an aggregate value of $25,297,859, $4,969,517, $7,221,571 and $943,116, respectively as collateral for portfolio securities loaned as follows:

Face
amount
(000)		   Maturity
dates		   Interest
rates		   Value  
UBS PACE Large Co Value Equity Investments  
$624 Federal Home Loan Bank   11/28/08     4.600 %   $ 638,570    
24,633 Federal Home Loan Mortgage Corp. Discount Note   02/08/08     0.000       24,618,220    
37 US Treasury Inflation Index Bonds   01/15/26     2.000       41,069    
                $ 25,297,859    
UBS PACE Large Co Growth Equity Investments  
4,973 Federal Home Loan Mortgage Corp. Discount Note   02/08/08     0.000 %   $ 4,969,517    
UBS PACE Small/Medium Co Value Equity Investments  
6,700 Federal National Mortgage Association   08/24/27     6.110 %   $ 7,221,571    
UBS PACE Small/Medium Co Growth Equity Investments  
875 Federal National Mortgage Association   08/24/27     6.110 %   $ 943,116    

 

Bank line of credit

Each Portfolio, other than UBS PACE Money Market Investments, UBS PACE Large Co Value Equity Investments, UBS PACE Large Co Growth Equity Investments and UBS PACE Alternative Strategies Investments, participates with other funds managed, advised or sub-advised by UBS Global AM in a $100 million committed credit facility with State Street Bank and Trust Company ("Committed Credit Facility"), to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of each Portfolio at the request of shareholders and other temporary or emergency purposes. Under the Committed Credit Facility arrangement, each Portfolio has agreed to pay commitment fees, pro rata, based on the relative asset size of the funds in the Committed Credit Facility. Interest is charged to each Portfolio at the overnight federal funds rate in effect at the time of borrowings, plus 0.50%. For the six months ended January 31, 2008, the following Portfolios had borrowings:

Portfolio   Average daily
amount of
borrowing
outstanding		   Days
outstanding		   Weighted average
annualized
interest rate		   Interest
expense		  
UBS PACE International Equity Investments   $ 2,232,381       14       5.35 %   $ 4,645    
UBS PACE International Emerging Markets Equity Investments     1,655,208       23       4.99       5,277    

 

UBS PACE Large Co Value Equity Investments, UBS PACE Large Co Growth Equity Investments and UBS PACE Alternative Strategies Investments participate with other funds advised by UBS Global AM, in a $75 million committed credit facility with JP Morgan Chase Bank ("JPMorgan Chase Bank Facility"), to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of each Portfolio at the request of shareholders and other temporary or emergency purposes. Under the JPMorgan Chase Bank Facility arrangement, each Portfolio has agreed to pay commitment fees, pro rata, based on the relative asset size of the funds in the JPMorgan Chase Bank Facility. Interest is charged to each Portfolio at the overnight federal funds rate in effect at the time of borrowings, plus 0.50%. For the six months ended January 31, 2008, none of the Portfolios borrowed under the JPMorgan Chase Bank Facility.


310


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

Purchases and sales of securities

For the six months ended January 31, 2008, aggregate purchases and sales of portfolio securities, excluding short-term securities and US Government and agency securities, were as follows:

Portfolio   Purchases   Sales  
UBS PACE Government Securities Fixed Income Investments   $ 2,253,584,072     $ 39,085,512    
UBS PACE Intermediate Fixed Income Investments     640,175,791       608,876,959    
UBS PACE Strategic Fixed Income Investments     936,956,388       845,527,668    
UBS PACE Municipal Fixed Income Investments     75,223,138       40,188,816    
UBS PACE Global Fixed Income Investments     252,535,442       201,363,638    
UBS PACE High Yield Investments     46,932,940       11,467,393    
UBS PACE Large Co Value Equity Investments     1,175,852,954       1,127,427,674    
UBS PACE Large Co Growth Equity Investments     1,064,271,414       964,588,081    
UBS PACE Small/Medium Co Value Equity Investments     140,291,946       110,431,341    
UBS PACE Small/Medium Co Growth Equity Investments     337,316,135       317,712,724    
UBS PACE International Equity Investments     478,099,302       416,013,477    
UBS PACE International Emerging Markets Equity Investments     122,651,204       124,104,308    
UBS PACE Global Real Estate Securities Investments     45,066,278       16,754,149    
UBS PACE Alternative Strategies Investments     976,601,824       791,498,134    

 

For the six months ended January 31, 2008, aggregate purchases and sales of US Government and agency securities, excluding short-term securities, were as follows:

Portfolio   Purchases   Sales  
UBS PACE Government Securities Fixed Income Investments   $ 193,810,906     $ 2,251,287,523    
UBS PACE Intermediate Fixed Income Investments     494,132,198       437,239,849    
UBS PACE Strategic Fixed Income Investments     297,615,964       311,669,201    
UBS PACE Global Fixed Income Investments     64,628,605       57,026,923    
UBS PACE Alternative Strategies Investments     21,052,251       45,150,661    

 

Commission recapture program

The board has approved a brokerage commission recapture program for the following Portfolios: UBS PACE Large Co Value Equity Investments, UBS PACE Large Co Growth Equity Investments, UBS PACE Small/Medium Co Value Equity Investments, UBS PACE Small/Medium Co Growth Equity Investments, UBS PACE International Equity Investments, UBS PACE International Emerging Markets Equity Investments, UBS PACE Global Real Estate Securities Investments and UBS PACE Alternative Strategies Investments. These Portfolios have established commission recapture arrangements with certain participating brokers or dealers. If a Portfolio's investment sub-advisor chooses to execute a transaction through a participating broker, the broker will rebate a portion of the commission back to the Portfolio. Any collateral benefit received through participation in the commission recapture program is directed exclusively to the Portfolio. The recaptured commissions are reflected on the Statement of operations within the net realized and unrealized gains (losses) on investment activities.

Federal tax status

Each of the Portfolios intends to distribute substantially all of its income and to comply with the other requirements of the Internal Revenue Code applicable to regulated investment companies. Accordingly, no provision for federal income taxes is required. In addition, by distributing during each calendar year substantially all of its net investment income, net realized capital gains and certain other amounts, if any, each Portfolio intends not to be subject to a federal excise tax.


311


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

The tax character of distributions paid during the fiscal year ended July 31, 2007 was as follows:

Portfolio   Tax-
exempt
income		   Ordinary
income		   Long term
realized
capital gains		   Return of
capital		  
UBS PACE Money Market Investments     —     $ 18,020,741       —       —    
UBS PACE Government Securities Fixed Income Investments     —       26,002,641       —       —    
UBS PACE Intermediate Fixed Income Investments     —       17,053,203       —       —    
UBS PACE Strategic Fixed Income Investments     —       26,923,068       —     $ 1,277,570    
UBS PACE Municipal Fixed Income Investments   $ 9,123,470       11,064       —       —    
UBS PACE Global Fixed Income Investments     —       14,896,076       —       —    
UBS PACE High Yield Investments     —       3,012,423       —       —    
UBS PACE Large Co Value Equity Investments     —       48,854,986     $ 145,740,298       —    
UBS PACE Large Co Growth Equity Investments     —       2,301,210       —       —    
UBS PACE Small/Medium Co Value Equity Investments     —       6,137,100       13,609,262       —    
UBS PACE Small/Medium Co Growth Equity Investments     —       —       12,876,558       —    
UBS PACE International Equity Investments     —       24,822,380       98,788,375       —    
UBS PACE International Emerging Markets Equity Investments     —       17,939,705       29,570,715       —    
UBS PACE Global Real Estate Securities Investments     —       43,202       —       —    
UBS PACE Alternative Strategies Investments     —       941,267       —       —    

 

The tax character of distributions paid and the components of accumulated earnings (deficit) on a tax basis for the current fiscal year will be determined after the Trust's fiscal year ending July 31, 2008.

At July 31, 2007, the following Portfolios had net capital loss carryforwards available as reductions, to the extent provided in the regulations, of future net realized capital gains. These losses expire as follows:

Fiscal
year
ending		   UBS PACE
Money
Market
Investments		   UBS PACE
Government
Securities
Fixed
Income
Investments		   UBS PACE
Intermediate
Fixed
Income
Investments		   UBS PACE
Strategic
Fixed
Income
Investments		   UBS PACE
Municipal
Fixed
Income
Investments		   UBS PACE
Global Fixed
Income
Investments		  
  2008       —       —     $ 3,620,638       —     $ 1,519,395       —    
  2009       —       —       —       —       —       —    
  2010       —       —       —       —       —       —    
  2011       —       —       9,353,216       —       —       —    
  2012       —       —       7,849,781       —       —       —    
  2013       —       —       —       —       —       —    
  2014     $ 272     $ 754,479       3,023,333     $ 4,672,538       —       —    
  2015       177       4,836,866       1,958,404       1,370,632       1,001,609     $ 6,340,375    
  Total     $ 449     $ 5,591,345     $ 25,805,372     $ 6,043,170     $ 2,521,004     $ 6,340,375    

 

During the fiscal year ended July 31, 2007, the following Portfolios utilized capital loss carryforwards to offset realized gains:

Portfolio   Capital loss
carryforwards
utilized		  
UBS PACE Municipal Fixed Income Investments   $ 179,275    
UBS PACE High Yield Investments     37,499    
UBS PACE Large Co Growth Equity Investments     105,450,236    
UBS PACE Alternative Strategies Investments     308,760    

 


312


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

In accordance with US Treasury regulations, the following Portfolios have elected to defer realized capital losses, foreign currency losses and passive foreign investment company losses ("PFIC") arising after October 31, 2006. Such losses are treated for tax purposes as arising on August 1, 2007:

Portfolio   Capital
losses		   Foreign
currency
losses		   PFIC
losses		  
UBS PACE Money Market Investments   $ 150       —       —    
UBS PACE Government Securities Fixed Income Investments     651,843       —       —    
UBS PACE Intermediate Fixed Income Investments     —     $ 413,647       —    
UBS PACE Strategic Fixed Income Investments     1,409,449       2,819,177       —    
UBS PACE Municipal Fixed Income Investments     985,953       —       —    
UBS PACE Global Fixed Income Investments     964,298       —       —    
UBS PACE High Yield Investments     —       84,228       —    
UBS PACE International Equity Investments     —       440,762     $ 1,298,699    
UBS PACE International Emerging Markets Equity Investments     —       277,590       —    
UBS PACE Alternative Strategies Investments     547,153       661,144       —    

 

For federal income tax purposes, which was substantially the same for book purposes, the tax cost of investments and the components of net unrealized appreciation (depreciation) of investments at January 31, 2008 were as follows:

