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0001104659-07-067583.txt : 20070907
0001104659-07-067583.hdr.sgml : 20070907
20070907131610
ACCESSION NUMBER: 0001104659-07-067583
CONFORMED SUBMISSION TYPE: N-CSR
PUBLIC DOCUMENT COUNT: 33
CONFORMED PERIOD OF REPORT: 20070630
FILED AS OF DATE: 20070907
DATE AS OF CHANGE: 20070907
EFFECTIVENESS DATE: 20070907
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: N-CSR
SEC ACT: 1940 Act
SEC FILE NUMBER: 811-06637
FILM NUMBER: 071105061
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
0000886244
S000002977
UBS High Yield Fund
C000008174
CLASS A
BNHYX
C000008175
CLASS B
BNHBX
C000008176
CLASS C
BNHCX
C000008177
CLASS Y
BIHYX
0000886244
S000002978
UBS U.S. Large Cap Equity Fund
C000008178
Class A
BNEQX
C000008179
CLASS B
BNQBX
C000008180
CLASS C
BNQCX
C000008181
CLASS Y
BPEQX
0000886244
S000002979
UBS GLOBAL ALLOCATION FUND
C000008182
CLASS A
BNGLX
C000008183
CLASS B
BNPBX
C000008184
CLASS C
BNPCX
C000008185
CLASS Y
BPGLX
0000886244
S000002980
UBS INTERNATIONAL EQUITY FUND
C000008186
CLASS A
BNIEX
C000008187
CLASS B
BNIBX
C000008188
CLASS C
BNICX
C000008189
CLASS Y
BNUEX
0000886244
S000002981
UBS U.S. BOND FUND
C000008190
CLASS A
BNBDX
C000008191
CLASS B
BNOBX
C000008192
CLASS C
BNOCX
C000008193
CLASS Y
BPBDX
0000886244
S000002982
UBS U.S. LARGE CAP VALUE EQUITY FUND
C000008194
CLASS A
BNVAX
C000008195
CLASS B
BNVBX
C000008196
CLASS C
BNVCX
C000008197
CLASS Y
BUSVX
0000886244
S000002983
UBS U.S. LARGE CAP GROWTH FUND
C000008198
CLASS A
BNLGX
C000008199
CLASS B
BNWBX
C000008200
CLASS C
BNWCX
C000008201
CLASS Y
BLGIX
0000886244
S000002984
UBS GLOBAL BOND FUND
C000008202
CLASS A
BNGBX
C000008203
CLASS B
BNDBX
C000008204
CLASS C
BNDCX
C000008205
CLASS Y
BPGBX
0000886244
S000002985
UBS U.S. SMALL CAP GROWTH FUND
C000008206
CLASS A
BNSCX
C000008207
CLASS B
BNMBX
C000008208
CLASS C
BNMCX
C000008209
CLASS Y
BISCX
0000886244
S000003132
UBS GLOBAL EQUITY FUND
C000008491
CLASS A
BNGEX
C000008492
CLASS B
BNEBX
C000008493
CLASS C
BNECX
C000008494
CLASS Y
BPGEX
0000886244
S000003135
UBS DYNAMIC ALPHA FUND
C000008503
CLASS A
BNAAX
C000008504
CLASS B
BNABX
C000008505
CLASS C
BNACX
C000008506
CLASS Y
BNAYX
0000886244
S000003136
UBS ABSOLUTE RETURN BOND FUND
C000008507
CLASS A
BNRAX
C000008508
CLASS C
BNRCX
C000008509
CLASS Y
BNRYX
0000886244
S000011180
UBS U.S. Mid Cap Growth Equity Fund
C000030845
Class A
BMDAX
C000030847
Class C
BMDDX
C000030848
Class Y
BMDYX
0000886244
S000013001
UBS U.S. Equity Alpha Fund
C000035135
Class A
BEAAX
C000035136
Class C
BEACX
C000035137
Class Y
BEAYX
N-CSR
1
a07-19509_1ncsr.htm
N-CSR
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment
Company Act file number
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811-06637
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The UBS Funds
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(Exact name of registrant as specified in charter)
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|
51 West 52nd Street, New York, New York
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10019-6114
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(Address of principal executive offices)
|
|
(Zip code)
|
|
Mark F. Kemper,
Esq.
UBS Global Asset Management
51 West 52nd Street
New York, NY 10019-6114
|
(Name and address of agent for service)
|
|
Copy to:
|
Bruce Leto, Esq.
Stradley Ronon Stevens & Young, LLP
2600 One Commerce Square
Philadelphia, PA 19103-7098
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|
Registrants
telephone number, including area code:
|
212-882 5000
|
|
|
Date of fiscal year end:
|
June 30
|
|
|
Date of reporting period:
|
June 30, 2007
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|
|
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|
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|
|
Item 1.
Reports to Stockholders.
The UBS Funds
Annual Report
June 30, 2007
Table of contents |
|
|
Portfolio Managers' commentary and portfolios of investments |
|
|
UBS Dynamic Alpha Fund |
|
|
1 |
|
|
|
UBS Global Allocation Fund |
|
|
15 |
|
|
|
UBS Global Equity Fund |
|
|
35 |
|
|
|
UBS International Equity Fund |
|
|
44 |
|
|
|
UBS U.S. Equity Alpha Fund |
|
|
53 |
|
|
|
UBS U.S. Large Cap Equity Fund |
|
|
63 |
|
|
|
UBS U.S. Large Cap Growth Fund |
|
|
71 |
|
|
|
UBS U.S. Large Cap Value Equity Fund |
|
|
79 |
|
|
|
UBS U.S. Mid Cap Growth Equity Fund |
|
|
86 |
|
|
|
UBS U.S. Small Cap Growth Fund |
|
|
93 |
|
|
|
UBS Absolute Return Bond Fund |
|
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102 |
|
|
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UBS Global Bond Fund |
|
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122 |
|
|
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UBS High Yield Fund |
|
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136 |
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|
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UBS U.S. Bond Fund |
|
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146 |
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|
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Explanation of expense disclosure |
|
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158 |
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|
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Statements of assets and liabilities |
|
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164 |
|
|
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Statements of operations |
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170 |
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Statements of changes in net assets |
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172 |
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Financial highlights |
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176 |
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Notes to financial statements |
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204 |
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Report of independent registered public accounting firm |
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241 |
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General information |
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242 |
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|
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Board approval of investment advisory agreements |
|
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243 |
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Trustee and Officer information |
|
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248 |
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Federal tax information |
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255 |
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|
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This page intentionally left blank.
UBS Funds Annual Report
August 15, 2007
Dear Shareholder,
We are pleased to provide you with the annual report for the UBS Funds. This report includes summaries of the performance of each fund and commentaries from the individual portfolio managers regarding the events that affected their results during the 12-month period that ended June 30, 2007.
What follows is an overview of the general economic and market environment during the period.
International economies stayed on track, while the US saw a slowdown
US economic growth fluctuated during the fiscal year. After expanding 2.6% in the second quarter of 2006, gross domestic product (GDP) grew 2.0% and 2.5% in the third and fourth quarters of the year. The economy then trailed off significantly over the first three months of 2007, with GDP growing a tepid 0.7%its slowest rate since the fourth quarter of 2002. The weakening economy was attributed, in part, to the troubles in the housing market. The economy then picked up steam in the second quarter of 2007, as the advance estimate for GDP growth was 3.4%.
Economic news was largely positive on the international front. A report issued by the Organization for Economic Cooperation and Development (OECD) estimated that, during 2007, growth in Europe and Japan was expected to eclipse the US for the first time since 2001. The OECD projected that the US economy would expand 2.1% in 2007, compared to 3.3% in 2006. In contrast, the estimates for growth during 2007 in the Eurozone and Japan were 2.7% and 2.4%, respectively.
The world's stock markets generated solid gains
The US stock market generated strong results during the fiscal year. Over this period, the overall stock market, as measured by the S&P 500 Index, rose 20.59%. The market's ascent was broad in scope, rising in 10 out of 12 months in the period, and producing double-digit gains in virtually every major index. The international equity markets also generated strong results, as the MSCI EAFE Index rose 27.54%. Emerging markets equities performed even better, gaining 45.45% during the 12-month period as measured by the MSCI EM Index. (The MSCI EAFE Index represents the developed markets outside of North America: Europe, Australasia and the Far East. The MSCI EM Index is a free float-adjusted market capitalization index consisting of 26 emerging markets country indices.) As was the case in the US, international equities were supported by strong corporate profits and an extremely active merger and acquisition (M&A) environment.
Across fixed income markets, moderation prevailed
The global bond markets also generated positive, albeit more modest gains over the 12-month reporting period. In the US, the Federal Reserve Board (the "Fed") kept short-term interest rates on hold at 5.25% over the fiscal year. Despite sharply higher interest rates (and falling bond prices) late in the period, overall, both short- and long-term yields declined over the review period. During that time, the overall US bond market, as measured by the Lehman Brothers U.S. Aggregate Index, returned 6.12%. Given solid economic growth and monetary tightening by many central banks, the international bond markets lagged their US counterparts. During the fiscal year, the JPMorgan Global Government Bond Index returned 4.35%. Lower quality fixed income securities, such as high yield bonds and emerging markets debt, generated better results, as the Lehman Brothers High Yield and JPMorgan EMBI Global Diversified Indexes returned 11.55% and 1
1.40%, respectively.
This page intentionally left blank.
UBS Dynamic Alpha Fund
Portfolio performance
For the 12 months ended June 30, 2007, Class A shares of UBS Dynamic Alpha Fund (the "Fund") returned 3.44% (Class A shares declined 2.23% after the deduction of the maximum sales charge), while Class Y shares returned 3.80%. For purposes of comparison, the Merrill Lynch US Treasury 15 Year Index returned 5.16% over the same time period, the MSCI World Free Index (net US) returned 23.94% and the Consumer Price Index (CPI) rose 2.69%. (Class Y shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 3; please note that these returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.)
Portfolio performance summary
What worked
Equity market allocations contributed positively to performance during the period. Throughout the year, we steadily reduced global equity market exposure in the Fund, moving it from 40.6% on June 30, 2006, to 13.2% at period end. This entailed reducing our exposures to several markets, primarily the US, continental Europe, Australia and emerging markets. The reduction was implemented in response to our belief that equity market valuations were becoming increasingly stretched as equity prices rose. Our analysis indicated that a favorable market behavior backdrop, including robust liquidity and a healthy risk appetite, was supporting equity prices.
Within equities, our long positions in the US, the UK, the Netherlands and the emerging markets generated the largest contribution to performance.
Our decision to further reduce our exposure to the fixed income markets contributed to returns. We adjusted our bond exposures several times during the year, moving from a net 1.5% short position on June 30, 2006 to a net 11.0% short position as of period end. (Shorting involves selling, or taking short positions in securities, asset classes or currencies that our research indicates are overpriced in hopes of making a profit when they fall in value. When shorting an investment, we first borrow it, then sell it, and then buy an equal number of shares laterhopefully at a lower priceto replace those we borrowed.) This positioning reflected our view that bond markets globally were somewhat overvalued relative to our risk estimates (with some differentiati
on between regions). By period end, many of the sovereign bond market valuations were close to fair value, but some nontraditional bonds, such as emerging markets debt and inflation-linked bonds, were still expensive.
A short exposure to UK bondswhere we had exposure to inflation-linked bonds, rather than to the conventional bond marketcontributed positively to returns. Positioning in German, US, and Swiss bonds also aided returns.
Security selection in certain segments of the portfolio boosted results. The Fund holds the vast majority of its security selection exposure in equity market vehicles. During the period, security selection among the US small cap, US large cap and 130/30 equity components (in which we take short positions on securities that we believe are overpriced) of the Fund added to performance.
1
UBS Dynamic Alpha Fund
What didn't work
The Fund's currency overlay was the most significant detractor from performance for the year. In general, we were long lower-yielding currencies and short higher-yielding currencies, during a period when investors were rewarded for participating in the "carry trade"a currency strategy that looks to profit by selling low-yielding currencies, and buying high-yielding ones. However, our research indicates investors' yield-seeking behavior has caused a significant valuation distortion in favor of high-yielding currencies (and, conversely, against low-yielding currencies). We expect the carry trade to unwind, and we believe we have positioned the Fund to benefit when it does.
On the long side, exposures to the Japanese yen, Swiss franc and Taiwan dollar had the largest negative impact.
Our short exposures to the British pound, euro, Australian dollar and New Zealand dollar were disappointments during the period, as well.
While our market allocations were positive contributors overall, short equity market exposures in Germany, France, Japan, Australia, and Canada detracted from performance, as those markets rallied further during the year.
Security selection in our global, European and fixed income components hurt performance over the period.
Portfolio Highlights
Fund positions as of June 30, 2007
|
|
Security selection 6/30/07 |
|
Derivatives overlay 6/30/07 |
|
Market exposure 6/30/07 |
|
Equity |
|
|
84.0 |
% |
|
|
-70.8 |
% |
|
|
13.2 |
% |
|
Fixed Income |
|
|
9.0 |
|
|
|
-20.0 |
|
|
|
-11.0 |
|
|
Cash |
|
|
7.0 |
|
|
|
0.0 |
|
|
|
7.0 |
|
|
Market exposure summary
June 30, 2006 |
|
June 30, 2007 |
|
Net market exposure = 39.1% |
|
Net market exposure = 2.2% |
|
Equity = 40.6 |
|
Equity = 13.2% |
|
Fixed Income = -1.5 |
|
Fixed Income = -11.0% |
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Security selection = 100% |
|
Security selection = 100% |
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Derivatives overlay = -52.9% |
|
Derivatives overlay = -90.8% |
|
This letter is intended to assist shareholders in understanding how the Fund performed during the 12 months ended June 30, 2007. The views and opinions in the letter were current as of August 15, 2007. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. Mutual funds are sold by prospectus only. You should read it carefully and consider a fund's investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be
obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/globalam-us.
2
UBS Dynamic Alpha Fund
Average annual total return (unaudited)
|
|
|
|
1 year ended 06/30/07 |
|
Inception(1) to 06/30/07 |
|
Before deducting |
|
Class A(2) |
|
|
3.44 |
% |
|
|
6.04 |
% |
|
maximum sales charge |
|
Class B(3) |
|
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2.64 |
|
|
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5.20 |
|
|
|
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Class C(4) |
|
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2.64 |
|
|
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5.22 |
|
|
|
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Class Y(5) |
|
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3.80 |
|
|
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6.33 |
|
|
After deducting maximum |
|
Class A(2) |
|
|
-2.23 |
|
|
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3.60 |
|
|
sales charge |
|
Class B(3) |
|
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-2.36 |
|
|
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4.04 |
|
|
|
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Class C(4) |
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1.64 |
|
|
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5.22 |
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Merrill Lynch US Treasury 1-5 Year Index(6) |
|
|
|
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5.16 |
|
|
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2.97 |
|
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MSCI World Free Index (net US)(7) |
|
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23.94 |
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17.58 |
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Consumer Price Index(8) |
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2.69 |
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3.73 |
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The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2006 prospectuses were as follows: Class A1.20% and 1.20%; Class B1.99% and 1.99%; Class C1.97% and 1.97%; Class Y.92% and .92%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. 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 management fees and/or to reimburse expenses to the extent necessary so that the Fund's operating expenses, through the fiscal year ending June 30, 2007, do not exceed Class A1.35%; Class B2.10%; Class C2.10%; Class Y1.10%. 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.
(1) Inception date of all share classes of UBS Dynamic Alpha Fund is 01/27/05. Inception date of the indices, for the purpose of this illustration, is 01/31/05.
(2) Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.
(3) Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.
(4) Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.
(5) The Fund offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.
(6) The Merrill Lynch US Treasury 1-5 Year Index: An unmanaged index tracking US Treasury securities with maturities between 1 and 5 years.
(7) The MSCI World Free Index (net US) is a broad-based securities index that represents the US and developed international equity markets in terms of capitalization and performance. It is designed to provide a representative total return for all major stock exchanges located inside and outside the United States. This benchmark has been calculated net of withholding tax from a US perspective.
(8) Consumer Price Index (CPI) - produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. The index is calculated by the Bureau of Labor Statistics.
If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectus.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
3
UBS Dynamic Alpha Fund
Illustration of an assumed investment of $10,000 in Class A shares (adjusted for maximum sales
charge) and $5,000,000 in Class Y shares (unaudited)
The following two charts show the growth in the value of an investment in UBS Dynamic Alpha Fund Class A shares (adjusted for 5.50% maximum sales charge) , Class Y shares, the Merrill Lynch US Treasury 1-5 Year Index, MSCI World Free Index (net US) and the Consumer Price Index, if you had invested $10,000 in Class A shares on January 27, 2005 or $5,000,000 in Class Y shares on January 27, 2005, and had reinvested all your income dividends and capital gain distributions through June 30, 2007. The performance of Class B and Class C shares will vary based upon specific expenses and sales charges. No adjustment has been made for any income taxes payable by shareholders on income dividends and capital gain distributions. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption.
UBS Dynamic Alpha Fund Class A vs.
Merrill Lynch US Treasury 1-5 Year Index, MSCI World Free Index (net US), and Consumer Price Index
Wealth value with dividends reinvested
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.50%.
Indices are started on 01/31/05.
UBS Dynamic Alpha Fund Class Y vs.
Merrill Lynch US Treasury 1-5 Year Index, MSCI World Free Index (net US), and Consumer Price Index
Wealth value with dividends reinvested
Indices are started on 01/31/05.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
4
UBS Dynamic Alpha Fund
Top ten equity holdings (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
BP PLC |
|
|
0.9 |
% |
|
Vodafone Group PLC |
|
|
0.9 |
|
|
Total SA |
|
|
0.9 |
|
|
Roche Holding AG |
|
|
0.6 |
|
|
Royal Bank of Scotland Group PLC |
|
|
0.6 |
|
|
HBOS PLC |
|
|
0.6 |
|
|
Barclays PLC |
|
|
0.5 |
|
|
Suez SA |
|
|
0.5 |
|
|
Banco Santander Central Hispano SA |
|
|
0.5 |
|
|
Credit Suisse Group |
|
|
0.5 |
|
|
Total |
|
|
6.5 |
% |
|
Top ten fixed income holdings (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
Ford Motor Credit Co. LLC, 7.875%, due 06/15/10 |
|
|
0.7 |
% |
|
Univision Communications, Inc., 7.850%, due 07/15/11 |
|
|
0.3 |
|
|
Lighthouse International Co. SA, 8.000%, due 04/30/14 |
|
|
0.2 |
|
|
Boise Cascade LLC, 7.125%, due 10/15/14 |
|
|
0.2 |
|
|
Republic of Turkey, 7.000%, due 09/26/16 |
|
|
0.2 |
|
|
Highlander Euro CDO, Series 06-2CA, Class F1, due 12/14/22 |
|
|
0.2 |
|
|
LNR CDO Ltd., Series 06-1A, Class FFX, 7.592%, due 05/28/43 |
|
|
0.2 |
|
|
Eurocredit CDO BV, Series VI-X, Class SUB, due 01/16/22 |
|
|
0.2 |
|
|
Shasta CLO I Ltd., due 04/20/21 |
|
|
0.2 |
|
|
Residential Capital LLC, 6.375%, due 06/30/10 |
|
|
0.2 |
|
|
Total |
|
|
2.6 |
% |
|
(1) Figures represent the direct investments of the UBS Dynamic Alpha Fund. Figures could be different if a breakdown of the underlying investment companies was included.
5
UBS Dynamic Alpha Fund
Industry diversification (unaudited)(1)
As a percentage of net assets as of June 30, 2007
Equities International equities |
|
Aerospace & defense |
|
|
0.08 |
% |
|
Air freight & logistics |
|
|
0.36 |
|
|
Airlines |
|
|
0.13 |
|
|
Automobiles |
|
|
0.28 |
|
|
Beverages |
|
|
0.31 |
|
|
Capital markets |
|
|
0.55 |
|
|
Chemicals |
|
|
0.05 |
|
|
Commercial banks |
|
|
4.25 |
|
|
Commercial services & supplies |
|
|
0.21 |
|
|
Communications equipment |
|
|
0.58 |
|
|
Computers & peripherals |
|
|
0.01 |
|
|
Construction & engineering |
|
|
0.02 |
|
|
Construction materials |
|
|
0.41 |
|
|
Consumer finance |
|
|
0.13 |
|
|
Containers & packaging |
|
|
0.16 |
|
|
Diversified consumer services |
|
|
0.06 |
|
|
Diversified financial services |
|
|
0.54 |
|
|
Diversified telecommunication services |
|
|
1.23 |
|
|
Electric utilities |
|
|
0.28 |
|
|
Electronic equipment & instruments |
|
|
0.07 |
|
|
Energy equipment & services |
|
|
0.03 |
|
|
Food & staples retailing |
|
|
0.50 |
|
|
Food products |
|
|
0.42 |
|
|
Health care equipment & supplies |
|
|
0.07 |
|
|
Health care providers & services |
|
|
0.22 |
|
|
Hotels, restaurants & leisure |
|
|
0.19 |
|
|
Household durables |
|
|
0.12 |
|
|
Household products |
|
|
0.20 |
|
|
Industrial conglomerates |
|
|
0.17 |
|
|
Insurance |
|
|
2.01 |
|
|
Internet & catalog retail |
|
|
0.06 |
|
|
IT services |
|
|
0.23 |
|
|
Machinery |
|
|
0.10 |
|
|
Marine |
|
|
0.11 |
|
|
Media |
|
|
0.48 |
|
|
Multi-utilities |
|
|
0.63 |
|
|
Oil, gas & consumable fuels |
|
|
2.51 |
|
|
Paper & forest products |
|
|
0.38 |
|
|
Pharmaceuticals |
|
|
1.85 |
|
|
Real estate investment trusts (REITs) |
|
|
0.16 |
|
|
Real estate management & development |
|
|
0.07 |
|
|
Semiconductors & semiconductor equipment |
|
|
0.18 |
|
|
Specialty retail |
|
|
0.23 |
|
|
Textiles, apparel & luxury goods |
|
|
0.02 |
|
|
Tobacco |
|
|
0.22 |
|
|
Trading companies & distributors |
|
|
0.47 |
|
|
Wireless telecommunication services |
|
|
1.03 |
|
|
Total international equities |
|
|
22.37 |
|
|
Bonds US bonds US corporate bonds |
|
Consumer finance |
|
|
0.72 |
% |
|
Media |
|
|
0.30 |
|
|
Paper & forest products |
|
|
0.35 |
|
|
Thrifts & mortgage finance |
|
|
0.17 |
|
|
Total US corporate bonds |
|
|
1.54 |
|
|
Asset-backed securities |
|
|
0.07 |
|
|
Collateralized debt obligations |
|
|
0.67 |
|
|
Total US bonds |
|
|
2.28 |
|
|
International bonds International corporate bonds |
|
Diversified financial services |
|
|
0.07 |
|
|
Media |
|
|
0.24 |
|
|
Paper & forest products |
|
|
0.11 |
|
|
Wireless telecommunication services |
|
|
0.08 |
|
|
Total international corporate bonds |
|
|
0.50 |
|
|
International collateralized debt obligations |
|
|
2.28 |
|
|
Foreign government bonds |
|
|
0.29 |
|
|
Total international bonds |
|
|
3.07 |
|
|
Total bonds |
|
|
5.35 |
|
|
Investment companies |
|
UBS Emerging Markets Equity Relationship Fund |
|
|
8.21 |
|
|
UBS International Equity Relationship Fund |
|
|
17.16 |
|
|
UBS Opportunistic Emerging Markets Debt Relationship Fund |
|
|
1.42 |
|
|
UBS Opportunistic High Yield Relationship Fund |
|
|
1.20 |
|
|
UBS Small-Cap Equity Relationship Fund |
|
|
6.39 |
|
|
UBS U.S. Equity Alpha Relationship Fund |
|
|
10.93 |
|
|
UBS U.S. Large Cap Equity Relationship Fund |
|
|
12.08 |
|
|
UBS U.S. Large Cap Growth Equity Relationship Fund |
|
|
6.49 |
|
|
Total investment companies |
|
|
63.88 |
|
|
Short-term investment |
|
|
2.02 |
|
|
Options purchased |
|
|
0.71 |
|
|
Total investments |
|
|
94.33 |
|
|
Cash and other assets, less liabilities |
|
|
5.67 |
|
|
Net assets |
|
|
100.00 |
% |
|
(1) Figures represent the industry breakdown of direct investments of the UBS Dynamic Alpha Fund. Figures would be different if a breakdown of the underlying investment companies' industry diversification was included.
6
UBS Dynamic Alpha FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities22.37% |
|
International equities22.37% |
|
Austria0.07% |
|
Telekom Austria AG |
|
|
86,661 |
|
|
$ |
2,169,890 |
|
|
Belgium0.36% |
|
Dexia SA |
|
|
81,920 |
|
|
|
2,573,400 |
|
|
Fortis |
|
|
172,737 |
|
|
|
7,366,751 |
|
|
KBC Groep NV |
|
|
11,889 |
|
|
|
1,609,439 |
|
|
|
|
|
11,549,590 |
|
|
Bermuda0.05% |
|
Catlin Group Ltd. |
|
|
129,953 |
|
|
|
1,249,992 |
|
|
Lancashire Holdings Ltd.* |
|
|
48,660 |
|
|
|
333,694 |
|
|
|
|
|
1,583,686 |
|
|
British Virgin Islands0.02% |
|
Dolphin Capital Investors Ltd.* |
|
|
248,553 |
|
|
|
843,512 |
|
|
Canada0.01% |
|
JumpTV, Inc.* |
|
|
36,065 |
|
|
|
173,813 |
|
|
Denmark0.11% |
|
A.P. Moeller - Maersk A/S |
|
|
286 |
|
|
|
3,459,006 |
|
|
Finland0.58% |
|
Nokia Oyj |
|
|
449,418 |
|
|
|
12,657,990 |
|
|
Stora Enso Oyj, Class R |
|
|
222,565 |
|
|
|
4,211,204 |
|
|
Tietoenator Oyj |
|
|
66,865 |
|
|
|
2,162,913 |
|
|
|
|
|
19,032,107 |
|
|
France3.03% |
|
AXA SA |
|
|
330,191 |
|
|
|
14,305,173 |
|
|
BNP Paribas |
|
|
99,688 |
|
|
|
11,921,772 |
|
|
Bouygues SA |
|
|
33,950 |
|
|
|
2,857,607 |
|
|
Carrefour SA |
|
|
35,209 |
|
|
|
2,484,660 |
|
|
France Telecom SA |
|
|
542,087 |
|
|
|
14,967,228 |
|
|
Neuf Cegetel* |
|
|
16,557 |
|
|
|
650,759 |
|
|
Sanofi-Aventis |
|
|
36,866 |
|
|
|
2,998,767 |
|
|
Suez SA |
|
|
299,427 |
|
|
|
17,219,475 |
|
|
Total SA |
|
|
339,761 |
|
|
|
27,710,533 |
|
|
Unibail-Rodamco |
|
|
13,138 |
|
|
|
3,381,176 |
|
|
|
|
|
98,497,150 |
|
|
Germany2.35% |
|
Allianz SE |
|
|
63,042 |
|
|
|
14,811,427 |
|
|
Bayerische Motoren Werke AG |
|
|
34,434 |
|
|
|
2,237,492 |
|
|
Celesio AG |
|
|
33,892 |
|
|
|
2,208,236 |
|
|
DaimlerChrysler AG |
|
|
73,897 |
|
|
|
6,860,090 |
|
|
Deutsche Lufthansa AG |
|
|
156,681 |
|
|
|
4,402,364 |
|
|
Deutsche Post AG |
|
|
162,866 |
|
|
|
5,296,957 |
|
|
Deutsche Postbank AG |
|
|
31,315 |
|
|
|
2,757,880 |
|
|
Deutsche Telekom AG |
|
|
242,365 |
|
|
|
4,490,716 |
|
|
E.ON AG |
|
|
28,310 |
|
|
|
4,762,317 |
|
|
Fresenius Medical Care AG & Co. KGaA |
|
|
80,250 |
|
|
|
3,707,008 |
|
|
Gerresheimer AG* |
|
|
50,043 |
|
|
|
2,590,699 |
|
|
Heidelberger Druckmaschinen AG |
|
|
39,002 |
|
|
|
1,896,646 |
|
|
Henkel KGaA, Preference shares |
|
|
120,443 |
|
|
|
6,372,201 |
|
|
|
|
Shares |
|
Value |
|
Germany(concluded) |
|
Metro AG |
|
|
82,218 |
|
|
$ |
6,841,368 |
|
|
Siemens AG |
|
|
29,216 |
|
|
|
4,214,033 |
|
|
Stada Arzneimittel AG |
|
|
49,146 |
|
|
|
3,142,247 |
|
|
|
|
|
76,591,681 |
|
|
Greece0.15% |
|
Alpha Bank AE |
|
|
71,697 |
|
|
|
2,260,992 |
|
|
National Bank of Greece SA |
|
|
47,641 |
|
|
|
2,733,940 |
|
|
|
|
|
4,994,932 |
|
|
Ireland0.46% |
|
Anglo Irish Bank Corp. PLC |
|
|
89,517 |
|
|
|
1,841,583 |
|
|
Bank of Ireland |
|
|
309,446 |
|
|
|
6,257,166 |
|
|
Depfa Bank PLC |
|
|
210,884 |
|
|
|
3,739,015 |
|
|
EcoSecurities Group PLC* |
|
|
130,580 |
|
|
|
1,043,626 |
|
|
Irish Life & Permanent PLC |
|
|
22,305 |
|
|
|
564,227 |
|
|
Smurfit Kappa Group PLC* |
|
|
63,200 |
|
|
|
1,591,863 |
|
|
|
|
|
15,037,480 |
|
|
Italy0.53% |
|
Banca Popolare di Verona e Novara Scrl |
|
|
48,534 |
|
|
|
1,401,789 |
|
|
ENI SpA |
|
|
220,457 |
|
|
|
8,026,356 |
|
|
Intesa Sanpaolo SpA |
|
|
1,033,433 |
|
|
|
7,734,810 |
|
|
|
|
|
17,162,955 |
|
|
Luxembourg0.15% |
|
SES, FDR |
|
|
222,316 |
|
|
|
4,808,280 |
|
|
Netherlands2.11% |
|
ABN AMRO Holding NV |
|
|
304,184 |
|
|
|
14,018,311 |
|
|
Aegon NV |
|
|
598,342 |
|
|
|
11,855,852 |
|
|
ASML Holding NV* |
|
|
208,548 |
|
|
|
5,786,315 |
|
|
ING Groep NV CVA |
|
|
226,897 |
|
|
|
10,069,604 |
|
|
Ordina NV |
|
|
19,947 |
|
|
|
415,758 |
|
|
Royal Dutch Shell PLC, Class B |
|
|
246,351 |
|
|
|
10,304,548 |
|
|
Royal KPN NV |
|
|
587,295 |
|
|
|
9,792,853 |
|
|
TNT NV |
|
|
139,406 |
|
|
|
6,307,541 |
|
|
|
|
|
68,550,782 |
|
|
Norway0.12% |
|
Telenor ASA* |
|
|
197,100 |
|
|
|
3,868,835 |
|
|
Panama0.04% |
|
Carnival Corp. |
|
|
25,600 |
|
|
|
1,248,512 |
|
|
Spain0.72% |
|
Altadis SA |
|
|
48,315 |
|
|
|
3,217,283 |
|
|
Banco Santander Central Hispano SA |
|
|
826,063 |
|
|
|
15,305,899 |
|
|
Repsol YPF SA |
|
|
123,064 |
|
|
|
4,871,908 |
|
|
|
|
|
23,395,090 |
|
|
Sweden0.53% |
|
Electrolux AB, Class B |
|
|
156,200 |
|
|
|
3,722,745 |
|
|
Holmen AB, Class B |
|
|
54,300 |
|
|
|
2,306,432 |
|
|
Svenska Cellulosa AB, Class B |
|
|
343,500 |
|
|
|
5,775,895 |
|
|
7
UBS Dynamic Alpha FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities(concluded) |
|
International equities(concluded) |
|
Sweden(concluded) |
|
Telefonaktiebolaget LM Ericsson, Class B |
|
|
1,373,000 |
|
|
$ |
5,512,718 |
|
|
|
|
|
17,317,790 |
|
|
Switzerland2.09% |
|
Credit Suisse Group |
|
|
214,035 |
|
|
|
15,305,736 |
|
|
Holcim Ltd. |
|
|
62,695 |
|
|
|
6,816,124 |
|
|
Nestle SA |
|
|
30,859 |
|
|
|
11,772,652 |
|
|
Novartis AG |
|
|
251,161 |
|
|
|
14,187,564 |
|
|
Roche Holding AG |
|
|
111,217 |
|
|
|
19,794,168 |
|
|
|
|
|
67,876,244 |
|
|
United Arab Emirates0.03% |
|
Lamprell PLC |
|
|
147,390 |
|
|
|
1,021,110 |
|
|
United Kingdom8.86% |
|
Aberdeen Asset Management PLC |
|
|
509,267 |
|
|
|
2,004,412 |
|
|
ACP Capital Ltd. |
|
|
244,193 |
|
|
|
703,672 |
|
|
Anite Group PLC |
|
|
252,318 |
|
|
|
377,476 |
|
|
Ashtead Group PLC |
|
|
491,002 |
|
|
|
1,498,691 |
|
|
AstraZeneca PLC |
|
|
102,910 |
|
|
|
5,544,515 |
|
|
Aviva PLC |
|
|
219,342 |
|
|
|
3,274,825 |
|
|
Barclays PLC |
|
|
1,267,520 |
|
|
|
17,715,336 |
|
|
BP PLC |
|
|
2,545,937 |
|
|
|
30,828,351 |
|
|
BPP Holdings PLC |
|
|
83,060 |
|
|
|
954,055 |
|
|
British American Tobacco PLC |
|
|
118,336 |
|
|
|
4,034,966 |
|
|
British Polythene Industries PLC |
|
|
43,639 |
|
|
|
363,671 |
|
|
BT Group PLC |
|
|
502,520 |
|
|
|
3,355,292 |
|
|
Cadbury Schweppes PLC |
|
|
90,125 |
|
|
|
1,230,664 |
|
|
Carnival PLC |
|
|
18,117 |
|
|
|
867,681 |
|
|
Cattles PLC |
|
|
533,035 |
|
|
|
4,195,919 |
|
|
Centaur Media PLC |
|
|
229,206 |
|
|
|
612,157 |
|
|
Centrica PLC |
|
|
268,105 |
|
|
|
2,091,613 |
|
|
Chemring Group PLC |
|
|
9,486 |
|
|
|
374,500 |
|
|
Compass Group PLC |
|
|
521,369 |
|
|
|
3,619,868 |
|
|
Computacenter PLC |
|
|
38,746 |
|
|
|
175,647 |
|
|
Daily Mail & General Trust, Class A (Non-voting) |
|
|
240,120 |
|
|
|
3,691,126 |
|
|
Diageo PLC |
|
|
490,997 |
|
|
|
10,224,520 |
|
|
Dignity PLC |
|
|
40,036 |
|
|
|
543,479 |
|
|
DSG International PLC |
|
|
415,315 |
|
|
|
1,323,549 |
|
|
eaga PLC* |
|
|
62,400 |
|
|
|
268,467 |
|
|
Electrocomponents PLC |
|
|
255,304 |
|
|
|
1,358,591 |
|
|
Elementis PLC |
|
|
338,891 |
|
|
|
670,319 |
|
|
Enodis PLC |
|
|
208,065 |
|
|
|
825,185 |
|
|
Entertainment Rights PLC* |
|
|
458,314 |
|
|
|
294,509 |
|
|
Experian Group Ltd. |
|
|
229,786 |
|
|
|
2,904,722 |
|
|
Fenner PLC |
|
|
129,205 |
|
|
|
614,912 |
|
|
Foseco PLC |
|
|
147,290 |
|
|
|
601,898 |
|
|
Future PLC |
|
|
515,518 |
|
|
|
455,493 |
|
|
Galliford Try PLC |
|
|
231,600 |
|
|
|
738,308 |
|
|
Georgica PLC* |
|
|
218,005 |
|
|
|
507,820 |
|
|
GlaxoSmithKline PLC |
|
|
539,768 |
|
|
|
14,145,001 |
|
|
Gyrus Group PLC* |
|
|
31,707 |
|
|
|
300,685 |
|
|
|
|
Shares |
|
Value |
|
United Kingdom(concluded) |
|
Hanson PLC |
|
|
298,580 |
|
|
$ |
6,463,456 |
|
|
HBOS PLC |
|
|
957,527 |
|
|
|
18,949,292 |
|
|
Highway Insurance Holdings PLC |
|
|
265,409 |
|
|
|
394,396 |
|
|
Home Retail Group PLC |
|
|
229,786 |
|
|
|
2,117,979 |
|
|
HSBC Holdings PLC |
|
|
414,339 |
|
|
|
7,613,112 |
|
|
ICAP PLC |
|
|
66,364 |
|
|
|
658,332 |
|
|
Kesa Electricals PLC |
|
|
182,581 |
|
|
|
1,154,002 |
|
|
Kingfisher PLC |
|
|
715,338 |
|
|
|
3,253,605 |
|
|
Land Securities Group PLC |
|
|
56,392 |
|
|
|
1,973,787 |
|
|
Leaf Clean Energy Co.* |
|
|
351,856 |
|
|
|
748,956 |
|
|
LogicaCMG PLC |
|
|
891,538 |
|
|
|
2,716,776 |
|
|
London Scottish Bank PLC |
|
|
283,312 |
|
|
|
568,919 |
|
|
Lookers PLC |
|
|
193,218 |
|
|
|
692,582 |
|
|
Majestic Wine PLC |
|
|
85,274 |
|
|
|
666,119 |
|
|
Meggitt PLC |
|
|
303,229 |
|
|
|
1,875,456 |
|
|
National Grid PLC |
|
|
69,174 |
|
|
|
1,025,143 |
|
|
Northgate Information Solutions PLC |
|
|
766,298 |
|
|
|
1,231,042 |
|
|
Old Mutual PLC |
|
|
1,451,584 |
|
|
|
4,923,310 |
|
|
PayPoint PLC |
|
|
54,639 |
|
|
|
682,462 |
|
|
Phoenix IT Group Ltd. |
|
|
62,494 |
|
|
|
526,762 |
|
|
Premier Farnell PLC, Preferred |
|
|
29,509 |
|
|
|
844,413 |
|
|
Prudential PLC |
|
|
948,130 |
|
|
|
13,594,131 |
|
|
Psion PLC |
|
|
97,606 |
|
|
|
248,923 |
|
|
Quintain Estates & Development PLC |
|
|
47,193 |
|
|
|
768,097 |
|
|
Reed Elsevier PLC |
|
|
366,526 |
|
|
|
4,758,375 |
|
|
Rentokil Initial PLC |
|
|
686,973 |
|
|
|
2,214,114 |
|
|
Rexam PLC |
|
|
62,219 |
|
|
|
623,148 |
|
|
Royal Bank of Scotland Group PLC |
|
|
1,517,493 |
|
|
|
19,289,268 |
|
|
Safestore Holdings Ltd.* |
|
|
117,350 |
|
|
|
450,093 |
|
|
Scottish & Southern Energy PLC |
|
|
151,295 |
|
|
|
4,402,286 |
|
|
Southern Cross Healthcare Ltd. |
|
|
96,009 |
|
|
|
1,090,260 |
|
|
Speedy Hire PLC |
|
|
31,620 |
|
|
|
755,604 |
|
|
Sports Direct International PLC* |
|
|
293,259 |
|
|
|
1,068,842 |
|
|
SSL International PLC |
|
|
225,292 |
|
|
|
1,975,896 |
|
|
Taylor Nelson Sofres PLC |
|
|
184,136 |
|
|
|
876,340 |
|
|
Ted Baker PLC |
|
|
57,133 |
|
|
|
595,442 |
|
|
Telent PLC* |
|
|
63,046 |
|
|
|
652,004 |
|
|
Tesco PLC |
|
|
730,807 |
|
|
|
6,141,628 |
|
|
Tomkins PLC |
|
|
109,775 |
|
|
|
573,142 |
|
|
Travis Perkins PLC |
|
|
17,995 |
|
|
|
686,579 |
|
|
Ultra Electronics Holdings PLC |
|
|
23,548 |
|
|
|
512,115 |
|
|
Vanco PLC* |
|
|
70,673 |
|
|
|
596,058 |
|
|
Vectura Group PLC* |
|
|
201,270 |
|
|
|
349,607 |
|
|
Vodafone Group PLC |
|
|
9,091,675 |
|
|
|
30,635,233 |
|
|
Wolseley PLC |
|
|
506,664 |
|
|
|
12,229,532 |
|
|
Yule Catto & Co. PLC |
|
|
107,881 |
|
|
|
493,930 |
|
|
Zetar PLC* |
|
|
62,943 |
|
|
|
719,192 |
|
|
|
|
|
288,671,635 |
|
|
Total international equities (cost $591,449,406) |
|
|
727,854,080 |
|
|
8
UBS Dynamic Alpha FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds5.35% |
|
US bonds2.28% |
|
US corporate bonds1.54% |
|
Boise Cascade LLC, 7.125%, due 10/15/14 |
|
$ |
8,000,000 |
|
|
$ |
7,600,000 |
|
|
Bowater, Inc., 9.500%, due 10/15/12 |
|
|
4,000,000 |
|
|
|
3,940,000 |
|
|
Ford Motor Credit Co. LLC, 7.875%, due 06/15/10 |
|
|
23,500,000 |
|
|
|
23,495,488 |
|
|
Residential Capital LLC, 6.375%, due 06/30/10 |
|
|
5,520,000 |
|
|
|
5,448,748 |
|
|
Univision Communications, Inc., 7.850%, due 07/15/11 |
|
|
8,000,000 |
|
|
|
8,240,000 |
|
|
WDAC Subsidiary Corp., 8.500%, due 12/01/14 |
|
EUR |
1,050,000 |
|
|
|
1,485,073 |
|
|
Total US corporate bonds (cost $50,724,611) |
|
|
50,209,309 |
|
|
Asset-backed securities0.07% |
|
First Franklin Mortgage Loan Asset-Backed Certificates, Series 06-FFA, Class B2, 6.000%, due 09/25/26(1),(2),(3) |
|
$ |
7,591,309 |
|
|
|
1,518,262 |
|
|
Home Equity Mortgage Trust, Series 06-5, Class B1, 9.320%, due 01/25/37(2),(4) |
|
|
5,000,000 |
|
|
|
400,000 |
|
|
Nomura Asset Acceptance Corp., Series 06-S4, Class B4, 8.000%, due 08/25/36(2),(4) |
|
|
6,474,000 |
|
|
|
194,220 |
|
|
Total asset-backed securities (cost $16,438,866) |
|
|
2,112,482 |
|
|
Collateralized debt obligations0.67% |
|
Brentwood Investors CDO Corp., due 05/01/16(1),(2),(6) |
|
|
1,200,000 |
|
|
|
1,200,000 |
|
|
Cent CDO Ltd., due 11/18/20(2),(6) |
|
|
2,000,000 |
|
|
|
1,820,000 |
|
|
Colts, Series 07-1, due 03/20/21(1),(2),(6) |
|
|
1,700,000 |
|
|
|
1,666,000 |
|
|
GoldenTree Loan Opportunities III Ltd., Series 07-3A, Class SUB, due 05/01/22(1),(2),(6) |
|
|
2,600,000 |
|
|
|
2,673,060 |
|
|
Greywolf CLO Ltd., Series 07-1A, Class SUB, due 02/18/21(1),(2),(5),(6) |
|
|
1,000,000 |
|
|
|
980,000 |
|
|
MC Funding Ltd., Series 06-1, due 12/20/20(1),(2),(6) |
|
|
2,900,000 |
|
|
|
2,857,950 |
|
|
OHA Park Avenue CLO Ltd., Series 07-1A, Class SUB, due 03/14/22(1),(2),(6) |
|
|
2,400,000 |
|
|
|
2,304,000 |
|
|
Regent's Park CDO BV, Series 1A, Class F, due 01/26/23(1),(2),(6) |
|
EUR |
2,000,000 |
|
|
|
2,551,794 |
|
|
|
|
Face amount |
|
Value |
|
Collateralized debt obligations(concluded) |
|
Shasta CLO I Ltd., due 04/20/21(1),(2),(6) |
|
$ |
6,000,000 |
|
|
$ |
5,760,000 |
|
|
Total collateralized debt obligations (cost $21,760,845) |
|
|
21,812,804 |
|
|
Total US bonds (cost $88,924,322) |
|
|
74,134,595 |
|
|
International bonds3.07% |
|
Foreign government bonds0.29% |
|
Argentina0.07% |
|
Republic of Argentina, 5.475%, due 08/03/12(4) |
|
|
3,000,000 |
|
|
|
2,187,750 |
|
|
Turkey0.22% |
|
Republic of Turkey, 7.000%, due 09/26/16 |
|
|
7,340,000 |
|
|
|
7,422,575 |
|
|
Total foreign government bonds (cost $9,636,591) |
|
|
9,610,325 |
|
|
International collateralized debt obligations2.28% |
|
Cayman Islands0.96% |
|
Avenue CLO Fund Ltd., Series 06-4I, Class SUB, due 11/07/18(2),(6) |
|
|
2,625,000 |
|
|
|
2,483,512 |
|
|
Series 07-5I, Class SUB, due 04/25/19(2),(6) |
|
|
2,200,000 |
|
|
|
2,092,860 |
|
|
Babson CLO Ltd., Series 07-1A, Class INC, due 01/18/21(1),(2),(6) |
|
|
1,500,000 |
|
|
|
1,500,000 |
|
|
Black Diamond CLO Ltd., Series 06-1A, Class INC, due 04/29/19(2),(6) |
|
|
2,500,000 |
|
|
|
2,500,000 |
|
|
Callidus Debt Partners CDO Fund I Ltd., Series 5A, Class INC, due 11/20/20(1),(2),(6) |
|
|
2,000,000 |
|
|
|
2,000,000 |
|
|
Duane Street CLO, Series 06-3A, Class SUB, due 01/11/21(1),(2),(6) |
|
|
1,200,000 |
|
|
|
1,116,000 |
|
|
Emerson Place CLO Ltd., Series 06-1A, Class SUB, due 01/15/19(1),(2),(6) |
|
|
2,750,000 |
|
|
|
2,557,500 |
|
|
FM Leveraged Capital Fund II, due 11/20/20(1),(2),(6) |
|
|
5,300,000 |
|
|
|
4,770,000 |
|
|
GSC Partners CDO Fund, Series 07-8A, Class SUB, due 04/17/21(1),(2),(6) |
|
|
1,500,000 |
|
|
|
1,500,000 |
|
|
GSC Partners CDO Fund V, Ltd., due 11/20/16(1),(2),(6) |
|
|
1,200,000 |
|
|
|
1,044,000 |
|
|
Harbourview CLO VI Ltd., Series 6A, Class SUB, due 12/27/19(1),(2),(6) |
|
|
1,200,000 |
|
|
|
1,194,000 |
|
|
LNR CDO Ltd., Series 06-1A, Class FFX, 7.592%, due 05/28/43(1),(2),(5) |
|
|
8,000,000 |
|
|
|
6,400,000 |
|
|
9
UBS Dynamic Alpha FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(concluded) |
|
International bonds(concluded) |
|
International collateralized debt obligations(concluded) |
|
Cayman Islands(concluded) |
|
Logan CDO Ltd., Series III-A, Class E, due 07/05/57(1),(2),(5),(6) |
|
$ |
2,000,000 |
|
|
$ |
2,000,000 |
|
|
|
|
|
31,157,872 |
|
|
Ireland0.33% |
|
Avoca CLO I BV, Series VI-A, Class M, due 01/16/23(1),(2),(6) |
|
EUR |
2,000,000 |
|
|
|
2,706,900 |
|
|
Eurocredit CDO BV, Series VI-X, Class SUB, due 01/16/22(2),(6) |
|
|
4,500,000 |
|
|
|
6,090,525 |
|
|
Menton CDO PLC, Series III-A, Class E, 12.510%, due 11/28/56(1),(2),(4),(5) |
|
$ |
2,900,000 |
|
|
|
2,082,780 |
|
|
|
|
|
10,880,205 |
|
|
Luxembourg0.29% |
|
Ashwell CDO SA, due 12/22/66(1),(2),(6) |
|
EUR |
3,000,000 |
|
|
|
3,491,901 |
|
|
due 12/22/77(1),(2),(6) |
|
GBP |
1,400,000 |
|
|
|
2,656,716 |
|
|
GSC European CDO SA, Series I-RA, Class SUB, due 12/15/22(1),(2),(6) |
|
EUR |
2,400,000 |
|
|
|
3,183,315 |
|
|
|
|
|
9,331,932 |
|
|
Netherlands0.70% |
|
Ares Euro CLO BV, Series 07-1A, Class G1, due 05/15/24(1),(2),(6) |
|
EUR |
1,400,000 |
|
|
|
1,875,882 |
|
|
Cadogan Square CLO BV, Series 3A, Class M, 11.328%, due 01/17/23(2),(4) |
|
|
2,000,000 |
|
|
|
2,964,868 |
|
|
Grosvenor Place CLO BV, Series II-A, Class SUB, 7.500%, due 03/28/23(1),(2) |
|
|
3,250,000 |
|
|
|
4,398,712 |
|
|
Harbourmaster CLO Ltd., Series 7A, Class C, due 09/22/22(1),(2),(6) |
|
|
3,000,000 |
|
|
|
4,060,350 |
|
|
Highlander Euro CDO, Series 06-2CA, Class F1, due 12/14/22(1),(2),(5),(6) |
|
|
5,000,000 |
|
|
|
6,631,905 |
|
|
Queen Street CLO, Series 06-1A, Class F, due 04/15/23(1),(2),(6) |
|
|
1,900,000 |
|
|
|
2,749,249 |
|
|
|
|
|
22,680,966 |
|
|
Total international collateralized debt obligations (cost $74,321,270) |
|
|
74,050,975 |
|
|
|
|
Face amount |
|
Value |
|
International corporate bonds0.50% |
|
Canada0.11% |
|
Bowater Canada Finance Corp., 7.950%, due 11/15/11 |
|
$ |
4,000,000 |
|
|
$ |
3,765,000 |
|
|
Ireland0.07% |
|
Smurfit Kappa Funding PLC, 7.750%, due 04/01/15 |
|
EUR |
1,500,000 |
|
|
|
2,121,533 |
|
|
Luxembourg0.32% |
|
Hellas Telecommunications Luxembourg III, 8.500%, due 10/15/13 |
|
EUR |
1,721,000 |
|
|
|
2,515,630 |
|
|
Lighthouse International Co. SA, 8.000%, due 04/30/14 |
|
|
5,500,000 |
|
|
|
7,872,004 |
|
|
|
|
|
10,387,634 |
|
|
Total international corporate bonds (cost $16,393,971) |
|
|
16,274,167 |
|
|
Total international bonds (cost $100,351,832) |
|
|
99,935,467 |
|
|
Total bonds (cost $189,276,154) |
|
|
174,070,062 |
|
|
|
|
Shares |
|
|
|
Investment companies63.88% |
|
UBS Emerging Markets Equity Relationship Fund(7) |
|
|
8,037,451 |
|
|
|
266,941,429 |
|
|
UBS International Equity Relationship Fund(7) |
|
|
26,700,907 |
|
|
|
558,286,604 |
|
|
UBS Opportunistic Emerging Markets Debt Relationship Fund(7) |
|
|
3,866,136 |
|
|
|
46,175,197 |
|
|
UBS Opportunistic High Yield Relationship Fund(7) |
|
|
2,914,342 |
|
|
|
39,142,524 |
|
|
UBS Small-Cap Equity Relationship Fund(7) |
|
|
4,024,500 |
|
|
|
207,949,963 |
|
|
UBS U.S. Equity Alpha Relationship Fund(7) |
|
|
26,550,685 |
|
|
|
355,505,707 |
|
|
UBS U.S. Large Cap Equity Relationship Fund(7) |
|
|
17,639,574 |
|
|
|
392,865,068 |
|
|
UBS U.S. Large Cap Growth Equity Relationship Fund(7) |
|
|
17,917,764 |
|
|
|
211,030,048 |
|
|
Total investment companies (cost $1,612,733,981) |
|
|
2,077,896,540 |
|
|
Short-term investment2.02% |
|
Investment company2.02% |
|
UBS U.S. Cash Management Prime Relationship Fund, 5.36%(7),(8) (cost $65,842,675) |
|
|
65,842,675 |
|
|
|
65,842,675 |
|
|
10
UBS Dynamic Alpha FundPortfolio of investments
June 30, 2007
|
|
Number of contracts |
|
Value |
|
Options purchased0.71% |
|
Call options0.23% |
|
Australian Dollar, strike @ AUD 0.835, expires February 2008*(9) |
|
|
82,600,000 |
|
|
$ |
1,922,276 |
|
|
Euro Dollar, strike @ EUR 159.89, expires April 2008*(9) |
|
|
48,650,000 |
|
|
|
1,713,954 |
|
|
5 Year US Treasury Notes Futures, strike @ USD 104.50, expires August 2007*(9) |
|
|
11,436 |
|
|
|
3,752,438 |
|
|
5 Year US Treasury Notes Futures, strike @ USD 106.00, expires August 2007*(9) |
|
|
3,966 |
|
|
|
185,906 |
|
|
Total call options |
|
|
7,574,574 |
|
|
Put options0.48% |
|
Dow Jones Euro STOXX 50 Index Futures, strike @ EUR 4,300, expires September 2007*(9) |
|
|
2,080 |
|
|
|
2,032,557 |
|
|
|
|
Number of contracts |
|
Value |
|
Put options(concluded) |
|
Dow Jones Euro STOXX 50 Index Futures, strike @ EUR 4,450, expires December 2007*(9) |
|
|
2,200 |
|
|
$ |
5,052,970 |
|
|
5 Year US Treasury Notes Futures, strike @ USD 103.50, expires August 2007*(9) |
|
|
11,436 |
|
|
|
3,037,688 |
|
|
Nikkei 225 Index Futures, strike @ JPY 18,000, expires December 2007*(9) |
|
|
860 |
|
|
|
5,437,645 |
|
|
Total put options |
|
|
15,560,860 |
|
|
Total options purchased (cost $26,092,795) |
|
|
23,135,434 |
|
|
Total investments94.33% (cost $2,485,395,011) |
|
|
3,068,798,791 |
|
|
Cash and other assets, less liabilities5.67% |
|
|
184,289,729 |
|
|
Net assets100.00% |
|
$ |
3,253,088,520 |
|
|
Notes to portfolio of investments
Aggregate cost for federal income tax purposes was $2,751,040,084; and net unrealized appreciation consisted of:
Gross unrealized appreciation |
|
$ |
368,649,661 |
|
|
Gross unrealized depreciation |
|
|
(50,890,954 |
) |
|
Net unrealized appreciation |
|
$ |
317,758,707 |
|
|
* Non-income producing security.
(1) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid, unless otherwise noted, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2007, the value of these securities amounted to $79,430,276 or 2.44% of net assets.
(2) Security is illiquid. At June 30, 2007, the value of these securities amounted to $97,976,261 or 3.01% of net assets.
(3) Step bondCoupon rate increases in increments to maturity. Rate disclosed is as of June 30, 2007. Maturity date disclosed is the ultimate maturity date.
(4) Floating rate securityThe interest rate shown is the current rate as of June 30, 2007.
(5) Security is being fair valued by a valuation committee under the direction of the Board of Trustees. At June 30, 2007, the value of these securities amounted to $18,094,685 or 0.56% of net assets.
(6) This security is the equity tranche of a collateralized debt obligation. The Fund receives periodic payments, which may vary, from the issuer of this security.
(7) Investment in affiliated mutual fund.
(8) The rate shown reflects the yield at June 30, 2007.
(9) This security was pledged to cover margin requirements for futures contracts.
CDO Collateralized debt obligations
CLO Collateralized loan obligations
CVA Dutch certificationdepositary certificate
FDR Fiduciary depositary receipt
Preference shares A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
Currency type abbreviations:
AUD Australian Dollar
JPY Japanese Yen
EUR Euro
GBP Great Britain Pound
USD United States Dollar
11
UBS Dynamic Alpha FundPortfolio of investments
June 30, 2007
Restricted securities
Securities |
|
Acquisition dates |
|
Acquisition cost |
|
Acquisition cost as a percentage of net assets |
|
06/30/07 Market value |
|
06/30/07 Market value as a percentage of net assets |
|
Ares Euro CLO BV, Series 07-2A, Class G1, due 05/15/24 |
|
04/04/07 |
|
$ |
1,863,680 |
|
|
|
0.06 |
% |
|
$ |
1,875,882 |
|
|
|
0.06 |
% |
|
Ashwell CDO SA, due 12/22/66 |
|
10/16/06 |
|
|
3,087,883 |
|
|
|
0.09 |
|
|
|
3,491,901 |
|
|
|
0.11 |
|
|
due 12/22/77 |
|
01/29/07 |
|
|
2,527,693 |
|
|
|
0.08 |
|
|
|
2,656,716 |
|
|
|
0.08 |
|
|
Avoca CLO I BV, Series VI-A, Class M, due 01/16/23 |
|
10/19/06 |
|
|
2,525,500 |
|
|
|
0.08 |
|
|
|
2,706,900 |
|
|
|
0.08 |
|
|
Babson CLO Ltd., Series 07-1A, Class INC, due 01/18/21 |
|
02/02/07 |
|
|
1,425,000 |
|
|
|
0.04 |
|
|
|
1,500,000 |
|
|
|
0.05 |
|
|
Brentwood Investors CDO Corp., due 05/01/16 |
|
12/07/06 |
|
|
1,164,000 |
|
|
|
0.04 |
|
|
|
1,200,000 |
|
|
|
0.04 |
|
|
Callidus Debt Partners CDO Fund I Ltd., Series 5A, Class INC, due 11/20/20 |
|
11/01/06 |
|
|
1,900,000 |
|
|
|
0.06 |
|
|
|
2,000,000 |
|
|
|
0.06 |
|
|
Colts, Series 07-1, due 03/20/21 |
|
02/09/07 |
|
|
1,615,000 |
|
|
|
0.04 |
|
|
|
1,666,000 |
|
|
|
0.05 |
|
|
Duane Street CLO, Series 06-3A, Class SUB, due 01/11/21 |
|
11/15/06 |
|
|
1,140,000 |
|
|
|
0.04 |
|
|
|
1,116,000 |
|
|
|
0.03 |
|
|
Emerson Place CLO Ltd., Series 06-1A, Class SUB, due 01/15/19 |
|
11/03/06 |
|
|
2,447,500 |
|
|
|
0.08 |
|
|
|
2,557,500 |
|
|
|
0.08 |
|
|
First Franklin Mortgage Loan Asset-Backed Certificates, Series 06-FFA, Class B2, 6.000%, due 09/25/26 |
|
11/03/06 |
|
|
8,813,659 |
|
|
|
0.27 |
|
|
|
1,518,262 |
|
|
|
0.05 |
|
|
FM Leveraged Capital Fund II, due 11/20/20 |
|
10/31/06 |
|
|
5,300,000 |
|
|
|
0.16 |
|
|
|
4,770,000 |
|
|
|
0.15 |
|
|
GoldenTree Loan Opportunities III Ltd., Series 07-3A, Class SUB, due 05/01/22 |
|
02/27/07 |
|
|
2,600,000 |
|
|
|
0.08 |
|
|
|
2,673,060 |
|
|
|
0.08 |
|
|
Greywolf CLO Ltd., Series 07-1A, Class SUB, due 02/18/21 |
|
12/08/06 |
|
|
990,000 |
|
|
|
0.03 |
|
|
|
980,000 |
|
|
|
0.03 |
|
|
Grosvenor Place CLO BV, Series II-A, Class SUB, 7.500%, due 03/28/23 |
|
12/15/06 |
|
|
4,209,455 |
|
|
|
0.13 |
|
|
|
4,398,712 |
|
|
|
0.13 |
|
|
GSC European CDO SA, Series I-RA, Class SUB, due 12/15/22 |
|
12/01/06 |
|
|
3,200,760 |
|
|
|
0.10 |
|
|
|
3,183,315 |
|
|
|
0.10 |
|
|
GSC Partners CDO Fund Ltd., Series 07-8A, Class SUB, due 04/17/21 |
|
02/28/07 |
|
|
1,393,350 |
|
|
|
0.04 |
|
|
|
1,500,000 |
|
|
|
0.05 |
|
|
GSC Partners CDO Fund V, Ltd., due 11/20/16 |
|
02/07/07 |
|
|
1,104,000 |
|
|
|
0.03 |
|
|
|
1,044,000 |
|
|
|
0.03 |
|
|
Harbourmaster CLO Ltd., Series 7A, Class C, due 09/22/22 |
|
10/31/06 |
|
|
3,637,455 |
|
|
|
0.11 |
|
|
|
4,060,350 |
|
|
|
0.12 |
|
|
Harbourview CLO VI Ltd., Series 6A, Class SUB, due 12/27/19 |
|
10/20/06 |
|
|
1,128,000 |
|
|
|
0.03 |
|
|
|
1,194,000 |
|
|
|
0.04 |
|
|
Highlander Euro CDO, Series 06-2CA, Class F1, due 12/14/22 |
|
12/01/06 |
|
|
6,400,787 |
|
|
|
0.20 |
|
|
|
6,631,905 |
|
|
|
0.20 |
|
|
LNR CDO Ltd., Series 06-1A, Class FFX, 7.592%, due 05/28/43 |
|
11/03/06 |
|
|
8,138,056 |
|
|
|
0.25 |
|
|
|
6,400,000 |
|
|
|
0.20 |
|
|
Logan CDO Ltd., Series III-A, Class E, due 07/05/57 |
|
06/08/07 |
|
|
2,000,000 |
|
|
|
0.06 |
|
|
|
2,000,000 |
|
|
|
0.06 |
|
|
Menton CDO PLC, Series III-A, Class E, 12.510%, due 11/28/56 |
|
10/18/06 |
|
|
2,900,000 |
|
|
|
0.09 |
|
|
|
2,082,780 |
|
|
|
0.06 |
|
|
MC Funding Ltd., Series 06-1, due 12/20/20 |
|
12/08/06 |
|
|
2,857,837 |
|
|
|
0.09 |
|
|
|
2,857,950 |
|
|
|
0.09 |
|
|
OHA Park Avenue CLO Ltd., Series 07-1A, Class SUB, due 03/14/22 |
|
02/26/07 |
|
|
2,400,000 |
|
|
|
0.07 |
|
|
|
2,304,000 |
|
|
|
0.07 |
|
|
Queen Street CLO, Series 06-1A, Class F, due 04/15/23 |
|
12/14/06 |
|
|
2,523,200 |
|
|
|
0.08 |
|
|
|
2,749,249 |
|
|
|
0.08 |
|
|
Regent's Park CDO BV, Series 1A, Class F, due 01/26/23 |
|
09/25/06 |
|
|
2,551,500 |
|
|
|
0.08 |
|
|
|
2,551,794 |
|
|
|
0.08 |
|
|
Shasta CLO I Ltd., due 04/20/21 |
|
12/20/06 |
|
|
5,700,000 |
|
|
|
0.18 |
|
|
|
5,760,000 |
|
|
|
0.18 |
|
|
|
|
|
|
$ |
87,544,315 |
|
|
|
2.69 |
% |
|
$ |
79,430,276 |
|
|
|
2.44 |
% |
|
12
UBS Dynamic Alpha FundPortfolio of investments
June 30, 2007
Forward foreign currency contracts
UBS Dynamic Alpha Fund had the following open forward foreign currency contracts as of June 30, 2007:
|
|
Contracts to deliver |
|
In exchange for |
|
Maturity dates |
|
Unrealized appreciation/ (depreciation) |
|
Australian Dollar |
|
|
265,695,000 |
|
|
USD |
218,529,696 |
|
|
11/29/07 |
|
$ |
(5,715,703 |
) |
|
Brazilian Real |
|
|
67,400,000 |
|
|
USD |
34,431,673 |
|
|
08/20/07 |
|
|
(287,071 |
) |
|
Canadian Dollar |
|
|
171,595,000 |
|
|
USD |
158,988,780 |
|
|
11/29/07 |
|
|
(2,573,134 |
) |
|
Euro |
|
|
25,410,463 |
|
|
HUF |
6,416,650,000 |
|
|
09/12/07 |
|
|
521,268 |
|
|
Euro |
|
|
912,480,000 |
|
|
USD |
1,234,617,182 |
|
|
11/29/07 |
|
|
(5,942,975 |
) |
|
Great Britain Pound |
|
|
429,100,000 |
|
|
USD |
844,298,197 |
|
|
11/29/07 |
|
|
(15,150,002 |
) |
|
Latvian Lats |
|
|
18,280,000 |
|
|
EUR |
25,870,365 |
|
|
09/12/07 |
|
|
(340,248 |
) |
|
New Zealand Dollar |
|
|
86,185,000 |
|
|
JPY |
7,762,769,135 |
|
|
11/29/07 |
|
|
(1,376,304 |
) |
|
New Zealand Dollar |
|
|
51,180,000 |
|
|
USD |
36,745,039 |
|
|
11/29/07 |
|
|
(2,235,127 |
) |
|
South African Rand |
|
|
103,300,000 |
|
|
USD |
14,439,878 |
|
|
11/29/07 |
|
|
106,651 |
|
|
South Korean Won |
|
|
162,730,000,000 |
|
|
USD |
175,285,716 |
|
|
08/20/07 |
|
|
(1,155,589 |
) |
|
United States Dollar |
|
|
302,022,335 |
|
|
CHF |
366,190,000 |
|
|
11/29/07 |
|
|
963,463 |
|
|
United States Dollar |
|
|
34,219,613 |
|
|
EUR |
25,160,000 |
|
|
11/29/07 |
|
|
(13,391 |
) |
|
United States Dollar |
|
|
59,392,431 |
|
|
EUR |
43,950,000 |
|
|
11/29/07 |
|
|
359,694 |
|
|
United States Dollar |
|
|
31,780,525 |
|
|
GBP |
15,990,000 |
|
|
11/29/07 |
|
|
245,988 |
|
|
United States Dollar |
|
|
148,950,318 |
|
|
JPY |
17,673,700,000 |
|
|
11/29/07 |
|
|
(2,637,232 |
) |
|
United States Dollar |
|
|
36,259,457 |
|
|
JPY |
4,394,900,000 |
|
|
11/29/07 |
|
|
124,061 |
|
|
United States Dollar |
|
|
242,481,372 |
|
|
SEK |
1,643,380,000 |
|
|
11/29/07 |
|
|
(619,497 |
) |
|
United States Dollar |
|
|
39,747,791 |
|
|
SGD |
60,045,000 |
|
|
11/29/07 |
|
|
(67,341 |
) |
|
United States Dollar |
|
|
235,387,853 |
|
|
TWD |
7,829,000,000 |
|
|
08/20/07 |
|
|
3,658,691 |
|
|
Net unrealized depreciation on forward foreign currency contracts |
|
$ |
(32,133,798 |
) |
|
Currency type abbreviations:
CHF Swiss Franc
EUR Euro
GBP Great Britain Pound
HUF Hungarian Forint
JPY Japanese Yen
SEK Swedish Krona
SGD Singapore Dollar
TWD New Taiwan Dollar
USD United States Dollar
Futures contracts
UBS Dynamic Alpha Fund had the following open futures contracts as of June 30, 2007:
|
|
Expiration dates |
|
Cost/ proceeds |
|
Value |
|
Unrealized appreciation/ (depreciation) |
|
US Treasury futures buy contracts: |
|
5 Year US Treasury Notes, 37 contracts (USD) |
|
September 2007 |
|
$ |
3,813,127 |
|
|
$ |
3,850,890 |
|
|
$ |
37,763 |
|
|
US Treasury futures sell contracts: |
|
10 Year US Treasury Notes, 322 contracts (USD) |
|
September 2007 |
|
|
33,754,656 |
|
|
|
34,036,406 |
|
|
|
(281,750 |
) |
|
Index futures buy contracts: |
|
Amsterdam Exchanges Index, 234 contracts (EUR) |
|
July 2007 |
|
|
34,096,238 |
|
|
|
34,793,464 |
|
|
|
697,226 |
|
|
Interest rate futures buy contracts: |
|
Australian 10 Year Bond, 1,434 contracts (AUD) |
|
September 2007 |
|
|
113,927,401 |
|
|
|
114,267,393 |
|
|
|
339,992 |
|
|
Canadian 10 Year Bond, 166 contracts (CAD) |
|
September 2007 |
|
|
17,355,752 |
|
|
|
17,269,298 |
|
|
|
(86,454 |
) |
|
Euro-Bund, 1,028 contracts (EUR) |
|
September 2007 |
|
|
154,625,080 |
|
|
|
154,091,636 |
|
|
|
(533,444 |
) |
|
13
UBS Dynamic Alpha FundPortfolio of investments
June 30, 2007
Futures contracts(concluded)
|
|
Expiration dates |
|
Cost/ proceeds |
|
Value |
|
Unrealized appreciation/ (depreciation) |
|
Index futures sell contracts: |
|
CAC 40 Euro Index, 2,941 contracts (EUR) |
|
July 2007 |
|
$ |
236,854,063 |
|
|
$ |
241,655,940 |
|
|
$ |
(4,801,877 |
) |
|
DAX Index, 1,087 contracts (EUR) |
|
September 2007 |
|
|
290,466,952 |
|
|
|
297,127,261 |
|
|
|
(6,660,309 |
) |
|
Dow Jones Euro STOXX 50 Index, 5,097 contracts (EUR) |
|
September 2007 |
|
|
305,658,308 |
|
|
|
311,468,840 |
|
|
|
(5,810,532 |
) |
|
FTSE 100 Index, 28 contracts (GBP) |
|
September 2007 |
|
|
3,703,588 |
|
|
|
3,732,335 |
|
|
|
(28,747 |
) |
|
FTSE/JSE Top 40 Index, 2,595 contracts (ZAR) |
|
September 2007 |
|
|
96,725,495 |
|
|
|
94,712,451 |
|
|
|
2,013,044 |
|
|
Hang Seng Index, 302 contracts (HKD) |
|
July 2007 |
|
|
42,583,855 |
|
|
|
42,243,772 |
|
|
|
340,083 |
|
|
IBEX 35 Index, 338 contracts (EUR) |
|
July 2007 |
|
|
68,178,951 |
|
|
|
67,814,775 |
|
|
|
364,176 |
|
|
NIKKEI 225 Index, 1,862 contracts (JPY) |
|
September 2007 |
|
|
273,030,333 |
|
|
|
274,630,822 |
|
|
|
(1,600,489 |
) |
|
MSCI Singapore Index, 548 contracts (SGD) |
|
July 2007 |
|
|
31,622,679 |
|
|
|
31,174,156 |
|
|
|
448,523 |
|
|
OMXS 30 Index, 5,051 contracts (SEK) |
|
July 2007 |
|
|
94,924,999 |
|
|
|
92,704,815 |
|
|
|
2,220,184 |
|
|
Russell 2000 Index, 481 contracts (USD) |
|
September 2007 |
|
|
203,988,508 |
|
|
|
202,525,050 |
|
|
|
1,463,458 |
|
|
S&P MIB Index, 223 contracts (EUR) |
|
September 2007 |
|
|
63,997,547 |
|
|
|
63,932,884 |
|
|
|
64,663 |
|
|
S&P Toronto Stock Exchange 60 Index, 1,221 contracts (CAD) |
|
September 2007 |
|
|
182,487,166 |
|
|
|
184,516,855 |
|
|
|
(2,029,689 |
) |
|
SPI 200 Index, 1,353 contracts (AUD) |
|
September 2007 |
|
|
180,292,088 |
|
|
|
180,004,494 |
|
|
|
287,594 |
|
|
S&P 500 Index, 688 contracts (USD) |
|
September 2007 |
|
|
262,446,471 |
|
|
|
260,648,800 |
|
|
|
1,797,671 |
|
|
Interest rate futures sell contracts: |
|
Japanese 10 Year Bond, 201 contracts (JPY) |
|
September 2007 |
|
|
215,124,266 |
|
|
|
215,504,649 |
|
|
|
(380,383 |
) |
|
Net unrealized depreciation on futures contracts |
|
$ |
(12,139,297 |
) |
|
The segregated aggregate market value of investments and cash collateral pledged to cover margin requirements for the open futures positions at June 30, 2007 was $661,881,001.
Currency type abbreviations:
AUD Australian Dollar
CAD Canadian Dollar
EUR Euro
GBP Great Britain Pound
HKD Hong Kong Dollar
JPY Japanese Yen
SEK Swedish Krona
SGD Singapore Dollar
USD United States Dollar
ZAR South African Rand
Options written
UBS Dynamic Alpha Fund had the following open options written as of June 30, 2007:
Call options written
|
|
Expiration date |
|
Premiums received |
|
Value |
|
Nikkei 225 Index Futures, 860 contracts strike @ JPY 19,500 |
|
September 2007 |
|
$ |
1,084,823 |
|
|
$ |
838,173 |
|
|
Currency type abbreviation:
JPY Japanese Yen
See accompanying notes to financial statements.
14
UBS Global Allocation Fund
Portfolio performance
For the 12 months ended June 30, 2007, Class A shares of UBS Global Allocation Fund (the "Fund") returned 14.93% (Class A shares returned 8.58% after the deduction of the maximum sales charge), while Class Y shares returned 15.18%. The Fund's benchmark, the GSMI Mutual Fund Index (the "Index"), returned 17.11% over the same time period. For comparison purposes, the MSCI World Free Index (net US), Russell 3000 Index and Citigroup World Government Bond Index returned 23.94%, 20.07%,and 2.86%, respectively. (Class Y shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 18; please note that these returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.)
While strong security selection and asset allocation decisions contributed to performance during the period, this was not enough to outweigh the negative impact from currency positioning.
Portfolio performance summary
What worked
Asset allocation across the world's markets was a positive for the period. The Fund's overall overweight to equities, as well as an overweight to cash versus fixed income markets, contributed positively to returns.
The Fund began the period with 46% of its portfolio in US equities and 18% in international stocks. However, our research began to show that international equities were becoming overvalued, while US equities were fairly valued, or slightly undervalued. We therefore increased the Fund's US equity exposure to 49%, and reduced its international stock exposure to 15%. (The Index weights are 40% US equities and 22% international equities.) This change represented no net change in equity exposurejust in the focus of that exposure. At period end, our net equity exposure remains above benchmark levels.
During June, we eliminated our cash overweight and increased our exposure to global fixed income markets, with the exception of Japan. We had been holding cash for some time in lieu of the full benchmark exposure to fixed income, as research indicated bonds were inferior to cash from a risk/return perspective. This positioning helped the Fund for most of the period. But when a selloff in bonds increased the attractiveness of fixed income relative to cash, we decided a change was warranted. The Fund's aggregate fixed income position is now 1% less than the benchmark.
Equity security selection was a positive contributor to performance, as well. In the US, strong stock selectionled by overweights to Amazon.com and Exelonhelped the US equity component to outperform.
Several bond sectors experienced outperformance during the period. The international bond component of the Fund outperformed its benchmark due to its defensive duration and yield curve positioning. The portfolio maintained a less-than-benchmark duration, which contributed to relative performance as global yields continued to rise.
15
UBS Global Allocation Fund
What didn't work
Our currency strategy was the largest detractor to Fund returns during the period.
In general, an overweight to lower-yielding currencies, like the Japanese yen and Swiss franc, hurt performance. We have been in a period when investors were rewarded for participating in the "carry trade"a currency strategy that looks to profit by selling low-yielding currencies, and buying high-yielding ones. However, our research indicates investors' yield-seeking behavior has caused a significant valuation distortion in favor of high-yielding currencies and, conversely, against low-yielding currencies. We expect the carry trade to unwind at some point, and we believe we have positioned the Fund to benefit
when it does.
Our underweights to the Canadian dollar, the euro, and the British pound also detracted from performance. As noted above, we continue to prefer lower-yielding currencies, as well as Asian currencies. During the period, we sold 1% of our allocation to the euro, using it to add to our position in the Japanese yen, in response to what we viewed to be an increasing valuation gap between these currencies.
Our emphasis on US equities over international equities detracted from performance.
In particular, stock selection in the auto and materials industries, as well as an underweight to energy, hurt performance. At the country level, underweights to Australia and Germany detracted from performance.
The emerging markets equity portfolio slightly underperformed the benchmark due to underweights to industrials and utilities.
In fixed income, the US high yield portfolio underperformed its benchmark due to a defensive risk posture, while a position in second-lien mortgage bonds that was negatively impacted by the subprime selloff hurt performance. While the portfolio did not hold any direct subprime mortgage-backed securities (subprime mortgages are made to borrowers unable to qualify under traditional, more stringent criteria due to a limited or blemished credit history), its allocation to second-lien mortgages (which are issued to borrowers with higher credit ratings than those to whom subprime loans are issued) hurt performance when these securities experienced markdowns.
16
UBS Global Allocation Fund
Portfolio Highlights
Fund positions as of June 30, 2007
|
|
GSMI Index |
|
Fund |
|
Over/(Under) % |
|
US Equity |
|
|
40.0 |
% |
|
|
49.0 |
% |
|
|
9.0 |
% |
|
International Equity |
|
|
22.0 |
|
|
|
15.0 |
|
|
|
(7.0 |
) |
|
Emerging Markets Equity |
|
|
3.0 |
|
|
|
4.0 |
|
|
|
1.0 |
|
|
US Bonds |
|
|
21.0 |
|
|
|
23.0 |
|
|
|
2.0 |
|
|
International Bonds |
|
|
9.0 |
|
|
|
8.0 |
|
|
|
(1.0 |
) |
|
High Yield Bonds |
|
|
3.0 |
|
|
|
1.0 |
|
|
|
(2.0 |
) |
|
Emerging Market Bonds |
|
|
2.0 |
|
|
|
0.0 |
|
|
|
(2.0 |
) |
|
Cash |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
|
This letter is intended to assist shareholders in understanding how the Fund performed during the 12 months ended June 30, 2007. The views and opinions in the letter were current as of August 15, 2007. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. Mutual funds are sold by prospectus only. You should read it carefully and consider a fund's investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be
obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/globalam-us.
17
UBS Global Allocation Fund
Average annual total return (unaudited)
|
|
|
|
1 year ended 06/30/07 |
|
5 years ended 06/30/07 |
|
10 years ended 06/30/07 |
|
Inception(1) to 06/30/07 |
|
Before deducting |
|
Class A(2) |
|
|
14.93 |
% |
|
|
11.75 |
% |
|
|
7.93 |
% |
|
|
7.93 |
% |
|
maximum sales charge |
|
Class B(3) |
|
|
13.96 |
|
|
|
10.88 |
|
|
|
N/A |
|
|
|
10.34 |
|
|
|
|
Class C(4) |
|
|
14.02 |
|
|
|
10.90 |
|
|
|
N/A |
|
|
|
10.49 |
|
|
|
|
Class Y(5) |
|
|
15.18 |
|
|
|
12.02 |
|
|
|
8.19 |
|
|
|
9.45 |
|
|
After deducting maximum |
|
Class A(2) |
|
|
8.58 |
|
|
|
10.49 |
|
|
|
7.32 |
|
|
|
7.32 |
|
|
sales charge |
|
Class B(3) |
|
|
8.96 |
|
|
|
10.61 |
|
|
|
N/A |
|
|
|
10.23 |
|
|
|
|
Class C(4) |
|
|
13.02 |
|
|
|
10.90 |
|
|
|
N/A |
|
|
|
10.49 |
|
|
Russell 3000 Index(6) |
|
|
20.07 |
|
|
|
11.53 |
|
|
|
7.62 |
|
|
|
11.35 |
|
|
MSCI World Free Index (net US)(7) |
|
|
23.94 |
|
|
|
14.34 |
|
|
|
7.30 |
|
|
|
10.06 |
|
|
Citigroup World Government Bond Index (WGBI)(8) |
|
|
2.86 |
|
|
|
6.30 |
|
|
|
5.33 |
|
|
|
5.80 |
|
|
GSMI Mutual Fund Index(9) |
|
|
17.11 |
|
|
|
11.92 |
|
|
|
7.55 |
|
|
|
9.55 |
|
|
The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2006 prospectuses were as follows: Class A1.14% and 1.14%; Class B1.95% and 1.95%; Class C1.91% and 1.91%; Class Y.88% and .88%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses.
(1) Inception date of UBS Global Allocation Fund Class A shares is 06/30/97. Inception dates of Class B and Class C shares are 12/13/01 and 11/22/01, respectively. Inception date of Class Y shares and, for purposes of this illustration, the indices, is 08/31/92.
(2) Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.
(3) Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.
(4) Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.
(5) The Fund offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.
(6) The Russell 3000 Index represents a broad US equities universe representing approximately 98% of the market. It is designed to provide a representative indication of the capitalization and return for the US equity market.
(7) The MSCI World Free Index (net US) is a broad-based securities index that represents the US and developed international equity markets in terms of capitalization and performance. It is designed to provide a representative total return for all major stock exchanges located inside and outside the United States. This benchmark has been calculated net of withholding tax from a US perspective.
(8) The Citigroup World Government Bond Index (WGBI) is a market capitalization-weighted index composed of straight (i.e., not floating rate or index-linked) government bonds with a one-year minimum maturity. The average maturity is seven years. The Index includes the 22 government bond markets of Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, the Netherlands, Norway, Poland, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.
(9) The GSMI Mutual Fund Index is an unmanaged index compiled by the Advisor, constructed currently as follows: 40% Russell 3000 Index; 22% MSCI World ex-USA (Free) Index; 21% Citigroup Broad Investment Grade Index; 9% Citigroup WGBI Non-US Index (in USD); 2% J.P. Morgan Emerging Markets Bond Index Global; 3% MSCI Emerging Markets Free Index; and 3% Merrill Lynch US High Yield Cash Pay Constrained Index. On December 1, 2003, the 40% Russell 3000 Index replaced the 40% Wilshire 5000 Index, and on June 1, 2005 the 3% Merrill Lynch US High Yield Cash Pay Constrained Index replaced the 3% Merrill Lynch US High Yield Cash Pay Index.
If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectus.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
18
UBS Global Allocation Fund
Illustration of an assumed investment of $10,000 in Class A shares (adjusted for maximum sales
charge) and $10,000,000 in Class Y shares (unaudited)
The following two charts show the growth in the value of an investment in UBS Global Allocation Fund Class A shares (adjusted for 5.50% maximum sales charge), Class Y shares, the Russell 3000 Index, the MSCI World Free Index (net US), the Citigroup World Government Bond Index (WGBI) and GSMI Mutual Fund Index, if you had invested $10,000 in Class A shares on June 30, 1997 or $10,000,000 in Class Y shares on August 31, 1992, and had reinvested all your income dividends and capital gain distributions through June 30, 2007. The performance of Class B and Class C shares will vary based upon the different inception dates, class specific expenses and sales charges. No adjustment has been made for any income taxes payable by shareholders on income dividends and capital gain distributions. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss up
on redemption.
UBS Global Allocation Fund Class A vs. Russell 3000 Index, MSCI World Free Index (net US),
Citigroup World Government Bond Index (WGBI) and GSMI Mutual Fund Index
Wealth value with dividends reinvested
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.50%.
UBS Global Allocation Fund Class Y vs. Russell 3000 Index, MSCI World Free Index (net US),
Citigroup World Government Bond Index (WGBI) and GSMI Mutual Fund Index
Wealth value with dividends reinvested
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
19
UBS Global Allocation Fund
Top ten equity holdings (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
Citigroup, Inc. |
|
|
1.7 |
% |
|
Morgan Stanley |
|
|
1.5 |
|
|
Microsoft Corp. |
|
|
1.4 |
|
|
Wells Fargo & Co. |
|
|
1.2 |
|
|
Exelon Corp. |
|
|
1.2 |
|
|
General Electric Co. |
|
|
1.2 |
|
|
Allergan, Inc. |
|
|
1.1 |
|
|
Intel Corp. |
|
|
1.0 |
|
|
Wyeth |
|
|
1.0 |
|
|
Sprint Nextel Corp. |
|
|
1.0 |
|
|
Total |
|
|
12.3 |
% |
|
Top ten fixed income holdings (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
US Treasury Notes, 4.500%, due 03/31/12 |
|
|
1.3 |
% |
|
US Treasury Notes, 4.625%, due 11/15/16 |
|
|
1.3 |
|
|
US Treasury Notes, 4.750%, due 12/31/08 |
|
|
0.7 |
|
|
US Treasury Bonds, 6.250%, due 08/15/23 |
|
|
0.6 |
|
|
US Treasury Bonds, 6.250%, due 05/15/30 |
|
|
0.6 |
|
|
Federal Home Loan Bank System, 5.500%, due 08/13/14 |
|
|
0.5 |
|
|
US Treasury Bonds, 4.750%, due 02/15/37 |
|
|
0.5 |
|
|
Deutsche Bundesrepublik, 4.500%, due 07/04/09 |
|
|
0.5 |
|
|
Deutsche Bundesrepublik, 3.750%, due 01/04/09 |
|
|
0.4 |
|
|
Republic of Italy, 5.250%, due 08/01/11 |
|
|
0.3 |
|
|
Total |
|
|
6.7 |
% |
|
Country exposure, top five (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
United States |
|
|
58.4 |
% |
|
Germany |
|
|
4.2 |
|
|
United Kingdom |
|
|
4.1 |
|
|
Japan |
|
|
3.7 |
|
|
France |
|
|
2.4 |
|
|
Total |
|
|
72.8 |
% |
|
(1) Figures represent the direct investments of the UBS Global Allocation Fund. Figures could be different if a breakdown of the underlying investment companies was included.
20
UBS Global Allocation Fund
Industry diversification (unaudited)(1)
As a percentage of net assets as of June 30, 2007
Equities US equities |
|
Aerospace & defense |
|
|
0.63 |
% |
|
Air freight & logistics |
|
|
0.72 |
|
|
Auto components |
|
|
1.34 |
|
|
Automobiles |
|
|
0.28 |
|
|
Beverages |
|
|
0.66 |
|
|
Biotechnology |
|
|
1.27 |
|
|
Building products |
|
|
0.71 |
|
|
Capital markets |
|
|
2.74 |
|
|
Chemicals |
|
|
0.21 |
|
|
Commercial banks |
|
|
2.51 |
|
|
Commercial services & supplies |
|
|
0.11 |
|
|
Communications equipment |
|
|
0.47 |
|
|
Computers & peripherals |
|
|
0.59 |
|
|
Diversified consumer services |
|
|
0.03 |
|
|
Diversified financial services |
|
|
2.44 |
|
|
Diversified telecommunication services |
|
|
0.64 |
|
|
Electric utilities |
|
|
1.77 |
|
|
Electrical equipment |
|
|
0.13 |
|
|
Energy equipment & services |
|
|
1.23 |
|
|
Food & staples retailing |
|
|
1.03 |
|
|
Health care equipment & supplies |
|
|
0.81 |
|
|
Health care providers & services |
|
|
1.36 |
|
|
Hotels, restaurants & leisure |
|
|
1.08 |
|
|
Household durables |
|
|
0.36 |
|
|
Household products |
|
|
0.07 |
|
|
Industrial conglomerates |
|
|
1.19 |
|
|
Insurance |
|
|
1.12 |
|
|
Internet & catalog retail |
|
|
0.41 |
|
|
Internet software & services |
|
|
0.92 |
|
|
IT services |
|
|
0.06 |
|
|
Machinery |
|
|
1.20 |
|
|
Media |
|
|
2.01 |
|
|
Multi-utilities |
|
|
0.74 |
|
|
Multiline retail |
|
|
0.31 |
|
|
Oil, gas & consumable fuels |
|
|
1.29 |
|
|
Pharmaceuticals |
|
|
3.81 |
|
|
Road & rail |
|
|
0.90 |
|
|
Semiconductors & semiconductor equipment |
|
|
2.61 |
|
|
Software |
|
|
3.08 |
|
|
Specialty retail |
|
|
0.99 |
|
|
Textiles, apparel & luxury goods |
|
|
0.24 |
|
|
Thrifts & mortgage finance |
|
|
0.39 |
|
|
Wireless telecommunication services |
|
|
0.98 |
|
|
Total US equities |
|
|
45.44 |
|
|
International equities |
|
Air freight & logistics |
|
|
0.09 |
|
|
Airlines |
|
|
0.24 |
|
|
Auto components |
|
|
0.26 |
|
|
Automobiles |
|
|
0.54 |
|
|
Beverages |
|
|
0.29 |
|
|
Capital markets |
|
|
0.36 |
|
|
Chemicals |
|
|
0.26 |
|
|
Commercial banks |
|
|
2.97 |
% |
|
Commercial services & supplies |
|
|
0.12 |
|
|
Communications equipment |
|
|
0.23 |
|
|
Construction & engineering |
|
|
0.04 |
|
|
Construction materials |
|
|
0.20 |
|
|
Consumer finance |
|
|
0.08 |
|
|
Diversified financial services |
|
|
0.16 |
|
|
Diversified telecommunication services |
|
|
0.56 |
|
|
Electric utilities |
|
|
0.21 |
|
|
Electronic equipment & instruments |
|
|
0.07 |
|
|
Energy equipment & services |
|
|
0.48 |
|
|
Food & staples retailing |
|
|
0.30 |
|
|
Food products |
|
|
0.22 |
|
|
Gas utilities |
|
|
0.05 |
|
|
Health care equipment & supplies |
|
|
0.17 |
|
|
Hotels, restaurants & leisure |
|
|
0.09 |
|
|
Household durables |
|
|
0.10 |
|
|
Household products |
|
|
0.10 |
|
|
Industrial conglomerates |
|
|
0.32 |
|
|
Insurance |
|
|
1.36 |
|
|
Internet & catalog retail |
|
|
0.03 |
|
|
Machinery |
|
|
0.41 |
|
|
Media |
|
|
0.25 |
|
|
Metals & mining |
|
|
0.22 |
|
|
Office electronics |
|
|
0.16 |
|
|
Oil, gas & consumable fuels |
|
|
1.10 |
|
|
Paper & forest products |
|
|
0.15 |
|
|
Pharmaceuticals |
|
|
1.04 |
|
|
Real estate management & development |
|
|
0.13 |
|
|
Road & rail |
|
|
0.26 |
|
|
Semiconductors & semiconductor equipment |
|
|
0.31 |
|
|
Software |
|
|
0.10 |
|
|
Specialty retail |
|
|
0.36 |
|
|
Textiles, apparel & luxury goods |
|
|
0.04 |
|
|
Tobacco |
|
|
0.10 |
|
|
Trading companies & distributors |
|
|
0.28 |
|
|
Wireless telecommunication services |
|
|
0.65 |
|
|
Total international equities |
|
|
15.46 |
|
|
Total equities |
|
|
60.90 |
|
|
Bonds US bonds US corporate bonds |
|
Automobiles |
|
|
0.06 |
|
|
Beverages |
|
|
0.02 |
|
|
Capital markets |
|
|
0.33 |
|
|
Chemicals |
|
|
0.02 |
|
|
Commercial banks |
|
|
0.17 |
|
|
Commercial services & supplies |
|
|
0.02 |
|
|
Consumer finance |
|
|
0.38 |
|
|
Diversified financial services |
|
|
0.13 |
|
|
Diversified telecommunication services |
|
|
0.08 |
|
|
Electric utilities |
|
|
0.04 |
|
|
Food products |
|
|
0.00 |
(2) |
|
21
UBS Global Allocation Fund
Industry diversification (unaudited)(1)
As a percentage of net assets as of June 30, 2007
Insurance |
|
|
0.01 |
% |
|
IT services |
|
|
0.01 |
|
|
Media |
|
|
0.05 |
|
|
Oil, gas & consumable fuels |
|
|
0.02 |
|
|
Pharmaceuticals |
|
|
0.01 |
|
|
Real estate investment trusts (REITs) |
|
|
0.01 |
|
|
Road & rail |
|
|
0.03 |
|
|
Wireless telecommunication services |
|
|
0.01 |
|
|
Total US corporate bonds |
|
|
1.40 |
|
|
Asset-backed securities |
|
|
0.49 |
|
|
Collateralized debt obligation |
|
|
0.13 |
|
|
Commercial mortgage-backed securities |
|
|
1.07 |
|
|
Mortgage & agency debt securities |
|
|
4.37 |
|
|
Stripped mortgage-backed securities |
|
|
0.06 |
|
|
US government obligations |
|
|
5.46 |
|
|
Total US bonds |
|
|
12.98 |
|
|
International bonds International corporate bonds |
|
Thrifts & mortgage finance |
|
|
0.07 |
|
|
Commercial banks |
|
|
0.31 |
|
|
Diversified telecommunication services |
|
|
0.01 |
|
|
Total international corporate bonds |
|
|
0.39 |
|
|
International mortgage & agency debt securities |
|
|
0.02 |
|
|
Foreign government bonds |
|
|
7.32 |
|
|
Sovereign/supranational bond |
|
|
0.10 |
|
|
Total international bonds |
|
|
7.83 |
|
|
Total bonds |
|
|
20.81 |
|
|
Investment companies |
|
iShares MSCI EAFE Index Fund |
|
|
0.08 |
% |
|
iShares Russell 1000 Growth Index Fund |
|
|
0.01 |
|
|
iShares Russell 2000 Index Fund |
|
|
0.40 |
|
|
UBS Corporate Bond Relationship Fund |
|
|
1.90 |
|
|
UBS Emerging Markets Equity Relationship Fund |
|
|
4.66 |
|
|
UBS Global ex U.S. Smaller Cap Equity Completion Relationship Fund |
|
|
0.15 |
|
|
UBS High Yield Relationship Fund |
|
|
0.88 |
|
|
UBS Small-Cap Equity Relationship Fund |
|
|
2.83 |
|
|
UBS U.S. Securitized Mortgage Relationship Fund |
|
|
6.89 |
|
|
Total investment companies |
|
|
17.80 |
|
|
Short-term investments |
|
|
0.29 |
|
|
Investment of cash collateral from securities loaned |
|
|
2.79 |
|
|
Total investments |
|
|
102.59 |
|
|
Liabilities, in excess of cash and other assets |
|
|
(2.59 |
) |
|
Net assets |
|
|
100.00 |
% |
|
(1) Figures represent the industry breakdown of direct investments of the UBS Global Allocation Fund. Figures would be different if a breakdown of the underlying investment companies' industry diversification was included.
