-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, E0dKtTmQIIG1LPJKfpKitLZ467dqH97PaZBQIkmSQOmztFmHFCqEdq53oA6A2yIQ eRmAizavK8s8YmA6TFbmWA== 0001047469-03-030880.txt : 20030916 0001047469-03-030880.hdr.sgml : 20030916 20030916164254 ACCESSION NUMBER: 0001047469-03-030880 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20030916 EFFECTIVENESS DATE: 20030916 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UBS FUNDS CENTRAL INDEX KEY: 0000886244 IRS NUMBER: 367056204 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 033-47287 FILM NUMBER: 03897967 BUSINESS ADDRESS: STREET 1: 209 S LASALLE ST CITY: CHICAGO STATE: IL ZIP: 60604-1795 BUSINESS PHONE: 8001482430 MAIL ADDRESS: STREET 1: 209 S LASALLE ST CITY: CHICAGO STATE: IL ZIP: 60604-1795 FORMER COMPANY: FORMER CONFORMED NAME: BRINSON FUNDS INC DATE OF NAME CHANGE: 19920929 497 1 a2118733z497.txt 497 [UBS GLOBAL ASSET MANAGEMENT LOGO] The UBS Funds UBS U.S. Value Equity Fund Prospectus September 30, 2002 (as revised September 15, 2003) This prospectus offers Class A, Class B, Class C and Class Y shares of the Fund. Each class has different sales charges and ongoing expenses. You can choose the class that is best for you based on how much you plan to invest and how long you plan to hold your Fund shares. Class Y shares are available only to certain types of investors. As with all mutual funds, the Securities and Exchange Commission has not approved or disapproved the Fund's shares or determined whether this prospectus is complete or accurate. To state otherwise is a crime. NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ Contents
PAGE ---- THE FUND WHAT EVERY INVESTOR SHOULD KNOW ABOUT THE FUND Investment Objective, Strategies, Securities Selection and Risks.......................... 2 Performance.................................. 3 Expenses and Fee Tables...................... 4 YOUR INVESTMENT INFORMATION FOR MANAGING YOUR FUND ACCOUNT Managing Your Fund Account................... 6 --Flexible Pricing --Buying Shares --Selling Shares --Exchanging Shares --Pricing and Valuation ADDITIONAL INFORMATION ADDITIONAL IMPORTANT INFORMATION ABOUT THE FUND Management................................... 16 Dividends and Taxes.......................... 17 Supplemental Investment Advisor Performance Information.................................. 18 Financial Highlights......................... 21 Where to learn more about the Fund........... Back Cover
THE FUND IS NOT A COMPLETE OR BALANCED INVESTMENT PROGRAM. - -------------------------------------------------------------------------------- UBS Global Asset Management 1 UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ Investment Objective, Strategies, Securities Selection and Risks FUND OBJECTIVE The Fund seeks to maximize total return, consisting of capital appreciation and current income. PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at least 80% of its net assets (plus borrowings for investment purposes, if any) in U.S. equity securities. Investments in equity securities may include dividend-paying securities, common stock and preferred stock. The Fund may (but is not required to) use options, futures and other derivatives as part of its investment strategy or to help manage portfolio risks. SECURITIES SELECTION In selecting securities, the Advisor focuses on, among other things, identifying discrepancies between a security's fundamental value and its market price. In this context, the fundamental value of a given security is the Advisor's assessment of what a security is worth. The Fund will select a security whose fundamental value it estimates to be greater than its market value at any given time. For each stock under analysis, the Advisor bases its estimates of value upon economic, industry and company analysis, as well as upon a company's management team, competitive advantage and core competencies. The Advisor then compares its assessment of a security's value against the prevailing market prices with the aim of constructing a portfolio of stocks with attractive relative price/value characteristics. The Fund will generally only invest in stocks that at the time of purchase are contained in its benchmark. The Fund may invest in cash or cash equivalent instruments, including shares of an affiliated investment company. When market conditions warrant, the Fund may make substantial temporary defensive investments in cash equivalents, which may affect the Fund's ability to pursue its investment objective. The Advisor actively manages the Fund. As such, increased portfolio turnover may result in higher costs for brokerage commissions, transaction costs and taxable gains. PRINCIPAL RISKS An investment in the Fund is not guaranteed; you may lose money by investing in the Fund. The principal risks presented by an investment in the Fund are: - - MARKET RISK--The risk that the market value of the Fund's investments will fluctuate as the stock and bond markets fluctuate. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. - - DERIVATIVES RISK--The Fund's investments in derivatives may rise or fall more rapidly than other investments. - -------------------------------------------------------------------------------- 2 UBS Global Asset Management UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ Performance There is no performance information quoted for the Fund as the Fund did not commence investment operations until June 29, 2001 and therefore, does not have a full calendar year of performance information. - -------------------------------------------------------------------------------- UBS Global Asset Management 3 UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ Expenses and Fee Tables FEES AND EXPENSES These tables describe the fees and expenses that you may pay if you buy, sell and hold shares of the Fund. SHAREHOLDER TRANSACTION EXPENSES (fees paid directly from your investment)
CLASS A CLASS B CLASS C CLASS Y ------- ------- ------- ------- Maximum Sales Charge (Load) (as a % of offering price)................................ 5.50% 5.00% 2.00% None Maximum Front-End Sales Charge (Load) Imposed on Purchases (as a % of offering price)................................ 5.50% None 1.00* None Maximum Contingent Deferred Sales Charge (Load) (CDSC) (as a % of offering price)................................ None 5.00% 1.00% None Exchange Fee................................................ None None None None
ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund assets)**
CLASS A CLASS B CLASS C CLASS Y -------- -------- -------- -------- Management Fees............................................. 0.70% 0.70% 0.70% 0.70% Distribution and/or Service (12b-1) Fees.................... 0.25% 1.00% 1.00% None Other Expenses***........................................... 2.95% 3.04% 2.96% 2.53% ----- ----- ----- ----- Total Annual Fund Operating Expenses........................ 3.90% 4.74% 4.66% 3.23% ===== ===== ===== ===== Management Fee Waiver/Expense Reimbursements................ 2.80% 2.89% 2.81% 2.38% ----- ----- ----- ----- Net Expenses****............................................ 1.10% 1.85% 1.85% 0.85% ===== ===== ===== =====