Portfolio   Tax
cost of
investments		   Gross
unrealized
appreciation		   Gross
unrealized
depreciation		   Net
unrealized
appreciation
(depreciation)		  
UBS PACE Money Market Investments   $ 533,348,049       —       —       —    
UBS PACE Government Securities Fixed Income Investments     941,795,458     $ 16,352,062     $ (2,742,242 )   $ 13,609,820    
UBS PACE Intermediate Fixed Income Investments     565,083,662       11,236,010       (2,058,181 )     9,177,829    
UBS PACE Strategic Fixed Income Investments     835,813,017       18,846,053       (10,703,794 )     8,142,259    
UBS PACE Municipal Fixed Income Investments     333,042,729       9,015,300       (1,061,548 )     7.953.752    
UBS PACE Global Fixed Income Investments     585,635,191       56,971,019       (448,294 )     56,522,725    
UBS PACE High Yield Investments     135,696,616       272,498       (5,310,411 )     (5,037,913 )  
UBS PACE Large Co Value Equity Investments     1,728,756,770       116,674,685       (87,381,921 )     29,292,764    
UBS PACE Large Co Growth Equity Investments     1,520,010,106       95,967,223       (83,603,273 )     12,363,950    
UBS PACE Small/Medium Co Value Equity Investments     669,196,465       55,871,311       (80,390,854 )     (24,519,543 )  
UBS PACE Small/Medium Co Growth Equity Investments     632,005,076       55,471,593       (54,853,745 )     617,848    
UBS PACE International Equity Investments     1,298,035,988       192,535,238       (77,133,176 )     115,402,062    
UBS PACE International Emerging Markets Equity Investments     418,169,204       100,225,981       (18,162,611 )     82,063,370    
UBS PACE Global Real Estate Securities Investments     83,736,639       1,402,675       (8,993,522 )     (7,590,847 )  
UBS PACE Alternative Strategies Investments     648,703,970       10,186,308       (26,145,410 )     (15,959,102 )  

 

The Portfolios adopted the provisions of Financial Accounting Standards Board Interpretation No. 48 ("FIN 48"), Accounting for Uncertainty in Income Taxes. The implementation of FIN 48 resulted in no material liabilities for unrecognized tax benefits and no material changes to the beginning net asset values of the Portfolios.

As of and during the period ended January 31, 2008, the Portfolios did not have any liabilities for any unrecognized tax benefits. The Portfolios recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of operations. During the period, the Portfolios did not incur any interest or penalties.


313


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

Each of the tax years in the three year period ended July 31, 2007, remains subject to examination by the Internal Revenue Service and state taxing authorities. The adoption of FIN 48 had no impact on the operations of the Portfolios for the period ended January 31, 2008.

Capital Contribution from custodian/investment manager/sub-advisor

On October 7, 2007 UBS PACE Strategic Fixed Income Investments recorded a capital contribution from State Street Bank and Trust Company, in the amount of $23,174. This amount was paid by State Street Bank and Trust Company in connection with the incorrect valuations of swaps held by the Portfolio.

On October 31, 2006, UBS PACE Alternative Strategies Investments recorded a capital contribution from UBS Global AM, in the amount of $16,960. This amount was paid by UBS Global AM in connection with the inclusion of dividend and interest expense as operating expenses for the purpose of computing expense reimbursement. Effective December 1, 2006, dividend and interest expense was excluded from operating expenses for purposes of computing required expense waiver/reimbursement. On February 8, 2007, UBS PACE Alternative Strategies Investments recorded a capital contribution from Wellington Management Company, LLP, in the amount of $288. This amount was paid by the sub-advisor in connection with losses incurred due to the disposition of a restricted security.

Shares of beneficial interest

There is an unlimited amount of $0.001 par value shares of beneficial interest authorized. Transactions in shares of beneficial interest for each of the Portfolios, except UBS PACE Money Market Investments, about which similar information is provided on the Statement of changes in net assets, were as follows:

UBS PACE Government Securities Fixed Income Investments

For the six months ended January 31, 2008:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     101,440     $ 1,322,553       7,727     $ 99,482       13,311     $ 172,929    
Shares repurchased     (716,447 )     (9,288,855 )     (12,383 )     (160,578 )     (126,620 )     (1,654,353 )  
Shares converted from Class B to Class A     43,077       559,163       (43,058 )     (559,163 )     —       —    
Dividends reinvested     113,670       1,476,350       1,387       17,997       31,609       410,876    
Net decrease     (458,260 )   $ (5,930,789 )     (46,327 )   $ (602,262 )     (81,700 )   $ (1,070,548 )  
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     535,237     $ 6,981,526       6,909,175     $ 89,885,123                    
Shares repurchased     (309,945 )     (4,046,773 )     (3,502,073 )     (45,574,382 )                  
Dividends reinvested     27,778       361,216       883,307       11,482,368                    
Net increase     253,070     $ 3,295,969       4,290,409     $ 55,793,109                    

 


314


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

UBS PACE Government Securities Fixed Income Investments (concluded)

For the year ended July 31, 2007:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     134,054     $ 1,731,447       4,512     $ 57,512       23,254     $ 301,702    
Shares repurchased     (1,661,661 )     (21,401,513 )     (36,190 )     (466,052 )     (400,921 )     (5,164,560 )  
Shares converted from Class B to Class A     63,899       826,307       (63,881 )     (826,307 )     —       —    
Dividends reinvested     257,980       3,317,717       4,352       56,005       70,936       912,898    
Net decrease     (1,205,728 )   $ (15,526,042 )     (91,207 )   $ (1,178,842 )     (306,731 )   $ (3,949,960 )  
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     671,628     $ 8,659,534       12,765,672     $ 164,474,760                    
Shares repurchased     (301,397 )     (3,867,355 )     (7,589,795 )     (97,752,292 )                  
Dividends reinvested     37,975       488,112       1,497,772       19,253,530                    
Net increase     408,206     $ 5,280,291       6,673,649     $ 85,975,998                    

 

UBS PACE Intermediate Fixed Income Investments

For the six months ended January 31, 2008:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     159,971     $ 1,863,602       2,401     $ 28,330       41,101     $ 486,119    
Shares repurchased     (379,457 )     (4,403,602 )     (102 )     (1,205 )     (50,287 )     (581,226 )  
Shares converted from Class B to Class A     7,284       85,045       (7,269 )     (85,045 )     —       —    
Dividends reinvested     67,570       785,505       250       2,911       4,449       51,762    
Net decrease     (144,632 )   $ (1,669,450 )     (4,720 )   $ (55,009 )     (4,737 )   $ (43,345 )  
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     41,897     $ 490,444       5,296,558     $ 61,721,578                    
Shares repurchased     (42,603 )     (496,961 )     (3,757,150 )     (43,767,507 )                  
Dividends reinvested     2,397       27,889       749,185       8,714,123                    
Net increase     1,691     $ 21,372       2,288,593     $ 26,668,194                    

 

For the year ended July 31, 2007:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     443,562     $ 5,058,084       1,758     $ 20,186       9,132     $ 103,998    
Shares repurchased     (1,359,253 )     (15,483,712 )     (7,446 )     (84,768 )     (126,982 )     (1,444,284 )  
Shares converted from Class B to Class A     23,111       262,305       (23,070 )     (262,305 )     —       —    
Dividends reinvested     129,814       1,474,926       744       8,476       9,170       104,287    
Net decrease     (762,766 )   $ (8,688,397 )     (28,014 )   $ (318,411 )     (108,680 )   $ (1,235,999 )  
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     64,260     $ 730,859       10,654,090     $ 121,327,378                    
Shares repurchased     (54,334 )     (618,427 )     (9,145,085 )     (104,041,723 )                  
Dividends reinvested     4,548       51,681       1,264,803       14,373,953                    
Net increase     14,474     $ 164,113       2,773,808     $ 31,659,608                    

 


315


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

UBS PACE Strategic Fixed Income Investments

For the six months ended January 31, 2008:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     255,729     $ 3,554,896       54     $ 728       19,016     $ 264,090    
Shares repurchased     (251,147 )     (3,447,686 )     (5,947 )     (80,856 )     (41,375 )     (566,791 )  
Shares converted from Class B to Class A     12,528       171,342       (12,530 )     (171,342 )     —       —    
Dividends reinvested     29,417       404,032       367       5,008       6,549       89,917    
Net increase (decrease)     46,527     $ 682,584       (18,056 )   $ (246,462 )     (15,810 )   $ (212,784 )  
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     70,031     $ 968,497       9,071,534     $ 124,516,855                    
Shares repurchased     (6,791 )     (92,611 )     (5,368,435 )     (73,859,033 )                  
Dividends reinvested     2,835       39,024       1,232,066       16,912,039                    
Net increase     66,075     $ 914,910       4,935,165     $ 67,569,861                    

 

For the year ended July 31, 2007:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     428,991     $ 5,772,014       2,710     $ 36,298       12,713     $ 171,486    
Shares repurchased     (444,438 )     (5,972,428 )     (17,537 )     (236,354 )     (82,624 )     (1,109,830 )  
Shares converted from Class B to Class A     34,988       470,820       (35,001 )     (470,820 )     —       —    
Dividends reinvested     55,164       739,454       1,405       18,851       13,653       183,113    
Net increase (decrease)     74,705     $ 1,009,860       (48,423 )   $ (652,025 )     (56,258 )   $ (755,231 )  
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     60,808     $ 817,824       18,024,454     $ 241,950,231                    
Shares repurchased     (26,807 )     (357,609 )     (9,392,784 )     (126,006,312 )                  
Dividends reinvested     3,155       42,209       1,988,072       26,626,325                    
Net increase     37,156     $ 502,424       10,619,742     $ 142,570,244                    

 

UBS PACE Municipal Fixed Income Investments

For the six months ended January 31, 2008:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     657,394     $ 8,088,435       16     $ 200       10,854     $ 133,781    
Shares repurchased     (618,042 )     (7,603,928 )     (661 )     (8,175 )     (54,689 )     (674,804 )  
Shares converted from Class B to Class A     7,883       97,119       (7,883 )     (97,119 )     —       —    
Dividends reinvested     83,633       1,030,777       90       1,109       13,112       161,611    
Net increase (decrease)     130,868     $ 1,612,403       (8,438 )   $ (103,985 )     (30,723 )   $ (379,412 )  
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     —     $ —       4,077,252     $ 50,268,679                    
Shares repurchased     (154 )     (1,892 )     (1,500,829 )     (18,509,313 )                  
Dividends reinvested     73       903       304,150       3,750,309                    
Net increase (decrease)     (81 )   $ (989 )     2,880,573     $ 35,509,675                    

 


316


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

UBS PACE Municipal Fixed Income Investments (concluded)