(2) Amount represents less than 0.005%.
22
UBS Global Allocation FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities60.90% |
|
US equities45.44% |
|
Abbott Laboratories |
|
|
43,200 |
|
|
$ |
2,313,360 |
|
|
Abercrombie & Fitch Co. |
|
|
72,100 |
|
|
|
5,261,858 |
|
|
Adobe Systems, Inc.* |
|
|
140,800 |
|
|
|
5,653,120 |
|
|
Aflac, Inc. |
|
|
241,200 |
|
|
|
12,397,680 |
|
|
Allergan, Inc. |
|
|
971,600 |
|
|
|
56,003,024 |
|
|
Allstate Corp. |
|
|
311,500 |
|
|
|
19,160,365 |
|
|
Amazon.com, Inc.* |
|
|
310,200 |
|
|
|
21,220,782 |
|
|
American Electric Power Co., Inc. |
|
|
397,500 |
|
|
|
17,903,400 |
|
|
American International Group, Inc. |
|
|
71,400 |
|
|
|
5,000,142 |
|
|
Amgen, Inc.* |
|
|
125,100 |
|
|
|
6,916,779 |
|
|
Analog Devices, Inc. |
|
|
963,700 |
|
|
|
36,273,668 |
|
|
Anheuser-Busch Cos., Inc. |
|
|
278,800 |
|
|
|
14,542,208 |
|
|
Apache Corp. |
|
|
37,800 |
|
|
|
3,084,102 |
|
|
Apple, Inc.* |
|
|
78,600 |
|
|
|
9,592,344 |
|
|
AT&T, Inc. |
|
|
790,800 |
|
|
|
32,818,200 |
|
|
Automatic Data Processing, Inc. |
|
|
61,100 |
|
|
|
2,961,517 |
|
|
Baker Hughes, Inc. |
|
|
67,000 |
|
|
|
5,636,710 |
|
|
Bank of New York Co., Inc. |
|
|
120,100 |
|
|
|
4,976,944 |
|
|
Baxter International, Inc. |
|
|
159,700 |
|
|
|
8,997,498 |
|
|
BEA Systems, Inc.* |
|
|
975,300 |
|
|
|
13,351,857 |
|
|
Becton, Dickinson & Co. |
|
|
50,900 |
|
|
|
3,792,050 |
|
|
Best Buy Co., Inc. |
|
|
71,300 |
|
|
|
3,327,571 |
|
|
Blackstone Group LP* |
|
|
206,918 |
|
|
|
6,056,490 |
|
|
Boeing Co. |
|
|
30,100 |
|
|
|
2,894,416 |
|
|
BorgWarner, Inc. |
|
|
294,200 |
|
|
|
25,312,968 |
|
|
Bristol-Myers Squibb Co. |
|
|
753,300 |
|
|
|
23,774,148 |
|
|
Broadcom Corp., Class A* |
|
|
119,000 |
|
|
|
3,480,750 |
|
|
Burlington Northern Santa Fe Corp. |
|
|
545,700 |
|
|
|
46,460,898 |
|
|
C.R. Bard, Inc. |
|
|
86,800 |
|
|
|
7,172,284 |
|
|
Carnival Corp. |
|
|
650,100 |
|
|
|
31,705,377 |
|
|
Cephalon, Inc.* |
|
|
111,500 |
|
|
|
8,963,485 |
|
|
Chevron Corp. |
|
|
160,900 |
|
|
|
13,554,216 |
|
|
Chico's FAS, Inc.* |
|
|
500,600 |
|
|
|
12,184,604 |
|
|
Cisco Systems, Inc.* |
|
|
419,900 |
|
|
|
11,694,215 |
|
|
Citigroup, Inc. |
|
|
1,696,607 |
|
|
|
87,018,973 |
|
|
Citrix Systems, Inc.* |
|
|
459,300 |
|
|
|
15,464,631 |
|
|
City National Corp. |
|
|
125,900 |
|
|
|
9,579,731 |
|
|
Coach, Inc.* |
|
|
256,500 |
|
|
|
12,155,535 |
|
|
Constellation Brands, Inc., Class A* |
|
|
675,100 |
|
|
|
16,391,428 |
|
|
Costco Wholesale Corp. |
|
|
493,100 |
|
|
|
28,856,212 |
|
|
Dell, Inc.* |
|
|
732,700 |
|
|
|
20,918,585 |
|
|
Dominion Resources, Inc. |
|
|
66,500 |
|
|
|
5,739,615 |
|
|
eBay, Inc.* |
|
|
245,800 |
|
|
|
7,909,844 |
|
|
ENSCO International, Inc. |
|
|
351,700 |
|
|
|
21,457,217 |
|
|
EOG Resources, Inc. |
|
|
239,200 |
|
|
|
17,475,952 |
|
|
Exelon Corp. |
|
|
867,200 |
|
|
|
62,958,720 |
|
|
Express Scripts, Inc.* |
|
|
85,300 |
|
|
|
4,265,853 |
|
|
Exxon Mobil Corp. |
|
|
214,200 |
|
|
|
17,967,096 |
|
|
FedEx Corp. |
|
|
332,900 |
|
|
|
36,941,913 |
|
|
|
|
Shares |
|
Value |
|
US equities(continued) |
|
Fifth Third Bancorp |
|
|
793,600 |
|
|
$ |
31,561,472 |
|
|
Fortune Brands, Inc. |
|
|
223,700 |
|
|
|
18,426,169 |
|
|
Freddie Mac |
|
|
334,600 |
|
|
|
20,310,220 |
|
|
Genentech, Inc.* |
|
|
76,800 |
|
|
|
5,810,688 |
|
|
General Dynamics Corp. |
|
|
80,400 |
|
|
|
6,288,888 |
|
|
General Electric Co. |
|
|
1,603,400 |
|
|
|
61,378,152 |
|
|
Genzyme Corp.* |
|
|
552,900 |
|
|
|
35,606,760 |
|
|
Goldman Sachs Group, Inc. |
|
|
27,100 |
|
|
|
5,873,925 |
|
|
Google, Inc., Class A* |
|
|
35,800 |
|
|
|
18,737,004 |
|
|
Halliburton Co. |
|
|
666,700 |
|
|
|
23,001,150 |
|
|
Harley-Davidson, Inc. |
|
|
242,100 |
|
|
|
14,431,581 |
|
|
Hartford Financial Services Group, Inc. |
|
|
214,900 |
|
|
|
21,169,799 |
|
|
Hologic, Inc.*(1) |
|
|
34,100 |
|
|
|
1,886,071 |
|
|
Home Depot, Inc. |
|
|
725,200 |
|
|
|
28,536,620 |
|
|
Illinois Tool Works, Inc. |
|
|
744,400 |
|
|
|
40,339,036 |
|
|
Intel Corp. |
|
|
2,230,200 |
|
|
|
52,989,552 |
|
|
International Game Technology |
|
|
173,300 |
|
|
|
6,880,010 |
|
|
Intuit, Inc.* |
|
|
488,400 |
|
|
|
14,691,072 |
|
|
ITT Educational Services, Inc.* |
|
|
11,400 |
|
|
|
1,338,132 |
|
|
J. Crew Group, Inc.* |
|
|
31,400 |
|
|
|
1,698,426 |
|
|
Johnson & Johnson |
|
|
451,638 |
|
|
|
27,829,934 |
|
|
Johnson Controls, Inc. |
|
|
378,500 |
|
|
|
43,818,945 |
|
|
JPMorgan Chase & Co. |
|
|
760,600 |
|
|
|
36,851,070 |
|
|
Laboratory Corp. of America Holdings* |
|
|
67,400 |
|
|
|
5,274,724 |
|
|
Las Vegas Sands Corp.* |
|
|
78,300 |
|
|
|
5,981,337 |
|
|
Linear Technology Corp. |
|
|
438,600 |
|
|
|
15,868,548 |
|
|
Masco Corp. |
|
|
1,287,400 |
|
|
|
36,652,278 |
|
|
McAfee, Inc.* |
|
|
54,600 |
|
|
|
1,921,920 |
|
|
McGraw-Hill Cos., Inc. |
|
|
313,600 |
|
|
|
21,349,888 |
|
|
Medco Health Solutions, Inc.* |
|
|
350,000 |
|
|
|
27,296,500 |
|
|
Medtronic, Inc. |
|
|
383,000 |
|
|
|
19,862,380 |
|
|
Mellon Financial Corp. |
|
|
884,700 |
|
|
|
38,926,800 |
|
|
Merck & Co., Inc. |
|
|
704,000 |
|
|
|
35,059,200 |
|
|
Merrill Lynch & Co., Inc. |
|
|
72,500 |
|
|
|
6,059,550 |
|
|
Microchip Technology, Inc. |
|
|
61,300 |
|
|
|
2,270,552 |
|
|
Microsoft Corp. |
|
|
2,484,000 |
|
|
|
73,203,480 |
|
|
Millennium Pharmaceuticals, Inc.* |
|
|
790,300 |
|
|
|
8,353,471 |
|
|
Monster Worldwide, Inc.* |
|
|
138,500 |
|
|
|
5,692,350 |
|
|
Moody's Corp. |
|
|
27,400 |
|
|
|
1,704,280 |
|
|
Morgan Stanley |
|
|
947,550 |
|
|
|
79,480,494 |
|
|
News Corp., Class A |
|
|
1,018,600 |
|
|
|
21,604,506 |
|
|
NiSource, Inc. |
|
|
474,200 |
|
|
|
9,820,682 |
|
|
Northeast Utilities |
|
|
59,100 |
|
|
|
1,676,076 |
|
|
Northrop Grumman Corp. |
|
|
127,200 |
|
|
|
9,905,064 |
|
|
Omnicom Group, Inc. |
|
|
450,600 |
|
|
|
23,845,752 |
|
|
PACCAR, Inc. |
|
|
249,300 |
|
|
|
21,699,072 |
|
|
Peabody Energy Corp. |
|
|
32,000 |
|
|
|
1,548,160 |
|
|
Pepco Holdings, Inc. |
|
|
310,700 |
|
|
|
8,761,740 |
|
|
PepsiCo, Inc. |
|
|
49,600 |
|
|
|
3,216,560 |
|
|
PNC Financial Services Group, Inc. |
|
|
346,100 |
|
|
|
24,773,838 |
|
|
Praxair, Inc. |
|
|
152,700 |
|
|
|
10,992,873 |
|
|
23
UBS Global Allocation FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities(continued) |
|
US equities(concluded) |
|
Precision Castparts Corp. |
|
|
16,353 |
|
|
$ |
1,984,600 |
|
|
Procter & Gamble Co. |
|
|
62,000 |
|
|
|
3,793,780 |
|
|
QUALCOMM, Inc. |
|
|
225,500 |
|
|
|
9,784,445 |
|
|
Quest Diagnostics, Inc. |
|
|
146,100 |
|
|
|
7,546,065 |
|
|
R.H. Donnelley Corp.* |
|
|
261,292 |
|
|
|
19,800,708 |
|
|
Range Resources Corp. |
|
|
77,000 |
|
|
|
2,880,570 |
|
|
Red Hat, Inc.* |
|
|
291,900 |
|
|
|
6,503,532 |
|
|
Research In Motion Ltd.* |
|
|
13,000 |
|
|
|
2,599,870 |
|
|
Rockwell Automation, Inc. |
|
|
92,700 |
|
|
|
6,437,088 |
|
|
Schlumberger Ltd. |
|
|
93,700 |
|
|
|
7,958,878 |
|
|
Sempra Energy |
|
|
377,100 |
|
|
|
22,335,633 |
|
|
Southwestern Energy Co.* |
|
|
74,300 |
|
|
|
3,306,350 |
|
|
Sprint Nextel Corp. |
|
|
2,434,752 |
|
|
|
50,423,714 |
|
|
Starbucks Corp.* |
|
|
143,900 |
|
|
|
3,775,936 |
|
|
Symantec Corp.* |
|
|
1,392,872 |
|
|
|
28,136,014 |
|
|
SYSCO Corp. |
|
|
739,300 |
|
|
|
24,389,507 |
|
|
Target Corp. |
|
|
254,800 |
|
|
|
16,205,280 |
|
|
Texas Instruments, Inc. |
|
|
91,100 |
|
|
|
3,428,093 |
|
|
United Technologies Corp. |
|
|
157,300 |
|
|
|
11,157,289 |
|
|
UnitedHealth Group, Inc. |
|
|
506,700 |
|
|
|
25,912,638 |
|
|
Viacom, Inc., Class B* |
|
|
413,200 |
|
|
|
17,201,516 |
|
|
Weatherford International Ltd.* |
|
|
95,300 |
|
|
|
5,264,372 |
|
|
Wells Fargo & Co. |
|
|
1,805,700 |
|
|
|
63,506,469 |
|
|
Wyeth |
|
|
899,300 |
|
|
|
51,565,862 |
|
|
Wynn Resorts Ltd. |
|
|
80,700 |
|
|
|
7,237,983 |
|
|
Xilinx, Inc. |
|
|
763,900 |
|
|
|
20,449,603 |
|
|
XTO Energy, Inc. |
|
|
115,400 |
|
|
|
6,935,540 |
|
|
Yahoo!, Inc.* |
|
|
763,500 |
|
|
|
20,713,755 |
|
|
Total US equities (cost $2,053,463,912) |
|
|
2,343,032,176 |
|
|
International equities15.46% |
|
Australia0.56% |
|
National Australia Bank Ltd. |
|
|
187,207 |
|
|
|
6,510,452 |
|
|
Qantas Airways Ltd. |
|
|
2,577,233 |
|
|
|
12,235,877 |
|
|
QBE Insurance Group Ltd. |
|
|
379,357 |
|
|
|
10,034,509 |
|
|
|
|
|
28,780,838 |
|
|
Austria0.07% |
|
Telekom Austria AG |
|
|
148,997 |
|
|
|
3,730,710 |
|
|
Belgium0.18% |
|
KBC Groep NV |
|
|
70,207 |
|
|
|
9,504,067 |
|
|
Canada0.63% |
|
Alcan, Inc. |
|
|
73,220 |
|
|
|
5,973,075 |
|
|
Canadian Pacific Railway Ltd.(1) |
|
|
122,000 |
|
|
|
8,425,759 |
|
|
Cott Corp.*(1) |
|
|
102,900 |
|
|
|
1,493,390 |
|
|
Magna International, Inc., Class A |
|
|
31,900 |
|
|
|
2,919,737 |
|
|
Manulife Financial Corp.(1) |
|
|
106,300 |
|
|
|
3,975,585 |
|
|
Toronto-Dominion Bank(1) |
|
|
141,000 |
|
|
|
9,643,990 |
|
|
|
|
|
32,431,536 |
|
|
Cayman Islands0.48% |
|
GlobalSantaFe Corp. |
|
|
342,400 |
|
|
|
24,738,400 |
|
|
|
|
Shares |
|
Value |
|
Denmark0.09% |
|
Novo-Nordisk A/S, Class B |
|
|
40,450 |
|
|
$ |
4,414,011 |
|
|
Finland0.26% |
|
Nokia Oyj |
|
|
197,447 |
|
|
|
5,561,153 |
|
|
Stora Enso Oyj, Class R |
|
|
420,280 |
|
|
|
7,952,215 |
|
|
|
|
|
13,513,368 |
|
|
France1.14% |
|
AXA SA(1) |
|
|
323,228 |
|
|
|
14,003,509 |
|
|
Compagnie Generale des Etablissements Michelin, Class B |
|
|
31,769 |
|
|
|
4,465,317 |
|
|
France Telecom SA(1) |
|
|
539,991 |
|
|
|
14,909,357 |
|
|
Sanofi-Aventis(1) |
|
|
31,916 |
|
|
|
2,596,122 |
|
|
Total SA(1) |
|
|
281,301 |
|
|
|
22,942,599 |
|
|
|
|
|
58,916,904 |
|
|
Germany1.49% |
|
Allianz SE |
|
|
79,714 |
|
|
|
18,728,437 |
|
|
DaimlerChrysler AG |
|
|
63,338 |
|
|
|
5,879,865 |
|
|
Deutsche Postbank AG |
|
|
42,057 |
|
|
|
3,703,918 |
|
|
E.ON AG |
|
|
36,868 |
|
|
|
6,201,946 |
|
|
Henkel KGaA, Preference shares(1) |
|
|
106,740 |
|
|
|
5,647,225 |
|
|
IKB Deutsche Industriebank AG |
|
|
65,152 |
|
|
|
2,385,268 |
|
|
MAN AG |
|
|
34,010 |
|
|
|
4,914,252 |
|
|
Metro AG |
|
|
59,400 |
|
|
|
4,942,680 |
|
|
Muenchener Rueckversicherungs- Gesellschaft AG |
|
|
12,209 |
|
|
|
2,250,440 |
|
|
SAP AG(1) |
|
|
110,354 |
|
|
|
5,686,083 |
|
|
Siemens AG |
|
|
113,229 |
|
|
|
16,331,830 |
|
|
|
|
|
76,671,944 |
|
|
Greece0.12% |
|
Alpha Bank AE |
|
|
105,877 |
|
|
|
3,338,872 |
|
|
National Bank of Greece SA |
|
|
51,094 |
|
|
|
2,932,095 |
|
|
|
|
|
6,270,967 |
|
|
Hong Kong0.19% |
|
Esprit Holdings Ltd. |
|
|
381,500 |
|
|
|
4,839,983 |
|
|
Sun Hung Kai Properties Ltd. |
|
|
279,000 |
|
|
|
3,357,620 |
|
|
Yue Yuen Industrial Holdings Ltd.(1) |
|
|
589,500 |
|
|
|
1,828,240 |
|
|
|
|
|
10,025,843 |
|
|
Ireland0.37% |
|
Bank of Ireland |
|
|
420,625 |
|
|
|
8,505,266 |
|
|
CRH PLC |
|
|
112,295 |
|
|
|
5,567,235 |
|
|
Depfa Bank PLC |
|
|
232,741 |
|
|
|
4,126,544 |
|
|
Irish Life & Permanent PLC |
|
|
29,361 |
|
|
|
742,715 |
|
|
|
|
|
18,941,760 |
|
|
24
UBS Global Allocation FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities(concluded) |
|
International equities(concluded) |
|
Italy0.50% |
|
Fiat SpA(1) |
|
|
146,614 |
|
|
$ |
4,379,454 |
|
|
Intesa Sanpaolo SpA |
|
|
2,048,051 |
|
|
|
15,328,799 |
|
|
UniCredito Italiano SpA |
|
|
681,697 |
|
|
|
6,117,122 |
|
|
|
|
|
25,825,375 |
|
|
Japan2.69% |
|
Aeon Co., Ltd. |
|
|
192,200 |
|
|
|
3,574,725 |
|
|
Aiful Corp.(1) |
|
|
71,250 |
|
|
|
2,048,528 |
|
|
Asahi Breweries Ltd.(1) |
|
|
299,000 |
|
|
|
4,640,723 |
|
|
Bank of Yokohama Ltd. |
|
|
484,000 |
|
|
|
3,396,353 |
|
|
Bridgestone Corp.(1) |
|
|
193,400 |
|
|
|
4,146,810 |
|
|
Canon, Inc.(1) |
|
|
141,300 |
|
|
|
8,297,251 |
|
|
East Japan Railway Co. |
|
|
629 |
|
|
|
4,853,198 |
|
|
Fast Retailing Co., Ltd. |
|
|
26,900 |
|
|
|
1,916,045 |
|
|
Funai Electric Co., Ltd. |
|
|
24,300 |
|
|
|
1,419,021 |
|
|
Honda Motor Co., Ltd. |
|
|
222,800 |
|
|
|
8,142,944 |
|
|
Hoya Corp. |
|
|
101,700 |
|
|
|
3,378,298 |
|
|
Japan Tobacco, Inc. |
|
|
1,061 |
|
|
|
5,239,293 |
|
|
KDDI Corp. |
|
|
386 |
|
|
|
2,862,278 |
|
|
Kubota Corp. |
|
|
457,000 |
|
|
|
3,711,675 |
|
|
Mitsubishi Corp. |
|
|
288,500 |
|
|
|
7,568,365 |
|
|
Mitsui Fudosan Co., Ltd. |
|
|
125,000 |
|
|
|
3,512,690 |
|
|
Mitsui Sumitomo Insurance Co., Ltd. |
|
|
526,000 |
|
|
|
6,758,432 |
|
|
Nitto Denko Corp. |
|
|
107,500 |
|
|
|
5,430,660 |
|
|
NOK Corp. |
|
|
98,400 |
|
|
|
2,077,888 |
|
|
Nomura Holdings, Inc. |
|
|
176,700 |
|
|
|
3,444,305 |
|
|
NTN Corp. |
|
|
288,000 |
|
|
|
2,486,449 |
|
|
NTT DoCoMo, Inc. |
|
|
2,645 |
|
|
|
4,189,036 |
|
|
Rohm Co., Ltd. |
|
|
58,000 |
|
|
|
5,158,173 |
|
|
Shin-Etsu Chemical Co., Ltd. |
|
|
75,500 |
|
|
|
5,402,274 |
|
|
SMC Corp. |
|
|
20,400 |
|
|
|
2,717,239 |
|
|
Sompo Japan Insurance, Inc. |
|
|
279,000 |
|
|
|
3,419,379 |
|
|
Sumitomo Mitsui Financial Group, Inc. |
|
|
891 |
|
|
|
8,322,030 |
|
|
Sumitomo Trust & Banking Co., Ltd. |
|
|
337,000 |
|
|
|
3,216,041 |
|
|
Takefuji Corp. |
|
|
58,680 |
|
|
|
1,973,078 |
|
|
Tokyo Gas Co., Ltd. |
|
|
588,000 |
|
|
|
2,788,971 |
|
|
Toyota Motor Corp. |
|
|
145,600 |
|
|
|
9,223,797 |
|
|
Yamada Denki Co., Ltd. |
|
|
34,560 |
|
|
|
3,615,292 |
|
|
|
|
|
138,931,241 |
|
|
Netherlands1.16% |
|
ABN AMRO Holding NV(1) |
|
|
450,467 |
|
|
|
20,759,759 |
|
|
ASML Holding NV* |
|
|
229,322 |
|
|
|
6,362,705 |
|
|
ING Groep NV CVA |
|
|
185,458 |
|
|
|
8,230,557 |
|
|
Koninklijke Philips Electronics NV |
|
|
81,716 |
|
|
|
3,490,489 |
|
|
Reed Elsevier NV |
|
|
263,754 |
|
|
|
5,047,667 |
|
|
Royal KPN NV |
|
|
402,474 |
|
|
|
6,711,054 |
|
|
STMicroelectronics NV |
|
|
218,931 |
|
|
|
4,252,080 |
|
|
TNT NV |
|
|
107,936 |
|
|
|
4,883,654 |
|
|
|
|
|
59,737,965 |
|
|
|
|
Shares |
|
Value |
|
Norway0.22% |
|
Statoil ASA(1) |
|
|
246,600 |
|
|
$ |
7,673,645 |
|
|
Telenor ASA* |
|
|
182,800 |
|
|
|
3,588,143 |
|
|
|
|
|
11,261,788 |
|
|
Spain0.34% |
|
Banco Santander Central Hispano SA |
|
|
935,557 |
|
|
|
17,334,684 |
|
|
Sweden0.26% |
|
Sandvik AB |
|
|
356,600 |
|
|
|
7,247,543 |
|
|
Telefonaktiebolaget LM Ericsson, Class B |
|
|
1,585,000 |
|
|
|
6,363,917 |
|
|
|
|
|
13,611,460 |
|
|
Switzerland1.48% |
|
Alcon, Inc. |
|
|
40,500 |
|
|
|
5,463,855 |
|
|
Clariant AG* |
|
|
142,649 |
|
|
|
2,323,958 |
|
|
Credit Suisse Group |
|
|
213,021 |
|
|
|
15,233,225 |
|
|
Holcim Ltd. |
|
|
45,664 |
|
|
|
4,964,535 |
|
|
Nestle SA |
|
|
18,975 |
|
|
|
7,238,928 |
|
|
Novartis AG |
|
|
306,976 |
|
|
|
17,340,437 |
|
|
Roche Holding AG |
|
|
112,762 |
|
|
|
20,069,143 |
|
|
Straumann Holding AG(1) |
|
|
12,094 |
|
|
|
3,405,924 |
|
|
|
|
|
76,040,005 |
|
|
United Kingdom3.23% |
|
AstraZeneca PLC |
|
|
97,901 |
|
|
|
5,274,644 |
|
|
Balfour Beatty PLC |
|
|
231,722 |
|
|
|
2,061,372 |
|
|
Barclays PLC |
|
|
1,046,980 |
|
|
|
14,632,986 |
|
|
BP PLC |
|
|
2,172,371 |
|
|
|
26,304,899 |
|
|
British Sky Broadcasting Group PLC |
|
|
326,063 |
|
|
|
4,190,509 |
|
|
Cadbury Schweppes PLC |
|
|
297,200 |
|
|
|
4,058,290 |
|
|
Carnival PLC |
|
|
95,182 |
|
|
|
4,558,569 |
|
|
Diageo PLC |
|
|
420,331 |
|
|
|
8,752,971 |
|
|
Experian Group Ltd. |
|
|
362,363 |
|
|
|
4,580,627 |
|
|
GlaxoSmithKline PLC |
|
|
140,953 |
|
|
|
3,693,773 |
|
|
Home Retail Group PLC |
|
|
151,479 |
|
|
|
1,396,209 |
|
|
Kesa Electricals PLC |
|
|
502,076 |
|
|
|
3,173,369 |
|
|
Kingfisher PLC |
|
|
1,092,852 |
|
|
|
4,970,670 |
|
|
Prudential PLC |
|
|
713,725 |
|
|
|
10,233,270 |
|
|
Rentokil Initial PLC |
|
|
501,011 |
|
|
|
1,614,759 |
|
|
Rio Tinto PLC |
|
|
66,504 |
|
|
|
5,110,831 |
|
|
Royal Bank of Scotland Group PLC |
|
|
1,045,754 |
|
|
|
13,292,865 |
|
|
Scottish & Southern Energy PLC |
|
|
159,417 |
|
|
|
4,638,615 |
|
|
Tesco PLC |
|
|
818,108 |
|
|
|
6,875,297 |
|
|
Vodafone Group PLC |
|
|
7,864,687 |
|
|
|
26,500,785 |
|
|
Wolseley PLC |
|
|
292,508 |
|
|
|
7,060,371 |
|
|
WPP Group PLC |
|
|
238,238 |
|
|
|
3,580,867 |
|
|
|
|
|
166,556,548 |
|
|
Total international equities (cost $627,137,598) |
|
|
797,239,414 |
|
|
Total equities (cost $2,680,601,510) |
|
|
3,140,271,590 |
|
|
25
UBS Global Allocation FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds20.81% |
|
US bonds12.98% |
|
US corporate bonds1.40% |
|
AT&T Corp., 8.000%, due 11/15/31 |
|
$ |
450,000 |
|
|
$ |
534,861 |
|
|
AT&T, Inc., 6.450%, due 06/15/34 |
|
|
540,000 |
|
|
|
533,651 |
|
|
AvalonBay Communities, Inc., 7.500%, due 08/01/09 |
|
|
275,000 |
|
|
|
286,569 |
|
|
Avon Products, Inc., 7.150%, due 11/15/09 |
|
|
195,000 |
|
|
|
202,200 |
|
|
Bank of America Corp., 5.420%, due 03/15/17 |
|
|
2,000,000 |
|
|
|
1,917,328 |
|
|
BellSouth Corp., 6.550%, due 06/15/34 |
|
|
675,000 |
|
|
|
673,863 |
|
|
Burlington Northern Santa Fe Corp., 7.082%, due 05/13/29 |
|
|
660,000 |
|
|
|
702,017 |
|
|
Capital One Financial Corp., 5.500%, due 06/01/15 |
|
|
685,000 |
|
|
|
661,206 |
|
|
Citigroup, Inc., 5.000%, due 09/15/14 |
|
|
1,275,000 |
|
|
|
1,212,859 |
|
|
5.500%, due 11/18/15 |
|
GBP |
1,520,000 |
|
|
|
2,909,793 |
|
|
5.625%, due 08/27/12 |
|
$ |
3,775,000 |
|
|
|
3,775,804 |
|
|
Comcast Cable Communications LLC, 6.750%, due 01/30/11 |
|
|
2,250,000 |
|
|
|
2,328,876 |
|
|
Computer Sciences Corp., 3.500%, due 04/15/08 |
|
|
325,000 |
|
|
|
319,953 |
|
|
ConAgra Foods, Inc., 5.819%, due 06/15/17 |
|
|
1,000 |
|
|
|
973 |
|
|
Coors Brewing Co., 6.375%, due 05/15/12 |
|
|
925,000 |
|
|
|
947,168 |
|
|
DaimlerChrysler N.A. Holding Corp., 4.050%, due 06/04/08 |
|
|
3,325,000 |
|
|
|
3,278,354 |
|
|
Devon Financing Corp. ULC, 6.875%, due 09/30/11 |
|
|
1,050,000 |
|
|
|
1,096,132 |
|
|
Dominion Resources, Inc., Series B, 5.950%, due 06/15/35 |
|
|
520,000 |
|
|
|
487,588 |
|
|
Erac USA Finance Co., 8.000%, due 01/15/11(2) |
|
|
700,000 |
|
|
|
747,049 |
|
|
Exelon Generation Co. LLC, 5.350%, due 01/15/14 |
|
|
1,000,000 |
|
|
|
958,271 |
|
|
Ford Motor Credit Co. LLC, 5.800%, due 01/12/09 |
|
|
12,750,000 |
|
|
|
12,480,363 |
|
|
General Electric Capital Corp., 6.000%, due 06/15/12 |
|
|
5,325,000 |
|
|
|
5,419,971 |
|
|
6.750%, due 03/15/32 |
|
|
1,250,000 |
|
|
|
1,356,210 |
|
|
GMAC LLC, 6.875%, due 09/15/11 |
|
|
2,170,000 |
|
|
|
2,134,529 |
|
|
Goldman Sachs Group, Inc., 6.875%, due 01/15/11 |
|
|
3,425,000 |
|
|
|
3,562,538 |
|
|
HSBC Bank USA N.A., 5.625%, due 08/15/35 |
|
|
1,355,000 |
|
|
|
1,245,092 |
|
|
|
|
Face amount |
|
Value |
|
US corporate bonds(concluded) |
|
HSBC Finance Corp., 6.750%, due 05/15/11 |
|
$ |
1,925,000 |
|
|
$ |
1,998,202 |
|
|
ICI Wilmington, Inc., 4.375%, due 12/01/08 |
|
|
600,000 |
|
|
|
589,891 |
|
|
International Lease Finance Corp., 3.500%, due 04/01/09 |
|
|
1,775,000 |
|
|
|
1,719,372 |
|
|
John Deere Capital Corp., 7.000%, due 03/15/12 |
|
|
700,000 |
|
|
|
740,103 |
|
|
JPMorgan Chase & Co., 6.750%, due 02/01/11 |
|
|
2,000,000 |
|
|
|
2,077,916 |
|
|
MBNA Corp., 7.500%, due 03/15/12 |
|
|
550,000 |
|
|
|
592,420 |
|
|
Metlife, Inc., 5.000%, due 11/24/13 |
|
|
700,000 |
|
|
|
672,999 |
|
|
Morgan Stanley, 6.750%, due 04/15/11 |
|
|
3,475,000 |
|
|
|
3,602,970 |
|
|
New Cingular Wireless Services, Inc., 8.750%, due 03/01/31 |
|
|
375,000 |
|
|
|
467,483 |
|
|
PPL Energy Supply LLC, Series A, 6.400%, due 11/01/11 |
|
|
825,000 |
|
|
|
837,938 |
|
|
Sprint Capital Corp., 8.750%, due 03/15/32 |
|
|
1,375,000 |
|
|
|
1,544,304 |
|
|
US Bank N.A., 6.375%, due 08/01/11 |
|
|
625,000 |
|
|
|
643,845 |
|
|
Verizon New York, Inc., Series B, 7.375%, due 04/01/32 |
|
|
975,000 |
|
|
|
1,025,491 |
|
|
Wachovia Bank N.A., 7.800%, due 08/18/10 |
|
|
1,550,000 |
|
|
|
1,645,297 |
|
|
Waste Management, Inc., 7.375%, due 08/01/10 |
|
|
650,000 |
|
|
|
681,010 |
|
|
Wells Fargo Bank N.A., 6.450%, due 02/01/11 |
|
|
2,625,000 |
|
|
|
2,706,622 |
|
|
Wyeth, 5.500%, due 03/15/13 |
|
|
750,000 |
|
|
|
742,159 |
|
|
Total US corporate bonds (cost $73,908,509) |
|
|
72,061,240 |
|
|
Asset-backed securities0.49% |
|
Conseco Finance, Series 01-D, Class M2, 7.070%, due 11/15/32(3) |
|
|
1,163,349 |
|
|
|
1,010,946 |
|
|
Countrywide Asset-Backed Certificates, Series 04-SD1, Class A1, 5.660%, due 06/25/33(2),(3) |
|
|
183,691 |
|
|
|
184,205 |
|
|
Fieldstone Mortgage Investment Corp., Series 06-S1, Class A, 5.540%, due 01/25/37(2),(3) |
|
|
2,839,486 |
|
|
|
2,805,149 |
|
|
26
UBS Global Allocation FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
US bonds(continued) |
|
Asset-backed securities(concluded) |
|
Green Tree Financial Corp., Series 96-4, Class A6, 7.400%, due 06/15/27 |
|
$ |
236,126 |
|
|
$ |
242,981 |
|
|
GSAMP Trust, Series 06-S5, Class A2, 5.658%, due 09/25/36(4),(5) |
|
|
2,000,000 |
|
|
|
1,600,000 |
|
|
Home Equity Mortgage Trust, Series 06-3, Class A2, 5.594%, due 09/25/36(3) |
|
|
1,250,000 |
|
|
|
1,241,716 |
|
|
Series 06-4, Class A2, 5.730%, due 11/25/36(5) |
|
|
3,000,000 |
|
|
|
2,987,210 |
|
|
Providian Gateway Master Trust, Series 04-EA, Class C, 5.900%, due 11/15/11(2),(3) |
|
|
3,000,000 |
|
|
|
3,005,157 |
|
|
Rutland Rated Investments, Series DRYD-1A, Class A6F, 6.957%, due 06/20/13(2) |
|
|
1,645,000 |
|
|
|
1,653,738 |
|
|
Saco I Trust, Series 06-5, Class 2A1, 5.470%, due 05/25/36(3) |
|
|
3,135,041 |
|
|
|
3,134,454 |
|
|
Structured Asset Securities Corp., Series 03-AL2, Class A, 3.357%, due 01/25/31(2) |
|
|
182,582 |
|
|
|
166,286 |
|
|
Series 02-23XS, Class A7, 6.080%, due 11/25/32(5) |
|
|
5,170,000 |
|
|
|
5,120,595 |
|
|
Terwin Mortgage Trust, Series 06-1, Class 2M2, 4.250%, due 01/25/37(2),(5) |
|
|
2,500,000 |
|
|
|
2,075,000 |
|
|
Total asset-backed securities (cost $26,101,533) |
|
|
25,227,437 |
|
|
Collateralized debt obligation0.13% |
|
G-Force CDO Ltd., Series 06-1A, Class A3, 5.600%, due 09/27/46(2),(4) (cost $6,900,093) |
|
|
7,000,000 |
|
|
|
6,808,725 |
|
|
Commercial mortgage-backed securities1.07% |
|
Asset Securitization Corp., Series 95-MD4, Class A3, 7.384%, due 08/13/29(3) |
|
|
3,250,000 |
|
|
|
3,257,534 |
|
|
Series 95-MD4, Class A5, 7.384%, due 08/13/29(3) |
|
|
5,000,000 |
|
|
|
5,047,250 |
|
|
Series 97-D4, Class B1, 7.525%, due 04/14/29 |
|
|
5,000,000 |
|
|
|
5,382,084 |
|
|
Banc of America Commercial Mortgage, Inc., Series 06-6, Class A4, 5.356%, due 10/10/45 |
|
|
4,550,000 |
|
|
|
4,389,132 |
|
|
DLJ Commercial Mortgage Corp., Series 00-CKP1, Class A1B, 7.180%, due 11/10/33 |
|
|
1,177,675 |
|
|
|
1,225,683 |
|
|
|
|
Face amount |
|
Value |
|
Commercial mortgage-backed securities(concluded) |
|
First Union Commercial Mortgage Securities, Inc., Series 97-C2, Class A3, 6.650%, due 11/18/29 |
|
$ |
257,584 |
|
|
$ |
257,374 |
|
|
GS Mortgage Securities Corp. II, Series 06-RR2, Class A1, 5.812%, due 06/23/46(2),(3) |
|
|
9,025,000 |
|
|
|
8,850,637 |
|
|
Series 98-GLII, Class A1, 6.312%, due 04/13/31 |
|
|
311,101 |
|
|
|
311,038 |
|
|
Host Marriott Pool Trust, Series 99-HMTA, Class A, 6.980%, due 08/03/15(2) |
|
|
148,972 |
|
|
|
151,386 |
|
|
Series 99-HMTA, Class C, 7.730%, due 08/03/15(2) |
|
|
750,000 |
|
|
|
781,591 |
|
|
Series 99-HMTA, Class D, 7.970%, due 08/03/15(2) |
|
|
5,300,000 |
|
|
|
5,545,475 |
|
|
Series 99-HMTA, Class E, 8.070%, due 08/03/15(2) |
|
|
460,000 |
|
|
|
482,109 |
|
|
JPMorgan Commercial Mortgage Finance Corp., Series 99-C8, Class A2, 7.400%, due 07/15/31 |
|
|
837,707 |
|
|
|
858,193 |
|
|
Mach One Trust Commercial Mortgage-Backed, Series 04-1A, Class A1, 3.890%, due 05/28/40(2) |
|
|
1,009,703 |
|
|
|
999,931 |
|
|
Merrill Lynch Mortgage Trust, Series 05-LC1, Class A4, 5.291%, due 01/12/44(3) |
|
|
9,625,000 |
|
|
|
9,284,190 |
|
|
Morgan Stanley Capital I, Series 03-T11, Class A4, 5.150%, due 06/13/41 |
|
|
5,065,000 |
|
|
|
4,918,412 |
|
|
Nomura Asset Securities Corp., Series 96-MD5, Class A4, 8.208%, due 04/13/39(3) |
|
|
88,216 |
|
|
|
88,345 |
|
|
PNC Mortgage Acceptance Corp., Series 00-C1, Class A2, 7.610%, due 02/15/10 |
|
|
1,666,535 |
|
|
|
1,728,007 |
|
|
Prudential Mortgage Capital Funding LLC, Series 01-ROCK, Class A2, 6.605%, due 05/10/34 |
|
|
1,055,000 |
|
|
|
1,088,838 |
|
|
Salomon Brothers Mortgage Securities VII, Inc., Series 00-C3, Class A2, 6.592%, due 12/18/33 |
|
|
540,000 |
|
|
|
553,864 |
|
|
Total commercial mortgage-backed securities (cost $57,194,849) |
|
|
55,201,073 |
|
|
Mortgage & agency debt securities4.37% |
|
Bear Stearns Alt-A Trust, Series 05-3, Class B1, 5.300%, due 04/25/35(3) |
|
|
7,368,175 |
|
|
|
7,295,691 |
|
|
27
UBS Global Allocation FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
US bonds(continued) |
|
Mortgage & agency debt securities(continued) |
|
Countrywide Alternative Loan Trust, Series 05-J2, Class 2A1, 7.500%, due 12/25/34 |
|
$ |
1,250,730 |
|
|
$ |
1,253,632 |
|
|
Countrywide Home Loan Mortgage Pass-Through Trust, Series 03-20, Class 3A2, 4.750%, due 07/25/18 |
|
|
207,348 |
|
|
|
206,074 |
|
|
Series 06-HYB1, Class 1A1, 5.363%, due 03/20/36(3) |
|
|
5,204,846 |
|
|
|
5,155,698 |
|
|
Series 06-16, Class M1, 6.250%, due 11/25/36(3) |
|
|
2,983,632 |
|
|
|
2,949,322 |
|
|
CS First Boston Mortgage Securities Corp., Series 05-9, Class 3A1, 6.000%, due 10/25/35 |
|
|
3,818,275 |
|
|
|
3,794,521 |
|
|
Series 05-10, Class 10A3, 6.000%, due 11/25/35 |
|
|
1,015,966 |
|
|
|
1,017,690 |
|
|
Series 03-8, Class 5A1, 6.500%, due 04/25/33 |
|
|
329,612 |
|
|
|
329,821 |
|
|
Series 05-12, Class 1A1, 6.500%, due 01/25/36 |
|
|
5,508,339 |
|
|
|
5,551,779 |
|
|
Series 03-27, Class 9A1, 7.000%, due 11/25/33 |
|
|
187,978 |
|
|
|
190,887 |
|
|
Series 05-11, Class 4A1, 7.000%, due 12/25/35 |
|
|
3,615,730 |
|
|
|
3,670,735 |
|
|
Series 01-26, Class 5A1, 7.307%, due 11/25/31(3) |
|
|
61,185 |
|
|
|
60,996 |
|
|
Series 02-10, Class 2A1, 7.500%, due 05/25/32 |
|
|
12,692 |
|
|
|
12,746 |
|
|
Federal Home Loan Bank System, 5.500%, due 08/13/14 |
|
|
26,855,000 |
|
|
|
27,039,010 |
|
|
Federal Home Loan Mortgage Corp. Gold Pools, # E93969, 5.500%, due 01/01/18 |
|
|
89,502 |
|
|
|
88,473 |
|
|
# E01345, 5.500%, due 04/01/18 |
|
|
303,422 |
|
|
|
299,863 |
|
|
# B11810, 5.500%, due 01/01/19 |
|
|
1,455,688 |
|
|
|
1,438,611 |
|
|
# D96274, 5.500%, due 09/01/23 |
|
|
2,398,952 |
|
|
|
2,346,050 |
|
|
# C90798, 5.500%, due 02/01/24 |
|
|
4,258,553 |
|
|
|
4,160,729 |
|
|
# G11429, 6.000%, due 12/01/17 |
|
|
222,503 |
|
|
|
223,773 |
|
|
# C56030, 6.000%, due 03/01/31 |
|
|
384,743 |
|
|
|
384,015 |
|
|
# A24844, 6.000%, due 07/01/34 |
|
|
1,209,603 |
|
|
|
1,202,589 |
|
|
# E01127, 6.500%, due 02/01/17 |
|
|
90,753 |
|
|
|
92,708 |
|
|
|
|
Face amount |
|
Value |
|
Mortgage & agency debt securities(continued) |
|
# E92004, 6.500%, due 10/01/17 |
|
$ |
498,633 |
|
|
$ |
508,928 |
|
|
# C20606, 6.500%, due 01/01/29 |
|
|
1,661,535 |
|
|
|
1,697,401 |
|
|
# C00742, 6.500%, due 04/01/29 |
|
|
52,989 |
|
|
|
54,131 |
|
|
# G01717, 6.500%, due 11/01/29 |
|
|
1,022,451 |
|
|
|
1,043,845 |
|
|
# G00944, 7.000%, due 06/01/28 |
|
|
160,021 |
|
|
|
165,425 |
|
|
# G01391, 7.000%, due 04/01/32 |
|
|
1,344,746 |
|
|
|
1,390,261 |
|
|
Federal Home Loan Mortgage Corp. REMICs, Series 2148, Class ZA, 6.000%, due 04/15/29 |
|
|
688,708 |
|
|
|
683,455 |
|
|
Series 2426, Class GH, 6.000%, due 08/15/30 |
|
|
248,998 |
|
|
|
249,584 |
|
|
Series 3164, Class NC, 6.000%, due 12/15/32 |
|
|
7,875,000 |
|
|
|
7,870,018 |
|
|
Federal Home Loan Mortgage Corp., 5.300%, due 02/27/09 |
|
|
8,275,000 |
|
|
|
8,262,877 |
|
|
5.375%, due 12/27/11 |
|
|
6,765,000 |
|
|
|
6,735,430 |
|
|
5.600%, due 10/17/13 |
|
|
2,815,000 |
|
|
|
2,798,394 |
|
|
5.750%, due 06/27/16 |
|
|
3,300,000 |
|
|
|
3,323,001 |
|
|
Federal National Mortgage Association Grantor Trust, Series 02-T19, Class A1, 6.500%, due 07/25/42 |
|
|
1,541,569 |
|
|
|
1,563,284 |
|
|
Series 00-T6, Class A1, 7.500%, due 06/25/30 |
|
|
275,680 |
|
|
|
284,309 |
|
|
Series 01-T4, Class A1, 7.500%, due 07/25/41 |
|
|
1,233,278 |
|
|
|
1,270,427 |
|
|
Federal National Mortgage Association Pools, # 809205, 4.272%, due 01/01/35(3) |
|
|
2,852,232 |
|
|
|
2,808,061 |
|
|
# 809625, 4.656%, due 01/01/35(3) |
|
|
3,770,434 |
|
|
|
3,723,260 |
|
|
# 357351, 5.500%, due 02/01/18 |
|
|
6,897,202 |
|
|
|
6,820,332 |
|
|
# 244450, 5.500%, due 11/01/23 |
|
|
140,968 |
|
|
|
137,176 |
|
|
# 255182, 5.500%, due 04/01/24 |
|
|
4,882,200 |
|
|
|
4,770,233 |
|
|
# 829952, 5.500%, due 09/01/24 |
|
|
2,957,679 |
|
|
|
2,891,792 |
|
|
# 705626, 5.500%, due 05/01/33 |
|
|
4,865,100 |
|
|
|
4,713,756 |
|
|
# 555523, 5.500%, due 06/01/33 |
|
|
6,169,955 |
|
|
|
5,978,686 |
|
|
# 720109, 5.500%, due 07/01/33 |
|
|
5,086,072 |
|
|
|
4,927,854 |
|
|
28
UBS Global Allocation FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
US bonds(continued) |
|
Mortgage & agency debt securities(continued) |
|
# 190015, 6.000%, due 09/01/08 |
|
$ |
440,968 |
|
|
$ |
441,828 |
|
|
# 323789, 6.000%, due 06/01/14 |
|
|
838,436 |
|
|
|
843,567 |
|
|
# 829951, 6.000%, due 07/01/17 |
|
|
2,439,196 |
|
|
|
2,454,124 |
|
|
# 254403, 6.000%, due 08/01/17 |
|
|
565,679 |
|
|
|
569,015 |
|
|
# 555412, 6.000%, due 04/01/18 |
|
|
234,889 |
|
|
|
236,313 |
|
|
# 809903, 6.000%, due 03/01/20 |
|
|
2,427,826 |
|
|
|
2,438,648 |
|
|
# 810112, 6.000%, due 03/01/20 |
|
|
2,146,570 |
|
|
|
2,156,139 |
|
|
# 596124, 6.000%, due 11/01/28 |
|
|
113,760 |
|
|
|
113,419 |
|
|
# 252339, 6.000%, due 03/01/29 |
|
|
705,353 |
|
|
|
703,080 |
|
|
# 522564, 6.000%, due 07/01/29 |
|
|
538,201 |
|
|
|
536,584 |
|
|
# 676733, 6.000%, due 01/01/33 |
|
|
1,990,297 |
|
|
|
1,981,071 |
|
|
# 891332, 6.181%, due 04/01/36(3) |
|
|
1,274,894 |
|
|
|
1,288,969 |
|
|
# 313697, 6.500%, due 12/01/10 |
|
|
671,866 |
|
|
|
674,765 |
|
|
# 629627, 6.500%, due 03/01/17 |
|
|
433,830 |
|
|
|
442,972 |
|
|
# 652185, 6.500%, due 06/01/17 |
|
|
500,452 |
|
|
|
511,201 |
|
|
# 650101, 7.000%, due 08/01/32 |
|
|
665,663 |
|
|
|
689,515 |
|
|
# 754504, 7.000%, due 01/01/34 |
|
|
242,253 |
|
|
|
248,390 |
|
|
# 578040, 7.500%, due 05/01/31 |
|
|
16,402 |
|
|
|
17,119 |
|
|
# 653819, 7.500%, due 02/01/33 |
|
|
219,405 |
|
|
|
229,514 |
|
|
Federal National Mortgage Association Whole Loan, Series 01-W3, Class A, 7.000%, due 09/25/41 |
|
|
60,456 |
|
|
|
61,620 |
|
|
Series 04-W11, Class 1A3, 7.000%, due 05/25/44 |
|
|
1,748,387 |
|
|
|
1,787,749 |
|
|
Series 95-W3, Class A, 9.000%, due 04/25/25 |
|
|
795 |
|
|
|
860 |
|
|
Federal National Mortgage Association, 4.250%, due 08/15/10 |
|
|
8,075,000 |
|
|
|
7,856,305 |
|
|
5.200%, due 11/08/10 |
|
|
6,450,000 |
|
|
|
6,427,838 |
|
|
5.500%, due 03/15/11 |
|
|
5,670,000 |
|
|
|
5,718,365 |
|
|
5.500%, due 01/23/12 |
|
|
5,280,000 |
|
|
|
5,267,149 |
|
|
6.070%, due 05/12/16 |
|
|
3,790,000 |
|
|
|
3,799,600 |
|
|
|
|
Face amount |
|
Value |
|
Mortgage & agency debt securities(concluded) |
|
6.250%, due 02/01/11 |
|
$ |
5,535,000 |
|
|
$ |
5,720,627 |
|
|
First Horizon Alternative Mortgage Securities Trust, Series 04-AA3, Class A1, 5.303%, due 09/25/34(3) |
|
|
915,599 |
|
|
|
910,017 |
|
|
First Horizon Asset Securities, Inc., Series 04-FL1, Class 1A1, 5.590%, due 02/25/35(3) |
|
|
191,075 |
|
|
|
191,018 |
|
|
Government National Mortgage Association Pools, # 495814, 6.000%, due 01/15/29 |
|
|
41,514 |
|
|
|
41,450 |
|
|
# 2671, 6.000%, due 11/20/28 |
|
|
31,678 |
|
|
|
31,620 |
|
|
# 2713, 6.000%, due 02/20/29 |
|
|
28,318 |
|
|
|
28,262 |
|
|
# 80329, 6.125%, due 10/20/29(3) |
|
|
130,260 |
|
|
|
131,233 |
|
|
# 781276, 6.500%, due 04/15/31 |
|
|
999,092 |
|
|
|
1,019,999 |
|
|
# 422480, 6.500%, due 03/15/26 |
|
|
335,074 |
|
|
|
341,709 |
|
|
# 491532, 6.500%, due 01/20/34 |
|
|
555,745 |
|
|
|
565,763 |
|
|
# 338523, 8.000%, due 12/15/22 |
|
|
6,723 |
|
|
|
7,111 |
|
|
Government National Mortgage Association, Series 01-35, Class AZ, 6.500%, due 08/20/31 |
|
|
2,837,942 |
|
|
|
2,881,471 |
|
|
JPMorgan Alternative Loan Trust, Series 06-A4, Class A7, 6.300%, due 09/25/36(3) |
|
|
8,000,000 |
|
|
|
7,989,477 |
|
|
Residential Asset Securitization Trust, Series 04-IP2, Class B1, 5.420%, due 12/25/34(3) |
|
|
4,730,524 |
|
|
|
4,696,116 |
|
|
WaMu Mortgage Pass-Through Certificates, Series 07-HY1, Class 3A2, 5.884%, due 02/25/37(3) |
|
|
7,000,000 |
|
|
|
6,887,335 |
|
|
Wells Fargo Mortgage Backed Securities Trust, Series 03-18, Class A2, 5.250%, due 12/25/33 |
|
|
3,273,725 |
|
|
|
3,081,292 |
|
|
Total mortgage & agency debt securities (cost $228,714,141) |
|
|
225,457,552 |
|
|
Stripped mortgage-backed securities0.06% |
|
Federal National Mortgage Association Interest Strips, Series 365, Class 11, 5.500%, due 02/01/36(4) |
|
|
2,514,558 |
|
|
|
650,186 |
|
|
29
UBS Global Allocation FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
US bonds(concluded) |
|
Stripped mortgage-backed securities(concluded) |
|
Federal National Mortgage Association Principal Strips, Series 352, Class 1, 3.999%, due 08/01/34(4) |
|
$ |
2,406,772 |
|
|
$ |
1,700,489 |
|
|
MLCC Mortgage Investors, Inc., Series 03-D, Class XA1, IO, 1.000%, due 08/25/28(3),(4) |
|
|
4,294,094 |
|
|
|
328 |
|
|
Sequoia Mortgage Trust, Series 04-11, Class XAI, IO, 0.912%, due 12/20/34(3),(4) |
|
|
22,155,989 |
|
|
|
286,470 |
|
|
Structured Adjustable Rate Mortgage Loan Trust, Series 05-17, Class 4AX, IO, 5.500%, due 08/25/35(4) |
|
|
3,142,442 |
|
|
|
456,103 |
|
|
Total stripped mortgage-backed securities (cost $4,378,101) |
|
|
3,093,576 |
|
|
US government obligations5.46% |
|
US Treasury Bonds, 4.750%, due 02/15/37(1) |
|
|
27,575,000 |
|
|
|
26,000,219 |
|
|
6.250%, due 08/15/23(1) |
|
|
29,505,000 |
|
|
|
32,762,086 |
|
|
6.250%, due 05/15/30(1) |
|
|
27,165,000 |
|
|
|
31,048,753 |
|
|
8.750%, due 05/15/17(1) |
|
|
10,110,000 |
|
|
|
12,953,437 |
|
|
US Treasury Notes, 4.250%, due 10/15/10(1) |
|
|
5,580,000 |
|
|
|
5,472,758 |
|
|
4.500%, due 03/31/12(1) |
|
|
69,895,000 |
|
|
|
68,617,250 |
|
|
4.625%, due 11/15/16 |
|
|
69,545,000 |
|
|
|
67,398,911 |
|
|
4.750%, due 12/31/08(1) |
|
|
36,385,000 |
|
|
|
36,274,135 |
|
|
4.750%, due 05/15/14(1) |
|
|
675,000 |
|
|
|
666,563 |
|
|
Total US government obligations (cost $283,412,027) |
|
|
281,194,112 |
|
|
Total US bonds (cost $680,609,253) |
|
|
669,043,715 |
|
|
International bonds7.83% |
|
International corporate bonds0.39% |
|
Germany0.11% |
|
Kreditanstalt fuer Wiederaufbau, 4.750%, due 12/07/10 |
|
GBP |
1,245,000 |
|
|
|
2,393,591 |
|
|
Landwirtschaftliche Rentenbank, 6.000%, due 09/15/09 |
|
AUD |
4,245,000 |
|
|
|
3,540,795 |
|
|
|
|
|
5,934,386 |
|
|
Luxembourg0.01% |
|
Telecom Italia Capital SA, 5.250%, due 11/15/13 |
|
$ |
325,000 |
|
|
|
309,684 |
|
|
United Kingdom0.27% |
|
Abbey National PLC, 7.950%, due 10/26/29 |
|
$ |
295,000 |
|
|
|
354,343 |
|
|
Halifax PLC, 9.375%, due 05/15/21 |
|
GBP |
1,300,000 |
|
|
|
3,364,464 |
|
|
|
|
Face amount |
|
Value |
|
United Kingdom(concluded) |
|
Lloyds TSB Bank PLC, 6.625%, due 03/30/15 |
|
GBP |
2,375,000 |
|
|
$ |
4,860,816 |
|
|
Royal Bank of Scotland Group PLC, 9.118%, due 03/31/10(6) |
|
$ |
675,000 |
|
|
|
733,832 |
|
|
Royal Bank of Scotland PLC, 9.625%, due 06/22/15 |
|
GBP |
1,890,000 |
|
|
|
4,571,769 |
|
|
|
|
|
13,885,224 |
|
|
Total international corporate bonds (cost $19,698,431) |
|
|
20,129,294 |
|
|
International mortgage & agency debt securities0.02% |
|
United Kingdom0.02% |
|
Paragon Mortgages PLC, Series 7A, Class B1A, 6.110%, due 05/15/43(2),(3) (cost $1,040,000) |
|
$ |
1,040,000 |
|
|
|
1,041,218 |
|
|
Foreign government bonds7.32% |
|
Australia0.03% |
|
Government of Australia, 5.750%, due 06/15/11 |
|
AUD |
2,000,000 |
|
|
|
1,655,491 |
|
|
Austria0.43% |
|
Republic of Austria, 5.000%, due 01/15/08 |
|
EUR |
10,750,000 |
|
|
|
14,600,948 |
|
|
5.250%, due 01/04/11 |
|
|
5,490,000 |
|
|
|
7,595,322 |
|
|
|
|
|
22,196,270 |
|
|
Belgium0.21% |
|
Government of Belgium, 5.000%, due 09/28/11 |
|
EUR |
2,300,000 |
|
|
|
3,164,896 |
|
|
5.750%, due 03/28/08 |
|
|
5,480,000 |
|
|
|
7,488,472 |
|
|
|
|
|
10,653,368 |
|
|
Canada0.27% |
|
Government of Canada, 6.000%, due 06/01/11 |
|
CAD |
14,000,000 |
|
|
|
13,807,069 |
|
|
Egypt0.07% |
|
Egypt Government Agency for International Development, 4.450%, due 09/15/15 |
|
$ |
3,620,000 |
|
|
|
3,394,365 |
|
|
France1.28% |
|
French Treasury Notes, 3.000%, due 07/12/08 |
|
EUR |
5,600,000 |
|
|
|
7,470,784 |
|
|
3.500%, due 07/12/09 |
|
|
6,210,000 |
|
|
|
8,246,324 |
|
|
Government of France, 3.750%, due 04/25/21 |
|
|
8,830,000 |
|
|
|
10,810,722 |
|
|
4.750%, due 04/25/35 |
|
|
6,340,000 |
|
|
|
8,577,784 |
|
|
5.500%, due 04/25/10 |
|
|
10,090,000 |
|
|
|
13,997,991 |
|
|
5.500%, due 04/25/29 |
|
|
11,350,000 |
|
|
|
16,900,896 |
|
|
|
|
|
66,004,501 |
|
|
30
UBS Global Allocation FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(concluded) |
|
International bonds(concluded) |
|
Foreign government bonds(concluded) |
|
Germany2.55% |
|
Bundesobligation, 3.500%, due 10/10/08 |
|
EUR |
7,000,000 |
|
|
$ |
9,366,429 |
|
|
Bundesschatzanweisungen, 2.250%, due 09/14/07 |
|
|
4,350,000 |
|
|
|
5,865,841 |
|
|
Deutsche Bundesrepublik, 3.750%, due 01/04/09 |
|
|
14,780,000 |
|
|
|
19,801,151 |
|
|
3.750%, due 01/04/17 |
|
|
6,245,000 |
|
|
|
7,929,774 |
|
|
4.000%, due 01/04/37 |
|
|
9,070,000 |
|
|
|
10,915,879 |
|
|
4.500%, due 07/04/09 |
|
|
17,475,000 |
|
|
|
23,656,033 |
|
|
4.750%, due 07/04/34 |
|
|
8,920,000 |
|
|
|
12,135,070 |
|
|
5.000%, due 07/04/12 |
|
|
6,020,000 |
|
|
|
8,311,539 |
|
|
5.250%, due 07/04/10 |
|
|
8,100,000 |
|
|
|
11,181,546 |
|
|
6.250%, due 01/04/24 |
|
|
3,400,000 |
|
|
|
5,409,610 |
|
|
6.500%, due 07/04/27 |
|
|
10,085,000 |
|
|
|
16,735,295 |
|
|
|
|
|
131,308,167 |
|
|
Italy0.54% |
|
Republic of Italy, 4.500%, due 05/01/09 |
|
EUR |
7,480,000 |
|
|
|
10,129,475 |
|
|
5.250%, due 08/01/11 |
|
|
12,660,000 |
|
|
|
17,561,845 |
|
|
|
|
|
27,691,320 |
|
|
Japan0.99% |
|
Government of Japan CPI Linked Bonds (TIPS), 0.500%, due 12/10/14 |
|
JPY |
265,000,000 |
|
|
|
2,056,335 |
|
|
1.000%, due 06/10/16 |
|
|
290,000,000 |
|
|
|
2,303,018 |
|
|
Government of Japan, 0.300%, due 03/20/08 |
|
|
720,000,000 |
|
|
|
5,825,284 |
|
|
0.900%, due 06/15/08 |
|
|
1,360,000,000 |
|
|
|
11,055,947 |
|
|
1.300%, due 06/20/11 |
|
|
1,340,000,000 |
|
|
|
10,876,795 |
|
|
1.300%, due 06/20/15 |
|
|
850,000,000 |
|
|
|
6,675,025 |
|
|
1.500%, due 03/20/14 |
|
|
280,000,000 |
|
|
|
2,253,706 |
|
|
1.700%, due 03/20/17 |
|
|
470,000,000 |
|
|
|
3,760,569 |
|
|
1.900%, due 06/20/25 |
|
|
305,000,000 |
|
|
|
2,367,233 |
|
|
2.300%, due 06/20/35 |
|
|
220,000,000 |
|
|
|
1,737,520 |
|
|
2.600%, due 03/20/19 |
|
|
250,000,000 |
|
|
|
2,162,727 |
|
|
|
|
|
51,074,159 |
|
|
Netherlands0.27% |
|
Government of Netherlands, 4.000%, due 01/15/37 |
|
EUR |
6,070,000 |
|
|
|
7,258,096 |
|
|
5.000%, due 07/15/11 |
|
|
4,945,000 |
|
|
|
6,803,242 |
|
|
|
|
|
14,061,338 |
|
|
Sweden0.08% |
|
Government of Sweden, 6.750%, due 05/05/14 |
|
SEK |
26,100,000 |
|
|
|
4,314,255 |
|
|
United Kingdom0.60% |
|
UK Gilts, 4.750%, due 09/07/15 |
|
GBP |
3,425,000 |
|
|
|
6,521,606 |
|
|
4.750%, due 03/07/20 |
|
|
3,810,000 |
|
|
|
7,235,404 |
|
|
|
|
Face amount |
|
Value |
|
United Kingdom(concluded) |
|
5.000%, due 03/07/12 |
|
GBP |
1,515,000 |
|
|
$ |
2,955,567 |
|
|
8.000%, due 06/07/21 |
|
|
5,700,000 |
|
|
|
14,393,558 |
|
|
|
|
|
31,106,135 |
|
|
Total foreign government bonds (cost $373,600,099) |
|
|
377,266,438 |
|
|
Sovereign/supranational bond0.10% |
|
European Investment Bank, 5.750%, due 09/15/09 (cost $4,907,558) |
|
AUD |
6,500,000 |
|
|
|
5,404,999 |
|
|
Total international bonds (cost $399,246,088) |
|
|
403,841,949 |
|
|
Total bonds (cost $1,079,855,341) |
|
|
1,072,885,664 |
|
|
|
|
Shares |
|
|
|
Investment companies17.80% |
|
iShares MSCI EAFE Index Fund |
|
|
52,600 |
|
|
|
4,248,502 |
|
|
iShares Russell 1000 Growth Index Fund |
|
|
7,200 |
|
|
|
426,312 |
|
|
iShares Russell 2000 Index Fund(1) |
|
|
250,000 |
|
|
|
20,740,000 |
|
|
UBS Corporate Bond Relationship Fund(7) |
|
|
8,234,340 |
|
|
|
98,125,332 |
|
|
UBS Emerging Markets Equity Relationship Fund(7) |
|
|
7,238,101 |
|
|
|
240,393,272 |
|
|
UBS Global ex U.S. Smaller Cap Equity Completion Relationship Fund(7) |
|
|
700,000 |
|
|
|
7,524,790 |
|
|
UBS High Yield Relationship Fund(7) |
|
|
2,080,862 |
|
|
|
45,363,209 |
|
|
UBS Small-Cap Equity Relationship Fund(7) |
|
|
2,816,127 |
|
|
|
145,512,115 |
|
|
UBS U.S. Securitized Mortgage Relationship Fund(7) |
|
|
27,847,864 |
|
|
|
355,316,472 |
|
|
Total investment companies (cost $724,248,017) |
|
|
917,650,004 |
|
|
Short-term investments0.29% |
|
Other0.26% |
|
UBS Supplementary Trust U.S. Cash Management Prime Fund, 5.37%(7),(8) (cost $13,360,735) |
|
|
13,360,735 |
|
|
|
13,360,735 |
|
|
|
|
Face amount |
|
|
|
US government obligation0.03% |
|
US Treasury Bills, 4.81%, due 12/20/07(9),(10) (cost $1,368,562) |
|
$ |
1,400,000 |
|
|
|
1,368,612 |
|
|
Total short-term investments (cost $14,729,297) |
|
|
14,729,347 |
|
|
31
UBS Global Allocation FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Investment of cash collateral from securities loaned2.79% |
|
UBS Supplementary Trust U.S. Cash Management Prime Fund, 5.37%(7),(8) (cost $144,054,788) |
|
$ |
144,054,788 |
|
|
$ |
144,054,788 |
|
|
Total investments102.59% (cost $4,643,488,953) |
|
|
5,289,591,393 |
|
|
Liabilities, in excess of cash and other assets(2.59)% |
|
|
(133,476,375 |
) |
|
Net assets100.00% |
|
$ |
5,156,115,018 |
|
|
Notes to portfolio of investments
Aggregate cost for federal income tax purposes was $4,726,642,281; and net unrealized appreciation consisted of:
Gross unrealized appreciation |
|
$ |
615,873,449 |
|
|
Gross unrealized depreciation |
|
|
(52,924,337 |
) |
|
Net unrealized appreciation |
|
$ |
562,949,112 |
|
|
* Non-income producing security.
(1) Security, or portion thereof, was on loan at June 30, 2007.
(2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid, unless otherwise noted, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2007, the value of these securities amounted to $35,297,656 or 0.68% of net assets.
(3) Floating rate securityThe interest rates shown are the current rates as of June 30, 2007.
(4) Security is illiquid. At June 30, 2007, the value of these securities amounted to $11,502,301 or 0.22% of net assets.
(5) Step bondCoupon rate increases in increments to maturity. Rate disclosed is as of June 30, 2007. Maturity date disclosed is the ultimate maturity date.
(6) Perpetual bond security.The maturity date reflects the next call date.
(7) Investment in affiliated mutual fund.
(8) The rate shown reflects the yield at June 30, 2007.
(9) The rate shown is the effective yield at the date of purchase.
(10) This security was pledged to cover margin requirements for futures contracts.
CDO Collateralized debt obligations
CPI Consumer price index
CS Credit Suisse
CVA Dutch certificationdepositary certificate
GMAC General Motors Acceptance Corp.
GSAMP Goldman Sachs Mortgage Securities Corp.
GS Goldman Sachs
IO Interest only securityThis security entitles the holder to receive interest from an underlying pool of mortgages. The risk associated with this security is related to the speed of the principal paydowns. High prepayments would result in a smaller amount of interest being received and cause the yield to decrease. Low prepayments would result in a greater amount of interest being received and cause the yield to increase.
MLCC Merrill Lynch Credit Corp.
Preference shares A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
REMIC Real Estate Mortgage Investment Conduit
TIPS Treasury inflation protected securities
32
UBS Global Allocation FundPortfolio of investments
June 30, 2007
Currency type abbreviations:
AUD Australian Dollar
CAD Canadian Dollar
EUR Euro
GBP Great Britain Pound
JPY Japanese Yen
SEK Swedish Krona
Restricted security
Security |
|
Acquisition date |
|
Acquisition cost |
|
Acquisition cost as a percentage of net assets |
|
06/30/07 Market value |
|
06/30/07 Market value as a percentage of net assets |
|
G-Force CDO, Ltd., Series 06-1A, Class A3, 5.600%, due 09/27/46 |
|
|
08/03/06 |
|
|
$ |
6,900,093 |
|
|
|
0.13 |
% |
|
$ |
6,808,725 |
|
|
|
0.13 |
% |
|
Forward foreign currency contracts
UBS Global Allocation Fund had the following open forward foreign currency contracts as of June 30, 2007:
|
|
Contracts to deliver |
|
In exchange for |
|
Maturity dates |
|
Unrealized appreciation/ (depreciation) |
|
Canadian Dollar |
|
|
22,910,000 |
|
|
USD |
20,696,508 |
|
|
11/05/07 |
|
$ |
(865,292 |
) |
|
Euro |
|
|
394,900,000 |
|
|
USD |
534,622,879 |
|
|
11/05/07 |
|
|
(1,925,559 |
) |
|
Euro |
|
|
28,680,000 |
|
|
JPY |
4,691,029,860 |
|
|
11/05/07 |
|
|
(249,041 |
) |
|
Great Britain Pound |
|
|
105,245,000 |
|
|
USD |
207,735,738 |
|
|
11/05/07 |
|
|
(3,167,055 |
) |
|
South Korean Won |
|
|
30,897,000,000 |
|
|
USD |
33,236,876 |
|
|
08/20/07 |
|
|
(263,443 |
) |
|
United States Dollar |
|
|
290,311,459 |
|
|
CHF |
349,445,000 |
|
|
11/05/07 |
|
|
(1,645,302 |
) |
|
United States Dollar |
|
|
563,853,419 |
|
|
JPY |
66,147,900,000 |
|
|
11/05/07 |
|
|
(17,889,026 |
) |
|
United States Dollar |
|
|
262,252,446 |
|
|
SEK |
1,779,750,000 |
|
|
11/05/07 |
|
|
(556,718 |
) |
|
United States Dollar |
|
|
54,802,328 |
|
|
SGD |
82,215,000 |
|
|
11/05/07 |
|
|
(567,442 |
) |
|
United States Dollar |
|
|
92,541,857 |
|
|
TWD |
3,040,000,000 |
|
|
08/20/07 |
|
|
279,895 |
|
|
Net unrealized depreciation on forward foreign currency contracts |
|
$ |
(26,848,983 |
) |
|
Currency type abbreviations:
CHF Swiss Franc
JPY Japanese Yen
SEK Swedish Krona
SGD Singapore Dollar
TWD Taiwan Dollar
USD United States Dollar
Futures contracts
UBS Global Allocation Fund had the following open futures contracts as of June 30, 2007:
|
|
Expiration dates |
|
Cost/ proceeds |
|
Value |
|
Unrealized appreciation/ (depreciation) |
|
US Treasury futures buy contracts: |
|
5 Year US Treasury Notes, 249 contracts |
|
September 2007 |
|
$ |
25,930,635 |
|
|
$ |
25,915,453 |
|
|
$ |
(15,182 |
) |
|
10 Year US Treasury Notes, 25 contracts |
|
September 2007 |
|
|
2,666,086 |
|
|
|
2,642,578 |
|
|
|
(23,508 |
) |
|
US Long Bond, 29 contracts |
|
September 2007 |
|
|
3,088,581 |
|
|
|
3,124,750 |
|
|
|
36,169 |
|
|
Index futures buy contracts: |
|
Amsterdam Exchanges Index, 537 contracts (EUR) |
|
July 2007 |
|
|
77,579,220 |
|
|
|
79,846,539 |
|
|
|
2,267,320 |
|
|
FTSE 100 Index, 998 contracts (GBP) |
|
September 2007 |
|
|
132,152,552 |
|
|
|
133,031,082 |
|
|
|
878,530 |
|
|
33
UBS Global Allocation FundPortfolio of investments
June 30, 2007
Futures contracts(concluded)
|
|
Expiration date |
|
Cost/ proceeds |
|
Value |
|
Unrealized appreciation/ (depreciation) |
|
Index futures sell contracts: |
|
DAX Index, 200 contracts (EUR) |
|
September 2007 |
|
$ |
53,443,781 |
|
|
$ |
54,669,229 |
|
|
$ |
(1,225,448 |
) |
|
Nikkei 225 Index, 354 contracts (JPY) |
|
September 2007 |
|
|
51,908,022 |
|
|
|
52,212,305 |
|
|
|
(304,282 |
) |
|
S&P Toronto Stock Exchange 60 Index, 346 contracts (CAD) |
|
September 2007 |
|
|
51,712,170 |
|
|
|
52,287,332 |
|
|
|
(575,162 |
) |
|
S&P 500 Index, 68 contracts (USD) |
|
September 2007 |
|
|
26,025,062 |
|
|
|
25,761,800 |
|
|
|
263,262 |
|
|
SPI 200 Index, 395 contracts (AUD) |
|
September 2007 |
|
|
52,635,417 |
|
|
|
52,551,201 |
|
|
|
84,216 |
|
|
Net unrealized appreciation on futures contracts |
|
$ |
1,385,915 |
|
|
The segregated aggregate market value of investments and cash collateral pledged to cover margin requirements for the open futures positions at June 30, 2007 was $35,177,425.
Currency type abbreviations:
AUD Australian Dollar
CAD Canadian Dollar
EUR Euro
GBP Great Britain Pound
JPY Japanese Yen
USD United States Dollar
See accompanying notes to financial statements.
34
UBS Global Equity Fund
Portfolio performance
For the 12 months ended June 30, 2007, Class A shares of UBS Global Equity Fund (the "Fund") returned 20.11% (Class A shares returned 13.47% after the deduction of the maximum sales charge), while Class Y shares returned 20.44%. The Fund's benchmark, the MSCI World Free Index (net US) (the "Index"), returned 23.94% over the same time period. (Class Y shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 37; please note that these returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.)
While stock selection generated solid returns for the Fund over the period, it was offset by sector positioning.
Portfolio performance summary
What worked
The consumer discretionary sector was the largest contributor to performance, driven by strong stock selection. In particular, we saw strong stock selection in retailingnotably Amazon.com. (For more on these stocks, see "Portfolio Highlights.")
In the information technology sector, stock selection in software and services drove outperformance. Within software, we identified what we believe are attractive opportunities having solid, cash-generative business models and good growth prospects. These included Microsoft Corp., Symantec Corp. and McAfee Inc., which were among the top contributors to performance within the Fund's portfolio.
Stock selection led to strong results in health care during the period. We held a significant allocation to pharmaceutical stocks, particularly in the US market, where we found attractive opportunities despite the prospect of health care reform. Within the sector, we focused on companies with unique or noncommodity product concentrations, such as in vaccines and biologics, and we sought to avoid those companies that we believed had too much generic exposure, significant patent expiry risk and weak product pipelines.
What didn't work
Stock selection within industrials detracted from performance over the period. In particular, our capital goods stocks detracted from performance, most notably Masco, the building products company, which suffered on the back of housing market concerns.
The underweight to materials hurt returns. In our opinion, material stocks in general were expensive. We believe the strength in this sector has been partly driven by speculators, who, in our view, have started to show signs of unease. We believe that as capacity additions are recognized and speculative flows leave the market, commodity prices and valuations will normalize.
While we achieved good results from an underweight to energy as the sector underperformed over the year, stock selection hurt our overall position. We did not hold names such as ExxonMobil and Chevron, which outperformed over the period. We continue to maintain an underweight based on our views of long-term stabilization of oil prices and on correcting supply-demand fundamentals.
35
UBS Global Equity Fund
Portfolio Highlights
Vodafone was the top-performing stock in the Fund this year. We believe Vodafone offers long-term growth, is highly cash-generative, and intends to return a significant proportion of its free cash flow to shareholders via a large share buyback program.
An overweight to retailer Amazon.com was another strong contributor to performance. The company has reported outstanding results for the last two quarters. In the latest set, it reported that its earnings had tripled and its margins expanded, leading to several firms raising their ratings, as well as earnings estimates and price targets on the company.
Australian company QBE Insurance had a positive impact on returns, as well. The company announced its plans to buy Winterthur US from AXA for $1.2 billion, which will increase QBE's presence in the US. We believe the company's strategy of making acquisitions in the US and the UK, where there are more opportunities than in its native Australia, is a sound one.
An overweight to BP was our biggest disappointment this year. Although we expect the price of oil to fall, an investment case for BP can be made on the basis that its assets and cash flow would still be very valuable, even if oil prices were to drop. BP has significant asset backing, with a resource base of approximately three barrels of oil for every share in issue. The company is carrying on with its aggressive share-buyback program, which is value enhancing.
Our overweight to Citigroup was another drag on performance, particularly due to subprime concerns. However, we believe Citigroup will be able to overcome this and has superior product depth, geographic reach and a strong market position within businesses that possess secular growth characteristics. We believe this should lead to above-average earnings growth and profitability in the long term.
Bruno Bertocci named lead portfolio manager for UBS Global Equity Fund
Effective on July 1, 2007, Thomas Madsen, the lead portfolio manager for the UBS Global Equity Fund was replaced by Bruno Bertocci. In this role, Mr. Bertocci is responsible for the day-to-day management of the Fund's portfolio. Mr. Bertocci has access to global analysts who are responsible for researching, projecting cash flow and providing a basis for determining which securities are attractively valued. Mr. Bertocci works closely with the analysts to decide how to structure the UBS Global Equity Fund.
Bruno Bertocci is a Managing Director at UBS Global Asset Management and a member of the Global Equity Portfolio Management team. Mr. Bertocci has been an investment professional with UBS Global Asset Management since 1998 and portfolio manager of the Fund since 2007.
This letter is intended to assist shareholders in understanding how the Fund performed during the 12 months ended June 30, 2007. The views and opinions in the letter were current as of August 15, 2007. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. Mutual funds are sold by prospectus only. You should read it carefully and consider a fund's investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be
obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/globalam-us.
36
UBS Global Equity Fund
Average annual total return (unaudited)
|
|
|
|
1 year ended 06/30/07 |
|
5 years ended 06/30/07 |
|
10 years ended 06/30/07 |
|
Inception(1) to 06/30/07 |
|
Before deducting |
|
Class A(2) |
|
|
20.11 |
% |
|
|
11.77 |
% |
|
|
6.48 |
% |
|
|
6.48 |
% |
|
maximum sales charge |
|
Class B(3) |
|
|
19.25 |
|
|
|
10.94 |
|
|
|
N/A |
|
|
|
8.92 |
|
|
|
|
Class C(4) |
|
|
19.28 |
|
|
|
10.94 |
|
|
|
N/A |
|
|
|
8.82 |
|
|
|
|
Class Y(5) |
|
|
20.44 |
|
|
|
12.12 |
|
|
|
6.82 |
|
|
|
8.47 |
|
|
After deducting maximum |
|
Class A(2) |
|
|
13.47 |
|
|
|
10.50 |
|
|
|
5.88 |
|
|
|
5.88 |
|
|
sales charge |
|
Class B(3) |
|
|
14.25 |
|
|
|
10.67 |
|
|
|
N/A |
|
|
|
8.80 |
|
|
|
|
Class C(4) |
|
|
18.28 |
|
|
|
10.94 |
|
|
|
N/A |
|
|
|
8.82 |
|
|
MSCI World Free Index (net US)(6) |
|
|
23.94 |
|
|
|
14.34 |
|
|
|
7.30 |
|
|
|
9.05 |
|
|
The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2006 prospectuses were as follows: Class A1.37% and 1.25%; Class B2.35% and 2.00%; Class C2.20% and 2.00%; Class Y.99% and .99%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. 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 management fees and/or to reimburse expenses to the extent necessary so the Fund's operating expenses, through the fiscal year ending June 30, 2007, do not exceed Class A1.25%; Class B2.00%; Class C2.00%; Class Y1.00%. 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.
(1) Inception date of UBS Global Equity Fund Class A shares is 06/30/97. Inception dates of Class B and Class C shares are 12/11/01 and 11/27/01, respectively. Inception date of Class Y shares is 01/28/94. The inception return of the Index is calculated as of 01/31/94, which is the closest month-end to the inception date of the oldest share class (Class Y).
(2) Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.
(3) Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.
(4) Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.
(5) The Fund offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.
(6) The MSCI World Free Index (net US) is a broad-based index that represents the US and developed non-US equity markets in terms of capitalization and performance. It is designed to provide a representative total return for all major stock exchanges located inside and outside the United States. This benchmark has been calculated net of withholding tax from a US perspective.
If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectus.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
37
UBS Global Equity Fund
Illustration of an assumed investment of $10,000 in Class A shares (adjusted for maximum sales
charge) and $10,000,000 in Class Y shares (unaudited)
The following two charts show the growth in the value of an investment in UBS Global Equity Fund Class A shares (adjusted for 5.50% maximum sales charge), Class Y shares and the MSCI World Free Index (net US), if you had invested $10,000 in Class A shares on June 30, 1997 or $10,000,000 in Class Y shares on January 28, 1994, and had reinvested all your income dividends and capital gain distributions through June 30, 2007. The performance of Class B and Class C shares will vary based upon the different inception dates, class specific expenses and sales charges. No adjustment has been made for any income taxes payable by shareholders on income dividends and capital gain distributions. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption.
UBS Global Equity Fund Class A vs. MSCI World Free Index (net US)
Wealth value with dividends reinvested
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.50%.
UBS Global Equity Fund Class Y vs. MSCI World Free Index (net US)
Wealth value with dividends reinvested
Index started on 01/31/94
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
38
UBS Global Equity Fund
Top ten US equity holdings (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
Citigroup, Inc. |
|
|
2.6 |
% |
|
Wyeth |
|
|
1.9 |
|
|
Wells Fargo & Co. |
|
|
1.9 |
|
|
Sprint Nextel Corp. |
|
|
1.8 |
|
|
Morgan Stanley |
|
|
1.7 |
|
|
Microsoft Corp. |
|
|
1.7 |
|
|
Burlington Northern Santa Fe Corp. |
|
|
1.7 |
|
|
Illinois Tool Works, Inc. |
|
|
1.5 |
|
|
Anheuser-Busch Cos., Inc. |
|
|
1.5 |
|
|
Allergan, Inc. |
|
|
1.5 |
|
|
Total |
|
|
17.8 |
% |
|
Country exposure, top five (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
United States |
|
|
54.5 |
% |
|
United Kingdom |
|
|
10.3 |
|
|
Japan |
|
|
7.3 |
|
|
France |
|
|
4.3 |
|
|
Germany |
|
|
3.4 |
|
|
Total |
|
|
79.8 |
% |
|
Top ten international equity holdings (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
BP PLC |
|
|
2.2 |
% |
|
Vodafone Group PLC |
|
|
1.6 |
|
|
France Telecom SA |
|
|
1.5 |
|
|
Total SA |
|
|
1.5 |
|
|
AXA SA |
|
|
1.3 |
|
|
Barclays PLC |
|
|
1.3 |
|
|
Allianz SE |
|
|
1.3 |
|
|
Roche Holding AG |
|
|
1.2 |
|
|
Bank of Ireland |
|
|
1.0 |
|
|
NTT DoCoMo, Inc. |
|
|
1.0 |
|
|
Total |
|
|
13.9 |
% |
|
(1) Figures represent the direct investments of the UBS Global Equity Fund. Figures could be different if a breakdown of the underlying investment companies was included.
39
UBS Global Equity Fund
Industry diversification (unaudited)(1)
As a percentage of net assets as of June 30, 2007
Equities US equities |
|
Aerospace & defense |
|
|
0.51 |
% |
|
Air freight & logistics |
|
|
1.08 |
|
|
Auto components |
|
|
1.23 |
|
|
Automobiles |
|
|
0.34 |
|
|
Beverages |
|
|
1.83 |
|
|
Biotechnology |
|
|
1.26 |
|
|
Building products |
|
|
0.89 |
|
|
Capital markets |
|
|
3.20 |
|
|
Commercial banks |
|
|
3.66 |
|
|
Computers & peripherals |
|
|
0.76 |
|
|
Diversified financial services |
|
|
3.33 |
|
|
Diversified telecommunication services |
|
|
0.56 |
|
|
Electric utilities |
|
|
2.00 |
|
|
Energy equipment & services |
|
|
1.15 |
|
|
Food & staples retailing |
|
|
1.62 |
|
|
Health care equipment & supplies |
|
|
0.34 |
|
|
Health care providers & services |
|
|
1.07 |
|
|
Hotels, restaurants & leisure |
|
|
1.16 |
|
|
Household durables |
|
|
0.52 |
|
|
Household products |
|
|
0.38 |
|
|
Industrial conglomerates |
|
|
1.50 |
|
|
Insurance |
|
|
0.43 |
|
|
Internet & catalog retail |
|
|
0.75 |
|
|
Internet software & services |
|
|
0.87 |
|
|
Machinery |
|
|
1.94 |
|
|
Media |
|
|
2.28 |
|
|
Multi-utilities |
|
|
0.86 |
|
|
Oil, gas & consumable fuels |
|
|
0.36 |
|
|
Pharmaceuticals |
|
|
5.58 |
|
|
Road & rail |
|
|
1.67 |
|
|
Semiconductors & semiconductor equipment |
|
|
3.68 |
|
|
Software |
|
|
3.75 |
|
|
Specialty retail |
|
|
1.35 |
|
|
Textiles, apparel & luxury goods |
|
|
0.31 |
|
|
Thrifts & mortgage finance |
|
|
0.46 |
|
|
Wireless telecommunication services |
|
|
1.83 |
|
|
Total US equities |
|
|
54.51 |
|
|
International equities |
|
Auto components |
|
|
0.23 |
|
|
Automobiles |
|
|
2.20 |
|
|
Capital markets |
|
|
0.56 |
|
|
Chemicals |
|
|
0.26 |
|
|
Commercial banks |
|
|
6.58 |
% |
|
Commercial services & supplies |
|
|
0.85 |
|
|
Communications equipment |
|
|
0.32 |
|
|
Construction materials |
|
|
0.33 |
|
|
Consumer finance |
|
|
0.40 |
|
|
Diversified financial services |
|
|
0.38 |
|
|
Diversified telecommunication services |
|
|
2.07 |
|
|
Electronic equipment & instruments |
|
|
0.40 |
|
|
Food & staples retailing |
|
|
0.31 |
|
|
Food products |
|
|
0.26 |
|
|
Health care providers & services |
|
|
0.13 |
|
|
Household durables |
|
|
0.05 |
|
|
Industrial conglomerates |
|
|
0.32 |
|
|
Insurance |
|
|
6.46 |
|
|
Internet & catalog retail |
|
|
0.14 |
|
|
Internet software & services |
|
|
0.20 |
|
|
Machinery |
|
|
0.30 |
|
|
Media |
|
|
0.89 |
|
|
Metals & mining |
|
|
0.92 |
|
|
Office electronics |
|
|
0.97 |
|
|
Oil, gas & consumable fuels |
|
|
4.83 |
|
|
Paper & forest products |
|
|
0.61 |
|
|
Pharmaceuticals |
|
|
1.76 |
|
|
Road & rail |
|
|
1.11 |
|
|
Semiconductors & semiconductor equipment |
|
|
0.59 |
|
|
Specialty retail |
|
|
0.60 |
|
|
Tobacco |
|
|
0.50 |
|
|
Wireless telecommunication services |
|
|
2.61 |
|
|
Total international equities |
|
|
38.14 |
|
|
Total equities |
|
|
92.65 |
|
|
Investment companies |
|
UBS Emerging Markets Equity Completion Relationship Fund |
|
|
6.02 |
|
|
UBS Global ex U.S. Smaller Cap Equity Completion Relationship Fund |
|
|
0.61 |
|
|
UBS U.S. Smaller Cap Equity Completion Relationship Fund |
|
|
0.58 |
|
|
Total investment companies |
|
|
7.21 |
|
|
Warrants |
|
|
0.00 |
(2) |
|
Short-term investment |
|
|
0.33 |
|
|
Total investments |
|
|
100.19 |
|
|
Liabilities, in excess of cash and other assets |
|
|
(0.19 |
) |
|
Net assets |
|
|
100.00 |
% |
|
(1) Figures represent the industry breakdown of direct investments of the UBS Global Equity Fund. Figures would be different if a breakdown of the underlying investment companies' industry diversification was included.
(2) Amount represents less than 0.005%.
