THE UBS FUNDS

 Supplement to the Statement of Additional Information dated September 30, 2002


                                                               September 2, 2003

Dear Investor,

     The following information supplements information contained in the
Statement of Additional Information in the section titled "Reduced Sales
Charges, Additional Exchange and Redemption Information and Other Services":

     UBS Global AM pays its affiliate, UBS Financial Services Inc., a fee equal
to 0.15% of the value at the time of sale of all shares of the Funds sold
through UBS Financial Services Inc. UBS Global AM also pays UBS Financial
Services Inc. a monthly retention fee at the annual rate of 0.05% of the value
of shares of the Funds, net of the annualized value of shares sold during the
period, including shares purchased through the reinvestment of dividends, and
that are held in UBS Financial Services Inc. client accounts.


                                                                   Item # ZS-204