For the year ended July 31, 2007:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     220,505     $ 2,726,185       3,113     $ 37,981       4,249     $ 53,077    
Shares repurchased     (1,118,622 )     (13,799,131 )     (32,887 )     (406,984 )     (232,995 )     (2,871,558 )  
Shares converted from Class B to Class A     29,729       366,019       (29,715 )     (366,019 )     —       —    
Dividends reinvested     169,532       2,088,136       453       5,594       26,806       330,225    
Net decrease     (698,856 )   $ (8,618,791 )     (59,036 )   $ (729,428 )     (201,940 )   $ (2,488,256 )  
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     472     $ 5,831       6,824,982     $ 84,086,119                    
Shares repurchased     (3,742 )     (46,351 )     (2,794,385 )     (34,451,180 )                  
Dividends reinvested     164       2,022       439,622       5,411,125                    
Net increase (decrease)     (3,106 )   $ (38,498 )     4,470,219     $ 55,046,064                    

 

UBS PACE Global Fixed Income Investments

For the six months ended January 31, 2008:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     226,159     $ 2,679,968       12,955     $ 152,547       18,974     $ 222,923    
Shares repurchased     (641,154 )     (7,541,253 )     (11,610 )     (133,616 )     (18,075 )     (214,241 )  
Shares converted from Class B to Class A     5,941       69,711       (5,928 )     (69,711 )     —       —    
Dividends reinvested     503,826       5,721,037       1,596       18,134       30,475       345,599    
Net increase (decrease)     94,772     $ 929,463       (2,987 )   $ (32,646 )     31,374     $ 354,281    
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     80,813     $ 957,132       6,796,674     $ 80,176,628                    
Shares repurchased     (43,968 )     (516,211 )     (3,465,919 )     (40,943,424 )                  
Dividends reinvested     44,631       506,276       2,846,813       32,341,216                    
Net increase     81,476     $ 947,197       6,177,568     $ 71,574,420                    

 

For the year ended July 31, 2007:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     481,056     $ 5,412,104       5,077     $ 56,761       23,278     $ 259,235    
Shares repurchased     (1,944,452 )     (21,855,698 )     (11,323 )     (126,978 )     (146,041 )     (1,637,879 )  
Shares converted from Class B to Class A     9,270       105,909       (9,251 )     (105,909 )     —       —    
Dividends reinvested     213,653       2,399,592       613       6,899       10,985       123,382    
Net decrease     (1,240,473 )   $ (13,938,093 )     (14,884 )   $ (169,227 )     (111,778 )   $ (1,255,262 )  
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     79,138     $ 888,510       12,985,115     $ 145,955,168                    
Shares repurchased     (104,140 )     (1,167,921 )     (6,460,961 )     (72,612,328 )                  
Dividends reinvested     18,535       207,907       996,072       11,189,362                    
Net increase (decrease)     (6,467 )   $ (71,504 )     7,520,226     $ 84,532,202                    

 


317


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

UBS PACE High Yield Investments

For the six months ended January 31, 2008:

    Class A   Class P      
    Shares   Amount   Shares   Amount  
Shares sold     38,076     $ 368,009       4,160,933     $ 40,270,425    
Shares repurchased     (11,126 )     (108,037 )     (861,532 )     (8,330,504 )  
Dividends reinvested     2,797       26,902       371,603       3,576,648    
Net increase     29,747     $ 286,874       3,671,004     $ 35,516,569    

 

For the year ended July 31, 2007:

    Class A   Class P      
    Shares   Amount   Shares   Amount  
Shares sold     61,212     $ 611,989       8,261,069     $ 83,078,866    
Shares repurchased     (22,366 )     (226,723 )     (616,083 )     (6,190,492 )  
Dividends reinvested     3,181       31,865       294,769       2,952,820    
Net increase     42,027     $ 417,131       7,939,755     $ 79,841,194    

 

UBS PACE Large Co Value Equity Investments

For the six months ended January 31, 2008:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     246,679     $ 5,133,086       163     $ 3,623       6,569     $ 142,775    
Shares repurchased     (1,003,601 )     (21,599,456 )     (6,795 )     (154,105 )     (149,984 )     (3,206,066 )  
Shares converted from Class B to Class A     13,978       313,807       (13,979 )     (313,807 )     —       —    
Dividends reinvested     1,542,381       30,446,607       7,050       139,511       177,155       3,495,274    
Net increase (decrease)     799,437     $ 14,294,044       (13,561 )   $ (324,778 )     33,740     $ 431,983    
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     26,451     $ 568,966       8,970,607     $ 195,542,480                    
Shares repurchased     (175,111 )     (3,842,355 )     (5,583,328 )     (120,476,206 )                  
Dividends reinvested     260,610       5,157,464       8,223,615       162,251,938                    
Net increase     111,950     $ 1,884,075       11,610,894     $ 237,318,212                    

 

For the year ended July 31, 2007:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     243,516     $ 5,576,304       1,764     $ 39,764       19,412     $ 441,826    
Shares repurchased     (2,000,034 )     (45,561,925 )     (44,857 )     (1,007,580 )     (260,750 )     (5,938,919 )  
Shares converted from Class B to Class A     130,169       2,926,502       (129,909 )     (2,926,502 )     —       —    
Dividends reinvested     1,560,757       33,821,608       19,761       430,985       179,885       3,908,904    
Net decrease     (65,592 )   $ (3,237,511 )     (153,241 )   $ (3,463,333 )     (61,453 )   $ (1,588,189 )  
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     173,061     $ 3,921,064       14,848,482     $ 338,872,003                    
Shares repurchased     (348,324 )     (7,982,944 )     (11,487,683 )     (262,069,238 )                  
Dividends reinvested     256,182       5,566,843       6,694,777       145,075,820                    
Net increase     80,919     $ 1,504,963       10,055,576     $ 221,878,585                    

 


318


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

UBS PACE Large Co Growth Equity Investments

For the six months ended January 31, 2008:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     374,225     $ 7,028,401       467     $ 8,387       7,838     $ 143,433    
Shares repurchased     (353,603 )     (6,661,671 )     (4,435 )     (79,232 )     (44,537 )     (801,798 )  
Shares converted from Class B to Class A     7,124       136,688       (7,535 )     (136,688 )     —       —    
Dividends reinvested     105,409       1,982,738       625       11,064       10,460       185,883    
Net increase (decrease)     133,155     $ 2,486,156       (10,878 )   $ (196,469 )     (26,239 )   $ (472,482 )  
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     95,467     $ 1,856,889       10,451,042     $ 201,302,575                    
Shares repurchased     (143,330 )     (2,792,447 )     (6,083,075 )     (116,173,704 )                  
Dividends reinvested     39,067       748,901       1,875,973       35,793,563                    
Net increase (decrease)     (8,796 )   $ (186,657 )     6,243,940     $ 120,922,434                    

 

For the year ended July 31, 2007:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     293,177     $ 5,060,361       4,607     $ 77,209       21,096     $ 360,381    
Shares repurchased     (1,131,956 )     (19,913,794 )     (22,853 )     (373,519 )     (90,278 )     (1,505,928 )  
Shares converted from Class B to Class A     38,799       673,885       (40,773 )     (673,885 )     —       —    
Net decrease     (799,980 )   $ (14,179,548 )     (59,019 )   $ (970,195 )     (69,182 )   $ (1,145,547 )  
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     280,032     $ 5,204,675       19,356,124     $ 348,722,091                    
Shares repurchased     (287,439 )     (5,240,389 )     (11,928,220 )     (213,560,684 )                  
Dividends reinvested     3,883       69,862       122,457       2,194,425                    
Net increase (decrease)     (3,524 )   $ 34,148       7,550,361     $ 137,355,832                    

 

UBS PACE Small/Medium Co Value Equity Investments

For the six months ended January 31, 2008:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     116,576     $ 1,942,609       367     $ 6,716       5,324     $ 89,984    
Shares repurchased     (227,892 )     (3,904,165 )     (9,034 )     (143,608 )     (61,596 )     (981,849 )  
Shares converted from Class B to Class A     7,335       134,209       (7,871 )     (134,209 )     —       —    
Dividends reinvested     301,804       4,750,403       6,508       94,621       86,848       1,267,979    
Net increase (decrease)     197,823     $ 2,923,056       (10,030 )   $ (176,480 )     30,576     $ 376,114    
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     19,508     $ 353,067       4,019,178     $ 72,738,266                    
Shares repurchased     (68,673 )     (1,286,466 )     (2,483,653 )     (44,372,623 )                  
Dividends reinvested     34,568       556,895       3,344,778       53,516,309                    
Net increase (decrease)     (14,597 )   $ (376,504 )     4,880,303     $ 81,881,952                    

 


319


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

UBS PACE Small/Medium Co Value Equity Investments (concluded)

For the year ended July 31, 2007:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     137,542     $ 2,607,659       916     $ 15,891       7,439     $ 139,049    
Shares repurchased     (466,473 )     (8,836,516 )     (23,016 )     (395,558 )     (89,979 )     (1,608,289 )  
Shares converted from Class B to Class A     38,293       720,513       (40,673 )     (720,513 )     —       —    
Dividends reinvested     99,896       1,817,115       3,418       58,526       29,379       504,135    
Net decrease     (190,742 )   $ (3,691,229 )     (59,355 )   $ (1,041,654 )     (53,161 )   $ (965,105 )  
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     140,808     $ 2,781,416       6,232,693     $ 121,366,872                    
Shares repurchased     (94,886 )     (1,856,221 )     (4,846,292 )     (93,686,400 )                  
Dividends reinvested     9,166       170,205       914,239       16,885,991                    
Net increase     55,088     $ 1,095,400       2,300,640     $ 44,566,463                    

 

UBS PACE Small/Medium Co Growth Equity Investments

For the six months ended January 31, 2008:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     131,509     $ 2,126,771       327     $ 5,331       5,942     $ 98,646    
Shares repurchased     (237,347 )     (4,027,208 )     (2,062 )     (35,330 )     (33,598 )     (537,579 )  
Shares converted from Class B to Class A     3,090       52,997       (3,311 )     (52,997 )     —       —    
Dividends reinvested     452,998       6,767,795       2,665       36,746       70,362       976,626    
Net increase (decrease)     350,250     $ 4,920,355       (2,381 )   $ (46,250 )     42,706     $ 537,693    
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     85,656     $ 1,536,491       4,075,070     $ 70,572,027                    
Shares repurchased     (59,739 )     (994,612 )     (2,829,662 )     (48,090,802 )                  
Dividends reinvested     64,940       998,131       4,936,556       75,331,844                    
Net increase     90,857     $ 1,540,010       6,181,964     $ 97,813,069                    

 

