PACE Alternative Strategies Investments (Second Prospectus Summary) | PACE Alternative Strategies Investments

PACE Alternative Strategies Investments

Investment objective

Long-term capital appreciation.

Fees and expenses of the fund

These tables describe the fees and expenses that you may pay if you buy and hold

shares of the fund.

Shareholder fees (fees paid directly from your investment)

Shareholder Fees	PACE Alternative Strategies Investments Class P
Maximum front-end sales charge (load) imposed on purchases (as a % of the offering price)	none
Maximum deferred sales charge (load) (as a % of the offering price)	none
Redemption fee (as a % of the amount redeemed within 90 days of purchase, if applicable)	1.00%
Maximum annual account fee for PACE Select Advisors Program (as a % of average value of shares held on the last calendar day of the previous quarter)	2.00%

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)

Annual Fund Operating Expenses		PACE Alternative Strategies Investments Class P
Management fees		1.30%
Distribution and/or service (12b-1) fees		none
Miscellaneous expenses (includes administration fee of 0.10%)		0.41%
Dividend expense, borrowing costs and related interest expense attributable to securities sold short		0.10%
Other expenses		0.51%
Total annual fund operating expenses		1.81%
Management fee waiver/expense reimbursements	[1]	0.05%
Total annual fund operating expenses after fee waiver and/or expense reimbursements	[1]	1.76%

Example

This example is intended to help you compare the cost of investing in the fund

with the cost of investing in other mutual funds. The example assumes that you

invest $10,000 in the fund for the time periods indicated and then redeem all of

your shares at the end of those periods. The example also assumes that your

investment has a 5% return each year and that the fund's operating expenses

remain the same.



Although your actual costs may be higher or lower, based on these assumptions

your costs would be:

^[1]

Expense Example (USD $)	Expense Example, With Redemption, 1 Year	Expense Example, With Redemption, 3 Years	Expense Example, With Redemption, 5 Years	Expense Example, With Redemption, 10 Years
PACE Alternative Strategies Investments Class P	378	1,159	1,958	4,041

Portfolio turnover

The fund pays transaction costs, such as commissions, when it buys and sells

securities (or "turns over" its portfolio). A higher portfolio turnover rate may

indicate higher transaction costs and may result in higher taxes when fund

shares are held in a taxable account. These costs, which are not reflected in

annual fund operating expenses or in the example, affect the fund's performance.

During the most recent fiscal year, the fund's portfolio turnover rate was 295%

of the average value of its portfolio.

Principal strategies

Principal investments



The fund has a broad investment mandate that permits it to use an extensive

range of investment strategies and to invest in a wide spectrum of equity, fixed

income and derivative securities in pursuing its investment objective. The fund

seeks to achieve its investment objective with a low correlation to market

environments for traditional asset classes and as such attempts to achieve a

total rate of return which exceeds the rate of return on 3-month Treasury bills

by 3.00% to 4.00%, exclusive of investment management fees, on an annualized

basis over a full market cycle. The fund's manager, UBS Global Asset Management

(Americas) Inc. ("UBS Global AM"), does not represent or guarantee that the fund

will meet this return goal, and investors should be aware that, because of the

fund's complex strategies and investments, an investment in the fund involves a

significantly higher risk level than an investment in US Treasury bills.



The fund invests in equity securities of US and non-US companies of various

market capitalizations. The fund also invests in fixed income securities, which

are not subject to any credit rating or maturity limitations, issued by

companies and government and supranational entities around the world. The fund

may invest in emerging as well as developed markets and may invest a significant

portion of its assets in the securities of companies in particular economic

sectors.



The fund may also invest extensively in derivative instruments, which are

generally financial contracts whose value depends upon, or is derived from, the

value of an underlying asset, reference rate, or index, and may relate to equity

securities, fixed income securities, interest rates, total return rates,

currencies or currency exchange rates, commodities and related indexes.

Derivatives involve risks different from, and possibly greater than, the risks

associated with investing directly in securities and other instruments.



The fund is also permitted to engage in "short-selling." When selling short, the

fund will sell a security it does not own at the then-current market price and

then borrow the security to deliver to the buyer. The fund is then obligated to

buy the security on a later date so that it can return the security to the

lender. Short selling provides opportunities to increase the fund's total

returns, but also entails significant potential risks.