40
UBS Global Equity FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities92.65% |
|
US equities54.51% |
|
Allergan, Inc. |
|
|
107,800 |
|
|
$ |
6,213,592 |
|
|
Amazon.com, Inc.* |
|
|
44,900 |
|
|
|
3,071,609 |
|
|
American Electric Power Co., Inc. |
|
|
37,800 |
|
|
|
1,702,512 |
|
|
Analog Devices, Inc. |
|
|
84,900 |
|
|
|
3,195,636 |
|
|
Anheuser-Busch Cos., Inc. |
|
|
121,000 |
|
|
|
6,311,360 |
|
|
AT&T, Inc. |
|
|
54,600 |
|
|
|
2,265,900 |
|
|
BEA Systems, Inc.* |
|
|
90,800 |
|
|
|
1,243,052 |
|
|
Bristol-Myers Squibb Co. |
|
|
61,800 |
|
|
|
1,950,408 |
|
|
Burlington Northern Santa Fe Corp. |
|
|
79,900 |
|
|
|
6,802,686 |
|
|
Carnival Corp. |
|
|
96,900 |
|
|
|
4,725,813 |
|
|
Cephalon, Inc.* |
|
|
20,500 |
|
|
|
1,647,995 |
|
|
Chico's FAS, Inc.* |
|
|
44,700 |
|
|
|
1,087,998 |
|
|
Citigroup, Inc. |
|
|
204,000 |
|
|
|
10,463,160 |
|
|
Coach, Inc.* |
|
|
26,800 |
|
|
|
1,270,052 |
|
|
Constellation Brands, Inc., Class A* |
|
|
48,000 |
|
|
|
1,165,440 |
|
|
Costco Wholesale Corp. |
|
|
54,100 |
|
|
|
3,165,932 |
|
|
Dell, Inc.* |
|
|
108,100 |
|
|
|
3,086,255 |
|
|
eBay, Inc.* |
|
|
31,100 |
|
|
|
1,000,798 |
|
|
ENSCO International, Inc. |
|
|
18,500 |
|
|
|
1,128,685 |
|
|
EOG Resources, Inc. |
|
|
20,300 |
|
|
|
1,483,118 |
|
|
Exelon Corp. |
|
|
54,300 |
|
|
|
3,942,180 |
|
|
FedEx Corp. |
|
|
39,700 |
|
|
|
4,405,509 |
|
|
Fifth Third Bancorp |
|
|
105,600 |
|
|
|
4,199,712 |
|
|
Fortune Brands, Inc. |
|
|
25,900 |
|
|
|
2,133,383 |
|
|
Freddie Mac |
|
|
30,600 |
|
|
|
1,857,420 |
|
|
General Electric Co. |
|
|
160,400 |
|
|
|
6,140,112 |
|
|
Genzyme Corp.* |
|
|
54,500 |
|
|
|
3,509,800 |
|
|
GlobalSantaFe Corp. |
|
|
21,400 |
|
|
|
1,546,150 |
|
|
Halliburton Co. |
|
|
58,700 |
|
|
|
2,025,150 |
|
|
Harley-Davidson, Inc. |
|
|
23,500 |
|
|
|
1,400,835 |
|
|
Hartford Financial Services Group, Inc. |
|
|
17,900 |
|
|
|
1,763,329 |
|
|
Home Depot, Inc. |
|
|
112,000 |
|
|
|
4,407,200 |
|
|
Illinois Tool Works, Inc. |
|
|
116,500 |
|
|
|
6,313,135 |
|
|
Intel Corp. |
|
|
240,500 |
|
|
|
5,714,280 |
|
|
Intuit, Inc.* |
|
|
43,000 |
|
|
|
1,293,440 |
|
|
Johnson & Johnson |
|
|
27,402 |
|
|
|
1,688,511 |
|
|
Johnson Controls, Inc. |
|
|
43,200 |
|
|
|
5,001,264 |
|
|
JPMorgan Chase & Co. |
|
|
64,700 |
|
|
|
3,134,715 |
|
|
Linear Technology Corp. |
|
|
41,400 |
|
|
|
1,497,852 |
|
|
Masco Corp. |
|
|
128,200 |
|
|
|
3,649,854 |
|
|
McAfee, Inc.* |
|
|
37,900 |
|
|
|
1,334,080 |
|
|
McGraw-Hill Cos., Inc. |
|
|
33,100 |
|
|
|
2,253,448 |
|
|
Medco Health Solutions, Inc.* |
|
|
42,400 |
|
|
|
3,306,776 |
|
|
Medtronic, Inc. |
|
|
27,100 |
|
|
|
1,405,406 |
|
|
Mellon Financial Corp. |
|
|
138,700 |
|
|
|
6,102,800 |
|
|
Merck & Co., Inc. |
|
|
103,200 |
|
|
|
5,139,360 |
|
|
Microsoft Corp. |
|
|
231,700 |
|
|
|
6,828,199 |
|
|
Morgan Stanley |
|
|
82,700 |
|
|
|
6,936,876 |
|
|
National Semiconductor Corp. |
|
|
48,400 |
|
|
|
1,368,268 |
|
|
News Corp., Class A |
|
|
67,300 |
|
|
|
1,427,433 |
|
|
NiSource, Inc. |
|
|
43,800 |
|
|
|
907,098 |
|
|
|
|
Shares |
|
Value |
|
US equities(concluded) |
|
Northeast Utilities |
|
|
37,400 |
|
|
$ |
1,060,664 |
|
|
Northrop Grumman Corp. |
|
|
26,800 |
|
|
|
2,086,916 |
|
|
Omnicom Group, Inc. |
|
|
38,600 |
|
|
|
2,042,712 |
|
|
PACCAR, Inc. |
|
|
18,200 |
|
|
|
1,584,128 |
|
|
Pepco Holdings, Inc. |
|
|
51,800 |
|
|
|
1,460,760 |
|
|
PNC Financial Services Group, Inc. |
|
|
43,000 |
|
|
|
3,077,940 |
|
|
Procter & Gamble Co. |
|
|
25,400 |
|
|
|
1,554,226 |
|
|
R.H. Donnelley Corp.* |
|
|
20,000 |
|
|
|
1,515,600 |
|
|
Red Hat, Inc.* |
|
|
48,600 |
|
|
|
1,082,808 |
|
|
Sempra Energy |
|
|
44,200 |
|
|
|
2,617,966 |
|
|
Sprint Nextel Corp. |
|
|
360,153 |
|
|
|
7,458,769 |
|
|
Symantec Corp.* |
|
|
175,065 |
|
|
|
3,536,313 |
|
|
SYSCO Corp. |
|
|
103,800 |
|
|
|
3,424,362 |
|
|
UnitedHealth Group, Inc. |
|
|
20,700 |
|
|
|
1,058,598 |
|
|
Viacom, Inc., Class B* |
|
|
49,300 |
|
|
|
2,052,359 |
|
|
Wells Fargo & Co. |
|
|
218,000 |
|
|
|
7,667,060 |
|
|
Wyeth |
|
|
135,600 |
|
|
|
7,775,304 |
|
|
Xilinx, Inc. |
|
|
121,000 |
|
|
|
3,239,170 |
|
|
Yahoo!, Inc.* |
|
|
93,600 |
|
|
|
2,539,368 |
|
|
Total US equities (cost $158,707,302) |
|
|
222,450,599 |
|
|
International equities38.14% |
|
Australia1.52% |
|
National Australia Bank Ltd. |
|
|
63,453 |
|
|
|
2,206,690 |
|
|
QBE Insurance Group Ltd. |
|
|
150,745 |
|
|
|
3,987,410 |
|
|
|
|
|
6,194,100 |
|
|
Austria0.55% |
|
Telekom Austria AG |
|
|
90,449 |
|
|
|
2,264,737 |
|
|
Canada1.86% |
|
Canadian Pacific Railway Ltd. |
|
|
56,500 |
|
|
|
3,902,093 |
|
|
Jean Coutu Group, Inc., Class A |
|
|
86,100 |
|
|
|
1,252,805 |
|
|
Magna International, Inc., Class A |
|
|
10,100 |
|
|
|
924,431 |
|
|
Suncor Energy, Inc. |
|
|
16,800 |
|
|
|
1,513,380 |
|
|
|
|
|
7,592,709 |
|
|
Finland0.19% |
|
Stora Enso Oyj, Class R |
|
|
41,382 |
|
|
|
782,998 |
|
|
France4.34% |
|
AXA SA |
|
|
125,466 |
|
|
|
5,435,681 |
|
|
France Telecom SA |
|
|
223,322 |
|
|
|
6,166,005 |
|
|
Total SA |
|
|
74,662 |
|
|
|
6,089,350 |
|
|
|
|
|
17,691,036 |
|
|
Germany3.40% |
|
Allianz SE |
|
|
22,390 |
|
|
|
5,260,427 |
|
|
DaimlerChrysler AG |
|
|
29,068 |
|
|
|
2,698,474 |
|
|
Muenchener Rueckversicherungs- Gesellschaft AG |
|
|
17,650 |
|
|
|
3,253,360 |
|
|
Rhoen-Klinikum AG |
|
|
8,568 |
|
|
|
519,169 |
|
|
Siemens AG |
|
|
9,053 |
|
|
|
1,305,779 |
|
|
United Internet AG |
|
|
39,229 |
|
|
|
821,372 |
|
|
|
|
|
13,858,581 |
|
|
41
UBS Global Equity FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities(concluded) |
|
International equities(concluded) |
|
Hong Kong0.38% |
|
Esprit Holdings Ltd. |
|
|
122,200 |
|
|
$ |
1,550,317 |
|
|
Ireland1.43% |
|
Bank of Ireland |
|
|
206,605 |
|
|
|
4,177,665 |
|
|
Depfa Bank PLC |
|
|
94,257 |
|
|
|
1,671,195 |
|
|
|
|
|
5,848,860 |
|
|
Italy0.83% |
|
Intesa Sanpaolo SpA |
|
|
452,217 |
|
|
|
3,384,654 |
|
|
Japan7.33% |
|
Advantest Corp. |
|
|
19,000 |
|
|
|
828,670 |
|
|
Aiful Corp. |
|
|
30,650 |
|
|
|
881,226 |
|
|
Canon, Inc. |
|
|
33,800 |
|
|
|
1,984,764 |
|
|
Funai Electric Co., Ltd. |
|
|
3,700 |
|
|
|
216,065 |
|
|
Honda Motor Co., Ltd. |
|
|
55,100 |
|
|
|
2,013,807 |
|
|
Hoya Corp. |
|
|
23,500 |
|
|
|
780,629 |
|
|
Japan Tobacco, Inc. |
|
|
410 |
|
|
|
2,024,609 |
|
|
Keyence Corp. |
|
|
3,900 |
|
|
|
853,011 |
|
|
Mitsui Sumitomo Insurance Co., Ltd. |
|
|
93,000 |
|
|
|
1,194,932 |
|
|
Nissan Motor Co., Ltd. |
|
|
166,200 |
|
|
|
1,783,149 |
|
|
Nitto Denko Corp. |
|
|
20,800 |
|
|
|
1,050,770 |
|
|
Nomura Holdings, Inc. |
|
|
116,600 |
|
|
|
2,272,812 |
|
|
NTN Corp. |
|
|
144,000 |
|
|
|
1,243,224 |
|
|
NTT DoCoMo, Inc. |
|
|
2,556 |
|
|
|
4,048,081 |
|
|
Ricoh Co., Ltd. |
|
|
86,000 |
|
|
|
1,990,660 |
|
|
Sompo Japan Insurance, Inc. |
|
|
120,000 |
|
|
|
1,470,701 |
|
|
Sumitomo Mitsui Financial Group, Inc. |
|
|
148 |
|
|
|
1,382,335 |
|
|
Takefuji Corp. |
|
|
22,360 |
|
|
|
751,841 |
|
|
Toyota Motor Corp. |
|
|
39,400 |
|
|
|
2,496,000 |
|
|
West Japan Railway Co. |
|
|
136 |
|
|
|
634,022 |
|
|
|
|
|
29,901,308 |
|
|
Netherlands2.11% |
|
Aegon NV |
|
|
145,571 |
|
|
|
2,884,418 |
|
|
Arcelor Mittal |
|
|
10,365 |
|
|
|
653,027 |
|
|
ASML Holding NV* |
|
|
56,636 |
|
|
|
1,571,407 |
|
|
ING Groep NV CVA |
|
|
35,314 |
|
|
|
1,567,222 |
|
|
Reed Elsevier NV |
|
|
102,009 |
|
|
|
1,952,226 |
|
|
|
|
|
8,628,300 |
|
|
Norway0.26% |
|
Statoil ASA |
|
|
33,650 |
|
|
|
1,047,113 |
|
|
Spain0.84% |
|
Banco Bilbao Vizcaya Argentaria SA |
|
|
49,395 |
|
|
|
1,216,737 |
|
|
Banco Santander Central Hispano SA |
|
|
118,234 |
|
|
|
2,190,726 |
|
|
|
|
|
3,407,463 |
|
|
|
|
Shares |
|
Value |
|
Sweden0.73% |
|
Svenska Cellulosa AB, Class B |
|
|
100,500 |
|
|
$ |
1,689,891 |
|
|
Telefonaktiebolaget LM Ericsson, Class B |
|
|
325,000 |
|
|
|
1,304,904 |
|
|
|
|
|
2,994,795 |
|
|
Switzerland2.09% |
|
Holcim Ltd. |
|
|
12,227 |
|
|
|
1,329,304 |
|
|
Novartis AG |
|
|
41,506 |
|
|
|
2,344,588 |
|
|
Roche Holding AG |
|
|
27,244 |
|
|
|
4,848,830 |
|
|
|
|
|
8,522,722 |
|
|
United Kingdom10.28% |
|
Associated British Foods PLC |
|
|
59,824 |
|
|
|
1,066,777 |
|
|
Barclays PLC |
|
|
387,515 |
|
|
|
5,416,055 |
|
|
BP PLC |
|
|
739,340 |
|
|
|
8,952,552 |
|
|
British Sky Broadcasting Group PLC |
|
|
131,742 |
|
|
|
1,693,127 |
|
|
Experian Group Ltd. |
|
|
155,295 |
|
|
|
1,963,082 |
|
|
Home Retail Group PLC |
|
|
61,373 |
|
|
|
565,686 |
|
|
HSBC Holdings PLC |
|
|
90,522 |
|
|
|
1,663,262 |
|
|
Kingfisher PLC |
|
|
195,848 |
|
|
|
890,785 |
|
|
Prudential PLC |
|
|
202,880 |
|
|
|
2,908,860 |
|
|
Rentokil Initial PLC |
|
|
468,954 |
|
|
|
1,511,439 |
|
|
Rio Tinto PLC |
|
|
40,422 |
|
|
|
3,106,430 |
|
|
Royal Bank of Scotland Group PLC |
|
|
277,290 |
|
|
|
3,524,709 |
|
|
Tullow Oil PLC |
|
|
213,764 |
|
|
|
2,094,786 |
|
|
Vodafone Group PLC |
|
|
1,958,985 |
|
|
|
6,600,980 |
|
|
|
|
|
41,958,530 |
|
|
Total international equities (cost $113,577,150) |
|
|
155,628,223 |
|
|
Total equities (cost $272,284,452) |
|
|
378,078,822 |
|
|
Investment companies7.21% |
|
UBS Emerging Markets Equity Completion Relationship Fund(1) |
|
|
1,728,068 |
|
|
|
24,558,782 |
|
|
UBS Global ex U.S. Smaller Cap Equity Completion Relationship Fund(1) |
|
|
230,000 |
|
|
|
2,472,431 |
|
|
UBS U.S. Smaller Cap Equity Completion Relationship Fund(1) |
|
|
220,000 |
|
|
|
2,371,138 |
|
|
Total investment companies (cost $20,800,000) |
|
|
29,402,351 |
|
|
|
|
Number of warrants |
|
|
|
Warrants0.00%(2) |
|
Alcatel-Lucent, expires 12/10/07* (cost $0) |
|
|
1,067 |
|
|
|
181 |
|
|
42
UBS Global Equity FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Short-term investment0.33% |
|
Other0.33% |
|
UBS Supplementary Trust U.S. Cash Management Prime Fund, 5.37%(1),(3) (cost $1,330,406) |
|
|
1,330,406 |
|
|
$ |
1,330,406 |
|
|
Total investments100.19% (cost $294,414,858) |
|
|
408,811,760 |
|
|
Liabilities, in excess of cash and other assets(0.19)% |
|
|
(760,475 |
) |
|
Net assets100.00% |
|
$ |
408,051,285 |
|
|
Notes to portfolio of investments
Aggregate cost for federal income tax purposes was $297,905,388; and net unrealized appreciation consisted of:
Gross unrealized appreciation |
|
$ |
113,146,578 |
|
|
Gross unrealized depreciation |
|
|
(2,240,206 |
) |
|
Net unrealized appreciation |
|
$ |
110,906,372 |
|
|
* Non-income producing security.
(1) Investment in affiliated mutual fund.
(2) Amount represents less than 0.005%.
(3) The rate shown reflects the yield at June 30, 2007.
CVA Dutch certificationdepositary certificate
Forward foreign currency contracts
UBS Global Equity Fund had the following open forward foreign currency contracts as of June 30, 2007:
|
|
Contracts to deliver |
|
In exchange for |
|
Maturity date |
|
Unrealized appreciation/ (depreciation) |
|
Australian Dollar |
|
|
3,705,000 |
|
|
USD |
3,055,791 |
|
|
11/05/07 |
|
$ |
(73,781 |
) |
|
Euro |
|
|
5,760,000 |
|
|
JPY |
942,131,520 |
|
|
11/05/07 |
|
|
(50,017 |
) |
|
Euro |
|
|
20,305,000 |
|
|
USD |
27,521,803 |
|
|
11/05/07 |
|
|
(66,488 |
) |
|
Great Britain Pound |
|
|
13,090,000 |
|
|
USD |
25,837,435 |
|
|
11/05/07 |
|
|
(393,907 |
) |
|
Japanese Yen |
|
|
276,400,000 |
|
|
USD |
2,325,624 |
|
|
11/05/07 |
|
|
44,304 |
|
|
United States Dollar |
|
|
33,762,846 |
|
|
CHF |
40,640,000 |
|
|
11/05/07 |
|
|
(191,346 |
) |
|
United States Dollar |
|
|
2,193,504 |
|
|
HKD |
17,075,000 |
|
|
11/05/07 |
|
|
(3,095 |
) |
|
United States Dollar |
|
|
39,873,331 |
|
|
JPY |
4,677,700,000 |
|
|
11/05/07 |
|
|
(1,265,036 |
) |
|
United States Dollar |
|
|
23,726,866 |
|
|
SEK |
161,020,000 |
|
|
11/05/07 |
|
|
(50,368 |
) |
|
United States Dollar |
|
|
6,879,037 |
|
|
SGD |
10,320,000 |
|
|
11/05/07 |
|
|
(71,228 |
) |
|
Net unrealized depreciation on forward foreign currency contracts |
|
$ |
(2,120,962 |
) |
|
Currency type abbreviations:
CHF Swiss Franc
HKD Hong Kong Dollar
JPY Japanese Yen
SEK Swedish Krona
SGD Singapore Dollar
USD United States Dollar
See accompanying notes to financial statements.
43
UBS International Equity Fund
Portfolio performance
For the 12 months ended June 30, 2007, Class A shares of UBS International Equity Fund (the "Fund") returned 24.84% (Class A shares returned 17.96% after the deduction of the maximum sales charge), while Class Y shares returned 24.83%. The Fund's benchmark, the MSCI World Free ex USA Index (net US) (the "Index"), returned 27.15% over the same time period. (Class Y shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 47; please note that these returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.)
While we saw good results from stock selection over the reporting period, sector allocations were a detractor, leading to the Fund's underperformance versus the Index.
Portfolio performance summary
What worked
Stock selection in financials generated good performance, and more than compensated for the negative impact our overweight exposure to this sector had on the Fund.
In particular, we saw a solid contribution from ABN AMRO, the Fund's best stock performer during the period and the largest contributor to performance in this sector. We also benefited by not holding HSBC Holdings and Mitsubishi (for more on our position in ABN AMRO please refer to "Portfolio Highlights" on the following page).
In our opinion, banks remain particularly attractive. We believe the market is overly concerned about the impact of subprime, higher interest rates and the risk of a housing slowdown. The banks held by the Fund have what we view as minimal or manageable subprime exposure, conservative balance sheets and they hedge the risk from higher rates.
Insurance companies Allianz and QBE Insurance Group generated good performance during the period. We believe insurance companies are undergoing positive changethey appear to be better managed, with more sophisticated asset-liability management procedures in place. They also have stronger balance sheets than in the past, with less equity exposure. We find valuations in this sector attractive.
The Fund's overweight to the telecom sector, aided by strong stock selection, added to Fund performance. At the stock level, Vodafone was a primary contributor to performance (see "Portfolio Highlights" below). In telecoms, we believe the market is overly concerned about the risks associated with greater competition and further regulation in the industry, such as the European Commission's pledge to lower mobile roaming charges. We believe any impact from these developments will not be immediately felt. We also expect to see the continued consolidation of telecom companies, including the increasing integration of wireless and wireline capabilities and the buyout of smaller firms. We remain focused on companies that generate high free cash flow and have strong mark
et positions and acceptable debt loads.
An underweight to energy helped Fund performance. We continue to maintain an underweight based on our views of long-term stabilization of oil prices and on correcting supply-demand fundamentals.
44
UBS International Equity Fund
What didn't work
An underweight to the materials sector, combined with stock selection, was the largest detractor from performance. At the stock level, Nitto Denko Corp. was the Fund's largest underperformer during the period. (For more on this stock, refer to "Portfolio Highlights" below.)
We maintain our underweight to metals and mining within the materials sector as, in our view, most stocks remain expensive. We believe the current supply-demand imbalance impacting this sector will eventually correct. We expect that, as capacity additions are recognized and speculative flows leave the market, commodity prices and valuations will normalize. In anticipation of that, we hold what we believe are select market leaders and low-cost producers.
Stock selection in consumer discretionary hurt performance. Specifically, not holding auto stocks DaimlerChrysler, Volkswagen AG and Volvo AB detracted from returns over
the period. We subsequently purchased DaimlerChrysler, which has been additive to performance. We believe the Chrysler spin-off is key to unlocking value at the company, and we expect margins to increase in the Mercedes division.
Our underweight to utilities negatively impacted performance. In general, we continue to find little value in this area. Stocks have already performed well by association with the energy sector, due to low long-term interest rates in the US and Europe and the search for yield by aging investors.
Our overweight to healthcare, combined with poor stock selection in the sector, detracted from Fund performance over the period. Swiss companies Roche Holdings and Novartis AG ranked among the Fund's bottom contributors to performance over the period. We maintain conviction in these companies, which we believe are attractively valued and likely to return cash to shareholders via share buybacks.
Portfolio Highlights
ABN AMRO was the best performing stock for the period. Barclays and the Royal Bank of Scotland consortium's bids to acquire the bank boosted its stock price in recent months.
Vodafone was a top-performing stock in the Fund this year. We believe Vodafone offers long-term growth, is highly cash-generative, and intends to return a significant proportion of its free cash flow to shareholders via a large share buyback program.
An overweight to BP was our biggest disappointment this year. Although we expect oil prices to fall, an investment case for BP can be made on the basis that its assets and cash flow would still be very valuable, even if oil prices were to drop. BP has significant asset backing, with a resource base of approximately three barrels of oil for every share in issue. The company is carrying on with its aggressive share buyback program, which is value enhancing.
Nitto Denko, a chemical stock in the materials universe, underperformed as the cyclical supply-demand gap deteriorated; we are now observing signs of recovery here. We maintain conviction in the stock as we believe the long-term growth story is strongwe expect liquid crystal displays (LCDs) to experience double-digit growth on a value basis over the next few years and that this secular growth potential is large enough to ignore the short-term noise. We also expect management to maintain their competitiveness throughout the market expansion.
45
UBS International Equity Fund
Ilario Di Bon named lead portfolio manager for UBS International Equity Fund
Effective on July 1, 2007, Thomas Madsen, the lead portfolio manager for UBS International Equity Fund, was replaced by Ilario Di Bon. In this role, Mr. Di Bon is responsible for the day-to-day management of the Fund's portfolio. Mr. Di Bon has access to global analysts who are responsible for researching, projecting cash flow and providing a basis for determining which securities are attractively valued.
Mr. Di Bon works closely with the analysts to decide how to structure the UBS International Equity Fund. Ilario Di Bon is an Executive Director at UBS Global Asset Management and a member of the Global Equity Portfolio Management team. Mr. Di Bon has been an investment professional with UBS Global Asset Management since 2000 and portfolio manager of the Fund since 2007.
This letter is intended to assist shareholders in understanding how the Fund performed during the 12 months ended June 30, 2007. The views and opinions in the letter were current as of August 15, 2007. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. Mutual funds are sold by prospectus only. You should read it carefully and consider a fund's investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be
obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/globalam-us.
46
UBS International Equity Fund
Average annual total return (unaudited)
|
|
|
|
1 year ended 06/30/07 |
|
5 years ended 06/30/07 |
|
10 years ended 06/30/07 |
|
Inception(1) to 06/30/07 |
|
Before deducting |
|
Class A(2) |
|
|
24.84 |
% |
|
|
14.04 |
% |
|
|
6.21 |
% |
|
|
6.21 |
% |
|
maximum sales charge |
|
Class B(3) |
|
|
23.97 |
|
|
|
13.19 |
|
|
|
N/A |
|
|
|
13.00 |
|
|
|
|
Class C(4) |
|
|
23.85 |
|
|
|
13.12 |
|
|
|
N/A |
|
|
|
12.81 |
|
|
|
|
Class Y(5) |
|
|
24.83 |
|
|
|
14.25 |
|
|
|
6.44 |
|
|
|
7.46 |
|
|
After deducting maximum |
|
Class A(2) |
|
|
17.96 |
|
|
|
12.76 |
|
|
|
5.62 |
|
|
|
5.62 |
|
|
sales charge |
|
Class B(3) |
|
|
18.97 |
|
|
|
12.94 |
|
|
|
N/A |
|
|
|
12.89 |
|
|
|
|
Class C(4) |
|
|
22.85 |
|
|
|
13.12 |
|
|
|
N/A |
|
|
|
12.81 |
|
|
MSCI World Free ex USA Index (net US)(6) |
|
|
27.15 |
|
|
|
18.17 |
|
|
|
7.94 |
|
|
|
8.36 |
|
|
The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2006 prospectuses were as follows: Class A1.48% and 1.25%; Class B2.22% and 2.00%; Class C2.17% and 2.00%; Class Y1.19% and 1.00%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses.The Advisor has agreed irrevocably to waive its fees and reimburse certain expenses so that total operating expenses of the Fund do not exceed 1.25% for Class A shares, 2.00% for Class B shares, 2.00% for Class C shares and 1.00% for Class Y shares.
(1) Inception date of UBS International Equity Fund Class A shares is 06/30/97. Inception dates of Class B and Class C shares are 02/12/02 and 01/25/02, respectively. Inception date of Class Y shares and the Index is 08/31/93.
(2) Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.
(3) Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.
(4) Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.
(5) The Fund offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.
(6) The MSCI World Free ex USA Index (net US) is an unmanaged, market driven broad-based securities index which includes non-US equity markets in terms of capitalization and performance. This benchmark has been calculated net of withholding tax from a US perspective.
If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectus.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
47
UBS International Equity Fund
Illustration of an assumed investment of $10,000 in Class A shares (adjusted for maximum sales
charge) and $10,000,000 in Class Y shares (unaudited)
The following two charts show the growth in the value of an investment in UBS International Equity Fund Class A shares (adjusted for 5.50% maximum sales charge), Class Y shares and the MSCI World Free ex USA Index (net US), if you had invested $10,000 in Class A shares on June 30, 1997 or $10,000,000 in Class Y shares on August 31, 1993, and had reinvested all your income dividends and capital gain distributions through June 30, 2007. The performance of Class B and Class C shares will vary based upon the different inception dates, class specific expenses and sales charges. No adjustment has been made for any income taxes payable by shareholders on income dividends and capital gain distributions. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption.
UBS International Equity Fund Class A vs. MSCI World Free ex USA Index (net US)
Wealth value with dividends reinvested
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.50%.
UBS International Equity Fund Class Y vs. MSCI World Free ex USA Index (net US)
Wealth value with dividends reinvested
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
48
UBS International Equity Fund
Top ten international equity holdings (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
Vodafone Group PLC |
|
|
3.2 |
% |
|
BP PLC |
|
|
3.1 |
|
|
Total SA |
|
|
2.7 |
|
|
ABN AMRO Holding NV |
|
|
2.5 |
|
|
Roche Holding AG |
|
|
2.4 |
|
|
Allianz SE |
|
|
2.2 |
|
|
Novartis AG |
|
|
2.1 |
|
|
Banco Santander Central Hispano SA |
|
|
2.0 |
|
|
Siemens AG |
|
|
1.9 |
|
|
Credit Suisse Group |
|
|
1.8 |
|
|
Total |
|
|
23.9 |
% |
|
Country exposure, top five (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
United Kingdom |
|
|
19.9 |
% |
|
Japan |
|
|
16.3 |
|
|
Germany |
|
|
9.2 |
|
|
Switzerland |
|
|
8.5 |
|
|
France |
|
|
7.0 |
|
|
Total |
|
|
60.9 |
% |
|
(1) Figures represent the direct investments of the UBS International Equity Fund. Figures could be different if a breakdown of the underlying investment companies was included.
Industry diversification (unaudited)(2)
As a percentage of net assets as of June 30, 2007
International equities |
|
Air freight & logistics |
|
|
0.61 |
% |
|
Airlines |
|
|
1.46 |
|
|
Auto components |
|
|
1.65 |
|
|
Automobiles |
|
|
3.38 |
|
|
Beverages |
|
|
1.76 |
|
|
Capital markets |
|
|
2.25 |
|
|
Chemicals |
|
|
1.56 |
|
|
Commercial banks |
|
|
18.19 |
|
|
Commercial services & supplies |
|
|
0.75 |
|
|
Communications equipment |
|
|
1.47 |
|
|
Construction & engineering |
|
|
0.25 |
|
|
Construction materials |
|
|
1.25 |
|
|
Consumer finance |
|
|
0.49 |
|
|
Diversified financial services |
|
|
0.82 |
|
|
Diversified telecommunication services |
|
|
3.45 |
|
|
Electric utilities |
|
|
1.28 |
|
|
Electronic equipment & instruments |
|
|
0.41 |
|
|
Food & staples retailing |
|
|
1.76 |
|
|
Food products |
|
|
1.29 |
|
|
Gas utilities |
|
|
0.34 |
|
|
Health care equipment & supplies |
|
|
0.41 |
|
|
Hotels, restaurants & leisure |
|
|
0.58 |
|
|
Household durables |
|
|
0.58 |
|
|
Household products |
|
|
0.68 |
|
|
Industrial conglomerates |
|
|
1.95 |
|
|
Insurance |
|
|
8.29 |
|
|
Internet & catalog retail |
|
|
0.18 |
|
|
Machinery |
|
|
2.47 |
|
|
Media |
|
|
1.59 |
% |
|
Metals & mining |
|
|
1.25 |
|
|
Office electronics |
|
|
0.98 |
|
|
Oil, gas & consumable fuels |
|
|
6.84 |
|
|
Paper & forest products |
|
|
0.95 |
|
|
Pharmaceuticals |
|
|
6.48 |
|
|
Real estate management & development |
|
|
0.82 |
|
|
Road & rail |
|
|
1.59 |
|
|
Semiconductors & semiconductor equipment |
|
|
1.87 |
|
|
Software |
|
|
0.68 |
|
|
Specialty retail |
|
|
2.22 |
|
|
Textiles, apparel & luxury goods |
|
|
0.22 |
|
|
Tobacco |
|
|
0.63 |
|
|
Trading companies & distributors |
|
|
1.73 |
|
|
Wireless telecommunication services |
|
|
4.05 |
|
|
Total international equities |
|
|
91.46 |
|
|
Investment companies |
|
iShares MSCI EAFE Index Fund |
|
|
1.42 |
|
|
UBS Emerging Markets Equity Completion Relationship Fund |
|
|
5.23 |
|
|
UBS Global ex U.S. Smaller Cap Equity Completion Relationship Fund |
|
|
1.34 |
|
|
Total investment companies |
|
|
7.99 |
|
|
Investment of cash collateral from securities loaned |
|
|
3.02 |
|
|
Total investments |
|
|
102.47 |
|
|
Liabilities, in excess of cash and other assets |
|
|
(2.47 |
) |
|
Net assets |
|
|
100.00 |
% |
|
(2) Figures represent the industry breakdown of direct investments of the UBS International Equity Fund. Figures would be different if a breakdown of the underlying investment companies' industry diversification was included.
49
UBS International Equity FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
International equities91.46% |
|
Australia3.49% |
|
National Australia Bank Ltd. |
|
|
45,536 |
|
|
$ |
1,583,594 |
|
|
Qantas Airways Ltd. |
|
|
620,749 |
|
|
|
2,947,118 |
|
|
QBE Insurance Group Ltd. |
|
|
95,428 |
|
|
|
2,524,200 |
|
|
|
|
|
7,054,912 |
|
|
Austria0.44% |
|
Telekom Austria AG |
|
|
35,582 |
|
|
|
890,931 |
|
|
Belgium1.12% |
|
KBC Groep NV |
|
|
16,738 |
|
|
|
2,265,858 |
|
|
Canada3.91% |
|
Alcan, Inc. |
|
|
17,840 |
|
|
|
1,455,335 |
|
|
Canadian Pacific Railway Ltd. |
|
|
29,700 |
|
|
|
2,051,189 |
|
|
Cott Corp.*(1) |
|
|
25,300 |
|
|
|
367,180 |
|
|
Magna International, Inc., Class A |
|
|
7,800 |
|
|
|
713,917 |
|
|
Manulife Financial Corp.(1) |
|
|
25,900 |
|
|
|
968,652 |
|
|
Toronto-Dominion Bank(1) |
|
|
34,200 |
|
|
|
2,339,180 |
|
|
|
|
|
7,895,453 |
|
|
Denmark0.56% |
|
Novo-Nordisk A/S, Class B |
|
|
10,400 |
|
|
|
1,134,876 |
|
|
Finland1.61% |
|
Nokia Oyj |
|
|
47,143 |
|
|
|
1,327,796 |
|
|
Stora Enso Oyj, Class R |
|
|
101,397 |
|
|
|
1,918,556 |
|
|
|
|
|
3,246,352 |
|
|
France6.96% |
|
AXA SA |
|
|
77,009 |
|
|
|
3,336,333 |
|
|
Compagnie Generale des Etablissements Michelin, Class B |
|
|
7,637 |
|
|
|
1,073,425 |
|
|
France Telecom SA |
|
|
128,635 |
|
|
|
3,551,661 |
|
|
Sanofi-Aventis(1) |
|
|
7,684 |
|
|
|
625,035 |
|
|
Total SA(1) |
|
|
66,997 |
|
|
|
5,464,201 |
|
|
|
|
|
14,050,655 |
|
|
Germany9.18% |
|
Allianz SE |
|
|
18,987 |
|
|
|
4,460,908 |
|
|
DaimlerChrysler AG |
|
|
16,600 |
|
|
|
1,541,030 |
|
|
Deutsche Postbank AG |
|
|
10,255 |
|
|
|
903,147 |
|
|
E.ON AG |
|
|
8,797 |
|
|
|
1,479,834 |
|
|
Henkel KGaA, Preference shares |
|
|
25,770 |
|
|
|
1,363,397 |
|
|
IKB Deutsche Industriebank AG |
|
|
15,968 |
|
|
|
584,602 |
|
|
MAN AG |
|
|
8,125 |
|
|
|
1,174,016 |
|
|
Metro AG |
|
|
14,175 |
|
|
|
1,179,503 |
|
|
Muenchener Rueckversicherungs- Gesellschaft AG |
|
|
2,938 |
|
|
|
541,551 |
|
|
SAP AG |
|
|
26,559 |
|
|
|
1,368,475 |
|
|
Siemens AG |
|
|
27,260 |
|
|
|
3,931,905 |
|
|
|
|
|
18,528,368 |
|
|
|
|
Shares |
|
Value |
|
Greece0.76% |
|
Alpha Bank AE |
|
|
25,597 |
|
|
$ |
807,211 |
|
|
National Bank of Greece SA |
|
|
12,514 |
|
|
|
718,132 |
|
|
|
|
|
1,525,343 |
|
|
Hong Kong1.21% |
|
Esprit Holdings Ltd. |
|
|
93,000 |
|
|
|
1,179,865 |
|
|
Sun Hung Kai Properties Ltd. |
|
|
68,000 |
|
|
|
818,345 |
|
|
Yue Yuen Industrial Holdings Ltd. |
|
|
145,000 |
|
|
|
449,694 |
|
|
|
|
|
2,447,904 |
|
|
Ireland2.24% |
|
Bank of Ireland |
|
|
99,546 |
|
|
|
2,012,874 |
|
|
CRH PLC |
|
|
26,686 |
|
|
|
1,323,009 |
|
|
Depfa Bank PLC |
|
|
55,572 |
|
|
|
985,302 |
|
|
Irish Life & Permanent PLC |
|
|
7,567 |
|
|
|
191,415 |
|
|
|
|
|
4,512,600 |
|
|
Italy3.11% |
|
Fiat SpA |
|
|
38,425 |
|
|
|
1,147,779 |
|
|
Intesa Sanpaolo SpA |
|
|
480,051 |
|
|
|
3,592,980 |
|
|
UniCredito Italiano SpA |
|
|
172,017 |
|
|
|
1,543,573 |
|
|
|
|
|
6,284,332 |
|
|
Japan16.30% |
|
Aeon Co., Ltd. |
|
|
40,400 |
|
|
|
751,399 |
|
|
Aiful Corp.(1) |
|
|
17,550 |
|
|
|
504,585 |
|
|
Asahi Breweries Ltd. |
|
|
71,300 |
|
|
|
1,106,634 |
|
|
Bank of Yokohama Ltd. |
|
|
118,000 |
|
|
|
828,036 |
|
|
Bridgestone Corp. |
|
|
47,200 |
|
|
|
1,012,045 |
|
|
Canon, Inc. |
|
|
33,700 |
|
|
|
1,978,891 |
|
|
East Japan Railway Co. |
|
|
150 |
|
|
|
1,157,360 |
|
|
Fast Retailing Co., Ltd. |
|
|
6,500 |
|
|
|
462,985 |
|
|
Funai Electric Co., Ltd. |
|
|
5,900 |
|
|
|
344,536 |
|
|
Honda Motor Co., Ltd. |
|
|
53,100 |
|
|
|
1,940,711 |
|
|
Hoya Corp. |
|
|
24,800 |
|
|
|
823,813 |
|
|
Japan Tobacco, Inc. |
|
|
256 |
|
|
|
1,264,146 |
|
|
KDDI Corp. |
|
|
95 |
|
|
|
704,447 |
|
|
Kubota Corp. |
|
|
95,000 |
|
|
|
771,574 |
|
|
Mitsubishi Corp. |
|
|
68,800 |
|
|
|
1,804,865 |
|
|
Mitsui Fudosan Co., Ltd. |
|
|
30,000 |
|
|
|
843,046 |
|
|
Mitsui Sumitomo Insurance Co., Ltd. |
|
|
109,000 |
|
|
|
1,400,512 |
|
|
Nitto Denko Corp. |
|
|
25,600 |
|
|
|
1,293,255 |
|
|
NOK Corp. |
|
|
25,300 |
|
|
|
534,254 |
|
|
Nomura Holdings, Inc. |
|
|
43,100 |
|
|
|
840,122 |
|
|
NTN Corp. |
|
|
71,000 |
|
|
|
612,979 |
|
|
NTT DoCoMo, Inc. |
|
|
631 |
|
|
|
999,350 |
|
|
Rohm Co., Ltd. |
|
|
13,800 |
|
|
|
1,227,289 |
|
|
Shin-Etsu Chemical Co., Ltd. |
|
|
18,000 |
|
|
|
1,287,959 |
|
|
SMC Corp. |
|
|
5,000 |
|
|
|
665,990 |
|
|
Sompo Japan Insurance, Inc. |
|
|
59,000 |
|
|
|
723,094 |
|
|
Sumitomo Mitsui Financial Group, Inc. |
|
|
212 |
|
|
|
1,980,101 |
|
|
Sumitomo Trust & Banking Co., Ltd. |
|
|
82,000 |
|
|
|
782,538 |
|
|
Taiheiyo Cement Corp. |
|
|
600 |
|
|
|
2,661 |
|
|
Takefuji Corp. |
|
|
14,410 |
|
|
|
484,527 |
|
|
50
UBS International Equity FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
International equities(concluded) |
|
Japan(concluded) |
|
Tokyo Gas Co., Ltd. |
|
|
144,000 |
|
|
$ |
683,013 |
|
|
Toyota Motor Corp. |
|
|
34,700 |
|
|
|
2,198,254 |
|
|
Yamada Denki Co., Ltd. |
|
|
8,460 |
|
|
|
884,993 |
|
|
|
|
|
32,899,964 |
|
|
Netherlands6.96% |
|
ABN AMRO Holding NV(1) |
|
|
107,425 |
|
|
|
4,950,678 |
|
|
ASML Holding NV* |
|
|
54,721 |
|
|
|
1,518,274 |
|
|
ING Groep NV CVA |
|
|
37,493 |
|
|
|
1,663,925 |
|
|
Koninklijke Philips Electronics NV |
|
|
19,197 |
|
|
|
819,997 |
|
|
Reed Elsevier NV |
|
|
64,680 |
|
|
|
1,237,832 |
|
|
Royal KPN NV |
|
|
95,989 |
|
|
|
1,600,569 |
|
|
STMicroelectronics NV |
|
|
52,676 |
|
|
|
1,023,074 |
|
|
TNT NV |
|
|
27,193 |
|
|
|
1,230,370 |
|
|
|
|
|
14,044,719 |
|
|
Norway1.44% |
|
Statoil ASA(1) |
|
|
63,950 |
|
|
|
1,989,982 |
|
|
Telenor ASA* |
|
|
47,000 |
|
|
|
922,553 |
|
|
|
|
|
2,912,535 |
|
|
Spain2.05% |
|
Banco Santander Central Hispano SA |
|
|
222,813 |
|
|
|
4,128,442 |
|
|
Sweden1.69% |
|
Sandvik AB |
|
|
86,700 |
|
|
|
1,762,092 |
|
|
Telefonaktiebolaget LM Ericsson, Class B |
|
|
410,000 |
|
|
|
1,646,187 |
|
|
|
|
|
3,408,279 |
|
|
Switzerland8.52% |
|
Clariant AG* |
|
|
35,004 |
|
|
|
570,266 |
|
|
Credit Suisse Group |
|
|
51,739 |
|
|
|
3,699,879 |
|
|
Holcim Ltd. |
|
|
11,082 |
|
|
|
1,204,822 |
|
|
Nestle SA |
|
|
4,610 |
|
|
|
1,758,706 |
|
|
Novartis AG |
|
|
74,885 |
|
|
|
4,230,098 |
|
|
Roche Holding AG |
|
|
27,515 |
|
|
|
4,897,062 |
|
|
Straumann Holding AG |
|
|
2,954 |
|
|
|
831,908 |
|
|
|
|
|
17,192,741 |
|
|
United Kingdom19.91% |
|
AstraZeneca PLC |
|
|
23,579 |
|
|
|
1,270,373 |
|
|
Balfour Beatty PLC |
|
|
56,994 |
|
|
|
507,012 |
|
|
Barclays PLC |
|
|
250,691 |
|
|
|
3,503,752 |
|
|
BP PLC |
|
|
524,225 |
|
|
|
6,347,758 |
|
|
British Sky Broadcasting Group PLC |
|
|
85,764 |
|
|
|
1,102,225 |
|
|
|
|
Shares |
|
Value |
|
United Kingdom(concluded) |
|
Cadbury Schweppes PLC |
|
|
62,543 |
|
|
$ |
854,030 |
|
|
Carnival PLC |
|
|
24,518 |
|
|
|
1,174,245 |
|
|
Diageo PLC |
|
|
99,671 |
|
|
|
2,075,549 |
|
|
Experian Group Ltd. |
|
|
86,080 |
|
|
|
1,088,136 |
|
|
GlaxoSmithKline PLC |
|
|
35,482 |
|
|
|
929,831 |
|
|
Home Retail Group PLC |
|
|
39,055 |
|
|
|
359,977 |
|
|
Kesa Electricals PLC |
|
|
122,684 |
|
|
|
775,424 |
|
|
Kingfisher PLC |
|
|
260,564 |
|
|
|
1,185,135 |
|
|
Prudential PLC |
|
|
180,320 |
|
|
|
2,585,398 |
|
|
Rentokil Initial PLC |
|
|
128,953 |
|
|
|
415,616 |
|
|
Rio Tinto PLC |
|
|
13,955 |
|
|
|
1,072,442 |
|
|
Royal Bank of Scotland Group PLC |
|
|
251,400 |
|
|
|
3,195,614 |
|
|
Scottish & Southern Energy PLC |
|
|
38,038 |
|
|
|
1,106,806 |
|
|
Tesco PLC |
|
|
192,515 |
|
|
|
1,617,876 |
|
|
Vodafone Group PLC |
|
|
1,918,708 |
|
|
|
6,465,263 |
|
|
Wolseley PLC |
|
|
69,732 |
|
|
|
1,683,146 |
|
|
WPP Group PLC |
|
|
58,180 |
|
|
|
874,482 |
|
|
|
|
|
40,190,090 |
|
|
Total international equities (cost $121,682,891) |
|
|
184,614,354 |
|
|
Investment companies7.99% |
|
iShares MSCI EAFE Index Fund |
|
|
35,700 |
|
|
|
2,883,489 |
|
|
UBS Emerging Markets Equity Completion Relationship Fund(2) |
|
|
742,115 |
|
|
|
10,546,716 |
|
|
UBS Global ex U.S. Smaller Cap Equity Completion Relationship Fund(2) |
|
|
250,000 |
|
|
|
2,687,425 |
|
|
Total investment companies (cost $12,336,797) |
|
|
16,117,630 |
|
|
Investment of cash collateral from securities loaned3.02% |
|
UBS Supplementary Trust U.S. Cash Management Prime Fund, 5.37%(2),(3) (cost $6,089,234) |
|
|
6,089,234 |
|
|
|
6,089,234 |
|
|
Total investments102.47% (cost $140,108,922) |
|
|
206,821,218 |
|
|
Liabilities, in excess of cash and other assets(2.47)% |
|
|
(4,975,980 |
) |
|
Net assets100.00% |
|
$ |
201,845,238 |
|
|
51
UBS International Equity FundPortfolio of investments
June 30, 2007
Notes to portfolio of investments
Aggregate cost for federal income tax purposes was $141,663,092; and net unrealized appreciation consisted of:
Gross unrealized appreciation |
|
$ |
66,752,798 |
|
|
Gross unrealized depreciation |
|
|
(1,594,672 |
) |
|
Net unrealized appreciation |
|
$ |
65,158,126 |
|
|
* Non-inome producing security.
(1) Security, or portion thereof, was on loan at June 30, 2007.
(2) Investment in affiliated mutual fund.
(3) The rate shown reflects the yield at June 30, 2007.
CVA Dutch certificationdepositary certificate
Preference sharesA special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
Forward foreign currency contracts
UBS International Equity Fund had the following open forward foreign currency contracts as of June 30, 2007:
|
|
Contracts to deliver |
|
In exchange for |
|
Maturity date |
|
Unrealized appreciation/ (depreciation) |
|
Australian Dollar |
|
|
4,400,000 |
|
|
USD |
3,655,342 |
|
|
11/05/07 |
|
$ |
(61,289 |
) |
|
Euro |
|
|
2,735,000 |
|
|
JPY |
447,348,908 |
|
|
11/05/07 |
|
|
(23,749 |
) |
|
Euro |
|
|
19,195,000 |
|
|
USD |
26,017,287 |
|
|
11/05/07 |
|
|
(62,853 |
) |
|
Great Britain Pound |
|
|
5,895,000 |
|
|
USD |
11,635,728 |
|
|
11/05/07 |
|
|
(177,393 |
) |
|
Japanese Yen |
|
|
141,100,000 |
|
|
USD |
1,194,750 |
|
|
11/05/07 |
|
|
30,154 |
|
|
Norwegian Krone |
|
|
7,320,000 |
|
|
USD |
1,212,169 |
|
|
11/05/07 |
|
|
(31,181 |
) |
|
United States Dollar |
|
|
9,558,161 |
|
|
CHF |
11,505,000 |
|
|
11/05/07 |
|
|
(54,222 |
) |
|
United States Dollar |
|
|
1,064,825 |
|
|
DKK |
5,860,000 |
|
|
11/05/07 |
|
|
4,480 |
|
|
United States Dollar |
|
|
18,348,194 |
|
|
JPY |
2,152,500,000 |
|
|
11/05/07 |
|
|
(582,122 |
) |
|
United States Dollar |
|
|
1,044,225 |
|
|
JPY |
126,700,000 |
|
|
11/05/07 |
|
|
1,518 |
|
|
United States Dollar |
|
|
12,206,766 |
|
|
SEK |
82,840,000 |
|
|
11/05/07 |
|
|
(25,913 |
) |
|
United States Dollar |
|
|
3,929,450 |
|
|
SGD |
5,895,000 |
|
|
11/05/07 |
|
|
(40,687 |
) |
|
Net unrealized depreciation on forward foreign currency contracts |
|
$ |
(1,023,257 |
) |
|
Currency type abbreviations:
CHF Swiss Franc
DKK Danish Krone
JPY Japanese Yen
SEK Swedish Krona
SGD Singapore Dollar
USD United States Dollar
See accompanying notes to financial statements.
52
UBS U.S. Equity Alpha Fund
Portfolio performance
Since its inception on September 26, 2006 through June 30, 2007, Class A shares of UBS U.S. Equity Alpha Fund (the "Fund") returned 15.73% (Class A shares returned 9.38% after the deduction of the maximum sales charge), while Class Y shares returned 15.88%. The Fund's benchmark, the Russell 1000 Index (the "Index"), returned 14.58% over the same time period. (Class Y shares have lower expenses than other share classes of the Fund. Returns for all share classes over the period are shown on page 56; please note that these returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.)
The Fund is a core equity fund that has the flexibility to invest in both long and short positions as it seeks to maximize total returns. During the period, the Fund's outperformance versus the benchmark was primarily due to stock selection, with industry exposure slightly detracting from performance. (When shorting an investment, we first borrow the security, then sell it and buy an equal number of shares laterhopefully at a lower priceto replace those we borrowed.)
Portfolio performance summary
What worked
Stock selection was strong during the period, and the largest contributor to performance overall. In our opinion, the US equity market, despite some volatility, was at or near fair value for most of the period. Careful research and analysis helped us to identify a number of price-to-intrinsic-value discrepancies, on both the long and the short side, which provided what we viewed as attractive investment opportunities.
We saw generally positive results from our drug stocks over the period. The Fund's short position in Pfizer generated strong results when the company had to halt development of its cholesterol treatment drug due to serious complications arising during its trial. We ultimately closed our short position in Pfizer, as we believed our thesis had played out, and the stock achieved what we believe to be its fair value.
Among our long positions, Wyeth, which we believe has the least number of patents expiring over the next five years among big pharmaceutical companies, has been one of the Fund's strongest performers. We continue to view the company favorably, and increased our position in the company as the period grew to a close.
While the banking sector as a whole accounted for the largest drag on Fund performance, we did generate strong relative performance from several of our bank stocks. These included Citigroup and JPMorgan Chase and Co. (For more on these two stocks, see "Portfolio Highlights.")
Automotive parts supplies were one of the better performing industries over the period. Johnson Controls was a top contributor to Fund performance, as rising energy costs have increased demand for the company's efficiency-improving products. Trucking manufacturer Paccar was also a strong performer. (For more informatio
n, see "Portfolio Highlights.")
In transportation, an overweight to rail stocks was the biggest contributor to performance, despite a decline in freight volume that has hurt the industry so far this year. In our view, these stocks continue to provide us with an attractive opportunity: pricing power is still strong and, we believe, sustainable because the excess capacity that had been in rail space for decades is gone. Additionally, rails
53
UBS U.S. Equity Alpha Fund
continue to gain share from trucking because, while rail rates are increasing, trucking rates are rising more rapidly.
We also generated positive results from our positioning in airlines stocks; we held a short position in US Airways and a long position in Southwest Airlines, both of which we have since closed. In the case of the former, our short position added to performance when US Airways' shares traded lower for a number of reasons, including climbing oil prices.
The portfolio also benefited by what we did not own. The portfolio's underweight position in REITs had a positive impact on results, as the industry generally underperformed other sectors of the market.
What didn't work
Industry selection on the whole detracted from Fund performance. Our overweight to banks and our underweights to materials, energy, food and beverage, and retailers had the biggest negative impact on performance.
The largest detractor from performance was our overweight to banksthe largest position in the Fund's portfolio. The financial sector in general underperformed during the period as investors' focus on subprime lending (which relies on risk-based pricing to serve borrowers who cannot obtain credit in the prime market) issues and levered debt weighed heavily on stock prices.
We continue to find what we view to be very attractive valuations in this space and, in many cases, believe the underlying balance sheets are strong. We continue to maintain an overweight in financials in general, but there are some sub-components where we continue to take a cautious stance. For example, we have shorted some regional banks and utilized the proceeds to increase our overweight to diversified financials, which we view as being more attractively priced.
In the materials sector, an underweight to metals and mining stocks detracted from performance, as commodities prices in general surged. Our short position in Freeport-McMoRan Copper & Gold hurt performance when its stock price rose during the period, making it one of the largest detractors to performance in the portfolio at the stock level. However, we continue to short this stock, and believe the company is currently over-earning and over-levered to rising demand for materials from China. In general, we believe the market is overestimating the demand surge for commodities and underestimating the supply respon
se, and that earnings for companies in this space will collapse over time.
In energy, limited exposure to integrated oil companies hurt Fund performance during the period. However, we believe our bearish view on long-run oil prices will be borne out by the market, causing these stocks to underperform other opportunities.
Portfolio Highlights
Johnson Controls was a top stock-specific contributor to relative results during the period. Rising energy costs increased demand for the company's building efficiency products. Building products growth was also being driven by the company's exposure to emerging markets. We believe the diversification that Johnson Controls retains in terms of customer, geography, product, and business line will enable the company to continue to produce solid results.
54
UBS U.S. Equity Alpha Fund
Citigroup's product depth, geographic reach and strong market positions within businesses that possess superior secular growth characteristics will lead to above-average earnings growth and profitability over the long term. In addition, Citi's strong balance sheet provides management with the financial strength and flexibility to exploit opportunities that are unavailable to many of their competitors. We remain confident in our overweight position and feel that the stock is currently pricing in continued legal issues and growth that is slower than what will likely occur.
A long position in JPMorgan Chase added to the Fund's returns for the period. Strong performance in the stock led us to reduce the position, taking profits and redeploying the assets into higher return opportunities. We continue to hold a reduced position in JPMorgan Chase, since the bank's success should continue with the diversified business operations it maintains.
Among our short positions, Nucor Corp. was one of the largest contributors to performance during the period. Toward period-end, the company's shares fell despite news that first-quarter sales and profits beat analyst expectations. We continue to short Nucor and remain confident in our thesis that the company is currently over-earning and over-levered to rising demand for materials from China. We believe the market is overestimating the demand surge, underestimating the supply response, and that earnings will fall over time.
Sprint stock detracted from performance during the period. The integration of the Sprint/Nextel merger has seen a larger number of customer defections. Yet, despite this news, net income and revenues have increased. We expect the merger to yield significant long-term benefits for the combined company.
This letter is intended to assist shareholders in understanding how the Fund performed for the period since its inception date on September 26, 2006 through June 30, 2007. The views and opinions in the letter were current as of August 15, 2007. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. Mutual funds are sold by prospectus only. You should read it carefully and consider a fund's investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing.
Prospectuses for most of our funds can be obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/globalam-us.
55
UBS U.S. Equity Alpha Fund
Total return (unaudited)
|
|
|
|
Inception(1) to 06/30/07 |
|
Before deducting maximum |
|
Class A(2) |
|
|
15.73 |
% |
|
sales charge |
|
Class C(3) |
|
|
15.12 |
|
|
|
|
Class Y(4) |
|
|
15.88 |
|
|
After deducting maximum sales charge |
|
Class A(2) |
|
|
9.38 |
|
|
|
|
Class C(3) |
|
|
14.12 |
|
|
Russell 1000 Index(5) |
|
|
14.58 |
|
|
The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2006 prospectuses were as follows: Class A2.18% and 2.07%; Class C2.95% and 2.82%; Class Y1.86% and 1.82%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. 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 management fees and/or to reimburse expenses (excluding securities loan fees and dividend expense for securities sold short) to the extent necessary so the Fund's operating expenses (excluding securities loan fees and dividend expense for securities sold short), through the fiscal year ending June 30, 2007, do not exceed Class A1.50%; Class C2.25%; Class Y1.25%. 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.
(1) Inception date of UBS U.S. Equity Alpha Fund Class A, Class C and Class Y shares and the Index is 09/26/2006.
(2) Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.
(3) Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.
(4) The Fund offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.
(5) The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index.
If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectus.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for periods of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
56
UBS U.S. Equity Alpha Fund
Illustration of an assumed investment of $10,000 in Class A shares (adjusted for maximum sales
charge) and $5,000,000 in Class Y shares (unaudited)
The following two charts show the growth in the value of an investment in UBS U.S. Equity Alpha Fund Class A shares (adjusted for 5.50% maximum sales charge), Class Y shares and the Russell 1000 Index, if you had invested $10,000 in Class A shares on September 26, 2006 or $5,000,000 in Class Y shares on September 26, 2006, and had reinvested all your income dividends and capital gain distributions through June 30, 2007. The performance of Class C shares will vary based upon the class specific expenses and sales charges. No adjustment has been made for any income taxes payable by shareholders on income dividends and capital gain distributions. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption.
UBS U.S. Equity Alpha Fund Class A vs. Russell 1000 Index
Wealth value with dividends reinvested
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.50%.
UBS U.S. Equity Alpha Fund Class Y vs. Russell 1000 Index
Wealth value with dividends reinvested
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Total returns for periods of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com/globalam-us.
57
UBS U.S. Equity Alpha Fund
Top ten equity holdings (unaudited)*(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
Morgan Stanley |
|
|
4.5 |
% |
|
Citigroup, Inc. |
|
|
4.4 |
|
|
Wells Fargo & Co. |
|
|
4.3 |
|
|
Bank of New York Co., Inc. |
|
|
3.4 |
|
|
Microsoft Corp. |
|
|
3.3 |
|
|
General Electric Co. |
|
|
3.1 |
|
|
Wyeth |
|
|
3.0 |
|
|
Intel Corp. |
|
|
3.0 |
|
|
JPMorgan Chase & Co. |
|
|
2.9 |
|
|
Johnson Controls, Inc. |
|
|
2.9 |
|
|
Total |
|
|
34.8 |
% |
|
* Top ten holdings are all long positions
(1) Figures represent the direct investments of the UBS U.S. Equity Alpha Fund. Figures could be different if a breakdown of the underlying investment company was included.
58
UBS U.S. Equity Alpha Fund
Industry diversification (unaudited)(1)
As a percentage of net assets as of June 30, 2007
Equities |
|
Air freight & logistics |
|
|
2.74 |
% |
|
Auto components |
|
|
4.85 |
|
|
Automobiles |
|
|
0.85 |
|
|
Beverages |
|
|
1.51 |
|
|
Biotechnology |
|
|
3.22 |
|
|
Building products |
|
|
1.89 |
|
|
Capital markets |
|
|
8.36 |
|
|
Commercial banks |
|
|
9.00 |
|
|
Computers & peripherals |
|
|
0.93 |
|
|
Diversified financial services |
|
|
7.32 |
|
|
Diversified telecommunication services |
|
|
2.21 |
|
|
Electric utilities |
|
|
3.24 |
|
|
Energy equipment & services |
|
|
2.16 |
|
|
Food & staples retailing |
|
|
2.83 |
|
|
Health care equipment & supplies |
|
|
0.67 |
|
|
Health care providers & services |
|
|
2.71 |
|
|
Hotels, restaurants & leisure |
|
|
2.78 |
|
|
Household durables |
|
|
1.08 |
|
|
Industrial conglomerates |
|
|
3.12 |
|
|
Insurance |
|
|
3.19 |
|
|
Internet & catalog retail |
|
|
1.20 |
|
|
Internet software & services |
|
|
0.98 |
|
|
Machinery |
|
|
3.40 |
|
|
Media |
|
|
5.15 |
|
|
Multi-utilities |
|
|
1.58 |
|
|
Multiline retail |
|
|
0.90 |
|
|
Oil, gas & consumable fuels |
|
|
3.65 |
|
|
Pharmaceuticals |
|
|
9.49 |
|
|
Road & rail |
|
|
2.29 |
|
|
Semiconductors & semiconductor equipment |
|
|
7.06 |
|
|
Software |
|
|
7.79 |
|
|
Specialty retail |
|
|
2.32 |
|
|
Textiles, apparel & luxury goods |
|
|
0.81 |
|
|
Thrifts & mortgage finance |
|
|
1.39 |
|
|
Wireless telecommunication services |
|
|
2.34 |
|
|
Total equities |
|
|
115.01 |
|
|
Investment company |
|
SPDR Trust, Series 1 |
|
|
4.27 |
|
|
Short-term investment |
|
|
0.38 |
|
|
Total investments before investments sold short |
|
|
119.66 |
|
|
Investments sold short Equities sold short |
|
Air freight & logistics |
|
|
(1.77 |
)% |
|
Automobiles |
|
|
(0.83 |
) |
|
Capital markets |
|
|
(1.72 |
) |
|
Commercial banks |
|
|
(1.76 |
) |
|
Construction materials |
|
|
(0.41 |
) |
|
Diversified financial services |
|
|
(0.41 |
) |
|
Diversified telecommunication services |
|
|
(0.51 |
) |
|
Food & staples retailing |
|
|
(0.48 |
) |
|
Food products |
|
|
(0.33 |
) |
|
Health care equipment & supplies |
|
|
(0.34 |
) |
|
Health care providers & services |
|
|
(0.62 |
) |
|
Hotels, restaurants & leisure |
|
|
(0.58 |
) |
|
Household durables |
|
|
(0.89 |
) |
|
IT services |
|
|
(0.61 |
) |
|
Leisure equipment & products |
|
|
(0.46 |
) |
|
Machinery |
|
|
(0.55 |
) |
|
Media |
|
|
(0.69 |
) |
|
Metals & mining |
|
|
(1.55 |
) |
|
Multiline retail |
|
|
(0.77 |
) |
|
Oil, gas & consumable fuels |
|
|
(1.70 |
) |
|
Pharmaceuticals |
|
|
(1.09 |
) |
|
Software |
|
|
(1.37 |
) |
|
Specialty retail |
|
|
(0.85 |
) |
|
Total investments sold short |
|
|
(20.29 |
) |
|
Total investments, net of investments sold short |
|
|
99.37 |
|
|
Cash and other assets, less liabilities |
|
|
0.63 |
|
|
Net assets |
|
|
100.00 |
% |
|
(1) Figures represent the industry breakdown of direct investments of the UBS U.S. Equity Alpha Fund. Figures would be different if a breakdown of the underlying investment companies' industry diversification was included.
59
UBS U.S. Equity Alpha FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities115.01% |
|
Air freight & logistics2.74% |
|
FedEx Corp.(1) |
|
|
58,300 |
|
|
$ |
6,469,551 |
|
|
Auto components4.85% |
|
BorgWarner, Inc.(1) |
|
|
54,100 |
|
|
|
4,654,764 |
|
|
Johnson Controls, Inc.(1) |
|
|
58,500 |
|
|
|
6,772,545 |
|
|
|
|
|
11,427,309 |
|
|
Automobiles0.85% |
|
Harley-Davidson, Inc.(1) |
|
|
33,800 |
|
|
|
2,014,818 |
|
|
Beverages1.51% |
|
Anheuser-Busch Cos., Inc.(1) |
|
|
30,600 |
|
|
|
1,596,096 |
|
|
Constellation Brands, Inc., Class A*(1) |
|
|
80,500 |
|
|
|
1,954,540 |
|
|
|
|
|
3,550,636 |
|
|
Biotechnology3.22% |
|
Amgen, Inc.* |
|
|
13,700 |
|
|
|
757,473 |
|
|
Cephalon, Inc.*(1) |
|
|
12,700 |
|
|
|
1,020,953 |
|
|
Genzyme Corp.*(1) |
|
|
64,300 |
|
|
|
4,140,920 |
|
|
Millennium Pharmaceuticals, Inc.*(1) |
|
|
158,600 |
|
|
|
1,676,402 |
|
|
|
|
|
7,595,748 |
|
|
Building products1.89% |
|
Masco Corp.(1) |
|
|
156,100 |
|
|
|
4,444,167 |
|
|
Capital markets8.36% |
|
Bank of New York Co., Inc.(1) |
|
|
196,000 |
|
|
|
8,122,240 |
|
|
Blackstone Group LP* |
|
|
33,154 |
|
|
|
970,417 |
|
|
Morgan Stanley(1) |
|
|
126,300 |
|
|
|
10,594,044 |
|
|
|
|
|
19,686,701 |
|
|
Commercial banks9.00% |
|
City National Corp.(1) |
|
|
19,500 |
|
|
|
1,483,755 |
|
|
Fifth Third Bancorp(1) |
|
|
132,600 |
|
|
|
5,273,502 |
|
|
PNC Financial Services Group, Inc.(1) |
|
|
60,900 |
|
|
|
4,359,222 |
|
|
Wells Fargo & Co.(1) |
|
|
286,800 |
|
|
|
10,086,756 |
|
|
|
|
|
21,203,235 |
|
|
Computers & peripherals0.93% |
|
Dell, Inc.*(1) |
|
|
76,600 |
|
|
|
2,186,930 |
|
|
Diversified financial services7.32% |
|
Citigroup, Inc.(1) |
|
|
203,100 |
|
|
|
10,416,999 |
|
|
JPMorgan Chase & Co.(1) |
|
|
141,100 |
|
|
|
6,836,295 |
|
|
|
|
|
17,253,294 |
|
|
Diversified telecommunication services2.21% |
|
AT&T, Inc.(1) |
|
|
125,500 |
|
|
|
5,208,250 |
|
|
Electric utilities3.24% |
|
American Electric Power Co., Inc.(1) |
|
|
44,600 |
|
|
|
2,008,784 |
|
|
Exelon Corp. |
|
|
50,000 |
|
|
|
3,630,000 |
|
|
Pepco Holdings, Inc.(1) |
|
|
71,100 |
|
|
|
2,005,020 |
|
|
|
|
|
7,643,804 |
|
|
|
|
Shares |
|
Value |
|
Energy equipment & services2.16% |
|
ENSCO International, Inc.(1) |
|
|
38,200 |
|
|
$ |
2,330,582 |
|
|
Halliburton Co.(1) |
|
|
80,000 |
|
|
|
2,760,000 |
|
|
|
|
|
5,090,582 |
|
|
Food & staples retailing2.83% |
|
Costco Wholesale Corp.(1) |
|
|
58,900 |
|
|
|
3,446,828 |
|
|
SYSCO Corp.(1) |
|
|
97,900 |
|
|
|
3,229,721 |
|
|
|
|
|
6,676,549 |
|
|
Health care equipment & supplies0.67% |
|
Medtronic, Inc. |
|
|
30,300 |
|
|
|
1,571,358 |
|
|
Health care providers & services2.71% |
|
Medco Health Solutions, Inc.*(1) |
|
|
42,100 |
|
|
|
3,283,379 |
|
|
UnitedHealth Group, Inc.(1) |
|
|
60,600 |
|
|
|
3,099,084 |
|
|
|
|
|
6,382,463 |
|
|
Hotels, restaurants & leisure2.78% |
|
Carnival Corp.(1) |
|
|
134,300 |
|
|
|
6,549,811 |
|
|
Household durables1.08% |
|
Fortune Brands, Inc.(1) |
|
|
31,000 |
|
|
|
2,553,470 |
|
|
Industrial conglomerates3.12% |
|
General Electric Co.(1) |
|
|
192,100 |
|
|
|
7,353,588 |
|
|
Insurance3.19% |
|
Aflac, Inc. |
|
|
61,600 |
|
|
|
3,166,240 |
|
|
Hartford Financial Services Group, Inc.(1) |
|
|
44,100 |
|
|
|
4,344,291 |
|
|
|
|
|
7,510,531 |
|
|
Internet & catalog retail1.20% |
|
Amazon.com, Inc.*(1) |
|
|
41,300 |
|
|
|
2,825,333 |
|
|
Internet software & services0.98% |
|
Yahoo!, Inc.*(1) |
|
|
85,200 |
|
|
|
2,311,476 |
|
|
Machinery3.40% |
|
Illinois Tool Works, Inc.(1) |
|
|
93,300 |
|
|
|
5,055,927 |
|
|
PACCAR, Inc. |
|
|
33,900 |
|
|
|
2,950,656 |
|
|
|
|
|
8,006,583 |
|
|
Media5.15% |
|
McGraw-Hill Cos., Inc.(1) |
|
|
45,400 |
|
|
|
3,090,832 |
|
|
News Corp., Class A(1) |
|
|
128,000 |
|
|
|
2,714,880 |
|
|
Omnicom Group, Inc.(1) |
|
|
75,600 |
|
|
|
4,000,752 |
|
|
Viacom, Inc., Class B*(1) |
|
|
55,700 |
|
|
|
2,318,791 |
|
|
|
|
|
12,125,255 |
|
|
Multi-utilities1.58% |
|
Sempra Energy(1) |
|
|
62,700 |
|
|
|
3,713,721 |
|
|
Multiline retail0.90% |
|
Target Corp. |
|
|
33,300 |
|
|
|
2,117,880 |
|
|
Oil, gas & consumable fuels3.65% |
|
ConocoPhillips(1) |
|
|
71,500 |
|
|
|
5,612,750 |
|
|
EOG Resources, Inc.(1) |
|
|
21,000 |
|
|
|
1,534,260 |
|
|
Sunoco, Inc.(1) |
|
|
18,300 |
|
|
|
1,458,144 |
|
|
|
|
|
8,605,154 |
|
|
60
UBS U.S. Equity Alpha FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities(concluded) |
|
Pharmaceuticals9.49% |
|
Allergan, Inc.(1) |
|
|
81,600 |
|
|
$ |
4,703,424 |
|
|
Bristol-Myers Squibb Co.(1) |
|
|
77,800 |
|
|
|
2,455,368 |
|
|
Johnson & Johnson(1) |
|
|
54,700 |
|
|
|
3,370,614 |
|
|
Merck & Co., Inc.(1) |
|
|
94,900 |
|
|
|
4,726,020 |
|
|
Wyeth(1) |
|
|
123,800 |
|
|
|
7,098,692 |
|
|
|
|
|
22,354,118 |
|
|
Road & rail2.29% |
|
Burlington Northern Santa Fe Corp.(1) |
|
|
63,300 |
|
|
|
5,389,362 |
|
|
Semiconductors & semiconductor equipment7.06% |
|
Analog Devices, Inc.(1) |
|
|
130,100 |
|
|
|
4,896,964 |
|
|
Intel Corp.(1) |
|
|
297,600 |
|
|
|
7,070,976 |
|
|
Linear Technology Corp.(1) |
|
|
61,100 |
|
|
|
2,210,598 |
|
|
Xilinx, Inc.(1) |
|
|
91,700 |
|
|
|
2,454,809 |
|
|
|
|
|
16,633,347 |
|
|
Software7.79% |
|
BEA Systems, Inc.*(1) |
|
|
108,600 |
|
|
|
1,486,734 |
|
|
Citrix Systems, Inc.* |
|
|
57,300 |
|
|
|
1,929,291 |
|
|
Intuit, Inc.*(1) |
|
|
57,400 |
|
|
|
1,726,592 |
|
|
Microsoft Corp.(1) |
|
|
262,900 |
|
|
|
7,747,663 |
|
|
Red Hat, Inc.* |
|
|
40,800 |
|
|
|
909,024 |
|
|
Symantec Corp.*(1) |
|
|
225,100 |
|
|
|
4,547,020 |
|
|
|
|
|
18,346,324 |
|
|
Specialty retail2.32% |
|
Chico's FAS, Inc.*(1) |
|
|
51,300 |
|
|
|
1,248,642 |
|
|
Home Depot, Inc.(1) |
|
|
107,200 |
|
|
|
4,218,320 |
|
|
|
|
|
5,466,962 |
|
|
Textiles, apparel & luxury goods0.81% |
|
Coach, Inc.*(1) |
|
|
40,400 |
|
|
|
1,914,556 |
|
|
Thrifts & mortgage finance1.39% |
|
Freddie Mac(1) |
|
|
53,800 |
|
|
|
3,265,660 |
|
|
Wireless telecommunication services2.34% |
|
Sprint Nextel Corp.(1) |
|
|
266,400 |
|
|
|
5,517,144 |
|
|
Total equities (cost $253,310,941) |
|
|
270,965,670 |
|
|
Investment company4.27% |
|
SPDR Trust, Series 1 (cost $10,152,704) |
|
|
66,900 |
|
|
|
10,063,767 |
|
|
Short-term investment0.38% |
|
Investment company0.38% |
|
UBS U.S. Cash Management Prime Relationship Fund, 5.36%(2),(3) (cost $879,283) |
|
|
879,283 |
|
|
|
879,283 |
|
|
Total investments before investments sold short119.66% (cost $264,342,928) |
|
|
281,908,720 |
|
|
|
|
Shares |
|
Value |
|
Investments sold short(20.29)% |
|
Equities(20.29)% |
|
Air freight & logistics(1.77)% |
|
C.H. Robinson Worldwide, Inc. |
|
|
(42,100 |
) |
|
$ |
(2,211,092 |
) |
|
Expeditors International of Washington, Inc. |
|
|
(47,600 |
) |
|
|
(1,965,880 |
) |
|
|
|
|
(4,176,972 |
) |
|
Automobiles(0.83)% |
|
Ford Motor Co. |
|
|
(87,600 |
) |
|
|
(825,192 |
) |
|
General Motors Corp. |
|
|
(29,900 |
) |
|
|
(1,130,220 |
) |
|
|
|
|
(1,955,412 |
) |
|
Capital markets(1.72)% |
|
Bear Stearns Cos., Inc. |
|
|
(12,900 |
) |
|
|
(1,806,000 |
) |
|
Charles Schwab Corp. |
|
|
(55,300 |
) |
|
|
(1,134,756 |
) |
|
Goldman Sachs Group, Inc. |
|
|
(5,100 |
) |
|
|
(1,105,425 |
) |
|
|
|
|
(4,046,181 |
) |
|
Commercial banks(1.76)% |
|
BB&T Corp. |
|
|
(25,500 |
) |
|
|
(1,037,340 |
) |
|
Comerica, Inc. |
|
|
(17,600 |
) |
|
|
(1,046,672 |
) |
|
KeyCorp |
|
|
(30,700 |
) |
|
|
(1,053,931 |
) |
|
Regions Financial Corp. |
|
|
(30,700 |
) |
|
|
(1,016,170 |
) |
|
|
|
|
(4,154,113 |
) |
|
Construction materials(0.41)% |
|
Vulcan Materials Co. |
|
|
(8,500 |
) |
|
|
(973,590 |
) |
|
Diversified financial services(0.41)% |
|
Chicago Mercantile Exchange Holdings, Inc., Class A |
|
|
(1,800 |
) |
|
|
(961,848 |
) |
|
Diversified telecommunication services(0.51)% |
|
Qwest Communications International, Inc. |
|
|
(123,700 |
) |
|
|
(1,199,890 |
) |
|
Food & staples retailing(0.48)% |
|
Walgreen Co. |
|
|
(26,100 |
) |
|
|
(1,136,394 |
) |
|
Food products(0.33)% |
|
Hershey Co. |
|
|
(15,500 |
) |
|
|
(784,610 |
) |
|
Health care equipment & supplies(0.34)% |
|
Zimmer Holdings, Inc. |
|
|
(9,500 |
) |
|
|
(806,455 |
) |
|
Health care providers & services(0.62)% |
|
Amedisys, Inc. |
|
|
(40,100 |
) |
|
|
(1,456,833 |
) |
|
Hotels, restaurants & leisure(0.58)% |
|
Darden Restaurants, Inc. |
|
|
(30,900 |
) |
|
|
(1,359,291 |
) |
|
Household durables(0.89)% |
|
Lennar Corp., Class A |
|
|
(13,600 |
) |
|
|
(497,216 |
) |
|
Stanley Works |
|
|
(26,500 |
) |
|
|
(1,608,550 |
) |
|
|
|
|
(2,105,766 |
) |
|
IT services(0.61)% |
|
Cognizant Technology Solutions Corp., Class A |
|
|
(19,000 |
) |
|
|
(1,426,710 |
) |
|
61
UBS U.S. Equity Alpha FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Investments sold short(concluded) |
|
Equities(concluded) |
|
Leisure equipment & products(0.46)% |
|
Mattel, Inc. |
|
|
(42,900 |
) |
|
$ |
(1,084,941 |
) |
|
Machinery(0.55)% |
|
Cummins, Inc. |
|
|
(12,900 |
) |
|
|
(1,305,609 |
) |
|
Media(0.69)% |
|
Gannett Co., Inc. |
|
|
(10,300 |
) |
|
|
(565,985 |
) |
|
New York Times Co., Class A |
|
|
(41,500 |
) |
|
|
(1,054,100 |
) |
|
|
|
|
(1,620,085 |
) |
|
Metals & mining(1.55)% |
|
Freeport-McMoRan Copper & Gold, Inc. |
|
|
(17,600 |
) |
|
|
(1,457,632 |
) |
|
Nucor Corp. |
|
|
(37,300 |
) |
|
|
(2,187,645 |
) |
|
|
|
|
(3,645,277 |
) |
|
Multiline retail(0.77)% |
|
Sears Holdings Corp. |
|
|
(10,700 |
) |
|
|
(1,813,650 |
) |
|
Oil, gas & consumable fuels(1.70)% |
|
Devon Energy Corp. |
|
|
(15,400 |
) |
|
|
(1,205,666 |
) |
|
Tesoro Corp. |
|
|
(32,600 |
) |
|
|
(1,863,090 |
) |
|
Valero Energy Corp. |
|
|
(12,600 |
) |
|
|
(930,636 |
) |
|
|
|
|
(3,999,392 |
) |
|
|
|
Shares |
|
Value |
|
Pharmaceuticals(1.09)% |
|
Abbott Laboratories |
|
|
(26,500 |
) |
|
$ |
(1,419,075 |
) |
|
Forest Laboratories, Inc. |
|
|
(25,200 |
) |
|
|
(1,150,380 |
) |
|
|
|
|
(2,569,455 |
) |
|
Software(1.37)% |
|
BMC Software, Inc. |
|
|
(50,800 |
) |
|
|
(1,539,240 |
) |
|
Novell, Inc. |
|
|
(215,100 |
) |
|
|
(1,675,629 |
) |
|
|
|
|
(3,214,869 |
) |
|
Specialty retail(0.85)% |
|
Best Buy Co., Inc. |
|
|
(18,500 |
) |
|
|
(863,395 |
) |
|
RadioShack Corp. |
|
|
(34,500 |
) |
|
|
(1,143,330 |
) |
|
|
|
|
(2,006,725 |
) |
|
Total investments sold short (proceeds $45,697,066) |
|
|
(47,804,068 |
) |
|
Total investments, net of investments sold short99.37% |
|
|
234,104,652 |
|
|
Cash and other assets, less liabilities0.63% |
|
|
1,494,084 |
|
|
Net assets100.00% |
|
$ |
235,598,736 |
|
|
Notes to portfolio of investments
Aggregate cost before investments sold short for federal income tax purposes was $264,365,059; and net unrealized appreciation consisted of:
Gross unrealized appreciation |
|
$ |
19,731,499 |
|
|
Gross unrealized depreciation |
|
|
(2,187,838 |
) |
|
Net unrealized appreciation |
|
$ |
17,543,661 |
|
|
* Non-income producing security.
(1) All or a portion of these securities have been pledged to cover open short positions.
(2) Investment in affiliated mutual fund.
(3) The rate shown reflects the yield at June 30, 2007.
See accompanying notes to financial statements.
62
UBS U.S. Large Cap Equity Fund
Portfolio performance
For the 12 months ended June 30, 2007, Class A shares of UBS U.S. Large Cap Equity Fund (the "Fund") returned 20.39% (Class A shares returned 13.77% after the deduction of the maximum sales charge), while Class Y shares returned 20.73%. The Fund's benchmark, the Russell 1000 Index (the "Index"), returned 20.43% over the same time period. (Class Y shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 65; please note that these returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.)
During the period, strong stock selection had a solid impact on performance. However, it was counteracted by negative industry selectionin particular, an overweight to banks. As a result, the Fund performed in line with its Index.
Portfolio performance summary
What worked
Stock selection was strong during the period, and the largest contributor to performance overall. While the US equity market was generally, in our opinion, at or near fair value over the past year, careful research and analysis helped us to identify a number of stocks with price-to-intrinsic-value discrepancies that provided what we viewed as attractive investment opportunities. Mellon Financial Corp., and DirecTV Group, Inc.* were among our best performing stocks ov
er the period. (For details, refer to "Portfolio Highlights.")
Additional contributions to performance came from overweights to the auto parts, oil services and software industries, as well as an underweight to energy reserves.
Within autos, the motor vehicles and parts sector contributed to performance, particularly our holding in Johnson Controls. Rising energy costs have increased demand for the company's building efficiency products. Building products growth is also being driven by the company's exposure to emerging markets. We believe the diversification that Johnson Controls retains in terms of customer, geography, and product and business line will enable the company to continue to produce solid results.
Energy remains one of our largest industry underweights because of our bearish view on long-run oil prices. While the Fund's underweight to oil refineries hurt us in this area, its overweight to oil services companies, where we found select opportunities, helped drive this industry position to outperformance.
Despite an underweight position versus the Index, the financial sector provided the Fund with interesting opportunities. Our portfolio was overweighted to financial services companies such as Morgan Stanley, which contributed strongly to performance.
The portfolio also benefited by what we did not own. The Fund's underweight position in real estate investment trusts (REITs) had a positive impact on results, as the industry generally underperformed other sectors of the market.
* This holding was sold during the reporting period.
63
UBS U.S. Large Cap Equity Fund
What didn't work
Industry selection, as a whole, was the biggest detractor from Fund performance, with our overweight in banks, and underweights in oil refining, tobacco and defense among the largest detractors.
The largest detractor from performance was our overweight to banksalso the largest position in the Fund's portfolio. The financial sector in general underperformed during the period as investors' focus on subprime lending issues and levered debt weighed heavily on stock prices.
We continue to find what we view to be very attractive valuations in this space and, in many cases, believe the underlying balance sheets are strong. We continue to maintain an overweight in this area in general, but there are some sub-components where we continue to take a cautious stance. For example, we are underweight regional banks.
Our underweight to oil refining detracted from performance. We continue to find this area unattractive, as we believe current oil prices are not sustainable.
Portfolio Highlights
Mellon Financial was the Fund's top performing stock for the reporting period. The company's shares traded higher after the Federal Reserve Board approved its proposed merger with the Bank of New York. Combining the two companies will make Bank of New York Mellon one of the top custody service providers for institutional investors and will create one of the largest asset managers.
DirecTV* performed well during the period. The company opened a new call center in Montana to handle its continued customer growth. It also received a favorable court ruling last September when a federal judge dismissed fraud charges brought by Darlene Investments, a former strategic partner. We sold our position in the stock when we believed that it reached its fair value, which benefited portfolio performance.
Sprint was our biggest disappointment over the last 12 months. Mobile ESPN, a lynchpin of Sprint's larger strategy to attract new subscribers using other brands, said that it will cease operations by the end of the year. Additionally, the Sprint-Nextel merger integration experienced a larger number of customer losses than was anticipated, which has led to a sell-off in the stock.
Not owning Apple detracted from relative performance when the highly anticipated and successful launch of the iPhone rallied Apple stock. We continue to believe the company's shares are currently overvalued.
* This holding was sold during the reporting period.
This letter is intended to assist shareholders in understanding how the Fund performed during the 12 months ended June 30, 2007. The views and opinions in the letter were current as of August 15, 2007. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. Mutual funds are sold by prospectus only. You should read it carefully and consider a fund's investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be
obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/globalam-us.
64
UBS U.S. Large Cap Equity Fund
Average annual total return (unaudited)
|
|
|
|
1 year ended 06/30/07 |
|
5 years ended 06/30/07 |
|
10 years ended 06/30/07 |
|
Inception(1) to 06/30/07 |
|
Before deducting |
|
Class A(2) |
|
|
20.39 |
% |
|
|
11.89 |
% |
|
|
7.41 |
% |
|
|
7.41 |
% |
|
maximum sales charge |
|
Class B(3) |
|
|
19.50 |
|
|
|
11.04 |
|
|
|
N/A |
|
|
|
9.44 |
|
|
|
|
Class C(4) |
|
|
19.56 |
|
|
|
11.08 |
|
|
|
N/A |
|
|
|
8.95 |
|
|
|
|
Class Y(5) |
|
|
20.73 |
|
|
|
12.22 |
|
|
|
7.73 |
|
|
|
11.48 |
|
|
After deducting maximum |
|
Class A(2) |
|
|
13.77 |
|
|
|
10.63 |
|
|
|
6.80 |
|
|
|
6.80 |
|
|
sales charge |
|
Class B(3) |
|
|
14.50 |
|
|
|
10.77 |
|
|
|
N/A |
|
|
|
9.32 |
|
|
|
|
Class C(4) |
|
|
18.56 |
|
|
|
11.08 |
|
|
|
N/A |
|
|
|
8.95 |
|
|
Russell 1000 Index(6) |
|
|
20.43 |
|
|
|
11.33 |
|
|
|
7.55 |
|
|
|
11.18 |
|
|
The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2006 prospectuses were as follows: Class A1.24% and 1.24%; Class B2.01% and 2.01%; Class C1.98% and 1.98%; Class Y.97% and .97%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. 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 management fees and/or to reimburse expenses to the extent necessary so the Fund's operating expenses, through the fiscal year ending June 30, 2007, do not exceed Class A1.30%; Class B2.05%; Class C2.05%; Class Y1.05%. 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.
(1) Inception date of UBS U.S. Large Cap Equity Fund Class A shares is 06/30/97. Inception dates of Class B and Class C shares are 11/05/01 and 11/13/01, respectively. Inception date of Class Y shares and the Index is 02/22/94.
(2) Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.
(3) Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.
(4) Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.
(5) The Fund offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.
(6) The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index.
If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectus.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
65
UBS U.S. Large Cap Equity Fund
Illustration of an assumed investment of $10,000 in Class A shares (adjusted for maximum sales
charge) and $10,000,000 in Class Y shares (unaudited)
The following two charts show the growth in the value of an investment in UBS U.S. Large Cap Equity Fund Class A shares (adjusted for 5.50% maximum sales charge), Class Y shares and the Russell 1000 Index, if you had invested $10,000 in Class A shares on June 30, 1997 or $10,000,000 in Class Y shares on February 22, 1994, and had reinvested all your income dividends and capital gain distributions through June 30, 2007. The performance of Class B and Class C shares will vary based upon the different inception dates, class specific expenses and sales charges. No adjustment has been made for any income taxes payable by shareholders on income dividends and capital gain distributions. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption.
UBS U.S. Large Cap Equity Fund Class A vs. Russell 1000 Index
Wealth value with dividends reinvested
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.50%.
UBS U.S. Large Cap Equity Fund Class Y vs. Russell 1000 Index
Wealth value with dividends reinvested
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
66
UBS U.S. Large Cap Equity Fund
Top ten equity holdings (unaudited)
As of June 30, 2007
|
|
Percentage of net assets |
|
Citigroup, Inc. |
|
|
3.9 |
% |
|
Morgan Stanley |
|
|
3.6 |
|
|
Wells Fargo & Co. |
|
|
3.1 |
|
|
Microsoft Corp. |
|
|
2.9 |
|
|
Exelon Corp. |
|
|
2.9 |
|
|
Intel Corp. |
|
|
2.6 |
|
|
Wyeth |
|
|
2.6 |
|
|
General Electric Co. |
|
|
2.5 |
|
|
Johnson Controls, Inc. |
|
|
2.2 |
|
|
Allergan, Inc. |
|
|
2.1 |
|
|
Total |
|
|
28.4 |
% |
|
Industry diversification (unaudited)
As a percentage of net assets as of June 30, 2007
Equities |
|
Aerospace & defense |
|
|
0.48 |
% |
|
Air freight & logistics |
|
|
1.66 |
|
|
Auto components |
|
|
3.43 |
|
|
Automobiles |
|
|
0.71 |
|
|
Beverages |
|
|
1.52 |
|
|
Biotechnology |
|
|
2.75 |
|
|
Building products |
|
|
1.80 |
|
|
Capital markets |
|
|
5.98 |
|
|
Commercial banks |
|
|
6.34 |
|
|
Computers & peripherals |
|
|
1.02 |
|
|
Diversified financial services |
|
|
5.74 |
|
|
Diversified telecommunication services |
|
|
1.61 |
|
|
Electric utilities |
|
|
4.25 |
|
|
Energy equipment & services |
|
|
3.39 |
|
|
Food & staples retailing |
|
|
2.61 |
|
|
Health care equipment & supplies |
|
|
0.98 |
|
|
Health care providers & services |
|
|
2.24 |
|
|
Hotels, restaurants & leisure |
|
|
1.55 |
|
|
Household durables |
|
|
0.90 |
|
|
Industrial conglomerates |
|
|
2.48 |
|
|
Insurance |
|
|
2.59 |
% |
|
Internet & catalog retail |
|
|
1.05 |
|
|
Internet software & services |
|
|
1.01 |
|
|
Machinery |
|
|
3.04 |
|
|
Media |
|
|
4.60 |
|
|
Multi-utilities |
|
|
1.58 |
|
|
Multiline retail |
|
|
0.80 |
|
|
Oil, gas & consumable fuels |
|
|
2.40 |
|
|
Pharmaceuticals |
|
|
8.77 |
|
|
Road & rail |
|
|
1.95 |
|
|
Semiconductors & semiconductor equipment |
|
|
6.23 |
|
|
Software |
|
|
6.72 |
|
|
Specialty retail |
|
|
2.00 |
|
|
Textiles, apparel & luxury goods |
|
|
0.60 |
|
|
Thrifts & mortgage finance |
|
|
1.00 |
|
|
Wireless telecommunication services |
|
|
2.07 |
|
|
Total equities |
|
|
97.85 |
|
|
Short-term investments |
|
|
1.76 |
|
|
Total investments |
|
|
99.61 |
|
|
Cash and other assets, less liabilities |
|
|
0.39 |
|
|
Net assets |
|
|
100.00 |
% |
|
67
UBS U.S. Large Cap Equity FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities97.85% |
|
Aerospace & defense0.48% |
|
Northrop Grumman Corp. |
|
|
62,400 |
|
|
$ |
4,859,088 |
|
|
Air freight & logistics1.66% |
|
FedEx Corp. |
|
|
150,300 |
|
|
|
16,678,791 |
|
|
Auto components3.43% |
|
BorgWarner, Inc. |
|
|
144,500 |
|
|
|
12,432,780 |
|
|
Johnson Controls, Inc. |
|
|
189,300 |
|
|
|
21,915,261 |
|
|
|
|
|
34,348,041 |
|
|
Automobiles0.71% |
|
Harley-Davidson, Inc. |
|
|
118,800 |
|
|
|
7,081,668 |
|
|
Beverages1.52% |
|
Anheuser-Busch Cos., Inc. |
|
|
137,000 |
|
|
|
7,145,920 |
|
|
Constellation Brands, Inc., Class A* |
|
|
331,700 |
|
|
|
8,053,676 |
|
|
|
|
|
15,199,596 |
|
|
Biotechnology2.75% |
|
Amgen, Inc.* |
|
|
61,500 |
|
|
|
3,400,335 |
|
|
Cephalon, Inc.* |
|
|
54,800 |
|
|
|
4,405,372 |
|
|
Genzyme Corp.* |
|
|
251,700 |
|
|
|
16,209,480 |
|
|
Millennium Pharmaceuticals, Inc.* |
|
|
336,100 |
|
|
|
3,552,577 |
|
|
|
|
|
27,567,764 |
|
|
Building products1.80% |
|
Masco Corp. |
|
|
632,500 |
|
|
|
18,007,275 |
|
|
Capital markets5.98% |
|
Bank of New York Co., Inc. |
|
|
159,300 |
|
|
|
6,601,392 |
|
|
Blackstone Group LP* |
|
|
103,792 |
|
|
|
3,037,992 |
|
|
Mellon Financial Corp. |
|
|
330,800 |
|
|
|
14,555,200 |
|
|
Morgan Stanley |
|
|
426,900 |
|
|
|
35,808,372 |
|
|
|
|
|
60,002,956 |
|
|
Commercial banks6.34% |
|
City National Corp. |
|
|
61,800 |
|
|
|
4,702,362 |
|
|
Fifth Third Bancorp |
|
|
389,900 |
|
|
|
15,506,323 |
|
|
PNC Financial Services Group, Inc . |
|
|
170,000 |
|
|
|
12,168,600 |
|
|
Wells Fargo & Co. |
|
|
887,200 |
|
|
|
31,202,824 |
|
|
|
|
|
63,580,109 |
|
|
Computers & peripherals1.02% |
|
Dell, Inc.* |
|
|
359,500 |
|
|
|
10,263,725 |
|
|
Diversified financial services5.74% |
|
Citigroup, Inc. |
|
|
768,261 |
|
|
|
39,404,107 |
|
|
JPMorgan Chase & Co. |
|
|
373,700 |
|
|
|
18,105,765 |
|
|
|
|
|
57,509,872 |
|
|
Diversified telecommunication services1.61% |
|
AT&T, Inc. |
|
|
388,600 |
|
|
|
16,126,900 |
|
|
|
|
Shares |
|
Value |
|
Electric utilities4.25% |
|
American Electric Power Co., Inc. |
|
|
195,300 |
|
|
$ |
8,796,312 |
|
|
Exelon Corp. |
|
|
396,100 |
|
|
|
28,756,860 |
|
|
Northeast Utilities |
|
|
27,900 |
|
|
|
791,244 |
|
|
Pepco Holdings, Inc. |
|
|
152,700 |
|
|
|
4,306,140 |
|
|
|
|
|
42,650,556 |
|
|
Energy equipment & services3.39% |
|
ENSCO International, Inc. |
|
|
172,800 |
|
|
|
10,542,528 |
|
|
GlobalSantaFe Corp. |
|
|
168,200 |
|
|
|
12,152,450 |
|
|
Halliburton Co. |
|
|
327,000 |
|
|
|
11,281,500 |
|
|
|
|
|
33,976,478 |
|
|
Food & staples retailing2.61% |
|
Costco Wholesale Corp. |
|
|
242,200 |
|
|
|
14,173,544 |
|
|
SYSCO Corp. |
|
|
363,200 |
|
|
|
11,981,968 |
|
|
|
|
|
26,155,512 |
|
|
Health care equipment & supplies0.98% |
|
Medtronic, Inc. |
|
|
189,400 |
|
|
|
9,822,284 |
|
|
Health care providers & services2.24% |
|
Medco Health Solutions, Inc.* |
|
|
148,100 |
|
|
|
11,550,319 |
|
|
UnitedHealth Group, Inc. |
|
|
213,800 |
|
|
|
10,933,732 |
|
|
|
|
|
22,484,051 |
|
|
Hotels, restaurants & leisure1.55% |
|
Carnival Corp. |
|
|
319,400 |
|
|
|
15,577,138 |
|
|
Household durables0.90% |
|
Fortune Brands, Inc. |
|
|
109,900 |
|
|
|
9,052,463 |
|
|
Industrial conglomerates2.48% |
|
General Electric Co. |
|
|
650,200 |
|
|
|
24,889,656 |
|
|
Insurance2.59% |
|
Aflac, Inc. |
|
|
119,600 |
|
|
|
6,147,440 |
|
|
Allstate Corp. |
|
|
153,100 |
|
|
|
9,417,181 |
|
|
Hartford Financial Services Group, Inc. |
|
|
105,600 |
|
|
|
10,402,656 |
|
|
|
|
|
25,967,277 |
|
|
Internet & catalog retail1.05% |
|
Amazon.com, Inc.* |
|
|
153,800 |
|
|
|
10,521,458 |
|
|
Internet software & services1.01% |
|
Yahoo!, Inc.* |
|
|
374,500 |
|
|
|
10,160,185 |
|
|
Machinery3.04% |
|
Illinois Tool Works, Inc. |
|
|
365,800 |
|
|
|
19,822,702 |
|
|
PACCAR, Inc. |
|
|
122,300 |
|
|
|
10,644,992 |
|
|
|
|
|
30,467,694 |
|
|
Media4.60% |
|
McGraw-Hill Cos., Inc. |
|
|
96,600 |
|
|
|
6,576,528 |
|
|
News Corp., Class A |
|
|
452,100 |
|
|
|
9,589,041 |
|
|
Omnicom Group, Inc. |
|
|
222,800 |
|
|
|
11,790,576 |
|
|
R.H. Donnelley Corp.* |
|
|
128,395 |
|
|
|
9,729,773 |
|
|
Viacom, Inc., Class B* |
|
|
203,000 |
|
|
|
8,450,890 |
|
|
|
|
|
46,136,808 |
|
|
68
UBS U.S. Large Cap Equity FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities(concluded) |
|
Multi-utilities1.58% |
|
NiSource, Inc. |
|
|
233,000 |
|
|
$ |
4,825,430 |
|
|
Sempra Energy |
|
|
185,300 |
|
|
|
10,975,319 |
|
|
|
|
|
15,800,749 |
|
|
Multiline retail0.80% |
|
Target Corp. |
|
|
126,800 |
|
|
|
8,064,480 |
|
|
Oil, gas & consumable fuels2.40% |
|
Chevron Corp. |
|
|
79,100 |
|
|
|
6,663,384 |
|
|
EOG Resources, Inc. |
|
|
117,500 |
|
|
|
8,584,550 |
|
|
Exxon Mobil Corp. |
|
|
105,000 |
|
|
|
8,807,400 |
|
|
|
|
|
24,055,334 |
|
|
Pharmaceuticals8.77% |
|
Allergan, Inc. |
|
|
365,000 |
|
|
|
21,038,600 |
|
|
Bristol-Myers Squibb Co . |
|
|
369,600 |
|
|
|
11,664,576 |
|
|
Johnson & Johnson |
|
|
194,444 |
|
|
|
11,981,639 |
|
|
Merck & Co., Inc. |
|
|
350,300 |
|
|
|
17,444,940 |
|
|
Wyeth |
|
|
449,400 |
|
|
|
25,768,596 |
|
|
|
|
|
87,898,351 |
|
|
Road & rail1.95% |
|
Burlington Northern Santa Fe Corp. |
|
|
229,600 |
|
|
|
19,548,144 |
|
|
Semiconductors & semiconductor equipment6.23% |
|
Analog Devices, Inc. |
|
|
482,000 |
|
|
|
18,142,480 |
|
|
Intel Corp. |
|
|
1,115,400 |
|
|
|
26,501,904 |
|
|
Linear Technology Corp . |
|
|
215,100 |
|
|
|
7,782,318 |
|
|
Xilinx, Inc. |
|
|
375,300 |
|
|
|
10,046,781 |
|
|
|
|
|
62,473,483 |
|
|
Software6.72% |
|
BEA Systems, Inc.* |
|
|
477,900 |
|
|
|
6,542,451 |
|
|
Citrix Systems, Inc.* |
|
|
227,100 |
|
|
|
7,646,457 |
|
|
Intuit, Inc.* |
|
|
202,600 |
|
|
|
6,094,208 |
|
|
McAfee, Inc.* |
|
|
25,400 |
|
|
|
894,080 |
|
|
Microsoft Corp. |
|
|
999,100 |
|
|
|
29,443,477 |
|
|
Red Hat, Inc.* |
|
|
131,500 |
|
|
|
2,929,820 |
|
|
Symantec Corp.* |
|
|
684,302 |
|
|
|
13,822,901 |
|
|
|
|
|
67,373,394 |
|
|
|
|
Shares |
|
Value |
|
Specialty retail2.00% |
|
Chico's FAS, Inc.* |
|
|
245,900 |
|
|
$ |
5,985,206 |
|
|
Home Depot, Inc. |
|
|
356,300 |
|
|
|
14,020,405 |
|
|
|
|
|
20,005,611 |
|
|
Textiles, apparel & luxury goods0.60% |
|
Coach, Inc.* |
|
|
127,700 |
|
|
|
6,051,703 |
|
|
Thrifts & mortgage finance1.00% |
|
Freddie Mac |
|
|
164,400 |
|
|
|
9,979,080 |
|
|
Wireless telecommunication services2.07% |
|
Sprint Nextel Corp. |
|
|
1,002,520 |
|
|
|
20,762,189 |
|
|
Total equities (cost $813,890,898) |
|
|
981,099,863 |
|
|
Short-term investments1.76% |
|
Other1.70% |
|
UBS Supplementary Trust U.S. Cash Management Prime Fund, 5.37%(1),(2) (cost $17,042,612) |
|
|
17,042,612 |
|
|
|
17,042,612 |
|
|
|
|
Face amount |
|
|
|
US government obligation0.06% |
|
US Treasury Bills, 4.81%, due 12/20/07(3),(4) (cost $586,527) |
|
$ |
600,000 |
|
|
|
586,548 |
|
|
Total short-term investments (cost $17,629,139) |
|
|
17,629,160 |
|
|
Total investments99.61% (cost $831,520,037) |
|
|
998,729,023 |
|
|
Cash and other assets, less liabilities0.39% |
|
|
3,893,621 |
|
|
Net assets100.00% |
|
$ |
1,002,622,644 |
|
|
Notes to portfolio of investments
Aggregate cost for federal income tax purposes was $836,057,743; and net unrealized appreciation consisted of:
Gross unrealized appreciation |
|
$ |
165,623,531 |
|
|
Gross unrealized depreciation |
|
|
(2,952,251 |
) |
|
Net unrealized appreciation |
|
$ |
162,671,280 |
|
|
* Non-income producing security.