For the year ended July 31, 2007:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     117,939     $ 1,903,587       4,078     $ 61,049       8,152     $ 123,756    
Shares repurchased     (737,368 )     (11,828,678 )     (12,089 )     (178,936 )     (97,245 )     (1,455,598 )  
Shares converted from Class B to Class A     23,295       370,998       (24,728 )     (370,998 )     —       —    
Dividends reinvested     81,515       1,267,551       1,001       14,668       12,570       185,024    
Net decrease     (514,619 )   $ (8,286,542 )     (31,738 )   $ (474,217 )     (76,523 )   $ (1,146,818 )  
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     195,457     $ 3,250,868       7,303,343     $ 120,839,534                    
Shares repurchased     (154,334 )     (2,540,485 )     (5,466,236 )     (89,764,919 )                  
Dividends reinvested     8,337       132,391       699,722       11,062,606                    
Net increase     49,460     $ 842,774       2,536,829     $ 42,137,221                    

 


320


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

UBS PACE International Equity Investments

For the six months ended January 31, 2008:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     255,536     $ 5,148,483       632     $ 12,596       18,489     $ 392,120    
Shares repurchased     (358,546 )     (7,345,254 )     (1,524 )     (29,721 )     (34,604 )     (702,270 )  
Shares converted from Class B to Class A     1,829       39,805       (1,872 )     (39,805 )     —       —    
Dividends reinvested     752,680       14,082,644       2,592       47,641       51,557       946,583    
Net increase (decrease)     651,499     $ 11,925,678       (172 )   $ (9,289 )     35,442     $ 636,433    
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     81,277     $ 1,707,719       8,489,396     $ 175,717,945                    
Shares repurchased     (271,789 )     (5,435,337 )     (5,562,821 )     (114,332,381 )                  
Dividends reinvested     414,916       7,754,775       7,763,153       144,860,425                    
Net increase     224,404     $ 4,027,157       10,689,728     $ 206,245,989                    

 

For the year ended July 31, 2007:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     448,211     $ 9,072,038       3,333     $ 64,231       22,538     $ 446,288    
Shares repurchased     (728,537 )     (14,899,948 )     (8,314 )     (157,944 )     (76,279 )     (1,533,861 )  
Shares converted from Class B to Class A     14,047       285,830       (14,356 )     (285,830 )     —       —    
Dividends reinvested     582,691       11,280,906       3,037       57,796       41,358       787,045    
Net increase (decrease)     316,412     $ 5,738,826       (16,300 )   $ (321,747 )     (12,383 )   $ (300,528 )  
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     411,233     $ 8,417,158       14,612,769     $ 299,221,707                    
Shares repurchased     (464,892 )     (9,444,392 )     (12,081,828 )     (246,611,211 )                  
Dividends reinvested     321,356       6,218,236       5,308,630       102,562,726                    
Net increase     267,697     $ 5,191,002       7,839,571     $ 155,173,222                    

 

UBS PACE International Emerging Markets Equity Investments

For the six months ended January 31, 2008:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     185,583     $ 4,372,814       117     $ 2,559       23,422     $ 537,405    
Shares repurchased     (179,999 )     (4,140,686 )     (3,355 )     (73,662 )     (21,885 )     (479,260 )  
Shares converted from Class B to Class A     713       16,604       (745 )     (16,604 )     —       —    
Dividends reinvested     232,817       4,991,598       3,770       77,276       57,773       1,182,038    
Net increase (decrease)     239,114     $ 5,240,330       (213 )   $ (10,431 )     59,310     $ 1,240,183    
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     272,412     $ 6,859,646       1,866,550     $ 45,249,759                    
Shares repurchased     (231,904 )     (5,334,561 )     (2,045,915 )     (49,175,503 )                  
Dividends reinvested     254,370       5,535,105       2,784,783       60,374,092                    
Net increase     294,878     $ 7,060,190       2,605,418     $ 56,448,348                    

 


321


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

UBS PACE International Emerging Markets Equity Investments (concluded)

For the year ended July 31, 2007:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     230,006     $ 4,719,692       4,789     $ 89,921       32,808     $ 651,391    
Shares repurchased     (277,339 )     (5,594,730 )     (4,303 )     (87,113 )     (58,004 )     (1,103,383 )  
Shares converted from Class B to Class A     9,864       201,989       (10,279 )     (201,989 )     —       —    
Dividends reinvested     176,540       3,295,997       3,791       68,082       43,918       788,770    
Net increase (decrease)     139,071     $ 2,622,948       (6,002 )   $ (131,099 )     18,722     $ 336,778    
    Class Y   Class P      
    Shares   Amount   Shares   Amount          
Shares sold     370,414     $ 7,973,130       3,706,805     $ 76,395,053                    
Shares repurchased     (387,931 )     (7,791,057 )     (4,143,386 )     (84,819,917 )                  
Dividends reinvested     162,473       3,069,117       2,104,989       39,657,998                    
Net increase     144,956     $ 3,251,190       1,668,408     $ 31,233,134                    

 

UBS PACE Global Real Estate Securities Investments

For the six months ended January 31, 2008:

    Class A   Class C   Class P  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     526,944     $ 4,975,634       8,580     $ 87,409       3,120,372     $ 29,820,943    
Shares repurchased     (117,806 )     (1,080,008 )     (13,578 )     (124,424 )     (651,530 )     (6,086,753 )  
Dividends reinvested     24,271       211,398       999       8,703       228,098       1,991,299    
Net increase (decrease)     433,409     $ 4,107,024       (3,999 )   $ (28,312 )     2,696,940     $ 25,725,489    

 

For the period ended July 31, 2007:

    Class A1    Class C1    Class Y2   
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     504,711     $ 5,219,184       38,068     $ 395,756       1,000,000     $ 10,000,000    
Shares repurchased     (64,605 )     (677,003 )     (1,924 )     (20,229 )     (1,004,428 )     (10,770,258 )  
Dividends reinvested     13       122       8       80       4,428       43,000    
Net increase (decrease)     440,119     $ 4,542,303       36,152     $ 375,607       —     $ (727,258 )  
    Class P3           
    Shares   Amount                  
Shares sold     4,856,663     $ 51,030,872                                    
Shares repurchased     (173,796 )     (1,807,422 )                                  
Net increase     4,682,867     $ 49,223,450                                    

 

1  For the period December 18, 2006 (commencement of issuance) through July 31, 2007.

2  For the period November 30, 2006 (commencement of issuance) through February 15, 2007.

3  For the period January 22, 2007 (commencement of issuance) through July 31, 2007.


322


UBS PACE Select Advisors Trust

Notes to financial statements (unaudited)

UBS PACE Alternative Strategies Investments

For the six months ended January 31, 2008:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     5,466,792     $ 60,182,786       733     $ 8,114       472,077     $ 5,128,812    
Shares repurchased     (1,261,391 )     (13,941,255 )     —       —       (66,488 )     (722,238 )  
Dividends reinvested     176,113       1,916,110       44       474       9,381       101,320    
Net increase (decrease)     4,381,514     $ 48,157,641       777     $ 8,588       414,970     $ 4,507,894    
    Class P          
    Shares   Amount                  
Shares sold     14,623,204     $ 162,029,831                                    
Shares repurchased     (3,039,941 )     (33,566,457 )                                  
Dividends reinvested     1,017,460       11,100,483                                    
Net increase     12,600,723     $ 139,563,857                                    

 

For the year ended July 31, 2007:

    Class A   Class B   Class C  
    Shares   Amount   Shares   Amount   Shares   Amount  
Shares sold     5,260,581     $ 57,308,940       5,821     $ 63,245       335,148     $ 3,698,108    
Shares repurchased     (600,984 )     (6,474,347 )     (4,525 )     (50,091 )     (22,486 )     (250,297 )  
Dividends reinvested     10,645       111,139       4       46       116       1,207    
Net increase     4,670,242     $ 50,945,732       1,300     $ 13,200       312,778     $ 3,449,018    
    Class P          
    Shares   Amount                  
Shares sold     31,171,574     $ 335,109,125                                    
Shares repurchased     (1,918,394 )     (20,798,674 )                                  
Dividends reinvested     78,612       821,496                                    
Net increase     29,331,792     $ 315,131,947                                    

 


323


UBS PACE Select Advisors Trust

General information (unaudited)

Quarterly Form N-Q portfolio schedule

Each Portfolio will file its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The Portfolios' Forms N-Q are available on the SEC's Web site at http://www.sec.gov. The Portfolios' Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC 0330. Additionally, you may obtain copies of Forms N-Q from the Portfolios upon request by calling 1-800-647 1568.

Proxy voting policies, procedures and record

You may obtain a description of each Portfolio's (1) proxy voting policies, (2) proxy voting procedures and (3) information regarding how a Portfolio voted any proxies related to portfolio securities during the most recent 12-month period ended June 30 for which an SEC filing has been made, without charge, upon request by contacting a Portfolio directly at 1-800-647 1568, online on a Portfolio's Web site: www.ubs.com/ubsglobalam-proxy, or on the EDGAR Database on the SEC's Web site (http://www.sec.gov).


324


UBS PACE Select Advisors Trust

UBS PACE Large Co Growth Equity Investments—Board Approval of Sub-Advisory Agreements (unaudited)

September 2007 and November 2007 board meetings:

Background—The Trustees, including the Independent Trustees, considered and approved the proposed Marsico Sub-Advisory Agreement between UBS Global AM and Marsico and the proposed Delaware Sub-Advisory Agreement between UBS Global AM and Delaware, at meetings of the Board on September 19, 2007 and November 14, 2007, respectively. In considering the approval of the Sub-Advisory Agreements, the Board was able to draw on its knowledge of the Trust, its series and UBS Global AM. The Board took note of its knowledge of UBS Global AM and the advisory and subadvisory agreements for the other series of the Trust and other portions of the Fund's portfolio, including the extensive materials it had reviewed at its most recent annual contract renewal meeting, and noted that it had at that time received a memorandum from its independent legal counsel discussing, among other things, the duties of Board members in considering approval of advisory and sub-advisory agreements. The Board also took note that Marsico had served as a sub-advisor to the Fund since September 2002 and that no changes in portfolio management or investment philosophy and process were being proposed as a result of Marsico's change in control. The Board also received a memorandum from UBS Global AM prior to its September 19th meeting with information regarding Marsico's change in control. Prior to the November 14th meeting, the Board was provided with information about Delaware, including information about the qualifications, backgrounds and responsibilities of Delaware's large company growth portfolio management team, assets under management and investment philosophy and process. The Board also received a memorandum from UBS Global AM prior to its November 14th meeting containing additional information about Delaware and UBS Global AM's discussion of its reasons for recommending Delaware to the Board, including that UBS Global AM's recommendation of Delaware was part of a broader strategy designed to attempt to manage risk within the Fund through additional sub-advisor diversification. The Board also met with members of the portfolio management team for Delaware, who discussed with the Board their investment philosophy.