* The 1.00% front-end sales charge on Class C shares will be eliminated effective September 30, 2003. ** The operating expenses shown are based on expenses incurred during the Fund's most recent fiscal year ending June 30, 2002. Class B and Class C expense ratios are annualized. *** Includes an administrative fee of 0.075% paid by the Fund to UBS Global AM. **** The Trust, with respect to the Fund, and the Advisor have entered into a written agreement pursuant to which the Advisor has agreed to waive a portion of its fees and/or to reimburse expenses to the extent that the Fund's expenses, for its fiscal year ending June 30, 2004, otherwise would exceed the "Net Expenses" rates shown in the table above for each of the Class A, Class B, Class C and Class Y shares, as applicable. Pursuant to the written agreement, the Advisor is entitled to be reimbursed for any fees it waives and expenses it reimburses for a period of three years following such fee waivers and expense reimbursements, to the extent that such reimbursement of the Advisor by the Fund will not cause the Fund to exceed any applicable expense limit that is in place for the Fund. - -------------------------------------------------------------------------------- 4 UBS Global Asset Management UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ 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 sell all of your shares at the end of those periods unless otherwise stated. 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 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- Class A..................................................... $656 $1,430 $2,222 $4,278 Class B (assuming sale of all shares at end of period)...... 688 1,468 2,354 4,315 Class B (assuming no sale of shares)........................ 188 1,168 2,154 4,315 Class C (assuming sale of all shares at end of period)...... 386 1,241 2,203 4,635 Class C (assuming no sale of shares)........................ 286 1,241 2,203 4,635 Class Y..................................................... 87 772 1,481 3,367
- -------------------------------------------------------------------------------- UBS Global Asset Management 5 UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ Managing Your Fund Account FLEXIBLE PRICING The Fund offers four classes of shares--Class A, Class B, Class C and Class Y. Each class has different sales charges and ongoing expenses. You can choose the class that is best for you, based on how much you plan to invest and how long you plan to hold your shares of the Fund. Class Y shares are only available to certain types of investors. The Fund has adopted separate plans pertaining to the Class A, Class B and Class C shares of the Fund under Rule 12b-1 that allow the Fund to pay service and (for Class B and Class C shares) distribution fees for the sale of the Fund's shares and services provided to shareholders. Because the 12b-1 fees for Class B and Class C shares are paid out of the Fund's assets on an ongoing basis, over time they will increase the cost of your investment and may cost you more than if you paid the front-end sales charge for Class A shares. You may qualify for a waiver of certain sales charges on Class A, Class B and Class C shares. See "Sales Charge Waivers for Class A, Class B and Class C Shares" below. You may also qualify for a reduced sales charge on Class A shares. See "Sales Charge Reductions for Class A Shares" below. CLASS A SHARES Class A shares have a front-end sales charge that is included in the offering price of the Class A shares. This sales charge is paid at the time of purchase and is not invested in the Fund. Class A shares pay an annual service fee of 0.25% of average net assets, but they pay no distribution fees. The ongoing expenses for Class A shares are lower than for Class B and Class C shares. The Class A sales charges for the Fund are described in the following table: CLASS A SALES CHARGES
SALES CHARGE AS A PERCENTAGE OF: REALLOWANCE TO -------------------- SELECTED DEALERS OFFERING NET AMOUNT AS PERCENTAGE OF AMOUNT OF INVESTMENT PRICE INVESTED OFFERING PRICE - -------------------- -------- ---------- ---------------- Less than $50,000.................. 5.50% 5.82% 5.00% $50,000 to $99,999................. 4.50 4.71 4.00 $100,000 to $249,999............... 3.50 3.63 3.00 $250,000 to $499,999............... 2.50 2.56 2.00 $500,000 to $999,999............... 2.00 2.04 1.75 $1,000,000 and over (1)............ None None Up to 1.00(2)
(1) A contingent deferred sales charge of 1% of the shares' offering price or the net asset value at the time of sale by the shareholder, whichever is less, is charged on sales of shares made within one year of the purchase date. Class A shares representing reinvestment of dividends are not subject to this 1% charge. Withdrawals in the first year after purchase of up to 12% of the value of the fund account under the Fund's Automatic Cash Withdrawal Plan are not subject to this charge. (2) UBS Global AM pays 1.00% to the dealer for sales of greater than $1 million but less than $3 million, 0.75% for sales of at least $3 million but less than $5 million, 0.50% for sales of at least $5 million but less than $50 million, and 0.25% for sales of $50 million or more. CLASS B SHARES Class B shares have a contingent deferred sales charge. When you purchase Class B shares, we invest 100% of your purchase price in Fund shares. However, you may have to pay the deferred sales charge when you sell your Fund shares, depending on how long you own the shares. - -------------------------------------------------------------------------------- 6 UBS Global Asset Management UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ Class B shares pay an annual 12b-1 distribution fee of 0.75% of average net assets, as well as an annual 12b-1 service fee of 0.25% of average net assets. If you hold your Class B shares for the period specified below, they will automatically convert to Class A shares, which have lower ongoing expenses. If you sell Class B shares before the end of the specified period, you will pay a deferred sales charge. We calculate the deferred sales charge by multiplying the lesser of the net asset value of the Class B shares at the time of purchase or the net asset value at the time of sale by the percentage shown below:
PERCENTAGE (BASED ON AMOUNT OF INVESTMENT) BY WHICH THE SHARES' NET ASSET VALUE IS MULTIPLIED: ---------------------------------------------- LESS $100,000 $250,000 $500,000 IF YOU SELL THAN TO TO TO SHARES WITHIN: $100,000 $249,999 $499,999 $999,999 - -------------- ---------- ---------- ---------- ---------- 1st year since purchase....... 5% 3% 3% 2% 2nd year since purchase....... 4% 2% 2% 1% 3rd year since purchase....... 3% 2% 1% None 4th year since purchase....... 2% 1% None None 5th year since purchase....... 2% None None None 6th year since purchase....... 1% None None None 7th year since purchase....... None None None None