Management process



UBS Global AM, the fund's manager, selects investment advisors for the fund,

subject to approval of the fund's board. Analytic Investors, LLC ("Analytic

Investors"), Wellington Management Company, LLP ("Wellington Management"),

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

Quadrant") and Standard Life Investments (Corporate Funds) Limited ("Standard

Life Investments") currently serve as the fund's investment advisors. The

allocation of the fund's assets between investment advisors is designed to

achieve long-term capital appreciation while having a low correlation to

traditional equity and fixed income asset classes. Subject to approval by the

fund's board of trustees, UBS Global AM may in the future allocate assets to

additional or different investment advisors to employ other portfolio management

strategies, and changes to current strategies may be made.



Analytic Investors employs a long/short global equity strategy. This strategy is

implemented by taking long and short positions of equity securities publicly

traded in the US and in foreign markets by direct equity investment (and may

also be implemented through the use of derivatives). The fund buys securities

"long" that Analytic Investors believes will out-perform the market, and sells

securities "short" that Analytic believes will under-perform the market. This

is, however, not a market neutral strategy. The fund's long-short exposure will

vary over time based on Analytic Investors' assessment of market conditions and

other factors.



Wellington Management employs an "opportunistic equity plus alpha strategy."

This strategy is implemented by opportunistically seeking non-core equity

exposures (e.g., non-US small cap, emerging markets equity and sector exposures)

that Wellington Management believes are attractively valued, have positive

structural characteristics in the current market environment or are expected to

benefit from anticipated economic cycles. In pursuing this strategy, Wellington

Management may buy and sell, directly or indirectly, (1) listed or unlisted

equity securities, including common stock, convertible securities, REITs (i.e.,

shares of real estate investment trusts), ADRs (i.e., American Depositary

Receipts) and other depositary securities, and (2) fixed income securities,

including government, agency, supranational, mortgage-backed, corporate,

asset-backed, cash equivalents and other fixed income securities. These fixed

income securities may be denominated in US dollars or other currencies, and may

include non-investment grade and emerging market debt issues. Wellington

Management also invests in ETFs (i.e., exchange-traded funds) and derivative

instruments (both exchange-traded and over-the counter), including equity index,

interest rate, credit and fixed income index futures; options and options on

futures; forward contracts; structured notes; swaps and swap options; and other

similar instruments to gain exposure and manage risks related to non-core equity

securities and other assets it has identified in pursuing this strategy. These

derivative instruments may be related to countries, industries, broad-market

indices, or similar groups of securities, and to individual currencies or groups

of currencies.



In addition to the non-core equity exposures, Wellington Management may employ

other investment approaches, for example, by allocating assets to fixed income

securities or other non-equity investments, that are expected to contribute

positive returns over time with respect to its portion of the fund.



First Quadrant employs a "global macro strategy." This strategy is implemented

by combining several different complex investment techniques. First Quadrant

uses a "tactical risk allocation" approach across global markets which increases

investment risk where it believes opportunities for risk-adjusted profit are

high and attempts to lower market risks when it believes gains have been

realized and future gains are unlikely. First Quadrant also assesses the

combination of local market and economic factors as well as global equity, fixed

income or currency market factors and attempts to capture inefficiencies in

those markets. First Quadrant's strategy is primarily implemented through the

use of derivatives, and First Quadrant seldom holds securities "long." It uses

exchange traded futures on global equity indices and government bonds, forwards,

swaps and exchange traded options such as options on indices. By using

derivatives, First Quadrant intends to quickly and efficiently gain market

exposure to equity securities, fixed income securities, and foreign currencies,

and seeks to take advantage of value (and to reduce exposure to certain risks)

that it identifies in these global markets. The fund also may hold cash or

invest its cash balances at such times and in any permissible investments deemed

appropriate by First Quadrant.



GSAM employs a "global LIBOR plus strategy" and will seek to employ a number of

diverse investment strategies and will also seek to allocate capital tactically

to the strategies which it believes will offer the best opportunities. GSAM

focuses mainly on the global fixed income and currency markets, across various

investment grade and sub-investment grade sectors. GSAM uses financial

derivative instruments to seek to obtain both net long and net short exposures

in, amongst other things, interest rates, credit and currencies, and other

permitted investments to generate returns or for hedging purposes.



GSAM is expected to invest mainly in (1) currencies; (2) fixed income

securities, including government bonds, government agency bonds, supranational

bonds, asset-backed securities, mortgage-backed securities (including non-agency

mortgage-backed securities), collateralized loan obligations, corporate bonds

(including corporate high yield bonds) and emerging market debt; and (3)

financial derivative instruments, including, swaps (including interest rate

swaps, credit default swaps and total return swaps), futures contracts, options,

foreign currency forward contracts, reverse repurchase agreements, and may

engage in other transactions involving currency and interest rate hedging,

security hedging or other strategies to manage risk and to expose the fund to

certain markets or securities, and these instruments and transactions may result

in leverage. The fund may also hold cash or invest its cash balances at such

times and in any instruments deemed appropriate by GSAM.