(1) Investment in affiliated mutual fund.
(2) The rate shown reflects the yield at June 30, 2007.
(3) The rate shown is the effective yield at the date of purchase.
(4) This security was pledged to cover margin requirements for futures contracts.
69
UBS U.S. Large Cap Equity FundPortfolio of investments
June 30, 2007
Futures contracts
UBS U.S. Large Cap Equity Fund had the following open futures contracts as of June 30, 2007:
|
|
Expiration date |
|
Cost |
|
Value |
|
Unrealized depreciation |
|
Index futures buy contracts: |
|
S&P 500 Index, 33 contracts |
|
September 2007 |
|
$ |
12,545,866 |
|
|
$ |
12,502,050 |
|
|
$ |
(43,816 |
) |
|
The segregated aggregate market value of investments pledged to cover margin requirements for the open futures positions at June 30, 2007 was $586,548.
See accompanying notes to financial statements.
70
UBS U.S. Large Cap Growth Fund
Portfolio performance
For the 12 months ended June 30, 2007, Class A shares of UBS U.S. Large Cap Growth Fund (the "Fund") returned 21.29% (Class A shares returned 14.65% after the deduction of the maximum sales charge), while Class Y shares returned 21.51%. The Fund's benchmark, the Russell 1000 Growth Index (the "Index"), returned 19.04% over the same time period. (Class Y shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 74; please note that these returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.)
The Fund's outperformance was due to successful stock selection during the period.
Portfolio performance summary
What worked
Stock selection was the main engine driving the Fund's significant outperformance. During the period, Apple, Akamai* and Express Scripts* were among our top performers. (For details, see "Portfolio Highlights.")
Our bottom-up security selection process resulted in industry weights that contributed to returns; these included overweights in Internet, medical services and oil services, as well as an underweight to specialty retailers relative to the Index.
The Fund's overweight to Internet stocks was the largest contributor to performance. The market pullback provided us with the opportunity to increase the Fund's exposure to these stocks at attractive prices. We are focused on companies with excellent growth prospects, attractive risk/reward profiles, and strong prospects for above-average free cash flow yield (which is similar to earnings yield, but takes into account capital expenditures and other ongoing costs a business incurs to keep itself running) and growth rates.
We overweighted medical equipment and services stocks, which was one of the Fund's strongest industry positions for the period. The Fund owns several companies that we believe are unique, have sustainable competitive advantages, and have minimal exposure to industry risk factors such as health care regulation. We anticipate healthy growth for companies that provide services and products in the specialty pharmaceutical, medical equipment, and diagnostic testing areas.
The Fund's overweight to oil services stocks drove positive performance, as well. We believe that years of underinvestment and increased capital intensity, combined with heightened demand from emerging markets, will provide above-average earnings and cash flow growth in these companies. Our research indicates that a shortage of equipment and people to provide advanced drilling and oil recovery services, especially in offshore environments, will support a long cycle of pricing power. This in turn should drive a sustainable cycle of worldwide drilling and infrastructure spending.
The Fund underweighted specialty retailers. This strategy was consistent with our belief that the consumer sectors may continue to face difficulty in a deteriorating environment. Higher gas prices, tighter money, daunting adjustable-rate mortgage resets, and the resulting slowing housing environment will all contribute to a weaker consumer. We trimmed previous overweights to specialty retailers, which contributed to the Fund's performance.
* This holding was sold during the reporting period.
71
UBS U.S. Large Cap Growth Fund
What didn't work
An underweight to tobacco was the biggest detractor for the year. Despite strong performance during the last year, we expect to remain underweight in this area. The dynamics of these big companies and the saturated market in which they operate suggest below average growth potential; nonetheless, they continue to trade at levels above which we would be comfortable owning them.
In the materials sector, an underweight to metals and mining stocks detracted from performance. While near-term demand supports an extended commodities cycle, we prefer energy companies as a way to play this opportunity. Despite price volatility, we are more comfortable with the supply demand dynamics of energy, as we expect crude demand growth of 1.5 million barrels a year going forward.
Within the energy sector, our underweight to oil refining stocks detracted from performance. Our preferred segment of the energy sector is oil services, where years of underinvestment and increased capital intensity, combined with heightened demand from emerging markets, should, in our opinion, lead to above-average earnings and cash flow growth.
Portfolio Highlights
Apple shares were the portfolio's biggest stock success story during the period due to the continued success of the iPod and strong Macintosh personal computer sales. The stock rose as investors anticipated new product releases, including Apple TV, iPhone, and a new operating system. We continue to believe that computer share gains and the continued growth of peripheral devices like the iPhone will drive outperformance.
Akamai* made a strong contribution to Fund returns early in the period as the market bought into the prospects for multiyear growth opportunities in rich content distribution. (Akamai is responsible for creating a digital operating environment for the Web that plays a critical role in getting content from providers to consumers.) However, later in the period we eliminated the position as we felt its stock price had begun to get ahead of company fundamentals and future growth prospects.
Express Scripts* was another strong performer during the year. The company manages the purchasing of drugs and the creation of formularies to minimize drug spending for its clients, which include corporations, state governments and unions. Express Scripts generated free cash flow growth, demonstrating the ability of the firm to take advantage of generic drug opportunities, growing faster than the consensus view believed it would.
Circuit City* was one of our biggest disappointments during the period. In our opinion, the company failed to manage inventory, and lost customers due to the decline in the quality of its customer service. The company failed to execute despite the significant growth in large screen televisions, and caused a thesis violation. As a result, we eliminated the name from the portfolio.
* This holding was sold during the reporting period.
72
UBS U.S. Large Cap Growth Fund
Monster Worldwide is a leading job listing Web site. Monster's services allow its corporate clients to reach the widest possible audience when trying to fill a position. The stock reacted negatively to macro data that the US services market is slowing, and this hampered the stock's performance for the period.
This letter is intended to assist shareholders in understanding how the Fund performed during the 12 months ended June 30, 2007. The views and opinions in the letter were current as of August 15, 2007. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. Mutual funds are sold by prospectus only. You should read it carefully and consider a fund's investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be
obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/globalam-us.
73
UBS U.S. Large Cap Growth Fund
Average annual total return (unaudited)
|
|
|
|
1 year ended 06/30/07 |
|
5 years ended 06/30/07 |
|
Inception(1) to 06/30/07 |
|
Before deducting |
|
Class A(2) |
|
|
21.29 |
% |
|
|
10.87 |
% |
|
|
1.50 |
% |
|
maximum sales charge |
|
Class B(3) |
|
|
20.42 |
|
|
|
10.04 |
|
|
|
4.94 |
|
|
|
|
Class C(4) |
|
|
20.28 |
|
|
|
10.07 |
|
|
|
4.23 |
|
|
|
|
Class Y(5) |
|
|
21.51 |
|
|
|
11.14 |
|
|
|
3.87 |
|
|
After deducting maximum |
|
Class A(2) |
|
|
14.65 |
|
|
|
9.63 |
|
|
|
0.83 |
|
|
sales charge |
|
Class B(3) |
|
|
15.42 |
|
|
|
9.76 |
|
|
|
4.80 |
|
|
|
|
Class C(4) |
|
|
19.28 |
|
|
|
10.07 |
|
|
|
4.23 |
|
|
Russell 1000 Growth Index(6) |
|
|
19.04 |
|
|
|
9.28 |
|
|
|
3.48 |
|
|
The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2006 prospectuses were as follows: Class A2.33% and 1.05%; Class B3.23% and 1.80%; Class C3.12% and 1.80%; Class Y2.10% and .80%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. 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 management fees and/or to reimburse expenses to the extent necessary so the Fund's operating expenses, through the fiscal year ending June 30, 2007, do not exceed Class A1.05%; Class B1.80%; Class C1.80%; Class Y.80%. 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.
(1) Inception date of UBS U.S. Large Cap Growth Fund Class A shares is 12/31/98. Inception dates of Class B and Class C shares are 11/07/01 and 11/19/01, respectively. Inception date of Class Y shares and the Index is 10/14/97.
(2) Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.
(3) Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.
(4) Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.
(5) The Fund offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.
(6) The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectus.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
74
UBS U.S. Large Cap Growth Fund
Illustration of an assumed investment of $10,000 in Class A shares (adjusted for maximum sales
charge) and $10,000,000 in Class Y shares (unaudited)
The following two charts show the growth in the value of an investment in UBS U.S. Large Cap Growth Fund Class A shares (adjusted for 5.50% maximum sales charge), Class Y shares and the Russell 1000 Growth Index, if you had invested $10,000 in Class A shares on December 31, 1998 or $10,000,000 in Class Y shares on October 14, 1997, and had reinvested all your income dividends and capital gain distributions through June 30, 2007. The performance of Class B and Class C shares will vary based upon the different inception dates, class specific expenses and sales charges. No adjustment has been made for any income taxes payable by shareholders on income dividends and capital gain distributions. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption.
UBS U.S. Large Cap Growth Fund Class A vs. Russell 1000 Growth Index
Wealth value with dividends reinvested
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.50%.
UBS U.S. Large Cap Growth Fund Class Y vs. Russell 1000 Growth Index
Wealth value with dividends reinvested
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
75
UBS U.S. Large Cap Growth Fund
Top ten equity holdings (unaudited)
As of June 30, 2007
|
|
Percentage of net assets |
|
Google, Inc., Class A |
|
|
5.6 |
% |
|
Allergan, Inc. |
|
|
3.8 |
|
|
Praxair, Inc. |
|
|
3.7 |
|
|
Cisco Systems, Inc. |
|
|
3.4 |
|
|
Microsoft Corp. |
|
|
3.1 |
|
|
Morgan Stanley |
|
|
3.1 |
|
|
XTO Energy, Inc. |
|
|
3.0 |
|
|
General Electric Co. |
|
|
2.9 |
|
|
Schlumberger Ltd. |
|
|
2.8 |
|
|
QUALCOMM, Inc. |
|
|
2.7 |
|
|
Total |
|
|
34.1 |
% |
|
Industry diversification (unaudited)
As a percentage of net assets as of June 30, 2007
Equities |
|
Aerospace & defense |
|
|
3.76 |
% |
|
Air freight & logistics |
|
|
1.30 |
|
|
Biotechnology |
|
|
1.47 |
|
|
Capital markets |
|
|
5.21 |
|
|
Chemicals |
|
|
3.69 |
|
|
Commercial services & supplies |
|
|
1.37 |
|
|
Communications equipment |
|
|
7.48 |
|
|
Computers & peripherals |
|
|
2.50 |
|
|
Diversified financial services |
|
|
2.14 |
|
|
Electric utilities |
|
|
1.76 |
|
|
Electrical equipment |
|
|
1.94 |
|
|
Energy equipment & services |
|
|
5.24 |
|
|
Health care equipment & supplies |
|
|
8.23 |
|
|
Health care providers & services |
|
|
5.99 |
|
|
Hotels, restaurants & leisure |
|
|
8.13 |
|
|
Household products |
|
|
1.74 |
|
|
Industrial conglomerates |
|
|
2.90 |
|
|
Internet software & services |
|
|
7.68 |
% |
|
IT services |
|
|
1.03 |
|
|
Media |
|
|
2.35 |
|
|
Multi-utilities |
|
|
1.93 |
|
|
Oil, gas & consumable fuels |
|
|
4.55 |
|
|
Pharmaceuticals |
|
|
3.76 |
|
|
Road & rail |
|
|
1.95 |
|
|
Semiconductors & semiconductor equipment |
|
|
2.26 |
|
|
Software |
|
|
4.85 |
|
|
Specialty retail |
|
|
1.41 |
|
|
Wireless telecommunication services |
|
|
2.08 |
|
|
Total equities |
|
|
98.70 |
|
|
Short-term investment |
|
|
1.14 |
|
|
Total investment |
|
|
99.84 |
|
|
Cash and other assets, less liabilities |
|
|
0.16 |
|
|
Net assets |
|
|
100.00 |
% |
|
76
UBS U.S. Large Cap Growth FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities98.70% |
|
Aerospace & defense3.76% |
|
Boeing Co. |
|
|
9,600 |
|
|
$ |
923,136 |
|
|
United Technologies Corp. |
|
|
25,800 |
|
|
|
1,829,994 |
|
|
|
|
|
2,753,130 |
|
|
Air freight & logistics1.30% |
|
FedEx Corp. |
|
|
8,600 |
|
|
|
954,342 |
|
|
Biotechnology1.47% |
|
Genentech, Inc.* |
|
|
14,200 |
|
|
|
1,074,372 |
|
|
Capital markets5.21% |
|
Goldman Sachs Group, Inc. |
|
|
7,200 |
|
|
|
1,560,600 |
|
|
Morgan Stanley |
|
|
26,900 |
|
|
|
2,256,372 |
|
|
|
|
|
3,816,972 |
|
|
Chemicals3.69% |
|
Praxair, Inc. |
|
|
37,500 |
|
|
|
2,699,625 |
|
|
Commercial services & supplies1.37% |
|
Monster Worldwide, Inc.* |
|
|
24,400 |
|
|
|
1,002,840 |
|
|
Communications equipment7.48% |
|
Cisco Systems, Inc.* |
|
|
90,300 |
|
|
|
2,514,855 |
|
|
QUALCOMM, Inc. |
|
|
45,800 |
|
|
|
1,987,262 |
|
|
Research In Motion Ltd.* |
|
|
4,900 |
|
|
|
979,951 |
|
|
|
|
|
5,482,068 |
|
|
Computers & peripherals2.50% |
|
Apple, Inc.* |
|
|
15,000 |
|
|
|
1,830,600 |
|
|
Diversified financial services2.14% |
|
Citigroup, Inc. |
|
|
30,600 |
|
|
|
1,569,474 |
|
|
Electric utilities1.76% |
|
Exelon Corp. |
|
|
17,800 |
|
|
|
1,292,280 |
|
|
Electrical equipment1.94% |
|
Rockwell Automation, Inc. |
|
|
20,500 |
|
|
|
1,423,520 |
|
|
Energy equipment & services5.24% |
|
Baker Hughes, Inc. |
|
|
21,700 |
|
|
|
1,825,621 |
|
|
Schlumberger Ltd. |
|
|
23,700 |
|
|
|
2,013,078 |
|
|
|
|
|
3,838,699 |
|
|
Health care equipment & supplies8.23% |
|
Alcon, Inc. |
|
|
10,700 |
|
|
|
1,443,537 |
|
|
Baxter International, Inc. |
|
|
34,800 |
|
|
|
1,960,632 |
|
|
Becton, Dickinson & Co. |
|
|
14,900 |
|
|
|
1,110,050 |
|
|
C.R. Bard, Inc. |
|
|
18,300 |
|
|
|
1,512,129 |
|
|
|
|
|
6,026,348 |
|
|
Health care providers & services5.99% |
|
Laboratory Corp. of America Holdings* |
|
|
20,400 |
|
|
|
1,596,504 |
|
|
Medco Health Solutions, Inc.* |
|
|
16,700 |
|
|
|
1,302,433 |
|
|
Quest Diagnostics, Inc. |
|
|
28,900 |
|
|
|
1,492,685 |
|
|
|
|
|
4,391,622 |
|
|
|
|
Shares |
|
Value |
|
Hotels, restaurants & leisure8.13% |
|
International Game Technology |
|
|
41,300 |
|
|
$ |
1,639,610 |
|
|
Las Vegas Sands Corp.* |
|
|
19,700 |
|
|
|
1,504,883 |
|
|
Starbucks Corp.* |
|
|
41,600 |
|
|
|
1,091,584 |
|
|
Wynn Resorts Ltd. |
|
|
19,200 |
|
|
|
1,722,048 |
|
|
|
|
|
5,958,125 |
|
|
Household products1.74% |
|
Procter & Gamble Co. |
|
|
20,800 |
|
|
|
1,272,752 |
|
|
Industrial conglomerates2.90% |
|
General Electric Co. |
|
|
55,500 |
|
|
|
2,124,540 |
|
|
Internet software & services7.68% |
|
eBay, Inc.* |
|
|
47,900 |
|
|
|
1,541,422 |
|
|
Google, Inc., Class A* |
|
|
7,800 |
|
|
|
4,082,364 |
|
|
|
|
|
5,623,786 |
|
|
IT services1.03% |
|
Automatic Data Processing, Inc. |
|
|
15,600 |
|
|
|
756,132 |
|
|
Media2.35% |
|
McGraw-Hill Cos., Inc. |
|
|
25,300 |
|
|
|
1,722,424 |
|
|
Multi-utilities1.93% |
|
Dominion Resources, Inc. |
|
|
16,400 |
|
|
|
1,415,484 |
|
|
Oil, gas & consumable fuels4.55% |
|
Southwestern Energy Co.* |
|
|
25,200 |
|
|
|
1,121,400 |
|
|
XTO Energy, Inc. |
|
|
36,800 |
|
|
|
2,211,680 |
|
|
|
|
|
3,333,080 |
|
|
Pharmaceuticals3.76% |
|
Allergan, Inc. |
|
|
47,800 |
|
|
|
2,755,192 |
|
|
Road & rail1.95% |
|
Burlington Northern Santa Fe Corp. |
|
|
16,800 |
|
|
|
1,430,352 |
|
|
Semiconductors & semiconductor equipment2.26% |
|
Microchip Technology, Inc. |
|
|
24,100 |
|
|
|
892,664 |
|
|
Texas Instruments, Inc. |
|
|
20,300 |
|
|
|
763,889 |
|
|
|
|
|
1,656,553 |
|
|
Software4.85% |
|
Adobe Systems, Inc.* |
|
|
31,900 |
|
|
|
1,280,785 |
|
|
Microsoft Corp. |
|
|
77,100 |
|
|
|
2,272,137 |
|
|
|
|
|
3,552,922 |
|
|
Specialty retail1.41% |
|
Abercrombie & Fitch Co. |
|
|
14,200 |
|
|
|
1,036,316 |
|
|
Wireless telecommunication services2.08% |
|
Sprint Nextel Corp. |
|
|
73,600 |
|
|
|
1,524,256 |
|
|
Total equities (cost $68,656,475) |
|
|
72,317,806 |
|
|
77
UBS U.S. Large Cap Growth FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Short-term investment1.14% |
|
Other1.14% |
|
UBS Supplementary Trust U.S. Cash Management Prime Fund, 5.37%(1),(2) (cost $834,340) |
|
|
834,340 |
|
|
$ |
834,340 |
|
|
Total investments99.84% (cost $69,490,815) |
|
|
73,152,146 |
|
|
Cash and other assets, less liabilities0.16% |
|
|
120,608 |
|
|
Net assets100.00% |
|
$ |
73,272,754 |
|
|
Notes to portfolio of investments
Aggregate cost for federal income tax purposes was $69,591,346; and net unrealized appreciation consisted of:
Gross unrealized appreciation |
|
$ |
4,528,341 |
|
|
Gross unrealized depreciation |
|
|
(967,541 |
) |
|
Net unrealized appreciation |
|
$ |
3,560,800 |
|
|
* Non-income producing security.
(1) Investment in affiliated mutual fund.
(2) The rate shown reflects the yield at June 30, 2007.
See accompanying notes to financial statements.
78
UBS U.S. Large Cap Value Equity Fund
Portfolio performance
For the 12 months ended June 30, 2007, Class A shares of UBS U.S. Large Cap Value Equity Fund (the "Fund") returned 21.20% (Class A shares returned 14.57% after the deduction of the maximum sales charge), while Class Y shares returned 21.52%. The Fund's benchmark, the Russell 1000 Value Index (the "Index"), returned 21.87% over the same time period. (Class Y shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 81; please note that these returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.)
During the period, the Fund generally performed in line with the Index, though industry factors served as a slight drag on performance.
Portfolio performance summary
What worked
Stock selection was strong during the period, and the largest contributor to performance overall. The US equity market, despite some volatility, was, in our opinion, generally at or near fair value over the past year. However, careful research and analysis helped us to identify a number of stocks with price-to-intrinsic-value discrepancies that provided what we viewed as attractive investment opportunities. These included Mellon Financial, the Fund's top-performing stock over the period, DirecTV* and Accenture*. (For details, refer to "Portfolio Highlights.")
Additional contributions to performance came from overweights to the auto and software industries, as well as an underweight to energy reserves stocks.
Within autos, the motor vehicles and parts sector contributed to performance, particularly our holding in Johnson Controls. Rising energy costs have increased demand for the company's building efficiency products. Building products growth is also being driven by the company's exposure to emerging markets. We believe the diversification that Johnson Controls retains in terms of customer, geography, and product and business lines will enable the company to continue to produce solid results.
Energy remains one of the Fund's largest industry underweights because of our bearish view on long-run oil prices. Both the Fund's underweight to energy reserves and the Fund's overweight to oil services companies, where we found select opportunities, helped drive this industry position to outperformance. Our underweight to oil refining, however, detracted from returns; see the "What didn't work" section for details.
The Fund's overweight to computer software contributed to performance. Key holdings in this area included Microsoft and virus protection companies McAfee and Symantec.
The portfolio also benefited by what we did not own. The portfolio's underweight position in real estate investment trusts (REITs) had a positive impact on results, as the industry generally underperformed other sectors of the market.
What didn't work
Industry selection, as a whole, detracted from Fund performance, with overweights in banks and truck/sea/air freight companies, and underweights in tobacco and oil refining detracting from returns.
* This holding was sold during the reporting period.
79
UBS U.S. Large Cap Value Equity Fund
The Fund's overweight to banks, which did not perform as well as expected, had the biggest negative impact on performance over the 12 months. Nonetheless, we continue to overweight banks. We believe these companies should continue to derive attractive growth and returns from more global sources. Additionally, we believe merger and acquisition activity in this area still has a few more years to go.
The Fund's underweight to oil refining, which benefited from what we believe are unsustainably high oil prices, detracted from performance. We continue to underweight this area, and believe the Fund will be rewarded when oil prices decline.
An overweight to the truck/freight industry detracted from Fund performance. Our exposure in this area is from our position in FedEx, which we continue to find attractive.
Portfolio Highlights
Mellon Financial was the top performing stock for the reporting period. The company's shares traded higher after the Federal Reserve Board approved its proposed merger with the Bank of New York. Combining the two companies will make Bank of New York Mellon one of the top custody service providers for institutional investors and will create one of the largest asset managers.
DirecTV* also performed well during the period. The company opened a new call center in Montana to handle its continued customer growth. It also received a favorable court ruling last September when a federal judge dismissed fraud charges brought by Darlene Investments, a former strategic partner.
Accenture* was a top contributor to Fund performance as the management and technology service consultant achieved record results. Accenture took advantage of its leadership position and its global platform in order to continue to generate growth, coupled with strong financial results in a competitive landscape.
Sprint was our biggest disappointment over the last 12 months. Mobile ESPN, a lynchpin of Sprint's larger strategy to attract new subscribers using other brands, said that it will cease operations by the end of the year. Additionally, the Sprint-Nextel merger integration has experienced a larger number of customer losses than expected, which has led to a sell-off in the stock. Despite these short-term negative results, we expect the merger to yield significant long-term benefits.
Masco, which manufactures home improvement and building supplies, continued to be hit hard by the housing slump. The company announced a loss for the fourth quarter of 2006 and said it would be cutting costs, which includes the elimination of 8,000 jobs. Masco forecasted continued weakness as homebuilders cut production to reduce their inventory of unsold homes. Over time we expect Masco's diversified businesses to generate significant cash flow that is not currently being priced in by the market.
* This holding was sold during the reporting period.
This letter is intended to assist shareholders in understanding how the Fund performed during the 12 months ended June 30, 2007. The views and opinions in the letter were current as of August 15, 2007. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. Mutual funds are sold by prospectus only. You should read it carefully and consider a fund's investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be
obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/globalam-us.
80
UBS U.S. Large Cap Value Equity Fund
Average annual total return (unaudited)
|
|
|
|
1 year ended 06/30/07 |
|
5 years ended 06/30/07 |
|
Inception(1) to 06/30/07 |
|
Before deducting |
|
Class A(2) |
|
|
21.20 |
% |
|
|
13.07 |
% |
|
|
10.45 |
% |
|
maximum sales charge |
|
Class B(3) |
|
|
20.21 |
|
|
|
12.20 |
|
|
|
10.13 |
|
|
|
|
Class C(4) |
|
|
20.24 |
|
|
|
12.22 |
|
|
|
10.11 |
|
|
|
|
Class Y(5) |
|
|
21.52 |
|
|
|
13.35 |
|
|
|
9.83 |
|
|
After deducting maximum |
|
Class A(2) |
|
|
14.57 |
|
|
|
11.78 |
|
|
|
9.33 |
|
|
sales charge |
|
Class B(3) |
|
|
15.21 |
|
|
|
11.95 |
|
|
|
10.01 |
|
|
|
|
Class C(4) |
|
|
19.24 |
|
|
|
12.22 |
|
|
|
10.11 |
|
|
Russell 1000 Value Index(6) |
|
|
21.87 |
|
|
|
13.32 |
|
|
|
9.25 |
|
|
The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2006 prospectuses were as follows: Class A1.31% and 1.10%; Class B2.15% and 1.85%; Class C2.08% and 1.85%; Class Y1.06% and .85%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. 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 management fees and/or to reimburse expenses to the extent necessary so the Fund's operating expenses, through the fiscal year ending June 30, 2007, do not exceed Class A1.10%; Class B1.85%; Class C1.85%; Class Y.85%. 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.
(1) Inception dates of UBS U.S. Large Cap Value Equity Fund Class A shares is 12/07/01. Inception dates of Class B and Class C shares are 11/08/01 and 12/12/01, respectively. Inception date of Class Y shares and the Index is 06/29/01.
(2) Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.
(3) Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.
(4) Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.
(5) The Fund offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.
(6) The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectus.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
81
UBS U.S. Large Cap Value Equity Fund
Illustration of an assumed investment of $10,000 in Class A shares (adjusted for maximum sales
charge) and $10,000,000 in Class Y shares (unaudited)
The following two charts show the growth in the value of an investment in UBS U.S. Large Cap Value Equity Fund Class A shares (adjusted for 5.50% maximum sales charge), Class Y shares and the Russell 1000 Value Index, if you had invested $10,000 in Class A shares on December 7, 2001 or $10,000,000 in Class Y shares on June 29, 2001, and had reinvested all your income dividends and capital gain distributions through June 30, 2007. The performance of Class B and Class C shares will vary based upon the different inception dates, class specific expenses and sales charges. No adjustment has been made for any income taxes payable by shareholders on income dividends and capital gain distributions. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption.
UBS U.S. Large Cap Value Equity Fund Class A vs. Russell 1000 Value Index
Wealth value with dividends reinvested
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.50%.
UBS U.S. Large Cap Value Equity Fund Class Y vs. Russell 1000 Value Index
Wealth value with dividends reinvested
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
82
UBS U.S. Large Cap Value Equity Fund
Top ten equity holdings (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
Citigroup, Inc. |
|
|
5.3 |
% |
|
Morgan Stanley |
|
|
4.7 |
|
|
Wells Fargo & Co. |
|
|
4.4 |
|
|
General Electric Co. |
|
|
3.8 |
|
|
Exxon Mobil Corp. |
|
|
3.6 |
|
|
Chevron Corp. |
|
|
3.5 |
|
|
JPMorgan Chase & Co. |
|
|
3.4 |
|
|
Exelon Corp. |
|
|
2.8 |
|
|
AT&T, Inc. |
|
|
2.6 |
|
|
Wyeth |
|
|
2.5 |
|
|
Total |
|
|
36.6 |
% |
|
(1) Figures represent the direct investments of the UBS U.S. Large Cap Value Equity Fund. Figures could be different if a breakdown of the underlying investment company was included.
Industry diversification (unaudited)(2)
As a percentage of net assets as of June 30, 2007
Equities |
|
Aerospace & defense |
|
|
2.01 |
% |
|
Air freight & logistics |
|
|
1.75 |
|
|
Auto components |
|
|
4.05 |
|
|
Automobiles |
|
|
0.75 |
|
|
Beverages |
|
|
1.95 |
|
|
Biotechnology |
|
|
0.59 |
|
|
Building products |
|
|
1.58 |
|
|
Capital markets |
|
|
8.53 |
|
|
Commercial banks |
|
|
9.05 |
|
|
Diversified financial services |
|
|
10.30 |
|
|
Diversified telecommunication services |
|
|
2.56 |
|
|
Electric utilities |
|
|
6.86 |
|
|
Energy equipment & services |
|
|
4.09 |
|
|
Food & staples retailing |
|
|
1.76 |
|
|
Health care providers & services |
|
|
2.22 |
|
|
Household durables |
|
|
0.97 |
|
|
Industrial conglomerates |
|
|
3.84 |
|
|
Insurance |
|
|
3.12 |
|
|
Machinery |
|
|
3.30 |
% |
|
Media |
|
|
3.45 |
|
|
Multi-utilities |
|
|
1.74 |
|
|
Oil, gas & consumable fuels |
|
|
7.11 |
|
|
Pharmaceuticals |
|
|
6.88 |
|
|
Road & rail |
|
|
2.08 |
|
|
Software |
|
|
3.54 |
|
|
Specialty retail |
|
|
1.03 |
|
|
Thrifts & mortgage finance |
|
|
1.03 |
|
|
Wireless telecommunication services |
|
|
2.16 |
|
|
Total equities |
|
|
98.30 |
|
|
Investment company |
|
SPDR Trust, Series 1 |
|
|
0.86 |
|
|
Short-term investment |
|
|
0.92 |
|
|
Total investments |
|
|
100.08 |
|
|
Liabilities, in excess of cash and other assets |
|
|
(0.08 |
) |
|
Net assets |
|
|
100.00 |
% |
|
(2) Figures represent the industry breakdown of direct investments of the UBS U.S. Large Cap Value Equity Fund. Figures would be different if a breakdown of the underlying investment companies' industry diversification was included.
83
UBS U.S. Large Cap Value Equity FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities98.30% |
|
Aerospace & defense2.01% |
|
Lockheed Martin Corp. |
|
|
10,000 |
|
|
$ |
941,300 |
|
|
Northrop Grumman Corp. |
|
|
23,900 |
|
|
|
1,861,093 |
|
|
|
|
|
2,802,393 |
|
|
Air freight & logistics1.75% |
|
FedEx Corp. |
|
|
22,000 |
|
|
|
2,441,340 |
|
|
Auto components4.05% |
|
BorgWarner, Inc. |
|
|
25,000 |
|
|
|
2,151,000 |
|
|
Johnson Controls, Inc. |
|
|
30,100 |
|
|
|
3,484,677 |
|
|
|
|
|
5,635,677 |
|
|
Automobiles0.75% |
|
Harley-Davidson, Inc. |
|
|
17,400 |
|
|
|
1,037,214 |
|
|
Beverages1.95% |
|
Anheuser-Busch Cos., Inc. |
|
|
31,700 |
|
|
|
1,653,472 |
|
|
Constellation Brands, Inc., Class A* |
|
|
43,800 |
|
|
|
1,063,464 |
|
|
|
|
|
2,716,936 |
|
|
Biotechnology0.59% |
|
Cephalon, Inc.* |
|
|
10,200 |
|
|
|
819,978 |
|
|
Building products1.58% |
|
Masco Corp. |
|
|
77,050 |
|
|
|
2,193,614 |
|
|
Capital markets8.53% |
|
Mellon Financial Corp. |
|
|
78,900 |
|
|
|
3,471,600 |
|
|
Morgan Stanley |
|
|
78,600 |
|
|
|
6,592,968 |
|
|
Northern Trust Corp. |
|
|
28,300 |
|
|
|
1,817,992 |
|
|
|
|
|
11,882,560 |
|
|
Commercial banks9.05% |
|
City National Corp. |
|
|
11,000 |
|
|
|
836,990 |
|
|
Fifth Third Bancorp |
|
|
78,400 |
|
|
|
3,117,968 |
|
|
PNC Financial Services Group, Inc. |
|
|
35,600 |
|
|
|
2,548,248 |
|
|
Wells Fargo & Co. |
|
|
173,400 |
|
|
|
6,098,478 |
|
|
|
|
|
12,601,684 |
|
|
Diversified financial services10.30% |
|
Bank of America Corp. |
|
|
43,522 |
|
|
|
2,127,791 |
|
|
Citigroup, Inc. |
|
|
144,676 |
|
|
|
7,420,432 |
|
|
JPMorgan Chase & Co. |
|
|
98,870 |
|
|
|
4,790,251 |
|
|
|
|
|
14,338,474 |
|
|
Diversified telecommunication services2.56% |
|
AT&T, Inc. |
|
|
86,050 |
|
|
|
3,571,075 |
|
|
Electric utilities6.86% |
|
American Electric Power Co., Inc. |
|
|
58,900 |
|
|
|
2,652,856 |
|
|
Exelon Corp. |
|
|
53,500 |
|
|
|
3,884,100 |
|
|
Northeast Utilities |
|
|
59,500 |
|
|
|
1,687,420 |
|
|
Pepco Holdings, Inc. |
|
|
46,900 |
|
|
|
1,322,580 |
|
|
|
|
|
9,546,956 |
|
|
|
|
Shares |
|
Value |
|
Energy equipment & services4.09% |
|
ENSCO International, Inc. |
|
|
29,400 |
|
|
$ |
1,793,694 |
|
|
GlobalSantaFe Corp. |
|
|
26,800 |
|
|
|
1,936,300 |
|
|
Halliburton Co. |
|
|
56,900 |
|
|
|
1,963,050 |
|
|
|
|
|
5,693,044 |
|
|
Food & staples retailing1.76% |
|
Costco Wholesale Corp. |
|
|
41,800 |
|
|
|
2,446,136 |
|
|
Health care providers & services2.22% |
|
Medco Health Solutions, Inc.* |
|
|
26,400 |
|
|
|
2,058,936 |
|
|
UnitedHealth Group, Inc. |
|
|
20,200 |
|
|
|
1,033,028 |
|
|
|
|
|
3,091,964 |
|
|
Household durables0.97% |
|
Fortune Brands, Inc. |
|
|
16,400 |
|
|
|
1,350,868 |
|
|
Industrial conglomerates3.84% |
|
General Electric Co. |
|
|
139,700 |
|
|
|
5,347,716 |
|
|
Insurance3.12% |
|
Allstate Corp. |
|
|
31,300 |
|
|
|
1,925,263 |
|
|
Hartford Financial Services Group, Inc. |
|
|
24,550 |
|
|
|
2,418,421 |
|
|
|
|
|
4,343,684 |
|
|
Machinery3.30% |
|
Illinois Tool Works, Inc. |
|
|
56,300 |
|
|
|
3,050,897 |
|
|
PACCAR, Inc. |
|
|
17,800 |
|
|
|
1,549,312 |
|
|
|
|
|
4,600,209 |
|
|
Media3.45% |
|
News Corp., Class A |
|
|
71,000 |
|
|
|
1,505,910 |
|
|
Omnicom Group, Inc. |
|
|
39,000 |
|
|
|
2,063,880 |
|
|
R.H. Donnelley Corp.* |
|
|
16,200 |
|
|
|
1,227,636 |
|
|
|
|
|
4,797,426 |
|
|
Multi-utilities1.74% |
|
NiSource, Inc. |
|
|
44,800 |
|
|
|
927,808 |
|
|
Sempra Energy |
|
|
25,200 |
|
|
|
1,492,596 |
|
|
|
|
|
2,420,404 |
|
|
Oil, gas & consumable fuels7.11% |
|
Chevron Corp. |
|
|
57,800 |
|
|
|
4,869,072 |
|
|
Exxon Mobil Corp. |
|
|
60,050 |
|
|
|
5,036,994 |
|
|
|
|
|
9,906,066 |
|
|
Pharmaceuticals6.88% |
|
Bristol-Myers Squibb Co. |
|
|
64,200 |
|
|
|
2,026,152 |
|
|
Johnson & Johnson |
|
|
15,200 |
|
|
|
936,624 |
|
|
Merck & Co., Inc. |
|
|
62,200 |
|
|
|
3,097,560 |
|
|
Wyeth |
|
|
61,500 |
|
|
|
3,526,410 |
|
|
|
|
|
9,586,746 |
|
|
Road & rail2.08% |
|
Burlington Northern Santa Fe Corp. |
|
|
34,100 |
|
|
|
2,903,274 |
|
|
84
UBS U.S. Large Cap Value Equity FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities(concluded) |
|
Software3.54% |
|
McAfee, Inc.* |
|
|
1,700 |
|
|
$ |
59,840 |
|
|
Microsoft Corp. |
|
|
86,600 |
|
|
|
2,552,102 |
|
|
Symantec Corp.* |
|
|
115,000 |
|
|
|
2,323,000 |
|
|
|
|
|
4,934,942 |
|
|
Specialty retail1.03% |
|
Home Depot, Inc. |
|
|
36,400 |
|
|
|
1,432,340 |
|
|
Thrifts & mortgage finance1.03% |
|
Freddie Mac |
|
|
23,650 |
|
|
|
1,435,555 |
|
|
Wireless telecommunication services2.16% |
|
Sprint Nextel Corp. |
|
|
145,457 |
|
|
|
3,012,414 |
|
|
Total equities (cost $101,629,642) |
|
|
136,890,689 |
|
|
|
|
Shares |
|
Value |
|
Investment company0.86% |
|
SPDR Trust, Series 1 (cost $1,137,333) |
|
|
8,000 |
|
|
$ |
1,203,440 |
|
|
Short-term investment0.92% |
|
Other0.92% |
|
UBS Supplementary Trust U.S. Cash Management Prime Fund, 5.37%(1),(2) (cost $1,287,082) |
|
|
1,287,082 |
|
|
|
1,287,082 |
|
|
Total investments100.08% (cost $104,054,057) |
|
|
139,381,211 |
|
|
Liabilities, in excess of cash and other assets(0.08)% |
|
|
(114,163 |
) |
|
Net assets100.00% |
|
$ |
139,267,048 |
|
|
Notes to portfolio of investments
Aggregate cost for federal income tax purposes was $104,684,795; and net unrealized appreciation consisted of:
Gross unrealized appreciation |
|
$ |
35,259,354 |
|
|
Gross unrealized depreciation |
|
|
(562,938 |
) |
|
Net unrealized appreciation |
|
$ |
34,696,416 |
|
|
* Non-income producing security.
(1) Investment in affiliated mutual fund.
(2) The rate shown reflects the yield at June 30, 2007.
See accompanying notes to financial statements.
85
UBS U.S. Mid Cap Growth Equity Fund
Portfolio performance
For the 12 months ended June 30, 2007, Class A shares of UBS U.S. Mid Cap Growth Equity Fund (the "Fund") returned 15.94% (Class A shares returned 9.55% after the deduction of the maximum sales charge), while Class Y shares returned 16.17%. The Fund's benchmark, the Russell Midcap Growth Index (the "Index"), returned 19.73% over the same time period. (Class Y shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 88; please note that these returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.)
Performance in the Fund has historically been a function of stock selection as we do not make specific "sector calls." To that end, stock selection within the energy, technology and healthcare sectors were the main positive contributors to performance during the period, whereas stock selections in the industrial and consumer sectors were the main detractors from performance. Industry factors also made a positive contribution to returns. Overall, however, these positive contributions were outweighed by negative contributions from stock selection within the industrial and consumer sectors, which caused the Fund to underperform its benchmark.
Portfolio performance summary
What worked
In health care, the Fund's positions in medical device companies that focus on women's preventative and therapeutic solutions contributed to overall performance. Medical products in the women's health area are benefiting from both product cycles (conversions to digital technology from analog) as well as innovation of new treatment methods. In addition, the Fund benefited from solid fundamentals, as well as an active mergers and acquisitions (M&A) environment in the diagnostics industry.
Within technology, the Fund benefited from an eclectic mix of individual stock performance. We continue to benefit from several secular trends in technology, such as consumer adoption of self service hardware in both the financial services, retail and hospitality areas. The offshoring of technology labor to lower-cost markets is also a trend on which we capitalized. The Fund also benefited during the period from the performance of a collection of companies that we consider to be superior innovators in areas such as voice recognition, technology and software for creative professionals.
Within the energy sector, the Fund's largest positions are in the oil services segment. We continue to believe that years of underinvestment and increased capital intensity, combined with heightened demand from emerging markets, will provide above-average earnings and cash flow growth in these groups. In services, our research indicates that a shortage of equipment and people to develop, maintain and service rigs, especially in offshore environments, will support a long cycle of pricing power. This in turn should drive a sustainable cycle of worldwide drilling and infrastructure spending.
What didn't work
Stock selection within the industrial and consumer sectors was the main negative contributor to performance during the period.
The Fund had several disappointing performances in the industrial sector, including American Commercial Lines and Graco Industries, due to company-specific factors.
86
UBS U.S. Mid Cap Growth Equity Fund
The Fund underperformed in the consumer segment due to stock-specific performance by the following companies: Scientific Games (see "Portfolio Highlights"), Pool Corp., Texas Roadhouse, Coldwater Creek*, Tractor Supply and Bare Escentuals. Additionally, we did not own Amazon.com during the period, which hurt performanc
e when that stock saw a significant price increase.
Portfolio Highlights
Thermo Fisher Scientific was the top contributor to Fund performance during the review period. The company is the leading life science and industrial equipment supplier. Company management has consistently executed on 100-plus basis points of margin expansion every year, and we expect this to continue for the next several years.
Freescale Semiconductor, a designer and manufacturer of semiconductors for the automotive, consumer, industrial, networking and wireless markets, also contributed strongly to performance. The company entered into a leveraged buyout agreement at roughly a 25% premium to then-existing prices.
The Fund's biggest disappointment for the period was Chemed*, a leading provider of hospice services, as well as plumbing repair and maintenance services. The stock fell when the company pre-announced disappointing results due to government reimbursement issues in three programs of its hospice business. The company has divested one program and is in the process of addressing the problems in the other two. We have eliminated this position from the portfolio.
Scientific Games, a provider of instant and online lottery services both domestically and internationally, has had very mixed fundamentals over the past twelve months. While the company has been very active in securing future growth opportunities in both Latin America and Asia, recent financial results have been weighed down by spending related to these initiatives, as well as slow progress in the company's highly anticipated German markets. We continue to monitor the company's ability to execute upon the substantial growth opportunities that exist.
* This holding was sold during the reporting period.
This letter is intended to assist shareholders in understanding how the Fund performed during the 12 months ended June 30, 2007. The views and opinions in the letter were current as of August 15, 2007. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. Mutual funds are sold by prospectus only. You should read it carefully and consider a fund's investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be
obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/globalam-us.
87
UBS U.S. Mid Cap Growth Equity Fund
Average annual total return (unaudited)
|
|
|
|
1 year ended 06/30/07 |
|
Inception(1) to 06/30/07 |
|
Before deducting maximum |
|
Class A(2) |
|
|
15.94 |
% |
|
|
7.66 |
% |
|
sales charge |
|
Class C(3) |
|
|
15.14 |
|
|
|
4.97 |
|
|
|
|
Class Y(4) |
|
|
16.17 |
|
|
|
9.13 |
|
|
After deducting maximum sales charge |
|
Class A(2) |
|
|
9.55 |
|
|
|
2.90 |
|
|
|
|
Class C(3) |
|
|
14.14 |
|
|
|
4.97 |
|
|
Russell Midcap Growth Index(5) |
|
|
|
|
19.73 |
|
|
|
11.72 |
|
|
The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2006 prospectuses were as follows: Class A4.94% and 1.45%; Class C6.79% and 2.20%; Class Y4.50% and 1.20%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The 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 management fees and/or to reimburse expenses to the extent necessary so the Fund's operating expenses, through the fiscal year ending June 30, 2007, do not exceed Class A1.45%; Class C2.20%; Class Y1.20%. 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 re
imbursements, 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.
(1) Inception date of UBS U.S. Mid Cap Growth Equity Fund Class A shares is 03/31/06. Inception date of Class C shares is 04/21/06. Inception date of Class Y shares and Index is 03/27/06.
(2) Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.
(3) Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.
(4) The Fund offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.
(5) The Russell Midcap Growth Index is an unmanaged index that measures the performance of those Russell mid cap companies with higher price-to-book ratios and higher forecasted growth values.
If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectus.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
88
UBS U.S. Mid Cap Growth Equity Fund
Illustration of an assumed investment of $10,000 in Class A shares (adjusted for maximum sales
charge) and $5,000,000 in Class Y shares (unaudited)
The following two charts show the growth in the value of an investment in UBS U.S. Mid Cap Growth Equity Fund Class A shares (adjusted for 5.50% maximum sales charge), Class Y shares and the Russell Midcap Growth Index, if you had invested $10,000 in Class A shares on March 31, 2006 or $5,000,000 in Class Y shares on March 27, 2006, and had reinvested all your income dividends and capital gain distributions, if any, through June 30, 2007. The performance of Class C shares will vary based upon the different inception date, class specific expenses and sales charges. No adjustment has been made for any income taxes payable by shareholders on income dividends and capital gain distributions. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption.
UBS U.S. Mid Cap Growth Equity Fund Class A vs. Russell Midcap Growth Index
Wealth value with dividends reinvested
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.50%.
UBS U.S. Mid Cap Growth Equity Fund Class Y vs. Russell Midcap Growth Index
Wealth value with dividends reinvested
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
89
UBS U.S. Mid Cap Growth Equity Fund
Top ten equity holdings (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
Anixter International, Inc. |
|
|
4.4 |
% |
|
Thermo Fisher Scientific, Inc. |
|
|
3.8 |
|
|
MSC Industrial Direct Co. |
|
|
3.4 |
|
|
Republic Services, Inc. |
|
|
2.9 |
|
|
Harsco Corp. |
|
|
2.8 |
|
|
Roper Industries, Inc. |
|
|
2.6 |
|
|
Millipore Corp. |
|
|
2.5 |
|
|
NutriSystem, Inc. |
|
|
2.5 |
|
|
Micros Systems, Inc. |
|
|
2.4 |
|
|
Gaylord Entertainment Co. |
|
|
2.4 |
|
|
Total |
|
|
29.7 |
% |
|
(1) Figures represent the direct investments of the UBS U.S. Mid Cap Growth Equity Fund. Figures could be different if a breakdown of the underlying investment company was included.
Industry diversification (unaudited)(2)
As a percentage of net assets as of June 30, 2007
Equities |
|
Capital markets |
|
|
0.98 |
% |
|
Commercial services & supplies |
|
|
5.52 |
|
|
Communications equipment |
|
|
0.95 |
|
|
Computers & peripherals |
|
|
2.13 |
|
|
Diversified financial services |
|
|
3.06 |
|
|
Electrical equipment |
|
|
2.60 |
|
|
Electronic equipment & instruments |
|
|
6.13 |
|
|
Energy equipment & services |
|
|
11.17 |
|
|
Health care equipment & supplies |
|
|
3.12 |
|
|
Health care providers & services |
|
|
8.26 |
|
|
Hotels, restaurants & leisure |
|
|
7.61 |
|
|
Internet & catalog retail |
|
|
2.48 |
|
|
IT services |
|
|
2.72 |
|
|
Leisure equipment & products |
|
|
1.65 |
|
|
Life sciences tools & services |
|
|
6.38 |
|
|
Machinery |
|
|
4.58 |
|
|
Marine |
|
|
1.93 |
% |
|
Oil, gas & consumable fuels |
|
|
1.59 |
|
|
Personal products |
|
|
2.02 |
|
|
Semiconductors & semiconductor equipment |
|
|
3.79 |
|
|
Software |
|
|
8.18 |
|
|
Specialty retail |
|
|
2.40 |
|
|
Textiles, apparel & luxury goods |
|
|
1.28 |
|
|
Trading companies & distributors |
|
|
3.43 |
|
|
Wireless telecommunication services |
|
|
4.54 |
|
|
Total equities |
|
|
98.50 |
|
|
Investment company |
|
iShares Russell Midcap Growth Index Fund |
|
|
0.58 |
|
|
Short-term investment |
|
|
1.10 |
|
|
Total investments |
|
|
100.18 |
|
|
Liabilities, in excess of cash and other assets |
|
|
(0.18 |
) |
|
Net assets |
|
|
100.00 |
% |
|
(2) Figures represent the industry breakdown of direct investments of the UBS U.S. Mid Cap Growth Equity Fund. Figures would be different if a breakdown of the underlying investment companies' industry diversification was included.
90
UBS U.S. Mid Cap Growth Equity FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities98.50% |
|
Capital markets0.98% |
|
TD Ameritrade Holding Corp.* |
|
|
2,900 |
|
|
$ |
58,000 |
|
|
Commercial services & supplies5.52% |
|
Dun & Bradstreet Corp. |
|
|
600 |
|
|
|
61,788 |
|
|
Monster Worldwide, Inc.* |
|
|
2,200 |
|
|
|
90,420 |
|
|
Republic Services, Inc. |
|
|
5,700 |
|
|
|
174,648 |
|
|
|
|
|
326,856 |
|
|
Communications equipment0.95% |
|
F5 Networks, Inc.* |
|
|
700 |
|
|
|
56,420 |
|
|
Computers & peripherals2.13% |
|
NCR Corp.* |
|
|
2,400 |
|
|
|
126,096 |
|
|
Diversified financial services3.06% |
|
Chicago Mercantile Exchange Holdings, Inc., Class A |
|
|
100 |
|
|
|
53,436 |
|
|
Moody's Corp. |
|
|
1,000 |
|
|
|
62,200 |
|
|
Nasdaq Stock Market, Inc.* |
|
|
2,200 |
|
|
|
65,362 |
|
|
|
|
|
180,998 |
|
|
Electrical equipment2.60% |
|
Roper Industries, Inc. |
|
|
2,700 |
|
|
|
154,170 |
|
|
Electronic equipment & instruments6.13% |
|
Amphenol Corp., Class A |
|
|
2,800 |
|
|
|
99,820 |
|
|
Anixter International, Inc.* |
|
|
3,500 |
|
|
|
263,235 |
|
|
|
|
|
363,055 |
|
|
Energy equipment & services11.17% |
|
Cameron International Corp.* |
|
|
1,500 |
|
|
|
107,205 |
|
|
Complete Production Services, Inc.* |
|
|
3,600 |
|
|
|
93,060 |
|
|
Dril-Quip, Inc.* |
|
|
1,900 |
|
|
|
85,405 |
|
|
ENSCO International, Inc. |
|
|
700 |
|
|
|
42,707 |
|
|
National Oilwell Varco, Inc.* |
|
|
1,000 |
|
|
|
104,240 |
|
|
Smith International, Inc. |
|
|
2,300 |
|
|
|
134,872 |
|
|
Weatherford International Ltd.* |
|
|
1,700 |
|
|
|
93,908 |
|
|
|
|
|
661,397 |
|
|
Health care equipment & supplies3.12% |
|
Cytyc Corp.* |
|
|
1,600 |
|
|
|
68,976 |
|
|
Gen-Probe, Inc.* |
|
|
1,000 |
|
|
|
60,420 |
|
|
Hologic, Inc.* |
|
|
1,000 |
|
|
|
55,310 |
|
|
|
|
|
184,706 |
|
|
Health care providers & services8.26% |
|
Aetna, Inc. |
|
|
900 |
|
|
|
44,460 |
|
|
DaVita, Inc.* |
|
|
1,700 |
|
|
|
91,596 |
|
|
Healthways, Inc.* |
|
|
2,800 |
|
|
|
132,636 |
|
|
Henry Schein, Inc.* |
|
|
2,300 |
|
|
|
122,889 |
|
|
Psychiatric Solutions, Inc.* |
|
|
2,700 |
|
|
|
97,902 |
|
|
|
|
|
489,483 |
|
|
Hotels, restaurants & leisure7.61% |
|
Gaylord Entertainment Co.* |
|
|
2,600 |
|
|
|
139,464 |
|
|
Life Time Fitness, Inc.* |
|
|
1,600 |
|
|
|
85,168 |
|
|
Scientific Games Corp., Class A* |
|
|
2,400 |
|
|
|
83,880 |
|
|
|
|
Shares |
|
Value |
|
Hotels, restaurants & leisure(concluded) |
|
Starwood Hotels & Resorts Worldwide, Inc. |
|
|
600 |
|
|
$ |
40,242 |
|
|
Texas Roadhouse, Inc., Class A* |
|
|
8,000 |
|
|
|
102,320 |
|
|
|
|
|
451,074 |
|
|
Internet & catalog retail2.48% |
|
NutriSystem, Inc.* |
|
|
2,100 |
|
|
|
146,664 |
|
|
IT services2.72% |
|
Cognizant Technology Solutions Corp., Class A* |
|
|
700 |
|
|
|
52,563 |
|
|
VeriFone Holdings, Inc.* |
|
|
3,079 |
|
|
|
108,535 |
|
|
|
|
|
161,098 |
|
|
Leisure equipment & products1.65% |
|
Pool Corp. |
|
|
2,500 |
|
|
|
97,575 |
|
|
Life sciences tools & services6.38% |
|
Millipore Corp.* |
|
|
2,000 |
|
|
|
150,180 |
|
|
Thermo Fisher Scientific, Inc.* |
|
|
4,400 |
|
|
|
227,568 |
|
|
|
|
|
377,748 |
|
|
Machinery4.58% |
|
Graco, Inc. |
|
|
2,600 |
|
|
|
104,728 |
|
|
Harsco Corp. |
|
|
3,200 |
|
|
|
166,400 |
|
|
|
|
|
271,128 |
|
|
Marine1.93% |
|
American Commercial Lines, Inc.* |
|
|
4,400 |
|
|
|
114,620 |
|
|
Oil, gas & consumable fuels1.59% |
|
Apache Corp. |
|
|
600 |
|
|
|
48,954 |
|
|
Newfield Exploration Co.* |
|
|
1,000 |
|
|
|
45,550 |
|
|
|
|
|
94,504 |
|
|
Personal products2.02% |
|
Bare Escentuals, Inc.* |
|
|
3,500 |
|
|
|
119,525 |
|
|
Semiconductors & semiconductor equipment3.79% |
|
Microchip Technology, Inc. |
|
|
3,000 |
|
|
|
111,120 |
|
|
Tessera Technologies, Inc.* |
|
|
2,800 |
|
|
|
113,540 |
|
|
|
|
|
224,660 |
|
|
Software8.18% |
|
Adobe Systems, Inc.* |
|
|
3,100 |
|
|
|
124,465 |
|
|
Autodesk, Inc.* |
|
|
1,000 |
|
|
|
47,080 |
|
|
Citrix Systems, Inc.* |
|
|
3,100 |
|
|
|
104,377 |
|
|
Micros Systems, Inc.* |
|
|
2,600 |
|
|
|
141,440 |
|
|
Nuance Communications, Inc.* |
|
|
4,000 |
|
|
|
66,920 |
|
|
|
|
|
484,282 |
|
|
Specialty retail2.40% |
|
Dick's Sporting Goods, Inc.* |
|
|
1,100 |
|
|
|
63,987 |
|
|
Tractor Supply Co.* |
|
|
1,500 |
|
|
|
78,075 |
|
|
|
|
|
142,062 |
|
|
Textiles, apparel & luxury goods1.28% |
|
Coach, Inc.* |
|
|
1,600 |
|
|
|
75,824 |
|
|
91
UBS U.S. Mid Cap Growth Equity FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities(concluded) |
|
Trading companies & distributors3.43% |
|
MSC Industrial Direct Co. |
|
|
3,700 |
|
|
$ |
203,500 |
|
|
Wireless telecommunication services4.54% |
|
American Tower Corp., Class A* |
|
|
3,000 |
|
|
|
126,000 |
|
|
MetroPCS Communications, Inc.* |
|
|
2,400 |
|
|
|
79,296 |
|
|
SBA Communications Corp., Class A* |
|
|
1,900 |
|
|
|
63,821 |
|
|
|
|
|
269,117 |
|
|
Total equities (cost $5,204,745) |
|
|
5,834,562 |
|
|
Investment company0.58% |
|
iShares Russell Midcap Growth Index Fund (cost $34,356) |
|
|
300 |
|
|
|
34,173 |
|
|
|
|
Shares |
|
Value |
|
Short-term investment1.10% |
|
Investment company1.10% |
|
UBS U.S. Cash Management Prime Relationship Fund, 5.36%(1),(2) (cost $65,133) |
|
|
65,133 |
|
|
$ |
65,133 |
|
|
Total investments100.18% (cost $5,304,234) |
|
|
5,933,868 |
|
|
Liabilities, in excess of cash and other assets(0.18)% |
|
|
(10,597 |
) |
|
Net assets100.00% |
|
$ |
5,923,271 |
|
|
Notes to portfolio of investments
Aggregate cost for federal income tax purposes was $5,304,599; and net unrealized appreciation consisted of:
Gross unrealized appreciation |
|
$ |
746,570 |
|
|
Gross unrealized depreciation |
|
|
(117,301 |
) |
|
Net unrealized appreciation |
|
$ |
629,269 |
|
|
* Non-income producing security.
(1) Investment in affiliated mutual fund.
(2) The rate shown reflects the yield at June 30, 2007.
See accompanying notes to financial statements.
92
UBS U.S. Small Cap Growth Fund
Portfolio performance
For the 12 months ended June 30, 2007, Class A shares of UBS U.S. Small Cap Growth Fund (the "Fund") returned 14.18% (Class A shares returned 7.89% after the deduction of the maximum sales charge), while Class Y shares returned 14.54%. The Fund's benchmark, the Russell 2000 Growth Index (the "Index"), returned 16.83% over the same time period. (Class Y shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 96; please note that these returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.)
The Fund's underperformance relative to the Index was due largely to stock selection, followed by industry factors.
Portfolio performance summary
What worked
Though stock selection detracted from Fund performance during the period, some industry weightings contributed positively to returns. Overweights in medical services, clothing stores and oil services, as well as an underweight to financial servi
ces, helped the Fund's performance.
We overweighted medical services stocks, which was the Fund's best-performing industry position for the year. Within health care, the trend of people living longer and aging baby boomers provide, in our opinion, a powerful tailwind. However, regulations, heightened scrutiny of safety issues and increased competitive pressures have dampened investment returns. Against this backdrop, we identified several companies that provide services that we believe are unique, have sustainable competitive advantages and have minimal exposure to industry risk factors such as health care regulation. We anticipate healthy growth for companies that provide services in the pediatric, psychology, and veterinary services areas.
We overweighted clothing stores, a position that contributed to the Fund's performance. Consumer-related industries represent approximately two thirds of the US economy. The resilience in consumer spending over the past several years in the face of perceived pressures on disposable income has been a major driver of the US economy. Although these headwinds are likely to persist, we have been able to identify several companies that we believe are uniquely positioned to deliver sustainable earnings growth as they rapidly grow their square footage and continue to take market share from the department stores.
The Fund's overweight to oil services stocks was another contributor to positive performance. We believe that years of underinvestment and increased capital intensity, combined with heightened demand from emerging markets, have resulted in above-average earnings and cash flow growth for these stocks. In services, our research indicates that a shortage of equipment and people to develop, maintain and service rigs, especially in offshore environments, will support a long cycle of pricing power. This in turn should drive a sustainable cycle of worldwide drilling and infrastructure spending.
The Fund's underweight to financial services also helped returns. Financial services companies are being hurt by slowing loan growth, increasing non-performing assets and pressure on their net interest margins.
93
UBS U.S. Small Cap Growth Fund
What didn't work
Underperformance over the period was driven primarily by stock selection. Names such as Esco Technologies, Christopher & Banks, and Tetra Technologies hurt Fund performance. (For more detailed information, refer to "Portfolio Highlights" below.)
Among industry group weightings, our overweight to truck/sea/air freight stocks hindered performance, as did our underweights to Internet stocks, securities and asset management companies and chemicals. Despite these disappointments, the Fund remains underweight areas of the market where it is more difficult to identify sustainable growth trends.
Despite the continued growth and usage of the Internet, we remained underweighted to the Internet industry, as the majority of names within our capitalization range are market share losers to the more entrenched, large-cap companies. Sustainable earnings growth remains elusive, while industry valuations are at a premium to other fast growing industries.
Within transportation, our overweight to the truck/sea/air freight industry impacted performance. Trucking companies were impacted by weak freight volumes due in part to the slowdown in the housing and automotive sectors.
The Fund's underweight to the securities and asset management industry hurt performance for the period. These companies benefited from increased assets under management, as well as from an increased level of merger and acquisition activity.
We underweighted chemical stocks due to our belief that the general level of commodity prices is unsustainable. This hurt performance, as the sector experienced appreciation during the period.
Portfolio Highlights
Teletech Holdings, a leading innovator in customer relationship management services, was one of the Fund's top performers for the year. Teletech enjoyed an increase in its stock price due to new business awards. We remain confident in management's ability to improve margins.
Our position in Hub Group, an asset-light transportation provider of intermodal, truck brokerage and logistics services, also contributed to performance as shares reacted positively after the company reported rising intermodal volumes in their core division.
Shares of Investors Financial Services rose during the period, adding to Fund returns. The company agreed to be acquired at a premium by State Street Corp., a leading provider of financial services to institutional investors.
Shares of Esco Technologies, a leading supplier of engineered filtration products, special purpose communication systems and RF shielding and test products, saw its stock price weaken due to a delayed order for its communication systems.
94
UBS U.S. Small Cap Growth Fund
The Fund's overweight in Christopher & Banks detracted from returns. The company, a leading specialty retailer focused on the female baby boomer demographic, saw its stock price fall during the period after failing to meet sales and earnings expectations due to merchandising miscues. The company also reduced its earnings guidance on weak same-store sales results.
An overweight to Tetra Technologies held back Fund performance as the diversified oil and gas services company saw its stock price decline due to sales and earnings results that failed to meet expectations.
This letter is intended to assist shareholders in understanding how the Fund performed during the 12 months ended June 30, 2007. The views and opinions in the letter were current as of August 15, 2007. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. Mutual funds are sold by prospectus only. You should read it carefully and consider a fund's investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be
obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/globalam-us.
95
UBS U.S. Small Cap Growth Fund
Average annual total return (unaudited)
|
|
|
|
1 year ended 06/30/07 |
|
5 years ended 06/30/07 |
|
Inception(1) to 06/30/07 |
|
Before deducting |
|
Class A(2) |
|
|
14.18 |
% |
|
|
12.23 |
% |
|
|
11.54 |
% |
|
maximum sales charge |
|
Class B(3) |
|
|
13.32 |
|
|
|
11.40 |
|
|
|
9.99 |
|
|
|
|
Class C(4) |
|
|
13.33 |
|
|
|
11.39 |
|
|
|
9.67 |
|
|
|
|
Class Y(5) |
|
|
14.54 |
|
|
|
12.50 |
|
|
|
8.83 |
|
|
After deducting maximum |
|
Class A(2) |
|
|
7.89 |
|
|
|
10.97 |
|
|
|
10.81 |
|
|
sales charge |
|
Class B(3) |
|
|
8.32 |
|
|
|
11.14 |
|
|
|
9.88 |
|
|
|
|
Class C(4) |
|
|
12.33 |
|
|
|
11.39 |
|
|
|
9.67 |
|
|
Russell 2000 Growth Index(6) |
|
|
16.83 |
|
|
|
13.08 |
|
|
|
3.74 |
|
|
The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2006 prospectuses were as follows: Class A1.50% and 1.28%; Class B2.39% and 2.03%; Class C2.31% and 2.03%; Class Y1.13% and 1.03%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. 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 management fees and/or to reimburse expenses to the extent necessary so the Fund's operating expenses, through the fiscal year ending June 30, 2007, do not exceed Class A1.28%; Class B2.03%; Class C2.03%; Class Y1.03%. 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 thr
ee 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.
(1) Inception date of UBS U.S. Small Cap Growth Fund Class A shares is 12/31/98. Inception dates of Class B and Class C shares are 11/07/01 and 11/19/01, respectively. Inception date of Class Y shares and the Index is 09/30/97.
(2) Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.
(3) Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.
(4) Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.
(5) The Fund offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.
(6) The Russell 2000 Growth Index is an unmanaged index composed of those companies in the Russell 2000 Index with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index is an index composed of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index.
If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectus.
The Fund invests in IPOs which may have a magnified impact on performance.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
96
UBS U.S. Small Cap Growth Fund
Illustration of an assumed investment of $10,000 in Class A shares (adjusted for maximum sales
charge) and $5,000,000 in Class Y shares (unaudited)
The following two charts show the growth in the value of an investment in UBS U.S. Small Cap Growth Fund Class A shares (adjusted for 5.50% maximum sales charge), Class Y shares and the Russell 2000 Growth Index, if you had invested $10,000 in Class A shares on December 31, 1998 or $5,000,000 in Class Y shares on September 30, 1997, and had reinvested all your income dividends and capital gain distributions through June 30, 2007. The performance of Class B and Class C shares will vary based upon the different inception dates, class specific expenses and sales charges. No adjustment has been made for any income taxes payable by shareholders on income dividends and capital gain distributions. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption.
UBS U.S. Small Cap Growth Fund Class A vs. Russell 2000 Growth Index
Wealth value with dividends reinvested
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.50%.
UBS U.S. Small Cap Growth Fund Class Y vs. Russell 2000 Growth Index
Wealth value with dividends reinvested
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
97
UBS U.S. Small Cap Growth Fund
Top ten equity holdings (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
Pediatrix Medical Group, Inc. |
|
|
2.8 |
% |
|
Tetra Technologies, Inc. |
|
|
2.7 |
|
|
Phillips-Van Heusen Corp. |
|
|
2.6 |
|
|
Investors Financial Services Corp. |
|
|
2.2 |
|
|
VCA Antech, Inc. |
|
|
2.2 |
|
|
Orient-Express Hotels Ltd., H Shares |
|
|
2.2 |
|
|
TeleTech Holdings, Inc. |
|
|
2.1 |
|
|
Psychiatric Solutions, Inc. |
|
|
2.1 |
|
|
Nice Systems Ltd. ADR |
|
|
2.1 |
|
|
Landstar System, Inc. |
|
|
1.9 |
|
|
Total |
|
|
22.9 |
% |
|
(1) Figures represent the direct investments of the UBS U.S. Small Cap Growth Fund. Figures could be different if a breakdown of the underlying investment company was included.
Industry diversification (unaudited)(2)
As a percentage of net assets as of June 30, 2007
Equities |
|
Aerospace & defense |
|
|
2.08 |
% |
|
Air freight & logistics |
|
|
3.00 |
|
|
Biotechnology |
|
|
4.32 |
|
|
Capital markets |
|
|
2.23 |
|
|
Commercial banks |
|
|
1.33 |
|
|
Commercial services & supplies |
|
|
7.45 |
|
|
Communications equipment |
|
|
3.69 |
|
|
Computers & peripherals |
|
|
0.06 |
|
|
Construction & engineering |
|
|
1.72 |
|
|
Distributors |
|
|
1.04 |
|
|
Diversified telecommunication services |
|
|
0.59 |
|
|
Electrical equipment |
|
|
3.21 |
|
|
Electronic equipment & instruments |
|
|
2.60 |
|
|
Energy equipment & services |
|
|
4.55 |
|
|
Health care equipment & supplies |
|
|
3.56 |
|
|
Health care providers & services |
|
|
7.11 |
|
|
Health care technology |
|
|
1.72 |
|
|
Hotels, restaurants & leisure |
|
|
7.40 |
|
|
Household products |
|
|
0.99 |
|
|
Internet software & services |
|
|
1.66 |
|
|
Life sciences tools & services |
|
|
1.02 |
% |
|
Machinery |
|
|
2.49 |
|
|
Media |
|
|
0.61 |
|
|
Metals & mining |
|
|
1.90 |
|
|
Oil, gas & consumable fuels |
|
|
3.60 |
|
|
Pharmaceuticals |
|
|
0.41 |
|
|
Real estate investment trusts (REITs) |
|
|
1.77 |
|
|
Road & rail |
|
|
1.95 |
|
|
Semiconductors & semiconductor equipment |
|
|
8.57 |
|
|
Software |
|
|
5.44 |
|
|
Specialty retail |
|
|
5.27 |
|
|
Textiles, apparel & luxury goods |
|
|
2.59 |
|
|
Trading companies & distributors |
|
|
0.39 |
|
|
Total equities |
|
|
96.32 |
|
|
Investment company |
|
iShares Russell 2000 Growth Index Fund |
|
|
0.65 |
|
|
Short-term investment |
|
|
3.19 |
|
|
Total investments |
|
|
100.16 |
|
|
Liabilities, in excess of cash and other assets |
|
|
(0.16 |
) |
|
Net assets |
|
|
100.00 |
% |
|
(2) Figures represent the industry breakdown of direct investments of the UBS U.S. Small Cap Growth Fund. Figures would be different if a breakdown of the underlying investment companies' industry diversification was included.
98
UBS U.S. Small Cap Growth FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities96.32% |
|
Aerospace & defense2.08% |
|
AAR Corp.* |
|
|
219,500 |
|
|
$ |
7,245,695 |
|
|
DRS Technologies, Inc. |
|
|
41,300 |
|
|
|
2,365,251 |
|
|
|
|
|
9,610,946 |
|
|
Air freight & logistics3.00% |
|
Hub Group, Inc., Class A* |
|
|
255,100 |
|
|
|
8,969,316 |
|
|
UTi Worldwide, Inc. |
|
|
182,000 |
|
|
|
4,875,780 |
|
|
|
|
|
13,845,096 |
|
|
Biotechnology4.32% |
|
BioMarin Pharmaceuticals, Inc.* |
|
|
148,200 |
|
|
|
2,658,708 |
|
|
Cubist Pharmaceuticals, Inc.* |
|
|
91,900 |
|
|
|
1,811,349 |
|
|
Emergent Biosolutions, Inc.* |
|
|
177,800 |
|
|
|
1,831,340 |
|
|
Isis Pharmaceuticals, Inc.* |
|
|
210,100 |
|
|
|
2,033,768 |
|
|
Keryx Biopharmaceuticals, Inc.* |
|
|
164,700 |
|
|
|
1,609,119 |
|
|
LifeCell Corp.* |
|
|
172,400 |
|
|
|
5,265,096 |
|
|
Myriad Genetics, Inc.* |
|
|
82,500 |
|
|
|
3,068,175 |
|
|
Regeneron Pharmaceuticals, Inc.* |
|
|
93,200 |
|
|
|
1,670,144 |
|
|
|
|
|
19,947,699 |
|
|
Capital markets2.23% |
|
Investors Financial Services Corp. |
|
|
167,200 |
|
|
|
10,311,224 |
|
|
Commercial banks1.33% |
|
UCBH Holdings, Inc. |
|
|
336,400 |
|
|
|
6,146,028 |
|
|
Commercial services & supplies7.45% |
|
CRA International, Inc.* |
|
|
112,500 |
|
|
|
5,422,500 |
|
|
eTelecare Global Solutions, Inc. ADR* |
|
|
154,400 |
|
|
|
2,496,648 |
|
|
Healthcare Services Group, Inc. |
|
|
129,600 |
|
|
|
3,823,200 |
|
|
Kenexa Corp.* |
|
|
79,300 |
|
|
|
2,990,403 |
|
|
Korn/Ferry International* |
|
|
65,400 |
|
|
|
1,717,404 |
|
|
Labor Ready, Inc.* |
|
|
286,700 |
|
|
|
6,625,637 |
|
|
PeopleSupport, Inc.* |
|
|
148,600 |
|
|
|
1,686,610 |
|
|
TeleTech Holdings, Inc.* |
|
|
297,700 |
|
|
|
9,669,296 |
|
|
|
|
|
34,431,698 |
|
|
Communications equipment3.69% |
|
BigBand Networks, Inc.* |
|
|
77,100 |
|
|
|
1,010,781 |
|
|
Blue Coat Systems, Inc.* |
|
|
123,400 |
|
|
|
6,110,768 |
|
|
Nice Systems Ltd. ADR* |
|
|
274,200 |
|
|
|
9,525,708 |
|
|
Starent Networks Corp.* |
|
|
28,200 |
|
|
|
414,540 |
|
|
|
|
|
17,061,797 |
|
|
Computers & peripherals0.06% |
|
Data Domain, Inc.* |
|
|
11,400 |
|
|
|
262,200 |
|
|
Construction & engineering1.72% |
|
EMCOR Group, Inc.* |
|
|
108,800 |
|
|
|
7,931,520 |
|
|
Distributors1.04% |
|
LKQ Corp.* |
|
|
193,900 |
|
|
|
4,781,574 |
|
|
|
|
Shares |
|
Value |
|
Diversified telecommunication services0.59% |
|
NeuStar, Inc., Class A* |
|
|
93,600 |
|
|
$ |
2,711,592 |
|
|
Electrical equipment3.21% |
|
Energy Conversion Devices, Inc.* |
|
|
59,300 |
|
|
|
1,827,626 |
|
|
First Solar, Inc.* |
|
|
72,200 |
|
|
|
6,446,738 |
|
|
Genlyte Group, Inc.* |
|
|
83,600 |
|
|
|
6,565,944 |
|
|
|
|
|
14,840,308 |
|
|
Electronic equipment & instruments2.60% |
|
Benchmark Electronics, Inc.* |
|
|
245,450 |
|
|
|
5,552,079 |
|
|
Cognex Corp. |
|
|
200,900 |
|
|
|
4,522,259 |
|
|
RadiSys Corp.* |
|
|
156,700 |
|
|
|
1,943,080 |
|
|
|
|
|
12,017,418 |
|
|
Energy equipment & services4.55% |
|
Core Laboratories NV* |
|
|
50,700 |
|
|
|
5,155,683 |
|
|
Patterson-UTI Energy, Inc. |
|
|
132,200 |
|
|
|
3,464,962 |
|
|
Tetra Technologies, Inc.* |
|
|
439,050 |
|
|
|
12,381,210 |
|
|
|
|
|
21,001,855 |
|
|
Health care equipment & supplies3.56% |
|
Accuray, Inc.* |
|
|
80,400 |
|
|
|
1,783,272 |
|
|
AngioDynamics, Inc.* |
|
|
101,600 |
|
|
|
1,829,816 |
|
|
Arthrocare Corp.* |
|
|
149,100 |
|
|
|
6,546,981 |
|
|
Hansen Medical, Inc.* |
|
|
96,200 |
|
|
|
1,817,218 |
|
|
ResMed, Inc.* |
|
|
68,600 |
|
|
|
2,830,436 |
|
|
TomoTherapy, Inc.* |
|
|
73,900 |
|
|
|
1,619,888 |
|
|
|
|
|
16,427,611 |
|
|
Health care providers & services7.11% |
|
Pediatrix Medical Group, Inc.* |
|
|
238,400 |
|
|
|
13,147,760 |
|
|
Psychiatric Solutions, Inc.* |
|
|
262,800 |
|
|
|
9,529,128 |
|
|
VCA Antech, Inc.* |
|
|
270,400 |
|
|
|
10,191,376 |
|
|
|
|
|
32,868,264 |
|
|
Health care technology1.72% |
|
Omnicell, Inc.* |
|
|
254,900 |
|
|
|
5,296,822 |
|
|
Phase Forward, Inc.* |
|
|
158,700 |
|
|
|
2,670,921 |
|
|
|
|
|
7,967,743 |
|
|
Hotels, restaurants & leisure7.40% |
|
Buffalo Wild Wings, Inc.* |
|
|
97,494 |
|
|
|
4,054,775 |
|
|
California Pizza Kitchen, Inc.* |
|
|
292,050 |
|
|
|
6,273,234 |
|
|
CKE Restaurants, Inc. |
|
|
403,500 |
|
|
|
8,098,245 |
|
|
Orient-Express Hotels Ltd., Class A |
|
|
188,300 |
|
|
|
10,055,220 |
|
|
Texas Roadhouse, Inc., Class A* |
|
|
446,500 |
|
|
|
5,710,735 |
|
|
|
|
|
34,192,209 |
|
|
Household products0.99% |
|
Central Garden & Pet Co.* |
|
|
128,200 |
|
|
|
1,571,732 |
|
|
Central Garden & Pet Co., Class A* |
|
|
256,400 |
|
|
|
3,007,572 |
|
|
|
|
|
4,579,304 |
|
|
99
UBS U.S. Small Cap Growth FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Equities(concluded) |
|
Internet software & services1.66% |
|
comScore, Inc.* |
|
|
15,700 |
|
|
$ |
363,455 |
|
|
DivX, Inc.* |
|
|
32,200 |
|
|
|
483,000 |
|
|
Knot, Inc.* |
|
|
151,700 |
|
|
|
3,062,823 |
|
|
Limelight Networks, Inc.* |
|
|
8,900 |
|
|
|
176,042 |
|
|
Perficient, Inc.* |
|
|
173,900 |
|
|
|
3,599,730 |
|
|
|
|
|
7,685,050 |
|
|
Life sciences tools & services1.02% |
|
Advanced Magnetics, Inc.* |
|
|
35,000 |
|
|
|
2,035,600 |
|
|
Exelixis, Inc.* |
|
|
221,600 |
|
|
|
2,681,360 |
|
|
|
|
|
4,716,960 |
|
|
Machinery2.49% |
|
ESCO Technologies, Inc.* |
|
|
140,900 |
|
|
|
5,109,034 |
|
|
Middleby Corp.* |
|
|
106,800 |
|
|
|
6,388,776 |
|
|
|
|
|
11,497,810 |
|
|
Media0.61% |
|
National CineMedia, Inc.* |
|
|
100,400 |
|
|
|
2,812,204 |
|
|
Metals & mining1.90% |
|
Steel Dynamics, Inc. |
|
|
210,000 |
|
|
|
8,801,100 |
|
|
Oil, gas & consumable fuels3.60% |
|
EXCO Resources, Inc.* |
|
|
279,400 |
|
|
|
4,872,736 |
|
|
PetroHawk Energy Corp.* |
|
|
500,145 |
|
|
|
7,932,300 |
|
|
Quicksilver Resources, Inc.* |
|
|
85,500 |
|
|
|
3,811,590 |
|
|
|
|
|
16,616,626 |
|
|
Pharmaceuticals0.41% |
|
Penwest Pharmaceuticals Co.* |
|
|
153,200 |
|
|
|
1,910,404 |
|
|
Real estate investment trusts (REITs)1.77% |
|
BioMed Realty Trust, Inc. |
|
|
111,100 |
|
|
|
2,790,832 |
|
|
Ventas, Inc. |
|
|
149,000 |
|
|
|
5,401,250 |
|
|
|
|
|
8,192,082 |
|
|
Road & rail1.95% |
|
Landstar System, Inc. |
|
|
186,500 |
|
|
|
8,998,625 |
|
|
Semiconductors & semiconductor equipment8.57% |
|
Diodes, Inc.* |
|
|
136,400 |
|
|
|
5,697,428 |
|
|
Exar Corp.* |
|
|
166,200 |
|
|
|
2,227,080 |
|
|
FEI Co.* |
|
|
129,000 |
|
|
|
4,187,340 |
|
|
Hittite Microwave Corp.* |
|
|
109,800 |
|
|
|
4,691,754 |
|
|
Microsemi Corp.* |
|
|
333,800 |
|
|
|
7,994,510 |
|
|
Photronics, Inc.* |
|
|
54,900 |
|
|
|
816,912 |
|
|
|
|
Shares |
|
Value |
|
Semiconductors & semiconductor equipment(concluded) |
|
Power Integrations, Inc.* |
|
|
137,400 |
|
|
$ |
3,599,880 |
|
|
Rudolph Technologies, Inc.* |
|
|
250,413 |
|
|
|
4,159,360 |
|
|
Silicon Image, Inc.* |
|
|
180,200 |
|
|
|
1,546,116 |
|
|
Standard Microsystems Corp.* |
|
|
136,700 |
|
|
|
4,694,278 |
|
|
|
|
|
39,614,658 |
|
|
Software5.44% |
|
Factset Research Systems, Inc. |
|
|
95,200 |
|
|
|
6,506,920 |
|
|
Nuance Communications, Inc.* |
|
|
528,700 |
|
|
|
8,845,151 |
|
|
Progress Software Corp.* |
|
|
174,200 |
|
|
|
5,537,818 |
|
|
Verint Systems, Inc.* |
|
|
135,221 |
|
|
|
4,232,417 |
|
|
|
|
|
25,122,306 |
|
|
Specialty retail5.27% |
|
Children's Place Retail Stores, Inc.* |
|
|
133,000 |
|
|
|
6,868,120 |
|
|
Christopher & Banks Corp. |
|
|
298,000 |
|
|
|
5,110,700 |
|
|
DSW, Inc., Class A* |
|
|
56,300 |
|
|
|
1,960,366 |
|
|
Guitar Center, Inc.* |
|
|
66,200 |
|
|
|
3,959,422 |
|
|
Tween Brands, Inc.* |
|
|
144,900 |
|
|
|
6,462,540 |
|
|
|
|
|
24,361,148 |
|
|
Textiles, apparel & luxury goods2.59% |
|
Phillips-Van Heusen Corp. |
|
|
197,600 |
|
|
|
11,968,632 |
|
|
Trading companies & distributors0.39% |
|
Beacon Roofing Supply, Inc.* |
|
|
106,500 |
|
|
|
1,809,435 |
|
|
Total equities (cost $345,077,356) |
|
|
445,043,126 |
|
|
Investment company0.65% |
|
iShares Russell 2000 Growth Index Fund (cost $3,025,930) |
|
|
35,000 |
|
|
|
3,002,300 |
|
|
Short-term investment3.19% |
|
Other3.19% |
|
UBS Supplementary Trust U.S. Cash Management Prime Fund, 5.37%(1),(2) (cost $14,753,752) |
|
|
14,753,752 |
|
|
|
14,753,752 |
|
|
Total investments100.16% (cost $362,857,038) |
|
|
462,799,178 |
|
|
Liabilities, in excess of cash and other assets(0.16)% |
|
|
(733,340 |
) |
|
Net assets100.00% |
|
$ |
462,065,838 |
|
|
100
UBS U.S. Small Cap Growth FundPortfolio of investments
June 30, 2007
Notes to portfolio of investments
Aggregate cost for federal income tax purposes was $363,725,431; and net unrealized appreciation consisted of:
Gross unrealized appreciation |
|
$ |
114,851,443 |
|
|
Gross unrealized depreciation |
|
|
(15,777,696 |
) |
|
Net unrealized appreciation |
|
$ |
99,073,747 |
|
|
* Non-income producing security.
(1) Investment in affiliated mutual fund.
(2) The rate shown reflects the yield at June 30, 2007.
ADR American depositary receipt
See accompanying notes to financial statements.
101
UBS Absolute Return Bond Fund
Portfolio performance
For the 12 months ended June 30, 2007, Class A shares of UBS Absolute Return Bond Fund (the "Fund") returned 2.87% (Class A shares returned 0.30% after the deduction of the maximum sales charge), while Class Y shares returned 2.96%. For purposes of comparison, the Merrill Lynch US Treasury 1-3 Year Index returned 5.06%, and the US LIBOR 3-Month Index (the "Index") returned 5.60%. (Class Y shares have lower expenses than other share classes in the Fund. Returns for all share classes over various time periods are shown on page 104; please note that these returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.)
The Fund seeks to achieve consistent absolute positive returns through the active management of duration, credit quality, yield curve positioning, currency exposure, and sector and security selection. The Fund's performance was hindered over the period by security selection and our currency strategy. Performance was helped by spread management.
Portfolio performance summary
What worked
Spread management enhanced the Fund's performance (the spread is the difference between the yield paid on US Treasury bonds and higher risk securities).
Spread management across emerging markets debt, as well as investment grade and high yield corporate bonds, added to performance and helped to offset negative results from security selection (specifically the Fund's allocation to US asset-backed securities, or "ABS") in the latter half of the reporting period.
What didn't work
While duration management had a positive influence on the Fund's performance during the period, market allocation was negative, leading to an overall negative contribution from yield curve management.
We maintained a negative duration (which is a measure of a portfolio's sensitivity to changes in interest rates) over much of the reporting period, actively managing its magnitude according to short-term market movements. This stance reflected our view that the global economy was stronger than the general market expected.
Near the end of the reporting period, we steered the Fund's duration into a neutral area, since interest rates increased towards the point of indifference (that is, the level where we believe they should be). We accomplished this change by adding back duration to the US market.
At the end of the reporting period, the Fund's duration remained negative in the US, as well as in the UK and Japan, albeit to a lesser extent. We were neutral duration in the Euro-zone, and positive in Australia and the emerging debt markets.
102
UBS Absolute Return Bond Fund
Security selection detracted from the Fund's performance.
In the second half of the reporting cycle, negative security selection resulted primarily from holdings in US asset-backed securities ("ABS"). Investors grew increasingly concerned about a weakening economy, and feared wider repercussions from problems in the subprime mortgage market. These concerns drove down prices in the ABS sector. Negative performance in ABS was also magnified by limited market liquidity.
The Fund did not hold any direct subprime mortgage-backed securities. (Subprime mortgages are made to borrowers unable to qualify under traditional, more stringent criteria due to a limited or blemished credit history.) However, its allocation to second-lien mortgages (which are issued to borrowers with higher credit ratings than those to whom subprime loans are issued) hurt performance when these securities experienced markdowns.
At the end of the reportingspecifically in Junewe observed some re-pricing within the collateralized debt obligation (CDO) arena that negatively impacted the Fund's overall performance. (A CDO is an investment-grade security backed by a pool of bonds, loans and other assets.) However, not all CDO sub sectors performed in a highly correlated fashion; in addition to diversifying the Fund's CDO allocation according to the type of underlying collateral, we also employ different parts of the capital structure, a wide range of managers and different vintage years to avoid too much concentration with respect to a single return driver.
The Fund's overall broad diversification helped to limit somewhat the negative results from the Fund's ABS holdings. The vast majority of the portfolio is invested in common bonds, such as corporate bonds, supra nationals and sovereigns, which were not affected by the above-described events. Consequently, the overall credit quality of the portfolio remains robust.
Currency strategy also hindered Fund performance over the period.
We actively managed currency exposure, navigating across global fixed income markets in order to benefit from perceived price/value discrepancies in currency. During the period, our currency strategy was positioned to benefit from an unwinding of carry trades. (A carry trade is a strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase a different currency yielding a higher interest rate.) While we saw some reversal of this practice in February, it was short-lived, and carry trades picked up with vigor in March, detracting from the Fund's performance.
In our view, carry trades have pushed valuations in exchange rates further away from their fundamentals. We expect the Fund to remain positioned to benefit from a reversal of these carry trades.
This letter is intended to assist shareholders in understanding how the Fund performed during the 12 months ended June 30, 2007. The views and opinions in the letter were current as of August 15, 2007. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. Mutual funds are sold by prospectus only. You should read it carefully and consider a fund's investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be
obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/globalam-us.
103
UBS Absolute Return Bond Fund
Average annual total return (unaudited)
|
|
|
|
1 year ended 06/30/07 |
|
Inception(1) to 06/30/07 |
|
Before deducting maximum |
|
Class A(2) |
|
|
2.87 |
% |
|
|
3.48 |
% |
|
sales charge |
|
Class C(3) |
|
|
2.42 |
|
|
|
3.09 |
|
|
|
|
Class Y(4) |
|
|
2.96 |
|
|
|
3.67 |
|
|
After deducting maximum sales charge |
|
Class A(2) |
|
|
0.30 |
|
|
|
2.27 |
|
|
|
|
Fund C(3) |
|
|
1.92 |
|
|
|
3.09 |
|
|
Merrill Lynch US Treasury 1-3 Year Index(5) |
|
|
|
|
5.06 |
|
|
|
3.44 |
|
|
US LIBOR 3-Month Index(6) |
|
|
|
|
5.60 |
|
|
|
4.96 |
|
|
The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2006 prospectuses were as follows: Class A.99% and .99%; Class C1.35% and 1.35%; Class Y.77% and .77%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. 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 management fees and/or to reimburse expenses to the extent necessary so the Fund's operating expenses, through the fiscal year ending June 30, 2007, do not exceed Class A1.00%; Class C1.35%; Class Y.85%. 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 reimbur
sements, 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.
(1) Inception date of all shares of UBS Absolute Return Bond Fund is 04/27/05. Inception date of the Indices, for the purpose of this illustration, is 04/30/05.
(2) Maximum sales charge for Class A shares is 2.5%. Class A shares bear ongoing 12b-1 service fees.
(3) Maximum contingent deferred sales charge for Class C shares is 0.5% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.
(4) The Fund offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.
(5) The Merrill Lynch US Treasury 1-3 Year Index: An unmanaged index tracking short-term US Treasury securities with maturities between 1 and 3 years.
(6) The US LIBOR 3-Month Index: LIBOR is the London Interbank Offered Rate, a short-term interest rate that banks charge one another generally representative of the most competitive and current cash rate available. The US LIBOR 3-Month Index tracks the interest rate earned on a three-month inter-bank deposit in US dollars.