In its consideration of the approval of the proposed Sub-Advisory Agreements, the Board considered the following factors:

Nature, extent and quality of the services under the Sub-Advisory Agreements—The Board took note that at its most recent annual contract renewal meeting for the Trust in July 2007, in connection with its review of the Trust's management, sub-advisory and distribution agreements, it had received and considered extensive information regarding UBS Global AM and a description of UBS Global AM's role in coordinating providers of other services to the series of the Trust, including oversight of the provision of sub-advisory services by the sub-advisors to the series. The Board's evaluation of the services to be provided by Marsico and Delaware to the Fund took into account the Board's knowledge and familiarity gained as Trustees of funds in the UBS New York fund complex, including the Trust and its series. With respect to Marsico, the Board took note that no changes from the services provided by Marsico to the Fund under the Prior Marsico Sub-Advisory Agreement were being proposed and that management would continue to monitor the ownership structure and remuneration plans for Marsico after the change in control. As noted above, the Board also received extensive materials from UBS Global AM and from Delaware about Delaware, including a memorandum from UBS Global AM discussing its reasons for recommending Delaware. The Board concluded that, overall, it was satisfied with the nature, extent and quality of services expected to be provided to the Fund under the proposed Sub-Advisory Agreements.

Sub-advisory fees—The Board reviewed and considered the proposed contractual sub-advisory fees to be payable by UBS Global AM in light of the nature, extent and quality of the sub-advisory services anticipated to be provided by Marsico and Delaware. The Board noted that no change in the subadvisory fee paid to Marsico by UBS Global AM was being proposed. It also noted that UBS Global AM would be paying Delaware a higher sub-advisory fee than UBS Global AM paid the Fund's other subadvisors; as a result, UBS


325


UBS PACE Select Advisors Trust

UBS PACE Large Co Growth Equity Investments—Board Approval of Sub-Advisory Agreements (unaudited)

Global AM's selection of Delaware may result in UBS Global AM retaining less of the management fee it receives from the Fund. The Board also considered that the compensation to be paid to each of Marsico and Delaware would be paid by UBS Global AM, not the Fund and, accordingly, that the retention of Delaware and continued retention of Marsico would not increase the fees otherwise incurred by the Fund's shareholders. Taking all of the above into consideration, the Board determined that the proposed sub-advisory fees were reasonable in light of the nature, extent and quality of the services proposed to be provided to the Fund under the Sub-Advisory Agreements.

Fund performance—The Board considered the current performance of Marsico's Allocated Portion and determined that it was satisfied with that performance. The Board also received and considered information with respect to the Delaware portfolio investment team's composite investment performance with accounts and other funds managed in the large cap growth equity style, noting that performance information prior to April 4, 2005 was the performance of a different portfolio management team. The Board reviewed the composite recent performance with the Delaware representatives. The Board also noted that, as Delaware would be a new sub-advisor to the Fund, the current performance of the Fund was not relevant to the consideration of the approval of the Delaware Sub-Advisory Agreement.

Advisor profitability—Profitability of UBS Global AM or its affiliates in providing services to the Fund was not a factor considered by the Board, as the sub-advisory fees would be paid by UBS Global AM out of the management fee paid to it by the Fund, and not by the Fund.

Economies of scale—The Board noted that, as the sub-advisory fees for the Fund would be paid by UBS Global AM, not by the Fund, consideration of economies of scale with respect specifically to the sub-advisory fees were not relevant.

Other benefits to Marsico and Delaware—The Board was informed by management that Marsico's and Delaware's relationship with the Fund would be limited to their provision of sub-advisory services to the Fund and that therefore management believed that neither Marsico nor Delaware received tangible ancillary benefits as a result of their relationships with the Fund, with the exception of possible benefits from soft dollars for the Fund (which would also potentially benefit the Fund).

In light of all of the foregoing, the Board approved the Sub-Advisory Agreements for the Fund.

No single factor reviewed by the Board was identified by the Board as the principal factor in determining whether to approve the Sub-Advisory Agreements. The Independent Trustees were advised by separate independent legal counsel throughout the process. The Board discussed the proposed approval of the Sub-Advisory Agreements in a private session with their independent legal counsel at which no representatives of UBS Global AM, Marsico or Delaware were present.


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328



UBS PACE Money Market
Investments

Semiannual Report
January 31, 2008



UBS PACE Money Market Investments

March 17, 2008

Dear Shareholder,

For the six months ended January 31, 2008, the Portfolio returned 2.21% (before the deduction of the maximum UBS PACE Select program fee for the six month period; after the deduction of the maximum UBS PACE Select program fee, the Portfolio returned 1.44%). In comparison, the 90-Day US T-Bill Index (the "benchmark") returned 2.08%, and the median return for the Lipper Money Market Funds category was 2.19%. (Returns over various time periods are shown in the "Performance at a Glance" table on page 5. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions.)

Market Review

While the US economy was fairly resilient during the first half of the reporting period, it weakened toward the end of 2007. The reporting period began with a healthy gross domestic product ("GDP") growth rate of 4.9% in the third quarter, due in part to strong consumer spending and increased exports. However, a variety of factors caused the economy to

UBS PACE Money
Market Investments

Investment Advisor:

UBS Global Asset Management (Americas) Inc.

Portfolio Manager:

Michael H. Markowitz*

Objective:

Current income consistent with preservation of capital and liquidity

Investment process:

The Portfolio is a money market mutual fund and seeks to maintain a stable price of $1.00 per share, although it may be possible to lose money by investing in this Portfolio. The Portfolio invests in a diversified portfolio of high-quality money market instruments of governmental and private issuers. Security selection is based on the assessment of relative values and changes in market and economic conditions

*  Note: As of March 20, 2008, Robert Sabatino, a director of UBS Global Asset Management (Americas) Inc.'s short duration fixed income group, will become primarily responsible for the day-to-day portfolio management of UBS PACE Money Market Investments.


1


UBS PACE Money Market Investments

stumble in the fourth quarter, as the combined effects of the weak housing market, issues related to subprime mortgages, and tighter credit conditions negatively impacted the overall economy. As a result, estimates for the fourth quarter GDP fell back to just 0.6%.

As concerns over subprime mortgages and the credit markets mounted, the Federal Reserve Board (the "Fed") provided greater amounts of liquidity to the market in order to facilitate normal market operations. In mid-August, the Fed lowered the discount rate—the rate the Fed uses for loans it makes directly to banks. Then, in mid-September, the Fed continued to take action by reducing the federal funds rate from 5.25% to 4.75%. (The federal funds rate, or "fed funds" rate, is the rate that banks charge one another for funds they borrow on an overnight basis.) The Fed again lowered the fed funds rate in October and December 2007, bringing it to 4.25% by the end of 2007.

In a surprise move, the Fed again cut the fed funds rate on January 22, 2008. The 0.75% reduction, taken to address what the Fed called "a weakening of the economic outlook" brought the fed funds rate to 3.50%. Eight days later, on January 30, 2008, the Fed further lowered the fed funds rate by 0.50%, bringing it to 3.00%—the lowest level since May 2005.

Portfolio Performance

During much of the period, we employed a "barbell" strategy, in which the maturities of securities in a portfolio are concentrated at opposite ends of the short-term yield curve. We continued to buy shorter-term securities, and we also sought to extend the Portfolio's weighted average maturity with longer-term money market securities maturing within nine to 13 months. However, when the troubles surfaced in the credit market in mid-August, we sought to increase liquidity by purchasing more overnight securities. This reduced the Portfolio's weighted average maturity during the remainder of the period. We also added more government agency securities to the portfolio in October and increased the amount of overnight securities we held.


2


UBS PACE Money Market Investments

The Portfolio remained diversified during the reporting period by both weighted average maturity and security type. We held securities with a wide range of maturities, ranging from overnight up to several months. In terms of security type, while we are able to generally hold up to 5% in any one security (subject to certain exceptions), we typically sought to maintain a greater level of portfolio diversification over the reporting period. We accomplished this by investing in smaller positions, typically purchasing no more than 2%–3% in any one non-government issuer.

As always, quality, liquidity and yield remained paramount in our selection process for the Portfolio. Our process led us to be highly selective in terms of the types of commercial paper held in the Portfolio, which benefited performance during the reporting period. (Commercial paper is a short-term security which may be backed by a guarantee or a letter of credit from a bank or other entity.) For example, we did not have any positions in single-seller commercial paper conduits or asset-backed commercial paper programs solely backed by mortgages. Instead, we emphasized what we believed to be the more stable multi-seller commercial paper programs.

Short-term corporate obligations and certificates of deposit also comprised a fair amount of the Portfolio. Within these sectors, we also found variable-rate securities, which offer interest rates that reset periodically, to be attractive, given the uncertainty of interest rate movements by the Fed. We purchased variable-rate securities linked to the fed funds rate, as well as those linked to the one-month and three-month LIBOR. (LIBOR, or the London Interbank Offered Rate, is among the most common of benchmark interest rate indexes used to make adjustments to adjustable-rate securities.)

Later in the period, we increased our exposure to overnight securities, such as repurchase agreements, as well as one-month securities as we sought to increase the Portfolio's liquidity. These purchases helped to decrease our risk exposure. In response to turmoil in the asset-backed commercial paper market during this


3


UBS PACE Money Market Investments

time, we decreased our exposure to these securities and increased our exposure to US government and agency obligations.

As always, we thank you for your continued support and welcome any comments or questions you may have.

Sincerely,

   
Kai R. Sotorp
President
UBS PACE Select Advisors Trust
Head of the Americas
UBS Global Asset Management
(Americas) Inc.		   Michael H. Markowitz
Portfolio Manager
UBS PACE Money Market Investments
Managing Director
UBS Global Asset Management
(Americas) Inc.		  

 

This letter is intended to assist shareholders in understanding how the Portfolio performed during the six months ended January 31, 2008. The views and opinions in this letter were current as of March 17, 2008. They are not guarantees of performance or investment results and should not be taken as investment advice.

Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Portfolio's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program.


4


UBS PACE Money Market Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 01/31/08

    6 months   1 year   5 years   10 years  
UBS PACE Money Market
Investments before deducting
maximum UBS PACE
Select program fee1 		     2.21 %     4.64 %     2.71 %     3.46 %  
UBS PACE Money Market
Investments after deducting
maximum UBS PACE
Select program fee1 		     1.44 %     3.08 %     1.18 %     1.92 %  
90-Day US T-Bill Index2      2.08 %     4.60 %     2.99 %     3.61 %  
Lipper Money Market
Funds median		     2.19 %     4.52 %     2.54 %     3.27 %  

 

For UBS PACE Money Market Investments, average annual total returns for periods ended December 31, 2007, after deduction of the maximum sales charge or UBS PACE Select program fee, were as follows: 1-year period, 3.16%; 5-year period, 1.13%; 10-year period, 1.94%.