Standard Life Investments employs a "global multi-asset strategy" and seeks to

achieve a total return by delivering a diversified global portfolio that makes

use of multiple strategies across various asset classes. It aims to exploit

market cyclicality and a diverse array of inefficiencies across and within

global markets to maximize risk adjusted absolute return, by investing in listed

equity, equity-related and debt securities, including exchange traded funds, and

derivatives or other instruments, both for investment and hedging purposes. The

fund may take long and/or short positions, and its derivative investments (which

may be used routinely) may include futures, options, swaps, and forward currency

contracts.



Standard Life Investments manages its strategies dynamically over time, and will

actively modify investment strategies and develop new strategies in response to

additional research, changing market conditions, or other factors. Its

strategies seek to deliver returns commensurate with reasonable levels of risk

and tangible diversification benefits, while having both sufficient liquidity

and capacity to benefit the fund in a significant way. Standard Life Investments

may also hold cash or invest its cash balances in cash equivalents and

short-term investments, in order to cover the derivative transactions or

otherwise in its discretion.

Principal risks

All investments carry a certain amount of risk and the fund cannot guarantee

that it will achieve its investment objective. You may lose money by investing

in the fund. An investment in the fund is not a deposit of a bank and is not

insured or guaranteed by the Federal Deposit Insurance Corporation or any other

government agency. The principal risks presented by an investment in the fund

are:



Aggressive investment risk: The fund may employ investment strategies that

involve greater risks than the strategies used by typical 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.



Arbitrage trading risk: The underlying relationships between securities in which

the fund takes arbitrage investment positions may change in an adverse manner,

causing the fund to realize losses.



Credit risk: The risk that the fund could lose money if the issuer or guarantor

of a fixed income security, or the counterparty to or guarantor of a derivative

contract, is unable or unwilling to meet its financial obligations. This risk is

likely greater for lower quality investments than for investments that are higher

quality.



Derivatives risk: The value of "derivatives"-so-called because their value

"derives" from the value of an underlying asset, reference rate or index-may

rise or fall more rapidly than other investments. When using derivatives for

non-hedging purposes, it is possible for the fund to lose more than the amount

it invested in the derivative. The risks of investing in derivative instruments

also include market and management risks. Derivatives relating to fixed income

markets are especially susceptible to interest rate risk and credit risk. In

addition, many types of swaps and other non-exchange traded derivatives may be

subject to liquidity risk, credit risk and mispricing or valuation complexity.

These derivatives risks are different from, and may be greater than, the risks

associated with investing directly in securities and other instruments.



Swap agreement risk: The fund may enter into credit, total return, equity,

interest rate, index, currency and variance swap agreements. Swap agreements can

be less liquid and more difficult to value than other investments. Because its

cash flows are based in part on changes in the value of the reference asset, a

total return swap's market value will vary with changes in that reference asset.

In addition, the fund may experience delays in payment or loss of income if the

counterparty fails to perform under the contract.



Equity risk: Stocks and other equity securities, and securities convertible into

stocks, generally fluctuate in value more than bonds. The fund could lose all of

its investment in a company's stock.



Foreign currency risk: The value of non-US dollar denominated securities held by

the fund may be affected by changes in exchange rates or control regulations. If

a local currency declines against the US dollar, the value of the holding

decreases in US dollar terms. In addition, the fund may be exposed to losses if

its other foreign currency positions (e.g., options, forward commitments) move

against it.



Foreign investing risk: The value of the fund'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. Investments in foreign government bonds involve special risks because

the fund may have limited legal recourse in the event of default. Also, foreign

securities are sometimes less liquid and more difficult to sell and to value

than securities of US issuers. These risks are greater for investments in

emerging market issuers. In addition, investments in emerging market issuers may

decline in value because of unfavorable foreign government actions, greater

risks of political instability or the absence of accurate information about

emerging market issuers.



High yield securities ("junk bonds") risk: Lower-rated securities (the issuers

of which are typically in poor financial health) are subject to higher risks

than investment grade securities. For example, lower-rated securities may be (1)

subject to a greater risk of loss of principal and non-payment of interest

(including default by the issuer); (2) subject to greater price volatility; and

(3) less liquid than investment grade securities. The prices of such securities

may be more vulnerable to bad economic news, or even the expectation of bad

news, than higher rated fixed income securities.