If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectus.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
104
UBS Absolute Return Bond Fund
Illustration of an assumed investment of $10,000 in Class A shares (adjusted for maximum sales
charge) and $5,000,000 in Class Y shares (unaudited)
The following two charts show the growth in the value of an investment in UBS Absolute Return Bond Fund Class A shares (adjusted for 2.50% maximum sales charge), Class Y shares, the Merrill Lynch US Treasury 1-3 Year Index and the US LIBOR 3-Month Index, if you had invested $10,000 in Class A shares on April 27, 2005 or $5,000,000 in Class Y shares on April 27, 2005, and had reinvested all your income dividends and capital gain distributions through June 30, 2007. The performance of Class C shares will vary based upon the different class specific expenses and sales charges. No adjustment has been made for any income taxes payable by shareholders on income dividends and capital gain distributions. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption.
UBS Absolute Return Bond Fund Class A vs.
Merrill Lynch US Treasury 1-3 Year Index and US LIBOR 3-Month Index
Wealth value with dividends reinvested
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 2.50%.
Indices are started on 04/30/05.
UBS Absolute Return Bond Fund Class Y vs.
Merrill Lynch US Treasury 1-3 Year Index and US LIBOR 3-Month Index
Wealth value with dividends reinvested
Indices are started on 04/30/05.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
105
UBS Absolute Return Bond Fund
Top ten fixed income holdings (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
Compagnie de Financement Foncier, 2.375%, due 01/29/09 |
|
|
5.2 |
% |
|
Federal Home Loan Mortgage Corp., 4.875%, due 02/09/10 |
|
|
3.8 |
|
|
Kreditanstalt fuer Wiederaufbau, 3.500%, due 07/15/09 |
|
|
3.6 |
|
|
European Investment Bank, 6.250%, due 12/07/08 |
|
|
2.9 |
|
|
Federal National Mortgage Association, 6.625%, due 09/15/09 |
|
|
2.8 |
|
|
General Electric Capital Corp., 4.375%, due 01/20/10 |
|
|
2.2 |
|
|
Federal Home Loan Mortgage Corp., 5.000%, due 02/16/17 |
|
|
2.1 |
|
|
Depfa ACS Bank, 0.750%, due 09/22/08 |
|
|
1.8 |
|
|
Landwirtschaftliche Rentenbank, 0.650%, due 09/30/08 |
|
|
1.8 |
|
|
Federal National Mortgage Association, 4.125%, due 04/15/14 |
|
|
1.5 |
|
|
Total |
|
|
27.7 |
% |
|
(1) Figures represent the direct investments of the UBS Absolute Return Bond Fund. Figures could be different if a breakdown of the underlying investment company was included.
106
UBS Absolute Return Bond Fund
Industry diversification (unaudited)(1)
As a percentage of net assets as of June 30, 2007
Bonds US bonds US corporate bonds |
|
Auto components |
|
|
0.26 |
% |
|
Automobiles |
|
|
0.44 |
|
|
Capital markets |
|
|
2.20 |
|
|
Chemicals |
|
|
0.21 |
|
|
Commercial banks |
|
|
0.41 |
|
|
Commercial services & supplies |
|
|
0.32 |
|
|
Consumer finance |
|
|
2.67 |
|
|
Containers & packaging |
|
|
0.38 |
|
|
Diversified financial services |
|
|
3.64 |
|
|
Diversified telecommunication services |
|
|
0.80 |
|
|
Electric utilities |
|
|
0.08 |
|
|
Electronic equipment & instruments |
|
|
0.07 |
|
|
Food & staples retailing |
|
|
0.79 |
|
|
Hotels, restaurants & leisure |
|
|
0.20 |
|
|
Independent power producers & energy traders |
|
|
0.16 |
|
|
Industrial conglomerates |
|
|
0.15 |
|
|
Insurance |
|
|
0.58 |
|
|
Media |
|
|
0.82 |
|
|
Metals & mining |
|
|
0.15 |
|
|
Multi-utilities |
|
|
0.30 |
|
|
Office electronics |
|
|
0.35 |
|
|
Oil, gas & consumable fuels |
|
|
0.56 |
|
|
Paper & forest products |
|
|
0.22 |
|
|
Real estate investment trusts (REITs) |
|
|
0.17 |
|
|
Semiconductors & semiconductor equipment |
|
|
0.12 |
|
|
Textiles, apparel & luxury goods |
|
|
0.44 |
|
|
Thrifts & mortgage finance |
|
|
0.82 |
|
|
Tobacco |
|
|
0.26 |
|
|
Wireless telecommunication services |
|
|
0.08 |
|
|
Total US corporate bonds |
|
|
17.65 |
|
|
Asset-backed securities |
|
|
3.03 |
|
|
Collateralized debt obligations |
|
|
2.58 |
|
|
Commercial mortgage-backed securities |
|
|
2.16 |
|
|
Mortgage & agency debt securities |
|
|
17.42 |
|
|
Stripped mortgage-backed security |
|
|
0.02 |
|
|
Total US bonds |
|
|
42.86 |
|
|
International bonds International corporate bonds |
|
Building products |
|
|
0.50 |
% |
|
Chemicals |
|
|
0.03 |
|
|
Commercial banks |
|
|
14.48 |
|
|
Commercial services & supplies |
|
|
0.16 |
|
|
Construction & engineering |
|
|
0.78 |
|
|
Containers & packaging |
|
|
0.17 |
|
|
Diversified financial services |
|
|
0.86 |
|
|
Diversified telecommunication services |
|
|
1.65 |
|
|
Electric utilities |
|
|
1.37 |
|
|
Media |
|
|
0.39 |
|
|
Multi-utilities |
|
|
0.89 |
|
|
Paper & forest products |
|
|
0.50 |
|
|
Thrifts & mortgage finance |
|
|
5.57 |
|
|
Total international corporate bonds |
|
|
27.35 |
|
|
International asset-backed security |
|
|
0.02 |
|
|
International collateralized debt obligations |
|
|
5.66 |
|
|
International commercial mortgage-backed securities |
|
|
0.41 |
|
|
International mortgage & agency debt securities |
|
|
0.35 |
|
|
Foreign government bonds |
|
|
6.24 |
|
|
Sovereign/supranational bonds |
|
|
3.05 |
|
|
Total international bonds |
|
|
43.08 |
|
|
Total bonds |
|
|
85.94 |
|
|
Investment company |
|
UBS U.S. Securitized Mortgage Relationship Fund |
|
|
5.33 |
|
|
Short-term investments |
|
|
2.14 |
|
|
Total investments |
|
|
93.41 |
|
|
Cash and other assets, less liabilities |
|
|
6.59 |
|
|
Net assets |
|
|
100.00 |
% |
|
(1) Figures represent the industry breakdown of direct investments of the UBS Absolute Return Bond Fund. Figures would be different if a breakdown of the underlying investment companies' industry diversification was included.
107
UBS Absolute Return Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds85.94% |
|
US bonds42.86% |
|
US corporate bonds17.65% |
|
AES Corp., 8.750%, due 06/15/08 |
|
$ |
750,000 |
|
|
$ |
764,063 |
|
|
9.500%, due 06/01/09 |
|
|
100,000 |
|
|
|
104,500 |
|
|
AK Steel Corp., 7.875%, due 02/15/09 |
|
|
649,000 |
|
|
|
647,378 |
|
|
American Cellular Corp., Series B, 10.000%, due 08/01/11 |
|
|
404,000 |
|
|
|
423,190 |
|
|
American General Finance Corp., 5.375%, due 10/01/12 |
|
|
2,500,000 |
|
|
|
2,466,740 |
|
|
Aramark Corp., 8.856%, due 02/01/15(1),(2) |
|
|
1,000,000 |
|
|
|
1,015,000 |
|
|
ArvinMeritor, Inc., 8.125%, due 09/15/15 |
|
|
1,500,000 |
|
|
|
1,453,125 |
|
|
AT&T, Inc., 5.875%, due 02/01/12 |
|
|
875,000 |
|
|
|
882,442 |
|
|
Berkshire Hathaway Finance Corp., 4.125%, due 01/15/10 |
|
|
2,400,000 |
|
|
|
2,333,362 |
|
|
Boeing Capital Corp., Ltd., 7.375%, due 09/27/10 |
|
|
825,000 |
|
|
|
873,204 |
|
|
Boise Cascade LLC, 7.125%, due 10/15/14 |
|
|
300,000 |
|
|
|
285,000 |
|
|
Bowater, Inc., 9.000%, due 08/01/09 |
|
|
940,000 |
|
|
|
954,100 |
|
|
Caesars Entertainment, Inc., 8.125%, due 05/15/11 |
|
|
1,050,000 |
|
|
|
1,095,937 |
|
|
Cincinnati Bell, Inc., 7.250%, due 07/15/13 |
|
|
1,200,000 |
|
|
|
1,230,000 |
|
|
Citigroup, Inc., 3.625%, due 11/30/17(1) |
|
EUR |
650,000 |
|
|
|
823,481 |
|
|
5.625%, due 08/27/12 |
|
$ |
940,000 |
|
|
|
940,200 |
|
|
Comcast Cable Communications LLC, 6.750%, due 01/30/11 |
|
|
850,000 |
|
|
|
879,798 |
|
|
Countrywide Home Loans, Inc., 3.250%, due 05/21/08 |
|
|
1,900,000 |
|
|
|
1,862,154 |
|
|
CSC Holdings, Inc., Series B, 8.125%, due 08/15/09 |
|
|
1,200,000 |
|
|
|
1,224,000 |
|
|
DaimlerChrysler N.A. Holding Corp., 7.200%, due 09/01/09 |
|
|
2,370,000 |
|
|
|
2,443,104 |
|
|
Edison Mission Energy, 7.000%, due 05/15/17(2) |
|
|
290,000 |
|
|
|
273,325 |
|
|
7.200%, due 05/15/19(2) |
|
|
200,000 |
|
|
|
188,000 |
|
|
Ford Motor Credit Co. LLC, 5.800%, due 01/12/09 |
|
|
4,350,000 |
|
|
|
4,258,006 |
|
|
Freeport-McMoRan Copper & Gold, Inc., 8.564%, due 04/01/15(1) |
|
|
175,000 |
|
|
|
183,313 |
|
|
Freescale Semiconductor, Inc., 8.875%, due 12/15/14(2) |
|
|
475,000 |
|
|
|
453,625 |
|
|
10.125%, due 12/15/16(2) |
|
|
200,000 |
|
|
|
188,000 |
|
|
|
|
Face amount |
|
Value |
|
US corporate bonds(continued) |
|
General Electric Capital Corp., 3.600%, due 10/15/08 |
|
$ |
1,875,000 |
|
|
$ |
1,833,817 |
|
|
4.375%, due 01/20/10 |
|
EUR |
9,095,000 |
|
|
|
12,206,079 |
|
|
6.750%, due 03/15/32 |
|
$ |
4,050,000 |
|
|
|
4,394,120 |
|
|
Giant Industries, Inc., 11.000%, due 05/15/12 |
|
|
600,000 |
|
|
|
633,000 |
|
|
GMAC LLC, 7.250%, due 03/02/11 |
|
|
1,920,000 |
|
|
|
1,913,704 |
|
|
Goldman Sachs Group, Inc., 5.500%, due 10/12/21 |
|
GBP |
550,000 |
|
|
|
999,474 |
|
|
Harland Clarke Holdings Corp., 10.106%, due 05/15/15(1),(2) |
|
$ |
840,000 |
|
|
|
810,600 |
|
|
International Lease Finance Corp., 3.300%, due 01/23/08 |
|
|
1,875,000 |
|
|
|
1,853,244 |
|
|
JPMorgan Chase Bank N.A., 4.375%, due 11/30/21(1) |
|
EUR |
1,800,000 |
|
|
|
2,268,228 |
|
|
Kinder Morgan Energy Partners LP, 5.800%, due 03/15/35 |
|
$ |
2,750,000 |
|
|
|
2,442,973 |
|
|
Lehman Brothers Holdings, Inc., 4.750%, due 01/16/14 |
|
EUR |
3,860,000 |
|
|
|
5,076,396 |
|
|
Levi Strauss & Co., 12.250%, due 12/15/12 |
|
$ |
2,250,000 |
|
|
|
2,435,625 |
|
|
Marsh & McLennan Cos., Inc., 6.250%, due 03/15/12 |
|
|
875,000 |
|
|
|
880,899 |
|
|
Mirant North America LLC, 7.375%, due 12/31/13 |
|
|
1,600,000 |
|
|
|
1,636,000 |
|
|
Morgan Stanley, 5.300%, due 03/01/13 |
|
|
3,840,000 |
|
|
|
3,763,864 |
|
|
5.750%, due 10/18/16 |
|
|
2,410,000 |
|
|
|
2,354,356 |
|
|
Nexstar Finance, Inc., 7.000%, due 01/15/14 |
|
|
750,000 |
|
|
|
742,500 |
|
|
Nissan Motor Acceptance Corp., 5.625%, due 03/14/11(2) |
|
|
2,570,000 |
|
|
|
2,554,593 |
|
|
Owens-Brockway Glass Container, Inc., 8.250%, due 05/15/13 |
|
|
200,000 |
|
|
|
207,000 |
|
|
Owens-Illinois, Inc., 7.350%, due 05/15/08 |
|
|
1,900,000 |
|
|
|
1,904,750 |
|
|
PolyOne Corp., 10.625%, due 05/15/10 |
|
|
1,082,000 |
|
|
|
1,136,100 |
|
|
Qwest Communications International, Inc., 7.500%, due 02/15/14 |
|
|
50,000 |
|
|
|
50,625 |
|
|
R.H. Donnelley Corp., 8.875%, due 01/15/16 |
|
|
75,000 |
|
|
|
78,000 |
|
|
Residential Capital LLC, 5.125%, due 05/17/12 |
|
EUR |
2,100,000 |
|
|
|
2,674,695 |
|
|
Safeway, Inc., 4.800%, due 07/16/07 |
|
$ |
900,000 |
|
|
|
899,547 |
|
|
Sanmina-SCI Corp., 8.110%, due 06/15/14(1),(2) |
|
|
410,000 |
|
|
|
410,000 |
|
|
Sheridan Group, Inc., 10.250%, due 08/15/11 |
|
|
725,000 |
|
|
|
761,250 |
|
|
108
UBS Absolute Return Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
US bonds(continued) |
|
US corporate bonds(concluded) |
|
Simon Property Group LP, 5.375%, due 06/01/11 |
|
$ |
925,000 |
|
|
$ |
918,063 |
|
|
Sinclair Broadcast Group, Inc., 8.000%, due 03/15/12 |
|
|
717,000 |
|
|
|
738,510 |
|
|
SLM Corp., 4.750%, due 03/17/14 |
|
EUR |
800,000 |
|
|
|
902,156 |
|
|
Sprint Capital Corp., 8.750%, due 03/15/32 |
|
$ |
2,000,000 |
|
|
|
2,246,260 |
|
|
Univision Communications, Inc., 7.850%, due 07/15/11 |
|
|
650,000 |
|
|
|
669,500 |
|
|
UST, Inc., 6.625%, due 07/15/12 |
|
|
1,375,000 |
|
|
|
1,426,307 |
|
|
Wal-Mart Stores, Inc., 4.750%, due 01/29/13 |
|
GBP |
475,000 |
|
|
|
890,852 |
|
|
6.875%, due 08/10/09 |
|
$ |
2,525,000 |
|
|
|
2,603,949 |
|
|
WDAC Subsidiary Corp., 8.500%, due 12/01/14 |
|
EUR |
150,000 |
|
|
|
212,153 |
|
|
Xerox Capital Trust I, 8.000%, due 02/01/27 |
|
$ |
1,900,000 |
|
|
|
1,950,565 |
|
|
Total US corporate bonds (cost $98,673,717) |
|
|
97,724,801 |
|
|
Asset-backed securities3.03% |
|
ACE Securities Corp., Series 06-SL1, Class B1, 8.320%, due 09/25/35(1),(2),(3),(4) |
|
|
800,000 |
|
|
|
80,000 |
|
|
American Express Credit Account Master Trust, Series 07-1, Class C, 5.590%, due 09/15/14(1),(2) |
|
|
1,500,000 |
|
|
|
1,499,363 |
|
|
Bank of America Credit Card Trust, Series 07-C1, Class C1, 5.610%, due 06/15/14(1) |
|
|
2,000,000 |
|
|
|
2,001,875 |
|
|
Capital One Multi-Asset Execution Trust, Series 07-C2, Class C2, 5.620%, due 11/15/14(1) |
|
|
1,250,000 |
|
|
|
1,249,984 |
|
|
Countrywide Asset-Backed Certificates, Series 06-S9, Class A5, 5.871%, due 08/25/36(1),(3) |
|
|
1,500,000 |
|
|
|
1,409,421 |
|
|
First Franklin Mortgage Loan Asset-Backed Certificates, Series 06-FFA, Class B2, 6.000%, due 09/25/26(2),(3),(5) |
|
|
759,131 |
|
|
|
151,826 |
|
|
Green Tree Financial Corp., Series 99-3, Class A6, 6.500%, due 02/01/31 |
|
|
1,150,000 |
|
|
|
1,150,863 |
|
|
GSAMP Trust, Series 05-S1, Class B1, 6.208%, due 12/25/34(3),(5) |
|
|
787,844 |
|
|
|
196,961 |
|
|
|
|
Face amount |
|
Value |
|
Asset-backed securities(concluded) |
|
Harley-Davidson Motorcycle Trust, Series 07-2, Series B, 5.230%, due 03/15/14 |
|
$ |
1,250,000 |
|
|
$ |
1,250,000 |
|
|
Home Equity Mortgage Trust, Series 06-4, Class B1, 9.320%, due 11/25/36(1),(3) |
|
|
600,000 |
|
|
|
24,000 |
|
|
Series 06-4, Class B2, 9.320%, due 11/25/36(1),(2),(3),(4) |
|
|
500,000 |
|
|
|
15,000 |
|
|
Hyundai Auto Receivables Trust, Series 05-A, Class D, 4.450%, due 02/15/12 |
|
|
1,000,000 |
|
|
|
983,136 |
|
|
Merrill Lynch Mortgage Investors, Inc., Series 05-SL3, Class B3, 7.470%, due 07/25/36(1),(3) |
|
|
2,450,000 |
|
|
|
1,631,244 |
|
|
Series 04-SL2, Class B4, 10.070%, due 06/25/35(1),(2),(3) |
|
|
1,200,000 |
|
|
|
889,854 |
|
|
Washington Mutual Master Note Trust, Series 06-C3A, Class C3A, 5.700%, due 10/15/13(1),(2) |
|
|
1,500,000 |
|
|
|
1,499,988 |
|
|
Series 07-C1, Class C1, 5.720%, due 05/15/14(1),(2),(4) |
|
|
1,000,000 |
|
|
|
993,000 |
|
|
Wells Fargo Home Equity Trust, Series 05-3, Class M7, 6.470%, due 11/25/35(1) |
|
|
1,775,000 |
|
|
|
1,751,295 |
|
|
Total asset-backed securities (cost $20,615,008) |
|
|
16,777,810 |
|
|
Collateralized debt obligations2.58% |
|
Ajax One Ltd., Series 2A, Class C, 7.820%, due 09/08/32(1),(2),(3) |
|
|
500,000 |
|
|
|
465,000 |
|
|
Ares VR CLO Ltd., Series 06-1A, Class D, 7.260%, due 02/24/18(1),(2),(3),(4) |
|
|
890,000 |
|
|
|
851,730 |
|
|
Ares X CLO Ltd., Series 05-1A, Class D2, 7.360%, due 09/18/17(1),(2),(3),(4) |
|
|
500,000 |
|
|
|
485,450 |
|
|
Avery Street CLO, Series 06-1A, Class E, 10.350%, due 04/05/18(1),(2),(3) |
|
|
700,000 |
|
|
|
703,500 |
|
|
Brentwood CLO Ltd., Series 06-1I, Class D, 9.106%, due 02/01/22(1),(3) |
|
|
310,000 |
|
|
|
292,578 |
|
|
Brentwood Investors CDO Corp., Series 07-01, due 05/01/16(2),(3),(6) |
|
|
250,000 |
|
|
|
250,000 |
|
|
Colts, Series 07-1, due 03/20/21(2),(3),(6) |
|
|
300,000 |
|
|
|
294,000 |
|
|
Commercial Industrial Finance Corp., Series 06-2A, Class B2L, 9.360%, due 03/01/21(1),(2),(3) |
|
|
280,000 |
|
|
|
270,648 |
|
|
109
UBS Absolute Return Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
US bonds(continued) |
|
Collateralized debt obligations(continued) |
|
Duke Funding Ltd., Series 06-11A, Class B1E, 6.286%, due 08/08/46(2),(3) |
|
EUR |
878,045 |
|
|
$ |
1,088,090 |
|
|
Fortius Funding Ltd., Series 06-2A, Class INC, due 02/03/42(3),(4),(6) |
|
$ |
280,000 |
|
|
|
117,600 |
|
|
GoldenTree Capital Opportunities LP, Series 06-1A, Class D1, 7.460%, due 02/22/20(1),(2),(3),(4) |
|
|
600,000 |
|
|
|
600,000 |
|
|
GoldenTree Loan Opportunities III Ltd., Series 07-3A, Class SUB, due 05/01/22(2),(3),(6) |
|
|
430,000 |
|
|
|
442,083 |
|
|
Greywolf CLO Ltd., Series 07-1A, Class SUB, due 02/18/21(2),(3),(4),(6) |
|
|
250,000 |
|
|
|
245,000 |
|
|
Hereford Street ABS CDO Ltd., Series 05-1A, Class D, 8.250%, due 01/03/45(1),(2),(3) |
|
|
700,000 |
|
|
|
541,485 |
|
|
Hewett's Island CDO Ltd., Series 06-4A, Class C, 6.107%, due 05/09/18(1),(2),(3) |
|
|
250,000 |
|
|
|
248,350 |
|
|
Series 06-4A, Class D1, 7.007%, due 05/09/18(1),(2),(3) |
|
|
250,000 |
|
|
|
238,075 |
|
|
Series 07-6A, Class D, 7.630%, due 06/09/19(1),(2),(3) |
|
|
250,000 |
|
|
|
247,467 |
|
|
Series 06-4A, Class E, 9.907%, due 05/09/18(1),(2),(3) |
|
|
350,000 |
|
|
|
350,000 |
|
|
Longport Funding Ltd., Series 07-1A. Class D, 11.598%, due 04/12/51(1),(2),(3) |
|
|
500,000 |
|
|
|
428,500 |
|
|
Longshore CDO Funding Ltd., Series 06-1A, Class D, 8.255%, due 05/03/46(1),(2),(3) |
|
|
380,000 |
|
|
|
307,800 |
|
|
MC Funding Ltd., Series 06-1, due 12/20/20(2),(3),(6) |
|
|
490,000 |
|
|
|
482,895 |
|
|
Series 06-1A, Class E, 9.110%, due 12/20/20(1),(2),(3) |
|
|
640,000 |
|
|
|
604,947 |
|
|
OHA Park Avenue CLO Ltd., Series 07-1A, Class SUB, due 03/14/22(2),(3),(6) |
|
|
370,000 |
|
|
|
355,200 |
|
|
Sagittarius CDO Ltd., Series 07-1A, Class C, 7.420%, due 12/10/51(1),(2),(3) |
|
|
1,040,000 |
|
|
|
936,000 |
|
|
Shasta CLO I Ltd., due 04/20/21(2),(3),(6) |
|
|
770,000 |
|
|
|
739,200 |
|
|
Spirit CBO, Series 04-2A, Class D, 6.097%, due 10/27/10(1),(2),(3) |
|
|
736,613 |
|
|
|
724,828 |
|
|
|
|
Face amount |
|
Value |
|
Collateralized debt obligations(concluded) |
|
Taberna Preferred Funding Ltd., Series 06-7A, Class A3L, 6.806%, due 02/05/37(1),(2),(3) |
|
$ |
240,000 |
|
|
$ |
231,144 |
|
|
Series 06-7A, Class B1L, 8.306%, due 02/05/37(1),(2),(3) |
|
|
310,000 |
|
|
|
294,500 |
|
|
Tricadia CDO Ltd., Series 05-4A, Class B1L, 8.610%, due 12/11/40(1),(2),(3) |
|
|
505,015 |
|
|
|
488,905 |
|
|
Series 05-3A, Class B1L, 8.860%, due 06/25/41(1),(2),(3) |
|
|
481,236 |
|
|
|
469,494 |
|
|
Series 06-5A, Class F, 11.360%, due 06/19/46(1),(2),(3) |
|
|
587,064 |
|
|
|
487,264 |
|
|
Total collateralized debt obligations (cost $14,946,278) |
|
|
14,281,733 |
|
|
Commercial mortgage-backed securities2.16% |
|
Banc of America Large Loan, Series 06-LAQ, Class L, 6.870%, due 02/09/21(1),(2) |
|
|
1,600,000 |
|
|
|
1,591,868 |
|
|
Bear Stearns Commercial Mortgage Securities, Series 07-BB, Class MS-41, 5.820%, due 03/15/22 |
|
|
1,500,000 |
|
|
|
1,500,000 |
|
|
GS Mortgage Securities Corp., II, Series 98-GLII, Class F, 7.191%, due 04/13/31(1),(2) |
|
|
1,650,000 |
|
|
|
1,718,978 |
|
|
Series 07-GKK1, Class A1, 5.700%, due 12/20/49(1),(2),(3) |
|
|
2,000,000 |
|
|
|
1,939,400 |
|
|
Hilton Hotel Pool Trust, Series 00-HLTA, Class C, 7.458%, due 10/03/15(2) |
|
|
1,000,000 |
|
|
|
1,032,222 |
|
|
LB Commercial Conduit Mortgage Trust, Series 98-C4, Class G, 5.600%, due 10/15/35(2) |
|
|
1,000,000 |
|
|
|
985,945 |
|
|
Nomura Asset Securities Corp., Series 98-D6, Class B1, 6.000%, due 03/15/30(2) |
|
|
1,472,000 |
|
|
|
1,497,743 |
|
|
TW Hotel Funding 2005 LLC, Series 05-LUX, Class L, 6.870%, due 01/15/21(1),(2) |
|
|
1,702,946 |
|
|
|
1,694,723 |
|
|
Total commercial mortgage-backed securities (cost $12,190,373) |
|
|
11,960,879 |
|
|
Mortgage & agency debt securities17.42% |
|
Banc of America Funding Corp., Series 06-F, Class B1, 5.605%, due 07/20/36(1) |
|
|
999,176 |
|
|
|
979,032 |
|
|
Series 07-C, Class 1A4, 5.763%, due 05/20/36(1) |
|
|
2,200,000 |
|
|
|
2,139,137 |
|
|
Series 07-1, Class 1B1, 6.000%, due 01/25/37 |
|
|
1,246,231 |
|
|
|
1,209,545 |
|
|
Series 06-H, Class B1, 6.111%, due 09/20/46(1) |
|
|
1,496,713 |
|
|
|
1,496,036 |
|
|
110
UBS Absolute Return Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
US bonds(concluded) |
|
Mortgage & agency debt securities(continued) |
|
Banc of America Mortgage Securities, Inc., Series 06-3, Class 30B1, 6.250%, due 10/25/36 |
|
$ |
2,273,403 |
|
|
$ |
2,230,066 |
|
|
Bear Stearns Adjustable Rate Mortgage Trust, Series 07-3, Class 2A1, 5.650%, due 05/25/47 |
|
|
2,728,465 |
|
|
|
2,695,986 |
|
|
Chase Mortgage Finance Corp., Series 07-S2, Class B1, 5.870%, due 03/25/37(1),(4) |
|
|
2,038,111 |
|
|
|
1,944,012 |
|
|
Citigroup Mortgage Loan Trust, Inc., Series 06-AR6, Class 1B1, 6.075%, due 08/25/36(1) |
|
|
998,717 |
|
|
|
990,602 |
|
|
Series 07-AR4, Class 1B1, 6.100%, due 03/25/37(1) |
|
|
1,999,263 |
|
|
|
1,964,752 |
|
|
Countrywide Alternative Loan Trust, Series 05-79CB, Class M, 5.500%, due 01/25/36(4) |
|
|
660,000 |
|
|
|
601,657 |
|
|
Series 06-5T2, Class A3, 6.000%, due 04/25/36 |
|
|
760,236 |
|
|
|
761,239 |
|
|
Federal Home Loan Mortgage Corp., 4.875%, due 02/09/10 |
|
|
21,150,000 |
|
|
|
20,983,592 |
|
|
5.000%, due 02/16/17 |
|
|
12,000,000 |
|
|
|
11,587,932 |
|
|
Federal National Mortgage Association, 4.125%, due 04/15/14 |
|
|
9,000,000 |
|
|
|
8,366,274 |
|
|
6.625%, due 09/15/09 |
|
|
15,050,000 |
|
|
|
15,493,027 |
|
|
IndyMac INDX Mortgage Loan Trust, Series 06-AR31, Class A5, 6.115%, due 11/25/36(1) |
|
|
700,000 |
|
|
|
691,155 |
|
|
Series 06-AR19, Class 1B2, 6.419%, due 08/25/36(1) |
|
|
996,145 |
|
|
|
984,004 |
|
|
Lehman Structured Securities Corp., Series 07-1, Class M5, 5.033%, due 10/28/34(1),(2) |
|
|
974,888 |
|
|
|
948,230 |
|
|
Merrill Lynch Alternative Note Asset, Series 07-F1, Class 2A1, 6.000%, due 03/25/37 |
|
|
1,243,353 |
|
|
|
1,239,420 |
|
|
MLCC Mortgage Investors, Inc., Series 07-1, Class 4A3, 5.746%, due 01/25/37(1) |
|
|
2,000,000 |
|
|
|
1,922,025 |
|
|
Series 07-1, Class M2, 6.147%, due 01/25/37(1) |
|
|
1,501,817 |
|
|
|
1,502,639 |
|
|
Residential Accredit Loans, Inc., Series 06-Q55, Class M1, 6.000%, due 05/25/36 |
|
|
1,086,249 |
|
|
|
1,056,543 |
|
|
|
|
Face amount |
|
Value |
|
Mortgage & agency debt securities(concluded) |
|
Series 06-QS5, Class A6, 6.000%, due 05/25/36 |
|
$ |
989,801 |
|
|
$ |
995,275 |
|
|
Series 07-QS6, A29, 6.000%, due 04/25/37 |
|
|
1,464,437 |
|
|
|
1,462,592 |
|
|
Structured Adjustable Rate Mortgage Loan Trust, Series 07-3, Class B2II, 5.890%, due 04/25/37(1) |
|
|
1,821,520 |
|
|
|
1,762,219 |
|
|
WaMu Mortgage Pass-Through Certificates, Series 06-AR14, Class 1B1, 5.651%, due 11/25/36(1) |
|
|
1,099,253 |
|
|
|
1,081,699 |
|
|
Series 07-HY5, Class 2B1, 5.722%, due 05/25/37(1) |
|
|
2,454,846 |
|
|
|
2,395,872 |
|
|
Series 07-HY1, Class LB2, 5.804%, due 02/25/37(1) |
|
|
549,941 |
|
|
|
536,945 |
|
|
Series 06-AR8, Class 1A1, 5.900%, due 08/25/46(1) |
|
|
309,891 |
|
|
|
309,576 |
|
|
Series 07-HY7, Class 3A1, 5.925%, due 07/25/37(1) |
|
|
1,000,000 |
|
|
|
998,398 |
|
|
Wells Fargo Alternative Loan Trust, Series 07-PA1, Class B1, 6.250%, due 03/25/37 |
|
|
1,995,247 |
|
|
|
1,928,423 |
|
|
Wells Fargo Mortgage Backed Securities Trust, Series 07-4, Class B1, 6.000%, due 04/25/37 |
|
|
1,996,881 |
|
|
|
1,983,153 |
|
|
Series 06-AR19, Class B1, 6.168%, due 12/25/36(1) |
|
|
1,249,016 |
|
|
|
1,240,170 |
|
|
Total mortgage & agency debt securities (cost $97,877,672) |
|
|
96,481,227 |
|
|
Stripped mortgage-backed security0.02% |
|
Structured Adjustable Rate Mortgage Loan Trust, Series 05-21, Class 6AX, IO, 5.500%, due 11/25/35(1),(3) (cost $119,331) |
|
|
751,999 |
|
|
|
108,374 |
|
|
Total US bonds (cost $244,422,379) |
|
|
237,334,824 |
|
|
International bonds43.08% |
|
International corporate bonds27.35% |
|
Austria0.50% |
|
Wienerberger AG, 6.500%, due 02/09/17(1),(7) |
|
EUR |
2,100,000 |
|
|
|
2,775,594 |
|
|
Canada0.83% |
|
Abitibi-Consolidated, Inc., 6.950%, due 04/01/08 |
|
$ |
1,975,000 |
|
|
|
1,955,250 |
|
|
8.550%, due 08/01/10 |
|
|
400,000 |
|
|
|
382,000 |
|
|
Bowater Canada Finance Corp., 7.950%, due 11/15/11 |
|
|
450,000 |
|
|
|
423,563 |
|
|
Quebecor World Capital Corp., 4.875%, due 11/15/08 |
|
|
925,000 |
|
|
|
897,250 |
|
|
111
UBS Absolute Return Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
International bonds(continued) |
|
International corporate bonds(concluded) |
|
Canada(concluded) |
|
Stone Container Finance, 7.375%, due 07/15/14 |
|
$ |
980,000 |
|
|
$ |
940,800 |
|
|
|
|
|
4,598,863 |
|
|
France7.69% |
|
BNP Paribas, 5.250%, due 12/17/12 |
|
EUR |
4,665,000 |
|
|
|
6,421,988 |
|
|
Compagnie de Financement Foncier, 2.375%, due 01/29/09 |
|
|
21,800,000 |
|
|
|
28,545,730 |
|
|
France Telecom SA, 6.750%, due 03/14/08 |
|
|
1,275,000 |
|
|
|
1,750,565 |
|
|
7.250%, due 01/28/13 |
|
|
1,405,000 |
|
|
|
2,094,164 |
|
|
Veolia Environnement, 4.875%, due 05/28/13 |
|
|
2,830,000 |
|
|
|
3,792,310 |
|
|
|
|
|
42,604,757 |
|
|
Germany6.55% |
|
Iesy Hessen GmbH & Co KG and Ish NRW GmbH, 6.880%, due 04/15/13(1) |
|
EUR |
270,000 |
|
|
|
370,456 |
|
|
Kreditanstalt fuer Wiederaufbau, 3.500%, due 07/15/09 |
|
|
15,020,000 |
|
|
|
19,914,863 |
|
|
5.550%, due 06/07/21 |
|
GBP |
3,000,000 |
|
|
|
5,942,038 |
|
|
Landwirtschaftliche Rentenbank, 0.650%, due 09/30/08 |
|
JPY |
1,240,000,000 |
|
|
|
10,037,731 |
|
|
|
|
|
36,265,088 |
|
|
Ireland2.08% |
|
Depfa ACS Bank, 0.750%, due 09/22/08 |
|
JPY |
1,240,000,000 |
|
|
|
10,050,944 |
|
|
Diamond Finance PLC, 6.000%, due 05/18/15(1),(2) |
|
BRL |
1,560,000 |
|
|
|
1,329,154 |
|
|
Smurfit Kappa Funding PLC, 7.750%, due 04/01/15 |
|
EUR |
110,000 |
|
|
|
155,579 |
|
|
10.125%, due 10/01/12 |
|
|
4,000 |
|
|
|
5,759 |
|
|
|
|
|
11,541,436 |
|
|
Italy0.60% |
|
Sanpaolo IMI SpA, 6.375%, due 04/06/10 |
|
EUR |
2,350,000 |
|
|
|
3,307,845 |
|
|
Kazakhstan0.07% |
|
CenterCredit International BV, 8.250%, due 09/30/11(4) |
|
KZT |
47,000,000 |
|
|
|
375,369 |
|
|
Luxembourg1.20% |
|
Erste Europaeische Pfandbrief und Kommunalkreditbank AG, 5.000%, due 02/16/16 |
|
$ |
2,400,000 |
|
|
|
2,291,527 |
|
|
Hellas Telecommunications Luxembourg III, 8.500%, due 10/15/13 |
|
EUR |
300,000 |
|
|
|
438,518 |
|
|
Lighthouse International Co. SA, 8.000%, due 04/30/14 |
|
|
800,000 |
|
|
|
1,145,019 |
|
|
|
|
Face amount |
|
Value |
|
Luxembourg(concluded) |
|
SGL Carbon Luxembourg SA, 8.500%, due 02/01/12 |
|
EUR |
100,000 |
|
|
$ |
142,924 |
|
|
Telecom Italia Finance SA, 6.575%, due 07/30/09 |
|
|
1,400,000 |
|
|
|
1,955,881 |
|
|
7.250%, due 04/20/11 |
|
|
450,000 |
|
|
|
652,976 |
|
|
|
|
|
6,626,845 |
|
|
Netherlands1.78% |
|
Koninklijke KPN NV, 8.000%, due 10/01/10 |
|
$ |
2,500,000 |
|
|
|
2,675,688 |
|
|
Linde Finance BV, 7.375%, due 07/14/66(1) |
|
EUR |
1,500,000 |
|
|
|
2,131,582 |
|
|
RWE Finance BV, 4.625%, due 08/17/10 |
|
GBP |
2,100,000 |
|
|
|
4,019,873 |
|
|
5.375%, due 04/18/08 |
|
EUR |
770,000 |
|
|
|
1,048,731 |
|
|
|
|
|
9,875,874 |
|
|
Philippines0.26% |
|
National Power Corp., 8.400%, due 12/15/16 |
|
$ |
1,300,000 |
|
|
|
1,448,330 |
|
|
Sweden0.98% |
|
Svenska Handelsbanken AB, 6.125%, due 03/04/09(1),(7) |
|
GBP |
2,730,000 |
|
|
|
5,458,540 |
|
|
United Kingdom4.81% |
|
ABB International Finance Ltd., 4.625%, due 06/06/13 |
|
EUR |
1,680,000 |
|
|
|
2,217,792 |
|
|
Alliance & Leicester PLC, 4.250%, due 12/30/08 |
|
GBP |
3,150,000 |
|
|
|
6,144,631 |
|
|
Anglo Irish Capital UK LP, 5.219%, due 09/29/16(1),(7) |
|
EUR |
1,600,000 |
|
|
|
2,048,339 |
|
|
Bank of Scotland, 6.375%, due 08/16/19 |
|
GBP |
3,145,000 |
|
|
|
6,399,035 |
|
|
Barclays Bank PLC, 4.750%, due 03/15/20(1),(7) |
|
EUR |
3,950,000 |
|
|
|
4,493,420 |
|
|
Getin Finance PLC, 6.036%, due 05/13/09(1) |
|
|
530,000 |
|
|
|
722,242 |
|
|
6.242%, due 04/25/08(1) |
|
|
250,000 |
|
|
|
340,850 |
|
|
National Grid Electricity Transmission PLC, 4.125%, due 09/18/08 |
|
|
800,000 |
|
|
|
1,076,536 |
|
|
National Grid PLC, 5.250%, due 06/02/11 |
|
GBP |
590,000 |
|
|
|
1,134,279 |
|
|
Ono Finance PLC 12.561%, due 05/15/14(1) |
|
EUR |
450,000 |
|
|
|
624,279 |
|
|
Reed Elsevier Investments PLC, 5.625%, due 10/20/16 |
|
GBP |
750,000 |
|
|
|
1,414,626 |
|
|
|
|
|
26,616,029 |
|
|
Total international corporate bonds (cost $147,200,185) |
|
|
151,494,570 |
|
|
International asset-backed security0.02% |
|
United Kingdom0.02% |
|
Whinstone Capital Management Ltd., Series 1X, Class B2, 4.892%, due 10/25/44(1),(2) (cost $94,184) |
|
EUR |
77,835 |
|
|
|
105,873 |
|
|
112
UBS Absolute Return Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
International bonds(continued) |
|
International collateralized debt obligations5.66% |
|
Cayman Islands3.20% |
|
Abacus Ltd., Series 05-CB1A, Class F, 9.820%, due 05/28/41(1),(2),(3),(4) |
|
$ |
250,000 |
|
|
$ |
200,000 |
|
|
ACA ABS Ltd., Series 06-2, due 01/10/47(2),(3),(6) |
|
|
600,000 |
|
|
|
360,000 |
|
|
Acacia CDO Ltd., Series 10A, Class SUB, due 09/07/46(2),(3),(4),(6) |
|
|
280,000 |
|
|
|
98,000 |
|
|
Aladdin CDO I Ltd, Series 06-2A, Class 10D, 12.860%, due 10/31/16(1),(2),(3) |
|
|
250,000 |
|
|
|
252,750 |
|
|
Atrium CDO Corp., Series 5X, Class SUB, due 07/20/20(3),(6) |
|
|
180,000 |
|
|
|
178,200 |
|
|
Avenue CLO Fund Ltd., Series 06-4I, Class SUB, due 11/07/18(3),(6) |
|
|
310,000 |
|
|
|
293,291 |
|
|
Series 07-5I, Class SUB, due 04/25/19(3),(6) |
|
|
330,000 |
|
|
|
313,929 |
|
|
Series 06-3A, Class B2L, 9.358%, due 07/20/18(1),(2),(3) |
|
|
220,000 |
|
|
|
215,248 |
|
|
Avenue CLO III Fund Ltd., due 07/20/18(2),(3),(6) |
|
|
150,000 |
|
|
|
138,000 |
|
|
Babson CLO Ltd., Series 07-1A, Class INC, due 01/18/21(2),(3),(6) |
|
|
250,000 |
|
|
|
250,000 |
|
|
Black Diamond CLO Ltd., Series 05-2X, Class IN, due 01/07/18(3),(6) |
|
|
110,000 |
|
|
|
108,900 |
|
|
Series 06-1A, Class INC., due 04/29/19(3),(6) |
|
|
400,000 |
|
|
|
400,000 |
|
|
Series 06-1A, Class D, 6.741%, due 04/29/19(1),(2),(3) |
|
|
350,000 |
|
|
|
339,395 |
|
|
Series 05-2A, Class D, 7.150%, due 01/07/18(1),(2),(3) |
|
|
300,000 |
|
|
|
297,900 |
|
|
Series 06-1A, Class E, 8.691%, due 04/29/19(1),(3) |
|
|
560,000 |
|
|
|
528,136 |
|
|
Series 05-2A, Class E1, 9.850%, due 01/07/18(1),(2),(3) |
|
|
250,000 |
|
|
|
252,000 |
|
|
Series 05-1A, Class E, 10.350%, due 06/20/17(1),(3) |
|
|
350,000 |
|
|
|
355,530 |
|
|
Blackrock Senior Income Series Corp., Series 07-5A, Class SUB, due 08/13/19(2),(3),(6) |
|
|
300,000 |
|
|
|
300,000 |
|
|
Callidus Debt Partners CDO Fund I Ltd., Series 5A, Class INC, due 11/20/20(2),(3),(6) |
|
|
200,000 |
|
|
|
200,000 |
|
|
CIFC Funding, Series 06-II, due 03/01/21(2),(3),(6) |
|
|
250,000 |
|
|
|
250,000 |
|
|
Cratos CLO Ltd., Series 07-1A, Class D, 7.755%, due 05/19/21(1),(2),(3) |
|
|
250,000 |
|
|
|
235,000 |
|
|
|
|
Face amount |
|
Value |
|
Cayman Islands(continued) |
|
Credit-Based Asset Servicing and Securitization CBO Ltd., Series 15A, Class D, 8.260%, due 02/16/41(1),(2),(3),(4) |
|
$ |
240,256 |
|
|
$ |
229,421 |
|
|
Series 18A, Class D, 10.110%, due 03/13/47(1),(2),(3),(4) |
|
|
796,405 |
|
|
|
796,404 |
|
|
De Meer Middle Market CLO Ltd., Series 06-1A, Class E, 9.358%, due 10/20/18(1),(2),(3) |
|
|
226,226 |
|
|
|
223,566 |
|
|
Denali Capital CLO VII Ltd., Series 07-1A, Class B2L, 9.620%, due 01/22/22(1),(2),(3) |
|
|
290,000 |
|
|
|
290,000 |
|
|
Emporia Preferred Funding, Series 07-3A, Class D, 6.805%, due 04/23/21(1),(2),(3) |
|
|
250,000 |
|
|
|
228,853 |
|
|
Series 07-3A, Class E, 9.005%, due 04/23/21(1),(2),(3) |
|
|
250,000 |
|
|
|
227,465 |
|
|
FM Leveraged Capital Fund II, due 11/20/20(2),(3),(6) |
|
|
370,000 |
|
|
|
333,000 |
|
|
FM Leveraged Capital Fund, Series 06-2A, Class E, 9.110%, due 11/15/20(1),(2),(3) |
|
|
400,000 |
|
|
|
376,692 |
|
|
Galena CDO Ltd., Series II-AIRL, Class A1U, 6.025%, due 04/07/17(1),(2),(3),(4) |
|
|
1,000,000 |
|
|
|
999,800 |
|
|
Gresham Street CDO Funding, Series 03-1X, Class D, 8.606%, due 11/07/33(1),(3) |
|
|
100,000 |
|
|
|
98,829 |
|
|
GSC Partners CDO Fund Ltd., Series 07-8A, Class SUB, due 04/17/21(2),(3),(6) |
|
|
240,000 |
|
|
|
240,000 |
|
|
GSC Partners CDO Fund V, Ltd., due 11/20/16(2),(3),(6) |
|
|
520,000 |
|
|
|
452,400 |
|
|
Gulf Stream - Sextant CLO Ltd., Series 07-1A, Class SUB, due 06/17/21(2),(3),(6) |
|
|
520,000 |
|
|
|
520,000 |
|
|
Series 06-1A, Class D, 6.960%, due 08/21/20(1),(2),(3) |
|
|
170,000 |
|
|
|
163,030 |
|
|
Harbourview CLO VI Ltd., Series 6A, Class D, 9.060%, due 12/27/19(1),(2),(3),(4) |
|
|
370,000 |
|
|
|
333,000 |
|
|
Herald Ltd.29, 8.860%, due 09/16/45(1),(3) |
|
|
300,000 |
|
|
|
293,160 |
|
|
ING Investment Management CLO II Ltd., due 08/01/20(2),(3),(6) |
|
|
300,000 |
|
|
|
289,500 |
|
|
Ischus CDO Ltd., Series 06-S1, Class B1L, 9.355%, due 04/12/41(1),(2),(3) |
|
|
738,717 |
|
|
|
664,845 |
|
|
Kingsland Ltd., Series 07-5A, Class SUB, due 07/14/21(2),(3),(6) |
|
|
220,000 |
|
|
|
215,600 |
|
|
Series 07-5A, Class E, 9.610%, due 07/14/21(1),(2),(3) |
|
|
250,000 |
|
|
|
245,625 |
|
|
113
UBS Absolute Return Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
International bonds(continued) |
|
International collateralized debt obligations(continued) |
|
Cayman Islands(concluded) |
|
Lenox CDO Ltd., Series 05-1A, Class E1, 8.860%, due 11/14/43(1),(2),(3),(4) |
|
$ |
247,124 |
|
|
$ |
217,642 |
|
|
Lightpoint CLO Ltd., Series 06-4A, Class C, 7.156%, due 04/15/18(1),(2),(3) |
|
|
550,000 |
|
|
|
533,093 |
|
|
Logan CDO Ltd., Series III-A, Class E, due 07/05/57(2),(3),(4),(6) |
|
|
390,000 |
|
|
|
390,000 |
|
|
Series II-A, Class E, 12.855%, due 05/04/51(1),(2),(3) |
|
|
400,000 |
|
|
|
381,760 |
|
|
Northwoods Capital Ltd., Series 06-6A, Class C, 7.106%, due 03/16/21(1),(2),(3) |
|
|
400,000 |
|
|
|
385,000 |
|
|
Octans CDO Ltd., Series 06-2A, Class D, 8.660%, due 11/12/51(1),(2),(3) |
|
|
297,150 |
|
|
|
209,232 |
|
|
Race Point CLO, Series 06-3, Class E, 9.606%, due 04/15/20(1),(2),(3) |
|
|
500,000 |
|
|
|
475,150 |
|
|
Rockwall CDO Ltd., Series 06-1A, Class B1L, 7.606%, due 08/01/21(1),(2),(3) |
|
|
300,000 |
|
|
|
300,000 |
|
|
Rockwall Investors Corp., due 08/01/21(2),(3),(6) |
|
|
200,000 |
|
|
|
190,000 |
|
|
Saturn CLO Ltd., Series 07-1A, Class D, 9.374%, due 05/13/22(1),(2),(3) |
|
|
250,000 |
|
|
|
245,250 |
|
|
Stanfield Veyron CLO Ltd., Series 06-1A, Class D, 6.956%, due 07/15/18(1),(2),(3) |
|
|
200,000 |
|
|
|
192,440 |
|
|
Trimaran CLO Ltd., Series 06-2A, Class C1, due 11/01/18(3),(6) |
|
|
280,000 |
|
|
|
274,400 |
|
|
Series 07-1A, Class C1, due 06/15/21(3),(6) |
|
|
530,000 |
|
|
|
530,000 |
|
|
Series 06-2A, Class B2L, 9.106%, due 11/01/18(1),(2),(3) |
|
|
410,000 |
|
|
|
399,422 |
|
|
Series 07-1A, Class B2L, 8.741%, due 06/15/21(1),(2),(3) |
|
|
200,000 |
|
|
|
189,640 |
|
|
|
|
|
17,700,498 |
|
|
Ireland1.00% |
|
Adagio CLO BV, Series III-A, Class SUB, due 09/15/22(2),(3),(6) |
|
EUR |
390,000 |
|
|
|
519,928 |
|
|
Adagio CLO, Series III-A, Class E, 7.751%, due 09/15/22(1),(2),(3) |
|
|
270,000 |
|
|
|
365,249 |
|
|
Avoca CLO I BV, Series VI-A, Class M, due 01/16/23(2),(3),(6) |
|
|
250,000 |
|
|
|
338,362 |
|
|
|
|
Face amount |
|
Value |
|
Ireland(concluded) |
|
Cairn Mezzanine ABS CDO PLC, Series 06-1A, Class SUB, due 12/09/46(2),(3),(4),(6) |
|
$ |
580,000 |
|
|
$ |
359,600 |
|
|
Series 06-1A, Class 7, 11.360%, due 12/09/46(1),(2),(3),(4) |
|
|
244,375 |
|
|
|
167,397 |
|
|
Eirles One Ltd., Series 29, 7.479%, due 10/07/15(1),(3),(4) |
|
EUR |
1,200,000 |
|
|
|
1,542,933 |
|
|
Eurocredit CDO BV, Series VI-X, Class SUB, due 01/16/22(3),(6) |
|
|
400,000 |
|
|
|
541,380 |
|
|
MARC CDO PLC, Series 1A, Class E, 12.360%, due 03/13/53(1),(2),(3),(4) |
|
$ |
350,000 |
|
|
|
273,840 |
|
|
Menton CDO PLC, Series II-A, Class E, 12.355%, due 10/24/53(1),(2),(3),(4) |
|
|
250,000 |
|
|
|
236,950 |
|
|
Series III-A, Class E, 12.510%, due 11/28/56(1),(2),(3),(4) |
|
|
550,000 |
|
|
|
395,010 |
|
|
PSION Synthetic CDO PLC, Series I-A, Class E, 10.610%, due 12/21/15(1),(2),(3) |
|
|
330,000 |
|
|
|
318,450 |
|
|
Valleriite CDO, Series 07-A1, Class D1EU, 7.525%, due 12/20/17(1),(2),(3),(4) |
|
EUR |
350,000 |
|
|
|
473,707 |
|
|
|
|
|
5,532,806 |
|
|
Luxembourg0.30% |
|
Ashwell CDO SA, due 12/22/66(2),(3),(6) |
|
EUR |
200,000 |
|
|
|
232,793 |
|
|
due 12/22/77(2),(3),(6) |
|
GBP |
220,000 |
|
|
|
417,484 |
|
|
GSC European CDO SA, Series II-A, Class SUB, due 07/15/20(2),(3),(6) |
|
EUR |
320,000 |
|
|
|
411,449 |
|
|
GSC European CDO, Series 07-4A, Class E, 7.444%, due 04/25/23(1),(2),(3) |
|
|
470,000 |
|
|
|
632,941 |
|
|
|
|
|
1,694,667 |
|
|
Netherlands1.16% |
|
Ares Euro CLO BV, Series 07-1A, Class G1, due 05/15/24(2),(3),(6) |
|
EUR |
250,000 |
|
|
|
334,979 |
|
|
Series 07-1A, Class E, 7.629%, due 05/15/24(1),(2),(3) |
|
|
470,000 |
|
|
|
627,152 |
|
|
Cadogan Square CLO, Series 3A, Class E, 7.178%, due 01/17/23(1),(3) |
|
|
280,000 |
|
|
|
371,008 |
|
|
Series 2A, Class E, 7.930%, due 08/12/22(1),(3),(4) |
|
|
300,000 |
|
|
|
400,635 |
|
|
Eurocredit CDO BV, Series III-X, Class D1, 7.479%, due 10/20/16(1),(3),(4) |
|
|
550,000 |
|
|
|
759,285 |
|
|
Grosvenor Place CLO BV, Series II-A, Class SUB, 7.500%, due 03/28/23(2),(3) |
|
|
530,000 |
|
|
|
717,329 |
|
|
114
UBS Absolute Return Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(concluded) |
|
International bonds(concluded) |
|
International collateralized debt obligations(concluded) |
|
Netherlands(concluded) |
|
Harbourmaster CLO Ltd., Series 7A, Class C, due 09/22/22(2),(3),(6) |
|
EUR |
300,000 |
|
|
$ |
406,035 |
|
|
Series PR2A, Class C, due 10/15/22(2),(3),(6) |
|
|
150,000 |
|
|
|
197,414 |
|
|
Series PR2A, Class B2, 8.068%, due 10/15/22(1),(2),(3) |
|
|
300,000 |
|
|
|
414,643 |
|
|
Highlander Euro CDO, Series 06-2CA, Class F1, due 12/14/22(2),(3),(4),(6) |
|
|
450,000 |
|
|
|
596,871 |
|
|
Series 06-2CA, Class E, 7.760%, due 12/14/22(1),(2),(3),(4) |
|
|
250,000 |
|
|
|
325,742 |
|
|
Laurelin BV, Series 2A, Class SUB, due 07/15/23(2),(3),(6) |
|
|
250,000 |
|
|
|
338,363 |
|
|
Queen Street CLO, Series 06-1A, Class F, due 04/15/23(2),(3) |
|
|
320,000 |
|
|
|
463,031 |
|
|
Series 07-1A, Class F, due 09/25/24(2),(3),(4) |
|
|
350,000 |
|
|
|
464,233 |
|
|
|
|
|
6,416,720 |
|
|
Total international collateralized debt obligations (cost $31,846,433) |
|
|
31,344,691 |
|
|
International commercial mortgage-backed securities0.41% |
|
Ireland0.04% |
|
Fleet Street Finance One PLC, Series 1, Class A, 5.969%, due 07/20/14(1) |
|
GBP |
110,034 |
|
|
|
220,986 |
|
|
Luxembourg0.37% |
|
EMC PLC, Series 4, Class A, 4.215%, due 04/30/13(1) |
|
EUR |
1,493,707 |
|
|
|
2,021,779 |
|
|
Total international commercial mortgage-backed securities (cost $2,228,473) |
|
|
2,242,765 |
|
|
International mortgage & agency debt securities0.35% |
|
Netherlands0.12% |
|
Delphinus BV, Series 00-1, Class B, 6.250%, due 06/26/32(1) |
|
EUR |
500,000 |
|
|
|
699,024 |
|
|
United Kingdom0.23% |
|
Arkle Master Issuer PLC, Series 06-2A, Class 2C, 5.740%, due 02/17/52(1),(2) |
|
$ |
1,000,000 |
|
|
|
1,000,000 |
|
|
Granite Master Issuer PLC, Series 05-1, Class A5, 4.238%, due 12/20/54(1) |
|
EUR |
190,000 |
|
|
|
257,190 |
|
|
|
|
|
1,257,190 |
|
|
Total international mortgage & agency debt securities (cost $1,899,329) |
|
|
1,956,214 |
|
|
|
|
Face amount |
|
Value |
|
Foreign government bonds6.24% |
|
Argentina1.65% |
|
Republic of Argentina, 5.475%, due 08/03/12(1) |
|
$ |
8,400,000 |
|
|
$ |
6,125,700 |
|
|
5.830%, due 12/31/33 DISC(1) |
|
ARS |
4,990,000 |
|
|
|
2,225,972 |
|
|
Republic of Argentina CPI Index Linked Bond, 2.000%, due 03/15/14(1) |
|
|
1,820,000 |
|
|
|
771,087 |
|
|
|
|
|
9,122,759 |
|
|
Canada0.35% |
|
Quebec Province, 6.125%, due 01/22/11 |
|
$ |
1,880,000 |
|
|
|
1,925,872 |
|
|
Germany1.10% |
|
Deutsche Bundesrepublik, 4.000%, due 01/04/37 |
|
EUR |
5,045,000 |
|
|
|
6,071,732 |
|
|
Japan0.89% |
|
Japan Bank for International Cooperation, 5.250%, due 03/23/16 |
|
$ |
5,100,000 |
|
|
|
4,946,873 |
|
|
Philippines0.18% |
|
Republic of Philippines, 8.375%, due 02/15/11 |
|
$ |
950,000 |
|
|
|
1,015,265 |
|
|
Russia0.88% |
|
Russian Federation, 7.500%, due 03/31/30(5) |
|
$ |
4,427,750 |
|
|
|
4,859,456 |
|
|
Turkey1.00% |
|
Republic of Turkey Credit-Linked Notes, 6.986%, due 05/29/08(1) |
|
$ |
4,300,000 |
|
|
|
4,343,043 |
|
|
Republic of Turkey, 7.000%, due 09/26/16 |
|
|
1,172,000 |
|
|
|
1,185,185 |
|
|
|
|
|
5,528,228 |
|
|
Venezuela0.19% |
|
Republic of Venezuela, 5.750%, due 02/26/16 |
|
$ |
1,290,000 |
|
|
|
1,086,825 |
|
|
Total foreign government bonds (cost $34,668,514) |
|
|
34,557,010 |
|
|
Sovereign/supranational bonds3.05% |
|
European Investment Bank, 6.250%, due 12/07/08 |
|
GBP |
7,900,000 |
|
|
|
15,939,740 |
|
|
6.250%, due 04/15/14 |
|
|
470,000 |
|
|
|
956,446 |
|
|
Total sovereign/supranational bonds (cost $16,413,590) |
|
|
16,896,186 |
|
|
Total international bonds (cost $234,350,708) |
|
|
238,597,309 |
|
|
Total bonds (cost $478,773,087) |
|
|
475,932,133 |
|
|
115
UBS Absolute Return Bond FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Investment company5.33% |
|
UBS U.S. Securitized Mortgage Relationship Fund(8) (cost $27,576,862) |
|
|
2,311,377 |
|
|
$ |
29,491,317 |
|
|
Short-term investments2.14% |
|
Investment company1.89% |
|
UBS U.S. Cash Management Prime Relationship Fund,(8),(9) 5.36% (cost $10,485,682) |
|
|
10,485,682 |
|
|
|
10,485,682 |
|
|
|
|
Face amount |
|
Value |
|
US government obligation0.25% |
|
US Treasury Bills, 4.81%, due on 12/20/07(10),(11) (cost $1,386,158) |
|
$ |
1,418,000 |
|
|
$ |
1,386,208 |
|
|
Total short-term investments (cost $11,871,840) |
|
|
11,871,890 |
|
|
Total investments93.41% (cost $518,221,789) |
|
|
|
|
517,295,340 |
|
|
Cash and other assets, less liabilities6.59% |
|
|
|
|
36,521,667 |
|
|
Net assets100.00% |
|
$ |
553,817,007 |
|
|
Notes to portfolio of investments
Aggregate cost for federal income tax purposes was $520,307,898; and net unrealized depreciation consisted of:
Gross unrealized appreciation |
|
$ |
9,088,860 |
|
|
Gross unrealized depreciation |
|
|
(12,101,418 |
) |
|
Net unrealized depreciation |
|
$ |
(3,012,558 |
) |
|
(1) Floating rate securityThe interest rate shown is the current rate as of June 30, 2007.
(2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid, unless otherwise noted, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2007, the value of these securities amounted to $63,092,940 or 11.39% of net assets.
(3) Security is illiquid. At June 30, 2007, the value of these securities amounted to $52,072,504 or 9.40% of net assets.
(4) Security is being fair valued by a valuation committee under the direction of the Board of Trustees. At June 30, 2007, the value of these securities amounted to $15,569,288 or 2.81% of net assets.
(5) Step bondCoupon rate increases in increments to maturity. Rate disclosed is as of June 30, 2007. Maturity date disclosed is the ultimate maturity date.
(6) This security is the equity tranche of a collateralized debt obligation. The Fund receives periodic payments, which may vary, from the issuer of this security.
(7) Perpetual bond security. The maturity date reflects the next call date.
(8) Investment in affiliated mutual fund.
(9) The rate shown reflects the yield at June 30, 2007.
(10) The rate shown is the effective yield at the date of purchase.
(11) This security was pledged to cover margin requirements for futures contracts.
ABS Asset-backed securities
CBO Collateralized bond obligations
CDO Collateralized debt obligations
CLO Collateralized loan obligations
CPI Consumer price index
DISC Discount bond
GMAC General Motors Acceptance Corp.
GS Goldman Sachs
GSAMP Goldman Sachs Mortgage Securities Corp.
MLCC Merrill Lynch Credit Corp.
IO Interest only securityThis security entitles the holder to receive interest payments from an underlying pool of mortgages. The risk associated with this security is related to the speed of the principal paydowns. High prepayments would result in a smaller amount of interest being received and cause the yield to decrease. Low prepayments would result in a greater amount of interest being received and cause the yield to increase.
Currency type abbreviations:
ARS Argentina Peso
BRL Brazilian Real
EUR Euro
GBP Great Britain Pound
JPY Japanese Yen
KZT Kazakhstan Tenge
116
UBS Absolute Return Bond FundPortfolio of investments
June 30, 2007
Restricted securities
Securities |
|
Acquisition dates |
|
Acquisition cost |
|
Acquisition cost as a percentage of net assets |
|
06/30/07 Market value |
|
06/30/07 Market value as a percentage of net assets |
|
Abacus Ltd., Series 05-CB1A, Class F, 9.820%, due 05/28/41 |
|
04/24/06 |
|
$ |
252,656 |
|
|
|
0.05 |
% |
|
$ |
200,000 |
|
|
|
0.04 |
% |
|
ACA ABS, Series 06-2, due 01/10/47 |
|
11/16/06 |
|
|
480,000 |
|
|
|
0.09 |
|
|
|
360,000 |
|
|
|
0.07 |
|
|
Acacia CDO Ltd., Series 10A, Class SUB, due 09/07/46 |
|
07/17/06 |
|
|
127,708 |
|
|
|
0.02 |
|
|
|
98,000 |
|
|
|
0.02 |
|
|
ACE Securities Corp., Series 06-SL1, Class B1, 8.320%, due 09/25/35 |
|
01/20/06 |
|
|
678,151 |
|
|
|
0.12 |
|
|
|
80,000 |
|
|
|
0.01 |
|
|
Adagio CLO BV, Series III-A, Class SUB, due 09/15/22 |
|
07/21/06 |
|
|
495,164 |
|
|
|
0.09 |
|
|
|
519,928 |
|
|
|
0.09 |
|
|
Adagio CLO, Series III-A, Class E, 7.751%, due 09/15/22 |
|
07/21/06 |
|
|
340,234 |
|
|
|
0.06 |
|
|
|
365,249 |
|
|
|
0.07 |
|
|
Ajax One Ltd., Series 2A, Class C, 7.820%, due 09/08/32 |
|
11/08/05 |
|
|
487,550 |
|
|
|
0.09 |
|
|
|
465,000 |
|
|
|
0.09 |
|
|
Aladdin CDO I Ltd, Series 06-2A, Class 10D, 12.860%, due 10/31/16 |
|
06/23/06 |
|
|
250,000 |
|
|
|
0.05 |
|
|
|
252,750 |
|
|
|
0.05 |
|
|
Ares Euro CLO BV, Series 07-1A, Class G1, due 05/15/24 |
|
03/16/07 |
|
|
332,800 |
|
|
|
0.06 |
|
|
|
334,979 |
|
|
|
0.06 |
|
|
Series 07-1A, Class E, 7.629%, due 05/15/24 |
|
03/16/07 |
|
|
625,664 |
|
|
|
0.11 |
|
|
|
627,152 |
|
|
|
0.11 |
|
|
Ares VR CLO Ltd., Series 06-1A, Class D, 7.260%, due 02/24/18 |
|
02/16/06 |
|
|
885,550 |
|
|
|
0.16 |
|
|
|
851,730 |
|
|
|
0.15 |
|
|
Ares X CLO Ltd., Series 05-1A, Class D2, 7.360%, due 09/18/17 |
|
09/20/05 |
|
|
498,125 |
|
|
|
0.09 |
|
|
|
485,450 |
|
|
|
0.09 |
|
|
Ashwell CDO SA, due 12/22/66 |
|
10/16/06 |
|
|
205,859 |
|
|
|
0.04 |
|
|
|
232,793 |
|
|
|
0.04 |
|
|
due 12/22/77 |
|
01/29/07 |
|
|
397,209 |
|
|
|
0.07 |
|
|
|
417,484 |
|
|
|
0.08 |
|
|
Avenue CLO Fund Ltd., Series 06-3A, Class B2L, 9.358%, due 07/20/18 |
|
04/24/06 |
|
|
215,160 |
|
|
|
0.04 |
|
|
|
215,248 |
|
|
|
0.04 |
|
|
Avenue CLO III Fund Ltd., due 07/20/18 |
|
04/24/06 |
|
|
146,625 |
|
|
|
0.03 |
|
|
|
138,000 |
|
|
|
0.03 |
|
|
Avery Street CLO, Series 06-1A, Class E, 10.350%, due 04/05/18 |
|
01/31/06 |
|
|
688,100 |
|
|
|
0.12 |
|
|
|
703,500 |
|
|
|
0.13 |
|
|
Avoca CLO I BV, Series VI-A, Class M, due 01/16/23 |
|
10/19/06 |
|
|
315,688 |
|
|
|
0.06 |
|
|
|
338,362 |
|
|
|
0.06 |
|
|
Babson CLO Ltd., Series 07-1A, Class INC, due 01/18/21 |
|
02/02/07 |
|
|
237,500 |
|
|
|
0.04 |
|
|
|
250,000 |
|
|
|
0.05 |
|
|
Black Diamond CLO Ltd., Series 06-1A, Class D, 6.741%, due 04/29/19 |
|
12/22/06 |
|
|
350,000 |
|
|
|
0.06 |
|
|
|
339,395 |
|
|
|
0.06 |
|
|
Series 05-2A, Class D, 7.150%, due 01/07/18 |
|
09/22/05 |
|
|
300,000 |
|
|
|
0.05 |
|
|
|
297,900 |
|
|
|
0.05 |
|
|
Series 05-2A, Class E1, 9.850%, due 01/07/18 |
|
09/22/05 |
|
|
250,000 |
|
|
|
0.05 |
|
|
|
252,000 |
|
|
|
0.05 |
|
|
Blackrock Senior Income Series Corp., Series 07-5A, Class SUB, due 08/13/19 |
|
06/22/07 |
|
|
300,000 |
|
|
|
0.05 |
|
|
|
300,000 |
|
|
|
0.05 |
|
|
Brentwood Investors CDO Corp., Series 07-01, due 05/01/16 |
|
12/07/06 |
|
|
242,500 |
|
|
|
0.04 |
|
|
|
250,000 |
|
|
|
0.05 |
|
|
Callidus Debt Partners CDO Fund I Ltd., Series 5A, Class INC, due 11/20/20 |
|
11/01/06 |
|
|
190,000 |
|
|
|
0.03 |
|
|
|
200,000 |
|
|
|
0.04 |
|
|
Cairn Mezzanine ABS CDO PLC, Series 06-1A, Class SUB, due 12/09/46 |
|
08/11/06 |
|
|
493,000 |
|
|
|
0.09 |
|
|
|
359,600 |
|
|
|
0.07 |
|
|
Series 06-1A, Class 7, 11.360%, due 12/09/46 |
|
08/11/06 |
|
|
243,153 |
|
|
|
0.04 |
|
|
|
167,397 |
|
|
|
0.03 |
|
|
CIFC Funding, Series 06-II, due 03/01/21 |
|
11/22/06 |
|
|
237,500 |
|
|
|
0.04 |
|
|
|
250,000 |
|
|
|
0.05 |
|
|
Colts, Series 07-1, due 03/20/21 |
|
02/09/07 |
|
|
285,000 |
|
|
|
0.05 |
|
|
|
294,000 |
|
|
|
0.05 |
|
|
117
UBS Absolute Return Bond FundPortfolio of investments
June 30, 2007
Restricted securities(continued)
Securities |
|
Acquisition dates |
|
Acquisition cost |
|
Acquisition cost as a percentage of net assets |
|
06/30/07 Market value |
|
06/30/07 Market value as a percentage of net assets |
|
Commercial Industrial Finance Corp., Series 06-2A, Class B2L, 9.360%, due 03/01/21 |
|
11/22/06 |
|
$ |
278,600 |
|
|
|
0.05 |
% |
|
$ |
270,648 |
|
|
|
0.05 |
% |
|
Cratos CLO Ltd., Series 07-1A, Class D, 7.755%, due 05/19/21 |
|
04/30/07 |
|
|
250,000 |
|
|
|
0.05 |
|
|
|
235,000 |
|
|
|
0.04 |
|
|
Credit-Based Asset Servicing and Securitization CBO Ltd., Series 15A, Class D, 8.260%, due 02/16/41 |
|
01/25/06 |
|
|
240,256 |
|
|
|
0.04 |
|
|
|
229,421 |
|
|
|
0.04 |
|
|
Series 18A, Class D, 10.110%, due 03/13/47 |
|
03/06/07 |
|
|
796,404 |
|
|
|
0.14 |
|
|
|
796,404 |
|
|
|
0.14 |
|
|
De Meer Middle Market CLO Ltd., Series 06-1A, Class E, 9.358%, due 10/20/18 |
|
08/03/06 |
|
|
226,226 |
|
|
|
0.04 |
|
|
|
223,566 |
|
|
|
0.04 |
|
|
Denali Capital CLO VII Ltd., Series 07-1A, Class B2L, 9.620%, due 01/22/22 |
|
04/27/07 |
|
|
285,865 |
|
|
|
0.05 |
|
|
|
290,000 |
|
|
|
0.05 |
|
|
Duke Funding Ltd., Series 06-11A, Class B1E, 6.286%, due 08/08/46 |
|
09/19/06 |
|
|
1,068,529 |
|
|
|
0.19 |
|
|
|
1,088,090 |
|
|
|
0.20 |
|
|
Emporia Preferred Funding, Series 07-3A, Class D, 6.805%, due 04/23/21 |
|
02/27/07 |
|
|
250,000 |
|
|
|
0.05 |
|
|
|
228,853 |
|
|
|
0.04 |
|
|
Series 07-3A, Class E, 9.005%, due 04/23/21 |
|
02/27/07 |
|
|
250,000 |
|
|
|
0.05 |
|
|
|
227,465 |
|
|
|
0.04 |
|
|
First Franklin Mortgage Loan Asset- Backed Certificates, Series 06-FFA, Class B2, 6.000%, due 09/25/26 |
|
11/03/06 |
|
|
700,891 |
|
|
|
0.13 |
|
|
|
151,826 |
|
|
|
0.03 |
|
|
FM Leveraged Capital Fund II, due 11/20/20 |
|
10/31/06 |
|
|
370,000 |
|
|
|
0.07 |
|
|
|
333,000 |
|
|
|
0.07 |
|
|
FM Leveraged Capital Fund, Series 06-2A, Class E, 9.110%, due 11/15/20 |
|
10/31/06 |
|
|
400,000 |
|
|
|
0.07 |
|
|
|
376,692 |
|
|
|
0.07 |
|
|
Galena CDO Ltd., Series II-AIRL, Class A1U, 6.025%, due 04/07/17 |
|
03/08/07 |
|
|
1,000,000 |
|
|
|
0.18 |
|
|
|
999,800 |
|
|
|
0.18 |
|
|
GoldenTree Capital Opportunities LP, Series 06-1A, Class D1, 7.460%, due 02/22/20 |
|
01/27/06 |
|
|
600,000 |
|
|
|
0.11 |
|
|
|
600,000 |
|
|
|
0.11 |
|
|
GoldenTree Loan Opportunities III Ltd., Series 07-3A, Class SUB, due 05/01/22 |
|
02/27/07 |
|
|
430,000 |
|
|
|
0.08 |
|
|
|
442,083 |
|
|
|
0.08 |
|
|
Greywolf CLO Ltd., Series 07-1A, Class SUB, due 02/18/21 |
|
12/08/06 |
|
|
247,500 |
|
|
|
0.04 |
|
|
|
245,000 |
|
|
|
0.04 |
|
|
Grosvenor Place CLO BV, Series II-A, Class SUB, 7.500%, due 03/28/23 |
|
12/15/06 |
|
|
686,465 |
|
|
|
0.12 |
|
|
|
717,329 |
|
|
|
0.13 |
|
|
GS Mortgage Securities Corp., II, Series 07-GKK1, Class A1, 5.700%, due 12/20/49 |
|
05/02/07 |
|
|
2,001,948 |
|
|
|
0.36 |
|
|
|
1,939,400 |
|
|
|
0.35 |
|
|
GSC European CDO SA, Series II-A, Class SUB, due 07/15/20 |
|
07/18/06 |
|
|
386,262 |
|
|
|
0.07 |
|
|
|
411,449 |
|
|
|
0.07 |
|
|
GSC European CDO, Series 07-4A, Class E, 7.444%, due 04/25/23 |
|
03/16/07 |
|
|
625,664 |
|
|
|
0.11 |
|
|
|
632,941 |
|
|
|
0.11 |
|
|
GSC Partners CDO Fund Ltd., Series 07-8A, Class SUB, due 04/17/21 |
|
02/28/07 |
|
|
222,936 |
|
|
|
0.04 |
|
|
|
240,000 |
|
|
|
0.04 |
|
|
GSC Partners CDO Fund V, Ltd., due 11/20/16 |
|
07/25/06 |
|
|
257,681 |
|
|
|
0.05 |
|
|
|
234,900 |
|
|
|
0.04 |
|
|
due 11/20/16 |
|
02/07/07 |
|
|
230,000 |
|
|
|
0.04 |
|
|
|
217,500 |
|
|
|
0.04 |
|
|
118
UBS Absolute Return Bond FundPortfolio of investments
June 30, 2007
Restricted securities(continued)
Securities |
|
Acquisition dates |
|
Acquisition cost |
|
Acquisition cost as a percentage of net assets |
|
06/30/07 Market value |
|
06/30/07 Market value as a percentage of net assets |
|
Gulf Stream - Sextant CLO Ltd., Series 07-1A, Class SUB, due 06/17/21 |
|
05/17/07 |
|
$ |
520,000 |
|
|
|
0.09 |
% |
|
$ |
520,000 |
|
|
|
0.09 |
% |
|
Series 06-1A, Class D, 6.960%, due 08/21/20 |
|
07/26/06 |
|
|
170,000 |
|
|
|
0.03 |
|
|
|
163,030 |
|
|
|
0.03 |
|
|
Harbourmaster CLO Ltd., Series 7A, Class C, due 09/22/22 |
|
10/31/06 |
|
|
363,746 |
|
|
|
0.07 |
|
|
|
406,035 |
|
|
|
0.07 |
|
|
Series PR2A, Class C, due 10/15/22 |
|
08/03/06 |
|
|
182,486 |
|
|
|
0.03 |
|
|
|
197,414 |
|
|
|
0.04 |
|
|
Series PR2A, Class B2, 8.068%, due 10/15/22 |
|
08/03/06 |
|
|
384,180 |
|
|
|
0.07 |
|
|
|
414,643 |
|
|
|
0.08 |
|
|
Harbourview CLO VI Ltd., Series 6A, Class D, 9.060%, due 12/27/19 |
|
10/20/06 |
|
|
363,584 |
|
|
|
0.07 |
|
|
|
333,000 |
|
|
|
0.06 |
|
|
Hereford Street ABS CDO Ltd., Series 05-1A, Class D, 8.250%, due 01/03/45 |
|
11/04/05 |
|
|
696,500 |
|
|
|
0.13 |
|
|
|
541,485 |
|
|
|
0.10 |
|
|
Hewett's Island CDO Ltd., Series 06-4A, Class C, 6.107%, due 05/09/18 |
|
04/11/06 |
|
|
249,360 |
|
|
|
0.05 |
|
|
|
248,350 |
|
|
|
0.05 |
|
|
Series 06-4A, Class D1, 7.007%, due 05/09/18 |
|
04/11/06 |
|
|
247,857 |
|
|
|
0.04 |
|
|
|
238,075 |
|
|
|
0.04 |
|
|
Series 07-6A, Class D, 7.630%, due 06/09/19 |
|
05/09/07 |
|
|
247,467 |
|
|
|
0.04 |
|
|
|
247,467 |
|
|
|
0.04 |
|
|
Series 06-4A, Class E, 9.907%, due 05/09/18 |
|
04/11/06 |
|
|
346,364 |
|
|
|
0.06 |
|
|
|
350,000 |
|
|
|
0.06 |
|
|
Highlander Euro CDO, Series 06-2CA, Class F1, due 12/14/22 |
|
11/28/06 |
|
|
576,071 |
|
|
|
0.11 |
|
|
|
596,871 |
|
|
|
0.11 |
|
|
Series 06-2CA, Class E, 7.760%, due 12/14/22 |
|
11/28/06 |
|
|
329,608 |
|
|
|
0.06 |
|
|
|
325,742 |
|
|
|
0.06 |
|
|
Home Equity Mortgage Trust, Series 06-4, Class B2, 9.320%, due 11/25/36 |
|
07/26/06 |
|
|
418,189 |
|
|
|
0.08 |
|
|
|
15,000 |
|
|
|
0.00 |
(1) |
|
ING Investment Management CLO II Ltd., due 08/01/20 |
|
06/30/06 |
|
|
300,000 |
|
|
|
0.05 |
|
|
|
289,500 |
|
|
|
0.05 |
|
|
Ischus CDO Ltd., Series 06-S1, Class B1L, 9.355%, due 04/12/41 |
|
02/21/06 |
|
|
721,522 |
|
|
|
0.13 |
|
|
|
664,845 |
|
|
|
0.12 |
|
|
Kingsland Ltd., Series 07-5A, Class SUB, due 07/14/21 |
|
05/02/07 |
|
|
209,000 |
|
|
|
0.04 |
|
|
|
215,600 |
|
|
|
0.04 |
|
|
Series 07-5A, Class E, 9.610%, due 07/14/21 |
|
05/02/07 |
|
|
241,728 |
|
|
|
0.04 |
|
|
|
245,625 |
|
|
|
0.04 |
|
|
Laurelin BV, Series 2A, Class SUB, due 07/15/23 |
|
06/05/07 |
|
|
337,988 |
|
|
|
0.06 |
|
|
|
338,363 |
|
|
|
0.06 |
|
|
Lenox CDO Ltd., Series 05-1A, Class E1, 8.860%, due 11/14/43 |
|
11/23/05 |
|
|
239,092 |
|
|
|
0.04 |
|
|
|
217,642 |
|
|
|
0.04 |
|
|
Lightpoint CLO Ltd., Series 06-4A, Class C, 7.156%, due 04/15/18 |
|
03/03/06 |
|
|
550,000 |
|
|
|
0.10 |
|
|
|
533,093 |
|
|
|
0.10 |
|
|
Logan CDO Ltd., Series III-A, Class E, due 07/05/57 |
|
06/08/07 |
|
|
390,000 |
|
|
|
0.07 |
|
|
|
390,000 |
|
|
|
0.07 |
|
|
Series II-A, Class E, 12.855%, due 05/04/51 |
|
04/11/06 |
|
|
398,000 |
|
|
|
0.07 |
|
|
|
381,760 |
|
|
|
0.07 |
|
|
Longport Funding Ltd., Series 07-1A. Class D, 11.598%, due 04/12/51 |
|
05/31/07 |
|
|
428,500 |
|
|
|
0.08 |
|
|
|
428,500 |
|
|
|
0.08 |
|
|
Longshore CDO Funding Ltd., Series 06-1A, Class D, 8.255%, due 05/03/46 |
|
01/10/06 |
|
|
367,913 |
|
|
|
0.07 |
|
|
|
307,800 |
|
|
|
0.06 |
|
|
MARC CDO PLC, Series 1A, Class E, 12.360%, due 03/13/53 |
|
11/30/05 |
|
|
349,125 |
|
|
|
0.06 |
|
|
|
273,840 |
|
|
|
0.05 |
|
|
119
UBS Absolute Return Bond FundPortfolio of investments
June 30, 2007
Restricted securities(concluded)
Securities |
|
Acquisition dates |
|
Acquisition cost |
|
Acquisition cost as a percentage of net assets |
|
06/30/07 Market value |
|
06/30/07 Market value as a percentage of net assets |
|
MC Funding Ltd., Series 06-1, due 12/20/20 |
|
12/08/06 |
|
$ |
482,876 |
|
|
|
0.09 |
% |
|
$ |
482,895 |
|
|
|
0.09 |
% |
|
Series 06-1A, Class E, 9.110%, due 12/20/20 |
|
12/08/06 |
|
|
640,000 |
|
|
|
0.12 |
|
|
|
604,947 |
|
|
|
0.11 |
|
|
Menton CDO PLC, Series II-A, Class E, 12.355%, due 10/24/53 |
|
10/10/05 |
|
|
249,375 |
|
|
|
0.05 |
|
|
|
236,950 |
|
|
|
0.04 |
|
|
Series III-A, Class E, 12.510%, due 11/28/56 |
|
10/18/06 |
|
|
550,000 |
|
|
|
0.10 |
|
|
|
395,010 |
|
|
|
0.07 |
|
|
Merrill Lynch Mortgage Investors, Inc., Series 04-SL2, Class B4, 10.070%, due 06/25/35 |
|
02/10/06 |
|
|
1,082,250 |
|
|
|
0.20 |
|
|
|
889,854 |
|
|
|
0.16 |
|
|
Northwoods Capital Ltd., Series 06-6A, Class C, 7.106%, due 03/16/21 |
|
02/15/06 |
|
|
397,074 |
|
|
|
0.07 |
|
|
|
385,000 |
|
|
|
0.07 |
|
|
Octans CDO Ltd., Series 06-2A, Class D, 8.660%, due 11/12/51 |
|
09/20/06 |
|
|
297,150 |
|
|
|
0.05 |
|
|
|
209,232 |
|
|
|
0.04 |
|
|
OHA Park Avenue CLO Ltd., Series 07-1A, Class SUB, due 03/14/22 |
|
02/26/07 |
|
|
370,000 |
|
|
|
0.07 |
|
|
|
355,200 |
|
|
|
0.06 |
|
|
PSION Synthetic CDO PLC, Series I-A, Class E, 10.610%, due 12/21/15 |
|
12/15/05 |
|
|
314,985 |
|
|
|
0.06 |
|
|
|
318,450 |
|
|
|
0.06 |
|
|
Queen Street CLO, Series 06-1A, Class F, due 04/15/23 |
|
12/12/06 |
|
|
424,960 |
|
|
|
0.08 |
|
|
|
463,031 |
|
|
|
0.08 |
|
|
Series 07-1A, Class F, due 09/25/24 |
|
05/18/07 |
|
|
263,444 |
|
|
|
0.05 |
|
|
|
464,233 |
|
|
|
0.08 |
|
|
Race Point CLO, Series 06-3, Class E, 9.606%, due 04/15/20 |
|
03/10/06 |
|
|
500,000 |
|
|
|
0.09 |
|
|
|
475,150 |
|
|
|
0.09 |
|
|
Rockwall CDO Ltd., Series 06-1A, Class B1L, 7.606%, due 08/01/21 |
|
04/24/06 |
|
|
297,750 |
|
|
|
0.05 |
|
|
|
300,000 |
|
|
|
0.05 |
|
|
Rockwall Investors Corp., due 08/01/21 |
|
04/24/06 |
|
|
198,500 |
|
|
|
0.03 |
|
|
|
190,000 |
|
|
|
0.03 |
|
|
Sagittarius CDO Ltd., Series 07-1A, Class C, 7.420%, due 12/10/51 |
|
02/13/07 |
|
|
1,040,000 |
|
|
|
0.19 |
|
|
|
936,000 |
|
|
|
0.17 |
|
|
Saturn CLO Ltd., Series 07-1A, Class D, 9.374%, due 05/13/22 |
|
04/20/07 |
|
|
238,025 |
|
|
|
0.04 |
|
|
|
245,250 |
|
|
|
0.04 |
|
|
Shasta CLO I Ltd., due 04/20/21 |
|
12/20/06 |
|
|
731,500 |
|
|
|
0.13 |
|
|
|
739,200 |
|
|
|
0.13 |
|
|
Spirit CBO, Series 04-2A, Class D, 6.097%, due 10/27/10 |
|
11/16/05 |
|
|
702,085 |
|
|
|
0.13 |
|
|
|
724,828 |
|
|
|
0.13 |
|
|
Stanfield Veyron CLO Ltd., Series 06-1A, Class D, 6.956%, due 07/15/18 |
|
06/13/06 |
|
|
199,300 |
|
|
|
0.04 |
|
|
|
192,440 |
|
|
|
0.03 |
|
|
Taberna Preferred Funding Ltd., Series 06-7A, Class A3L, 6.806%, due 02/05/37 |
|
09/15/06 |
|
|
232,629 |
|
|
|
0.04 |
|
|
|
231,144 |
|
|
|
0.04 |
|
|
Series 06-7A, Class B1L, 8.306%, due 02/05/37 |
|
09/15/06 |
|
|
303,800 |
|
|
|
0.05 |
|
|
|
294,500 |
|
|
|
0.05 |
|
|
Tricadia CDO Ltd., Series 05-4A, Class B1L, 8.610%, due 12/11/40 |
|
12/01/05 |
|
|
502,490 |
|
|
|
0.09 |
|
|
|
488,905 |
|
|
|
0.09 |
|
|
Series 05-3A, Class B1L, 8.860%, due 06/25/41 |
|
11/01/05 |
|
|
475,221 |
|
|
|
0.09 |
|
|
|
469,494 |
|
|
|
0.08 |
|
|
Series 06-5A, Class F, 11.360%, due 06/19/46 |
|
05/09/06 |
|
|
581,505 |
|
|
|
0.10 |
|
|
|
487,264 |
|
|
|
0.09 |
|
|
Trimaran CLO Ltd., Series 06-2A, Class B2L, 9.106%, due 11/01/18 |
|
07/28/06 |
|
|
407,950 |
|
|
|
0.07 |
|
|
|
399,422 |
|
|
|
0.07 |
|
|
Series 07-1A, Class B2L, 8.741%, due 06/15/21 |
|
03/09/07 |
|
|
198,806 |
|
|
|
0.04 |
|
|
|
189,640 |
|
|
|
0.03 |
|
|
Valleriite CDO, Series 07-A1, Class D1EU, 7.525%, due 12/20/17 |
|
06/12/07 |
|
|
465,868 |
|
|
|
0.09 |
|
|
|
473,707 |
|
|
|
0.09 |
|
|
|
|
|
|
$ |
44,131,946 |
|
|
|
7.97 |
% |
|
$ |
41,302,710 |
|
|
|
7.46 |
% |
|
(1) Amount represents less than 0.005%.
120
UBS Absolute Return Bond FundPortfolio of investments
June 30, 2007
Forward foreign currency contracts
UBS Absolute Return Bond Fund had the following open forward foreign currency contracts as of June 30, 2007:
|
|
Contracts to deliver |
|
In exchange for |
|
Maturity date |
|
Unrealized appreciation/ (depreciation) |
|
Australian Dollar |
|
|
7,755,000 |
|
|
USD |
6,482,909 |
|
|
09/12/07 |
|
$ |
(78,933 |
) |
|
Canadian Dollar |
|
|
12,825,000 |
|
|
USD |
12,138,564 |
|
|
09/12/07 |
|
|
79,665 |
|
|
Euro |
|
|
157,730,000 |
|
|
USD |
213,855,381 |
|
|
09/12/07 |
|
|
(135,333 |
) |
|
Great Britain Pound |
|
|
45,940,000 |
|
|
USD |
91,544,868 |
|
|
09/12/07 |
|
|
(612,304 |
) |
|
United States Dollar |
|
|
40,056,115 |
|
|
CHF |
48,540,000 |
|
|
09/12/07 |
|
|
(102,831 |
) |
|
United States Dollar |
|
|
9,855,489 |
|
|
EUR |
7,390,000 |
|
|
09/12/07 |
|
|
170,450 |
|
|
United States Dollar |
|
|
315,923 |
|
|
EUR |
235,000 |
|
|
07/11/07 |
|
|
2,225 |
|
|
United States Dollar |
|
|
2,903,581 |
|
|
JPY |
348,000,000 |
|
|
09/12/07 |
|
|
(50,421 |
) |
|
United States Dollar |
|
|
15,858,581 |
|
|
SEK |
108,820,000 |
|
|
09/12/07 |
|
|
108,417 |
|
|
United States Dollar |
|
|
5,452,545 |
|
|
SGD |
8,275,000 |
|
|
09/12/07 |
|
|
(15,625 |
) |
|
Net unrealized depreciation on forward foreign currency contracts |
|
$ |
(634,690 |
) |
|
Currency type abbreviations:
CHF Swiss Franc
EUR Euro
JPY Japanese Yen
SEK Swedish Krona
SGD Singapore Dollar
USD United States Dollar
Futures contracts
UBS Absolute Return Bond Fund had the following open futures contracts as of June 30, 2007:
|
|
Expiration date |
|
Cost/ proceeds |
|
Value |
|
Unrealized appreciation/ (depreciation) |
|
US Treasury futures buy contracts: |
|
2 Year US Treasury Notes, 85 contracts |
|
September 2007 |
|
$ |
17,345,550 |
|
|
$ |
17,321,406 |
|
|
$ |
(24,144 |
) |
|
US Treasury futures sell contracts: |
|
5 Year US Treasury Notes, 790 contracts |
|
September 2007 |
|
|
82,592,163 |
|
|
|
82,221,719 |
|
|
|
370,444 |
|
|
10 Year US Treasury Notes, 1,330 contracts |
|
September 2007 |
|
|
140,825,026 |
|
|
|
140,585,156 |
|
|
|
239,870 |
|
|
Index futures buy contracts: |
|
Australian 10 Year Bond, 220 contracts (AUD) |
|
September 2007 |
|
|
17,478,402 |
|
|
|
17,530,563 |
|
|
|
52,161 |
|
|
Index futures sell contracts: |
|
EURO-Bobl, 260 contracts (EUR) |
|
September 2007 |
|
|
37,428,980 |
|
|
|
37,325,715 |
|
|
|
103,265 |
|
|
EURO-Bund, 225 contracts (EUR) |
|
September 2007 |
|
|
33,947,211 |
|
|
|
33,726,282 |
|
|
|
220,929 |
|
|
EURO-Schatz, 440 contracts (EUR) |
|
September 2007 |
|
|
61,057,556 |
|
|
|
61,037,618 |
|
|
|
19,938 |
|
|
Japanese 10 Year Bond, 11 contracts (JPY) |
|
September 2007 |
|
|
11,772,970 |
|
|
|
11,793,787 |
|
|
|
(20,817 |
) |
|
Long Gilt, 75 contracts (GBP) |
|
September 2007 |
|
|
15,914,417 |
|
|
|
15,622,516 |
|
|
|
291,901 |
|
|
Net unrealized appreciation on futures contracts |
|
$ |
1,253,547 |
|
|
The segregated aggregate market value of investments and cash collateral pledged to cover margin requirements for the open futures positions at June 30, 2007 was $3,265,576.
Currency type abbreviations:
AUD Australian Dollar
EUR Euro
GBP Great Britain Pound
JPY Japanese Yen
See accompanying notes to financial statements.
121
UBS Global Bond Fund
Portfolio performance
For the 12 months ended June 30, 2007, Class A shares of UBS Global Bond Fund (the "Fund") returned 1.67% (Class A shares declined 2.93% after the deduction of the maximum sales charge), while Class Y shares returned 2.03%. The Fund's benchmark, the Lehman Brothers Global Aggregate Index (the "Index"), returned 4.67% over the same time period. (Class Y shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 124; please note that these returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.)
The Fund's underperformance relative to the Index was primarily due to foreign currency positioning. Relative returns were affected to a lesser extent by an underweight exposure to the credit sector and select asset-backed security holdings.
Portfolio performance summary
What worked
A defensive duration strategy helped relative performance for the period as a whole.
The Fund held a less-than-Index duration (duration is a measure of a bond's sensitivity to changes in interest rates) throughout the period, which helped to reduce the impact of interest rate changes. This defensive stance helped the portfolio during periods when interest rates rose (and bond prices fell).
We made several moves to adjust the Fund's duration during the reporting period, responding to weakness in most bond markets; much of the Fund's underweight duration was achieved in the US market.
Interest rate management made a strong contribution to relative returns. Our interest rate strategy aided performance for much of the reporting period. However, when bonds rallied across all developed markets in the third quarter of 2006, our below benchmark exposure hurt relative results. Much of these losses were recovered during the second quarter of 2007, when interest rate management once again made a strong contribution to performance.