IF YOU ARE ELIGIBLE FOR A COMPLETE WAIVER OF THE SALES CHARGE ON CLASS A SHARES BECAUSE YOU ARE INVESTING $1 MILLION OR MORE, YOU SHOULD PURCHASE CLASS A SHARES, WHICH HAVE LOWER ONGOING EXPENSES. Class B shares automatically convert to Class A shares after the end of the sixth year if you purchase less than $100,000, after the end of the fourth year if you purchase at least $100,000 but less than $250,000, after the end of the third year if you purchase at least $250,000 but less than $500,000, and after the end of the second year if you purchase $500,000 or more but less than $1 million. TO QUALIFY FOR THE LOWER DEFERRED SALES CHARGE AND SHORTER CONVERSION SCHEDULE, YOU MUST MAKE THE INDICATED INVESTMENT AS A SINGLE PURCHASE. Regardless of the amount of the investment, Class B shares of Family Funds ("Family Funds" include other UBS Funds, UBS PACE Select funds and other funds for which UBS Global AM serves as principal underwriter) purchased or acquired prior to November 5, 2001 and exchanged (including exchanges as part of a reorganization) for shares of the Fund after November 5, 2001 (collectively, "Prior Class B Shares") are subject to a deferred sales charge at the time of redemption at the following percentages: (i) 5%, if shares are sold within the first year since purchase; (ii) 4%, if shares are sold within the second year since purchase; (iii) 3%, if shares are sold within the third year since purchase; (iv) 2%, if shares are sold within the fourth or fifth year since purchase; and (v) 1%, if shares are sold within the sixth year of purchase. Prior Class B Shares held longer than six years are not subject to a deferred sales charge and automatically convert to Class A shares, which have lower ongoing expenses. We will not impose the deferred sales charge on Class B shares purchased by reinvesting dividends or on withdrawals in any year of up to 12% of the value of your Class B shares under the Automatic Cash Withdrawal Plan. To minimize your deferred sales charge, we will assume that you are selling: - - First, Class B shares representing reinvested dividends, and - - Second, Class B shares that you have owned the longest. - -------------------------------------------------------------------------------- UBS Global Asset Management 7 UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ CLASS C SHARES Class C shares have a front-end sales charge that is included in the offering price of the Class C shares, as described in the following table.* This sales charge is paid at the time of the purchase and is not invested in the Fund.
SALES CHARGE AS A PERCENTAGE OF REALLOWANCE TO SELECTED DEALERS OFFERING PRICE NET AMOUNT INVESTED AS PERCENTAGE OF OFFERING PRICE -------------- ------------------- ------------------------------- 1.00% 1.01% 1.00%
* The 1.00% front-end sales charge on Class C shares will be eliminated effective September 30, 2003. Class C shares pay an annual 12b-1 distribution fee of 0.75% of average net assets, as well as an annual 12b-1 service fee of 0.25% of average net assets. Class C shares do not convert to another class of shares. This means that you will pay the 12b-1 fees for as long as you own your shares. Class C shares also have a contingent deferred sales charge of 1.00%, applicable if you sell your shares within one year of the date you purchased them. We calculate the deferred sales charge on sales of Class C shares by multiplying 1.00% by the lesser of the net asset value of the Class C shares at the time of purchase or the net asset value at the time of sale. SALES CHARGE WAIVERS FOR CLASS A, CLASS B AND CLASS C SHARES CLASS A FRONT-END SALES CHARGE WAIVERS. Front-end sales charges will be waived if you buy Class A shares with proceeds from the following sources: 1. Redemptions from any registered mutual fund for which UBS Global AM or any of its affiliates serves as principal underwriter if you: - Originally paid a front-end sales charge on the shares; and - Reinvest the money within 60 days of the redemption date. The Fund's front-end sales charge will also not apply to Class A purchases by or through: 2. Employees of UBS AG and its subsidiaries and members of the employees' immediate families; and members of the Board of Directors/Trustees of any investment company for which UBS Global AM or any of its affiliates serves as principal underwriter. 3. Trust companies and bank trust departments investing on behalf of their clients if clients pay the bank or trust company an asset-based fee for trust or asset management services. 4. Retirement plans and deferred compensation plans that have assets of at least $1 million or at least 25 eligible employees. 5. Broker-dealers and other financial institutions (including registered investment advisers and financial planners) that have entered into a selling agreement with UBS Global AM (or otherwise have an arrangement with a broker-dealer or other financial institution with respect to sales of fund shares), on behalf of clients participating in a fund supermarket, wrap program, or other program in which clients pay a fee for advisory services, executing transactions in Fund shares, or for otherwise participating in the program. 6. Employees of broker-dealers and other financial institutions (including registered investment advisers and financial planners) that have entered into a selling agreement with UBS Global AM (or otherwise having an arrangement with a broker-dealer or other financial - -------------------------------------------------------------------------------- 8 UBS Global Asset Management UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ institution with respect to sales of fund shares), and their immediate family members, as allowed by the internal policies of their employer. 7. Insurance company separate accounts. 8. Shareholders of the Class N shares of any UBS Fund who held such shares at the time they were redesignated as Class A shares. 9. Reinvestment of capital gains distributions and dividends. 10. College savings plans organized under Section 529 of the Internal Revenue Code (the "IRC") whose sponsors or administrators have entered into an agreement with UBS Global AM or any of its affiliates to perform advisory or administrative services. 11. A UBS Financial Services Financial Advisor who was formerly employed as an investment executive with a competing brokerage firm, and - you were the Financial Advisor's client at the competing brokerage firm; - within 90 days of buying shares in the Fund, you sell shares of one or more mutual funds that were principally underwritten by the competing brokerage firm or its affiliates, and you either paid a sales charge to buy those shares, pay a contingent deferred sales charge when selling them or held those shares until the contingent deferred sales charge was waived; and - you purchase an amount that does not exceed the total amount of money you received from the sale of the other mutual fund. CLASS C FRONT-END SALES CHARGE* WAIVERS. Front-end sales charges will be waived if you buy Class C shares through a UBS Financial Services Financial Advisor who was formerly employed as an investment executive with a competing brokerage firm, and - - you were the Financial Advisor's client at the competing brokerage firm; - - within 90 days of buying shares in the Fund, you sell shares of one or more mutual funds that were principally underwritten by the competing brokerage firm or its affiliates, and you either paid a sales charge to buy those shares, pay a contingent deferred sales charge when selling them or held those shares until the contingent deferred sales charge was waived; and - - you purchase an amount that does not exceed the total amount of money you received from the sale of the other mutual fund. CLASS A, CLASS B AND CLASS C SHARES CONTINGENT DEFERRED SALES CHARGE WAIVERS. The contingent deferred sales charge will be waived for: - - Redemptions of Class A shares by former holders of Class N shares; - - Exchanges between funds for which UBS Global AM or one of its affiliates serves as principal underwriter, if purchasing the same class of shares; * The 1.00% front-end sales charge on Class C shares will be eliminated effective September 30, 2003. - -------------------------------------------------------------------------------- UBS Global Asset Management 9 UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ - - Redemptions following the death or disability of the shareholder or beneficial owner; - - Tax-free returns of excess contributions from employee benefit plans; - - Distributions from employee benefit plans, including those due to plan termination or plan transfer; - - Redemptions made in connection with the Automatic Cash