Illiquidity risk: The risk that investments cannot be readily sold at the

desired time or price, and the fund may have to accept a lower price or may not

be able to sell the security at all. An inability to sell securities can

adversely affect the fund's value or prevent the fund from taking advantage of

other investment opportunities.



Interest rate risk: An increase in prevailing interest rates typically causes

the value of fixed income securities to fall. Changes in interest rates will

likely affect the value of longer-duration fixed income securities more than

shorter-duration securities and higher quality securities more than lower

quality securities. When interest rates are falling, some fixed income

securities provide that the issuer may repay them earlier than the maturity

date, and if this occurs the fund may have to reinvest these repayments at lower

interest rates.



Leverage risk associated with financial instruments: The use of financial

instruments to increase potential returns, including derivatives used for

investment (non-hedging) purposes, may cause the fund to be more volatile than

if it had not been leveraged. The use of leverage may also accelerate the

velocity of losses and can result in losses to the fund that exceed the amount

originally invested.



Leverage risk associated with borrowing: The fund may borrow money from banks to

purchase investments for the fund, which is a form of leverage. If the fund

borrows money to purchase securities and the fund's investments decrease in

value, the fund's losses will be greater than if the fund did not borrow money

for investment purposes. In addition, if the return on an investment purchased

with borrowed funds is not sufficient to cover the cost of borrowing, then the

net income of the fund would be less than if borrowing were not used.



Limited capitalization risk: The risk that securities of smaller capitalization

companies tend to be more volatile and less liquid than securities of larger

capitalization companies. This can have a disproportionate effect on the market

price of smaller capitalization companies and affect the fund's ability to

purchase or sell these securities. In general, smaller capitalization companies

are more vulnerable than larger companies to adverse business or economic

developments and they may have more limited resources.



Market risk: The risk that the market value of the fund's investments may

fluctuate, sometimes rapidly or unpredictably, as the stock and bond markets

fluctuate. Market risk may affect a single issuer, industry, or sector of the

economy, or it may affect the market as a whole.



Non-diversification risk: The fund is a non-diversified investment company,

which means that the fund may invest more of its assets in a smaller number of

issuers than a diversified investment company. As a non-diversified fund, the

fund's share price may be more volatile and the fund has a greater potential to

realize losses upon the occurrence of adverse events affecting a particular

issuer.



Sector risk: Because the fund may invest a significant portion of its assets in

the stocks of companies in particular economic sectors, economic changes

adversely affecting such a sector may have more of an impact on the fund's

performance than another fund having a broader range of investments.



Short sales risk: There are certain unique risks associated with the use of

short sales strategies. When selling a security short, an investment advisor

will sell a security it does not own at the then-current market price and then

borrow the security to deliver to the buyer. The fund is then obligated to buy

the security on a later date so it can return the security to the lender. Short

sales therefore involve the risk that the fund will incur a loss by subsequently

buying a security at a higher price than the price at which the fund previously

sold the security short. This would occur if the securities lender required the

fund to deliver the securities the fund had borrowed at the commencement of the

short sale and the fund was unable to either purchase the security at a

favorable price or to borrow the security from another securities lender. If

this occurs at a time when other short sellers of the security also want to

close out their positions, a "short squeeze" can occur. A short squeeze occurs

when demand is greater than supply for the security sold short. Moreover,

because a fund's loss on a short sale arises from increases in the value of the

security sold short, such loss, like the price of the security sold short, is

theoretically unlimited. By contrast, a fund's loss on a long position arises

from decreases in the value of the security and therefore is limited by the fact

that a security's value cannot drop below zero. It is possible that the fund's

securities held long will decline in value at the same time that the value of

the securities sold short increases, thereby increasing the potential for loss.



Structured security risk: The fund may purchase securities representing

interests in underlying assets, but structured to provide certain advantages not

inherent in those assets (e.g., enhanced liquidity and yields linked to

short-term interest rates). If those securities behaved in a way that the fund's

investment advisors did not anticipate, or if the security structures

encountered unexpected difficulties, the fund could suffer a loss.



Valuation risk: During periods of reduced market liquidity or in the absence of

readily available market quotations for securities, the ability of the fund to

value the fund's securities becomes more difficult and the judgment of the

fund's manager and investment advisors may play a greater role in the valuation

of the securities due to reduced availability of reliable objective pricing

data.



Portfolio turnover risk: The fund may engage in frequent trading, which can

result in high portfolio turnover. A high portfolio turnover rate involves

greater expenses to the fund, including transaction costs, and is likely to

generate more taxable short-term gains for shareholders, which may have an

adverse impact on performance.