Spread management (our allocation between sectors) generated positive results over the period. Our posture early in the periodwhen we viewed credit as being overvalued, leading us to maintain an underweight duration-adjusted exposure (a measure of duration that incorporates the expected impact that a change in interest rates would have on the value of an instrument)initially detracted from performance. However, we saw a reversal in the last few months of the period, which produced a small net positive impact on performance from spread management.
What didn't work
Foreign currency positioning was the primary factor behind the Fund's relative underperformance.
The Fund's overweight exposure to select currencies, such as the Japanese yen and the Swiss franc, had a negative impact on relative performance.
122
UBS Global Bond Fund
Relative performance was also hurt by the Fund's underweight exposure to the strong performing British pound and Canadian dollar.
In our view, the recent increase in currency market volatility will create growing pressure for corrections, bringing overvalued exchange rates back toward fair value; as a result, we expect to continue to maintain our overweights to the Japanese yen and the Swiss franc.
The Fund's positions in residential mortgage-backed securities (RMBS) hurt performance during the period. We had a limited number of holdings in RMBS, which suffered severe price markdowns as a result of the growing awareness of problems in the US subprime mortgage market, as well as the wider US residential mortgage market. It should be noted that, due to the strength of our risk management processwhich requires us to maintain the discipline of a widely diversified portfolio strategythe impact of these events, on a relative basis, had limited effect on the Fund.
This letter is intended to assist shareholders in understanding how the Fund performed during the 12 months ended June 30, 2007. The views and opinions in the letter were current as of August 15, 2007. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. Mutual funds are sold by prospectus only. You should read it carefully and consider a fund's investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be
obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/globalam-us.
123
UBS Global Bond Fund
Average annual total return (unaudited)
|
|
|
|
1 year ended 06/30/07 |
|
5 years ended 06/30/07 |
|
10 years ended 06/30/07 |
|
Inception(1) to 06/30/07 |
|
Before deducting |
|
Class A(2) |
|
|
1.67 |
% |
|
|
5.61 |
% |
|
|
N/A |
|
|
|
6.25 |
% |
|
maximum sales charge |
|
Class B(2) |
|
|
0.90 |
|
|
|
4.84 |
|
|
|
N/A |
|
|
|
6.05 |
|
|
|
|
Class C(4) |
|
|
1.17 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
5.09 |
|
|
|
|
Class Y(5) |
|
|
2.03 |
|
|
|
5.89 |
|
|
|
4.63 |
% |
|
|
5.42 |
|
|
After deducting maximum |
|
Class A(2) |
|
|
-2.93 |
|
|
|
4.65 |
|
|
|
N/A |
|
|
|
5.39 |
|
|
sales charge |
|
Class B(3) |
|
|
-4.05 |
|
|
|
4.51 |
|
|
|
N/A |
|
|
|
5.92 |
|
|
|
|
Class C(4) |
|
|
0.42 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
5.09 |
|
|
Lehman Brothers Global Aggregate Index(6) |
|
|
4.67 |
|
|
|
6.28 |
|
|
|
5.56 |
|
|
|
5.96 |
|
|
The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2006 prospectuses were as follows: Class A1.38% and 1.15%; Class B2.15% and 1.90%; Class C1.78% and 1.65%; Class Y1.06% and .90%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The 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 management fees and/or to reimburse expenses to the extent necessary so the Fund's operating expenses, through the fiscal year ending June 30, 2007, do not exceed Class A1.15%; Class B1.90%; Class C1.65%; Class Y.90%. 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.
(1) Inception date of UBS Global Bond Fund Class A shares is 11/05/01. Inception dates of Class B and Class C shares are 11/26/01 and 07/02/02, respectively. Inception date of Class Y shares and the Index is 07/31/93.
(2) Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.
(3) Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.
4) Maximum contingent deferred sales charge for Class C shares is 0.75% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.
(5) The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.
(6) The Lehman Brothers Global Aggregate Index is a broad-based, market capitalization weighted index which measures the broad global market for US and non US corporate, government, governmental agency, supranational, mortgage-backed and asset backed fixed income securities.
If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectus.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
124
UBS Global Bond Fund
Illustration of an assumed investment of $10,000 in Class A shares (adjusted for maximum sales
charge) and $10,000,000 in Class Y shares (unaudited)
The following two charts show the growth in the value of an investment in UBS Global Bond Fund Class A shares (adjusted for 4.50% maximum sales charge), Class Y shares and the Lehman Brothers Global Aggregate Index, if you had invested $10,000 in Class A shares on November 5, 2001 or $10,000,000 in Class Y shares on July 31, 1993, and had reinvested all your income dividends and capital gain distributions through June 30, 2007. The performance of Class B and Class C shares will vary based upon the different inception dates, class specific expenses and sales charges. No adjustment has been made for any income taxes payable by shareholders on income dividends and capital gain distributions. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption.
UBS Global Bond Fund Class A vs. Lehman Brothers Global Aggregate Index
Wealth value with dividends reinvested
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 4.50%.
UBS Global Bond Fund Class Y vs. Lehman Brothers Global Aggregate Index
Wealth value with dividends reinvested
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
125
UBS Global Bond Fund
Top ten fixed income holdings (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
Government of Japan CPI Linked Bonds, 0.500%, due 12/10/14 |
|
|
7.4 |
% |
|
Government of France, 3.500%, due 07/12/09 |
|
|
4.7 |
|
|
Deutsche Bundesrepublik, 6.250%, due 01/04/24 |
|
|
4.5 |
|
|
Government of Belgium, 5.750%, due 03/28/08 |
|
|
4.2 |
|
|
Government of Sweden, 5.000%, due 01/28/09 |
|
|
3.4 |
|
|
Council of Europe Development Bank, 5.625%, due 12/14/15 |
|
|
3.2 |
|
|
US Treasury Inflation Indexed Notes 2.375%, due 01/15/17 |
|
|
2.9 |
|
|
US Treasury Notes, 4.250%, due 11/30/07 |
|
|
2.7 |
|
|
Government of Japan, 1.900%, due 06/20/25 |
|
|
2.4 |
|
|
UK Gilts, 4.750%, due 09/07/15 |
|
|
2.3 |
|
|
Total |
|
|
37.7 |
% |
|
Country exposure, top five (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
United States |
|
|
25.7 |
% |
|
Japan |
|
|
9.8 |
|
|
Germany |
|
|
9.0 |
|
|
France |
|
|
9.0 |
|
|
United Kingdom |
|
|
6.9 |
|
|
Total |
|
|
60.4 |
% |
|
(1) Figures represent the direct investments of the UBS Global Bond Fund. Figures could be different if a breakdown of the underlying investment company was included.
126
UBS Global Bond Fund
Industry diversification (unaudited)(1)
As a percentage of net assets as of June 30, 2007
Bonds US bonds US corporate bonds |
|
Aerospace & defense |
|
|
0.04 |
% |
|
Automobiles |
|
|
0.42 |
|
|
Beverages |
|
|
0.80 |
|
|
Capital markets |
|
|
0.58 |
|
|
Chemicals |
|
|
0.12 |
|
|
Commercial banks |
|
|
1.57 |
|
|
Commercial services & supplies |
|
|
0.24 |
|
|
Consumer finance |
|
|
0.86 |
|
|
Containers & packaging |
|
|
0.21 |
|
|
Diversified financial services |
|
|
0.96 |
|
|
Diversified telecommunication services |
|
|
0.67 |
|
|
Electronic equipment & instruments |
|
|
0.04 |
|
|
Food & staples retailing |
|
|
0.59 |
|
|
Food products |
|
|
0.16 |
|
|
Hotels, restaurants & leisure |
|
|
0.20 |
|
|
Independent power producers & energy traders |
|
|
0.12 |
|
|
Industrial conglomerates |
|
|
0.07 |
|
|
Insurance |
|
|
0.16 |
|
|
Media |
|
|
0.41 |
|
|
Metals & mining |
|
|
0.20 |
|
|
Multi-utilities |
|
|
0.13 |
|
|
Office electronics |
|
|
0.08 |
|
|
Oil, gas & consumable fuels |
|
|
0.72 |
|
|
Paper & forest products |
|
|
0.63 |
|
|
Pharmaceuticals |
|
|
0.68 |
|
|
Semiconductors & semiconductor equipment |
|
|
0.11 |
|
|
Textiles, apparel & luxury goods |
|
|
0.24 |
|
|
Thrifts & mortgage finance |
|
|
0.46 |
|
|
Wireless telecommunication services |
|
|
0.05 |
|
|
Total US corporate bonds |
|
|
11.52 |
|
|
Asset-backed securities |
|
|
1.86 |
|
|
Collateralized debt obligations |
|
|
2.44 |
|
|
Commercial mortgage-backed securities |
|
|
2.34 |
|
|
Mortgage & agency debt securities |
|
|
0.55 |
|
|
US government obligations |
|
|
6.94 |
|
|
Total US bonds |
|
|
25.65 |
|
|
International bonds International corporate bonds |
|
Chemicals |
|
|
0.05 |
% |
|
Commercial banks |
|
|
5.80 |
|
|
Commercial services & supplies |
|
|
0.08 |
|
|
Construction materials |
|
|
0.70 |
|
|
Containers & packaging |
|
|
0.12 |
|
|
Diversified financial services |
|
|
0.16 |
|
|
Diversified telecommunication services |
|
|
1.01 |
|
|
Electric utilities |
|
|
0.63 |
|
|
Multi-utilities |
|
|
0.21 |
|
|
Oil, gas & consumable fuels |
|
|
1.04 |
|
|
Paper & forest products |
|
|
0.43 |
|
|
Thrifts & mortgage finance |
|
|
0.60 |
|
|
Total international corporate bonds |
|
|
10.83 |
|
|
International asset-backed security |
|
|
0.19 |
|
|
International collateralized debt obligations |
|
|
2.81 |
|
|
International mortgage & agency debt security |
|
|
0.20 |
|
|
Foreign government bonds |
|
|
36.88 |
|
|
Sovereign/supranational bonds |
|
|
6.92 |
|
|
Total international bonds |
|
|
57.83 |
|
|
Total bonds |
|
|
83.48 |
|
|
Investment company |
|
UBS U.S. Securitized Mortgage Relationship Fund |
|
|
11.29 |
|
|
Short-term investment |
|
|
4.17 |
|
|
Total investments |
|
|
98.94 |
|
|
Cash and other assets, less liabilities |
|
|
1.06 |
|
|
Net assets |
|
|
100.00 |
% |
|
(1) Figures represent the industry breakdown of direct investments of the UBS Global Bond Fund. Figures would be different if a breakdown of the underlying investment companies' industry diversification was included.
127
UBS Global Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds83.48% |
|
US bonds25.65% |
|
US corporate bonds11.52% |
|
Ainsworth Lumber Co., Ltd., 7.250%, due 10/01/12 |
|
$ |
9,000 |
|
|
$ |
6,930 |
|
|
AK Steel Corp., 7.875%, due 02/15/09 |
|
|
83,000 |
|
|
|
82,793 |
|
|
American Cellular Corp., Series B, 10.000%, due 08/01/11 |
|
|
58,000 |
|
|
|
60,755 |
|
|
ArvinMeritor, Inc., 8.125%, due 09/15/15 |
|
|
50,000 |
|
|
|
48,438 |
|
|
Bank One Corp., 7.875%, due 08/01/10 |
|
|
675,000 |
|
|
|
720,761 |
|
|
Cincinnati Bell, Inc., 7.250%, due 07/15/13 |
|
|
150,000 |
|
|
|
153,750 |
|
|
Citigroup, Inc., 5.000%, due 09/15/14 |
|
|
400,000 |
|
|
|
380,505 |
|
|
Comcast Cable Communications LLC, 6.750%, due 01/30/11 |
|
|
150,000 |
|
|
|
155,258 |
|
|
Countrywide Home Loans, Inc., 3.250%, due 05/21/08 |
|
|
575,000 |
|
|
|
563,547 |
|
|
CSC Holdings, Inc., Series B, 8.125%, due 08/15/09 |
|
|
150,000 |
|
|
|
153,000 |
|
|
DaimlerChrysler N.A. Holding Corp., 7.200%, due 09/01/09 |
|
|
500,000 |
|
|
|
515,471 |
|
|
Deluxe Corp., 5.000%, due 12/15/12 |
|
|
150,000 |
|
|
|
135,000 |
|
|
Dynegy Holdings, Inc., 8.375%, due 05/01/16 |
|
|
75,000 |
|
|
|
73,313 |
|
|
Ford Motor Credit Co. LLC, 5.800%, due 01/12/09 |
|
|
380,000 |
|
|
|
371,964 |
|
|
Freeport-McMoRan Copper & Gold, Inc., 8.250%, due 04/01/15 |
|
|
150,000 |
|
|
|
158,250 |
|
|
Freescale Semiconductor, Inc., 10.125%, due 12/15/16(1) |
|
|
150,000 |
|
|
|
141,000 |
|
|
General Electric Capital Corp., 4.375%, due 01/20/10 |
|
EUR |
505,000 |
|
|
|
677,743 |
|
|
6.750%, due 03/15/32 |
|
$ |
110,000 |
|
|
|
119,346 |
|
|
GMAC LLC, 7.250%, due 03/02/11 |
|
|
100,000 |
|
|
|
99,672 |
|
|
Harland Clarke Holdings Corp., 10.106%, due 05/15/15(1),(2) |
|
|
85,000 |
|
|
|
82,025 |
|
|
HSBC Finance Corp., 6.750%, due 05/15/11 |
|
|
350,000 |
|
|
|
363,309 |
|
|
Jacobs Entertainment, Inc., 9.750%, due 06/15/14 |
|
|
50,000 |
|
|
|
51,938 |
|
|
JPMorgan Chase Bank N.A., 4.375%, due 11/30/21(2) |
|
EUR |
350,000 |
|
|
|
441,044 |
|
|
|
|
Face amount |
|
Value |
|
US corporate bonds(concluded) |
|
Kinder Morgan Energy Partners LP, 5.800%, due 03/15/35 |
|
$ |
1,000,000 |
|
|
$ |
888,354 |
|
|
Kraft Foods, Inc., 5.625%, due 11/01/11 |
|
|
200,000 |
|
|
|
198,435 |
|
|
Kroger Co., 8.050%, due 02/01/10 |
|
|
350,000 |
|
|
|
369,069 |
|
|
Landry's Restaurants, Inc., Series B, 7.500%, due 12/15/14 |
|
|
250,000 |
|
|
|
242,500 |
|
|
Levi Strauss & Co., 12.250%, due 12/15/12 |
|
|
275,000 |
|
|
|
297,688 |
|
|
Marsh & McLennan Cos., Inc., 6.250%, due 03/15/12 |
|
|
200,000 |
|
|
|
201,348 |
|
|
Miller Brewing Co., 5.500%, due 08/15/13(1) |
|
|
1,000,000 |
|
|
|
983,279 |
|
|
Mirant Americas Generation LLC, 8.300%, due 05/01/11 |
|
|
150,000 |
|
|
|
154,875 |
|
|
Mirant North America LLC, 7.375%, due 12/31/13 |
|
|
75,000 |
|
|
|
76,688 |
|
|
Morgan Stanley, 5.300%, due 03/01/13 |
|
|
235,000 |
|
|
|
230,341 |
|
|
5.750%, due 10/18/16 |
|
|
500,000 |
|
|
|
488,455 |
|
|
Owens-Brockway Glass Container, Inc., 8.250%, due 05/15/13 |
|
|
250,000 |
|
|
|
258,750 |
|
|
PolyOne Corp., 10.625%, due 05/15/10 |
|
|
147,000 |
|
|
|
154,350 |
|
|
Sanmina-SCI Corp., 8.110%, due 06/15/14(1),(2) |
|
|
45,000 |
|
|
|
45,000 |
|
|
Sheridan Group, Inc., 10.250%, due 08/15/11 |
|
|
150,000 |
|
|
|
157,500 |
|
|
Sinclair Broadcast Group, Inc., 8.000%, due 03/15/12 |
|
|
89,000 |
|
|
|
91,670 |
|
|
SLM Corp., 4.750%, due 03/17/14 |
|
EUR |
200,000 |
|
|
|
225,539 |
|
|
Sprint Capital Corp., 8.375%, due 03/15/12 |
|
$ |
620,000 |
|
|
|
675,424 |
|
|
Univision Communications, Inc., 7.850%, due 07/15/11 |
|
|
50,000 |
|
|
|
51,500 |
|
|
Wal-Mart Stores, Inc., 6.875%, due 08/10/09 |
|
|
350,000 |
|
|
|
360,943 |
|
|
Wells Fargo Bank N.A., 6.450%, due 02/01/11 |
|
|
750,000 |
|
|
|
773,320 |
|
|
Weyerhaeuser Co., 6.750%, due 03/15/12 |
|
|
750,000 |
|
|
|
775,992 |
|
|
Wyeth, 5.500%, due 02/01/14 |
|
|
850,000 |
|
|
|
837,747 |
|
|
Xerox Capital Trust I, 8.000%, due 02/01/27 |
|
|
100,000 |
|
|
|
102,661 |
|
|
Total US corporate bonds (cost $14,372,625) |
|
|
14,197,240 |
|
|
128
UBS Global Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
US bonds(continued) |
|
Asset-backed securities1.86% |
|
Countrywide Asset-Backed Certificates, Series 04-SD1, Class A1, 5.660%, due 06/25/33(1),(2) |
|
$ |
5,801 |
|
|
$ |
5,817 |
|
|
First Franklin Mortgage Loan Asset-Backed Certificates, Series 05-FFA, Class M3, 5.517%, due 03/25/25(3),(4) |
|
|
500,000 |
|
|
|
452,318 |
|
|
GSAMP Trust, Series 06-S1, Class M6, 7.000%, due 11/25/35(3),(4) |
|
|
500,000 |
|
|
|
10,000 |
|
|
Indymac Seconds Asset-Backed Trust, Series 06-1, Class A4, 6.166%, due 05/25/36(4) |
|
|
1,000,000 |
|
|
|
994,778 |
|
|
Metris Master Trust, Series 05-2, Class C, 5.870%, due 09/20/11(1),(2),(5) |
|
|
500,000 |
|
|
|
499,995 |
|
|
SACO I Trust, Series 06-5, Class 2A1, 5.470%, due 05/25/36(2) |
|
|
316,139 |
|
|
|
316,079 |
|
|
Structured Asset Securities Corp., Series 03-AL2, Class A, 3.357%, due 01/25/31(1) |
|
|
14,415 |
|
|
|
13,128 |
|
|
Total asset-backed securities (cost $2,810,011) |
|
|
2,292,115 |
|
|
Collateralized debt obligations2.44% |
|
Ares VR CLO Ltd., Series 06-1A, Class D, 7.260%, due 02/24/18(1),(2),(3),(5) |
|
|
140,000 |
|
|
|
133,980 |
|
|
Brentwood CLO Ltd., Series 06-1A, Class C, 6.956%, due 02/01/22(1),(2),(3) |
|
|
250,000 |
|
|
|
239,000 |
|
|
Commercial Industrial Finance Corp., Series 07-1A, Class A3L, 6.135%, due 05/10/21(1),(2),(3) |
|
|
200,000 |
|
|
|
197,060 |
|
|
Duke Funding Ltd., Series 06-11A, Class B1E, 6.286%, due 08/08/46(1),(3) |
|
EUR |
180,000 |
|
|
|
223,059 |
|
|
Global Leveraged Capital Credit Opportunity Fund, Series 06-1A, Class C, 6.358%, due 12/20/18(1),(2),(3),(5) |
|
$ |
250,000 |
|
|
|
250,800 |
|
|
Halcyon Loan Investors CLO Ltd., Series 06-1A, Class C, 6.810%, due 11/20/20(1),(2),(3) |
|
|
250,000 |
|
|
|
240,025 |
|
|
|
|
Face amount |
|
Value |
|
Collateralized debt obligations(concluded) |
|
Hewett's Island CDO Ltd., Series 07-6A, Class D, 7.630%, due 06/09/19(1),(2),(3) |
|
$ |
250,000 |
|
|
$ |
247,467 |
|
|
Highland Credit Opportunities CDO Ltd., Series 06-1A, Class C, 6.206%, due 11/01/13(1),(2),(3) |
|
|
250,000 |
|
|
|
249,975 |
|
|
Longport Funding Ltd., Series 07-1A, Class D, 11.598%, due 04/12/51(1),(2),(3) |
|
|
250,000 |
|
|
|
214,250 |
|
|
Sagittarius CDO Ltd., Series 07-1A, Class C, 7.420%, due 12/10/51(1),(2),(3) |
|
|
250,000 |
|
|
|
225,000 |
|
|
Taberna Preferred Funding Ltd., Series 06-5A, Class A3, 6.806%, due 08/05/36(1),(2),(3) |
|
|
200,000 |
|
|
|
192,880 |
|
|
Series 06-7A, Class A3L, 6.806%, due 02/05/37(1),(2),(3) |
|
|
330,000 |
|
|
|
317,823 |
|
|
Series 06-7A, Class B1L, 8.306%, due 02/05/37(1),(2),(3) |
|
|
200,000 |
|
|
|
190,000 |
|
|
Tricadia CDO Ltd., Series 05-4A, Class B1L, 8.610%, due 12/11/40(1),(2),(3) |
|
|
93,521 |
|
|
|
90,538 |
|
|
Total collateralized debt obligations (cost $3,066,854) |
|
|
3,011,857 |
|
|
Commercial mortgage-backed securities2.34% |
|
Asset Securitization Corp., Series 95-MD4, Class A3, 7.384%, due 08/13/29(2) |
|
|
350,000 |
|
|
|
350,811 |
|
|
Series 96-MD6, Class A4, 7.586%, due 11/13/29(2) |
|
|
375,000 |
|
|
|
376,944 |
|
|
Bear Stearns Commercial Mortgage Securities, Series 00-WF2, Class A2, 7.320%, due 10/15/32 |
|
|
80,000 |
|
|
|
83,639 |
|
|
DLJ Commercial Mortgage Corp., Series 00-CKP1, Class A1B, 7.180%, due 11/10/33 |
|
|
267,863 |
|
|
|
278,783 |
|
|
First Union Commercial Mortgage Securities, Inc., Series 97-C2, Class A3, 6.650%, due 11/18/29 |
|
|
30,831 |
|
|
|
30,806 |
|
|
Hilton Hotel Pool Trust, Series 00-HLTA, Class A1, 7.055%, due 10/03/15(1) |
|
|
227,043 |
|
|
|
232,906 |
|
|
JPMorgan Commercial Mortgage Finance Corp., Series 99-C8, Class A2, 7.400%, due 07/15/31 |
|
|
71,205 |
|
|
|
72,946 |
|
|
129
UBS Global Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
US bonds(concluded) |
|
Commercial mortgage-backed securities(concluded) |
|
Mach One Trust Commercial Mortgage-Backed, Series 04-1A, Class A1, 3.890%, due 05/28/40(1) |
|
$ |
67,925 |
|
|
$ |
67,268 |
|
|
Morgan Stanley Capital I, Series 03-T11, Class A4, 5.150%, due 06/13/41 |
|
|
155,000 |
|
|
|
150,514 |
|
|
Series 05-HQ7, Class A4, 5.373%, due 11/14/42(2) |
|
|
870,000 |
|
|
|
838,933 |
|
|
PNC Mortgage Acceptance Corp., Series 00-C1, Class A2, 7.610%, due 02/15/10 |
|
|
312,475 |
|
|
|
324,001 |
|
|
TIAA Retail Commercial Trust, Series 01-C1A, Class A2, 6.300%, due 06/19/21(1) |
|
|
75,907 |
|
|
|
76,165 |
|
|
Total commercial mortgage-backed securities (cost $3,000,958) |
|
|
2,883,716 |
|
|
Mortgage & agency debt securities0.55% |
|
Federal National Mortgage Association, 6.625%, due 09/15/09 |
|
|
360,000 |
|
|
|
370,597 |
|
|
Government National Mortgage Association Pool, # 781276, 6.500%, due 04/15/31 |
|
|
103,748 |
|
|
|
105,919 |
|
|
WaMu Mortgage Pass-Through Certificates, Series 07-HY1, Class 3A2, 5.884%, due 02/25/37(2) |
|
|
200,000 |
|
|
|
196,781 |
|
|
Total mortgage & agency debt securities (cost $678,049) |
|
|
673,297 |
|
|
US government obligations6.94% |
|
US Treasury Bonds, 6.250%, due 05/15/30 |
|
|
1,460,000 |
|
|
|
1,668,735 |
|
|
US Treasury Inflation Indexed Notes (TIPS), 2.375%, due 01/15/17 |
|
|
3,688,056 |
|
|
|
3,600,752 |
|
|
US Treasury Notes, 4.250%, due 11/30/07 |
|
|
3,300,000 |
|
|
|
3,291,235 |
|
|
Total US government obligations (cost $8,581,568) |
|
|
8,560,722 |
|
|
Total US bonds (cost $32,510,065) |
|
|
31,618,947 |
|
|
International bonds57.83% |
|
International corporate bonds10.83% |
|
Canada0.63% |
|
Abitibi-Consolidated, Inc., 6.950%, due 04/01/08 |
|
|
225,000 |
|
|
|
222,750 |
|
|
8.550%, due 08/01/10 |
|
|
150,000 |
|
|
|
143,250 |
|
|
|
|
Face amount |
|
Value |
|
Canada(concluded) |
|
Bowater Canada Finance Corp., 7.950%, due 11/15/11 |
|
$ |
175,000 |
|
|
$ |
164,719 |
|
|
Quebecor World Capital Corp., 4.875%, due 11/15/08 |
|
|
100,000 |
|
|
|
97,000 |
|
|
Stone Container Finance, 7.375%, due 07/15/14 |
|
|
150,000 |
|
|
|
144,000 |
|
|
|
|
|
771,719 |
|
|
Denmark0.33% |
|
Dong Energy A/S, 5.500%, due 06/29/3005(2) |
|
EUR |
300,000 |
|
|
|
403,112 |
|
|
France2.45% |
|
BNP Paribas, 5.250%, due 12/17/12 |
|
EUR |
140,000 |
|
|
|
192,729 |
|
|
5.625%, due 08/07/08 |
|
|
100,000 |
|
|
|
136,813 |
|
|
5.750%, due 01/24/22 |
|
GBP |
80,000 |
|
|
|
155,805 |
|
|
Compagnie de Financement Foncier, 2.375%, due 01/29/09 |
|
EUR |
550,000 |
|
|
|
720,190 |
|
|
Credit Lyonnais SA, 5.000%, due 11/15/12(2) |
|
|
210,000 |
|
|
|
284,678 |
|
|
France Telecom SA, 8.125%, due 01/28/33 |
|
|
240,000 |
|
|
|
413,097 |
|
|
Lafarge SA, 4.750%, due 03/23/20 |
|
|
700,000 |
|
|
|
864,895 |
|
|
Veolia Environnement, 4.875%, due 05/28/13 |
|
|
190,000 |
|
|
|
254,607 |
|
|
|
|
|
3,022,814 |
|
|
Germany2.36% |
|
Eurohypo AG, 3.750%, due 11/05/08 |
|
EUR |
550,000 |
|
|
|
737,124 |
|
|
EWE AG, 4.875%, due 10/14/19 |
|
|
170,000 |
|
|
|
221,962 |
|
|
Kreditanstalt fuer Wiederaufbau, |
|
4.750%, due 08/17/07 |
|
|
710,000 |
|
|
|
961,498 |
|
|
Landwirtschaftliche Rentenbank, 6.000%, due 09/15/09 |
|
AUD |
700,000 |
|
|
|
583,877 |
|
|
6.000%, due 05/30/13 |
|
|
500,000 |
|
|
|
405,184 |
|
|
|
|
|
2,909,645 |
|
|
Ireland0.65% |
|
Allied Irish Banks PLC, 7.500%, due 01/28/11(2),(6) |
|
EUR |
550,000 |
|
|
|
804,070 |
|
|
Luxembourg0.68% |
|
Telecom Italia Finance SA, 6.575%, due 07/30/09 |
|
EUR |
600,000 |
|
|
|
838,235 |
|
|
Netherlands0.50% |
|
E.ON International Finance BV, 6.375%, due 05/29/12 |
|
GBP |
100,000 |
|
|
|
200,576 |
|
|
130
UBS Global Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
International bonds(continued) |
|
International corporate bonds(concluded) |
|
Netherlands(concluded) |
|
Montell Finance Co. BV, 8.100%, due 03/15/27(1) |
|
$ |
65,000 |
|
|
$ |
59,150 |
|
|
RWE Finance BV, 5.500%, due 10/26/07 |
|
EUR |
265,000 |
|
|
|
359,769 |
|
|
|
|
|
619,495 |
|
|
Trinidad & Tobago0.71% |
|
Petroleum Co. of Trinidad & Tobago Ltd., |
|
6.000%, due 05/08/22(1) |
|
$ |
900,000 |
|
|
|
873,700 |
|
|
United Kingdom2.52% |
|
Barclays Bank PLC, 4.500%, due 03/04/19(2) |
|
EUR |
190,000 |
|
|
|
249,711 |
|
|
4.750%, due 03/15/20(2),(6) |
|
|
900,000 |
|
|
|
1,023,817 |
|
|
5.750%, due 09/14/26 |
|
GBP |
80,000 |
|
|
|
155,584 |
|
|
Lloyds TSB Bank PLC, 5.875%, due 06/20/14 |
|
|
400,000 |
|
|
|
783,069 |
|
|
National Westminster Bank PLC, 6.000%, due 01/21/10 |
|
EUR |
335,000 |
|
|
|
466,716 |
|
|
6.500%, due 09/07/21 |
|
GBP |
110,000 |
|
|
|
227,650 |
|
|
Travelers Insurance Co. Institutional Funding Ltd., 5.750%, due 12/06/11 |
|
|
100,000 |
|
|
|
196,034 |
|
|
|
|
|
3,102,581 |
|
|
Total international corporate bonds (cost $13,025,601) |
|
|
13,345,371 |
|
|
International asset-backed security0.19% |
|
United Kingdom0.19% |
|
Whinstone Capital Management Ltd., Series 1A, Class B2, 4.892%,due 10/25/44(1),(2) (cost $207,205) |
|
EUR |
171,237 |
|
|
|
232,919 |
|
|
International collateralized debt obligations2.81% |
|
Cayman Islands1.71% |
|
Black Diamond CLO Ltd., Series 05-2X, Class IN, due 01/07/18(3),(7) |
|
$ |
100,000 |
|
|
|
99,000 |
|
|
Series 06-1A, Class D, 6.741%, due 04/29/19(1),(2),(3) |
|
|
250,000 |
|
|
|
242,425 |
|
|
Blackrock Senior Income Series Corp., Series 07-5A, Class SUB, due 08/13/19(1),(3),(7) |
|
|
100,000 |
|
|
|
100,000 |
|
|
Cratos CLO Ltd., Series 07-1A, Class D, 7.755%, due 05/19/21(1),(2),(3) |
|
|
250,000 |
|
|
|
235,000 |
|
|
|
|
Face amount |
|
Value |
|
Cayman Islands(concluded) |
|
Credit-Based Asset Servicing and Securitization CBO Ltd., Series 18A, Class C, 7.360%, due 03/13/47(1),(2),(3) |
|
$ |
250,000 |
|
|
$ |
250,000 |
|
|
Galena CDO Ltd., Series II-AIRL, Class A1U, 6.025%, due 04/07/17(1),(2),(3),(5) |
|
|
300,000 |
|
|
|
299,940 |
|
|
Greywolf CLO Ltd., Series 07-1A, Class D, 6.888%, due 02/18/21(1),(2),(3),(5) |
|
|
250,000 |
|
|
|
234,425 |
|
|
Gulf Stream - Sextant CLO Ltd., Series 06-1A, Class D, 6.960%, due 08/21/20(1),(2),(3) |
|
|
180,000 |
|
|
|
172,620 |
|
|
Series 07-1A, Class SUB, due 06/17/21(1),(3),(7) |
|
|
100,000 |
|
|
|
100,000 |
|
|
Octans CDO Ltd., Series 06-2A, Class D, 8.660%, due 11/12/51(1),(2),(3) |
|
|
258,808 |
|
|
|
182,235 |
|
|
Stanfield Veyron CLO Ltd., Series 06-1A, Class D, 6.956%, due 07/15/18(1),(2),(3) |
|
|
200,000 |
|
|
|
192,440 |
|
|
|
|
|
2,108,085 |
|
|
Ireland0.18% |
|
Valleriite CDO, Series 07-1A, Class A1EU, 4.875%, due 12/20/17(1),(2),(3),(5) |
|
EUR |
160,000 |
|
|
|
216,552 |
|
|
Luxembourg0.27% |
|
GSC European CDO SA, Series I-RA, Class D, 5.595%, due 12/15/22(1),(2),(3) |
|
EUR |
250,000 |
|
|
|
338,362 |
|
|
Netherlands0.65% |
|
Highlander Euro CDO, Series 06-2NA, Class D, 5.810%, due 12/14/22(1),(2),(3),(5) |
|
EUR |
250,000 |
|
|
|
334,573 |
|
|
Queen Street CLO, Series 06-1A, Class C1, 4.589%, due 04/15/23(1),(2),(3) |
|
|
250,000 |
|
|
|
335,798 |
|
|
Series 07-1A, Class F, due 08/15/24(1),(3),(5),(7) |
|
|
100,000 |
|
|
|
132,638 |
|
|
|
|
|
803,009 |
|
|
Total international collateralized debt obligations (cost $3,570,621) |
|
|
3,466,008 |
|
|
131
UBS Global Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(concluded) |
|
International bonds(concluded) |
|
International mortgage & agency debt security0.20% |
|
United Kingdom0.20% |
|
Granite Master Issuer PLC, Series 05-4, Class C4, 4.623%, due 12/20/54(2) (cost $217,329) |
|
EUR |
180,000 |
|
|
$ |
244,290 |
|
|
Foreign government bonds36.88% |
|
Belgium4.17% |
|
Government of Belgium, 5.750%, due 03/28/08 |
|
EUR |
3,765,000 |
|
|
|
5,144,908 |
|
|
Canada0.96% |
|
Government of Canada, 6.000%, due 06/01/08 |
|
CAD |
1,240,000 |
|
|
|
1,178,015 |
|
|
France6.55% |
|
Government of France, 3.500%, due 07/12/09 |
|
EUR |
4,335,000 |
|
|
|
5,756,492 |
|
|
5.500%, due 04/25/29 |
|
|
1,555,000 |
|
|
|
2,315,497 |
|
|
|
|
|
8,071,989 |
|
|
Germany6.65% |
|
Deutsche Bundesrepublik, 3.750%, due 01/04/17 |
|
EUR |
500,000 |
|
|
|
634,890 |
|
|
4.000%, due 01/04/37 |
|
|
1,300,000 |
|
|
|
1,564,569 |
|
|
5.000%, due 07/04/12 |
|
|
330,000 |
|
|
|
455,616 |
|
|
6.250%, due 01/04/24 |
|
|
3,485,000 |
|
|
|
5,544,850 |
|
|
|
|
|
8,199,925 |
|
|
Japan9.85% |
|
Government of Japan CPI Linked Bonds, 0.500%, due 12/10/14 |
|
JPY |
1,179,000,000 |
|
|
|
9,148,753 |
|
|
Government of Japan, 1.900%, due 06/20/25 |
|
|
385,300,000 |
|
|
|
2,990,475 |
|
|
|
|
|
12,139,228 |
|
|
Netherlands1.30% |
|
Government of Netherlands, 5.000%, due 07/15/11 |
|
EUR |
1,165,000 |
|
|
|
1,602,786 |
|
|
Sweden3.37% |
|
Government of Sweden, 5.000%, due 01/28/09 |
|
SEK |
28,070,000 |
|
|
|
4,151,891 |
|
|
United Kingdom4.03% |
|
UK Gilts, 4.000%, due 09/07/16 |
|
GBP |
500,000 |
|
|
|
899,205 |
|
|
4.750%, due 09/07/15 |
|
|
1,475,000 |
|
|
|
2,808,575 |
|
|
4.750%, due 03/07/20 |
|
|
665,000 |
|
|
|
1,262,872 |
|
|
|
|
|
4,970,652 |
|
|
Total foreign government bonds (cost $45,006,446) |
|
|
45,459,394 |
|
|
|
|
Face amount |
|
Value |
|
Sovereign/supranational bonds6.92% |
|
Council of Europe Development Bank, 5.625%, due 12/14/15 |
|
AUD |
5,000,000 |
|
|
$ |
3,922,546 |
|
|
European Investment Bank, 5.750%, due 09/15/09 |
|
|
880,000 |
|
|
|
731,754 |
|
|
6.250%, due 04/15/14 |
|
GBP |
690,000 |
|
|
|
1,404,143 |
|
|
Inter-American Development Bank, 1.900%, due 07/08/09 |
|
JPY |
300,000,000 |
|
|
|
2,475,969 |
|
|
Total sovereign/supranational bonds (cost $8,294,490) |
|
|
8,534,412 |
|
|
Total international bonds (cost $70,321,692) |
|
|
71,282,394 |
|
|
Total bonds (cost $102,831,757) |
|
|
102,901,341 |
|
|
|
|
Shares |
|
|
|
Investment company11.29% |
|
UBS U.S. Securitized Mortgage Relationship Fund(8) (cost $13,235,380) |
|
|
1,090,494 |
|
|
|
13,913,833 |
|
|
Short-term investment4.17% |
|
Other4.17% |
|
UBS Supplementary Trust U.S. Cash Management Prime Fund, 5.37%(8),(9) (cost $5,138,362)5,138,362 |
|
|
5,138,362 |
|
|
Total investments98.94% (cost $121,205,499) |
|
|
121,953,536 |
|
|
Cash and other assets, less liabilities1.06% |
|
|
1,310,038 |
|
|
Net assets100.00% |
|
$ |
123,263,574 |
|
|
132
UBS Global Bond FundPortfolio of investments
June 30, 2007
Notes to portfolio of investments
Aggregate cost for federal income tax purposes was $121,869,750; and net unrealized appreciation consisted of:
Gross unrealized appreciation |
|
$ |
2,530,525 |
|
|
Gross unrealized depreciation |
|
|
(2,446,739 |
) |
|
Net unrealized appreciation |
|
$ |
83,786 |
|
|
(1) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid, unless otherwise noted, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2007, the value of these securities amounted to $9,691,217 or 7.86% of net assets.
(2) Floating rate securityThe interest rates shown are the current rates as of June 30, 2007.
(3) Security is illiquid. These securities amounted to $6,940,183 or 5.63% of net assets.
(4) Step bondCoupon rate increases in increments to maturity. Rate disclosed is as of June 30, 2007. Maturity date disclosed is the ultimate maturity date.
(5) Security is being fair valued by a valuation committee under the direction of the Board of Trustees. At June 30, 2007, the value of these securities amounted to $2,102,903 or 1.71% of net assets.
(6) Perpetual bond security. The maturity date reflects the next call date.
(7) This security is the equity tranche of a collateralized debt obligation. The Fund receives periodic payments, which may vary, from the issuer of this security.
(8) Investment in affiliated mutual fund.
(9) The rate shown reflects the yield at June 30, 2007.
CBO Collateralized bond obligations
CDO Collateralized debt obligations
CLO Collateralized loan obligations
CPI Consumer price index
GMAC General Motors Acceptance Corp.
GSAMP Goldman Sachs Mortgage Securities Corp.
TIPS Treasury inflation protected securities
Currency type abbreviations:
AUD Australian Dollar
CAD Canadian Dollar
EUR Euro
GBP Great Britain Pound
JPY Japanese Yen
SEK Swedish Krona
133
UBS Global Bond FundPortfolio of investments
June 30, 2007
Restricted securities
Securities |
|
Acquisition dates |
|
Acquisition cost |
|
Acquisition cost as a percentage of net assets |
|
06/30/2007 Market value |
|
06/30/2007 Market value as a percentage of net assets |
|
Ares VR CLO Ltd., Series 06-1A, Class D, 7.260%, due 02/24/18 |
|
02/16/06 |
|
$ |
139,300 |
|
|
|
0.12 |
% |
|
$ |
133,980 |
|
|
|
0.11 |
% |
|
Black Diamond CLO Ltd., Series 06-1A, Class D, 6.741%, due 04/29/19 |
|
12/22/06 |
|
|
250,000 |
|
|
|
0.20 |
|
|
|
242,425 |
|
|
|
0.20 |
|
|
Blackrock Senior Income Series Corp., Series 07-5A, Class SUB, due 08/13/19 |
|
06/22/07 |
|
|
100,000 |
|
|
|
0.08 |
|
|
|
100,000 |
|
|
|
0.08 |
|
|
Brentwood CLO Ltd., Series 06-1A, Class C, 6.956%, due 02/01/22 |
|
12/07/06 |
|
|
249,100 |
|
|
|
0.20 |
|
|
|
239,000 |
|
|
|
0.19 |
|
|
Commercial Industrial Finance Corp., Series 07-1A, Class A3L, 6.135%, due 05/10/21 |
|
01/26/07 |
|
|
200,000 |
|
|
|
0.16 |
|
|
|
197,060 |
|
|
|
0.16 |
|
|
Cratos CLO Ltd., Series 07-1A, Class D, 7.755%, due 05/19/21 |
|
04/30/07 |
|
|
250,000 |
|
|
|
0.20 |
|
|
|
235,000 |
|
|
|
0.19 |
|
|
Credit-Based Asset Servicing and Securitization CBO Ltd., Series 18A, Class C, 7.360%, due 03/13/47 |
|
03/06/07 |
|
|
250,000 |
|
|
|
0.20 |
|
|
|
250,000 |
|
|
|
0.20 |
|
|
Duke Funding Ltd., Series 06-11A, Class B1E, 6.286%, due 08/08/46 |
|
01/08/07 |
|
|
216,107 |
|
|
|
0.18 |
|
|
|
223,059 |
|
|
|
0.18 |
|
|
Galena CDO Ltd., Series II-AIRL, Class A1U, 6.025%, due 04/07/17 |
|
03/08/07 |
|
|
300,000 |
|
|
|
0.25 |
|
|
|
299,940 |
|
|
|
0.24 |
|
|
Global Leveraged Capital Credit Opportunity Fund, Series 06-1A, Class C, 6.358%, due 12/20/18 |
|
11/28/06 |
|
|
245,500 |
|
|
|
0.20 |
|
|
|
250,800 |
|
|
|
0.20 |
|
|
Greywolf CLO Ltd., Series 07-1A, Class D, 6.888%, due 02/18/21 |
|
12/08/06 |
|
|
250,000 |
|
|
|
0.20 |
|
|
|
234,425 |
|
|
|
0.19 |
|
|
GSC European CDO SA, Series I-RA, Class D, 5.595%, due 12/15/22 |
|
12/01/06 |
|
|
333,413 |
|
|
|
0.27 |
|
|
|
338,362 |
|
|
|
0.27 |
|
|
Gulf Stream - Sextant CLO Ltd., Series 06-1A, Class D, 6.960%, due 08/21/20 |
|
07/26/06 |
|
|
180,000 |
|
|
|
0.15 |
|
|
|
172,620 |
|
|
|
0.14 |
|
|
Series 07-1A, Class SUB, due 06/17/21 |
|
05/17/07 |
|
|
100,000 |
|
|
|
0.08 |
|
|
|
100,000 |
|
|
|
0.08 |
|
|
Halcyon Loan Investors CLO Ltd.,Series 06-1A, Class C, 6.810%, due 11/20/20 |
|
09/27/06 |
|
|
250,000 |
|
|
|
0.20 |
|
|
|
240,025 |
|
|
|
0.20 |
|
|
Hewett's Island CDO Ltd., Series 07-6A, Class D, 7.630%, due 06/09/19 |
|
05/09/07 |
|
|
247,467 |
|
|
|
0.20 |
|
|
|
247,467 |
|
|
|
0.20 |
|
|
Highland Credit Opportunities CDO Ltd., Series 06-1A, Class C, 6.206%, due 11/01/13 |
|
09/28/06 |
|
|
250,000 |
|
|
|
0.20 |
|
|
|
249,975 |
|
|
|
0.20 |
|
|
Highlander Euro CDO, Series 06-2NA, Class D, 5.810%, due 12/14/22 |
|
11/28/06 |
|
|
250,000 |
|
|
|
0.20 |
|
|
|
334,573 |
|
|
|
0.27 |
|
|
Longport Funding Ltd.,Series 07-1A, Class D, 11.598%, due 04/12/51 |
|
05/31/07 |
|
|
214,250 |
|
|
|
0.18 |
|
|
|
214,250 |
|
|
|
0.18 |
|
|
Octans CDO Ltd., Series 06-2A, Class D, 8.660%, due 11/12/51 |
|
09/20/06 |
|
|
270,000 |
|
|
|
0.22 |
|
|
|
182,235 |
|
|
|
0.15 |
|
|
Queen Street CLO, Series 06-1A, Class C1, 4.589%, due 04/15/23 |
|
12/21/06 |
|
|
323,782 |
|
|
|
0.26 |
|
|
|
335,798 |
|
|
|
0.27 |
|
|
Series 07-1A, Class F, due 08/15/24 |
|
05/18/07 |
|
|
132,413 |
|
|
|
0.11 |
|
|
|
132,638 |
|
|
|
0.11 |
|
|
Sagittarius CDO Ltd., Series 07-1A, Class C, 7.420%, due 12/10/51 |
|
02/13/07 |
|
|
250,000 |
|
|
|
0.20 |
|
|
|
225,000 |
|
|
|
0.18 |
|
|
Stanfield Veyron CLO Ltd., Series 06-1A, Class D, 6.956%, due 07/15/18 |
|
06/13/06 |
|
|
199,300 |
|
|
|
0.16 |
|
|
|
192,440 |
|
|
|
0.16 |
|
|
134
UBS Global Bond FundPortfolio of investments
June 30, 2007
Restricted securities(concluded)
Security |
|
Acquisition dates |
|
Acquisition cost |
|
Acquisition cost as a percentage of net assets |
|
06/30/2007 Market value |
|
06/30/2007 Market value as a percentage of net assets |
|
Taberna Preferred Funding Ltd., Series 06-5A, Class A3, 6.806%, due 08/05/36 |
|
05/26/06 |
|
$ |
195,000 |
|
|
|
0.16 |
% |
|
$ |
192,880 |
|
|
|
0.16 |
% |
|
Series 06-7A, Class A3L, 6.806%, due 02/05/37 |
|
09/15/06 |
|
|
319,865 |
|
|
|
0.26 |
|
|
|
317,823 |
|
|
|
0.26 |
|
|
Series 06-7A, Class B1L, 8.306%, due 02/05/37 |
|
09/15/06 |
|
|
196,000 |
|
|
|
0.16 |
|
|
|
190,000 |
|
|
|
0.15 |
|
|
Tricadia CDO Ltd., Series 05-4A, Class B1L, 8.610%, due 12/11/40 |
|
12/01/05 |
|
|
99,500 |
|
|
|
0.08 |
|
|
|
90,538 |
|
|
|
0.07 |
|
|
Valleriite CDO, Series 07-1A, Class A1EU, 4.875%, due 12/20/17 |
|
06/12/07 |
|
|
212,968 |
|
|
|
0.17 |
|
|
|
216,552 |
|
|
|
0.18 |
|
|
|
|
|
|
$ |
6,473,965 |
|
|
|
5.25 |
% |
|
$ |
6,378,865 |
|
|
|
5.17 |
% |
|
Forward foreign currency contracts
UBS Global Bond Fund had the following open forward foreign currency contracts as of June 30, 2007:
|
|
Contracts to deliver |
|
In exchange for |
|
Maturity dates |
|
Unrealized appreciation/ (depreciation) |
|
Australian Dollar |
|
|
6,030,000 |
|
|
USD |
4,973,393 |
|
|
11/05/07 |
|
$ |
(120,081 |
) |
|
Canadian Dollar |
|
|
1,175,000 |
|
|
USD |
1,101,755 |
|
|
11/05/07 |
|
|
(4,098 |
) |
|
Euro |
|
|
6,115,000 |
|
|
USD |
8,286,134 |
|
|
11/05/07 |
|
|
(22,283 |
) |
|
Great Britain Pound |
|
|
3,945,000 |
|
|
USD |
7,786,759 |
|
|
11/05/07 |
|
|
(118,714 |
) |
|
Japanese Yen |
|
|
152,507,685 |
|
|
CHF |
1,565,000 |
|
|
11/05/07 |
|
|
34,049 |
|
|
Japanese Yen |
|
|
205,300,000 |
|
|
USD |
1,702,984 |
|
|
11/05/07 |
|
|
8,501 |
|
|
United States Dollar |
|
|
5,765,604 |
|
|
CHF |
6,940,000 |
|
|
11/05/07 |
|
|
(32,676 |
) |
|
United States Dollar |
|
|
452,460 |
|
|
DKK |
2,490,000 |
|
|
11/05/07 |
|
|
1,903 |
|
|
United States Dollar |
|
|
12,368,515 |
|
|
JPY |
1,451,000,000 |
|
|
11/05/07 |
|
|
(392,408 |
) |
|
United States Dollar |
|
|
959,866 |
|
|
SGD |
1,440,000 |
|
|
11/05/07 |
|
|
(9,939 |
) |
|
United States Dollar |
|
|
2,736,019 |
|
|
TWD |
91,000,000 |
|
|
08/20/07 |
|
|
42,527 |
|
|
Net unrealized depreciation on forward foreign currency contracts |
|
$ |
(613,219 |
) |
|
Currency type abbreviations:
CHF Swiss Franc
DKK Danish Krona
JPY Japanese Yen
SGD Singapore Dollar
TWD New Taiwan Dollar
USD United States Dollar
See accompanying notes to financial statements.
135
UBS High Yield Fund
Portfolio performance
For the 12 months ended June 30, 2007, Class A shares of UBS High Yield Fund (the "Fund") returned 8.60% (Class A shares returned 3.78% after the deduction of the maximum sales charge), while Class Y shares returned 8.98%. The Fund's benchmark, the Merrill Lynch US High Yield Cash Pay Constrained Index (the "Index"), returned 11.28% over the same time period. (Class Y shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 138; please note that these returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.)
The Fund's underperformance was primarily due to issue selection. Our cautious stance hindered results in the early part of the reporting period but proved to be a sound strategy as the fiscal year unfolded.
Portfolio performance summary
What worked
Our actively managed sector strategy benefited relative performance.
The Fund began the reporting period overweight auto and suppliers relative to the Index. This position benefited relative performance as investors responded positively toward GMAC's spin-off from General Motors and restructuring news from Ford. As the fiscal year progressed, we took profits from this area to invest in more attractive opportunities, ending the period underweight automotives.
The Fund maintained a significant overweight to publishing and printing relative to the benchmark. Overall, the sector performed well given its solid fundamentals and merger and acquisition activity. Issue selection within the sector further contributed to returns.
Issue selection in gaming, as well as printing and publishing, contributed to relative returns.
Our cautious approach to the market led us to search for attractive opportunities in sectors that we consider less sensitive to changes in interest rates. This led to positive results from the Fund's holdings in gaming, and printing and publishing.
The metals sector rallied on the back of solid fundamentals and merger and acquisition activity, while cable television continued its rebound due to its stable operating environment.
What didn't work
Our defensive duration strategy hindered relative performance during the period.
In our opinion, the high yield market was overvalued during the reporting period. As a result, we implemented a more defensive strategy as the period progressed. This stance hurt relative performance over the period, but especially in the last six months as spreads (the difference between the yield paid on US Treasury bonds and higher risk securities) ground to near all-time lows and the market was, in our opinion, extremely overvalued. We believe that the combination of loose underwriting standards and a quest for yield by investors drove market returns into double digits for the fiscal year.
136
UBS High Yield Fund
The Fund also suffered from exposure to a fixed rate second-lien deal which did not perform up to expectations. This BB-rated asset-backed security suffered losses as the delinquency rate of mortgage payments increased.
In addition, the Fund had exposure to a homebuilder whose bonds did not perform well. However, the negative impact from this position was lessened somewhat when our large underweight to the sector produced positive results for the Fund.
Thomas Haag named lead portfolio manager for UBS High Yield Fund
Effective on July 1, 2007, John Penicook, the lead portfolio manager for UBS High Yield Fund, was replaced by Thomas Haag. In this role, Mr. Haag is responsible for the day-to-day management of the Fund's portfolio. Mr. Haag has access to members of the Fixed-income investment management team, each of whom is allocated a specified portion of the portfolio over which he or she has independent responsibility for research, security selection and portfolio construction. The team members also have access to additional portfolio managers and analysts within the various asset classes and markets in which the Fund invests. Mr. Haag, as lead portfolio manager and coordinator for management of the Fund, has responsibility for allocating the Fund's portfolio among the various managers and analysts, occasionally implementing trades on behalf of the team and reviewing the overall composition of the portfolio to ensure its compliance with its
stated investment objectives and strategies. Information about Mr. Haag is provided below. Thomas Haag is an Executive Director and Senior Portfolio Manager at UBS Global Asset Management since 2007.
Prior to that, Mr. Haag was a portfolio manager of fixed income at Seneca Capital Management from 2002 to 2007.
Mr. Haag has been portfolio manager of the Fund since 2007.
This letter is intended to assist shareholders in understanding how the Fund performed during the 12 months ended June 30, 2007. The views and opinions in the letter were current as of August 15, 2007. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. Mutual funds are sold by prospectus only. You should read it carefully and consider a fund's investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be
obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/globalam-us.
137
UBS High Yield Fund
Average annual total return (unaudited)
|
|
|
|
1 year ended 06/30/07 |
|
5 years ended 06/30/07 |
|
Inception(1) to 06/30/07 |
|
Before deducting |
|
Class A(2) |
|
|
8.60 |
% |
|
|
10.43 |
% |
|
|
5.66 |
% |
|
maximum sales charge |
|
Class B(3) |
|
|
7.93 |
|
|
|
9.66 |
|
|
|
7.98 |
|
|
|
|
Class C(4) |
|
|
8.05 |
|
|
|
9.91 |
|
|
|
8.23 |
|
|
|
|
Class Y(5) |
|
|
8.98 |
|
|
|
10.77 |
|
|
|
6.23 |
|
|
After deducting maximum |
|
Class A(2) |
|
|
3.78 |
|
|
|
9.42 |
|
|
|
5.09 |
|
|
sales charge |
|
Class B(3) |
|
|
2.93 |
|
|
|
9.38 |
|
|
|
7.86 |
|
|
|
|
Class C(4) |
|
|
7.30 |
|
|
|
9.91 |
|
|
|
8.23 |
|
|
Merrill Lynch US High Yield Cash Pay Constrained Index(6) |
|
|
11.28 |
|
|
|
11.22 |
|
|
|
6.33 |
|
|
The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2006 prospectuses were as follows: Class A1.37% and 1.20%; Class B2.09% and 1.95%; Class C1.86% and 1.70%; Class Y1.06% and .95%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. 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 management fees and/or to reimburse expenses to the extent necessary so the Fund's operating expenses, through the fiscal year ending June 30, 2007, do not exceed Class A1.20%; Class B1.95%; Class C1.70%; Class Y.95%. 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.
(1) Inception date of UBS High Yield Fund Class A shares is 12/31/98. Inception date of Class B and Class C shares is 11/07/01. Inception date of Class Y shares and, for purposes of this illustration, the Merrill Lynch US High Yield Cash Pay Constrained Index is 09/30/97.
(2) Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.
(3) Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.
4) Maximum contingent deferred sales charge for Class C shares is 0.75% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.
(5) The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.
(6) The Merrill Lynch US High Yield Cash Pay Constrained Index is the index of publicly placed non-convertible, coupon-bearing US domestic debt with a term to maturity of at least one year. The index is market weighted, so that larger bond issuers have a greater effect on the index's return. However, the representation of any single bond issue is restricted to a maximum of 2% of the total index.
If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectus.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
138
UBS High Yield Fund
Illustration of an assumed investment of $10,000 in Class A shares (adjusted for maximum sales
charge) and $5,000,000 in Class Y shares (unaudited)
The following two charts show the growth in the value of an investment in UBS High Yield Fund Class A shares (adjusted for 4.50% maximum sales charge) , Class Y shares, and the Merrill Lynch US High Yield Cash Pay Constrained Index, if you had invested $10,000 in Class A shares on December 31, 1998 or $5,000,000 in Class Y shares on September 30, 1997, and had reinvested all your income dividends and capital gain distributions through June 30, 2007. The performance of Class B and Class C shares will vary based upon the different inception dates, class specific expenses and sales charges. No adjustment has been made for any income taxes payable by shareholders on income dividends and capital gain distributions. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption.
UBS High Yield Fund Class A vs. Merrill Lynch US High Yield Cash Pay Constrained Index
Wealth value with dividends reinvested
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 4.50%.
UBS High Yield Fund Class Y vs. Merrill Lynch US High Yield Cash Pay Constrained Index
Wealth value with dividends reinvested
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
139
UBS High Yield Fund
Top ten fixed income holdings (unaudited)
As of June 30, 2007
|
|
Percentage of net assets |
|
US Treasury Notes, 5.125%, due 05/15/16 |
|
|
6.2 |
% |
|
Ford Motor Credit Co. LLC, 7.375%, due 10/28/09 |
|
|
2.5 |
|
|
Xerox Capital Trust I, 8.000%, due 02/01/27 |
|
|
1.6 |
|
|
Community Health Systems, Inc., 8.875%, due 07/15/15 |
|
|
1.5 |
|
|
AK Steel Corp., 7.750%, due 06/15/12 |
|
|
1.5 |
|
|
Citizens Communications Co., 9.000%, due 08/15/31 |
|
|
1.5 |
|
|
General Motors Corp., 7.200%, due 01/15/11 |
|
|
1.4 |
|
|
ArvinMeritor, Inc., 8.125%, due 09/15/15 |
|
|
1.4 |
|
|
GMAC LLC, 7.250%, due 03/02/11 |
|
|
1.4 |
|
|
Deluxe Corp., 5.000%, due 12/15/12 |
|
|
1.4 |
|
|
Total |
|
|
20.4 |
% |
|
140
UBS High Yield Fund
Industry diversification (unaudited)
As a percentage of net assets as of June 30, 2007
Bonds US bonds US corporate bonds |
|
Aerospace/defense |
|
|
1.88 |
% |
|
Apparel/textiles |
|
|
1.04 |
|
|
Automotive |
|
|
3.47 |
|
|
Broadcasting |
|
|
4.21 |
|
|
Building materials |
|
|
2.64 |
|
|
Cable |
|
|
3.13 |
|
|
Capital goods |
|
|
0.51 |
|
|
Chemicals |
|
|
1.47 |
|
|
Consumer products |
|
|
2.99 |
|
|
Containers |
|
|
1.13 |
|
|
Diversified financial services |
|
|
3.90 |
|
|
Diversified media |
|
|
1.04 |
|
|
Energy |
|
|
4.00 |
|
|
Food & drug retailers |
|
|
1.63 |
|
|
Food/beverage/tobacco |
|
|
2.42 |
|
|
Gaming |
|
|
7.76 |
|
|
Healthcare |
|
|
3.40 |
|
|
Homebuilders/real estate |
|
|
0.36 |
|
|
Metals/mining |
|
|
1.99 |
|
|
Non-food & drug retailers |
|
|
1.16 |
|
|
Paper |
|
|
3.20 |
|
|
Printing & publishing |
|
|
5.74 |
|
|
Railroads |
|
|
0.70 |
|
|
Restaurants |
|
|
1.29 |
|
|
Services |
|
|
1.46 |
|
|
Steel |
|
|
2.30 |
|
|
Technology |
|
|
5.96 |
|
|
Telecommunications |
|
|
5.03 |
|
|
Transportation ex. air/rail |
|
|
0.71 |
|
|
Utilities |
|
|
3.81 |
|
|
Total US corporate bonds |
|
|
80.33 |
|
|
Asset-backed security |
|
|
0.00 |
(1) |
|
US government obligation |
|
|
6.16 |
|
|
Total US bonds |
|
|
86.49 |
|
|
International bonds International corporate bonds |
|
Capital goods |
|
|
0.96 |
% |
|
Chemicals |
|
|
1.13 |
|
|
Containers |
|
|
0.94 |
|
|
Energy |
|
|
1.20 |
|
|
Gaming |
|
|
0.14 |
|
|
Paper |
|
|
3.63 |
|
|
Printing & publishing |
|
|
1.05 |
|
|
Technology |
|
|
0.28 |
|
|
Telecommunications |
|
|
1.11 |
|
|
Total international corporate bonds |
|
|
10.44 |
|
|
Total bonds |
|
|
96.93 |
|
|
Equities |
|
|
0.00 |
|
|
Warrants |
|
|
0.00 |
|
|
Short-term investment |
|
|
3.60 |
|
|
Total investments |
|
|
100.53 |
|
|
Liabilities, in excess of cash and other assets |
|
|
(0.53 |
) |
|
Net assets |
|
|
100.00 |
% |
|
(1) Amount represents less than 0.005%.
141
UBS High Yield FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds96.93% |
|
US bonds86.49% |
|
US corporate bonds80.33% |
|
AAC Group Holding Corp., 0.000%, due 10/01/12(1) |
|
$ |
1,100,000 |
|
|
$ |
990,000 |
|
|
Activant Solutions, Inc., 9.500%, due 05/01/16 |
|
|
200,000 |
|
|
|
196,500 |
|
|
AES Corp., 8.875%, due 02/15/11 |
|
|
500,000 |
|
|
|
526,875 |
|
|
Affinion Group, Inc., 10.125%, due 10/15/13 |
|
|
650,000 |
|
|
|
693,875 |
|
|
Ahern Rentals, Inc., 9.250%, due 08/15/13 |
|
|
775,000 |
|
|
|
784,687 |
|
|
Ainsworth Lumber Co., Ltd., 7.250%, due 10/01/12 |
|
|
285,000 |
|
|
|
219,450 |
|
|
AK Steel Corp., 7.750%, due 06/15/12 |
|
|
1,600,000 |
|
|
|
1,600,000 |
|
|
American Cellular Corp., Series B, 10.000%, due 08/01/11 |
|
|
301,000 |
|
|
|
315,298 |
|
|
American Rock Salt Co. LLC, 9.500%, due 03/15/14 |
|
|
900,000 |
|
|
|
910,125 |
|
|
AmeriQual Group LLC, 9.500%, due 04/01/12(2) |
|
|
1,000,000 |
|
|
|
1,000,000 |
|
|
Aramark Corp., 8.856%, due 02/01/15(2),(3) |
|
|
500,000 |
|
|
|
507,500 |
|
|
ArvinMeritor, Inc., 8.125%, due 09/15/15 |
|
|
1,550,000 |
|
|
|
1,501,562 |
|
|
Ashtead Capital, Inc., 9.000%, due 08/15/16(2) |
|
|
250,000 |
|
|
|
261,875 |
|
|
Atlas Pipeline Partners LP, 8.125%, due 12/15/15 |
|
|
900,000 |
|
|
|
897,750 |
|
|
Baker & Taylor, Inc., 11.500%, due 07/01/13(2) |
|
|
400,000 |
|
|
|
418,000 |
|
|
Boise Cascade LLC, 7.125%, due 10/15/14 |
|
|
620,000 |
|
|
|
589,000 |
|
|
Brookstone Co., Inc., 12.000%, due 10/15/12 |
|
|
275,000 |
|
|
|
281,875 |
|
|
Buckeye Technologies, Inc., 8.000%, due 10/15/10 |
|
|
1,050,000 |
|
|
|
1,050,000 |
|
|
Cadmus Communications Corp., 8.375%, due 06/15/14 |
|
|
1,200,000 |
|
|
|
1,212,000 |
|
|
Caesars Entertainment, Inc., 8.125%, due 05/15/11 |
|
|
550,000 |
|
|
|
574,063 |
|
|
Carriage Services, Inc., 7.875%, due 01/15/15 |
|
|
465,000 |
|
|
|
470,813 |
|
|
Cellu Tissue Holdings, Inc., 9.750%, due 03/15/10 |
|
|
1,050,000 |
|
|
|
1,042,125 |
|
|
Century Aluminum Co., 7.500%, due 08/15/14 |
|
|
725,000 |
|
|
|
731,344 |
|
|
Cenveo Corp., 7.875%, due 12/01/13 |
|
|
700,000 |
|
|
|
686,000 |
|
|
Chukchansi Economic Development Authority, 8.000%, due 11/15/13(2) |
|
|
550,000 |
|
|
|
561,000 |
|
|
Cincinnati Bell, Inc., 8.375%, due 01/15/14 |
|
|
1,000,000 |
|
|
|
1,010,000 |
|
|
|
|
Face amount |
|
Value |
|
US corporate bonds(continued) |
|
Circus & Eldorado Joint Venture Corp., 10.125%, due 03/01/12 |
|
$ |
500,000 |
|
|
$ |
523,125 |
|
|
Citizens Communications Co., 9.000%, due 08/15/31 |
|
|
1,525,000 |
|
|
|
1,570,750 |
|
|
CMP Susquehanna Corp., 10.125%, due 05/15/14(2) |
|
|
625,000 |
|
|
|
625,000 |
|
|
Coleman Cable, Inc., 9.875%, due 10/01/12(2) |
|
|
450,000 |
|
|
|
470,250 |
|
|
Community Health Systems, Inc., 8.875%, due 07/15/15(2) |
|
|
1,600,000 |
|
|
|
1,622,000 |
|
|
Comstock Resources, Inc., 6.875%, due 03/01/12 |
|
|
500,000 |
|
|
|
477,500 |
|
|
CPG International I, Inc., 12.130%, due 07/01/12(3) |
|
|
800,000 |
|
|
|
820,000 |
|
|
CSC Holdings, Inc., Series B, 7.625%, due 04/01/11 |
|
|
500,000 |
|
|
|
496,250 |
|
|
Series B, 8.125%, due 08/15/09 |
|
|
875,000 |
|
|
|
892,500 |
|
|
Da-Lite Screen Co., Inc., 9.500%, due 05/15/11 |
|
|
650,000 |
|
|
|
682,500 |
|
|
Deluxe Corp., 5.000%, due 12/15/12 |
|
|
1,625,000 |
|
|
|
1,462,500 |
|
|
7.375%, due 06/01/15(2) |
|
|
150,000 |
|
|
|
149,250 |
|
|
Dole Food Co., Inc., 8.875%, due 03/15/11 |
|
|
1,025,000 |
|
|
|
1,009,625 |
|
|
Dycom Industries, Inc., 8.125%, due 10/15/15 |
|
|
350,000 |
|
|
|
364,000 |
|
|
Dynegy Holdings, Inc., 8.375%, due 05/01/16 |
|
|
775,000 |
|
|
|
757,562 |
|
|
Easton-Bell Sports, Inc., 8.375%, due 10/01/12 |
|
|
750,000 |
|
|
|
738,750 |
|
|
Esterline Technologies Corp., 6.625%, due 03/01/17(2) |
|
|
900,000 |
|
|
|
868,500 |
|
|
Ford Motor Credit Co. LLC, 7.375%, due 10/28/09 |
|
|
2,700,000 |
|
|
|
2,680,171 |
|
|
Freeport-McMoRan Copper & Gold, Inc., 8.375%, due 04/01/17 |
|
|
800,000 |
|
|
|
854,000 |
|
|
Freescale Semiconductor, Inc., 8.875%, due 12/15/14(2) |
|
|
1,075,000 |
|
|
|
1,026,625 |
|
|
10.125%, due 12/15/16(2) |
|
|
350,000 |
|
|
|
329,000 |
|
|
General Motors Corp., 7.200%, due 01/15/11 |
|
|
1,600,000 |
|
|
|
1,538,000 |
|
|
Giant Industries, Inc., 11.000%, due 05/15/12 |
|
|
606,000 |
|
|
|
639,330 |
|
|
Glatfelter, 7.125%, due 05/01/16 |
|
|
200,000 |
|
|
|
201,500 |
|
|
GMAC LLC, 7.250%, due 03/02/11 |
|
|
1,475,000 |
|
|
|
1,470,163 |
|
|
Gulfmark Offshore, Inc., 7.750%, due 07/15/14 |
|
|
750,000 |
|
|
|
757,500 |
|
|
Harland Clarke Holdings Corp., 9.500%, due 05/15/15(2) |
|
|
450,000 |
|
|
|
432,000 |
|
|
Hawker Beechcraft Acquisition Co LLC, 8.500%, due 04/01/15(2) |
|
|
250,000 |
|
|
|
258,125 |
|
|
142
UBS High Yield FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
US bonds(continued) |
|
US corporate bonds(continued) |
|
HCA, Inc., 9.125%, due 11/15/14(2) |
|
$ |
250,000 |
|
|
$ |
262,813 |
|
|
9.250%, due 11/15/16(2) |
|
|
250,000 |
|
|
|
266,250 |
|
|
Hercules, Inc., 6.500%, due 06/30/29 |
|
|
375,000 |
|
|
|
315,000 |
|
|
Inergy LP/ Inergy Finance Corp., 8.250%, due 03/01/16 |
|
|
875,000 |
|
|
|
899,062 |
|
|
Ingles Markets, Inc., 8.875%, due 12/01/11 |
|
|
1,175,000 |
|
|
|
1,217,594 |
|
|
Insight Communications Co. Inc., 12.250%, due 02/15/11(1) |
|
|
625,000 |
|
|
|
653,125 |
|
|
Interface, Inc., 10.375%, due 02/01/10 |
|
|
900,000 |
|
|
|
967,500 |
|
|
Jacobs Entertainment, Inc., 9.750%, due 06/15/14 |
|
|
1,100,000 |
|
|
|
1,142,625 |
|
|
Jefferson Smurfit Corp., 8.250%, due 10/01/12 |
|
|
500,000 |
|
|
|
496,250 |
|
|
Kansas City Southern Railway Co., 7.500%, due 06/15/09 |
|
|
750,000 |
|
|
|
744,375 |
|
|
Landry's Restaurants, Inc., Series B, 7.500%, due 12/15/14 |
|
|
900,000 |
|
|
|
873,000 |
|
|
Levi Strauss & Co., 12.250%, due 12/15/12 |
|
|
1,025,000 |
|
|
|
1,109,562 |
|
|
LIN Television Corp., Series B, 6.500%, due 05/15/13 |
|
|
1,175,000 |
|
|
|
1,148,562 |
|
|
Mediacom LLC, 9.500%, due 01/15/13 |
|
|
1,265,000 |
|
|
|
1,293,462 |
|
|
Mirant Americas Generation LLC, 8.300%, due 05/01/11 |
|
|
250,000 |
|
|
|
258,125 |
|
|
9.125%, due 05/01/31 |
|
|
500,000 |
|
|
|
547,500 |
|
|
Mirant North America LLC, 7.375%, due 12/31/13 |
|
|
1,150,000 |
|
|
|
1,175,875 |
|
|
Momentive Performance Materials, Inc., 9.750%, due 12/01/14(2) |
|
|
275,000 |
|
|
|
277,750 |
|
|
MTR Gaming Group, Inc., Series B, 9.000%, due 06/01/12 |
|
|
425,000 |
|
|
|
447,313 |
|
|
Series B, 9.750%, due 04/01/10 |
|
|
750,000 |
|
|
|
780,000 |
|
|
Neenah Foundary Co., 9.500%, due 01/01/17 |
|
|
500,000 |
|
|
|
480,000 |
|
|
Nexstar Finance Holdings LLC, 0.000%, due 04/01/13(1) |
|
|
500,000 |
|
|
|
491,250 |
|
|
Nexstar Finance, Inc., 7.000%, due 01/15/14 |
|
|
500,000 |
|
|
|
495,000 |
|
|
NRG Energy, Inc., 7.375%, due 02/01/16 |
|
|
400,000 |
|
|
|
401,000 |
|
|
7.375%, due 01/15/17 |
|
|
650,000 |
|
|
|
652,438 |
|
|
Owens-Illinois, Inc., 7.500%, due 05/15/10 |
|
|
700,000 |
|
|
|
706,125 |
|
|
Pantry, Inc., 7.750%, due 02/15/14 |
|
|
975,000 |
|
|
|
950,625 |
|
|
Pathmark Stores, Inc., 8.750%, due 02/01/12 |
|
|
500,000 |
|
|
|
515,000 |
|
|
|
|
Face amount |
|
Value |
|
US corporate bonds(continued) |
|
Pokagon Gaming Authority, 10.375%, due 06/15/14(2) |
|
$ |
700,000 |
|
|
$ |
771,750 |
|
|
PolyOne Corp., 10.625%, due 05/15/10 |
|
|
468,000 |
|
|
|
491,400 |
|
|
Prestige Brands, Inc., 9.250%, due 04/15/12 |
|
|
750,000 |
|
|
|
768,750 |
|
|
Psychiatric Solutions, Inc., 7.750%, due 07/15/15 |
|
|
750,000 |
|
|
|
741,563 |
|
|
Qwest Communications International, Inc., 7.250%, due 02/15/11 |
|
|
1,050,000 |
|
|
|
1,057,875 |
|
|
Qwest Corp., 8.875%, due 03/15/12 |
|
|
350,000 |
|
|
|
377,125 |
|
|
R.H. Donnelley Corp., Series A, 8.875%, due 01/15/16 |
|
|
1,000,000 |
|
|
|
1,040,000 |
|
|
Realogy Corp., 10.500%, due 04/15/14(2) |
|
|
400,000 |
|
|
|
381,000 |
|
|
Restaurant Co., 10.000%, due 10/01/13 |
|
|
525,000 |
|
|
|
502,688 |
|
|
Reynolds American, Inc., 7.250%, due 06/01/13 |
|
|
550,000 |
|
|
|
570,897 |
|
|
River Rock Entertainment Authority, 9.750%, due 11/01/11 |
|
|
650,000 |
|
|
|
682,500 |
|
|
San Pasqual Casino, 8.000%, due 09/15/13(2) |
|
|
750,000 |
|
|
|
757,500 |
|
|
Sanmina-SCI Corp., 8.110%, due 06/15/14(2),(3) |
|
|
975,000 |
|
|
|
975,000 |
|
|
8.125%, due 03/01/16 |
|
|
750,000 |
|
|
|
697,500 |
|
|
Sequa Corp., 9.000%, due 08/01/09 |
|
|
850,000 |
|
|
|
877,625 |
|
|
Sheridan Group, Inc., 10.250%, due 08/15/11 |
|
|
975,000 |
|
|
|
1,023,750 |
|
|
Sinclair Broadcast Group, Inc., 8.000%, due 03/15/12 |
|
|
519,000 |
|
|
|
534,570 |
|
|
Stanadyne Corp., 10.000%, due 08/15/14 |
|
|
625,000 |
|
|
|
660,938 |
|
|
Terra Capital, Inc., Series B, 7.000%, due 02/01/17 |
|
|
500,000 |
|
|
|
482,500 |
|
|
Tube City IMS Corp., 9.750%, due 02/01/15(2) |
|
|
525,000 |
|
|
|
538,125 |
|
|
Tunica-Biloxi Gaming Authority, 9.000%, due 11/15/15(2) |
|
|
700,000 |
|
|
|
731,500 |
|
|
Unisys Corp., 8.000%, due 10/15/12 |
|
|
650,000 |
|
|
|
632,125 |
|
|
Universal Hospital Services, Inc., 8.500%, due 06/01/15(2),(4) |
|
|
130,000 |
|
|
|
128,700 |
|
|
8.759%, due 06/01/15(2),(3) |
|
|
130,000 |
|
|
|
130,000 |
|
|
Univision Communications, Inc., 7.850%, due 07/15/11 |
|
|
295,000 |
|
|
|
303,850 |
|
|
9.750%, due 03/15/15(2),(4) |
|
|
900,000 |
|
|
|
888,750 |
|
|
US Concrete, Inc., 8.375%, due 04/01/14 |
|
|
550,000 |
|
|
|
548,625 |
|
|
Verso Paper Holdings LLC, 9.125%, due 08/01/14(2) |
|
|
300,000 |
|
|
|
309,750 |
|
|
143
UBS High Yield FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(concluded) |
|
US bonds(concluded) |
|
US corporate bonds(concluded) |
|
Vertis, Inc., Series B, 10.875%, due 06/15/09 |
|
$ |
550,000 |
|
|
$ |
539,000 |
|
|
Wheeling Island Gaming, Inc., 10.125%, due 12/15/09 |
|
|
1,275,000 |
|
|
|
1,290,937 |
|
|
Whiting Petroleum Corp., 7.250%, due 05/01/12 |
|
|
1,150,000 |
|
|
|
1,092,500 |
|
|
Wind Acquisition Finance SA, 10.750%, due 12/01/15(2) |
|
|
500,000 |
|
|
|
573,750 |
|
|
Windstream Corp., 8.625%, due 08/01/16 |
|
|
425,000 |
|
|
|
449,438 |
|
|
Xerox Capital Trust I, 8.000%, due 02/01/27 |
|
|
1,650,000 |
|
|
|
1,693,911 |
|
|
Total US corporate bonds (cost $85,057,072) |
|
|
85,561,266 |
|
|
Asset-backed security0.00%(5) |
|
GSAMP Trust, Series 06-S2, Class B2, 7.000%, due 01/25/36(1),(2),(6) (cost $58,009) |
|
|
71,576 |
|
|
|
716 |
|
|
US government obligation6.16% |
|
US Treasury Notes, 5.125%, due 05/15/16 (cost $6,616,756) |
|
|
6,525,000 |
|
|
|
6,561,703 |
|
|
Total US bonds (cost $91,731,837) |
|
|
92,123,685 |
|
|
International bonds10.44% |
|
International corporate bonds10.44% |
|
Bermuda1.42% |
|
Intelsat Subsidiary Holding Co., Ltd., 8.625%, due 01/15/15 |
|
|
1,150,000 |
|
|
|
1,178,749 |
|
|
Petroplus Finance Ltd., 6.750%, due 05/01/14(2) |
|
|
175,000 |
|
|
|
168,438 |
|
|
7.000%, due 05/01/17(2) |
|
|
175,000 |
|
|
|
168,438 |
|
|
|
|
|
1,515,625 |
|
|
Canada5.78% |
|
Abitibi-Consolidated, Inc., 6.950%, due 04/01/08 |
|
|
1,025,000 |
|
|
|
1,014,750 |
|
|
8.550%, due 08/01/10 |
|
|
800,000 |
|
|
|
764,000 |
|
|
Bowater Canada Finance Corp., 7.950%, due 11/15/11 |
|
|
1,300,000 |
|
|
|
1,223,625 |
|
|
Great Canadian Gaming Corp., 7.250%, due 02/15/15(2) |
|
|
150,000 |
|
|
|
149,250 |
|
|
Millar Western Forest Products Ltd., 7.750%, due 11/15/13 |
|
|
1,000,000 |
|
|
|
861,250 |
|
|
Quebecor World Capital Corp., 8.750%, due 03/15/16(2) |
|
|
1,150,000 |
|
|
|
1,132,750 |
|
|
Stone Container Finance, 7.375%, due 07/15/14 |
|
|
1,050,000 |
|
|
|
1,008,000 |
|
|
|
|
|
6,153,625 |
|
|
|
|
Face amount |
|
Value |
|
Cayman Islands0.88% |
|
Bluewater Finance Ltd., 10.250%, due 02/15/12 |
|
$ |
900,000 |
|
|
$ |
938,250 |
|
|
Netherlands1.81% |
|
Clondalkin Acquisition BV, 7.359%, due 12/15/13(2),(3) |
|
|
780,000 |
|
|
|
778,050 |
|
|
Montell Finance Co. BV, 8.100%, due 03/15/27(2) |
|
|
675,000 |
|
|
|
614,250 |
|
|
NXP BV/NXP Funding LLC, 7.875%, due 10/15/14 |
|
|
300,000 |
|
|
|
295,500 |
|
|
Sensata Technologies BV 8.000%, due 05/01/14 |
|
|
250,000 |
|
|
|
241,250 |
|
|
|
|
|
1,929,050 |
|
|
United Kingdom0.55% |
|
Ineos Group Holdings PLC, 8.500%, due 02/15/16(2) |
|
|
600,000 |
|
|
|
586,500 |
|
|
Total international corporate bonds (cost $11,360,594) |
|
|
11,123,050 |
|
|
Total bonds (cost $103,092,431) |
|
|
103,246,735 |
|
|
|
|
Shares |
|
|
|
Equities0.00% |
|
US equities0.00% |
|
Aerospace & defense0.00% |
|
Sabreliner Corp.*(6),(7) |
|
|
8,400 |
|
|
|
0 |
|
|
Hotels, restaurants & leisure0.00% |
|
American Restaurant Group, Inc.*(6),(7) |
|
|
972 |
|
|
|
0 |
|
|
Total US equities (cost $153,000) |
|
|
0 |
|
|
|
|
Number of warrants |
|
|
|
Warrants0.00% |
|
Dayton Superior Corp., expires 06/15/09*(2),(6),(7) |
|
|
225 |
|
|
|
0 |
|
|
Knology, Inc., expires 10/15/07*(2),(6),(7) |
|
|
16,995 |
|
|
|
0 |
|
|
Pathnet, Inc., expires 04/15/08*(6),(7) |
|
|
6,275 |
|
|
|
0 |
|
|
Pliant Corp., expires 06/01/10*(2),(6),(7) |
|
|
1 |
|
|
|
0 |
|
|
Total warrants (cost $10) |
|
|
0 |
|
|
144
UBS High Yield FundPortfolio of investments
June 30, 2007
|
|
Shares |
|
Value |
|
Short-term investment3.60% |
|
Other3.60% |
|
UBS Supplementary Trust U.S. Cash Management Prime Fund, 5.37%(8),(9) (cost $3,832,781) |
|
|
3,832,781 |
|
|
$ |
3,832,781 |
|
|
Total investments100.53% (cost $107,078,222)* |
|
|
107,079,516 |
|
|
Liabilities, in excess of cash and other assets(0.53)% |
|
|
(565,170 |
) |
|
Net assets100.00% |
|
$ |
106,514,346 |
|
|
Notes to portfolio of investments
Aggregate cost for federal income tax purposes was $107,084,610; and net unrealized depreciation consisted of:
Gross unrealized appreciation |
|
$ |
1,406,619 |
|
|
Gross unrealized depreciation |
|
|
(1,411,713 |
) |
|
Net unrealized depreciation |
|
$ |
(5,094 |
) |
|
* Non-income producing security.
(1) Step bondCoupon rate increases in increments to maturity. Rate disclosed is as of June 30, 2007. Maturity date disclosed is the ultimate maturity date.
(2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid, unless otherwise noted, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2007, the value of these securities amounted to $19,120,155 or 17.95% of net assets.
(3) Floating rate securityThe interest rate shown is the current rate as of June 30, 2007.
(4) PIKPayment-in-kind security. Income may be paid in cash or additional notes, at the discretion of the issuer.
(5) Amount represents less than 0.005%.
(6) Security is illiquid. At June 30, 2007, the value of these securities amounted to $716 or 0.00% of net assets.
(7) Security is being fair valued by a valuation committee under the direction of the Board of Trustees. At June 30, 2007, the value of these securities amounted to $0 or 0.00% of net assets.
(8) Investment in affiliated mutual fund.
(9) The rate shown reflects the yield at June 30, 2007.
GMAC General Motors Acceptance Corp.
GSAMP Goldman Sachs Mortgage Securities Corp.
Restricted securities
Securities |
|
Acquisition dates |
|
Acquisition cost |
|
Acquisition cost as a percentage of net assets |
|
06/30/07 Market value |
|
06/30/07 Market value as a percentage of net assets |
|
Dayton Superior Corp., expires 06/15/09 |
|
08/07/00 |
|
$ |
0 |
|
|
|
0.00 |
% |
|
$ |
0 |
|
|
|
0.00 |
% |
|
GSAMP Trust, 7.000%, due 01/25/36 |
|
04/10/06 |
|
|
57,887 |
|
|
|
0.05 |
|
|
|
716 |
|
|
|
0.00 |
(1) |
|
Knology, Inc., expires 10/15/07 |
|
06/08/98 |
|
|
0 |
|
|
|
0.00 |
|
|
|
0 |
|
|
|
0.00 |
|
|
Pliant Corp., expires 06/01/10 |
|
10/20/00 |
|
|
0 |
|
|
|
0.00 |
|
|
|
0 |
|
|
|
0.00 |
|
|
|
|
|
|
$ |
57,887 |
|
|
|
0.05 |
% |
|
$ |
716 |
|
|
|
0.00 |
% |
|
(1) Amount represents less than 0.005%.
See accompanying notes to financial statements.
145
UBS U.S. Bond Fund
Portfolio performance
For the 12 months ended June 30, 2007, Class A shares of UBS U.S. Bond Fund (the "Fund") returned 5.39% (Class A shares returned 0.69% after the deduction of the maximum sales charge), while Class Y shares returned 5.76%. The Fund's benchmark, the Lehman Brothers US Aggregate Bond Index (the "Index"), returned 6.12% over the same time period. (Class Y shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 148; please note that these returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.)
The Fund's underperformance was primarily due to issue selection in the asset-backed securities sector.
Portfolio performance summary
What worked
Issue selection in mortgage-backed securities and investment grade corporate bonds contributed to the Fund's relative performance.
The Fund was underweight the mortgage-backed sector overall, in particular avoiding generic mortgage bonds (30-year fixed rate with 5.0% and 5.5% coupons). Instead, we focused on securities that we believed had better characteristics, including 15-year seasoned (2003 and earlier) mortgage bonds and hybrid adjustable-rate mortgages (ARMs).
Hybrid ARMs offer a blend of fixed rate and adjustable rate characteristics in one single loan; for example, a 5/1 hybrid ARM would refer to a 5-year fixed period and a subsequent 1-year rate adjustment. Among ARMs, we found value in "last cash flow" hybrid ARMS, 5/1 and 7/1 hybrid ARMs and subordinated fixed-rate and hybrid ARMs.
Within investment grade corporate bonds, we favored shorter-dated maturities, targeting bonds in the three- to seven-year area of the yield curve. We anticipate maintaining this position for the near-term, as we believe we would not be appropriately compensated for taking general market risk.
Sector allocation strategy added to the Fund's relative performance, due primarily to positioning in the securitized sectors.
An overweight exposure to commercial mortgage-backed securities (CMBS) and an underweight exposure to mortgage-backed securities (MBS), driven by security selection in these areas, helped the Fund's relative performance. Within CMBS and asset-backed securities (ABS), the Fund held a slightly longer-than-Index duration, paying particular attention to the five- to seven-year fixed-rate CMBS.
The Fund's underweight to spread sectors also enhanced relative performance, including a less-than-Index exposure to corporate bonds. Corporate bonds represented one of the Fund's largest sector underweights, as we continued to believe the market was not appropriately compensating investors for the associated risk. As credit spreads widened in June, the Fund's underweight positions to spread sectors contributed to performance.
The Fund's defensive duration strategy versus the benchmark produced flat results over the 12-month period.
146
UBS U.S. Bond Fund
Conflicting economic data and shifting investor sentiment led us to maintain a defensive duration strategy for much of the reporting period. A defensive strategy entails holding a shorter-then-Index duration so that the portfolio is less sensitive to increasing interest rates (which drive bond prices down).
Our strategy hindered relative returns early in the reporting cycle, as well as during the flight to quality in February 2007 that was triggered by the unexpected selloff in Chinese equities. However, beginning in March, US Treasury yields started recovering, and then further accelerated in May and June. This contributed to performance given our shorter-than-benchmark duration. We have since extended the Fund's duration, ending the Fund's fiscal year in line with the Index. This neutral position reflects our current belief that market sentiment and pricing have moved within our fair value estimates.
An opportunistic allocation to emerging markets debt produced positive results over the period, driven by strong economic growth in Latin American, Eastern European and Asian countries, including Argentina, Turkey and Mexico.
What didn't work
Issue selection in ABS detracted from performance. While we avoided direct investments in subprime securities, the Fund's performance was hurt by disappointing returns from its investment in the Alt-A market. Alt-A loans are designed for people with good credit, who want to borrow without verifying their income. In the wake of the deterioration of the subprime market, the Alt-A market came under scrutiny as concerns were raised about the creditworthiness of borrowers and the standards of the lenders of these securities. Even higher-quality home equity ABS securities were affected as investorssurprised by the number and magnitude of defaults in the subprime mortgage marketgrew increasingly concerned.
Investors were surprised by the number and magnitude of defaults in the subprime mortgage market. They responded by pulling out of subprime and related areas that they considered to be of lower quality. In particular, the Fund's performance was hurt by disappointing returns from our investments in the Alt-A market. Alt-A loans are not subprime mortgages; they are loans designed for people with good credit who wanted to borrow without verifying their income. The Alt-A market has grown dramatically in recent years, raising concerns about the creditworthiness of borrowers and the standards of the lenders.
The portfolio's allocation to high yield securities detracted slightly from the Fund's return. In our opinion, the high yield market was overvalued, so we entered the period with a defensive strategy. This stance hurt relative performance in the first half of the year, when solid corporate results and a pause in the Federal Reserve Board's tightening cycle sparked a strong rally.
This letter is intended to assist shareholders in understanding how the Fund performed during the 12 months ended June 30, 2007. The views and opinions in the letter were current as of August 15, 2007. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. Mutual funds are sold by prospectus only. You should read it carefully and consider a fund's investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be
obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/globalam-us.
147
UBS U.S. Bond Fund
Average annual total return (unaudited)
|
|
|
|
1 year ended 06/30/07 |
|
5 years ended 06/30/07 |
|
10 years ended 06/30/07 |
|
Inception(1) to 06/30/07 |
|
Before deducting |
|
Class A(2) |
|
|
5.39 |
% |
|
|
4.02 |
% |
|
|
5.52 |
% |
|
|
5.52 |
% |
|
maximum sales charge |
|
Class B(3) |
|
|
4.70 |
|
|
|
3.23 |
|
|
|
N/A |
|
|
|
2.99 |
|
|
|
|
Class C(4) |
|
|
4.98 |
|
|
|
3.51 |
|
|
|
N/A |
|
|
|
3.23 |
|
|
|
|
Class Y(5) |
|
|
5.76 |
|
|
|
4.28 |
|
|
|
5.78 |
|
|
|
5.90 |
|
|
After deducting maximum |
|
Class A(2) |
|
|
0.69 |
|
|
|
3.05 |
|
|
|
5.03 |
|
|
|
5.03 |
|
|
sales charge |
|
Class B(3) |
|
|
-0.30 |
|
|
|
2.88 |
|
|
|
N/A |
|
|
|
2.84 |
|
|
|
|
Class C(4) |
|
|
4.23 |
|
|
|
3.51 |
|
|
|
N/A |
|
|
|
3.23 |
|
|
Lehman Brothers US Aggregate Bond Index(6) |
|
|
6.12 |
|
|
|
4.48 |
|
|
|
6.01 |
|
|
|
6.11 |
|
|
The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2006 prospectuses were as follows: Class A1.07% and .85%; Class B1.83% and 1.60%; Class C1.56% and 1.35%; Class Y.82% and .60%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. 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 management fees and/or to reimburse expenses to the extent necessary so the Fund's operating expenses, through the fiscal year ending June 30, 2007, do not exceed Class A.85%; Class B1.60%; Class C1.35%; Class Y.60%. 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 ye
ars 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.
(1) Inception date of UBS U.S. Bond Fund Class A shares is 06/30/97. Inception dates of Class B and Class C shares are 11/06/01 and 11/08/01, respectively. Inception date of Class Y shares and the Index is 08/31/95.
(2) Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.
(3) Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.
(4) Maximum contingent deferred sales charge for Class C shares is 0.75% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.
(5) The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.
(6) The Lehman Brothers US Aggregate Bond Index is an unmanaged index of investment grade fixed rate debt issues, including corporate, government, treasury, mortgage-backed and asset-backed securities with maturities of at least one year.
If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectus.
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
148
UBS U.S. Bond Fund
Illustration of an assumed investment of $10,000 in Class A shares (adjusted for maximum sales
charge) and $10,000,000 in Class Y shares (unaudited)
The following two charts show the growth in the value of an investment in UBS U.S. Bond Fund Class A shares (adjusted for 4.50% maximum sales charge), Class Y shares and the Lehman Brothers US Aggregate Bond Index, if you had invested $10,000 in Class A shares on June 30, 1997 or $10,000,000 in Class Y shares on August 31, 1995, and had reinvested all your income dividends and capital gain distributions through June 30, 2007. The performance of Class B and Class C shares will vary based upon the different inception dates, class specific expenses and sales charges. No adjustment has been made for any income taxes payable by shareholders on income dividends and capital gain distributions. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption.
UBS U.S. Bond Fund Class A vs. Lehman Brothers US Aggregate Bond Index
Wealth value with dividends reinvested
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 4.50%.
UBS U.S. Bond Fund Class Y vs. Lehman Brothers US Aggregate Bond Index
Wealth value with dividends reinvested
Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.