Withdrawal Plan, provided that such redemptions: - are limited annually to no more than 12% of the original account value; - are made in equal monthly amounts, not to exceed 1% per month; and - the minimum account value at the time the Automatic Cash Withdrawal Plan was initiated was no less than $5,000; and - - Redemptions of shares purchased through retirement plans. SALES CHARGE REDUCTIONS FOR CLASS A SHARES RIGHT OF ACCUMULATION A purchaser of Class A shares may qualify for a reduction of the front-end sales charge on purchases of Class A shares by combining a current purchase with certain other Class A, Class B and/or Class C shares of Family Funds (please note that any Family Fund that is a money market fund will not count for purposes of the right of accumulation discount or for purposes of satisfying the terms of a Letter of Intent) already owned. To determine if you qualify for a reduction of the front-end sales charge, the amount of your current purchase is added to the current net asset value of your other Class A, Class B and/or Class C shares as well as those Class A, Class B and/or Class C shares of your spouse and children under the age of 21. If you are the sole owner of a company, you may also add any company accounts, including retirement plan accounts invested in Class A, Class B and/or Class C shares of the Family Funds. Companies with one or more retirement plans may add together the total plan assets invested in Class A, Class B and/or Class C shares of the Family Funds to determine the front-end sales charge that applies. To qualify for the discount on a purchase through a financial institution, when each purchase is made the investor or institution must provide UBS Global AM with sufficient information to verify that the purchase qualifies for the privilege or discount. The right of accumulation may be amended or terminated by UBS Global AM at any time as to purchases occurring thereafter. LETTER OF INTENT Investors may also obtain reduced sales charges for Class A shares for investments of a particular amount by means of a written Letter of Intent, which expresses the investor's intention to invest that amount within a period of 13 months in shares of one or more Family Funds. Each purchase of Class A shares under a Letter of Intent will be made at the public offering price applicable at the time of such purchase to a single transaction of the total dollar amount indicated in the Letter of Intent. A Letter of Intent may include purchases of Class A, Class B and/or Class C shares made not more than three months prior to the date that investor signs a Letter of Intent and during the 13-month period in which the Letter of Intent is in effect; however, the 13-month period during which the Letter of Intent - -------------------------------------------------------------------------------- 10 UBS Global Asset Management UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ is in effect will begin on the date on which the Letter of Intent is signed. Investors do not receive credit for shares purchased by the reinvestment of distributions. Investors qualifying for a right of accumulation discount (described above) may purchase shares under a single Letter of Intent. The Letter of Intent is not a binding obligation upon the investor to purchase the full amount indicated. The minimum initial investment under a Letter of Intent is 5% of such amount, and must be invested immediately. Class A shares purchased with the first 5% of such amount may be held in escrow to secure payment of the higher sales charge applicable to the shares actually purchased if the full amount indicated is not purchased. When the full amount indicated has been purchased, the escrow will be released. If an investor desires to redeem escrowed shares before the full amount has been purchased, the shares will be released only if the investor pays the sales charge that, without regard to the Letter of Intent, would apply to the total investment made to date. Letter of Intent forms may be obtained from UBS Global Asset Management or from investment professionals. Investors should read the Letter of Intent carefully. NOTE ON SALES CHARGE WAIVERS FOR CLASS A, CLASS B AND CLASS C SHARES If you think you qualify for any of the sales charge waivers described above, you will need to provide documentation to UBS Global AM or the Fund. For more information, you should contact your investment professional or call 1-800-647-1568. If you want information on the Fund's Automatic Cash Withdrawal Plan, see the SAI or contact your investment professional. CLASS Y SHARES Class Y shares have no sales charge. Only specific types of investors can purchase Class Y shares. The following are eligible to purchase Class Y shares: - - Shareholders of the Class I shares of any UBS Fund who held such shares as of the date the shares were redesignated Class Y shares; - - Retirement plans with 5,000 or more eligible employees or $100 million or more in plan assets; - - Retirement plan platforms/programs that include Fund shares if the platform/program covers plan assets of at least $100 million; - - Trust companies and bank trust departments purchasing shares on behalf of their clients in a fiduciary capacity; - - Banks, registered investment advisors and other financial institutions purchasing fund shares for their clients as part of a discretionary asset allocation model portfolio; - - Shareholders who owned Class Y shares of the Fund through the PACE Multi-Advisor Program as of November 15, 2001, will be eligible to continue to purchase Class Y shares of the Fund through the program; - - College savings plans organized under Section 529 of the IRC, if shareholder servicing fees are paid exclusively outside of the participating funds; and - -------------------------------------------------------------------------------- UBS Global Asset Management 11 UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ - - Other investors as approved by the Fund's Board of Trustees. - - Shareholders who invest a minimum initial amount of $10 million in the Fund. An institutional investor may aggregate its holdings with holdings of certain related institutional investors to meet the foregoing minimums; and - - Foundations, Endowments and Religious and other charitable organizations described in Section 501(c)(3) of the IRC. Class Y shares do not pay ongoing 12b-1 distribution or service fees. The ongoing expenses for Class Y shares are the lowest of all the classes. BUYING SHARES You can buy Fund shares through your investment professional at a broker-dealer or other financial institution with which UBS Global AM has a dealer agreement. If you wish to invest in other Family Funds, you can do so by: - - Contacting your investment professional (if you have an account at a financial institution that has entered into a dealer agreement with UBS Global AM); - - Buying shares through the transfer agent as described below; or - - Opening an account by exchanging shares from another Family Fund. The Fund and UBS Global AM reserve the right to reject a purchase order or suspend the offering of shares. THROUGH FINANCIAL INSTITUTIONS/PROFESSIONALS As mentioned above, the Fund has entered into one or more sales agreements with brokers, dealers or other financial intermediaries ("Service Providers"), as well as with financial institutions (banks and bank trust departments) (each an "Authorized Dealer"). The Authorized Dealer, or intermediaries designated by the Authorized Dealer (a "Sub-designee"), may in some cases be authorized to accept purchase and redemption orders