For UBS PACE Money Market Investments, the 7-day current yield for the period ended January 31, 2008 was 3.36% (without maximum UBS PACE Select program fee and after fee waivers and/or expense reimbursements; the yield was 3.07% before fee waivers and/or expense reimbursements). With the maximum UBS PACE Select program fee, the 7-day current yield was 1.86% after fee waivers and/or expense reimbursements; the yield was 1.57% before fee waivers and/or expense reimbursements. The Portfolio's yield quotation more closely reflects the current earnings of the Portfolio than the total return quotation. Yields will fluctuate and reflect fee waivers.

1  The maximum annual UBS PACE Select program fee is 1.5% of the value of UBS PACE assets.

2  90-Day US T-Bills are promissory notes issued by the US Treasury and sold through competitive bidding, with a short-term maturity date, in this case, of three months. This Index is derived from secondary market interest rates as published by the Federal Reserve Bank.

Past performance does not predict future performance and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions. The return of an investment will fluctuate. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the payable dates. Total returns for the period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

An investment in UBS PACE Money Market Investments is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Portfolio seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Portfolio.


5


UBS PACE Money Market Investments

Understanding your Portfolio's expenses (unaudited)

As a shareholder of the Portfolio, you incur two types of costs: (1) ongoing program fees; and (2) ongoing Portfolio costs, including management fees and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, August 1, 2007 to January 31, 2008.

Actual expenses

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over a period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


6


UBS PACE Money Market Investments

Understanding your Portfolio's expenses (unaudited)
(concluded)

Please note that the expenses shown in the table are meant to highlight your ongoing Portfolio costs only and do not reflect any program fees. Therefore, the second line in the table is useful in comparing ongoing Portfolio costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these program fees were included, your costs would have been higher.

 


 
Beginning
account value
August 1, 2007 		 
Ending
account value
January 31, 2008 		  Expenses paid
during period1
08/01/07 to
01/31/08		   Expense
ratio
during the
period		  
Class P   Actual   $ 1,000.00     $ 1,022.10     $ 3.05       0.60 %  



  Hypothetical
(5% annual
return before
expenses)		     1,000.00       1,022.12       3.05       0.60 %  

 

1  Expenses are equal to the Portfolio's annualized net expense ratio, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period).


7


UBS PACE Money Market Investments

Portfolio statistics (unaudited)

Characteristics   01/31/08  
Net assets (mm)   $ 523.2    
Number of holdings     82    
Weighted average maturity     50 days    
Portfolio composition1    01/31/08  
Commercial paper     29.1 %  
Repurchase agreements     24.5    
US government and agency obligations     21.2    
Certificates of deposit     19.0    
Short-term corporate obligations     8.1    
Other assets less liabilities     (1.9 )  
Total     100.0 %  
Top 10 holdings1    01/31/08  
Repurchase agreement with Deutsche Bank Securities,
2.850%, due 02/01/08		     13.0 %  
Repurchase agreement with Barclays Bank PLC, 2.850%, due 02/01/08     11.5    
Federal National Mortgage Association, 4.240% due 02/08/08     3.8    
Abbey National N.A. LLC, 4.345% due 02/04/08     2.3    
Federal Home Loan Bank, 2.720% due 02/22/08     2.3    
Bayerische Landesbank, 3.280% due 02/27/08     2.0    
Lehman Brothers Holdings, Inc., 3.040% due 02/01/08     1.9    
Danske Corp., 3.030% due 03/03/08     1.9    
International Lease Finance Corp., 3.020% due 03/06/08     1.9    
Federal Home Loan Bank, 2.870% due 03/28/08     1.9    
Total     42.5 %  

 

1  Weightings represent percentages of the Portfolio's net assets as of January 31, 2008. The Portfolio is actively managed and its composition will vary over time.


8



UBS PACE Money Market Investments

Statement of net assets—January 31, 2008
(unaudited)

    Face
amount		   Value  
US government and agency obligations—21.21%  
Federal Farm Credit Bank  
3.030%, due 02/22/081    $ 4,000,000     $ 3,999,682    
3.080%, due 03/22/081      5,500,000       5,500,000    
Federal Home Loan Bank  
4.785%, due 02/18/081      8,000,000       8,000,000    
2.720%, due 02/22/082      12,000,000       11,980,960    
2.870%, due 03/28/082      10,000,000       9,955,355    
4.345%, due 04/10/081      7,500,000       7,499,380    
3.625%, due 04/16/082      5,000,000       4,962,240    
4.885%, due 08/20/08     2,750,000       2,752,181    
5.100%, due 09/19/08     4,500,000       4,513,238    
4.500%, due 11/05/08     4,000,000       4,000,000    
3.330%, due 01/23/09     2,750,000       2,750,000    
Federal Home Loan Mortgage Corp.  
4.670%, due 03/30/081      2,000,000       1,999,154    
4.165%, due 05/12/082      5,000,000       4,941,574    
4.300%, due 12/26/08     3,000,000       3,000,000    
Federal National Mortgage Association  
4.240%, due 02/08/082      20,000,000       19,983,511    
3.375%, due 01/23/09     2,750,000       2,750,000    
US Treasury Bills2   
3.000%, due 03/20/08     5,500,000       5,478,000    
3.145%, due 06/12/08     7,000,000       6,919,278    
Total US government and agency obligations
(cost—$110,984,553)		     110,984,553    
Certificates of deposit—19.02%  
Banking-non-US—15.96%  
Bank of Tokyo-Mitsubshi UFJ Ltd.  
5.440%, due 03/14/08     4,500,000       4,500,000    
3.790%, due 05/15/08     5,000,000       5,000,000    
Barclays Bank PLC  
5.530%, due 03/14/08     2,000,000       2,000,000    
5.200%, due 06/16/08     3,000,000       3,000,000    
3.000%, due 07/25/08     5,000,000       5,000,000    

 


9


UBS PACE Money Market Investments

Statement of net assets—January 31, 2008
(unaudited)

    Face
amount		   Value  
Certificates of deposit—(concluded)  
Banking-non-US—(concluded)  
Calyon N.A., Inc.  
3.045%, due 02/01/081    $ 4,000,000     $ 3,999,874    
4.750%, due 02/28/08     5,000,000       5,000,000    
Credit Suisse First Boston  
4.850%, due 05/27/08     5,000,000       5,000,000    
4.230%, due 07/08/08     2,000,000       2,000,000    
Deutsche Bank AG  
3.155%, due 02/01/081      4,000,000       4,000,000    
4.753%, due 03/25/081      5,000,000       5,000,000    
Fortis Bank NV-SA  
4.850%, due 02/11/08     5,000,000       5,000,000    
Natixis  
4.810%, due 02/08/08     5,000,000       5,000,000    
5.365%, due 06/02/08     2,000,000       2,000,000    
Norinchukin Bank Ltd.  
4.545%, due 03/07/08     3,000,000       3,000,000    
4.300%, due 04/14/08     5,000,000       5,000,000    
Royal Bank of Scotland  
3.750%, due 07/18/08     5,000,000       5,000,000    
Societe Generale  
4.800%, due 02/07/08     5,000,000       5,000,000    
Svenska Handelsbanken  
5.000%, due 10/09/08     9,000,000       9,000,000    
      83,499,874    
Banking-US—3.06%  
PNC Bank N.A.  
3.190%, due 07/25/08     6,000,000       6,000,000    
State Street Bank & Trust Co.  
5.540%, due 02/04/08     5,000,000       5,000,000    
Wachovia Bank NA (Charlotte)  
4.753%, due 04/04/081      5,000,000       5,000,000    
      16,000,000    
Total certificates of deposit (cost—$99,499,874)     99,499,874    

 


10


UBS PACE Money Market Investments

Statement of net assets—January 31, 2008
(unaudited)

    Face
amount		   Value  
Commercial paper2—29.10%  
Asset backed-banking—1.43%  
Atlantis One Funding  
3.450%, due 02/12/08   $ 2,500,000     $ 2,497,365    
3.850%, due 04/15/08     5,000,000       4,960,430    
      7,457,795    
Asset backed-miscellaneous—5.29%  
Amsterdam Funding Corp.  
4.450%, due 04/08/08     2,750,000       2,727,225    
Falcon Asset Securitization Corp.  
3.350%, due 02/25/08     5,000,000       4,988,833    
Old Line Funding Corp.  
4.080%, due 02/11/08     5,000,000       4,994,333    
Ranger Funding Co. LLC  
3.150%, due 02/06/08     5,000,000       4,997,813    
Thunderbay Funding  
4.120%, due 02/08/08     5,000,000       4,995,995    
Variable Funding Capital Corp.  
4.285%, due 02/13/08     5,000,000       4,992,858    
      27,697,057    
Banking-non-US—1.24%  
Westpac Banking Corp.  
3.450%, due 02/01/08     6,500,000       6,500,000    
Banking-US—14.94%  
Abbey National N.A. LLC  
4.345%, due 02/04/08     12,000,000       11,995,655    
ABN-AMRO N.A. Finance, Inc.  
3.300%, due 02/19/08     5,000,000       4,991,750    
Bayerische Landesbank  
3.280%, due 02/27/08     10,500,000       10,475,127    
Danske Corp.  
3.030%, due 03/03/08     10,000,000       9,973,908    
Deutsche Bank Financial LLC  
3.100%, due 02/01/08     6,000,000       6,000,000    

 


11


UBS PACE Money Market Investments

Statement of net assets—January 31, 2008
(unaudited)

    Face
amount		   Value  
Commercial paper2—(concluded)  
Banking-US—(concluded)  
ING (US) Funding LLC  
3.100%, due 04/25/08   $ 5,000,000     $ 4,963,833    
JP Morgan Chase & Co.  
4.830%, due 04/17/08     6,900,000       6,829,643    
Nordea N.A., Inc.  
4.740%, due 02/14/08     5,000,000       4,991,442    
3.100%, due 02/28/08     5,000,000       4,988,375    
Societe General N.A. Inc.  
3.915%, due 04/14/08     4,000,000       3,968,245    
Stadshypotek Del, Inc.  
3.150%, due 04/22/08     4,000,000       3,971,650    
Toronto Dominion Holdings USA, Inc.  
3.100%, due 03/20/08     5,000,000       4,979,333    
      78,128,961    
Brokerage—2.86%  
Greenwich Capital Holdings, Inc.  
3.950%, due 03/24/08     5,000,000       4,971,472    
Lehman Brothers Holdings, Inc.  
3.040%, due 02/01/08     10,000,000       10,000,000    
      14,971,472    
Finance-noncaptive diversified—1.91%  
International Lease Finance Corp.  
3.020%, due 03/06/08     10,000,000       9,971,478    
Insurance-multiline—0.74%  
Hartford Financial Services Group, Inc.  
3.780%, due 02/26/08     3,885,000       3,874,802    
Pharmaceuticals—0.69%  
Pfizer, Inc.  
4.410%, due 05/28/08     3,675,000       3,622,328    
Total commercial paper (cost—$152,223,893)     152,223,893    