149
UBS U.S. Bond Fund
Top ten fixed income holdings (unaudited)(1)
As of June 30, 2007
|
|
Percentage of net assets |
|
US Treasury Notes, 4.500%, due 03/31/12 |
|
|
8.0 |
% |
|
US Treasury Notes, 4.625%, due 11/15/16 |
|
|
3.7 |
|
|
US Treasury Bonds, 6.250%, due 05/15/30 |
|
|
3.3 |
|
|
US Treasury Bonds, 6.250%, due 08/15/23 |
|
|
3.3 |
|
|
US Treasury Bonds, 4.750%, due 02/15/37 |
|
|
2.6 |
|
|
US Treasury Bonds, 8.750%, due 05/15/17 |
|
|
2.4 |
|
|
Federal National Mortgage Association, 5.500%, due 03/15/11 |
|
|
1.4 |
|
|
Ford Motor Credit Co. LLC, 5.800%, due 01/12/09 |
|
|
1.2 |
|
|
Long Beach Mortgage Loan Trust, Series 06-A, Class A1, 5.410%, due 05/25/36 |
|
|
1.0 |
|
|
US Treasury Notes, 4.750%, due 12/31/08 |
|
|
0.8 |
|
|
Total |
|
|
27.7 |
% |
|
(1) Figures represent the direct investments of the UBS U.S. Bond Fund. Figures could be different if a breakdown of the underlying investment companies was included.
150
UBS U.S. Bond Fund
Industry diversification (unaudited)(1)
As a percentage of net assets as of June 30, 2007
Bonds US bonds US corporate bonds |
|
Automobiles |
|
|
0.27 |
% |
|
Beverages |
|
|
0.07 |
|
|
Capital markets |
|
|
0.63 |
|
|
Chemicals |
|
|
0.11 |
|
|
Commercial banks |
|
|
0.89 |
|
|
Commercial services & supplies |
|
|
0.05 |
|
|
Consumer finance |
|
|
1.90 |
|
|
Diversified financial services |
|
|
1.66 |
|
|
Diversified telecommunication services |
|
|
0.32 |
|
|
Electric utilities |
|
|
0.16 |
|
|
Insurance |
|
|
0.07 |
|
|
IT services |
|
|
0.08 |
|
|
Media |
|
|
0.23 |
|
|
Multi-utilities |
|
|
0.06 |
|
|
Oil, gas & consumable fuels |
|
|
0.14 |
|
|
Personal products |
|
|
0.08 |
|
|
Pharmaceuticals |
|
|
0.09 |
|
|
Real estate investment trusts (REITs) |
|
|
0.05 |
|
|
Road & rail |
|
|
0.23 |
|
|
Wireless telecommunication services |
|
|
0.08 |
|
|
Total US corporate bonds |
|
|
7.17 |
|
|
Asset-backed securities |
|
|
2.67 |
|
|
Collateralized debt obligation |
|
|
0.20 |
|
|
Commercial mortgage-backed securities |
|
|
4.37 |
|
|
Mortgage & agency debt securities |
|
|
19.74 |
|
|
Stripped mortgage-backed security |
|
|
0.00 |
(2) |
|
US government obligations |
|
|
24.19 |
|
|
Total US bonds |
|
|
58.34 |
|
|
International bonds |
|
Foreign government bond |
|
|
0.43 |
|
|
International corporate bonds |
|
Commercial banks |
|
|
0.11 |
% |
|
Diversified telecommunication services |
|
|
0.06 |
|
|
Total international corporate bonds |
|
|
0.17 |
|
|
Total international bonds |
|
|
0.60 |
|
|
Total bonds |
|
|
58.94 |
|
|
Investment companies |
|
UBS Corporate Bond Relationship Fund |
|
|
1.63 |
|
|
UBS Opportunistic Emerging Markets Debt Relationship Fund |
|
|
2.07 |
|
|
UBS Opportunistic High Yield Relationship Fund |
|
|
6.61 |
|
|
UBS U.S. Securitized Mortgage Relationship Fund |
|
|
27.47 |
|
|
Total investment companies |
|
|
37.78 |
|
|
Short-term investments |
|
|
2.47 |
|
|
Options purchased |
|
|
0.41 |
|
|
Total investments |
|
|
99.60 |
|
|
Cash and other assets, less liabilities |
|
|
0.40 |
|
|
Net assets |
|
|
100.00 |
% |
|
(1) Figures represent the industry breakdown of direct investments of the UBS U.S. Bond Fund. Figures would be different if a breakdown of the underlying investment companies' industry diversification was included.
(2) Amount represents less than 0.005%.
151
UBS U.S. Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds58.94% |
|
US bonds58.34% |
|
US corporate bonds7.17% |
|
AT&T Corp., 8.000%, due 11/15/31 |
|
$ |
175,000 |
|
|
$ |
208,001 |
|
|
AvalonBay Communities, Inc., 7.500%, due 08/01/09 |
|
|
95,000 |
|
|
|
98,997 |
|
|
Avon Products, Inc., 7.150%, due 11/15/09 |
|
|
150,000 |
|
|
|
155,539 |
|
|
Bank of America Corp., 5.420%, due 03/15/17 |
|
|
400,000 |
|
|
|
383,466 |
|
|
Bank One Corp., 7.875%, due 08/01/10 |
|
|
345,000 |
|
|
|
368,389 |
|
|
BellSouth Corp., 6.550%, due 06/15/34 |
|
|
125,000 |
|
|
|
124,789 |
|
|
Burlington Northern Santa Fe Corp., 7.082%, due 05/13/29 |
|
|
200,000 |
|
|
|
212,732 |
|
|
Capital One Financial Corp., 5.500%, due 06/01/15 |
|
|
170,000 |
|
|
|
164,095 |
|
|
Citigroup, Inc., 5.625%, due 08/27/12 |
|
|
975,000 |
|
|
|
975,208 |
|
|
Comcast Cable Communications LLC, 6.750%, due 01/30/11 |
|
|
425,000 |
|
|
|
439,899 |
|
|
Computer Sciences Corp., 3.500%, due 04/15/08 |
|
|
165,000 |
|
|
|
162,438 |
|
|
Coors Brewing Co., 6.375%, due 05/15/12 |
|
|
135,000 |
|
|
|
138,235 |
|
|
Credit Suisse First Boston USA, Inc., 6.500%, due 01/15/12 |
|
|
180,000 |
|
|
|
186,440 |
|
|
DaimlerChrysler N.A. Holding Corp., 4.050%, due 06/04/08 |
|
|
530,000 |
|
|
|
522,565 |
|
|
Devon Financing Corp. ULC, 6.875%, due 09/30/11 |
|
|
260,000 |
|
|
|
271,423 |
|
|
Dominion Resources, Inc., Series B, 5.950%, due 06/15/35 |
|
|
130,000 |
|
|
|
121,897 |
|
|
Erac USA Finance Co., 8.000%, due 01/15/11(1) |
|
|
200,000 |
|
|
|
213,443 |
|
|
Ford Motor Credit Co. LLC, 5.800%, due 01/12/09 |
|
|
2,325,000 |
|
|
|
2,275,831 |
|
|
General Electric Capital Corp., 6.000%, due 06/15/12 |
|
|
1,145,000 |
|
|
|
1,165,421 |
|
|
6.750%, due 03/15/32 |
|
|
140,000 |
|
|
|
151,895 |
|
|
GMAC LLC, 6.875%, due 09/15/11 |
|
|
510,000 |
|
|
|
501,663 |
|
|
Goldman Sachs Group, Inc., 6.875%, due 01/15/11 |
|
|
500,000 |
|
|
|
520,078 |
|
|
HSBC Bank USA N.A., 5.625%, due 08/15/35 |
|
|
265,000 |
|
|
|
243,505 |
|
|
HSBC Finance Corp., 6.750%, due 05/15/11 |
|
|
295,000 |
|
|
|
306,218 |
|
|
ICI Wilmington, Inc., 4.375%, due 12/01/08 |
|
|
220,000 |
|
|
|
216,293 |
|
|
International Lease Finance Corp., 3.500%, due 04/01/09 |
|
|
300,000 |
|
|
|
290,598 |
|
|
|
|
Face amount |
|
Value |
|
US corporate bonds(concluded) |
|
John Deere Capital Corp., 7.000%, due 03/15/12 |
|
$ |
145,000 |
|
|
$ |
153,307 |
|
|
JPMorgan Chase & Co., 6.750%, due 02/01/11 |
|
|
225,000 |
|
|
|
233,765 |
|
|
MBNA Corp., 7.500%, due 03/15/12 |
|
|
125,000 |
|
|
|
134,641 |
|
|
Metlife, Inc., 5.000%, due 11/24/13 |
|
|
145,000 |
|
|
|
139,407 |
|
|
Morgan Stanley, 6.750%, due 04/15/11 |
|
|
680,000 |
|
|
|
705,042 |
|
|
New Cingular Wireless Services, Inc., 8.750%, due 03/01/31 |
|
|
130,000 |
|
|
|
162,061 |
|
|
PPL Energy Supply LLC, Series A, 6.400%, due 11/01/11 |
|
|
200,000 |
|
|
|
203,137 |
|
|
Sprint Capital Corp., 8.750%, due 03/15/32 |
|
|
200,000 |
|
|
|
224,626 |
|
|
US Bank N.A., 6.375%, due 08/01/11 |
|
|
240,000 |
|
|
|
247,236 |
|
|
Verizon New York, Inc., Series B, 7.375%, due 04/01/32 |
|
|
70,000 |
|
|
|
73,625 |
|
|
Wachovia Bank N.A., 7.800%, due 08/18/10 |
|
|
345,000 |
|
|
|
366,211 |
|
|
Waste Management, Inc., 7.375%, due 08/01/10 |
|
|
100,000 |
|
|
|
104,771 |
|
|
Wells Fargo Bank N.A., 6.450%, due 02/01/11 |
|
|
480,000 |
|
|
|
494,925 |
|
|
Wyeth, 5.500%, due 03/15/13 |
|
|
170,000 |
|
|
|
168,223 |
|
|
Xcel Energy, Inc., 7.000%, due 12/01/10 |
|
|
100,000 |
|
|
|
104,279 |
|
|
Total US corporate bonds (cost $14,025,025) |
|
|
13,934,314 |
|
|
Asset-backed securities2.67% |
|
Conseco Finance, Series 01-D, Class M2, 7.070%, due 11/15/32(2) |
|
|
465,340 |
|
|
|
404,378 |
|
|
Countrywide Asset-Backed Certificates, Series 04-SD1, Class A1, 5.660%, due 06/25/33(1),(2) |
|
|
84,433 |
|
|
|
84,670 |
|
|
Fieldstone Mortgage Investment Corp., Series 06-S1, Class A, 5.540%, due 01/25/37(1),(2) |
|
|
435,083 |
|
|
|
429,821 |
|
|
Green Tree Financial Corp., Series 99-3, Class A5, 6.160%, due 02/01/31 |
|
|
3,476 |
|
|
|
3,476 |
|
|
Series 94-5, Class A5, 8.300%, due 11/15/19 |
|
|
91,173 |
|
|
|
94,507 |
|
|
GSAMP Trust, Series 06-S3, Class A2, 5.769%, due 05/25/36(3),(4) |
|
|
1,450,000 |
|
|
|
1,160,000 |
|
|
Series 06-S3, Class A1, 6.085%, due 05/25/36(4) |
|
|
997,734 |
|
|
|
980,274 |
|
|
152
UBS U.S. Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
US bonds(continued) |
|
Asset-backed securities(concluded) |
|
Long Beach Mortgage Loan Trust, Series 06-A, Class A1, 5.410%, due 05/25/36(2) |
|
$ |
1,925,948 |
|
|
$ |
1,882,157 |
|
|
Structured Asset Securities Corp., Series 03-AL2, Class A, 3.357%, due 01/25/31(1) |
|
|
177,777 |
|
|
|
161,910 |
|
|
Total asset-backed securities (cost $5,586,591) |
|
|
5,201,193 |
|
|
Collateralized debt obligation0.20% |
|
Abacus Ltd., Series 06-10A, Class H, 6.820%, due 10/30/45(1),(2),(3),(5) (cost $400,000) |
|
|
400,000 |
|
|
|
388,000 |
|
|
Commercial mortgage-backed securities4.37% |
|
Banc of America Commercial Mortgage, Inc., Series 02-PB2, Class C, 6.349%, due 06/11/35 |
|
|
745,000 |
|
|
|
762,816 |
|
|
Bear Stearns Commercial Mortgage Securities, Series 00-WF2, Class A2, 7.320%, due 10/15/32 |
|
|
200,000 |
|
|
|
209,099 |
|
|
Series 00-WF1, Class A2, 7.780%, due 02/15/32 |
|
|
1,215,000 |
|
|
|
1,269,632 |
|
|
DLJ Commercial Mortgage Corp., Series 00-CKP1, Class A1B, 7.180%, due 11/10/33 |
|
|
785,117 |
|
|
|
817,122 |
|
|
First Union Commercial Mortgage Securities, Inc., Series 97-C2, Class A3, 6.650%, due 11/18/29 |
|
|
98,459 |
|
|
|
98,379 |
|
|
Host Marriott Pool Trust, Series 99-HMTA, Class A, 6.980%, due 08/03/15(1) |
|
|
127,690 |
|
|
|
129,759 |
|
|
Series 99-HMTA, Class C, 7.730%, due 08/03/15(1) |
|
|
360,000 |
|
|
|
375,164 |
|
|
Series 99-HMTA, Class D, 7.970%, due 08/03/15(1) |
|
|
220,000 |
|
|
|
230,190 |
|
|
Series 99-HMTA, Class E, 8.070%, due 08/03/15(1) |
|
|
220,000 |
|
|
|
230,574 |
|
|
Mach One Trust Commercial Mortgage-Backed, Series 04-1A, Class A1, 3.890%, due 05/28/40(1) |
|
|
323,105 |
|
|
|
319,978 |
|
|
Merrill Lynch Mortgage Trust, Series 05-LC1, Class A4, 5.291%, due 01/12/44(2) |
|
|
1,475,000 |
|
|
|
1,422,772 |
|
|
PNC Mortgage Acceptance Corp., Series 00-C1, Class A2, 7.610%, due 02/15/10 |
|
|
833,268 |
|
|
|
864,003 |
|
|
|
|
Face amount |
|
Value |
|
Commercial mortgage-backed securities(concluded) |
|
Prudential Mortgage Capital Funding LLC, Series 01-ROCK, Class A2, 6.605%, due 05/10/34 |
|
$ |
115,000 |
|
|
$ |
118,688 |
|
|
Salomon Brothers Mortgage Securities VII, Inc., Series 00-C1, Class A2, 7.520%, due 12/18/09 |
|
|
1,250,000 |
|
|
|
1,296,710 |
|
|
TIAA Retail Commercial Trust, Series 01-C1A, Class A2, 6.300%, due 06/19/21(1) |
|
|
345,032 |
|
|
|
346,205 |
|
|
Total commercial mortgage-backed securities (cost $8,778,323) |
|
|
8,491,091 |
|
|
Mortgage & agency debt securities19.74% |
|
Countrywide Alternative Loan Trust, Series 04-J8, Class 2A1, 7.000%, due 08/25/34 |
|
|
183,891 |
|
|
|
187,206 |
|
|
Countrywide Home Loan Mortgage Pass-Through Trust, Series 06-HYB1, Class 1A1, 5.363%, due 03/20/36(2) |
|
|
966,614 |
|
|
|
957,487 |
|
|
Credit Suisse Mortgage Capital Certificates, Series 06-2, Class 3A1, 6.500%, due 03/25/36 |
|
|
1,111,839 |
|
|
|
1,119,910 |
|
|
CS First Boston Mortgage Securities Corp., Series 05-9, Class 3A1, 6.000%, due 10/25/35 |
|
|
908,312 |
|
|
|
902,661 |
|
|
Series 05-11, Class 1A1, 6.500%, due 12/25/35 |
|
|
938,931 |
|
|
|
941,425 |
|
|
Series 05-12, Class 1A1, 6.500%, due 01/25/36 |
|
|
1,101,668 |
|
|
|
1,110,356 |
|
|
Series 03-8, Class 5A1, 6.500%, due 04/25/33 |
|
|
121,956 |
|
|
|
122,034 |
|
|
Series 02-10, Class 2A1, 7.500%, due 05/25/32 |
|
|
101,537 |
|
|
|
101,970 |
|
|
Federal Home Loan Bank System, 5.500%, due 08/13/14 |
|
|
1,535,000 |
|
|
|
1,545,518 |
|
|
Federal Home Loan Mortgage Corp., 5.300%, due 02/27/09 |
|
|
760,000 |
|
|
|
758,887 |
|
|
5.600%, due 10/17/13 |
|
|
1,265,000 |
|
|
|
1,257,538 |
|
|
5.750%, due 06/27/16 |
|
|
815,000 |
|
|
|
820,681 |
|
|
Federal Home Loan Mortgage Corp. Gold Pools, # E93969, 5.500%, due 01/01/18 |
|
|
358,007 |
|
|
|
353,892 |
|
|
# E01345, 5.500%, due 04/01/18 |
|
|
323,878 |
|
|
|
320,078 |
|
|
# G11429, 6.000%, due 12/01/17 |
|
|
269,571 |
|
|
|
271,110 |
|
|
153
UBS U.S. Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(continued) |
|
US bonds(continued) |
|
Mortgage & agency debt securities(continued) |
|
# C63008, 6.000%, due 01/01/32 |
|
$ |
966,546 |
|
|
$ |
964,260 |
|
|
# G01038, 6.500%, due 06/01/29 |
|
|
50,013 |
|
|
|
51,091 |
|
|
# G01717, 6.500%, due 11/01/29 |
|
|
326,587 |
|
|
|
333,420 |
|
|
# C64678, 6.500%, due 03/01/32 |
|
|
52,414 |
|
|
|
53,477 |
|
|
# G01449, 7.000%, due 07/01/32 |
|
|
724,963 |
|
|
|
749,500 |
|
|
Federal Home Loan Mortgage Corp. REMICs, Series 2532, Class PD, 5.500%, due 06/15/26 |
|
|
167,861 |
|
|
|
167,529 |
|
|
Series 2297, Class NB, 6.000%, due 03/15/16 |
|
|
357,886 |
|
|
|
360,871 |
|
|
Series 2148, Class ZA, 6.000%, due 04/15/29 |
|
|
516,531 |
|
|
|
512,591 |
|
|
Series 2426, Class GH, 6.000%, due 08/15/30 |
|
|
146,364 |
|
|
|
146,709 |
|
|
Series 1595, Class D, 7.000%, due 10/15/13 |
|
|
118,026 |
|
|
|
120,536 |
|
|
Federal National Mortgage Association, 4.250%, due 08/15/10 |
|
|
1,450,000 |
|
|
|
1,410,730 |
|
|
5.200%, due 11/08/10 |
|
|
1,555,000 |
|
|
|
1,549,657 |
|
|
5.500%, due 03/15/11 |
|
|
2,770,000 |
|
|
|
2,793,628 |
|
|
5.500%, due 01/23/12 |
|
|
1,275,000 |
|
|
|
1,271,897 |
|
|
6.070%, due 05/12/16 |
|
|
800,000 |
|
|
|
802,026 |
|
|
6.250%, due 02/01/11 |
|
|
1,370,000 |
|
|
|
1,415,946 |
|
|
Federal National Mortgage Association Grantor Trust, Series 00-T6, Class A1, 7.500%, due 06/25/30 |
|
|
381,230 |
|
|
|
393,163 |
|
|
Federal National Mortgage Association Pools, # 735661, 5.500%, due 12/01/17 |
|
|
952,150 |
|
|
|
941,538 |
|
|
# 255047, 5.500%, due 01/01/24 |
|
|
1,130,954 |
|
|
|
1,105,760 |
|
|
# 357501, 5.500%, due 02/01/24 |
|
|
1,018,461 |
|
|
|
995,104 |
|
|
# 576764, 5.500%, due 09/01/24 |
|
|
285,250 |
|
|
|
277,830 |
|
|
# 688066, 5.500%, due 03/01/33 |
|
|
497,406 |
|
|
|
482,038 |
|
|
# 688314, 5.500%, due 03/01/33 |
|
|
582,829 |
|
|
|
564,699 |
|
|
# 802481, 5.500%, due 11/01/34 |
|
|
877,971 |
|
|
|
850,039 |
|
|
# 545015, 6.000%, due 06/01/16 |
|
|
770,183 |
|
|
|
774,776 |
|
|
|
|
Face amount |
|
Value |
|
Mortgage & agency debt securities(continued) |
|
# 254798, 6.000%, due 06/01/23 |
|
$ |
185,352 |
|
|
$ |
185,800 |
|
|
# 408267, 6.000%, due 03/01/28 |
|
|
58,036 |
|
|
|
57,849 |
|
|
# 252339, 6.000%, due 03/01/29 |
|
|
66,195 |
|
|
|
65,981 |
|
|
# 323715, 6.000%, due 05/01/29 |
|
|
60,396 |
|
|
|
60,201 |
|
|
# 522564, 6.000%, due 07/01/29 |
|
|
211,100 |
|
|
|
210,466 |
|
|
# 676733, 6.000%, due 01/01/33 |
|
|
436,506 |
|
|
|
434,482 |
|
|
# 708631, 6.000%, due 06/01/33 |
|
|
70,810 |
|
|
|
70,395 |
|
|
# 253824, 7.000%, due 03/01/31 |
|
|
14,587 |
|
|
|
15,111 |
|
|
# 619809, 7.000%, due 11/01/31 |
|
|
84,976 |
|
|
|
88,073 |
|
|
Federal National Mortgage Association Whole Loan, Series 04-W12, Class 1A3, 7.000%, due 07/25/44 |
|
|
441,765 |
|
|
|
453,494 |
|
|
Series 04-W15, Class 1A3, 7.000%, due 08/25/44 |
|
|
452,826 |
|
|
|
465,732 |
|
|
Series 95-W3, Class A, 9.000%, due 04/25/25 |
|
|
4,896 |
|
|
|
5,291 |
|
|
First Horizon Alternative Mortgage Securities Trust, Series 04-AA3, Class A1, 5.303%, due 09/25/34(2) |
|
|
476,485 |
|
|
|
473,580 |
|
|
First Horizon Asset Securities, Inc., Series 04-FL1, Class 1A1, 5.590%, due 02/25/35(2) |
|
|
63,692 |
|
|
|
63,673 |
|
|
Government National Mortgage Association Pools, # 2687, 6.000%, due 12/20/28 |
|
|
70,217 |
|
|
|
70,087 |
|
|
# 2753, 6.000%, due 05/20/29 |
|
|
321,769 |
|
|
|
321,127 |
|
|
# 2794, 6.000%, due 08/20/29 |
|
|
233,397 |
|
|
|
232,932 |
|
|
# 80329, 6.125%, due 10/20/29(2) |
|
|
105,079 |
|
|
|
105,864 |
|
|
# 780204, 7.000%, due 07/15/25 |
|
|
6,003 |
|
|
|
6,261 |
|
|
GSR Mortgage Loan Trust, Series 05-4F, Class 3A1, 6.500%, due 04/25/20 |
|
|
693,473 |
|
|
|
707,776 |
|
|
IndyMac INDX Mortgage Loan Trust, Series 05-AR3, Class B1, 5.412%, due 04/25/35(2) |
|
|
1,372,985 |
|
|
|
1,355,525 |
|
|
154
UBS U.S. Bond FundPortfolio of investments
June 30, 2007
|
|
Face amount |
|
Value |
|
Bonds(concluded) |
|
US bonds(concluded) |
|
Mortgage & agency debt securities(concluded) |
|
Morgan Stanley Mortgage Loan Trust, Series 06-1AR, Class 2A, 5.948%, due 02/25/36(2) |
|
$ |
1,173,457 |
|
|
$ |
1,183,269 |
|
|
Series 04-4, Class 2A, 6.408%, due 09/25/34(2) |
|
|
455,121 |
|
|
|
457,183 |
|
|
Residential Asset Securitization Trust, Series 04-IP2, Class B1, 5.420%, due 12/25/34(2) |
|
|
1,028,375 |
|
|
|
1,020,895 |
|
|
Structured Asset Securities Corp., Series 04-20, Class 4A1, 6.000%, due 11/25/34 |
|
|
430,521 |
|
|
|
428,670 |
|
|
Total mortgage & agency debt securities (cost $39,027,824) |
|
|
38,399,285 |
|
|
Stripped mortgage-backed security0.00%(6) |
|
MLCC Mortgage Investors, Inc., Series 03-D, Class XA1, IO, 1.000%, due 08/25/28(2),(3) (cost $3,447) |
|
|
3,436,149 |
|
|
|
263 |
|
|
US government obligations24.19% |
|
US Treasury Bonds, 4.750%, due 02/15/37 |
|
|
5,360,000 |
|
|
|
5,053,896 |
|
|
6.250%, due 08/15/23 |
|
|
5,710,000 |
|
|
|
6,340,333 |
|
|
6.250%, due 05/15/30 |
|
|
5,645,000 |
|
|
|
6,452,060 |
|
|
8.750%, due 05/15/17 |
|
|
3,615,000 |
|
|
|
4,631,719 |
|
|
US Treasury Notes, 4.500%, due 03/31/12 |
|
|
15,795,000 |
|
|
|
15,506,251 |
|
|
4.625%, due 11/15/16 |
|
|
7,385,000 |
|
|
|
7,157,106 |
|
|
4.750%, due 12/31/08 |
|
|
1,645,000 |
|
|
|
1,639,988 |
|
|
4.750%, due 05/15/14 |
|
|
270,000 |
|
|
|
266,625 |
|
|
Total US government obligations (cost $47,518,261) |
|
|
47,047,978 |
|
|
Total US bonds (cost $115,339,471) |
|
|
113,462,124 |
|
|
International bonds0.60% |
|
Foreign government bond0.43% |
|
Egypt0.43% |
|
Egypt Government Agency for International Development, 4.450%, due 09/15/15 (cost $867,285) |
|
|
895,000 |
|
|
|
839,214 |
|
|
International corporate bonds0.17% |
|
Luxembourg0.06% |
|
Telecom Italia Capital SA, 5.250%, due 11/15/13 |
|
|
120,000 |
|
|
|
114,345 |
|
|
|
|
Face amount |
|
Value |
|
United Kingdom0.11% |
|
Abbey National PLC, 7.950%, due 10/26/29 |
|
$ |
105,000 |
|
|
$ |
126,122 |
|
|
Royal Bank of Scotland Group PLC, 9.118%, due 03/31/10(7) |
|
|
70,000 |
|
|
|
76,101 |
|
|
|
|
|
202,223 |
|
|
Total international corporate bonds (cost $330,415) |
|
|
316,568 |
|
|
Total international bonds (cost $1,197,700) |
|
|
1,155,782 |
|
|
Total bonds (cost $116,537,171) |
|
|
114,617,906 |
|
|
|
|
Shares |
|
|
|
Investment companies37.78% |
|
UBS Corporate Bond Relationship Fund(8) |
|
|
266,105 |
|
|
|
3,171,063 |
|
|
UBS Opportunistic Emerging Markets Debt Relationship Fund(8) |
|
|
337,846 |
|
|
|
4,035,065 |
|
|
UBS Opportunistic High Yield Relationship Fund(8) |
|
|
957,291 |
|
|
|
12,857,378 |
|
|
UBS U.S. Securitized Mortgage Relationship Fund(8) |
|
|
4,187,087 |
|
|
|
53,423,874 |
|
|
Total investment companies (cost $71,287,781) |
|
|
73,487,380 |
|
|
Short-term investments2.47% |
|
Other2.35% |
|
UBS Supplementary Trust U.S. Cash Management Prime Fund, 5.37%(8),(9) (cost $4,566,581) |
|
|
4,566,581 |
|
|
|
4,566,581 |
|
|
|
|
Face amount |
|
|
|
US government obligation0.12% |
|
US Treasury Bills, 4.81%, due 12/20/07(10),(11) (cost $244,386) |
|
$ |
250,000 |
|
|
|
244,395 |
|
|
Total short-term investments (cost $4,810,967) |
|
|
4,810,976 |
|
|
|
|
Number of contracts |
|
|
|
Options purchased0.41% |
|
Call options0.11% |
|
5 Year US Treasury Notes Futures, strike @ 104.50, expires August 2007*(11) |
|
|
598 |
|
|
|
196,219 |
|
|
strike @ 106.00, expires August 2007*(11) |
|
|
204 |
|
|
|
9,563 |
|
|
|
|
|
205,782 |
|
|
155
UBS U.S. Bond FundPortfolio of investments
June 30, 2007
|
|
Number of contracts |
|
Value |
|
Options purchased(concluded) |
|
Put options0.30% |
|
90 Day Euro Futures, strike @ 94.75, expires December 2007*(11) |
|
|
443 |
|
|
$ |
143,975 |
|
|
90 Day Sterling Interest Rate Futures, strike @ GBP 93.75, expires March 2008*(11) |
|
|
736 |
|
|
|
286,354 |
|
|
5 Year US Treasury Notes Futures, strike @ 103.50, expires August 2007*(11) |
|
|
598 |
|
|
|
158,844 |
|
|
|
|
|
589,173 |
|
|
Total options purchased (cost $884,421) |
|
|
794,955 |
|
|
Total investments99.60% (cost $193,520,340) |
|
|
193,711,217 |
|
|
Cash and other assets, less liabilities0.40% |
|
|
783,734 |
|
|
Net assets100.00% |
|
$ |
194,494,951 |
|
|
Notes to portfolio of investments
Aggregate cost for federal income tax purposes was $195,179,661; and net unrealized depreciation consisted of:
Gross unrealized appreciation |
|
$ |
1,713,940 |
|
|
Gross unrealized depreciation |
|
|
(3,182,384 |
) |
|
Net unrealized depreciation |
|
$ |
(1,468,444 |
) |
|
* Non-income producing security.
(1) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid, unless otherwise noted, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2007, the value of these securities amounted to $2,909,714 or 1.50% of net assets.
(2) Floating rate securityThe interest rate shown is the current rate as of June 30, 2007.
(3) Security is illiquid. At June 30, 2007, the value of these securities amounted to $1,548,263 or 0.80% of net assets.
(4) Step bondCoupon rate increases in increments to maturity. Rate disclosed is as of June 30, 2007. Maturity date disclosed is the ultimate maturity date.
(5) Security is being fair valued by a valuation committee under the direction of the Board of Trustees. At June 30, 2007, the value of these securities amounted to $388,000 or 0.20% of net assets.
(6) Amount represents less than 0.005%.
(7) Perpetual bond security. The maturity date reflects the next call date.
(8) Investment in affiliated mutual fund.
(9) The rate shown reflects the yield at June 30, 2007.
(10) The rate shown is the effective yield at the date of purchase.
(11) This security was pledged to cover margin requirements for futures contracts.
CS Credit Suisse
GMAC General Motors Acceptance Corp.
GSAMP Goldman Sachs Mortgage Securities Corp.
GSR Goldman Sachs Residential
IO Interest only securityThis security entitles the holder to receive interest payments from an underlying pool of mortgages. The risk associated with this security is related to the speed of the principal paydowns. High prepayments would result in a smaller amount of interest being received and cause the yield to decrease. Low prepayments would result in a greater amount of interest being received and cause the yield to increase.
MLCC Merrill Lynch Credit Corp.
REMIC Real Estate Mortgage Investment Conduit
156
UBS U.S. Bond FundPortfolio of investments
June 30, 2007
Restricted security
Security |
|
Acquisition date |
|
Acquisition cost |
|
Acquisition cost as a percentage of net assets |
|
06/30/07 Market value |
|
06/30/07 Market value as a percentage of net assets |
|
Abacus Ltd., Series 06-10A, Class H, 6.820%, due 10/30/45 |
|
|
02/23/06 |
|
|
$ |
400,000 |
|
|
|
0.21 |
% |
|
$ |
388,000 |
|
|
|
0.20 |
% |
|
Futures contracts
UBS U.S. Bond Fund had the following open futures contracts as of June 30, 2007:
|
|
Expiration date |
|
Cost |
|
Value |
|
Unrealized appreciation |
|
US Treasury futures buy contracts: |
|
5 Year US Treasury Notes, 2 contracts |
|
September 2007 |
|
$ |
206,115 |
|
|
$ |
208,156 |
|
|
$ |
2,041 |
|
|
The segregated aggregate market value of investments and cash collateral pledged to cover margin requirements for the open futures positions at June 30, 2007, was $1,067,350.
Options written
UBS U.S. Bond Fund had the following open options written as of June 30, 2007:
Put Options Written
|
|
Expiration dates |
|
Premiums received |
|
Value |
|
90 Day Euro Futures, 443 contracts, strike @ 94.50 |
|
December 2007 |
|
$ |
47,947 |
|
|
$ |
30,456 |
|
|
90 Day Sterling Interest Rate Futures, 1,177 contracts, strike @ 94.00 |
|
March 2008 |
|
|
234,404 |
|
|
|
206,809 |
|
|
Total put options written |
|
|
|
$ |
282,351 |
|
|
$ |
237,265 |
|
|
See accompanying notes to financial statements.
157
The UBS Funds
June 30, 2007 (unaudited)
Explanation of expense disclosure (unaudited)
As a shareholder of the Funds, you incur two types of costs: (1) transactional costs (as applicable); including sales charges (loads); and (2) ongoing costs, including management fees; service and/or distribution (12b-1) fees (if applicable); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2007 to June 30, 2007.
Actual expenses
The first line of each class of shares in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over a period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second line for each class of shares in the table below provides information about hypothetical account values and hypothetical expenses based on that Fund's actual expense ratios for each class of shares and an assumed rate of return of 5% per year before expenses, which is not that Fund's actual return for each class of shares. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs (as applicable), such as sales charges (loads). Therefore, the second line in the table for each class of shares is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
158
The UBS Funds
June 30, 2007 (unaudited)
|
|
Beginning account value January 1, 2007 |
|
Ending account value June 30, 2007 |
|
Expenses paid during period* 01/01/07 to 06/30/07 |
|
Expense ratio during period |
|
UBS Dynamic Alpha Fund |
|
Class A Actual |
|
$ |
1,000.00 |
|
|
$ |
985.30 |
|
|
$ |
5.81 |
|
|
|
1.18 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,018.94 |
|
|
|
5.91 |
|
|
|
1.18 |
% |
|
Class B Actual |
|
|
1,000.00 |
|
|
|
981.70 |
|
|
|
9.63 |
|
|
|
1.96 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,015.08 |
|
|
|
9.79 |
|
|
|
1.96 |
% |
|
Class C Actual |
|
|
1,000.00 |
|
|
|
981.70 |
|
|
|
9.53 |
|
|
|
1.94 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,015.17 |
|
|
|
9.69 |
|
|
|
1.94 |
% |
|
Class Y Actual |
|
|
1,000.00 |
|
|
|
987.10 |
|
|
|
4.43 |
|
|
|
0.90 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,020.33 |
|
|
|
4.51 |
|
|
|
0.90 |
% |
|
UBS Global Allocation Fund |
|
Class A Actual |
|
|
1,000.00 |
|
|
|
1,046.60 |
|
|
|
5.68 |
|
|
|
1.12 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,019.24 |
|
|
|
5.61 |
|
|
|
1.12 |
% |
|
Class B Actual |
|
|
1,000.00 |
|
|
|
1,041.60 |
|
|
|
9.67 |
|
|
|
1.91 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,015.32 |
|
|
|
9.54 |
|
|
|
1.91 |
% |
|
Class C Actual |
|
|
1,000.00 |
|
|
|
1,042.50 |
|
|
|
9.57 |
|
|
|
1.89 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,015.42 |
|
|
|
9.44 |
|
|
|
1.89 |
% |
|
Class Y Actual |
|
|
1,000.00 |
|
|
|
1,047.40 |
|
|
|
4.47 |
|
|
|
0.88 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,020.43 |
|
|
|
4.41 |
|
|
|
0.88 |
% |
|
UBS Global Equity Fund |
|
Class A Actual |
|
|
1,000.00 |
|
|
|
1,064.00 |
|
|
|
6.35 |
|
|
|
1.24 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,018.65 |
|
|
|
6.21 |
|
|
|
1.24 |
% |
|
Class B Actual |
|
|
1,000.00 |
|
|
|
1,060.30 |
|
|
|
10.17 |
|
|
|
1.99 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,014.93 |
|
|
|
9.94 |
|
|
|
1.99 |
% |
|
Class C Actual |
|
|
1,000.00 |
|
|
|
1,060.00 |
|
|
|
10.16 |
|
|
|
1.99 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,014.93 |
|
|
|
9.94 |
|
|
|
1.99 |
% |
|
Class Y Actual |
|
|
1,000.00 |
|
|
|
1,065.50 |
|
|
|
5.17 |
|
|
|
1.01 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,019.79 |
|
|
|
5.06 |
|
|
|
1.01 |
% |
|
159
The UBS Funds
June 30, 2007 (unaudited)
|
|
Beginning account value January 1, 2007 |
|
Ending account value June 30, 2007 |
|
Expenses paid during period* 01/01/07 to 06/30/07 |
|
Expense ratio during period |
|
UBS International Equity Fund |
|
Class A Actual |
|
$ |
1,000.00 |
|
|
$ |
1,087.90 |
|
|
$ |
6.52 |
|
|
|
1.26 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,018.55 |
|
|
|
6.31 |
|
|
|
1.26 |
% |
|
Class B Actual |
|
|
1,000.00 |
|
|
|
1,083.80 |
|
|
|
10.33 |
|
|
|
2.00 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,014.88 |
|
|
|
9.99 |
|
|
|
2.00 |
% |
|
Class C Actual |
|
|
1,000.00 |
|
|
|
1,082.70 |
|
|
|
10.33 |
|
|
|
2.00 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,014.88 |
|
|
|
9.99 |
|
|
|
2.00 |
% |
|
Class Y Actual |
|
|
1,000.00 |
|
|
|
1,088.30 |
|
|
|
5.23 |
|
|
|
1.01 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,019.79 |
|
|
|
5.06 |
|
|
|
1.01 |
% |
|
UBS U.S. Equity Alpha Fund |
|
Class A Actual |
|
|
1,000.00 |
|
|
|
1,065.50 |
|
|
|
9.47 |
|
|
|
1.85 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,016.36 |
|
|
|
9.25 |
|
|
|
1.85 |
% |
|
Class C Actual |
|
|
1,000.00 |
|
|
|
1,061.90 |
|
|
|
13.19 |
|
|
|
2.58 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,012.69 |
|
|
|
12.87 |
|
|
|
2.58 |
% |
|
Class Y Actual |
|
|
1,000.00 |
|
|
|
1,067.40 |
|
|
|
8.56 |
|
|
|
1.67 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,017.41 |
|
|
|
8.35 |
|
|
|
1.67 |
% |
|
UBS U.S. Large Cap Equity Fund |
|
Class A Actual |
|
|
1,000.00 |
|
|
|
1,069.10 |
|
|
|
6.00 |
|
|
|
1.17 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,018.99 |
|
|
|
5.86 |
|
|
|
1.17 |
% |
|
Class B Actual |
|
|
1,000.00 |
|
|
|
1,064.90 |
|
|
|
9.83 |
|
|
|
1.92 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,015.27 |
|
|
|
9.59 |
|
|
|
1.92 |
% |
|
Class C Actual |
|
|
1,000.00 |
|
|
|
1,064.90 |
|
|
|
9.78 |
|
|
|
1.91 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,015.32 |
|
|
|
9.54 |
|
|
|
1.91 |
% |
|
Class Y Actual |
|
|
1,000.00 |
|
|
|
1,070.40 |
|
|
|
4.57 |
|
|
|
0.89 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,020.38 |
|
|
|
4.46 |
|
|
|
0.89 |
% |
|
UBS U.S. Large Cap Growth Fund |
|
Class A Actual |
|
|
1,000.00 |
|
|
|
1,079.90 |
|
|
|
5.36 |
|
|
|
1.04 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,019.64 |
|
|
|
5.21 |
|
|
|
1.04 |
% |
|
Class B Actual |
|
|
1,000.00 |
|
|
|
1,076.60 |
|
|
|
9.22 |
|
|
|
1.79 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,015.92 |
|
|
|
8.95 |
|
|
|
1.79 |
% |
|
Class C Actual |
|
|
1,000.00 |
|
|
|
1,075.50 |
|
|
|
9.21 |
|
|
|
1.79 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,015.92 |
|
|
|
8.95 |
|
|
|
1.79 |
% |
|
Class Y Actual |
|
|
1,000.00 |
|
|
|
1,081.00 |
|
|
|
4.13 |
|
|
|
0.80 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,020.83 |
|
|
|
4.01 |
|
|
|
0.80 |
% |
|
160
The UBS Funds
June 30, 2007 (unaudited)
|
|
Beginning account value January 1, 2007 |
|
Ending account value June 30, 2007 |
|
Expenses paid during period* 01/01/07 to 06/30/07 |
|
Expense ratio during period |
|
UBS U.S. Large Cap Value Equity Fund |
|
Class A Actual |
|
$ |
1,000.00 |
|
|
$ |
1,068.70 |
|
|
$ |
5.59 |
|
|
|
1.09 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,019.39 |
|
|
|
5.46 |
|
|
|
1.09 |
% |
|
Class B Actual |
|
|
1,000.00 |
|
|
|
1,063.80 |
|
|
|
9.42 |
|
|
|
1.84 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,015.67 |
|
|
|
9.20 |
|
|
|
1.84 |
% |
|
Class C Actual |
|
|
1,000.00 |
|
|
|
1,064.30 |
|
|
|
9.42 |
|
|
|
1.84 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,015.67 |
|
|
|
9.20 |
|
|
|
1.84 |
% |
|
Class Y Actual |
|
|
1,000.00 |
|
|
|
1,069.40 |
|
|
|
4.36 |
|
|
|
0.85 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,020.58 |
|
|
|
4.26 |
|
|
|
0.85 |
% |
|
UBS U.S. Mid Cap Growth Equity Fund |
|
Class A Actual |
|
|
1,000.00 |
|
|
|
1,114.10 |
|
|
|
7.55 |
|
|
|
1.44 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,017.65 |
|
|
|
7.20 |
|
|
|
1.44 |
% |
|
Class C Actual |
|
|
1,000.00 |
|
|
|
1,110.80 |
|
|
|
11.46 |
|
|
|
2.19 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,013.93 |
|
|
|
10.94 |
|
|
|
2.19 |
% |
|
Class Y Actual |
|
|
1,000.00 |
|
|
|
1,115.00 |
|
|
|
6.24 |
|
|
|
1.19 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,018.89 |
|
|
|
5.96 |
|
|
|
1.19 |
% |
|
UBS U.S. Small Cap Growth Fund |
|
Class A Actual |
|
|
1,000.00 |
|
|
|
1,094.80 |
|
|
|
6.60 |
|
|
|
1.27 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,018.50 |
|
|
|
6.36 |
|
|
|
1.27 |
% |
|
Class B Actual |
|
|
1,000.00 |
|
|
|
1,090.80 |
|
|
|
10.42 |
|
|
|
2.01 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,014.83 |
|
|
|
10.04 |
|
|
|
2.01 |
% |
|
Class C Actual |
|
|
1,000.00 |
|
|
|
1,091.00 |
|
|
|
10.47 |
|
|
|
2.02 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,014.78 |
|
|
|
10.09 |
|
|
|
2.02 |
% |
|
Class Y Actual |
|
|
1,000.00 |
|
|
|
1,096.40 |
|
|
|
5.30 |
|
|
|
1.02 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,019.74 |
|
|
|
5.11 |
|
|
|
1.02 |
% |
|
UBS Absolute Return Bond Fund |
|
Class A Actual |
|
|
1,000.00 |
|
|
|
1,003.20 |
|
|
|
4.77 |
|
|
|
0.96 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,020.03 |
|
|
|
4.81 |
|
|
|
0.96 |
% |
|
Class C Actual |
|
|
1,000.00 |
|
|
|
1,000.50 |
|
|
|
6.45 |
|
|
|
1.30 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,018.35 |
|
|
|
6.51 |
|
|
|
1.30 |
% |
|
Class Y Actual |
|
|
1,000.00 |
|
|
|
1,003.20 |
|
|
|
3.77 |
|
|
|
0.76 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,021.03 |
|
|
|
3.81 |
|
|
|
0.76 |
% |
|
161
The UBS Funds
June 30, 2007 (unaudited)
|
|
Beginning account value January 1, 2007 |
|
Ending account value June 30, 2007 |
|
Expenses paid during period* 01/01/07 to 06/30/07 |
|
Expense ratio during period |
|
UBS Global Bond Fund |
|
Class A Actual |
|
$ |
1,000.00 |
|
|
$ |
990.20 |
|
|
$ |
5.63 |
|
|
|
1.14 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,019.14 |
|
|
|
5.71 |
|
|
|
1.14 |
% |
|
Class B Actual |
|
|
1,000.00 |
|
|
|
986.50 |
|
|
|
9.31 |
|
|
|
1.89 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,015.42 |
|
|
|
9.44 |
|
|
|
1.89 |
% |
|
Class C Actual |
|
|
1,000.00 |
|
|
|
986.70 |
|
|
|
8.08 |
|
|
|
1.64 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,016.66 |
|
|
|
8.20 |
|
|
|
1.64 |
% |
|
Class Y Actual |
|
|
1,000.00 |
|
|
|
991.40 |
|
|
|
4.44 |
|
|
|
0.90 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,020.33 |
|
|
|
4.51 |
|
|
|
0.90 |
% |
|
UBS High Yield Fund |
|
Class A Actual |
|
|
1,000.00 |
|
|
|
1,025.60 |
|
|
|
5.98 |
|
|
|
1.19 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,018.89 |
|
|
|
5.96 |
|
|
|
1.19 |
% |
|
Class B Actual |
|
|
1,000.00 |
|
|
|
1,021.80 |
|
|
|
9.73 |
|
|
|
1.94 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,015.17 |
|
|
|
9.69 |
|
|
|
1.94 |
% |
|
Class C Actual |
|
|
1,000.00 |
|
|
|
1,023.00 |
|
|
|
8.48 |
|
|
|
1.69 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,016.41 |
|
|
|
8.45 |
|
|
|
1.69 |
% |
|
Class Y Actual |
|
|
1,000.00 |
|
|
|
1,026.70 |
|
|
|
4.77 |
|
|
|
0.95 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,020.08 |
|
|
|
4.76 |
|
|
|
0.95 |
% |
|
UBS U.S. Bond Fund |
|
Class A Actual |
|
|
1,000.00 |
|
|
|
1,011.20 |
|
|
|
4.24 |
|
|
|
0.85 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,020.58 |
|
|
|
4.26 |
|
|
|
0.85 |
% |
|
Class B Actual |
|
|
1,000.00 |
|
|
|
1,007.40 |
|
|
|
7.91 |
|
|
|
1.59 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,016.91 |
|
|
|
7.95 |
|
|
|
1.59 |
% |
|
Class C Actual |
|
|
1,000.00 |
|
|
|
1,008.70 |
|
|
|
6.67 |
|
|
|
1.34 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,018.15 |
|
|
|
6.71 |
|
|
|
1.34 |
% |
|
Class Y Actual |
|
|
1,000.00 |
|
|
|
1,012.50 |
|
|
|
2.99 |
|
|
|
0.60 |
% |
|
Hypothetical (5% annual return before expenses) |
|
|
1,000.00 |
|
|
|
1,021.82 |
|
|
|
3.01 |
|
|
|
0.60 |
% |
|
* Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181 divided by 365 (to reflect the one-half year period).
162
This page intentionally left blank.
163
The UBS FundsFinancial statements
Statements of assets and liabilities
June 30, 2007
|
|
UBS Dynamic Alpha Fund |
|
UBS Global Allocation Fund |
|
UBS Global Equity Fund |
|
UBS International Equity Fund |
|
UBS U.S. Equity Alpha Fund |
|
UBS U.S. Large Cap Equity Fund |
|
UBS U.S. Large Cap Growth Fund |
|
Assets: |
|
Investments, at cost: |
|
Unaffiliated issuers |
|
$ |
806,818,355 |
|
|
$ |
3,786,427,064 |
|
|
$ |
272,284,452 |
|
|
$ |
124,519,688 |
|
|
$ |
263,463,645 |
|
|
$ |
814,477,425 |
|
|
$ |
68,656,475 |
|
|
Affiliated issuers |
|
|
1,678,576,656 |
|
|
|
713,007,101 |
|
|
|
22,130,406 |
|
|
|
9,500,000 |
|
|
|
879,283 |
|
|
|
17,042,612 |
|
|
|
834,340 |
|
|
Investments of cash collateral in affiliated issuers received from securities loaned, at cost |
|
|
|
|
|
|
144,054,788 |
|
|
|
|
|
|
|
6,089,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency, at cost |
|
|
22,838,473 |
|
|
|
14,713,935 |
|
|
|
1,230,398 |
|
|
|
2,967,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,508,233,484 |
|
|
$ |
4,658,202,888 |
|
|
$ |
295,645,256 |
|
|
$ |
143,076,586 |
|
|
$ |
264,342,928 |
|
|
$ |
831,520,037 |
|
|
$ |
69,490,815 |
|
|
Investments, at value: |
|
Unaffiliated issuers |
|
$ |
925,059,576 |
|
|
$ |
4,239,940,680 |
|
|
$ |
378,079,003 |
|
|
$ |
187,497,843 |
|
|
$ |
281,029,437 |
|
|
$ |
981,686,411 |
|
|
$ |
72,317,806 |
|
|
Affiliated issuers |
|
|
2,143,739,215 |
|
|
|
905,595,925 |
|
|
|
30,732,757 |
|
|
|
13,234,141 |
|
|
|
879,283 |
|
|
|
17,042,612 |
|
|
|
834,340 |
|
|
Investments of cash collateral in affiliated issuers received from securities loaned, at value(1),(2) |
|
|
|
|
|
|
144,054,788 |
|
|
|
|
|
|
|
6,089,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency, at value |
|
|
23,096,860 |
|
|
|
14,843,223 |
|
|
|
1,238,013 |
|
|
|
2,996,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
|
|
|
|
|
1,533,586 |
|
|
|
|
|
|
|
|
|
|
|
1,720,552 |
|
|
|
1,451,000 |
|
|
|
|
|
|
Receivables: |
|
Investment securities sold |
|
|
1,238,368 |
|
|
|
77,382,694 |
|
|
|
192,165 |
|
|
|
3,390,188 |
|
|
|
65,411 |
|
|
|
1,261,186 |
|
|
|
2,505,183 |
|
|
Due from advisor - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26,431 |
|
|
Dividends |
|
|
1,674,998 |
|
|
|
3,707,772 |
|
|
|
661,106 |
|
|
|
411,740 |
|
|
|
283,020 |
|
|
|
878,125 |
|
|
|
37,359 |
|
|
Interest |
|
|
1,361,025 |
|
|
|
15,691,351 |
|
|
|
2,242 |
|
|
|
4,975 |
|
|
|
3,270 |
|
|
|
132,670 |
|
|
|
5,683 |
|
|
Fund shares sold |
|
|
5,060,123 |
|
|
|
12,145,146 |
|
|
|
457,117 |
|
|
|
503,854 |
|
|
|
465,219 |
|
|
|
2,351,814 |
|
|
|
172,664 |
|
|
Due from broker |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variation margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivable for foreign tax reclaims |
|
|
378,803 |
|
|
|
160,992 |
|
|
|
201,683 |
|
|
|
98,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash collateral for futures contracts |
|
|
638,745,567 |
|
|
|
33,808,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized appreciation on forward foreign currency contracts |
|
|
5,979,816 |
|
|
|
279,895 |
|
|
|
44,304 |
|
|
|
36,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding swap agreements, at value(3) |
|
|
56,724,320 |
|
|
|
483,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
|
63,733 |
|
|
|
595,938 |
|
|
|
47,041 |
|
|
|
52,396 |
|
|
|
19,394 |
|
|
|
16,416 |
|
|
|
299 |
|
|
Total assets |
|
|
3,803,122,404 |
|
|
|
5,450,224,334 |
|
|
|
411,655,431 |
|
|
|
214,315,304 |
|
|
|
284,465,586 |
|
|
|
1,004,820,234 |
|
|
|
75,899,765 |
|
|
Liabilities: |
|
Payables: |
|
Cash collateral from securities loaned |
|
|
|
|
|
|
144,054,788 |
|
|
|
|
|
|
|
6,089,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities purchased |
|
|
2,616,296 |
|
|
|
92,699,084 |
|
|
|
|
|
|
|
40,676 |
|
|
|
|
|
|
|
|
|
|
|
2,430,078 |
|
|
Investment advisory and administration fees |
|
|
2,271,117 |
|
|
|
3,173,077 |
|
|
|
237,279 |
|
|
|
124,785 |
|
|
|
290,418 |
(4) |
|
|
619,578 |
|
|
|
|
|
|
Fund shares redeemed |
|
|
11,542,485 |
|
|
|
9,008,125 |
|
|
|
844,089 |
|
|
|
1,357,456 |
|
|
|
542,775 |
|
|
|
1,318,897 |
|
|
|
133,784 |
|
|
Distribution and service fees |
|
|
964,722 |
|
|
|
1,797,013 |
|
|
|
84,830 |
|
|
|
8,021 |
|
|
|
72,771 |
|
|
|
41,971 |
|
|
|
3,005 |
|
|
Trustees' fees |
|
|
8,063 |
|
|
|
9,953 |
|
|
|
4,229 |
|
|
|
3,964 |
|
|
|
3,906 |
|
|
|
4,699 |
|
|
|
3,702 |
|
|
Custody fees |
|
|
118,905 |
|
|
|
424,140 |
|
|
|
56,142 |
|
|
|
43,825 |
|
|
|
16,443 |
|
|
|
70,514 |
|
|
|
5,078 |
|
|
Variation margin |
|
|
13,119,451 |
|
|
|
612,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,850 |
|
|
|
|
|
|
Due to broker |
|
|
437,440,444 |
|
|
|
13,967,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to custodian |
|
|
3,925,381 |
|
|
|
|
|
|
|
|
|
|
|
3,622,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
164
The UBS FundsFinancial statements
|
|
UBS U.S. Large Cap Value Equity Fund |
|
UBS U.S. Mid Cap Growth Equity Fund |
|
UBS U.S. Small Cap Growth Fund |
|
UBS Absolute Return Bond Fund |
|
UBS Global Bond Fund |
|
UBS High Yield Fund |
|
UBS U.S. Bond Fund |
|
Assets: |
|
Investments, at cost: |
|
Unaffiliated issuers |
|
$ |
102,766,975 |
|
|
$ |
5,239,101 |
|
|
$ |
348,103,286 |
|
|
$ |
480,159,245 |
|
|
$ |
102,831,757 |
|
|
$ |
103,245,441 |
|
|
$ |
117,665,978 |
|
|
Affiliated issuers |
|
|
1,287,082 |
|
|
|
65,133 |
|
|
|
14,753,752 |
|
|
|
38,062,544 |
|
|
|
18,373,742 |
|
|
|
3,832,781 |
|
|
|
75,854,362 |
|
|
Investments of cash collateral in affiliated issuers received from securities loaned, at cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency, at cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,205,029 |
|
|
|
545,674 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
104,054,057 |
|
|
$ |
5,304,234 |
|
|
$ |
362,857,038 |
|
|
$ |
534,426,818 |
|
|
$ |
121,751,173 |
|
|
$ |
107,078,222 |
|
|
$ |
193,520,340 |
|
|
Investments, at value: |
|
Unaffiliated issuers |
|
$ |
138,094,129 |
|
|
$ |
5,868,735 |
|
|
$ |
448,045,426 |
|
|
$ |
477,318,341 |
|
|
$ |
102,901,341 |
|
|
$ |
103,246,735 |
|
|
$ |
115,657,256 |
|
|
Affiliated issuers |
|
|
1,287,082 |
|
|
|
65,133 |
|
|
|
14,753,752 |
|
|
|
39,976,999 |
|
|
|
19,052,195 |
|
|
|
3,832,781 |
|
|
|
78,053,961 |
|
|
Investments of cash collateral in affiliated issuers received from securities loaned, at value(1),(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency, at value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,443,704 |
|
|
|
551,453 |
|
|
|
|
|
|
|
|
|
|
Cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,242,977 |
|
|
|
12,000 |
|
|
|
14,125 |
|
|
|
|
|
|
Receivables: |
|
Investment securities sold |
|
|
70,959 |
|
|
|
|
|
|
|
6,511,767 |
|
|
|
15,589,969 |
|
|
|
497,707 |
|
|
|
|
|
|
|
7,594,094 |
|
|
Due from advisor - |
|
|
|
|
|
|
40,432 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends |
|
|
177,091 |
|
|
|
888 |
|
|
|
99,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
6,292 |
|
|
|
327 |
|
|
|
34,411 |
|
|
|
7,702,595 |
|
|
|
1,623,502 |
|
|
|
2,127,786 |
|
|
|
1,254,701 |
|
|
Fund shares sold |
|
|
95,286 |
|
|
|
|
|
|
|
653,694 |
|
|
|
749,868 |
|
|
|
190,707 |
|
|
|
162,558 |
|
|
|
243,397 |
|
|
Due from broker |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,687,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variation margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
625 |
|
|
Receivable for foreign tax reclaims |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash collateral for futures contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,879,368 |
|
|
|
|
|
|
|
|
|
|
|
28,000 |
|
|
Unrealized appreciation on forward foreign currency contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
360,757 |
|
|
|
86,980 |
|
|
|
|
|
|
|
|
|
|
Outstanding swap agreements, at value(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,384,069 |
|
|
|
|
|
|
|
|
|
|
|
1,403,382 |
|
|
Other assets |
|
|
2,738 |
|
|
|
105 |
|
|
|
8,884 |
|
|
|
10,811 |
|
|
|
2,156 |
|
|
|
2,165 |
|
|
|
3,453 |
|
|
Total assets |
|
|
139,733,577 |
|
|
|
5,975,620 |
|
|
|
470,107,024 |
|
|
|
576,347,449 |
|
|
|
124,918,041 |
|
|
|
109,386,150 |
|
|
|
204,238,869 |
|
|
Liabilities: |
|
Payables: |
|
Cash collateral from securities loaned |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities purchased |
|
|
|
|
|
|
|
|
|
|
3,455,981 |
|
|
|
16,840,079 |
|
|
|
557,665 |
|
|
|
2,387,091 |
|
|
|
7,604,610 |
|
|
Investment advisory and administration fees |
|
|
71,693 |
|
|
|
|
|
|
|
254,565 |
|
|
|
285,584 |
|
|
|
40,259 |
|
|
|
61,805 |
|
|
|
50,072 |
|
|
Fund shares redeemed |
|
|
244,286 |
|
|
|
8,251 |
|
|
|
4,044,262 |
|
|
|
1,958,349 |
|
|
|
260,183 |
|
|
|
287,602 |
|
|
|
698,301 |
|
|
Distribution and service fees |
|
|
39,229 |
|
|
|
531 |
|
|
|
39,138 |
|
|
|
48,229 |
|
|
|
4,070 |
|
|
|
18,643 |
|
|
|
7,500 |
|
|
Trustees' fees |
|
|
3,750 |
|
|
|
3,612 |
|
|
|
4,220 |
|
|
|
4,356 |
|
|
|
3,747 |
|
|
|
3,744 |
|
|
|
3,887 |
|
|
Custody fees |
|
|
12,166 |
|
|
|
542 |
|
|
|
39,102 |
|
|
|
57,510 |
|
|
|
13,300 |
|
|
|
11,211 |
|
|
|
10,841 |
|
|
Variation margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
795,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to broker |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95,805 |
|
|
Due to custodian |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,647 |
|
|
See accompanying notes to financial statements.
165
The UBS FundsFinancial statements
Statements of assets and liabilities (cont'd)
June 30, 2007
|
|
UBS Dynamic Alpha Fund |
|
UBS Global Allocation Fund |
|
UBS Global Equity Fund |
|
UBS International Equity Fund |
|
UBS U.S. Equity Alpha Fund |
|
UBS U.S. Large Cap Equity Fund |
|
UBS U.S. Large Cap Growth Fund |
|
UBS U.S. Large Cap Value Equity Fund |
|
UBS U.S. Mid Cap Growth Equity Fund |
|
UBS U.S. Small Cap Growth Fund |
|
UBS Absolute Return Bond Fund |
|
UBS Global Bond Fund |
|
UBS High Yield Fund |
|
UBS U.S. Bond Fund |
|
Options written, at value(6) |
|
$ |
838,173 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
237,265 |
|
|
Securities sold short |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47,804,068 |
(7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends payable for securities sold short |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued expenses |
|
|
406,486 |
|
|
|
1,234,024 |
|
|
|
212,311 |
|
|
|
120,248 |
|
|
|
80,629 |
|
|
|
127,081 |
|
|
|
51,364 |
|
|
|
95,405 |
|
|
|
39,413 |
|
|
|
203,918 |
|
|
|
107,527 |
|
|
|
75,044 |
|
|
|
101,708 |
|
|
|
79,026 |
|
|
Unrealized depreciation on forward foreign currency contracts |
|
|
38,113,614 |
|
|
|
27,128,878 |
|
|
|
2,165,266 |
|
|
|
1,059,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
995,447 |
|
|
|
700,199 |
|
|
|
|
|
|
|
|
|
|
Outstanding swap agreements, at value(3) |
|
|
38,668,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,437,464 |
|
|
|
|
|
|
|
|
|
|
|
936,964 |
|
|
Total liabilities |
|
|
550,033,884 |
|
|
|
294,109,316 |
|
|
|
3,604,146 |
|
|
|
12,470,066 |
|
|
|
48,866,850 |
|
|
|
2,197,590 |
|
|
|
2,627,011 |
|
|
|
466,529 |
|
|
|
52,349 |
|
|
|
8,041,186 |
|
|
|
22,530,442 |
|
|
|
1,654,467 |
|
|
|
2,871,804 |
|
|
|
9,743,918 |
|
|
Net assets |
|
$ |
3,253,088,520 |
|
|
$ |
5,156,115,018 |
|
|
$ |
408,051,285 |
|
|
$ |
201,845,238 |
|
|
$ |
235,598,736 |
|
|
$ |
1,002,622,644 |
|
|
$ |
73,272,754 |
|
|
$ |
139,267,048 |
|
|
$ |
5,923,271 |
|
|
$ |
462,065,838 |
|
|
$ |
553,817,007 |
|
|
$ |
123,263,574 |
|
|
$ |
106,514,346 |
|
|
$ |
194,494,951 |
|
|
Net assets consist of: |
|
Beneficial interest |
|
$ |
2,886,703,001 |
|
|
$ |
4,335,170,284 |
|
|
$ |
1,028,741,131 |
|
|
$ |
120,006,725 |
|
|
$ |
212,607,220 |
|
|
$ |
810,871,958 |
|
|
$ |
70,507,984 |
|
|
$ |
97,604,094 |
|
|
$ |
5,252,794 |
|
|
$ |
355,384,877 |
|
|
$ |
553,266,485 |
|
|
$ |
124,890,769 |
|
|
$ |
327,761,512 |
|
|
$ |
196,762,312 |
|
|
Accumulated undistributed (distributions in excess of) net investment income |
|
|
(130,946,501 |
) |
|
|
(212,477 |
) |
|
|
241,492 |
|
|
|
1,638,529 |
|
|
|
212,931 |
|
|
|
4,684,713 |
|
|
|
63,458 |
|
|
|
706,587 |
|
|
|
17,399 |
|
|
|
|
|
|
|
1,435,214 |
|
|
|
(1,066,893 |
) |
|
|
39,734 |
|
|
|
706,894 |
|
|
Accumulated undistributed net realized gain (loss) |
|
|
(58,553,868 |
) |
|
|
200,416,497 |
|
|
|
(733,221,999 |
) |
|
|
14,469,847 |
|
|
|
7,319,795 |
|
|
|
19,900,803 |
|
|
|
(960,019 |
) |
|
|
5,629,213 |
|
|
|
23,444 |
|
|
|
6,738,821 |
|
|
|
(1,545,289 |
) |
|
|
(724,121 |
) |
|
|
(221,288,194 |
) |
|
|
(3,537,858 |
) |
|
Net unrealized appreciation (depreciation) |
|
|
555,885,888 |
|
|
|
620,740,714 |
|
|
|
112,290,661 |
|
|
|
65,730,137 |
|
|
|
15,458,790 |
|
|
|
167,165,170 |
|
|
|
3,661,331 |
|
|
|
35,327,154 |
|
|
|
629,634 |
|
|
|
99,942,140 |
|
|
|
660,597 |
|
|
|
163,819 |
|
|
|
1,294 |
|
|
|
563,603 |
|
|
Net assets |
|
$ |
3,253,088,520 |
|
|
$ |
5,156,115,018 |
|
|
$ |
408,051,285 |
|
|
$ |
201,845,238 |
|
|
$ |
235,598,736 |
|
|
$ |
1,002,622,644 |
|
|
$ |
73,272,754 |
|
|
$ |
139,267,048 |
|
|
$ |
5,923,271 |
|
|
$ |
462,065,838 |
|
|
$ |
553,817,007 |
|
|
$ |
123,263,574 |
|
|
$ |
106,514,346 |
|
|
$ |
194,494,951 |
|
|
(1) The market value of securities loaned for UBS Global Allocation Fund as of June 30, 2007 is $337,414,527.
(2) The market value of securities loaned for UBS International Equity Fund as of June 30, 2007 is $5,832,136.
(3) Upfront payments made by UBS Absolute Return Bond Fund and UBS U.S. Bond Fund were $4,387,578 and $140,377, respectively.
(4) Includes $45,595 of reimbursement for offering costs payable to Advisor.
(5) Includes $43,545 of reimbursement for offering costs payable to Advisor.
(6) Premiums received for UBS Dynamic Alpha Fund and UBS U.S. Bond Fund were $1,084,823 and $282,351, respectively.
(7) Proceeds from securities sold short for UBS U.S. Equity Alpha Fund was $45,697,066.
166
The UBS FundsFinancial statements
|
|
UBS U.S. Large Cap Value Equity Fund |
|
UBS U.S. Mid Cap Growth Equity Fund |
|
UBS U.S. Small Cap Growth Fund |
|
UBS Absolute Return Bond Fund |
|
UBS Global Bond Fund |
|
UBS High Yield Fund |
|
UBS U.S. Bond Fund |
|
Options written, at value(6) |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
237,265 |
|
|
Securities sold short |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends payable for securities sold short |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued expenses |
|
|
95,405 |
|
|
|
39,413 |
|
|
|
203,918 |
|
|
|
107,527 |
|
|
|
75,044 |
|
|
|
101,708 |
|
|
|
79,026 |
|
|
Unrealized depreciation on forward foreign currency contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
995,447 |
|
|
|
700,199 |
|
|
|
|
|
|
|
|
|
|
Outstanding swap agreements, at value(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,437,464 |
|
|
|
|
|
|
|
|
|
|
|
936,964 |
|
|
Total liabilities |
|
|
466,529 |
|
|
|
52,349 |
|
|
|
8,041,186 |
|
|
|
22,530,442 |
|
|
|
1,654,467 |
|
|
|
2,871,804 |
|
|
|
9,743,918 |
|
|
Net assets |
|
$ |
139,267,048 |
|
|
$ |
5,923,271 |
|
|
$ |
462,065,838 |
|
|
$ |
553,817,007 |
|
|
$ |
123,263,574 |
|
|
$ |
106,514,346 |
|
|
$ |
194,494,951 |
|
|
Net assets consist of: |
|
Beneficial interest |
|
$ |
97,604,094 |
|
|
$ |
5,252,794 |
|
|
$ |
355,384,877 |
|
|
$ |
553,266,485 |
|
|
$ |
124,890,769 |
|
|
$ |
327,761,512 |
|
|
$ |
196,762,312 |
|
|
Accumulated undistributed (distributions in excess of) net investment income |
|
|
706,587 |
|
|
|
17,399 |
|
|
|
|
|
|
|
1,435,214 |
|
|
|
(1,066,893 |
) |
|
|
39,734 |
|
|
|
706,894 |
|
|
Accumulated undistributed net realized gain (loss) |
|
|
5,629,213 |
|
|
|
23,444 |
|
|
|
6,738,821 |
|
|
|
(1,545,289 |
) |
|
|
(724,121 |
) |
|
|
(221,288,194 |
) |
|
|
(3,537,858 |
) |
|
Net unrealized appreciation (depreciation) |
|
|
35,327,154 |
|
|
|
629,634 |
|
|
|
99,942,140 |
|
|
|
660,597 |
|
|
|
163,819 |
|
|
|
1,294 |
|
|
|
563,603 |
|
|
Net assets |
|
$ |
139,267,048 |
|
|
$ |
5,923,271 |
|
|
$ |
462,065,838 |
|
|
$ |
553,817,007 |
|
|
$ |
123,263,574 |
|
|
$ |
106,514,346 |
|
|
$ |
194,494,951 |
|
|
See accompanying notes to financial statements.
167
The UBS FundsFinancial statements
Statements of assets and liabilities (cont'd)
Net asset value, offering price and redemption value per share:
June 30, 2007
|
|
UBS Dynamic Alpha Fund |
|
UBS Global Allocation Fund |
|
UBS Global Equity Fund |
|
UBS International Equity Fund |
|
UBS U.S. Equity Alpha Fund(2) |
|
UBS U.S. Large Cap Equity Fund |
|
UBS U.S. Large Cap Growth Fund |
|
Class A: |
|
Net assets |
|
$ |
2,168,596,449 |
|
|
$ |
3,094,036,344 |
|
|
$ |
168,207,546 |
|
|
$ |
26,564,144 |
|
|
$ |
187,444,437 |
|
|
$ |
158,138,206 |
|
|
$ |
9,541,900 |
|
|
Shares outstanding |
|
|
189,976,822 |
|
|
|
208,972,221 |
|
|
|
10,873,469 |
|
|
|
2,045,572 |
|
|
|
16,226,035 |
|
|
|
7,461,849 |
|
|
|
893,691 |
|
|
Net asset value per share |
|
$ |
11.42 |
|
|
$ |
14.81 |
|
|
$ |
15.47 |
|
|
$ |
12.99 |
|
|
$ |
11.55 |
|
|
$ |
21.19 |
|
|
$ |
10.68 |
|
|
Offering price per share (NAV per share plus maximum sales charge)(1) |
|
$ |
12.08 |
|
|
$ |
15.67 |
|
|
$ |
16.37 |
|
|
$ |
13.75 |
|
|
$ |
12.22 |
|
|
$ |
22.42 |
|
|
$ |
11.30 |
|
|
Redemption proceeds per share |
|
$ |
11.42 |
|
|
$ |
14.81 |
|
|
$ |
15.47 |
|
|
$ |
12.99 |
|
|
$ |
11.55 |
|
|
$ |
21.19 |
|
|
$ |
10.68 |
|
|
Class B: |
|
Net assets |
|
$ |
25,790,264 |
|
|
$ |
139,060,672 |
|
|
$ |
7,438,618 |
|
|
$ |
555,076 |
|
|
|
N/A |
|
|
$ |
870,191 |
|
|
$ |
215,740 |
|
|
Shares outstanding |
|
|
2,290,668 |
|
|
|
9,574,432 |
|
|
|
492,285 |
|
|
|
43,334 |
|
|
|
N/A |
|
|
|
42,119 |
|
|
|
21,031 |
|
|
Net asset value per share and offering price per share |
|
$ |
11.26 |
|
|
$ |
14.52 |
|
|
$ |
15.11 |
|
|
$ |
12.81 |
|
|
|
N/A |
|
|
$ |
20.66 |
|
|
$ |
10.26 |
|
|
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)(1) |
|
$ |
10.70 |
|
|
$ |
13.79 |
|
|
$ |
14.35 |
|
|
$ |
12.17 |
|
|
|
N/A |
|
|
$ |
19.63 |
|
|
$ |
9.75 |
|
|
Class C: |
|
Net assets |
|
$ |
579,916,367 |
|
|
$ |
1,274,538,993 |
|
|
$ |
52,378,056 |
|
|
$ |
2,576,415 |
|
|
$ |
42,749,582 |
|
|
$ |
10,590,848 |
|
|
$ |
986,246 |
|
|
Shares outstanding |
|
|
51,520,342 |
|
|
|
88,026,622 |
|
|
|
3,487,179 |
|
|
|
202,780 |
|
|
|
3,718,032 |
|
|
|
512,653 |
|
|
|
96,107 |
|
|
Net asset value per share and offering price per share |
|
$ |
11.26 |
|
|
$ |
14.48 |
|
|
$ |
15.02 |
|
|
$ |
12.71 |
|
|
$ |
11.50 |
|
|
$ |
20.66 |
|
|
$ |
10.26 |
|
|
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)(1) |
|
$ |
11.15 |
|
|
$ |
14.34 |
|
|
$ |
14.87 |
|
|
$ |
12.58 |
|
|
$ |
11.39 |
|
|
$ |
20.45 |
|
|
$ |
10.16 |
|
|
Class Y: |
|
Net assets |
|
$ |
478,785,440 |
|
|
$ |
648,479,009 |
|
|
$ |
180,027,065 |
|
|
$ |
172,149,603 |
|
|
$ |
5,404,717 |
|
|
$ |
833,023,399 |
|
|
$ |
62,528,868 |
|
|
Shares outstanding |
|
|
41,719,627 |
|
|
|
43,121,743 |
|
|
|
11,410,308 |
|
|
|
13,170,045 |
|
|
|
467,752 |
|
|
|
38,846,966 |
|
|
|
5,714,904 |
|
|
Net asset value per share, offering price and redemption value per share |
|
$ |
11.48 |
|
|
$ |
15.04 |
|
|
$ |
15.78 |
|
|
$ |
13.07 |
|
|
$ |
11.55 |
|
|
$ |
21.44 |
|
|
$ |
10.94 |
|
|
(1) For Class A, the maximum sales charge is 5.50%, except for the UBS Global Bond Fund, UBS U.S. Bond Fund, and the UBS High Yield Fund which is 4.50%, and UBS Absolute Return Bond Fund which is 2.50%. Classes B, C and Y have no front-end sales charges. For Class A, the maximum contingent deferred sales charge of 1.00% of the shares' offering price or the net asset value at the time of sales by the shareholder, whichever is less, is charged on sales of shares on original purchases of $1 million or more that were not subject to a front-end sales charge made within one year of the purchase date. For Class B, the maximum contingent deferred sales charge is 5.00%, Class C maximum contingent deferred sales charge is 1.00%, except for UBS Global Bond Fund, UBS U.S. Bond Fund and UBS High Yield Fund which is 0.75%, and UBS Absolute Return Bon
d Fund which is 0.50%. Class Y has no contingent deferred sales charges.
(2) UBS U.S. Equity Alpha Fund, UBS U.S. Mid Cap Growth Equity Fund and UBS Absolute Return Bond Fund currently do not offer Class B shares.
168
The UBS FundsFinancial statements
|
|
UBS U.S. Large Cap Value Equity Fund |
|
UBS U.S. Mid Cap Growth Equity Fund(2) |
|
UBS U.S. Small Cap Growth Fund |
|
UBS Absolute Return Bond Fund(2) |
|
UBS Global Bond Fund |
|
UBS High Yield Fund |
|
UBS U.S. Bond Fund |
|
Class A: |
|
Net assets |
|
$ |
113,213,371 |
|
|
$ |
261,288 |
|
|
$ |
149,361,699 |
|
|
$ |
257,180,446 |
|
|
$ |
14,093,405 |
|
|
$ |
45,030,873 |
|
|
$ |
29,356,389 |
|
|
Shares outstanding |
|
|
9,711,443 |
|
|
|
23,482 |
|
|
|
9,368,236 |
|
|
|
25,599,893 |
|
|
|
1,498,141 |
|
|
|
6,503,852 |
|
|
|
2,805,212 |
|
|
Net asset value per share |
|
$ |
11.66 |
|
|
$ |
11.13 |
|
|
$ |
15.94 |
|
|
$ |
10.05 |
|
|
$ |
9.41 |
|
|
$ |
6.92 |
|
|
$ |
10.46 |
|
|
Offering price per share (NAV per share plus maximum sales charge)(1) |
|
$ |
12.34 |
|
|
$ |
11.78 |
|
|
$ |
16.87 |
|
|
$ |
10.31 |
|
|
$ |
9.85 |
|
|
$ |
7.25 |
|
|
$ |
10.95 |
|
|
Redemption proceeds per share |
|
$ |
11.66 |
|
|
$ |
11.13 |
|
|
$ |
15.94 |
|
|
$ |
10.05 |
|
|
$ |
9.41 |
|
|
$ |
6.92 |
|
|
$ |
10.46 |
|
|
Class B: |
|
Net assets |
|
$ |
1,060,524 |
|
|
|
N/A |
|
|
$ |
1,798,052 |
|
|
|
N/A |
|
|
$ |
214,744 |
|
|
$ |
2,385,875 |
|
|
$ |
441,728 |
|
|
Shares outstanding |
|
|
92,205 |
|
|
|
N/A |
|
|
|
117,899 |
|
|
|
N/A |
|
|
|
22,773 |
|
|
|
344,440 |
|
|
|
42,174 |
|
|
Net asset value per share and offering price per share |
|
$ |
11.50 |
|
|
|
N/A |
|
|
$ |
15.25 |
|
|
|
N/A |
|
|
$ |
9.43 |
|
|
$ |
6.93 |
|
|
$ |
10.47 |
|
|
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)(1) |
|
$ |
10.93 |
|
|
|
N/A |
|
|
$ |
14.49 |
|
|
|
N/A |
|
|
$ |
8.96 |
|
|
$ |
6.58 |
|
|
$ |
9.95 |
|
|
Class C: |
|
Net assets |
|
$ |
15,919,136 |
|
|
$ |
81,585 |
|
|
$ |
7,877,186 |
|
|
$ |
37,547,917 |
|
|
$ |
1,490,599 |
|
|
$ |
11,330,023 |
|
|
$ |
1,524,845 |
|
|
Shares outstanding |
|
|
1,393,745 |
|
|
|
7,395 |
|
|
|
517,187 |
|
|
|
3,739,571 |
|
|
|
158,866 |
|
|
|
1,635,916 |
|
|
|
145,922 |
|
|
Net asset value per share and offering price per share |
|
$ |
11.42 |
|
|
$ |
11.03 |
|
|
$ |
15.23 |
|
|
$ |
10.04 |
|
|
$ |
9.38 |
|
|
$ |
6.93 |
|
|
$ |
10.45 |
|
|
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)(1) |
|
$ |
11.31 |
|
|
$ |
10.92 |
|
|
$ |
15.08 |
|
|
$ |
9.99 |
|
|
$ |
9.31 |
|
|
$ |
6.88 |
|
|
$ |
10.37 |
|
|
Class Y: |
|
Net assets |
|
$ |
9,074,017 |
|
|
$ |
5,580,398 |
|
|
$ |
303,028,901 |
|
|
$ |
259,088,644 |
|
|
$ |
107,464,826 |
|
|
$ |
47,767,575 |
|
|
$ |
163,171,989 |
|
|
Shares outstanding |
|
|
774,783 |
|
|
|
500,608 |
|
|
|
18,501,987 |
|
|
|
25,775,228 |
|
|
|
10,288,482 |
|
|
|
6,862,669 |
|
|
|
15,596,702 |
|
|
Net asset value per share, offering price and redemption value per share |
|
$ |
11.71 |
|
|
$ |
11.15 |
|
|
$ |
16.38 |
|
|
$ |
10.05 |
|
|
$ |
10.45 |
|
|
$ |
6.96 |
|
|
$ |
10.46 |
|
|
See accompanying notes to financial statements.
169
The UBS FundsFinancial statements
Statements of operations
For the year ended June 30, 2007
|
|
UBS Dynamic Alpha Fund |
|
UBS Global Allocation Fund |
|
UBS Global Equity Fund |
|
UBS International Equity Fund |
|
UBS U.S. Equity Alpha Fund(1) |
|
UBS U.S. Large Cap Equity Fund |
|
UBS U.S. Large Cap Growth Fund |
|
Investment income: |
|
Dividends |
|
$ |
22,551,891 |
|
|
$ |
56,597,535 |
|
|
$ |
9,927,424 |
|
|
$ |
5,750,967 |
|
|
$ |
2,846,504 |
|
|
$ |
14,086,725 |
|
|
$ |
377,132 |
|
|
Interest and other |
|
|
14,868,231 |
|
|
|
44,921,116 |
|
|
|
23,062 |
|
|
|
11,588 |
|
|
|
|
|
|
|
63,909 |
|
|
|
9,970 |
|
|
Affiliated interest |
|
|
4,500,231 |
|
|
|
9,356,035 |
|
|
|
112,243 |
|
|
|
97,594 |
|
|
|
70,593 |
|
|
|
1,596,771 |
|
|
|
41,798 |
|
|
Securities lending-net |
|
|
|
|
|
|
981,323 |
|
|
|
|
|
|
|
186,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign tax withheld |
|
|
(3,114,831 |
) |
|
|
(2,239,354 |
) |
|
|
(520,961 |
) |
|
|
(552,372 |
) |
|
|
|
|
|
|
|
|
|
|
(6,991 |
) |
|
Total income |
|
|
38,805,522 |
|
|
|
109,616,655 |
|
|
|
9,541,768 |
|
|
|
5,494,496 |
|
|
|
2,917,097 |
|
|
|
15,747,405 |
|
|
|
421,909 |
|
|
Expenses: |
|
Advisory and administration fees |
|
|
25,988,983 |
|
|
|
34,203,353 |
|
|
|
3,561,370 |
|
|
|
1,818,557 |
|
|
|
1,428,904 |
|
|
|
6,159,091 |
|
|
|
285,101 |
|
|
Service and distribution fees: |
|
Class A |
|
|
5,291,704 |
|
|
|
6,636,917 |
|
|
|
436,557 |
|
|
|
63,450 |
|
|
|
266,754 |
|
|
|
304,643 |
|
|
|
19,044 |
|
|
Class B |
|
|
302,447 |
|
|
|
1,527,044 |
|
|
|
101,955 |
|
|
|
6,157 |
|
|
|
|
|
|
|
9,583 |
|
|
|
3,438 |
|
|
Class C |
|
|
5,892,916 |
|
|
|
11,605,355 |
|
|
|
548,972 |
|
|
|
25,598 |
|
|
|
241,941 |
|
|
|
86,058 |
|
|
|
9,292 |
|
|
Transfer agency fees: |
|
Class A |
|
|
848,566 |
|
|
|
1,138,836 |
|
|
|
239,706 |
|
|
|
12,236 |
|
|
|
36,952 |
|
|
|
105,221 |
|
|
|
4,969 |
|
|
Class B |
|
|
22,425 |
|
|
|
134,455 |
|
|
|
19,961 |
|
|
|
1,031 |
|
|
|
|
|
|
|
969 |
|
|
|
578 |
|
|
Class C |
|
|
344,339 |
|
|
|
755,635 |
|
|
|
95,072 |
|
|
|
2,091 |
|
|
|
18,541 |
|
|
|
8,168 |
|
|
|
1,154 |
|
|
Class Y |
|
|
39,596 |
|
|
|
256,160 |
|
|
|
63,229 |
|
|
|
146,764 |
|
|
|
123 |
|
|
|
353,546 |
|
|
|
48,517 |
|
|
Custodian |
|
|
650,842 |
|
|
|
2,470,563 |
|
|
|
322,042 |
|
|
|
218,419 |
|
|
|
66,531 |
|
|
|
410,699 |
|
|
|
18,050 |
|
|
Federal and state registration |
|
|
164,822 |
|
|
|
119,011 |
|
|
|
39,576 |
|
|
|
46,630 |
|
|
|
13,548 |
|
|
|
72,921 |
|
|
|
43,485 |
|
|
Professional services |
|
|
65,246 |
|
|
|
69,019 |
|
|
|
88,650 |
|
|
|
64,860 |
|
|
|
88,879 |
|
|
|
81,231 |
|
|
|
49,668 |
|
|
Shareholder reports |
|
|
465,239 |
|
|
|
883,612 |
|
|
|
185,457 |
|
|
|
27,519 |
|
|
|
10,566 |
|
|
|
63,774 |
|
|
|
6,454 |
|
|
Trustees |
|
|
28,876 |
|
|
|
34,341 |
|
|
|
13,233 |
|
|
|
12,068 |
|
|
|
8,451 |
|
|
|
16,250 |
|
|
|
11,086 |
|
|
Offering costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
58,176 |
|
|
|
|
|
|
|
|
|
|
Dividend expense for securities sold short |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
441,389 |
|
|
|
|
|
|
|
|
|
|
Other |
|
|
180,372 |
|
|
|
274,191 |
|
|
|
37,547 |
|
|
|
28,109 |
|
|
|
6,468 |
|
|
|
54,249 |
|
|
|
6,466 |
|
|
Total operating expenses |
|
|
40,286,373 |
|
|
|
60,108,492 |
|
|
|
5,753,327 |
|
|
|
2,473,489 |
|
|
|
2,687,223 |
|
|
|
7,726,403 |
|
|
|
507,302 |
|
|
Fee waivers and/or expenses reimbursements by Advisor |
|
|
|
|
|
|
|
|
|
|
(276,821 |
) |
|
|
(299,152 |
) |
|
|
(65,098 |
) |
|
|
|
|
|
|
(182,286 |
) |
|
Net operating expenses |
|
|
40,286,373 |
|
|
|
60,108,492 |
|
|
|
5,476,506 |
|
|
|
2,174,337 |
|
|
|
2,622,125 |
|
|
|
7,726,403 |
|
|
|
325,016 |
|
|
Interest expense |
|
|
19,101 |
|
|
|
|
|
|
|
15,429 |
|
|
|
23,936 |
|
|
|
73,048 |
|
|
|
17,044 |
|
|
|
|
|
|
Net expenses |
|
|
40,305,474 |
|
|
|
60,108,492 |
|
|
|
5,491,935 |
|
|
|
2,198,273 |
|
|
|
2,695,173 |
|
|
|
7,743,447 |
|
|
|
325,016 |
|
|
Net investment income (loss) |
|
|
(1,499,952 |
) |
|
|
49,508,163 |
|
|
|
4,049,833 |
|
|
|
3,296,223 |
|
|
|
221,924 |
|
|
|
8,003,958 |
|
|
|
96,893 |
|
|
Net realized gain (loss) on: |
|
Investments |
|
|
196,898,714 |
|
|
|
257,517,874 |
|
|
|
47,349,234 |
|
|
|
19,385,917 |
|
|
|
7,498,806 |
|
|
|
37,034,397 |
|
|
|
1,439,799 |
|
|
Futures contracts |
|
|
(414,413,777 |
) |
|
|
(19,129,362 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,276,288 |
|
|
|
|
|
|
Foreign forward currency transactions |
|
|
(124,334,027 |
) |
|
|
(51,172,294 |
) |
|
|
(4,096,639 |
) |
|
|
(2,329,769 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Swap agreements |
|
|
(15,149,532 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold short |
|
|
(29,242 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(18,831 |
) |
|
|
|
|
|
|
|
|
|
Options written |
|
|
2,459,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) |
|
|
(354,568,730 |
) |
|
|
187,216,218 |
|
|
|
43,252,595 |
|
|
|
17,056,148 |
|
|
|
7,479,975 |
|
|
|
39,310,685 |
|
|
|
1,439,799 |
|
|
Change in net unrealized appreciation (depreciation) on: |
|
Investments |
|
|
443,992,050 |
|
|
|
382,605,420 |
|
|
|
35,626,418 |
|
|
|
26,758,386 |
|
|
|
17,565,792 |
|
|
|
103,861,374 |
|
|
|
3,681,852 |
|
|
Futures contracts |
|
|
41,776,704 |
|
|
|
4,037,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(350,666 |
) |
|
|
|
|
|
Foreign forward currency contracts |
|
|
(36,471,011 |
) |
|
|
(17,983,404 |
) |
|
|
(1,982,729 |
) |
|
|
(946,075 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Swap agreements |
|
|
(4,881,020 |
) |
|
|
483,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold short |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,107,002 |
) |
|
|
|
|
|
|
|
|
|
Translation of other assets and liabilities denominated in foreign currency |
|
|
(1,403,379 |
) |
|
|
(840,550 |
) |
|
|
5,344 |
|
|
|
8,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options written |
|
|
(605,137 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net unrealized appreciation (depreciation) |
|
|
442,408,207 |
|
|
|
368,302,791 |
|
|
|
33,649,033 |
|
|
|
25,820,477 |
|
|
|
15,458,790 |
|
|
|
103,510,708 |
|
|
|
3,681,852 |
|
|
Net realized and unrealized gain (loss) |
|
|
87,839,477 |
|
|
|
555,519,009 |
|
|
|
76,901,628 |
|
|
|
42,876,625 |
|
|
|
22,938,765 |
|
|
|
142,821,393 |
|
|
|
5,121,651 |
|
|
Net increase from payment by Advisor |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets resulting from operations |
|
$ |
86,339,525 |
|
|
$ |
605,027,172 |
|
|
$ |
80,951,461 |
|
|
$ |
46,172,848 |
|
|
$ |
23,160,689 |
|
|
$ |
150,825,351 |
|
|
$ |
5,218,544 |
|
|
(1) For the period September 26, 2006 (commencement of operations) to June 30,2007.
170
The UBS FundsFinancial statements
|
|
UBS U.S. Large Cap Value Equity Fund |
|
UBS U.S. Mid Cap Growth Equity Fund |
|
UBS U.S. Small Cap Growth Fund |
|
UBS Absolute Return Bond Fund |
|
UBS Global Bond Fund |
|
UBS High Yield Fund |
|
UBS U.S. Bond Fund |
|
Investment income: |
|
Dividends |
|
$ |
2,923,564 |
|
|
$ |
22,267 |
|
|
$ |
1,177,436 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
6,947 |
|
|
$ |
|
|
|
Interest and other |
|
|
|
|
|
|
|
|
|
|
1,469 |
|
|
|
21,563,480 |
|
|
|
3,981,825 |
|
|
|
8,782,818 |
|
|
|
6,461,836 |
|
|
Affiliated interest |
|
|
85,801 |
|
|
|
2,745 |
|
|
|
389,348 |
|
|
|
1,872,942 |
|
|
|
298,653 |
|
|
|
133,674 |
|
|
|
316,427 |
|
|
Securities lending-net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign tax withheld |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(68,050 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income |
|
|
3,009,365 |
|
|
|
25,012 |
|
|
|
1,568,253 |
|
|
|
23,368,372 |
|
|
|
4,280,478 |
|
|
|
8,923,439 |
|
|
|
6,778,263 |
|
|
Expenses: |
|
Advisory and administration fees |
|
|
1,052,049 |
|
|
|
49,249 |
|
|
|
4,169,290 |
|
|
|
3,317,163 |
|
|
|
809,664 |
|
|
|
719,803 |
|
|
|
1,003,407 |
|
|
Service and distribution fees: |
|
Class A |
|
|
276,619 |
|
|
|
508 |
|
|
|
379,714 |
|
|
|
379,866 |
|
|
|
38,595 |
|
|
|
127,664 |
|
|
|
80,625 |
|
|
Class B |
|
|
14,542 |
|
|
|
|
|
|
|
36,958 |
|
|
|
|
|
|
|
3,699 |
|
|
|
22,749 |
|
|
|
6,788 |
|
|
Class C |
|
|
156,461 |
|
|
|
693 |
|
|
|
78,611 |
|
|
|
186,081 |
|
|
|
12,512 |
|
|
|
89,784 |
|
|
|
11,499 |
|
|
Transfer agency fees: |
|
Class A |
|
|
97,601 |
|
|
|
281 |
|
|
|
554,712 |
|
|
|
156,608 |
|
|
|
33,361 |
|
|
|
82,319 |
|
|
|
36,015 |
|
|
Class B |
|
|
3,378 |
|
|
|
|
|
|
|
9,600 |
|
|
|
|
|
|
|
847 |
|
|
|
3,556 |
|
|
|
782 |
|
|
Class C |
|
|
17,901 |
|
|
|
136 |
|
|
|
19,985 |
|
|
|
22,247 |
|
|
|
1,422 |
|
|
|
18,917 |
|
|
|
1,528 |
|
|
Class Y |
|
|
9,268 |
|
|
|
|
|
|
|
422,016 |
|
|
|
36,230 |
|
|
|
84,373 |
|
|
|
44,091 |
|
|
|
76,461 |
|
|
Custodian |
|
|
56,517 |
|
|
|
2,727 |
|
|
|
235,783 |
|
|
|
342,791 |
|
|
|
77,480 |
|
|
|
31,412 |
|
|
|
63,293 |
|
|
Federal and state registration |
|
|
32,916 |
|
|
|
28,333 |
|
|
|
53,774 |
|
|
|
51,502 |
|
|
|
47,397 |
|
|
|
36,499 |
|
|
|
49,829 |
|
|
Professional services |
|
|
67,490 |
|
|
|
68,159 |
|
|
|
59,535 |
|
|
|
82,806 |
|
|
|
60,232 |
|
|
|
60,122 |
|
|
|
59,874 |
|
|
Shareholder reports |
|
|
54,154 |
|
|
|
5,060 |
|
|
|
74,665 |
|
|
|
78,405 |
|
|
|
27,193 |
|
|
|
59,299 |
|
|
|
22,882 |
|
|
Trustees |
|
|
11,907 |
|
|
|
12,519 |
|
|
|
13,470 |
|
|
|
14,219 |
|
|
|
9,663 |
|
|
|
11,396 |
|
|
|
11,479 |
|
|
Offering costs |
|
|
|
|
|
|
60,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend expense for securities sold short |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
14,012 |
|
|
|
3,153 |
|
|
|
38,259 |
|
|
|
34,477 |
|
|
|
13,595 |
|
|
|
10,549 |
|
|
|
20,009 |
|
|
Total operating expenses |
|
|
1,864,815 |
|
|
|
230,970 |
|
|
|
6,146,372 |
|
|
|
4,702,395 |
|
|
|
1,220,033 |
|
|
|
1,318,160 |
|
|
|
1,444,471 |
|
|
Fee waivers and/or expenses reimbursements by Advisor |
|
|
(263,098 |
) |
|
|
(165,848 |
) |
|
|
(1,001,626 |
) |
|
|
|
|
|
|
(159,638 |
) |
|
|
(64,770 |
) |
|
|
(297,638 |
) |
|
Net operating expenses |
|
|
1,601,717 |
|
|
|
65,122 |
|
|
|
5,144,746 |
|
|
|
4,702,395 |
|
|
|
1,060,395 |
|
|
|
1,253,390 |
|
|
|
1,146,833 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
478 |
|
|
|
|
|
|
|
|
|
|
Net expenses |
|
|
1,601,717 |
|
|
|
65,122 |
|
|
|
5,144,746 |
|
|
|
4,702,395 |
|
|
|
1,060,873 |
|
|
|
1,253,390 |
|
|
|
1,146,833 |
|
|
Net investment income (loss) |
|
|
1,407,648 |
|
|
|
(40,110 |
) |
|
|
(3,576,493 |
) |
|
|
18,665,977 |
|
|
|
3,219,605 |
|
|
|
7,670,049 |
|
|
|
5,631,430 |
|
|
Net realized gain (loss) on: |
|
Investments |
|
|
11,760,005 |
|
|
|
53,214 |
|
|
|
13,576,424 |
|
|
|
2,602,039 |
|
|
|
523,451 |
|
|
|
(905,916 |
) |
|
|
177,447 |
|
|
Futures contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,836,720 |
|
|
|
|
|
|
|
|
|
|
|
(144,350 |
) |
|
Foreign forward currency transactions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,031,971 |
) |
|
|
(1,567,742 |
) |
|
|
|
|
|
|
109 |
|
|
Swap agreements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(522,467 |
) |
|
|
|
|
|
|
|
|
|
|
163,040 |
|
|
Securities sold short |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options written |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,017 |
|
|
|
5,306 |
|
|
|
|
|
|
|
147,577 |
|
|
Net realized gain (loss) |
|
|
11,760,005 |
|
|
|
53,214 |
|
|
|
13,576,424 |
|
|
|
964,266 |
|
|
|
(1,038,985 |
) |
|
|
(905,916 |
) |
|
|
343,823 |
|
|
Change in net unrealized appreciation (depreciation) on: |
|
Investments |
|
|
12,654,030 |
|
|
|
802,159 |
|
|
|
51,793,775 |
|
|
|
(3,006,315 |
) |
|
|
(117,220 |
) |
|
|
2,131,556 |
|
|
|
2,664,728 |
|
|
Futures contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(251,406 |
) |
|
|
|
|
|
|
|
|
|
|
(10,916 |
) |
|
Foreign forward currency contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,182,073 |
) |
|
|
(312,353 |
) |
|
|
|
|
|
|
|
|
|
Swap agreements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
559,027 |
|
|
|
|
|
|
|
|
|
|
|
321,473 |
|
|
Securities sold short |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(222,316 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Translation of other assets and liabilities denominated in foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
104,203 |
|
|
|
6,335 |
|
|
|
|
|
|
|
(442 |
) |
|
Options written |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45,086 |
|
|
Change in net unrealized appreciation (depreciation) |
|
|
12,654,030 |
|
|
|
802,159 |
|
|
|
51,793,775 |
|
|
|
(4,998,880 |
) |
|
|
(423,238 |
) |
|
|
2,131,556 |
|
|
|
3,019,929 |
|
|
Net realized and unrealized gain (loss) |
|
|
24,414,035 |
|
|
|
855,373 |
|
|
|
65,370,199 |
|
|
|
(4,034,614 |
) |
|
|
(1,462,223 |
) |
|
|
1,225,640 |
|
|
|
3,363,752 |
|
|
Net increase from payment by Advisor |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,876 |
|
|
Net increase in net assets resulting from operations |
|
$ |
25,821,683 |
|
|
$ |
815,263 |
|
|
$ |
61,793,706 |
|
|
$ |
14,631,363 |
|
|
$ |
1,757,382 |
|
|
$ |
8,895,689 |
|
|
$ |
8,998,058 |
|
|
See accompanying notes to financial statements.