that are in "good form" on behalf of the Fund. The Fund will be deemed to have received a purchase or redemption order when the Authorized Dealer or Sub-designee receives the order in good form. Such orders will be priced at the Fund's net asset value next computed after such order is received in good form by the Authorized Dealer or Sub-designee. These Authorized Dealers may charge the investor a transaction fee or other fee for their services at the time of purchase. These fees would not be otherwise charged if you purchased shares directly from the Fund. It is the responsibility of such Authorized Dealers or Sub-designees to promptly forward purchase orders with payments to the Fund. The Advisor or its affiliates, may, from their own resources, compensate Service Providers for services performed with respect to the Fund's Class Y shares. These services may include marketing, shareholder servicing, recordkeeping and/or other services. When these service arrangements are in effect, they are generally made available to all qualified Service Providers. MINIMUM INVESTMENTS Class A, Class B and Class C shares: To open an account................................ $ 1,000 To add to an account.............................. $ 100
- -------------------------------------------------------------------------------- 12 UBS Global Asset Management UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ The Fund may waive or reduce these amounts for: - - Employees of UBS Global AM or its affiliates; or - - Participants in certain pension plans, retirement accounts, unaffiliated investment programs or the Fund's automatic investment plan. MARKET TIMERS. The interests of the Fund's long-term shareholders and the Fund's ability to manage its investments may be adversely affected when its shares are repeatedly bought and sold in response to short-term market fluctuations--also known as "market timing." When large dollar amounts are involved, the Fund may have difficulty implementing long-term investment strategies, because it cannot predict how much cash it will have to invest. Market timing also may force the Fund to sell portfolio securities at disadvantageous times to raise the cash needed to buy a market timer's Fund shares. These factors may hurt the Fund's performance and its shareholders. When UBS Global AM believes frequent trading would have a disruptive effect on the Fund's ability to manage its investments, UBS Global AM and the Fund may reject purchase orders and exchanges into the Fund by any person, group or account that UBS Global AM believes to be a market timer. SELLING SHARES You can sell your Fund shares at any time. If you own more than one class of shares, you should specify which class you want to sell. If you do not, the Fund will assume that you want to sell shares in the following order: Class A, then Class C, then Class B and last, Class Y. If you want to sell shares that you purchased recently, the Fund may delay payment until it verifies that it has received good payment. If you hold your shares through a financial institution, you can sell shares by contacting your investment professional, or an Authorized Dealer or Sub- designee, for more information. Important note: Each institution or professional may have its own procedures and requirements for selling shares and may charge fees. If you purchased shares through the Fund's transfer agent, you may sell them as explained below. If you sell Class A shares and then repurchase Class A shares of the Fund within 365 days of the sale, you can reinstate your account without paying a sales charge. The Fund reserves the right to pay redemptions "in kind" (i.e., payment in securities rather than cash) if the investment you are redeeming is large enough to affect the Fund's operations (for example, if it represents more than $250,000 or 1% of the Fund's assets). In these cases, you might incur brokerage costs converting the securities to cash. It costs the Fund money to maintain shareholder accounts. Therefore, the Fund reserves the right to repurchase all shares in any account that has a net asset value of less than $500. If the Fund elects to do this with your account, it will notify you that you can increase the amount invested to $500 or more within 60 days. The Fund will not repurchase shares in accounts that fall below $500 solely because of a decrease in the Fund's net asset value. To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account. If you do not provide the information requested, the Fund may not be able to - -------------------------------------------------------------------------------- UBS Global Asset Management 13 UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ maintain your account. If the Fund is unable to verify your identity or that of another person(s) authorized to act on your behalf, the Fund and UBS Global AM reserve the right to close your account and/or take such other action they deem reasonable or required by law. Fund shares will be redeemed and valued in accordance with the net asset value next calculated after the determination has been made to close the account. EXCHANGING SHARES You may exchange Class A, Class B or Class C shares of the Fund for shares of the same class of most other Family Funds. You may not exchange Class Y shares. You will not pay either a front-end sales charge or a deferred sales charge when you exchange shares. Also, you may have to pay a deferred sales charge if you later sell the shares you acquired in the exchange. The Fund will use the date of your original share purchase to determine whether you must pay a deferred sales charge when you sell the shares of the Fund acquired in the exchange. Other Family Funds may have different minimum investment amounts. You may not be able to exchange your shares if the value of shares you exchange is not as large as the minimum investment amount in that other Fund. You may exchange shares of one Fund for shares of another Fund only after the first purchase has settled and the first Fund has received your payment. If you hold your Fund shares through a financial institution, you may exchange your shares by placing an order with that institution. If you hold Fund shares through the Fund's transfer agent, you may exchange your shares as explained below. The Fund may modify or terminate the exchange privilege at any time. TRANSFER AGENT If you wish to invest in any of the Family Funds through the Fund's transfer agent, PFPC Inc., you can obtain an application by calling 1-800-647-1568. You must complete and sign the application and mail it, along with a check to the transfer agent. You may also sell or exchange your shares by writing to the Fund's transfer agent. Your letter must include: - - Your name and address; - - Your account number; - - The name of the Fund whose shares you are selling, and if exchanging shares, the name of the Family Fund whose shares you want to buy; - - The dollar amount or number of shares you want to sell and/or exchange; and - - A guarantee of each registered owner's signature. A signature guarantee may be obtained from a financial institution, broker, dealer or clearing agency that is a participant in one of the medallion programs recognized by the Securities Transfer Agents Association. These are: Securities Transfer Agents Medallion Program (STAMP), Stock Exchanges Medallion Program (SEMP) and the New York Stock Exchange Medallion Signature Program (MSP). The Fund will not accept signature guarantees that are not part of these programs. Applications to purchase shares (along with a check), and letters requesting