 


12


UBS PACE Money Market Investments

Statement of net assets—January 31, 2008
(unaudited)

    Face
amount		   Value  
Short-term corporate obligations—8.14%  
Asset backed-securities—2.98%  
Asscher Finance Corp.  
5.400%, due 07/09/083    $ 2,000,000     $ 1,999,956    
CC (USA), Inc. (Centauri)  
5.340%, due 06/05/083      2,500,000       2,499,917    
Dorada Finance, Inc.  
3.205%, due 02/01/081,3      3,100,000       3,100,101    
K2 (USA) LLC  
4.218%, due 04/15/081,3      5,000,000       4,999,548    
5.400%, due 06/16/083      3,000,000       3,000,000    
      15,599,522    
Banking-non-US—3.63%  
BNP Paribas  
4.032%, due 05/13/081      3,000,000       3,000,000    
La Caja de Ahorros y Pensiones de Barcelona  
3.848%, due 04/23/081,3      4,000,000       4,000,000    
National Australia Bank Ltd.  
4.206%, due 02/15/081,3      6,000,000       6,000,000    
Societe Generale  
4.631%, due 02/04/081,3      3,000,000       3,000,000    
Westpac Banking Corp.  
4.530%, due 02/06/081,3      3,000,000       3,000,000    
      19,000,000    
Banking-US—0.38%  
Citigroup Funding, Inc.  
3.110%, due 02/01/081      2,000,000       2,000,096    
Finance-captive automotive—1.15%  
Toyota Motor Credit Corp.  
3.820%, due 02/01/081      3,000,000       3,000,000    
4.616%, due 04/07/081      3,000,000       3,000,111    
      6,000,111    
Total short-term corporate obligations (cost—$42,599,729)     42,599,729    

 


13


UBS PACE Money Market Investments

Statement of net assets—January 31, 2008
(unaudited)

    Face
amount		   Value  
Repurchase agreements—24.48%  
Repurchase agreement dated 01/31/08
with Barclays Bank PLC, 2.850%, due
02/01/08, collateralized by $55,502,000
Federal National Mortgage
Association obligations,
6.000% due 05/15/11;
(value—$61,200,205);
proceeds: $60,004,750		   $ 60,000,000     $ 60,000,000    
Repurchase agreement dated 01/31/08
with Deutsche Bank Securities, 2.850%,
due 02/01/08, collateralized by $25,000,000
Federal Home Loan Bank obligations,
3.600% due 01/16/09 and $45,922,000
Federal Home Loan Mortgage
Corp. obligations, zero coupon
due 11/10/08 to 07/15/13;
(value—$69,360,206);
proceeds: $68,005,383		     68,000,000       68,000,000    
Repurchase agreement dated 01/31/08
with State Street Bank & Trust Co., 1.400%,
due 02/01/08, collateralized by $9,865
US Treasury Bonds, 7.250% to 8.125%
due 08/15/19 to 08/15/22 and
$26,940 US Treasury Bills,
zero coupon due 05/01/08;
(value—$40,817);
proceeds: $40,002		     40,000       40,000    
Total repurchase agreements (cost—$128,040,000)     128,040,000    
Total investments (cost—$533,348,049)—101.95%     533,348,049    
Liabilities in excess of other assets—(1.95)%     (10,197,239 )  
Net assets (applicable to 523,108,984
shares of beneficial interest outstanding
equivalent to $1.00 per share)—100.00%		   $ 523,150,810    

 

1  Variable rate security. The maturity dates reflect earlier of reset dates or stated maturity dates. The interest rates shown are the current rates as of January 31, 2008, and reset periodically.

2  Rates shown are the discount rates at date of purchase.


14


UBS PACE Money Market Investments

Statement of net assets—January 31, 2008
(unaudited)

3  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 6.04% of net assets as of January 31, 2008, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

Issuer breakdown by country of origin

    Percentage of
total investments		  
United States     78.5 %  
France     5.1    
Japan     4.4    
Australia     2.9    
United Kingdom     2.8    
Germany     1.7    
Sweden     1.7    
Switzerland     1.3    
Belgium     0.9    
Spain     0.7    
Total     100.0 %  

 

Weighted average maturity—50 days

See accompanying notes to financial statements
15


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16



UBS PACE Money Market Investments

Statement of operations

    For the six
months ended
January 31, 2008
(unaudited)		  
Investment income:  
Interest   $ 11,583,997    
Expenses:  
Transfer agency and related services fees     991,802    
Investment management and administration fees     823,701    
Reports and notices to shareholders     160,406    
Professional fees     33,836    
Custody and accounting fees     32,948    
Federal and state registration fees     21,162    
Trustees' fees     8,931    
Insurance expense     5,994    
Other expenses     5,319    
      2,084,099    
Less: Expense reimbursements by investment manager
and administrator		     (672,039 )  
Net expenses     1,412,060    
Net investment income     10,171,937    
Net realized gain from investment activities     42,586    
Net increase in net assets resulting from operations   $ 10,214,523    

 

Statement of changes in net assets

    For the six
months ended
January 31, 2008
(unaudited)		   For the
year ended
July 31, 2007		  
From operations:  
Net investment income   $ 10,171,937     $ 18,020,741    
Net realized gain (loss) from
investment activities		     42,586       (150 )  
Net increase in net assets resulting
from operations		     10,214,523       18,020,591    
Dividends to shareholders from:  
Net investment income     (10,171,937 )     (18,020,741 )  
From beneficial interest transactions:  
Net increase in net assets from beneficial
interest transactions		     114,545,882       65,989,601    
Net increase in net assets     114,588,468       65,989,451    
Net assets:  
Beginning of period     408,562,342       342,572,891    
End of period   $ 523,150,810     $ 408,562,342    
Accumulated undistributed net
investment income		   $ —     $ —    

 

See accompanying notes to financial statements
17



UBS PACE Money Market Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

    For the
six months
ended
January 31,		   For the years ended July 31,  
    2008
(unaudited)		   2007   2006   2005   2004   2003  
Net asset value, beginning of period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Net investment income     0.022       0.048       0.038       0.018       0.005       0.009    
Dividends from net investment income     (0.022 )     (0.048 )     (0.038 )     (0.018 )     (0.005 )     (0.009 )  
Net asset value, end of period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total investment return1     2.21 %     4.86 %     3.89 %     1.80 %     0.51 %     0.96 %  
Ratios/supplemental data:  
Net assets, end of period (000's)   $ 523,151     $ 408,562     $ 342,573     $ 227,528     $ 166,067     $ 123,915    
Expenses to average net assets, net of fee waivers and/or
expense reimbursements by manager		     0.60 %2     0.60 %     0.60 %     0.60 %     0.60 %     0.57 %  
Expenses to average net assets, before fee waivers and/or
expense reimbursements by manager		     0.89 %2     0.92 %     0.99 %     0.97 %     0.96 %     1.13 %  
Net investment income to average net assets     4.32 %2     4.75 %     3.89 %     1.85 %     0.51 %     0.94 %  

 

1  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. The figures do not include program fees; results would be lower if these fees were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions.

2  Annualized.

See accompanying notes to financial statements
18



19



UBS PACE Money Market Investments

Notes to financial statements (unaudited)

Organization and significant accounting policies

UBS PACE Money Market Investments (the "Portfolio") is a diversified portfolio of UBS PACE Select Advisors Trust (the "Trust"), which was organized as a Delaware statutory trust under the laws of the State of Delaware by Certificate of Trust dated September 9, 1994, as amended June 9, 1995 and thereafter, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended, as an open-end management investment company. The trustees of the Trust have authority to issue an unlimited number of shares of beneficial interest, par value $0.001 per share.

The Trust currently offers fifteen Portfolios available for investment, each having its own investment objectives and policies. Shares of the Portfolio currently are available only to participants in the UBS PACESM Select Advisors Program and the UBS PACESM Multi Advisor Program.

The Trust accounts separately for the assets, liabilities and operations for each Portfolio. Expenses directly attributable to each Portfolio are charged to that Portfolio's operations; expenses which are applicable to all Portfolios are allocated among them on a pro rata basis.

In the normal course of business the Portfolio may enter into contracts that contain a variety of representations or that provide indemnification for certain liabilities. The Portfolio's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

The preparation of financial statements in accordance with US generally accepted accounting principles requires the Portfolio's management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements.


20


UBS PACE Money Market Investments

Notes to financial statements (unaudited)

Actual results could differ from those estimates. The following is a summary of significant accounting policies:

Valuation and accounting for investments and investment income—Investments are valued at amortized cost, unless the Trust's Board of Trustees (the "Board") determines that this does not represent fair value. Periodic review and monitoring of the valuation of securities held by the Portfolio is performed in an effort to ensure that amortized cost approximates market value. Investment transactions are recorded on the trade date. Realized gains and losses from investment transactions are calculated using the identified cost method. Interest income is recorded on an accrual basis. Premiums are amortized and discounts are accreted as adjustments to interest income and the identified cost of investments.

In September 2006, the Financial Accounting Standards Board ("FASB") issued Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of January 31, 2008, management does not believe the adoption of FAS 157 will impact the amounts reported in the financial statements, however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain measurements reported on the Statement of operations for a fiscal period.

Repurchase agreements—The Portfolio may purchase securities or other obligations from a bank or securities dealer (or its affiliate), subject to the seller's agreement to repurchase them at an agreed upon date (or upon demand) and price. The Portfolio maintains custody of the underlying obligations prior to their repurchase, either through its regular custodian or through a


21


UBS PACE Money Market Investments

Notes to financial statements (unaudited)

special "tri-party" custodian or sub-custodian that maintains a separate account for both the Portfolio and its counterparty. The underlying collateral is valued daily to ensure that the value, including accrued interest, is at least equal to the repurchase price. In the event of default of the obligation to repurchase, the Portfolio generally has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Repurchase agreements involving obligations other than US government securities (such as commercial paper, corporate bonds and mortgage loans) may be subject to special risks and may not have the benefit of certain protections in the event of counterparty insolvency. If the seller (or seller's guarantor, if any) becomes insolvent, the Portfolio may suffer delays, costs and possible losses in connection with the disposition or retention of the collateral. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. The Portfolio may participate in joint repurchase agreement transactions with other funds managed, advised or sub-advised by UBS Global Asset Management (Americas) Inc. ("UBS Global AM").