Municipal securities risk: Municipal securities are subject to interest rate and

credit risks. The ability of a municipal issuer to make payments and the value

of municipal securities can be affected by uncertainties in the municipal

securities market. Such uncertainties could cause increased volatility in the

municipal securities market and could negatively impact the fund's net asset

value and/or the distributions paid by the fund. Municipalities continue to

experience difficulties in the current economic and political environment.



Management risk: The risk that the investment strategies, techniques and risk

analyses employed by an investment advisor may not produce the desired results.

Performance

Risk/return bar chart and table



The performance information that follows shows the fund's performance

information in a bar chart and an average annual total returns table. The bar

chart does not reflect the maximum annual PACE Select Advisors Program fee; if

it did, the total returns shown would be lower. The information provides some

indication of the risks of investing in the fund by showing changes in the

fund's performance from year to year and by showing how the fund's average

annual total returns compare with those of a broad measure of market

performance. The Barclays Capital Global Aggregate Index shows how the fund's

performance compares to the broad global markets for US and non-US corporate,

government, governmental agency, supranational, mortgage-backed and asset-backed

fixed income securities. The US Consumer Price Index (CPI) shows how the fund's

performance compares to a broad indicator of inflation. Life of class

performance for the indices is as of Class P's inception month-end. The fund's

past performance (before and after taxes) is not necessarily an indication of

how the fund will perform in the future. This may be particularly true for the

period prior to September 11, 2007, which is the date on which GSAM assumed

day-to-day management of a portion of the fund's assets. Analytic Investors and

Wellington Management each has been responsible for the day-to-day management of

a separate portion of the fund's assets since inception of the fund. First

Quadrant assumed day-to-day management of a separate portion of the fund's

assets on April 8, 2009. Standard Life Investments assumed day-to-day management

of a separate portion of the fund's assets on August 5, 2010. Updated

performance for the fund is available at

http://globalam-us.ubs.com/corpweb/performance.do.



After-tax returns are calculated using the historical highest individual federal

marginal income tax rates and do not reflect the impact of state and local

taxes. Actual after-tax returns depend on an investor's tax situation and may

differ from those shown. In addition, the after-tax returns shown are not

relevant to investors who hold fund shares through tax-deferred arrangements,

such as 401(k) plans or individual retirement accounts.

PACE Alternative Strategies Investments Annual Total Returns of Class P Shares (2007 was Class P’s first full calendar year of operations)

Total return January 1 - September 30, 2011: (5.73)%

Best quarter during calendar years shown-2nd Q 2009: 7.65%

Worst quarter during calendar years shown-3rd Q 2008: (11.93)%

Average annual total returns (for the periods ended December 31, 2010)

Average Annual Total Returns PACE Alternative Strategies Investments	Average Annual Returns, Label	Average Annual Returns, 1 Year	Average Annual Returns, Since Inception	Average Annual Returns, Inception Date
Class P	Class P Return before taxes	1.87%	(1.95%)	Apr. 10, 2006
Class P After Taxes on Distributions	Class P Return after taxes on distributions	1.51%	(2.28%)	Apr. 10, 2006
Class P After Taxes on Distributions and Sales	Class P Return after taxes on distributions and sale of fund shares	1.27%	(1.77%)	Apr. 10, 2006
Citigroup 3-Month US Treasury Bill Index	Citigroup 3-Month US Treasury Bill Index (Indices reflect no deduction for fees, expenses or taxes.)	0.13%	2.16%
Barclays Capital Global Aggregate Index	Barclays Capital Global Aggregate Index (Indices reflect no deduction for fees, expenses or taxes.)	5.54%	6.75%
US Consumer Price Index (CPI)	US Consumer Price Index (CPI) (Indices reflect no deduction for fees, expenses or taxes.)	1.50%	1.82%

[1] The fund and UBS Global Asset Management (Americas) Inc. ("UBS Global AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to (1) waive its management fees equal to an annual rate of 0.05% of the fund's average daily net assets through November 30, 2012; and (2) waive its management fees and/or reimburse expenses so that the fund's ordinary total operating expenses through November 28, 2012 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed 1.70%. The fund has agreed to repay UBS Global AM for any waived fees/reimbursed expenses (pursuant to item (2)) to the extent that it can do so over the following three fiscal years without causing the fund's expenses in any of those three years to exceed this expense cap. The fee waiver/expense reimbursement agreement may be terminated by the fund's board at any time and also will terminate automatically upon the expiration or termination of the fund's advisory contract with UBS Global AM. Upon termination of the agreement, however, UBS Global AM's three year recoupment rights will survive.

[1] Except that the expenses reflect the effects of the fund's fee waiver/expense reimbursement agreement for the first year only.