redemptions of shares - -------------------------------------------------------------------------------- 14 UBS Global Asset Management UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ or exchanges of shares through the transfer agent should be mailed to: PFPC Inc. Attention: UBS Mutual Funds 760 Moore Road King of Prussia, PA 19406 You do not have to complete an application when you make additional investments in the same Fund. PRICING AND VALUATION The price at which you may buy, sell or exchange Fund shares is based on net asset value per share. The Fund calculates net asset value on days that the New York Stock Exchange ("NYSE") is open. The Fund calculates net asset value separately for each class as of the close of regular trading on the NYSE (generally, 4:00 p.m., Eastern time). The NYSE normally is not open, and the Fund does not price its shares, on most national holidays and on Good Friday. Your price for buying, selling or exchanging shares of the Fund will be based on the net asset value (adjusted for any applicable sales charges) that is next calculated after the Fund receives your order in good form. If you place your order through a financial institution, your investment professional is responsible for making sure that your order is promptly sent to the Fund. The Fund calculates its net asset value based on the current market value of its portfolio securities. The Fund normally obtains market values for its securities from independent pricing services that use reported last sales prices, current market quotations or valuations from computerized "matrix" systems that derive values based on comparable securities. If a market value is not available from an independent pricing source for a particular security, that security is valued at a fair value determined by or under the direction of the Fund's Board of Trustees. The Fund normally uses the amortized cost method to value bonds that will mature in 60 days or less. Judgment plays a greater role in valuing thinly traded securities, including many lower-rated bonds, because there is less reliable, objective data available. The Fund calculates the U.S. dollar value of investments that are denominated in foreign currencies daily, based on current exchange rates. The Fund may own securities including some securities that trade primarily in foreign markets that trade on weekends or other days on which the Fund does not calculate net asset value. As a result, the Fund's net asset value may change on days when you will not be able to buy and sell your Fund shares. If the Fund concludes that a material change in the value of a foreign security has occurred after the close of trading in its principal foreign market but before the close of regular trading on the NYSE, the Fund may use fair value methods to reflect those changes. This policy is intended to assure that the Fund's net asset value fairly reflects security values as of the time of pricing. - -------------------------------------------------------------------------------- UBS Global Asset Management 15 UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ Management INVESTMENT ADVISOR UBS Global Asset Management (Americas) Inc. (the "Advisor"), a Delaware corporation located at One North Wacker Drive Chicago, IL 60606, is an investment advisor registered with the U.S. Securities and Exchange Commission. As of June 30, 2003, the Advisor had approximately $36.6 billion in assets under management. The Advisor is an indirect, wholly owned subsidiary of UBS AG ("UBS") and a member of the UBS Global Asset Management Division, which had approximately $415 billion in assets under management as of June 30, 2003. UBS is an internationally diversified organization headquartered in Zurich, Switzerland, with operations in many areas of the financial services industry. PORTFOLIO MANAGEMENT Investment decisions for the Fund are made by an investment management team at the Advisor. No member of the investment management team is primarily responsible for making recommendations for portfolio purchases. ADVISORY FEES The investment advisory fee (expressed as a percentage of average net assets) payable to the Advisor, before fee waivers and/or expense reimbursements, if applicable, by the Fund is 0.70%. The Advisor has contractually agreed to waive its fees and/or reimburse certain expenses so that total operating expenses (excluding 12b-1 fees) of the Fund do not exceed 0.85%. The contractual fee waiver and/or expense reimbursement agreement will remain in place for the Fund's fiscal year ending June 30, 2004. Thereafter, the expense limit for the Fund will be reviewed each year, at which time the continuation of the expense limit will be discussed by the Advisor and the Board of Trustees. The contractual fee waiver agreement also provides that the Advisor is entitled to reimbursement of fees it waived and/or expenses it reimbursed for a period of three years following such fee waivers and expense reimbursements, provided that the reimbursement by the Fund of the Advisor will not cause the total operating expense ratio to exceed the contractual limit as then may be in effect for the Fund. ADMINISTRATOR UBS Global Asset Management (US) Inc. ("UBS Global AM"), located at 51 West 52nd Street, New York, NY 10019-6114, is the administrator of the Fund. UBS Global AM is an indirect wholly owned asset management subsidiary of UBS. The Fund pays UBS Global AM at the annual contract rate of 0.075% of its average daily net assets for administrative services. - -------------------------------------------------------------------------------- 16 UBS Global Asset Management UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ Dividends and Taxes DIVIDENDS AND DISTRIBUTIONS Income dividends are normally declared, and paid, by the Fund annually. Capital gains, if any, are distributed in December. The amount of any distributions will vary, and there is no guarantee the Fund will pay either income dividends or capital gain distributions. Classes with higher expenses are expected to have lower income dividends. For example, Class B and Class C shares are expected to have the lowest dividends of the Fund's shares, while Class Y shares are expected to have the highest. You will receive income dividends and capital gain distributions in additional shares of the same class of the Fund unless you notify your investment professional or the Fund in writing that you elect to receive them in cash. Distribution options may be changed at any time by requesting a change in writing. Dividends and distributions are reinvested on the reinvestment date at the net asset value determined at the close of business on that date. If you invest in the Fund shortly before it makes a distribution, you may receive some of your investment back in the form of a taxable distribution. TAXES In general, if you are a taxable investor, Fund distributions are taxable to you as either ordinary income or capital gains. This is true whether you reinvest your distributions in additional Fund shares or receive them in cash. For federal income tax purposes, Fund distributions of short-term capital gains are taxable to you as ordinary income. Fund distributions of long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your shares. A portion of income dividends designated by the Fund may be qualified dividend income eligible for taxation by individual shareholders at long-term capital gain rates. Every January, you will receive a statement that shows the tax status of distributions you received for the previous year. By law, the Fund must withhold a