Dividends and distributions—Dividends and distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions is determined in accordance with federal income tax regulations, which may differ from US generally accepted accounting principles. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification.

Concentration of risk

The ability of the issuers of debt securities held by the Portfolio to meet their obligations may be affected by economic and political developments, including those particular to a specific industry, country, state or region.


22


UBS PACE Money Market Investments

Notes to financial statements (unaudited)

Investment manager and administrator

The Board has approved an investment management and administration contract ("Management Contract") with UBS Global AM. In accordance with the Management Contract, the Portfolio pays UBS Global AM an investment management and administration fee, which is accrued daily and paid monthly, at an annual rate of 0.35% of the Portfolio's average daily net assets. At January 31, 2008, the Portfolio owed UBS Global AM $154,321 for investment management and administration fees.

UBS Global AM has contractually undertaken to waive a portion of the Portfolio's investment management and administration fees and/or reimburse a portion of the Portfolio's other expenses, when necessary, to maintain the total annual operating expenses (excluding interest expense, if any) at a level not exceeding 0.60% through November 30, 2008. The Portfolio will make a payment to UBS Global AM for any previously reimbursed expenses during the following three fiscal years to the extent that operating expenses are otherwise below the expense cap. For the six months ended January 31, 2008, UBS Global AM reimbursed the Portfolio for non-management fee expenses totaling $672,039. At January 31, 2008, UBS Global AM owed the portfolio $119,429 for expense reimbursements.

At January 31, 2008, the Portfolio had expense reimbursements subject to repayment and respective dates of expirations as follows:

Expense
reimbursements
subject to repayment		   Expires
July 31,
2008		   Expires
July 31,
2009		   Expires
July 31,
2010		   Expires
July 31,
2011		  
$3,705,176   $ 718,836     $ 1,115,063     $ 1,199,238     $ 672,039    

 

Additional information regarding compensation to affiliate of a board member

Effective March 1, 2005, Professor Meyer Feldberg accepted the position of senior advisor to Morgan Stanley, resulting in him becoming an interested trustee of the Portfolio. The Portfolio has been informed that Professor Feldberg's role at Morgan Stanley


23


UBS PACE Money Market Investments

Notes to financial statements (unaudited)

does not involve matters directly affecting any UBS funds. Portfolio transactions are executed through Morgan Stanley based on that firm's ability to provide best execution of the transactions. During the six months ended January 31, 2008, the Portfolio purchased and sold certain securities (e.g., fixed income securities) in principal trades with Morgan Stanley having an aggregate value of $718,469,069.

Morgan Stanley received compensation in connection with these trades, which may have been in the form of a "mark-up" or "mark-down" of the price of the securities, a fee from the issuer for maintaining a commercial paper program, or some other form of compensation. Although the precise amount of this compensation is not generally known by the Portfolio's investment manager, it is believed that under normal circumstances it represents a small portion of the total value of the transactions.

Transfer agency and related services fees

UBS Financial Services Inc. provides transfer agency related services to the Portfolio pursuant to a delegation of authority from PFPC Inc. ("PFPC"), the Portfolio's transfer agent, and is compensated for these services by PFPC, not the Portfolio.

For the six months ended January 31, 2008, UBS Financial Services Inc. received from PFPC, not the Portfolio, $495,395 of the total transfer agency and related services fees paid by the Portfolio to PFPC.

Other liabilities and components of net assets

At January 31, 2008, the Portfolio had the following liabilities outstanding:

Payable for investments purchased   $ 9,973,908    
Payable for shares of beneficial interest repurchased     2,759,378    
Dividends payable to shareholders     816,901    
Other accrued expenses*     528,270    

 

* Excludes investment management and administration fees.


24


UBS PACE Money Market Investments

Notes to financial statements (unaudited)

At January 31, 2008, the components of net assets were as follows:

Accumulated paid in capital   $ 523,108,823    
Accumulated net realized gain from investment activities     41,987    
Net assets   $ 523,150,810    

 

Federal tax status

The Portfolio intends to distribute substantially all of its income and to comply with the other requirements of the Internal Revenue Code applicable to regulated investment companies. Accordingly, no provision for federal income taxes is required. In addition, by distributing during each calendar year substantially all of its net investment income, net realized capital gains and certain other amounts, if any, the Portfolio intends not to be subject to a federal excise tax.

The tax character of distributions paid to shareholders by the Portfolio during the six months ended January 31, 2008 and the fiscal year ended July 31, 2007 was ordinary income.

The components of accumulated earnings (deficit) on a tax basis for the current fiscal year will be determined after the Portfolio's fiscal year ending July 31, 2008.

At July 31, 2007, the Portfolio has a net capital loss carryforward of $449. This loss carryforward is available as a reduction, to the extent provided in the regulations, of any future net realized capital gains; $272 will expire by July 31, 2014 and $177 will expire by July 31, 2015.

In accordance with US Treasury regulations, the Portfolio has elected to defer realized capital losses of $150 arising after October 31, 2006. Such losses are treated for tax purposes as arising on August 1, 2007.

The Portfolio adopted the provisions of Financial Accounting Standards Board Interpretation No. 48 ("FIN 48"), Accounting for


25


UBS PACE Money Market Investments

Notes to financial statements (unaudited)

Uncertainty in Income Taxes. The implementation of FIN 48 resulted in no material liabilities for unrecognized tax benefits and no material changes to the beginning net asset values of the Portfolio.

As of and during the period ended January 31, 2008, the Portfolio did not have any liabilities for any unrecognized tax benefits. The Portfolio recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of operations. During the period, the Portfolio did not incur any interest or penalties.

Each of the tax years in the three year period ended July 31, 2007, remains subject to examination by the Internal Revenue Service and state taxing authorities. The adoption of FIN 48 had no impact on the operations of the Portfolio for the period ended January 31, 2008.

Shares of beneficial interest

There is an unlimited amount of $0.001 par value shares of beneficial interest authorized. Transactions in shares of beneficial interest, at $1.00 per share, were as follows:

    For the
six months
ended
January 31, 2008		   For the
year ended
July 31, 2007		  
Shares sold     372,077,075       424,841,805    
Shares repurchased     (267,538,444 )     (376,397,873 )  
Dividends reinvested     10,007,251       17,545,669    
Net increase in shares outstanding     114,545,882       65,989,601    

 


26



UBS PACE Money Market Investments

General information (unaudited)

Quarterly Form N-Q portfolio schedule

The Portfolio will file its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The Portfolio's Forms N-Q are available on the SEC's Web site at http://www.sec.gov. The Portfolio's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC 0330. Additionally, you may obtain copies of Forms N-Q from the Portfolio upon request by calling 1-800-647 1568.

Proxy voting policies, procedures and record

You may obtain a description of the Portfolio's (1) proxy voting policies, (2) proxy voting procedures and (3) information regarding how the Portfolio voted any proxies related to portfolio securities during the most recent 12-month period ended June 30 for which an SEC filing has been made, without charge, upon request by contacting the Portfolio directly at 1-800-647 1568, online on the Portfolio's Web site: www.ubs.com/ubsglobalam-proxy, or on the EDGAR Database on the SEC's Web site (http://www.sec.gov).


27


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28



Trustees

Richard Q. Armstrong
Chairman

Alan S. Bernikow

Richard R. Burt

Meyer Feldberg

Bernard H. Garil

Heather R. Higgins

Principal Officers

Kai Sotorp  Thomas Disbrow
President  Vice President and Treasurer

Mark F. Kemper  Michael H. Markowitz
Vice President and Secretary  Vice President

Investment Manager and
Administrator

UBS Global Asset Management (Americas) Inc.
51 West 52nd Street
New York, New York 10019-6114

Principal Underwriter

UBS Global Asset Management (US) Inc.
51 West 52nd Street
New York, New York 10019-6114

The financial information included herein is taken from the records of the Portfolio without examination by independent registered public accountants who do not express an opinion thereon.

This report is not to be used in connection with the offering of shares of the Portfolio unless accompanied or preceded by an effective prospectus.

© 2008 UBS Global Asset Management (Americas) Inc. All rights reserved.


PRESORTED
STANDARD
U.S. POSTAGE
PAID
COMPUTERSHARE

UBS Global Asset Management (Americas) Inc.

51 West 52nd Street

New York, New York 10019



 

Item 2.  Code of Ethics.

 

Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report.

 

Item 3.  Audit Committee Financial Expert.

 

Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report.

 

Item 4.  Principal Accountant Fees and Services.

 

Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report.

 

Item 5. Audit Committee of Listed Registrants.

 

Not applicable to the registrant.

 

Item 6.  Schedule of Investments.

 

Included as part of the report to shareholders filed under Item 1 of this form.

 

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

 

Not applicable to the registrant.

 

Item 8.  Portfolio Managers of Closed-End Management Investment Companies.

 

Not applicable to the registrant.

 

Item 9.  Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

Not applicable to the registrant.

 


 

Item 10.  Submission of Matters to a Vote of Security Holders.

 

The registrant’s Board has established a Nominating and Corporate Governance Committee.  The Nominating and Corporate Governance Committee will consider nominees recommended by shareholders if a vacancy occurs among those board members who are not “interested persons” as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended.  In order to recommend a nominee, a shareholder should send a letter to the chairperson of the Nominating and Corporate Governance Committee, Richard R. Burt, care of the Secretary of the registrant at UBS Global Asset Management (Americas) Inc., 51 West 52nd Street, New York, New York 10019-6114, and indicate on the envelope “Nominating and Corporate Governance Committee.”  The shareholder’s letter should state the nominee’s name and should include the nominee’s resume or curriculum vitae, and must be accompanied by a written consent of the individual to stand for election if nominated for the Board and to serve if elected by shareholders.

 

Item 11.  Controls and Procedures.

 

(a)    The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

 

(b)    The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant’s most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12.  Exhibits.

 

(a)

(1) Code of Ethics – Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report.

 

 

(a)

(2) Certifications of principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 is attached hereto as Exhibit EX-99.CERT.

 

 

(a)

(3) Written solicitation to purchase securities under Rule 23c-1 under the Investment Company Act of 1940 sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons – not applicable to the registrant.

 

 

(b)

Certifications of principal executive officer and principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is attached hereto as Exhibit EX-99.906CERT.

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

UBS PACE Select Advisors Trust

 

By:

/s/ Kai R. Sotorp

 

 

Kai R. Sotorp

 

President

 

 

Date:

April 10, 2008

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By:

/s/ Kai R. Sotorp

 

 

Kai R. Sotorp

 

President

 

 

Date:

April 10, 2008

 

 

By:

/s/ Thomas Disbrow

 

 

Thomas Disbrow

 

Vice President and Treasurer

 

 

Date:

April 10, 2008