portion of your taxable distributions and redemption proceeds unless you: - - provide your correct social security or taxpayer identification number, - - certify that this number is correct, - - certify that you are not subject to backup withholding, and - - certify that you are a U.S. person (including a U.S. resident alien). The Fund also must withhold if the IRS instructs it to do so. When you sell your shares in the Fund, you may realize a capital gain or loss. For tax purposes, an exchange of your Fund shares for shares of a different Family Fund is the same as a sale. Fund distributions and gains from the sale of your Fund shares generally are subject to state and local taxes. Any foreign taxes the Fund pays on its investments may be passed through to you as a foreign tax credit. Non-U.S. investors may be subject to U.S. withholding or estate tax, and are subject to special U.S. tax certification requirements. You should consult your tax advisor about the federal, state, local or foreign tax consequences of your investment in the Fund. - -------------------------------------------------------------------------------- UBS Global Asset Management 17 UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ Supplemental Investment Advisor Performance Information Because the Advisor has managed other advisory accounts for many years in a substantially similar manner to the way in which the Advisor manages the Fund, the following supplemental performance information is being provided to assist prospective investors in making an informed investment decision. The table below provides performance information for composites of other advisory accounts ("Account Composite Performance") managed by the Advisor in a substantially similar manner to the way in which the Advisor manages the Fund's assets. The Account Composite Performance was obtained from the records maintained by the Advisor, and is adjusted to reflect the Fund's Class A current net expenses, which include the effect of fee waivers and/or expense reimbursements, as applicable. The following presentation also shows the Account Composite Performance adjusted to reflect the Fund's Class A current net expenses, which include the effect of fee waivers and/or expense reimbursements, as applicable, and also reflects the Class A front-end sales charge of 5.50%. The performance of one or more appropriate unmanaged benchmark indexes, not adjusted for any fees or expenses, is provided as well for each composite. Please note that the Account Composite Performance is not the Fund's own historical performance. The Account Composite Performance should not be considered a substitute for the Fund's performance, and the Account Composite Performance is not necessarily an indication of the Fund's future performance. The accounts included in the Account Composite Performance were not necessarily subject to certain investment limitations, diversification requirements and other restrictions imposed on mutual funds by the Investment Company Act of 1940 and the IRC, which, if applicable, may have adversely affected the performance of these accounts. - -------------------------------------------------------------------------------- 18 UBS Global Asset Management UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ Supplemental Performance Information for the Advisor of UBS U.S. Value Equity Fund COMPOSITE PERFORMANCE: U.S. VALUE EQUITY COMPOSITE JULY 1, 1998 THROUGH JULY 31, 2002 EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
NET NET GROSS BENCHMARK YEAR RETURN (%)(1) RETURN (%)(2) RETURN (%) RETURN (%)(3) 1998+ -2.76% 2.90% 3.46% 3.10% 1999 -6.76% -1.33% -0.24% 7.33% 2000 10.04% 16.44% 17.71% 7.01% 2001 -3.21% 2.43% 3.55% -5.59% 2002 -18.05% -13.28% -12.72% -13.63%
COMPOSITE PERFORMANCE: U.S. VALUE EQUITY COMPOSITE FOR PERIODS ENDED JULY 31, 2002
YEAR NET RETURN (%)(1) NET RETURN (%)(2) GROSS RETURN (%) BENCHMARK RETURN (%)(3) - ---- ----------------- ----------------- ---------------- ----------------------- 1 year........................ -19.16% -14.45% -13.50% -17.24% Since inception............... -0.19% 1.20% 2.32% -0.85%
(1) Adjusted to reflect Class A Shares' current net expenses and the maximum front-end sales charge. (2) Adjusted to reflect Class A Shares' current net expenses but not adjusted to reflect the maximum front-end sales charge. (3) The benchmark is the Russell 1000 Value Index. The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. + Performance is presented for July 1, 1998 through December 31, 1998. - -------------------------------------------------------------------------------- UBS Global Asset Management 19 UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ Supplemental Performance Information for the Advisor of UBS U.S. Value Equity Fund COMPOSITE PEFORMANCE: U.S. VALUE EQUITY COMPOSITE JULY 1, 1998 THROUGH DECEMBER 31, 2001
YEAR NET RETURN (%)(1) NET RETURN (%)(2) GROSS RETURN (%) BENCHMARK RETURN (%)(3) - ---- ----------------- ----------------- ---------------- ----------------------- 1998+......................... -2.76% 2.90% 3.46% 3.10% 1999.......................... -6.76% -1.33% -0.24% 7.33% 2000.......................... 10.04% 16.44% 17.71% 7.01% 2001.......................... -3.21% 2.43% 3.55% -5.59%
(1) Adjusted to reflect Class A Shares' current net expenses and the maximum front-end sales charge. (2) Adjusted to reflect Class A Shares' current net expenses but not adjusted to reflect the maximum front-end sales charge. (3) The benchmark is the Russell 1000 Value Index. The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. + Performance is presented for July 1, 1998 through December 31, 1998. - -------------------------------------------------------------------------------- 20 UBS Global Asset Management UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ Financial Highlights The financial highlights table is intended to help you understand the Fund's financial performance since the Fund's commencement of operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. (assuming reinvestment of all dividends and distributions). The selected financial information in the following table, for the year ended June 30, 2002, has been audited by the Fund's independent auditors, Ernst & Young LLP, whose unqualified report thereon (the "Report") appears in the Fund's Annual Report to Shareholders dated June 30, 2002 (the "Annual Report"). Additional performance and financial data and related notes are contained in the Annual Report, which is available without charge upon request. The Fund's financial statements for the fiscal year ended June 30, 2002 and the Report are incorporated by reference into the SAI. - -------------------------------------------------------------------------------- UBS Global Asset Management 21 UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ UBS U.S. Value Equity Fund -- Financial Highlights
CLASS A -------------- FOR THE PERIOD ENDED JUNE 30, 2002* -------------- Net asset value, beginning of period.............. $ 9.96 ----------- Income (loss) from investment operations: Net investment income........................... 0.05** Net realized and unrealized loss................ (0.64) ----------- Total loss from investment operations......... (0.59) ----------- Net asset value, end of period.................... $ 9.37 =========== Total return...................................... (5.92)%++ =========== Ratios/Supplemental data: Net assets, end of period (in 000s)............... $ 751 Ratio of expenses to average net assets: Before expense reimbursement and earnings credits....................................... 3.82%*** After expense reimbursement and earnings credits....................................... 1.10%*** Ratio of net investment income (loss) to average net assets: Before expense reimbursement and earnings credits....................................... (1.85)%*** After expense reimbursement and earnings credits....................................... 0.87%*** Portfolio turnover rate........................... 39%
* For the period December 9, 2001 (commencement of issuance and investment operations) for Class A through June 30, 2002. ** The net investment income per share data was determined by using average shares outstanding throughout the period. *** Annualized. ++ The returns do not include sales charges and are non-annualized. - -------------------------------------------------------------------------------- 22 UBS Global Asset Management UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ UBS U.S. Value Equity Fund -- Financial Highlights
CLASS B -------------- FOR THE PERIOD ENDED JUNE 30, 2002* -------------- Net asset value, beginning of period.............. $ 9.62 ----------- Income (loss) from investment operations: Net investment income........................... 0.01** Net realized and unrealized loss................ (0.31) ----------- Total loss from investment operations......... (0.30) ----------- Net asset value, end of period.................... $ 9.32 =========== Total return...................................... (3.12)%++ =========== Ratios/Supplemental data: Net assets, end of period (in 000s)............... $ 301 Ratio of expenses to average net assets: Before expense reimbursement and earnings credits....................................... 4.66%*** After expense reimbursement and earnings credits....................................... 1.85%*** Ratio of net investment income (loss) to average net assets: Before expense reimbursement and earnings credits....................................... (2.72)%*** After expense reimbursement and earnings credits....................................... 0.09%*** Portfolio turnover rate........................... 39%
* For the period November 8, 2001 (commencement of issuance and investment operations) for Class B through June 30, 2002. ** The net investment income per share data was determined by using average shares outstanding throughout the period. *** Annualized. ++ The returns do not include sales charges and are non-annualized. - -------------------------------------------------------------------------------- UBS Global Asset Management 23 UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ UBS U.S. Value Equity Fund -- Financial Highlights
CLASS C -------------- FOR THE PERIOD ENDED JUNE 30, 2002* -------------- Net asset value, beginning of period.............. $ 9.73 ----------- Income (loss) from investment operations: Net investment income........................... --** Net realized and unrealized loss................ (0.40) ----------- Total loss from investment operations......... (0.40) ----------- Net asset value, end of period.................... $ 9.33 =========== Total return...................................... (4.11)%++ =========== Ratios/Supplemental data: Net assets, end of period (in 000s)............... $ 234 Ratio of expenses to average net assets: Before expense reimbursement and earnings credits....................................... 4.58%*** After expense reimbursement and earnings credits....................................... 1.85%*** Ratio of net investment income (loss) to average net assets: Before expense reimbursement and earnings credits....................................... (2.68)%*** After expense reimbursement and earnings credits....................................... 0.05%*** Portfolio turnover rate........................... 39%
* For the period December 12, 2001 (commencement of issuance and investment operations) for Class C through June 30, 2002. ** The net investment income per share data was determined by using average shares outstanding throughout the period. *** Annualized. ++ The return does not include sales charges and is non-annualized. - -------------------------------------------------------------------------------- 24 UBS Global Asset Management UBS U.S. Value Equity Fund - ------------------------------------------------------------------------ UBS U.S. Value Equity Fund -- Financial Highlights
CLASS Y ----------------- FOR THE PERIOD ENDED JUNE 30, 2002* ----------------- Net asset value, beginning of period.............. $ 10.00 ------------ Income (loss) from investment operations: Net investment income........................... 0.11** Net realized and unrealized loss................ (0.73) ------------ Total loss from investment operations......... (0.62) ------------ Net asset value, end of period.................... $ 9.38 ============ Total return+..................................... (6.20)% ============ Ratios/Supplemental data: Net assets, end of period (in 000s)............... $ 2,819 Ratio of expenses to average net assets: Before expense reimbursement and earnings credits....................................... 3.15%*** After expense reimbursement and earnings credits....................................... 0.85%*** Ratio of net investment income (loss) to average net assets: Before expense reimbursement and earnings credits....................................... (1.17)%*** After expense reimbursement and earnings credits....................................... 1.13%*** Portfolio turnover rate........................... 39%
* For the period June 29, 2001 (commencement of issuance and investment operations) for Class Y through June 30, 2002. ** The net investment income per share data was determined by using average shares outstanding throughout the period. *** Annualized. + Class Y does not have sales charges. - -------------------------------------------------------------------------------- UBS Global Asset Management 25 If you want more information about the Fund, the following documents are available free upon request: ANNUAL/SEMI-ANNUAL REPORTS: Additional information about the Fund's investments is available in the Fund's annual and semi-annual reports to shareholders. In the Fund's annual report, you will find a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during the last fiscal year. STATEMENT OF ADDITIONAL INFORMATION (SAI): The SAI provides more detailed information about the Fund and is incorporated by reference into this prospectus. You may discuss your questions about the Fund by contacting your investment professional. You may obtain free copies of the Fund's annual and semi-annual reports and the SAI by contacting the Fund directly at 1-800-647-1568. You may review and copy information about the Fund, including shareholder reports and the SAI, at the Public Reference Room of the Securities and Exchange Commission in Washington, D.C. You may obtain information about the operations of the SEC's Public Reference Room by calling the SEC at 1-202-942-8090. You can get copies of reports and other information about the Fund: - - For a fee, by electronic request at publicinfo@sec.gov or by writing the SEC's Public Reference Section, Washington, D.C. 20549-0102; or - - Free from the EDGAR Database on the SEC's Internet website at: http://www.sec.gov [UBS GLOBAL ASSET MANAGEMENT LOGO] UBS U.S. Value Equity Fund Prospectus The UBS Funds Investment Company Act File No. 811-6637 - -C- 2003 UBS Global Asset Management (US) Inc. All rights reserved. September 30, 2002 (as revised September 15, 2003) -----END PRIVACY-ENHANCED MESSAGE-----