171
The UBS FundsFinancial statements
Statements of changes in net assets
|
|
UBS Dynamic Alpha Fund |
|
UBS Global Allocation Fund |
|
UBS Global Equity Fund |
|
|
|
Year Ended June 30, 2007 |
|
Year Ended June 30, 2006 |
|
Year Ended June 30, 2007 |
|
Year Ended June 30, 2006 |
|
Year Ended June 30, 2007 |
|
Year Ended June 30, 2006 |
|
Operations: |
|
Net investment income (loss) |
|
$ |
(1,499,952 |
) |
|
$ |
(15,660,466 |
) |
|
$ |
49,508,163 |
|
|
$ |
41,067,168 |
|
|
$ |
4,049,833 |
|
|
$ |
3,604,161 |
|
|
Net realized gain (loss) |
|
|
(354,568,730 |
) |
|
|
21,441,994 |
|
|
|
187,216,218 |
|
|
|
184,234,464 |
|
|
|
43,252,595 |
|
|
|
55,804,923 |
|
|
Change in net unrealized appreciation (depreciation) |
|
|
442,408,207 |
|
|
|
100,939,338 |
|
|
|
368,302,791 |
|
|
|
81,438,410 |
|
|
|
33,649,033 |
|
|
|
(6,400,532 |
) |
|
Net increase from payment by Advisor |
|
|
|
|
|
|
24,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets from operations |
|
|
86,339,525 |
|
|
|
106,745,732 |
|
|
|
605,027,172 |
|
|
|
306,740,042 |
|
|
|
80,951,461 |
|
|
|
53,008,552 |
|
|
Dividends and distributions to shareholders by class: |
|
Class A: |
|
Dividends from net investment income and net foreign currency gains |
|
|
(36,977 |
) |
|
|
(9,085,869 |
) |
|
|
(46,009,509 |
) |
|
|
(19,342,594 |
) |
|
|
(1,538,106 |
) |
|
|
(1,096,767 |
) |
|
Distributions from net realized gain |
|
|
|
|
|
|
|
|
|
|
(138,962,907 |
) |
|
|
(81,236,181 |
) |
|
|
|
|
|
|
|
|
|
Total Class A dividends and distributions |
|
|
(36,977 |
) |
|
|
(9,085,869 |
) |
|
|
(184,972,416 |
) |
|
|
(100,578,775 |
) |
|
|
(1,538,106 |
) |
|
|
(1,096,767 |
) |
|
Class B: |
|
Dividends from net investment income and net foreign currency gains |
|
|
|
|
|
|
(88,826 |
) |
|
|
(1,454,318 |
) |
|
|
(194,937 |
) |
|
|
(15,312 |
) |
|
|
|
|
|
Distributions from net realized gain |
|
|
|
|
|
|
|
|
|
|
(8,537,738 |
) |
|
|
(7,483,823 |
) |
|
|
|
|
|
|
|
|
|
Total Class B dividends and distributions |
|
|
|
|
|
|
(88,826 |
) |
|
|
(9,992,056 |
) |
|
|
(7,678,760 |
) |
|
|
(15,312 |
) |
|
|
|
|
|
Class C: |
|
Dividends from net investment income and net foreign currency gains |
|
|
|
|
|
|
(1,567,093 |
) |
|
|
(12,514,040 |
) |
|
|
(3,358,146 |
) |
|
|
(254,412 |
) |
|
|
|
|
|
Distributions from net realized gain |
|
|
|
|
|
|
|
|
|
|
(63,009,563 |
) |
|
|
(43,158,661 |
) |
|
|
|
|
|
|
|
|
|
Total Class C dividends and distributions |
|
|
|
|
|
|
(1,567,093 |
) |
|
|
(75,523,603 |
) |
|
|
(46,516,807 |
) |
|
|
(254,412 |
) |
|
|
|
|
|
Class Y: |
|
Dividends from net investment income and net foreign currency gains |
|
|
(9,903 |
) |
|
|
(1,349,644 |
) |
|
|
(10,584,281 |
) |
|
|
(4,969,313 |
) |
|
|
(2,156,504 |
) |
|
|
(1,345,824 |
) |
|
Distributions from net realized gain |
|
|
|
|
|
|
|
|
|
|
(28,466,966 |
) |
|
|
(17,133,687 |
) |
|
|
|
|
|
|
|
|
|
Total Class Y dividends and distributions |
|
|
(9,903 |
) |
|
|
(1,349,644 |
) |
|
|
(39,051,247 |
) |
|
|
(22,103,000 |
) |
|
|
(2,156,504 |
) |
|
|
(1,345,824 |
) |
|
Decrease in net assets from dividends and distributions |
|
|
(46,880 |
) |
|
|
(12,091,432 |
) |
|
|
(309,539,322 |
) |
|
|
(176,877,342 |
) |
|
|
(3,964,334 |
) |
|
|
(2,442,591 |
) |
|
Beneficial interest transactions: |
|
Shares sold |
|
|
1,484,636,528 |
|
|
|
1,998,280,696 |
|
|
|
1,457,963,124 |
|
|
|
1,296,886,409 |
|
|
|
81,018,863 |
|
|
|
170,054,722 |
|
|
Shares issued on reinvestment of dividends and distributions |
|
|
42,579 |
|
|
|
11,407,688 |
|
|
|
296,393,014 |
|
|
|
168,648,902 |
|
|
|
3,801,067 |
|
|
|
2,360,467 |
|
|
Shares redeemed |
|
|
(939,202,364 |
) |
|
|
(285,347,554 |
) |
|
|
(809,465,895 |
) |
|
|
(717,756,759 |
) |
|
|
(178,310,291 |
) |
|
|
(245,313,514 |
) |
|
Redemption fees |
|
|
181,216 |
|
|
|
129,393 |
|
|
|
104,285 |
|
|
|
86,029 |
|
|
|
4,771 |
|
|
|
3,939 |
|
|
Net increase (decrease) in net assets resulting from beneficial interest transactions |
|
|
545,657,959 |
|
|
|
1,724,470,223 |
|
|
|
944,994,528 |
|
|
|
747,864,581 |
|
|
|
(93,485,590 |
) |
|
|
(72,894,386 |
) |
|
Increase (decrease) in net assets |
|
|
631,950,604 |
|
|
|
1,819,124,523 |
|
|
|
1,240,482,378 |
|
|
|
877,727,281 |
|
|
|
(16,498,463 |
) |
|
|
(22,328,425 |
) |
|
Net assets, beginning of year |
|
|
2,621,137,916 |
|
|
|
802,013,393 |
|
|
|
3,915,632,640 |
|
|
|
3,037,905,359 |
|
|
|
424,549,748 |
|
|
|
446,878,173 |
|
|
Net assets, end of year |
|
$ |
3,253,088,520 |
|
|
$ |
2,621,137,916 |
|
|
$ |
5,156,115,018 |
|
|
$ |
3,915,632,640 |
|
|
$ |
408,051,285 |
|
|
$ |
424,549,748 |
|
|
Net assets include accumulated undistributed (distributions in excess of) net investment income |
|
$ |
(130,946,501 |
) |
|
$ |
(29,023,741 |
) |
|
$ |
(212,477 |
) |
|
$ |
53,621,431 |
|
|
$ |
241,492 |
|
|
$ |
3,906,219 |
|
|
(1) For the period September 26, 2006 (commencement of operations) to June 30, 2007.
172
The UBS FundsFinancial statements
|
|
UBS International Equity Fund |
|
UBS U.S. Equity Alpha Fund |
|
UBS U.S. Large Cap Equity Fund |
|
UBS U.S. Large Cap Growth Fund |
|
|
|
Year Ended June 30, 2007 |
|
Year Ended June 30, 2006 |
|
Period Ended June 30, 2007(1) |
|
Year Ended June 30, 2007 |
|
Year Ended June 30, 2006 |
|
Year Ended June 30, 2007 |
|
Year Ended June 30, 2006 |
|
Operations: |
|
Net investment income (loss) |
|
$ |
3,296,223 |
|
|
$ |
2,716,776 |
|
|
$ |
221,924 |
|
|
$ |
8,003,958 |
|
|
$ |
3,779,244 |
|
|
$ |
96,893 |
|
|
$ |
(14,502 |
) |
|
Net realized gain (loss) |
|
|
17,056,148 |
|
|
|
8,857,119 |
|
|
|
7,479,975 |
|
|
|
39,310,685 |
|
|
|
7,774,481 |
|
|
|
1,439,799 |
|
|
|
995,485 |
|
|
Change in net unrealized appreciation (depreciation) |
|
|
25,820,477 |
|
|
|
17,237,736 |
|
|
|
15,458,790 |
|
|
|
103,510,708 |
|
|
|
21,874,419 |
|
|
|
3,681,852 |
|
|
|
(635,956 |
) |
|
Net increase from payment by Advisor |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets from operations |
|
|
46,172,848 |
|
|
|
28,811,631 |
|
|
|
23,160,689 |
|
|
|
150,825,351 |
|
|
|
33,428,144 |
|
|
|
5,218,544 |
|
|
|
345,027 |
|
|
Dividends and distributions to shareholders by class: |
|
Class A: |
|
Dividends from net investment income and net foreign currency gains |
|
|
(228,735 |
) |
|
|
(195,160 |
) |
|
|
(112,683 |
) |
|
|
(589,980 |
) |
|
|
(303,204 |
) |
|
|
(4,031 |
) |
|
|
(1,122 |
) |
|
Distributions from net realized gain |
|
|
(1,094,747 |
) |
|
|
(721,446 |
) |
|
|
(127,187 |
) |
|
|
(3,618,463 |
) |
|
|
(1,172,120 |
) |
|
|
|
|
|
|
|
|
|
Total Class A dividends and distributions |
|
|
(1,323,482 |
) |
|
|
(916,606 |
) |
|
|
(239,870 |
) |
|
|
(4,208,443 |
) |
|
|
(1,475,324 |
) |
|
|
(4,031 |
) |
|
|
(1,122 |
) |
|
Class B: |
|
Dividends from net investment income and net foreign currency gains |
|
|
(428 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from net realized gain |
|
|
(29,133 |
) |
|
|
(25,067 |
) |
|
|
|
|
|
|
(30,560 |
) |
|
|
(19,225 |
) |
|
|
|
|
|
|
|
|
|
Total Class B dividends and distributions |
|
|
(29,561 |
) |
|
|
(25,067 |
) |
|
|
|
|
|
|
(30,560 |
) |
|
|
(19,225 |
) |
|
|
|
|
|
|
|
|
|
Class C: |
|
Dividends from net investment income and net foreign currency gains |
|
|
(6,311 |
) |
|
|
(3,051 |
) |
|
|
|
|
|
|
|
|
|
|
(2,197 |
) |
|
|
|
|
|
|
|
|
|
Distributions from net realized gain |
|
|
(114,736 |
) |
|
|
(64,762 |
) |
|
|
(30,761 |
) |
|
|
(277,580 |
) |
|
|
(96,623 |
) |
|
|
|
|
|
|
|
|
|
Total Class C dividends and distributions |
|
|
(121,047 |
) |
|
|
(67,813 |
) |
|
|
(30,761 |
) |
|
|
(277,580 |
) |
|
|
(98,820 |
) |
|
|
|
|
|
|
|
|
|
Class Y: |
|
Dividends from net investment income and net foreign currency gains |
|
|
(2,116,644 |
) |
|
|
(1,437,989 |
) |
|
|
(150 |
) |
|
|
(4,600,476 |
) |
|
|
(2,718,913 |
) |
|
|
(10,358 |
) |
|
|
(4,029 |
) |
|
Distributions from net realized gain |
|
|
(8,036,802 |
) |
|
|
(4,418,048 |
) |
|
|
(112 |
) |
|
|
(20,376,839 |
) |
|
|
(8,607,085 |
) |
|
|
|
|
|
|
|
|
|
Total Class Y dividends and distributions |
|
|
(10,153,446 |
) |
|
|
(5,856,037 |
) |
|
|
(262 |
) |
|
|
(24,977,315 |
) |
|
|
(11,325,998 |
) |
|
|
(10,358 |
) |
|
|
(4,029 |
) |
|
Decrease in net assets from dividends and distributions |
|
|
(11,627,536 |
) |
|
|
(6,865,523 |
) |
|
|
(270,893 |
) |
|
|
(29,493,898 |
) |
|
|
(12,919,367 |
) |
|
|
(14,389 |
) |
|
|
(5,151 |
) |
|
Beneficial interest transactions: |
|
Shares sold |
|
|
103,318,624 |
|
|
|
90,851,632 |
|
|
|
242,289,940 |
|
|
|
431,482,430 |
|
|
|
376,538,429 |
|
|
|
64,821,995 |
|
|
|
9,809,159 |
|
|
Shares issued on reinvestment of dividends and distributions |
|
|
11,499,707 |
|
|
|
6,761,683 |
|
|
|
262,664 |
|
|
|
27,311,261 |
|
|
|
11,937,737 |
|
|
|
14,250 |
|
|
|
5,096 |
|
|
Shares redeemed |
|
|
(121,601,827 |
) |
|
|
(76,610,266 |
) |
|
|
(29,868,602 |
) |
|
|
(216,543,622 |
) |
|
|
(166,331,009 |
) |
|
|
(9,570,585 |
) |
|
|
(4,576,426 |
) |
|
Redemption fees |
|
|
3,595 |
|
|
|
5,683 |
|
|
|
24,938 |
|
|
|
8,917 |
|
|
|
|
|
|
|
460 |
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from beneficial interest transactions |
|
|
(6,779,901 |
) |
|
|
21,008,732 |
|
|
|
212,708,940 |
|
|
|
242,258,986 |
|
|
|
222,145,157 |
|
|
|
55,266,120 |
|
|
|
5,237,829 |
|
|
Increase (decrease) in net assets |
|
|
27,765,411 |
|
|
|
42,954,840 |
|
|
|
235,598,736 |
|
|
|
363,590,439 |
|
|
|
242,653,934 |
|
|
|
60,470,275 |
|
|
|
5,577,705 |
|
|
Net assets, beginning of year |
|
|
174,079,827 |
|
|
|
131,124,987 |
|
|
|
|
|
|
|
639,032,205 |
|
|
|
396,378,271 |
|
|
|
12,802,479 |
|
|
|
7,224,774 |
|
|
Net assets, end of year |
|
$ |
201,845,238 |
|
|
$ |
174,079,827 |
|
|
$ |
235,598,736 |
|
|
$ |
1,002,622,644 |
|
|
$ |
639,032,205 |
|
|
$ |
73,272,754 |
|
|
$ |
12,802,479 |
|
|
Net assets include accumulated undistributed (distributions in excess of) net investment income |
|
$ |
1,638,529 |
|
|
$ |
2,257,631 |
|
|
$ |
212,931 |
|
|
$ |
4,684,713 |
|
|
$ |
1,871,207 |
|
|
$ |
63,458 |
|
|
$ |
(1 |
) |
|
See accompanying notes to financial statements.
173
The UBS FundsFinancial statements
Statements of changes in net assets
|
|
UBS U.S. Large Cap Value Equity Fund |
|
UBS U.S. Mid Cap Growth Equity Fund |
|
UBS U.S. Small Cap Growth Fund |
|
UBS Absolute Return Bond Fund |
|
|
|
Year Ended June 30, 2007 |
|
Year Ended June 30, 2006 |
|
Year Ended June 30, 2007 |
|
Period Ended June 30, 2006(1) |
|
Year Ended June 30, 2007 |
|
Year Ended June 30, 2006 |
|
Year Ended June 30, 2007 |
|
Year Ended June 30, 2006 |
|
Operations: |
|
Net investment income (loss) |
|
$ |
1,407,648 |
|
|
$ |
1,291,635 |
|
|
$ |
(40,110 |
) |
|
$ |
(8,226 |
) |
|
$ |
(3,576,493 |
) |
|
$ |
(2,555,008 |
) |
|
$ |
18,665,977 |
|
|
$ |
9,976,032 |
|
|
Net realized gain (loss) |
|
|
11,760,005 |
|
|
|
10,356,646 |
|
|
|
53,214 |
|
|
|
(29,770 |
) |
|
|
13,576,424 |
|
|
|
17,172,677 |
|
|
|
964,266 |
|
|
|
(331,116 |
) |
|
Change in net unrealized appreciation (depreciation) |
|
|
12,654,030 |
|
|
|
3,542,465 |
|
|
|
802,159 |
|
|
|
(172,525 |
) |
|
|
51,793,775 |
|
|
|
16,235,430 |
|
|
|
(4,998,880 |
) |
|
|
6,734,308 |
|
|
Net increase from payment by Advisor |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets from operations |
|
|
25,821,683 |
|
|
|
15,190,746 |
|
|
|
815,263 |
|
|
|
(210,521 |
) |
|
|
61,793,706 |
|
|
|
30,853,099 |
|
|
|
14,631,363 |
|
|
|
16,379,224 |
|
|
Dividends and distributions to shareholders by class: |
|
Class A: |
|
Dividends from net investment income and net foreign currency gains |
|
|
(1,076,729 |
) |
|
|
(1,180,726 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,516,653 |
) |
|
|
(4,903,230 |
) |
|
Distributions from net realized gain |
|
|
(8,837,350 |
) |
|
|
(9,995,542 |
) |
|
|
|
|
|
|
|
|
|
|
(4,757,748 |
) |
|
|
(5,311,677 |
) |
|
|
(1,927,672 |
) |
|
|
(150,694 |
) |
|
Total Class A dividends and distributions |
|
|
(9,914,079 |
) |
|
|
(11,176,268 |
) |
|
|
|
|
|
|
|
|
|
|
(4,757,748 |
) |
|
|
(5,311,677 |
) |
|
|
(9,444,325 |
) |
|
|
(5,053,924 |
) |
|
Class B: |
|
Dividends from net investment income and net foreign currency gains |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from net realized gain |
|
|
(112,812 |
) |
|
|
(300,968 |
) |
|
|
|
|
|
|
|
|
|
|
(135,148 |
) |
|
|
(331,063 |
) |
|
|
|
|
|
|
|
|
|
Total Class B dividends and distributions |
|
|
(112,812 |
) |
|
|
(300,968 |
) |
|
|
|
|
|
|
|
|
|
|
(135,148 |
) |
|
|
(331,063 |
) |
|
|
|
|
|
|
|
|
|
Class C: |
|
Dividends from net investment income and net foreign currency gains |
|
|
(29,335 |
) |
|
|
(62,311 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(987,564 |
) |
|
|
(625,870 |
) |
|
Distributions from net realized gain |
|
|
(1,255,982 |
) |
|
|
(1,645,112 |
) |
|
|
|
|
|
|
|
|
|
|
(254,106 |
) |
|
|
(350,676 |
) |
|
|
(290,753 |
) |
|
|
(22,526 |
) |
|
Total Class C dividends and distributions |
|
|
(1,285,317 |
) |
|
|
(1,707,423 |
) |
|
|
|
|
|
|
|
|
|
|
(254,106 |
) |
|
|
(350,676 |
) |
|
|
(1,278,317 |
) |
|
|
(648,396 |
) |
|
Class Y: |
|
Dividends from net investment income and net foreign currency gains |
|
|
(90,763 |
) |
|
|
(84,236 |
) |
|
|
(6,100 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,668,427 |
) |
|
|
(5,273,291 |
) |
|
Distributions from net realized gain |
|
|
(595,960 |
) |
|
|
(580,926 |
) |
|
|
|
|
|
|
|
|
|
|
(8,601,303 |
) |
|
|
(7,818,200 |
) |
|
|
(1,801,190 |
) |
|
|
(171,039 |
) |
|
Total Class Y dividends and distributions |
|
|
(686,723 |
) |
|
|
(665,162 |
) |
|
|
(6,100 |
) |
|
|
|
|
|
|
(8,601,303 |
) |
|
|
(7,818,200 |
) |
|
|
(9,469,617 |
) |
|
|
(5,444,330 |
) |
|
Decrease in net assets from dividends and distributions |
|
|
(11,998,931 |
) |
|
|
(13,849,821 |
) |
|
|
(6,100 |
) |
|
|
|
|
|
|
(13,748,305 |
) |
|
|
(13,811,616 |
) |
|
|
(20,192,259 |
) |
|
|
(11,146,650 |
) |
|
Beneficial interest transactions: |
|
Shares sold |
|
|
7,885,699 |
|
|
|
9,482,763 |
|
|
|
426,342 |
|
|
|
5,456,508 |
|
|
|
121,643,837 |
|
|
|
237,309,281 |
|
|
|
237,542,541 |
|
|
|
431,394,854 |
|
|
Shares issued on reinvestment of dividends and distributions |
|
|
10,871,379 |
|
|
|
12,467,214 |
|
|
|
6,100 |
|
|
|
|
|
|
|
12,462,455 |
|
|
|
12,644,348 |
|
|
|
19,483,491 |
|
|
|
9,518,443 |
|
|
Shares redeemed |
|
|
(23,854,078 |
) |
|
|
(26,716,957 |
) |
|
|
(351,835 |
) |
|
|
(212,486 |
) |
|
|
(155,442,604 |
) |
|
|
(107,414,142 |
) |
|
|
(173,470,533 |
) |
|
|
(112,686,324 |
) |
|
Redemption fees |
|
|
51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,049 |
|
|
|
|
|
|
|
13,208 |
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from beneficial interest transactions |
|
|
(5,096,949 |
) |
|
|
(4,766,980 |
) |
|
|
80,607 |
|
|
|
5,244,022 |
|
|
|
(21,333,263 |
) |
|
|
142,539,487 |
|
|
|
83,568,707 |
|
|
|
328,226,973 |
|
|
Increase (decrease) in net assets |
|
|
8,725,803 |
|
|
|
(3,426,055 |
) |
|
|
889,770 |
|
|
|
5,033,501 |
|
|
|
26,712,138 |
|
|
|
159,580,970 |
|
|
|
78,007,811 |
|
|
|
333,459,547 |
|
|
Net assets, beginning of year |
|
|
130,541,245 |
|
|
|
133,967,300 |
|
|
|
5,033,501 |
|
|
|
|
|
|
|
435,353,700 |
|
|
|
275,772,730 |
|
|
|
475,809,196 |
|
|
|
142,349,649 |
|
|
Net assets, end of year |
|
$ |
139,267,048 |
|
|
$ |
130,541,245 |
|
|
$ |
5,923,271 |
|
|
$ |
5,033,501 |
|
|
$ |
462,065,838 |
|
|
$ |
435,353,700 |
|
|
$ |
553,817,007 |
|
|
$ |
475,809,196 |
|
|
Net assets include accumulated undistributed (distributions in excess of) net investment income |
|
$ |
706,587 |
|
|
$ |
495,766 |
|
|
$ |
17,399 |
|
|
$ |
3,189 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
1,435,214 |
|
|
$ |
(2,424,803 |
) |
|
(1) For the period March 27, 2006 (commencement of operations) to June 30, 2006.
174
The UBS FundsFinancial statements
|
|
UBS Global Bond Fund |
|
UBS High Yield Fund |
|
UBS U.S. Bond Fund |
|
|
|
Year Ended June 30, 2007 |
|
Year Ended June 30, 2006 |
|
Year Ended June 30, 2007 |
|
Year Ended June 30, 2006 |
|
Year Ended June 30, 2007 |
|
Year Ended June 30, 2006 |
|
Operations: |
|
Net investment income (loss) |
|
$ |
3,219,605 |
|
|
$ |
1,677,373 |
|
|
$ |
7,670,049 |
|
|
$ |
8,604,450 |
|
|
$ |
5,631,430 |
|
|
$ |
5,381,409 |
|
|
Net realized gain (loss) |
|
|
(1,038,985 |
) |
|
|
(1,560,529 |
) |
|
|
(905,916 |
) |
|
|
(5,692,387 |
) |
|
|
343,823 |
|
|
|
(1,824,329 |
) |
|
Change in net unrealized appreciation (depreciation) |
|
|
(423,238 |
) |
|
|
546,413 |
|
|
|
2,131,556 |
|
|
|
1,762,732 |
|
|
|
3,019,929 |
|
|
|
(3,637,609 |
) |
|
Net increase from payment by Advisor |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,876 |
|
|
|
|
|
|
Net increase (decrease) in net assets from operations |
|
|
1,757,382 |
|
|
|
663,257 |
|
|
|
8,895,689 |
|
|
|
4,674,795 |
|
|
|
8,998,058 |
|
|
|
(80,529 |
) |
|
Dividends and distributions to shareholders by class: |
|
Class A: |
|
Dividends from net investment income and net foreign currency gains |
|
|
(398,966 |
) |
|
|
(649,130 |
) |
|
|
(3,973,940 |
) |
|
|
(4,659,800 |
) |
|
|
(1,135,733 |
) |
|
|
(1,516,248 |
) |
|
Distributions from net realized gain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Class A dividends and distributions |
|
|
(398,966 |
) |
|
|
(649,130 |
) |
|
|
(3,973,940 |
) |
|
|
(4,659,800 |
) |
|
|
(1,135,733 |
) |
|
|
(1,516,248 |
) |
|
Class B: |
|
Dividends from net investment income and net foreign currency gains |
|
|
(6,617 |
) |
|
|
(17,832 |
) |
|
|
(159,102 |
) |
|
|
(204,232 |
) |
|
|
(19,345 |
) |
|
|
(39,737 |
) |
|
Distributions from net realized gain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Class B dividends and distributions |
|
|
(6,617 |
) |
|
|
(17,832 |
) |
|
|
(159,102 |
) |
|
|
(204,232 |
) |
|
|
(19,345 |
) |
|
|
(39,737 |
) |
|
Class C: |
|
Dividends from net investment income and net foreign currency gains |
|
|
(33,975 |
) |
|
|
(86,788 |
) |
|
|
(870,935 |
) |
|
|
(1,018,907 |
) |
|
|
(46,306 |
) |
|
|
(60,177 |
) |
|
Distributions from net realized gain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Class C dividends and distributions |
|
|
(33,975 |
) |
|
|
(86,788 |
) |
|
|
(870,935 |
) |
|
|
(1,018,907 |
) |
|
|
(46,306 |
) |
|
|
(60,177 |
) |
|
Class Y: |
|
Dividends from net investment income and net foreign currency gains |
|
|
(2,467,037 |
) |
|
|
(2,208,907 |
) |
|
|
(3,345,623 |
) |
|
|
(2,732,863 |
) |
|
|
(5,264,231 |
) |
|
|
(4,288,926 |
) |
|
Distributions from net realized gain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Class Y dividends and distributions |
|
|
(2,467,037 |
) |
|
|
(2,208,907 |
) |
|
|
(3,345,623 |
) |
|
|
(2,732,863 |
) |
|
|
(5,264,231 |
) |
|
|
(4,288,926 |
) |
|
Decrease in net assets from dividends and distributions |
|
|
(2,906,595 |
) |
|
|
(2,962,657 |
) |
|
|
(8,349,600 |
) |
|
|
(8,615,802 |
) |
|
|
(6,465,615 |
) |
|
|
(5,905,088 |
) |
|
Beneficial interest transactions: |
|
Shares sold |
|
|
61,327,924 |
|
|
|
58,131,940 |
|
|
|
33,241,831 |
|
|
|
29,236,468 |
|
|
|
90,314,904 |
|
|
|
69,892,399 |
|
|
Shares issued on reinvestment of dividends and distributions |
|
|
2,833,920 |
|
|
|
2,730,438 |
|
|
|
5,740,511 |
|
|
|
5,497,236 |
|
|
|
5,950,248 |
|
|
|
5,248,275 |
|
|
Shares redeemed |
|
|
(38,678,925 |
) |
|
|
(32,916,738 |
) |
|
|
(31,825,332 |
) |
|
|
(48,270,220 |
) |
|
|
(43,454,878 |
) |
|
|
(77,542,857 |
) |
|
Redemption fees |
|
|
2,168 |
|
|
|
|
|
|
|
722 |
|
|
|
|
|
|
|
2,659 |
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from beneficial interest transactions |
|
|
25,485,087 |
|
|
|
27,945,640 |
|
|
|
7,157,732 |
|
|
|
(13,536,516 |
) |
|
|
52,812,933 |
|
|
|
(2,402,183 |
) |
|
Increase (decrease) in net assets |
|
|
24,335,874 |
|
|
|
25,646,240 |
|
|
|
7,703,821 |
|
|
|
(17,477,523 |
) |
|
|
55,345,376 |
|
|
|
(8,387,800 |
) |
|
Net assets, beginning of year |
|
|
98,927,700 |
|
|
|
73,281,460 |
|
|
|
98,810,525 |
|
|
|
116,288,048 |
|
|
|
139,149,575 |
|
|
|
147,537,375 |
|
|
Net assets, end of year |
|
$ |
123,263,574 |
|
|
$ |
98,927,700 |
|
|
$ |
106,514,346 |
|
|
$ |
98,810,525 |
|
|
$ |
194,494,951 |
|
|
$ |
139,149,575 |
|
|
Net assets include accumulated undistributed (distributions in excess of) net investment income |
|
$ |
(1,066,893 |
) |
|
$ |
(532,682 |
) |
|
$ |
39,734 |
|
|
$ |
169,574 |
|
|
$ |
706,894 |
|
|
$ |
48,987 |
|
|
See accompanying notes to financial statements.
175
UBS Dynamic Alpha FundFinancial highlights
The table below sets forth financial data for one share of beneficial interest outstanding throughout
each period presented.
|
|
Class A |
|
|
|
Year ended June 30, |
|
For the period ended |
|
|
|
2007 |
|
2006 |
|
June 30, 2005(5) |
|
Net asset value, beginning of period |
|
$ |
11.04 |
|
|
$ |
10.22 |
|
|
$ |
10.00 |
|
|
Net investment income (loss)(1) |
|
|
0.01 |
|
|
|
(0.09 |
) |
|
|
(0.04 |
) |
|
Net realized and unrealized gain from investment activities |
|
|
0.37 |
|
|
|
1.01 |
|
|
|
0.26 |
|
|
Total income from investment operations |
|
|
0.38 |
|
|
|
0.92 |
|
|
|
0.22 |
|
|
Dividends from net investment income |
|
|
0.00 |
(3) |
|
|
(0.10 |
) |
|
|
|
|
|
Net increase from payment by advisor |
|
|
|
|
|
|
0.00 |
(3) |
|
|
|
|
|
Net asset value, end of period |
|
$ |
11.42 |
|
|
$ |
11.04 |
|
|
$ |
10.22 |
|
|
Total investment return(2) |
|
|
3.44 |
% |
|
|
9.02 |
%(4) |
|
|
2.20 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of period (in 000s) |
|
$ |
2,168,596 |
|
|
$ |
1,777,329 |
|
|
$ |
528,088 |
|
|
Ratio of expenses to average net assets |
|
|
1.17 |
% |
|
|
1.20 |
% |
|
|
1.32 |
%(6) |
|
Net investment income (loss) to average net assets |
|
|
0.06 |
% |
|
|
(0.80 |
)% |
|
|
(1.04 |
)%(6) |
|
Portfolio turnover |
|
|
28 |
% |
|
|
38 |
% |
|
|
6 |
% |
|
|
|
Class B |
|
|
|
Year ended June 30, |
|
For the period ended |
|
|
|
2007 |
|
2006 |
|
June 30, 2005(5) |
|
Net asset value, beginning of period |
|
$ |
10.98 |
|
|
$ |
10.19 |
|
|
$ |
10.00 |
|
|
Net investment income (loss)(1) |
|
|
(0.09 |
) |
|
|
(0.17 |
) |
|
|
(0.08 |
) |
|
Net realized and unrealized gain from investment activities |
|
|
0.37 |
|
|
|
1.00 |
|
|
|
0.27 |
|
|
Total income from investment operations |
|
|
0.28 |
|
|
|
0.83 |
|
|
|
0.19 |
|
|
Dividends from net investment income |
|
|
|
|
|
|
(0.04 |
) |
|
|
|
|
|
Net increase from payment by advisor |
|
|
|
|
|
|
0.00 |
(3) |
|
|
|
|
|
Net asset value, end of period |
|
$ |
11.26 |
|
|
$ |
10.98 |
|
|
$ |
10.19 |
|
|
Total investment return(2) |
|
|
2.64 |
% |
|
|
8.09 |
%(4) |
|
|
1.90 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of period (in 000s) |
|
$ |
25,790 |
|
|
$ |
30,051 |
|
|
$ |
14,815 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement/recoupment |
|
|
1.95 |
% |
|
|
1.98 |
% |
|
|
2.11 |
%(6) |
|
After expense reimbursement/recoupment |
|
|
1.95 |
% |
|
|
1.99 |
% |
|
|
2.10 |
%(6) |
|
Net investment income (loss) to average net assets |
|
|
(0.78 |
)% |
|
|
(1.59 |
)% |
|
|
(1.82 |
)%(6) |
|
Portfolio turnover |
|
|
28 |
% |
|
|
38 |
% |
|
|
6 |
% |
|
(1) The net investment income (loss) per share data was determined by using average shares outstanding throughout the period.
|
|
Class C |
|
|
|
Year ended June 30, |
|
For the period ended |
|
|
|
2007 |
|
2006 |
|
June 30, 2005(5) |
|
Net asset value, beginning of period |
|
$ |
10.97 |
|
|
$ |
10.19 |
|
|
$ |
10.00 |
|
|
Net investment income (loss)(1) |
|
|
(0.08 |
) |
|
|
(0.17 |
) |
|
|
(0.08 |
) |
|
Net realized and unrealized gain from investment activities |
|
|
0.37 |
|
|
|
1.00 |
|
|
|
0.27 |
|
|
Total income from investment operations |
|
|
0.29 |
|
|
|
0.83 |
|
|
|
0.19 |
|
|
Dividends from net investment income |
|
|
|
|
|
|
(0.05 |
) |
|
|
|
|
|
Net increase from payment by advisor |
|
|
|
|
|
|
0.00 |
(3) |
|
|
|
|
|
Net asset value, end of period |
|
$ |
11.26 |
|
|
$ |
10.97 |
|
|
$ |
10.19 |
|
|
Total investment return(2) |
|
|
2.64 |
% |
|
|
8.15 |
%(4) |
|
|
1.90 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of period (in 000s) |
|
$ |
579,916 |
|
|
$ |
520,754 |
|
|
$ |
202,891 |
|
|
Ratio of expenses to average net assets |
|
|
1.93 |
% |
|
|
1.97 |
% |
|
|
2.09 |
%(6) |
|
Net investment income (loss) to average net assets |
|
|
(0.72 |
)% |
|
|
(1.57 |
)% |
|
|
(1.81 |
)%(6) |
|
Portfolio turnover |
|
|
28 |
% |
|
|
38 |
% |
|
|
6 |
% |
|
|
|
Class Y |
|
|
|
Year ended June 30, |
|
For the period ended |
|
|
|
2007 |
|
2006 |
|
June 30, 2005(5) |
|
Net asset value, beginning of period |
|
$ |
11.07 |
|
|
$ |
10.23 |
|
|
$ |
10.00 |
|
|
Net investment income (loss)(1) |
|
|
0.05 |
|
|
|
(0.06 |
) |
|
|
(0.03 |
) |
|
Net realized and unrealized gain from investment activities |
|
|
0.36 |
|
|
|
1.02 |
|
|
|
0.26 |
|
|
Total income from investment operations |
|
|
0.41 |
|
|
|
0.96 |
|
|
|
0.23 |
|
|
Dividends from net investment income |
|
|
0.00 |
(3) |
|
|
(0.12 |
) |
|
|
|
|
|
Net increase from payment by advisor |
|
|
|
|
|
|
0.00 |
(3) |
|
|
|
|
|
Net asset value, end of period |
|
$ |
11.48 |
|
|
$ |
11.07 |
|
|
$ |
10.23 |
|
|
Total investment return(2) |
|
|
3.80 |
% |
|
|
9.28 |
%(4) |
|
|
2.30 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of period (in 000s) |
|
$ |
478,785 |
|
|
$ |
293,004 |
|
|
$ |
56,220 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement/recoupment |
|
|
0.89 |
% |
|
|
0.92 |
% |
|
|
1.00 |
%(6) |
|
After expense reimbursement/recoupment |
|
|
0.89 |
% |
|
|
0.92 |
% |
|
|
1.00 |
%(6) |
|
Net investment income (loss) to average net assets |
|
|
0.40 |
% |
|
|
(0.52 |
)% |
|
|
(0.72 |
)%(6) |
|
Portfolio turnover |
|
|
28 |
% |
|
|
38 |
% |
|
|
6 |
% |
|
(2) Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges; results would be lower if they were included. Total investment return for periods of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of Fund shares.
(3) Amount represents less than $0.005 per share.
(4) During the fiscal year ended June 30, 2006, the Fund's total investment return included a reimbursement by the Investment Advisor for amounts relating to a trading error that had an impact on the total return of less than 0.005%.
(5) For the period January 27, 2005 (commencement of operations) through June 30, 2005.
(6) Annualized.
176
See accompanying notes to financial statements.
177
UBS Global Allocation FundFinancial highlights
The table below sets forth financial data for one share of beneficial interest outstanding throughout
each period presented.
|
|
Class A |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
13.86 |
|
|
$ |
13.33 |
|
|
$ |
12.35 |
|
|
$ |
10.69 |
|
|
$ |
10.60 |
|
|
Net investment income(1) |
|
|
0.19 |
|
|
|
0.19 |
|
|
|
0.17 |
|
|
|
0.12 |
|
|
|
0.10 |
|
|
Net realized and unrealized gain from investment activities |
|
|
1.83 |
|
|
|
1.08 |
|
|
|
1.32 |
|
|
|
1.69 |
|
|
|
0.41 |
|
|
Total income from investment operations |
|
|
2.02 |
|
|
|
1.27 |
|
|
|
1.49 |
|
|
|
1.81 |
|
|
|
0.51 |
|
|
Dividends from net investment income |
|
|
(0.27 |
) |
|
|
(0.14 |
) |
|
|
(0.19 |
) |
|
|
(0.15 |
) |
|
|
(0.42 |
) |
|
Distributions from net realized gains |
|
|
(0.80 |
) |
|
|
(0.60 |
) |
|
|
(0.32 |
) |
|
|
|
|
|
|
|
|
|
Total dividends/distributions |
|
|
(1.07 |
) |
|
|
(0.74 |
) |
|
|
(0.51 |
) |
|
|
(0.15 |
) |
|
|
(0.42 |
) |
|
Net asset value, end of year |
|
$ |
14.81 |
|
|
$ |
13.86 |
|
|
$ |
13.33 |
|
|
$ |
12.35 |
|
|
$ |
10.69 |
|
|
Total investment return(2) |
|
|
14.93 |
% |
|
|
9.72 |
% |
|
|
12.11 |
% |
|
|
17.02 |
% |
|
|
5.35 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
3,094,036 |
|
|
$ |
2,246,289 |
|
|
$ |
1,594,113 |
|
|
$ |
876,636 |
|
|
$ |
175,415 |
|
|
Ratio of expenses to average net assets |
|
|
1.13 |
% |
|
|
1.14 |
% |
|
|
1.20 |
% |
|
|
1.28 |
% |
|
|
1.35 |
% |
|
Net investment income to average net assets |
|
|
1.28 |
% |
|
|
1.41 |
% |
|
|
1.34 |
% |
|
|
1.00 |
% |
|
|
0.98 |
% |
|
Portfolio turnover |
|
|
74 |
% |
|
|
83 |
% |
|
|
84 |
% |
|
|
78 |
% |
|
|
66 |
% |
|
|
|
Class B |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
13.60 |
|
|
$ |
13.08 |
|
|
$ |
12.14 |
|
|
$ |
10.55 |
|
|
$ |
10.52 |
|
|
Net investment income(1) |
|
|
0.07 |
|
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
Net realized and unrealized gain from investment activities |
|
|
1.79 |
|
|
|
1.06 |
|
|
|
1.29 |
|
|
|
1.68 |
|
|
|
0.41 |
|
|
Total income from investment operations |
|
|
1.86 |
|
|
|
1.14 |
|
|
|
1.37 |
|
|
|
1.70 |
|
|
|
0.43 |
|
|
Dividends from net investment income |
|
|
(0.14 |
) |
|
|
(0.02 |
) |
|
|
(0.11 |
) |
|
|
(0.11 |
) |
|
|
(0.40 |
) |
|
Distributions from net realized gains |
|
|
(0.80 |
) |
|
|
(0.60 |
) |
|
|
(0.32 |
) |
|
|
|
|
|
|
|
|
|
Total dividends/distributions |
|
|
(0.94 |
) |
|
|
(0.62 |
) |
|
|
(0.43 |
) |
|
|
(0.11 |
) |
|
|
(0.40 |
) |
|
Net asset value, end of year |
|
$ |
14.52 |
|
|
$ |
13.60 |
|
|
$ |
13.08 |
|
|
$ |
12.14 |
|
|
$ |
10.55 |
|
|
Total investment return(2) |
|
|
13.96 |
% |
|
|
8.81 |
% |
|
|
11.24 |
% |
|
|
16.14 |
% |
|
|
4.60 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
139,061 |
|
|
$ |
161,704 |
|
|
$ |
184,359 |
|
|
$ |
153,481 |
|
|
$ |
49,573 |
|
|
Ratio of expenses to average net assets |
|
|
1.93 |
% |
|
|
1.95 |
% |
|
|
1.96 |
% |
|
|
2.09 |
% |
|
|
2.10 |
% |
|
Net investment income to average net assets |
|
|
0.48 |
% |
|
|
0.60 |
% |
|
|
0.58 |
% |
|
|
0.19 |
% |
|
|
0.23 |
% |
|
Portfolio turnover |
|
|
74 |
% |
|
|
83 |
% |
|
|
84 |
% |
|
|
78 |
% |
|
|
66 |
% |
|
(1) The net investment income per share data was determined by using average shares outstanding throughout the year.
|
|
Class C |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
13.58 |
|
|
$ |
13.09 |
|
|
$ |
12.15 |
|
|
$ |
10.56 |
|
|
$ |
10.54 |
|
|
Net investment income(1) |
|
|
0.07 |
|
|
|
0.09 |
|
|
|
0.09 |
|
|
|
0.03 |
|
|
|
0.02 |
|
|
Net realized and unrealized gain from investment activities |
|
|
1.79 |
|
|
|
1.05 |
|
|
|
1.29 |
|
|
|
1.68 |
|
|
|
0.41 |
|
|
Total income from investment operations |
|
|
1.86 |
|
|
|
1.14 |
|
|
|
1.38 |
|
|
|
1.71 |
|
|
|
0.43 |
|
|
Dividends from net investment income |
|
|
(0.16 |
) |
|
|
(0.05 |
) |
|
|
(0.12 |
) |
|
|
(0.12 |
) |
|
|
(0.41 |
) |
|
Distributions from net realized gains |
|
|
(0.80 |
) |
|
|
(0.60 |
) |
|
|
(0.32 |
) |
|
|
|
|
|
|
|
|
|
Total dividends/distributions |
|
|
(0.96 |
) |
|
|
(0.65 |
) |
|
|
(0.44 |
) |
|
|
(0.12 |
) |
|
|
(0.41 |
) |
|
Net asset value, end of year |
|
$ |
14.48 |
|
|
$ |
13.58 |
|
|
$ |
13.09 |
|
|
$ |
12.15 |
|
|
$ |
10.56 |
|
|
Total investment return(2) |
|
|
14.02 |
% |
|
|
8.82 |
% |
|
|
11.32 |
% |
|
|
16.19 |
% |
|
|
4.55 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
1,274,539 |
|
|
$ |
1,044,517 |
|
|
$ |
903,280 |
|
|
$ |
539,399 |
|
|
$ |
137,078 |
|
|
Ratio of expenses to average net assets |
|
|
1.90 |
% |
|
|
1.91 |
% |
|
|
1.95 |
% |
|
|
2.06 |
% |
|
|
2.10 |
% |
|
Net investment income to average net assets |
|
|
0.51 |
% |
|
|
0.64 |
% |
|
|
0.59 |
% |
|
|
0.23 |
% |
|
|
0.23 |
% |
|
Portfolio turnover |
|
|
74 |
% |
|
|
83 |
% |
|
|
84 |
% |
|
|
78 |
% |
|
|
66 |
% |
|
|
|
Class Y |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
14.06 |
|
|
$ |
13.51 |
|
|
$ |
12.50 |
|
|
$ |
10.79 |
|
|
$ |
10.69 |
|
|
Net investment income(1) |
|
|
0.23 |
|
|
|
0.23 |
|
|
|
0.22 |
|
|
|
0.15 |
|
|
|
0.12 |
|
|
Net realized and unrealized gain from investment activities |
|
|
1.85 |
|
|
|
1.09 |
|
|
|
1.33 |
|
|
|
1.73 |
|
|
|
0.41 |
|
|
Total income from investment operations |
|
|
2.08 |
|
|
|
1.32 |
|
|
|
1.55 |
|
|
|
1.88 |
|
|
|
0.53 |
|
|
Dividends from net investment income |
|
|
(0.30 |
) |
|
|
(0.17 |
) |
|
|
(0.22 |
) |
|
|
(0.17 |
) |
|
|
(0.43 |
) |
|
Distributions from net realized gains |
|
|
(0.80 |
) |
|
|
(0.60 |
) |
|
|
(0.32 |
) |
|
|
|
|
|
|
|
|
|
Total dividends/distributions |
|
|
(1.10 |
) |
|
|
(0.77 |
) |
|
|
(0.54 |
) |
|
|
(0.17 |
) |
|
|
(0.43 |
) |
|
Net asset value, end of year |
|
$ |
15.04 |
|
|
$ |
14.06 |
|
|
$ |
13.51 |
|
|
$ |
12.50 |
|
|
$ |
10.79 |
|
|
Total investment return(2) |
|
|
15.18 |
% |
|
|
9.98 |
% |
|
|
12.40 |
% |
|
|
17.44 |
% |
|
|
5.50 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
648,479 |
|
|
$ |
463,122 |
|
|
$ |
356,154 |
|
|
$ |
263,675 |
|
|
$ |
193,758 |
|
|
Ratio of expenses to average net assets |
|
|
0.88 |
% |
|
|
0.88 |
% |
|
|
0.93 |
% |
|
|
1.02 |
% |
|
|
1.10 |
% |
|
Net investment income to average net assets |
|
|
1.53 |
% |
|
|
1.67 |
% |
|
|
1.61 |
% |
|
|
1.26 |
% |
|
|
1.23 |
% |
|
Portfolio turnover |
|
|
74 |
% |
|
|
83 |
% |
|
|
84 |
% |
|
|
78 |
% |
|
|
66 |
% |
|
(2) Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of Fund shares.
178
See accompanying notes to financial statements.
179
UBS Global Equity FundFinancial highlights
The table below sets forth financial data for one share of beneficial interest outstanding throughout
each period presented.
|
|
Class A |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
12.99 |
|
|
$ |
11.63 |
|
|
$ |
10.51 |
|
|
$ |
8.89 |
|
|
$ |
9.37 |
|
|
Net investment income(1) |
|
|
0.13 |
|
|
|
0.11 |
|
|
|
0.15 |
|
|
|
0.10 |
|
|
|
0.16 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
2.47 |
|
|
|
1.32 |
|
|
|
0.97 |
|
|
|
1.63 |
|
|
|
(0.39 |
) |
|
Total income (loss) from investment operations |
|
|
2.60 |
|
|
|
1.43 |
|
|
|
1.12 |
|
|
|
1.73 |
|
|
|
(0.23 |
) |
|
Dividends from net investment income |
|
|
(0.12 |
) |
|
|
(0.07 |
) |
|
|
|
|
|
|
(0.11 |
) |
|
|
(0.25 |
) |
|
Net asset value, end of year |
|
$ |
15.47 |
|
|
$ |
12.99 |
|
|
$ |
11.63 |
|
|
$ |
10.51 |
|
|
$ |
8.89 |
|
|
Total investment return(2) |
|
|
20.11 |
% |
|
|
12.35 |
% |
|
|
10.66 |
% |
|
|
19.49 |
% |
|
|
(2.23 |
)% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
168,208 |
|
|
$ |
173,052 |
|
|
$ |
109,998 |
|
|
$ |
117,084 |
|
|
$ |
123,756 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.35 |
% |
|
|
1.37 |
% |
|
|
1.39 |
% |
|
|
1.44 |
% |
|
|
1.44 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.25 |
% |
|
|
1.25 |
% |
|
|
1.25 |
% |
|
|
1.25 |
% |
|
|
1.25 |
% |
|
Net investment income to average net assets |
|
|
0.91 |
% |
|
|
0.88 |
% |
|
|
1.35 |
% |
|
|
0.99 |
% |
|
|
1.92 |
% |
|
Portfolio turnover |
|
|
32 |
% |
|
|
48 |
% |
|
|
37 |
% |
|
|
50 |
% |
|
|
206 |
% |
|
|
|
Class B |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
12.69 |
|
|
$ |
11.39 |
|
|
$ |
10.37 |
|
|
$ |
8.82 |
|
|
$ |
9.34 |
|
|
Net investment income(1) |
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.07 |
|
|
|
0.02 |
|
|
|
0.10 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
2.43 |
|
|
|
1.28 |
|
|
|
0.95 |
|
|
|
1.62 |
|
|
|
(0.39 |
) |
|
Total income (loss) from investment operations |
|
|
2.44 |
|
|
|
1.30 |
|
|
|
1.02 |
|
|
|
1.64 |
|
|
|
(0.29 |
) |
|
Dividends from net investment income |
|
|
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
(0.09 |
) |
|
|
(0.23 |
) |
|
Net asset value, end of year |
|
$ |
15.11 |
|
|
$ |
12.69 |
|
|
$ |
11.39 |
|
|
$ |
10.37 |
|
|
$ |
8.82 |
|
|
Total investment return(2) |
|
|
19.25 |
% |
|
|
11.41 |
% |
|
|
9.84 |
% |
|
|
18.61 |
% |
|
|
(2.91 |
)% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
7,439 |
|
|
$ |
13,672 |
|
|
$ |
108,894 |
|
|
$ |
134,419 |
|
|
$ |
144,232 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
2.17 |
% |
|
|
2.35 |
% |
|
|
2.22 |
% |
|
|
2.27 |
% |
|
|
2.20 |
% |
|
After expense reimbursement and earnings credits |
|
|
2.00 |
% |
|
|
2.00 |
% |
|
|
2.00 |
% |
|
|
2.00 |
% |
|
|
2.00 |
% |
|
Net investment income to average net assets |
|
|
0.10 |
% |
|
|
0.13 |
% |
|
|
0.60 |
% |
|
|
0.24 |
% |
|
|
1.17 |
% |
|
Portfolio turnover |
|
|
32 |
% |
|
|
48 |
% |
|
|
37 |
% |
|
|
50 |
% |
|
|
206 |
% |
|
(1) The net investment income per share data was determined by using average shares outstanding throughout the year.
|
|
Class C |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
12.65 |
|
|
$ |
11.35 |
|
|
$ |
10.33 |
|
|
$ |
8.79 |
|
|
$ |
9.33 |
|
|
Net investment income(1) |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.06 |
|
|
|
0.02 |
|
|
|
0.10 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
2.42 |
|
|
|
1.28 |
|
|
|
0.96 |
|
|
|
1.61 |
|
|
|
(0.40 |
) |
|
Total income (loss) from investment operations |
|
|
2.44 |
|
|
|
1.30 |
|
|
|
1.02 |
|
|
|
1.63 |
|
|
|
(0.30 |
) |
|
Dividends from net investment income |
|
|
(0.07 |
) |
|
|
|
|
|
|
|
|
|
|
(0.09 |
) |
|
|
(0.24 |
) |
|
Net asset value, end of year |
|
$ |
15.02 |
|
|
$ |
12.65 |
|
|
$ |
11.35 |
|
|
$ |
10.33 |
|
|
$ |
8.79 |
|
|
Total investment return(2) |
|
|
19.28 |
% |
|
|
11.45 |
% |
|
|
9.87 |
% |
|
|
18.54 |
% |
|
|
(2.93 |
)% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
52,378 |
|
|
$ |
56,836 |
|
|
$ |
68,735 |
|
|
$ |
82,684 |
|
|
$ |
93,605 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
2.14 |
% |
|
|
2.20 |
% |
|
|
2.20 |
% |
|
|
2.28 |
% |
|
|
2.24 |
% |
|
After expense reimbursement and earnings credits |
|
|
2.00 |
% |
|
|
2.00 |
% |
|
|
2.00 |
% |
|
|
2.00 |
% |
|
|
2.00 |
% |
|
Net investment income to average net assets |
|
|
0.16 |
% |
|
|
0.13 |
% |
|
|
0.60 |
% |
|
|
0.25 |
% |
|
|
1.17 |
% |
|
Portfolio turnover |
|
|
32 |
% |
|
|
48 |
% |
|
|
37 |
% |
|
|
50 |
% |
|
|
206 |
% |
|
|
|
Class Y |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
13.23 |
|
|
$ |
11.83 |
|
|
$ |
10.67 |
|
|
$ |
8.99 |
|
|
$ |
9.47 |
|
|
Net investment income(1) |
|
|
0.17 |
|
|
|
0.15 |
|
|
|
0.18 |
|
|
|
0.13 |
|
|
|
0.18 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
2.52 |
|
|
|
1.34 |
|
|
|
0.98 |
|
|
|
1.67 |
|
|
|
(0.39 |
) |
|
Total income (loss) from investment operations |
|
|
2.69 |
|
|
|
1.49 |
|
|
|
1.16 |
|
|
|
1.80 |
|
|
|
(0.21 |
) |
|
Dividends from net investment income |
|
|
(0.14 |
) |
|
|
(0.09 |
) |
|
|
|
|
|
|
(0.12 |
) |
|
|
(0.27 |
) |
|
Net asset value, end of year |
|
$ |
15.78 |
|
|
$ |
13.23 |
|
|
$ |
11.83 |
|
|
$ |
10.67 |
|
|
$ |
8.99 |
|
|
Total investment return(2) |
|
|
20.44 |
% |
|
|
12.67 |
% |
|
|
10.87 |
% |
|
|
20.09 |
% |
|
|
(1.93 |
)% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
180,027 |
|
|
$ |
180,990 |
|
|
$ |
159,252 |
|
|
$ |
114,835 |
|
|
$ |
62,873 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
0.99 |
% |
|
|
0.99 |
% |
|
|
1.04 |
% |
|
|
1.03 |
% |
|
|
1.16 |
% |
|
After expense reimbursement and earnings credits |
|
|
0.99 |
% |
|
|
0.99 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
Net investment income to average net assets |
|
|
1.16 |
% |
|
|
1.14 |
% |
|
|
1.60 |
% |
|
|
1.24 |
% |
|
|
2.17 |
% |
|
Portfolio turnover |
|
|
32 |
% |
|
|
48 |
% |
|
|
37 |
% |
|
|
50 |
% |
|
|
206 |
% |
|
(2) Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of Fund shares.
180
See accompanying notes to financial statements.
181
UBS International Equity FundFinancial highlights
The table below sets forth financial data for one share of beneficial interest outstanding throughout
each period presented.
|
|
Class A |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
10.98 |
|
|
$ |
9.48 |
|
|
$ |
8.58 |
|
|
$ |
6.99 |
|
|
$ |
8.08 |
|
|
Net investment income(1) |
|
|
0.17 |
|
|
|
0.16 |
|
|
|
0.15 |
|
|
|
0.12 |
|
|
|
0.10 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
2.47 |
|
|
|
1.81 |
|
|
|
0.86 |
|
|
|
1.69 |
|
|
|
(0.87 |
) |
|
Total income (loss) from investment operations |
|
|
2.64 |
|
|
|
1.97 |
|
|
|
1.01 |
|
|
|
1.81 |
|
|
|
(0.77 |
) |
|
Dividends from net investment income |
|
|
(0.11 |
) |
|
|
(0.10 |
) |
|
|
(0.11 |
) |
|
|
(0.22 |
) |
|
|
(0.31 |
) |
|
Distributions from net realized gains |
|
|
(0.52 |
) |
|
|
(0.37 |
) |
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
Total dividends/distributions |
|
|
(0.63 |
) |
|
|
(0.47 |
) |
|
|
(0.11 |
) |
|
|
(0.22 |
) |
|
|
(0.32 |
) |
|
Net asset value, end of year |
|
$ |
12.99 |
|
|
$ |
10.98 |
|
|
$ |
9.48 |
|
|
$ |
8.58 |
|
|
$ |
6.99 |
|
|
Total investment return(2) |
|
|
24.84 |
% |
|
|
20.93 |
% |
|
|
11.73 |
% |
|
|
26.00 |
% |
|
|
(9.24 |
)% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
26,564 |
|
|
$ |
23,539 |
|
|
$ |
15,168 |
|
|
$ |
7,866 |
|
|
$ |
3,146 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.38 |
%(3) |
|
|
1.48 |
% |
|
|
1.68 |
% |
|
|
1.55 |
% |
|
|
1.47 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.26 |
%(3) |
|
|
1.25 |
% |
|
|
1.25 |
% |
|
|
1.25 |
% |
|
|
1.25 |
% |
|
Net investment income to average net assets |
|
|
1.42 |
% |
|
|
1.52 |
% |
|
|
1.61 |
% |
|
|
1.43 |
% |
|
|
1.43 |
% |
|
Portfolio turnover |
|
|
72 |
% |
|
|
69 |
% |
|
|
71 |
% |
|
|
108 |
% |
|
|
120 |
% |
|
|
|
Class B |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
10.82 |
|
|
$ |
9.34 |
|
|
$ |
8.48 |
|
|
$ |
6.92 |
|
|
$ |
8.05 |
|
|
Net investment income(1) |
|
|
0.06 |
|
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.06 |
|
|
|
0.04 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
2.46 |
|
|
|
1.77 |
|
|
|
0.85 |
|
|
|
1.67 |
|
|
|
(0.86 |
) |
|
Total income (loss) from investment operations |
|
|
2.52 |
|
|
|
1.85 |
|
|
|
0.93 |
|
|
|
1.73 |
|
|
|
(0.82 |
) |
|
Dividends from net investment income |
|
|
(0.01 |
) |
|
|
|
|
|
|
(0.07 |
) |
|
|
(0.17 |
) |
|
|
(0.30 |
) |
|
Distributions from net realized gains |
|
|
(0.52 |
) |
|
|
(0.37 |
) |
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
Total dividends/distributions |
|
|
(0.53 |
) |
|
|
(0.37 |
) |
|
|
(0.07 |
) |
|
|
(0.17 |
) |
|
|
(0.31 |
) |
|
Net asset value, end of year |
|
$ |
12.81 |
|
|
$ |
10.82 |
|
|
$ |
9.34 |
|
|
$ |
8.48 |
|
|
$ |
6.92 |
|
|
Total investment return(2) |
|
|
23.97 |
% |
|
|
19.86 |
% |
|
|
10.92 |
% |
|
|
25.17 |
% |
|
|
(9.94 |
)% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
555 |
|
|
$ |
732 |
|
|
$ |
876 |
|
|
$ |
815 |
|
|
$ |
352 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
2.25 |
%(3) |
|
|
2.22 |
% |
|
|
2.25 |
% |
|
|
2.60 |
% |
|
|
2.18 |
% |
|
After expense reimbursement and earnings credits |
|
|
2.01 |
%(3) |
|
|
2.00 |
% |
|
|
2.00 |
% |
|
|
2.00 |
% |
|
|
2.00 |
% |
|
Net investment income to average net assets |
|
|
0.51 |
% |
|
|
0.77 |
% |
|
|
0.86 |
% |
|
|
0.69 |
% |
|
|
0.68 |
% |
|
Portfolio turnover |
|
|
72 |
% |
|
|
69 |
% |
|
|
71 |
% |
|
|
108 |
% |
|
|
120 |
% |
|
(1) The net investment income per share data was determined by using average shares outstanding throughout the year.
(2) Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of Fund shares.
(3) Includes interest expense of 0.01%.
|
|
Class C |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
10.76 |
|
|
$ |
9.30 |
|
|
$ |
8.45 |
|
|
$ |
6.90 |
|
|
$ |
8.05 |
|
|
Net investment income(1) |
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.06 |
|
|
|
0.04 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
2.42 |
|
|
|
1.77 |
|
|
|
0.85 |
|
|
|
1.68 |
|
|
|
(0.89 |
) |
|
Total income (loss) from investment operations |
|
|
2.50 |
|
|
|
1.85 |
|
|
|
0.93 |
|
|
|
1.74 |
|
|
|
(0.85 |
) |
|
Dividends from net investment income |
|
|
(0.03 |
) |
|
|
(0.02 |
) |
|
|
(0.08 |
) |
|
|
(0.19 |
) |
|
|
(0.29 |
) |
|
Distributions from net realized gains |
|
|
(0.52 |
) |
|
|
(0.37 |
) |
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
Total dividends/distributions |
|
|
(0.55 |
) |
|
|
(0.39 |
) |
|
|
(0.08 |
) |
|
|
(0.19 |
) |
|
|
(0.30 |
) |
|
Net asset value, end of year |
|
$ |
12.71 |
|
|
$ |
10.76 |
|
|
$ |
9.30 |
|
|
$ |
8.45 |
|
|
$ |
6.90 |
|
|
Total investment return(2) |
|
|
23.85 |
% |
|
|
19.93 |
% |
|
|
10.97 |
% |
|
|
25.26 |
% |
|
|
(10.29 |
)% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
2,576 |
|
|
$ |
2,412 |
|
|
$ |
1,816 |
|
|
$ |
1,338 |
|
|
$ |
399 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
2.16 |
%(3) |
|
|
2.17 |
% |
|
|
2.16 |
% |
|
|
2.35 |
% |
|
|
2.21 |
% |
|
After expense reimbursement and earnings credits |
|
|
2.01 |
%(3) |
|
|
2.01 |
% |
|
|
2.00 |
% |
|
|
2.00 |
% |
|
|
2.00 |
% |
|
Net investment income to average net assets |
|
|
0.66 |
% |
|
|
0.77 |
% |
|
|
0.86 |
% |
|
|
0.69 |
% |
|
|
0.68 |
% |
|
Portfolio turnover |
|
|
72 |
% |
|
|
69 |
% |
|
|
71 |
% |
|
|
108 |
% |
|
|
120 |
% |
|
|
|
Class Y |
|
|
|
Year Ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
11.04 |
|
|
$ |
9.55 |
|
|
$ |
8.63 |
|
|
$ |
7.01 |
|
|
$ |
8.12 |
|
|
Net investment income(1) |
|
|
0.20 |
|
|
|
0.19 |
|
|
|
0.17 |
|
|
|
0.14 |
|
|
|
0.11 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
2.49 |
|
|
|
1.79 |
|
|
|
0.86 |
|
|
|
1.71 |
|
|
|
(0.88 |
) |
|
Total income (loss) from investment operations |
|
|
2.69 |
|
|
|
1.98 |
|
|
|
1.03 |
|
|
|
1.85 |
|
|
|
(0.77 |
) |
|
Dividends from net investment income |
|
|
(0.14 |
) |
|
|
(0.12 |
) |
|
|
(0.11 |
) |
|
|
(0.23 |
) |
|
|
(0.33 |
) |
|
Distributions from net realized gains |
|
|
(0.52 |
) |
|
|
(0.37 |
) |
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
Total dividends/distributions |
|
|
(0.66 |
) |
|
|
(0.49 |
) |
|
|
(0.11 |
) |
|
|
(0.23 |
) |
|
|
(0.34 |
) |
|
Net asset value, end of year |
|
$ |
13.07 |
|
|
$ |
11.04 |
|
|
$ |
9.55 |
|
|
$ |
8.63 |
|
|
$ |
7.01 |
|
|
Total investment return(2) |
|
|
24.83 |
% |
|
|
21.22 |
% |
|
|
11.97 |
% |
|
|
26.56 |
% |
|
|
(9.21 |
)% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
172,150 |
|
|
$ |
147,397 |
|
|
$ |
113,264 |
|
|
$ |
100,782 |
|
|
$ |
90,514 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.16 |
%(3) |
|
|
1.19 |
% |
|
|
1.18 |
% |
|
|
1.26 |
% |
|
|
1.21 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.01 |
%(3) |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
Net investment income to average net assets |
|
|
1.63 |
% |
|
|
1.77 |
% |
|
|
1.86 |
% |
|
|
1.69 |
% |
|
|
1.68 |
% |
|
Portfolio turnover |
|
|
72 |
% |
|
|
69 |
% |
|
|
71 |
% |
|
|
108 |
% |
|
|
120 |
% |
|
182
See accompanying notes to financial statements.
183
UBS U.S. Equity Alpha FundFinancial highlights
The table below sets forth financial data for one share of beneficial interest outstanding throughout each period presented.
|
|
Class A |
|
|
|
For the period ended June 30, 2007(3) |
|
Net asset value, beginning of period |
|
$ |
10.00 |
|
|
Net investment income (loss)(1) |
|
|
0.02 |
|
|
Net realized and unrealized gain from investment activities |
|
|
1.55 |
|
|
Total income from investment operations |
|
|
1.57 |
|
|
Dividends from net investment income |
|
|
(0.01 |
) |
|
Distributions from net realized gains |
|
|
(0.01 |
) |
|
Total dividends/distributions |
|
|
(0.02 |
) |
|
Net asset value, end of period |
|
$ |
11.55 |
|
|
Total investment return(2) |
|
|
15.73 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of period (in 000s) |
|
$ |
187,444 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and after interest and dividend expense for securities sold short |
|
|
1.93 |
%(4) |
|
After expense reimbursement and interest and dividend income for securities sold short |
|
|
1.88 |
%(4) |
|
After expense reimbursement and before interest and dividend expense for securities sold short |
|
|
1.50 |
%(4) |
|
Net investment income (loss) to average net assets |
|
|
0.30 |
%(4) |
|
Portfolio turnover |
|
|
81 |
% |
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
|
|
|
|
Net investment income(1) |
|
|
|
|
|
Net realized and unrealized gain from investment activities |
|
|
|
|
|
Total income from investment operations |
|
|
|
|
|
Dividends from net investment income |
|
|
|
|
|
Distributions from net realized gains |
|
|
|
|
|
Total dividends/distributions |
|
|
|
|
|
Net asset value, end of period |
|
|
|
|
|
Total investment return(2) |
|
|
|
|
|
Ratios/Supplemental data: |
|
Net assets, end of period (in 000s) |
|
|
|
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and after interest and dividend expense for securities sold short |
|
|
|
|
|
After expense reimbursement and interest and dividend expense for securities sold short |
|
|
|
|
|
After expense reimbursement and before interest and dividend expense for securities sold short |
|
|
|
|
|
Net investment income to average net assets: |
|
|
|
|
|
Portfolio turnover |
|
|
|
|
|
(1) The net investment income (loss) per share data was determined by using average shares outstanding throughout the period.
|
|
Class C |
|
|
|
For the period ended June 30, 2007(3) |
|
Net asset value, beginning of period |
|
$ |
10.00 |
|
|
Net investment income (loss)(1) |
|
|
(0.04 |
) |
|
Net realized and unrealized gain from investment activities |
|
|
1.55 |
|
|
Total income from investment operations |
|
|
1.51 |
|
|
Dividends from net investment income |
|
|
0.00 |
|
|
Distributions from net realized gains |
|
|
(0.01 |
) |
|
Total dividends/distributions |
|
|
(0.01 |
) |
|
Net asset value, end of period |
|
$ |
11.50 |
|
|
Total investment return(2) |
|
|
15.12 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of period (in 000s) |
|
$ |
42,750 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and after interest and dividend expense for securities sold short |
|
|
2.72 |
%(4) |
|
After expense reimbursement and interest and dividend income for securities sold short |
|
|
2.64 |
%(4) |
|
After expense reimbursement and before interest and dividend expense for securities sold short |
|
|
2.25 |
%(4) |
|
Net investment income (loss) to average net assets |
|
|
(0.44 |
)%(4) |
|
Portfolio turnover |
|
|
81 |
% |
|
|
|
Class Y |
|
|
|
For the period ended June 30, 2007(3) |
|
Net asset value, beginning of period |
|
$ |
10.00 |
|
|
Net investment income(1) |
|
|
0.04 |
|
|
Net realized and unrealized gain from investment activities |
|
|
1.54 |
|
|
Total income from investment operations |
|
|
1.58 |
|
|
Dividends from net investment income |
|
|
(0.02 |
) |
|
Distributions from net realized gains |
|
|
(0.01 |
) |
|
Total dividends/distributions |
|
|
(0.03 |
) |
|
Net asset value, end of period |
|
$ |
11.55 |
|
|
Total investment return(2) |
|
|
15.88 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of period (in 000s) |
|
$ |
5,405 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and after interest and dividend expense for securities sold short |
|
|
1.67 |
%(4) |
|
After expense reimbursement and interest and dividend expense for securities sold short |
|
|
1.67 |
%(4) |
|
After expense reimbursement and before interest and dividend expense for securities sold short |
|
|
1.25 |
%(4) |
|
Net investment income to average net assets: |
|
|
0.43 |
%(4) |
|
Portfolio turnover |
|
|
81 |
% |
|
(2) Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges; results would be lower if they were included. Total investment return for periods of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of Fund shares.
(3) For the period September 26, 2006 (commencement of operations) through June 30, 2007.
(4) Annualized.
See accompanying notes to financial statements.
184
This page intentionally left blank.
185
UBS U.S. Large Cap Equity FundFinancial highlights
The table below sets forth financial data for one share of beneficial interest outstanding throughout each
period presented.
|
|
Class A |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
18.24 |
|
|
$ |
17.27 |
|
|
$ |
16.08 |
|
|
$ |
13.63 |
|
|
$ |
13.94 |
|
|
Net investment income (loss)(1) |
|
|
0.15 |
|
|
|
0.10 |
|
|
|
0.15 |
|
|
|
0.06 |
|
|
|
0.11 |
|
|
Net realized and unrealized gain from investment activities |
|
|
3.52 |
|
|
|
1.39 |
|
|
|
1.63 |
|
|
|
2.54 |
|
|
|
0.04 |
|
|
Total income from investment operations |
|
|
3.67 |
|
|
|
1.49 |
|
|
|
1.78 |
|
|
|
2.60 |
|
|
|
0.15 |
|
|
Dividends from net investment income |
|
|
(0.10 |
) |
|
|
(0.11 |
) |
|
|
(0.11 |
) |
|
|
(0.15 |
) |
|
|
(0.08 |
) |
|
Distributions from net realized gains |
|
|
(0.62 |
) |
|
|
(0.41 |
) |
|
|
(0.48 |
) |
|
|
|
|
|
|
(0.38 |
) |
|
Total dividends/distributions |
|
|
(0.72 |
) |
|
|
(0.52 |
) |
|
|
(0.59 |
) |
|
|
(0.15 |
) |
|
|
(0.46 |
) |
|
Net asset value, end of year |
|
$ |
21.19 |
|
|
$ |
18.24 |
|
|
$ |
17.27 |
|
|
$ |
16.08 |
|
|
$ |
13.63 |
|
|
Total investment return(2) |
|
|
20.39 |
% |
|
|
8.62 |
% |
|
|
11.10 |
% |
|
|
19.10 |
% |
|
|
1.37 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
158,138 |
|
|
$ |
88,968 |
|
|
$ |
25,669 |
|
|
$ |
7,886 |
|
|
$ |
4,702 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement/recoupment and earnings credits |
|
|
1.18 |
% |
|
|
1.20 |
% |
|
|
1.14 |
% |
|
|
1.36 |
% |
|
|
1.30 |
% |
|
After expense reimbursement/recoupment and earnings credits |
|
|
1.18 |
% |
|
|
1.24 |
% |
|
|
1.14 |
% |
|
|
1.30 |
% |
|
|
1.05 |
% |
|
Net investment income (loss) to average net assets |
|
|
0.75 |
% |
|
|
0.54 |
% |
|
|
0.89 |
% |
|
|
0.43 |
% |
|
|
0.89 |
% |
|
Portfolio turnover |
|
|
34 |
% |
|
|
50 |
% |
|
|
32 |
% |
|
|
43 |
% |
|
|
33 |
% |
|
|
|
Class B |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
17.84 |
|
|
$ |
16.94 |
|
|
$ |
15.81 |
|
|
$ |
13.45 |
|
|
$ |
13.87 |
|
|
Net investment income (loss)(1) |
|
|
(0.00 |
)(3) |
|
|
(0.04 |
) |
|
|
0.00 |
(3) |
|
|
(0.05 |
) |
|
|
0.02 |
|
|
Net realized and unrealized gain from investment activities |
|
|
3.44 |
|
|
|
1.35 |
|
|
|
1.61 |
|
|
|
2.50 |
|
|
|
0.02 |
|
|
Total income from investment operations |
|
|
3.44 |
|
|
|
1.31 |
|
|
|
1.61 |
|
|
|
2.45 |
|
|
|
0.04 |
|
|
Dividends from net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.09 |
) |
|
|
(0.08 |
) |
|
Distributions from net realized gains |
|
|
(0.62 |
) |
|
|
(0.41 |
) |
|
|
(0.48 |
) |
|
|
|
|
|
|
(0.38 |
) |
|
Total dividends/distributions |
|
|
(0.62 |
) |
|
|
(0.41 |
) |
|
|
(0.48 |
) |
|
|
(0.09 |
) |
|
|
(0.46 |
) |
|
Net asset value, end of year |
|
$ |
20.66 |
|
|
$ |
17.84 |
|
|
$ |
16.94 |
|
|
$ |
15.81 |
|
|
$ |
13.45 |
|
|
Total investment return(2) |
|
|
19.50 |
% |
|
|
7.73 |
% |
|
|
10.19 |
% |
|
|
18.25 |
% |
|
|
0.63 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
870 |
|
|
$ |
989 |
|
|
$ |
1,018 |
|
|
$ |
1,217 |
|
|
$ |
635 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement/recoupment and earnings credits |
|
|
1.95 |
% |
|
|
1.92 |
% |
|
|
2.02 |
% |
|
|
2.04 |
% |
|
|
2.04 |
% |
|
After expense reimbursement/recoupment and earnings credits |
|
|
1.95 |
% |
|
|
2.01 |
% |
|
|
2.02 |
% |
|
|
2.04 |
% |
|
|
1.80 |
% |
|
Net investment income (loss) to average net assets |
|
|
(0.01 |
)% |
|
|
(0.23 |
)% |
|
|
0.01 |
% |
|
|
(0.31 |
)% |
|
|
0.14 |
% |
|
Portfolio turnover |
|
|
34 |
% |
|
|
50 |
% |
|
|
32 |
% |
|
|
43 |
% |
|
|
33 |
% |
|
(1) The net investment income (loss) per share data was determined by using average shares outstanding throughout the year.
(2) Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of Fund shares.
(3) Amount represents less than $0.005 per share.
|
|
Class C |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
17.83 |
|
|
$ |
16.93 |
|
|
$ |
15.80 |
|
|
$ |
13.44 |
|
|
$ |
13.88 |
|
|
Net investment income (loss)(1) |
|
|
0.00 |
(3) |
|
|
(0.04 |
) |
|
|
0.01 |
|
|
|
(0.04 |
) |
|
|
0.02 |
|
|
Net realized and unrealized gain from investment activities |
|
|
3.45 |
|
|
|
1.36 |
|
|
|
1.60 |
|
|
|
2.49 |
|
|
|
0.03 |
|
|
Total income from investment operations |
|
|
3.45 |
|
|
|
1.32 |
|
|
|
1.61 |
|
|
|
2.45 |
|
|
|
0.05 |
|
|
Dividends from net investment income |
|
|
|
|
|
|
(0.01 |
) |
|
|
|
|
|
|
(0.09 |
) |
|
|
(0.11 |
) |
|
Distributions from net realized gains |
|
|
(0.62 |
) |
|
|
(0.41 |
) |
|
|
(0.48 |
) |
|
|
|
|
|
|
(0.38 |
) |
|
Total dividends/distributions |
|
|
(0.62 |
) |
|
|
(0.42 |
) |
|
|
(0.48 |
) |
|
|
(0.09 |
) |
|
|
(0.49 |
) |
|
Net asset value, end of year |
|
$ |
20.66 |
|
|
$ |
17.83 |
|
|
$ |
16.93 |
|
|
$ |
15.80 |
|
|
$ |
13.44 |
|
|
Total investment return(2) |
|
|
19.56 |
% |
|
|
7.79 |
% |
|
|
10.20 |
% |
|
|
18.26 |
% |
|
|
0.68 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
10,591 |
|
|
$ |
5,977 |
|
|
$ |
2,423 |
|
|
$ |
1,629 |
|
|
$ |
1,020 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement/recoupment and earnings credits |
|
|
1.92 |
% |
|
|
1.96 |
% |
|
|
1.95 |
% |
|
|
2.00 |
% |
|
|
2.04 |
% |
|
After expense reimbursement/recoupment and earnings credits |
|
|
1.92 |
% |
|
|
1.98 |
% |
|
|
1.95 |
% |
|
|
2.00 |
% |
|
|
1.80 |
% |
|
Net investment income (loss) to average net assets |
|
|
0.01 |
% |
|
|
(0.20 |
)% |
|
|
0.08 |
% |
|
|
(0.27 |
)% |
|
|
0.14 |
% |
|
Portfolio turnover |
|
|
34 |
% |
|
|
50 |
% |
|
|
32 |
% |
|
|
43 |
% |
|
|
33 |
% |
|
|
|
Class Y |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
18.43 |
|
|
$ |
17.42 |
|
|
$ |
16.21 |
|
|
$ |
13.73 |
|
|
$ |
14.07 |
|
|
Net investment income (loss)(1) |
|
|
0.21 |
|
|
|
0.15 |
|
|
|
0.19 |
|
|
|
0.12 |
|
|
|
0.14 |
|
|
Net realized and unrealized gain from investment activities |
|
|
3.56 |
|
|
|
1.40 |
|
|
|
1.65 |
|
|
|
2.55 |
|
|
|
0.04 |
|
|
Total income from investment operations |
|
|
3.77 |
|
|
|
1.55 |
|
|
|
1.84 |
|
|
|
2.67 |
|
|
|
0.18 |
|
|
Dividends from net investment income |
|
|
(0.14 |
) |
|
|
(0.13 |
) |
|
|
(0.15 |
) |
|
|
(0.19 |
) |
|
|
(0.14 |
) |
|
Distributions from net realized gains |
|
|
(0.62 |
) |
|
|
(0.41 |
) |
|
|
(0.48 |
) |
|
|
|
|
|
|
(0.38 |
) |
|
Total dividends/distributions |
|
|
(0.76 |
) |
|
|
(0.54 |
) |
|
|
(0.63 |
) |
|
|
(0.19 |
) |
|
|
(0.52 |
) |
|
Net asset value, end of year |
|
$ |
21.44 |
|
|
$ |
18.43 |
|
|
$ |
17.42 |
|
|
$ |
16.21 |
|
|
$ |
13.73 |
|
|
Total investment return(2) |
|
|
20.73 |
% |
|
|
8.91 |
% |
|
|
11.37 |
% |
|
|
19.50 |
% |
|
|
1.69 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
833,023 |
|
|
$ |
543,099 |
|
|
$ |
367,268 |
|
|
$ |
153,608 |
|
|
$ |
99,398 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement/recoupment and earnings credits |
|
|
0.89 |
% |
|
|
0.92 |
% |
|
|
0.90 |
% |
|
|
0.96 |
% |
|
|
1.04 |
% |
|
After expense reimbursement/recoupment and earnings credits |
|
|
0.89 |
% |
|
|
0.97 |
% |
|
|
0.90 |
% |
|
|
0.96 |
% |
|
|
0.80 |
% |
|
Net investment income (loss) to average net assets |
|
|
1.04 |
% |
|
|
0.81 |
% |
|
|
1.13 |
% |
|
|
0.76 |
% |
|
|
1.14 |
% |
|
Portfolio turnover |
|
|
34 |
% |
|
|
50 |
% |
|
|
32 |
% |
|
|
43 |
% |
|
|
33 |
% |
|
186
See accompanying notes to financial statements.
187
UBS U.S. Large Cap Growth FundFinancial highlights
The table below sets forth financial data for one share of beneficial interest outstanding throughout
each period presented.
|
|
Class A |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
8.81 |
|
|
$ |
8.21 |
|
|
$ |
7.71 |
|
|
$ |
6.39 |
|
|
$ |
6.38 |
|
|
Net investment income (loss)(1) |
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
0.00 |
(3) |
|
|
(0.02 |
) |
|
|
0.00 |
(3) |
|
Net realized and unrealized gain from investment activities |
|
|
1.87 |
|
|
|
0.61 |
|
|
|
0.50 |
|
|
|
1.34 |
|
|
|
0.01 |
|
|
Total income (loss) from investment operations |
|
|
1.88 |
|
|
|
0.60 |
|
|
|
0.50 |
|
|
|
1.32 |
|
|
|
0.01 |
|
|
Dividends from net investment income |
|
|
(0.01 |
) |
|
|
(0.00 |
)(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of year |
|
$ |
10.68 |
|
|
$ |
8.81 |
|
|
$ |
8.21 |
|
|
$ |
7.71 |
|
|
$ |
6.39 |
|
|
Total investment return(2) |
|
|
21.29 |
% |
|
|
7.33 |
% |
|
|
6.49 |
% |
|
|
20.66 |
% |
|
|
0.16 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
9,542 |
|
|
$ |
6,803 |
|
|
$ |
3,175 |
|
|
$ |
2,275 |
|
|
$ |
1,163 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.68 |
% |
|
|
2.33 |
% |
|
|
3.19 |
% |
|
|
2.76 |
% |
|
|
3.91 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.05 |
% |
|
|
1.05 |
% |
|
|
1.05 |
% |
|
|
1.05 |
% |
|
|
1.05 |
% |
|
Net investment income (loss) to average net assets: |
|
|
0.12 |
% |
|
|
(0.16 |
)% |
|
|
0.04 |
% |
|
|
(0.32 |
)% |
|
|
0.04 |
% |
|
Portfolio turnover |
|
|
112 |
% |
|
|
137 |
% |
|
|
145 |
% |
|
|
102 |
% |
|
|
86 |
% |
|
|
|
Class B |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
8.52 |
|
|
$ |
8.00 |
|
|
$ |
7.57 |
|
|
$ |
6.32 |
|
|
$ |
6.36 |
|
|
Net investment income (loss)(1) |
|
|
(0.06 |
) |
|
|
(0.08 |
) |
|
|
(0.05 |
) |
|
|
(0.08 |
) |
|
|
(0.04 |
) |
|
Net realized and unrealized gain (loss) from investment activities |
|
|
1.80 |
|
|
|
0.60 |
|
|
|
0.48 |
|
|
|
1.33 |
|
|
|
|
|
|
Total income (loss) from investment operations |
|
|
1.74 |
|
|
|
0.52 |
|
|
|
0.43 |
|
|
|
1.25 |
|
|
|
(0.04 |
) |
|
Dividends from net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of year |
|
$ |
10.26 |
|
|
$ |
8.52 |
|
|
$ |
8.00 |
|
|
$ |
7.57 |
|
|
$ |
6.32 |
|
|
Total investment return(2) |
|
|
20.42 |
% |
|
|
6.50 |
% |
|
|
5.68 |
% |
|
|
19.78 |
% |
|
|
(0.63 |
)% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
216 |
|
|
$ |
389 |
|
|
$ |
564 |
|
|
$ |
342 |
|
|
$ |
321 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
2.61 |
% |
|
|
3.23 |
% |
|
|
3.93 |
% |
|
|
3.48 |
% |
|
|
4.54 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.80 |
% |
|
|
1.80 |
% |
|
|
1.80 |
% |
|
|
1.80 |
% |
|
|
1.80 |
% |
|
Net investment income (loss) to average net assets: |
|
|
(0.64 |
)% |
|
|
(0.91 |
)% |
|
|
(0.71 |
)% |
|
|
(1.07 |
)% |
|
|
(0.71 |
)% |
|
Portfolio turnover |
|
|
112 |
% |
|
|
137 |
% |
|
|
145 |
% |
|
|
102 |
% |
|
|
86 |
% |
|
(1) The net investment income (loss) per share data was determined by using average shares outstanding throughout the year.
(2) Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of Fund shares.
(3) Amount represents less than $0.005 per share.
|
|
Class C |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
8.53 |
|
|
$ |
8.00 |
|
|
$ |
7.56 |
|
|
$ |
6.32 |
|
|
$ |
6.35 |
|
|
Net investment income (loss)(1) |
|
|
(0.06 |
) |
|
|
(0.08 |
) |
|
|
(0.05 |
) |
|
|
(0.08 |
) |
|
|
(0.04 |
) |
|
Net realized and unrealized gain from investment activities |
|
|
1.79 |
|
|
|
0.61 |
|
|
|
0.49 |
|
|
|
1.32 |
|
|
|
0.01 |
|
|
Total income (loss) from investment operations |
|
|
1.73 |
|
|
|
0.53 |
|
|
|
0.44 |
|
|
|
1.24 |
|
|
|
(0.03 |
) |
|
Dividends from net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of year |
|
$ |
10.26 |
|
|
$ |
8.53 |
|
|
$ |
8.00 |
|
|
$ |
7.56 |
|
|
$ |
6.32 |
|
|
Total investment return(2) |
|
|
20.28 |
% |
|
|
6.63 |
% |
|
|
5.82 |
% |
|
|
19.62 |
% |
|
|
(0.47 |
)% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
986 |
|
|
$ |
814 |
|
|
$ |
407 |
|
|
$ |
432 |
|
|
$ |
267 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
2.51 |
% |
|
|
3.12 |
% |
|
|
3.96 |
% |
|
|
3.54 |
% |
|
|
4.71 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.80 |
% |
|
|
1.80 |
% |
|
|
1.80 |
% |
|
|
1.80 |
% |
|
|
1.80 |
% |
|
Net investment income (loss) to average net assets: |
|
|
(0.64 |
)% |
|
|
(0.91 |
)% |
|
|
(0.71 |
)% |
|
|
(1.08 |
)% |
|
|
(0.71 |
)% |
|
Portfolio turnover |
|
|
112 |
% |
|
|
137 |
% |
|
|
145 |
% |
|
|
102 |
% |
|
|
86 |
% |
|
|
|
Class Y |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
9.02 |
|
|
$ |
8.38 |
|
|
$ |
7.85 |
|
|
$ |
6.49 |
|
|
$ |
6.47 |
|
|
Net investment income (loss)(1) |
|
|
0.04 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
(0.01 |
) |
|
|
0.02 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
1.90 |
|
|
|
0.64 |
|
|
|
0.51 |
|
|
|
1.37 |
|
|
|
0.00 |
(3) |
|
Total income (loss) from investment operations |
|
|
1.94 |
|
|
|
0.65 |
|
|
|
0.53 |
|
|
|
1.36 |
|
|
|
0.02 |
|
|
Dividends from net investment income |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of year |
|
$ |
10.94 |
|
|
|
9.02 |
|
|
$ |
8.38 |
|
|
$ |
7.85 |
|
|
$ |
6.49 |
|
|
Total investment return(2) |
|
|
21.51 |
% |
|
|
7.72 |
% |
|
|
6.75 |
% |
|
|
20.96 |
% |
|
|
0.31 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
62,529 |
|
|
$ |
4,797 |
|
|
$ |
3,078 |
|
|
$ |
3,502 |
|
|
$ |
1,943 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.25 |
% |
|
|
2.10 |
% |
|
|
3.01 |
% |
|
|
2.51 |
% |
|
|
3.72 |
% |
|
After expense reimbursement and earnings credits |
|
|
0.80 |
% |
|
|
0.80 |
% |
|
|
0.80 |
% |
|
|
0.80 |
% |
|
|
0.80 |
% |
|
Net investment income (loss) to average net assets: |
|
|
0.35 |
% |
|
|
0.09 |
% |
|
|
0.29 |
% |
|
|
(0.07 |
)% |
|
|
0.29 |
% |
|
Portfolio turnover |
|
|
112 |
% |
|
|
137 |
% |
|
|
145 |
% |
|
|
102 |
% |
|
|
86 |
% |
|
188
See accompanying notes to financial statements.
189
UBS U.S. Large Cap Value Equity FundFinancial highlights
The table below sets forth financial data for one share of beneficial interest outstanding throughout
each period presented.
|
|
Class A |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
10.54 |
|
|
$ |
10.48 |
|
|
$ |
11.18 |
|
|
$ |
9.31 |
|
|
$ |
9.37 |
|
|
Net investment income(1) |
|
|
0.13 |
|
|
|
0.11 |
|
|
|
0.12 |
|
|
|
0.09 |
|
|
|
0.11 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
2.03 |
|
|
|
1.12 |
|
|
|
1.22 |
|
|
|
1.80 |
|
|
|
(0.06 |
) |
|
Total income (loss) from investment operations |
|
|
2.16 |
|
|
|
1.23 |
|
|
|
1.34 |
|
|
|
1.89 |
|
|
|
0.05 |
|
|
Dividends from net investment income |
|
|
(0.11 |
) |
|
|
(0.12 |
) |
|
|
(0.12 |
) |
|
|
(0.02 |
) |
|
|
(0.05 |
) |
|
Distributions from net realized gains |
|
|
(0.93 |
) |
|
|
(1.05 |
) |
|
|
(1.92 |
) |
|
|
|
|
|
|
(0.06 |
) |
|
Total dividends/distributions |
|
|
(1.04 |
) |
|
|
(1.17 |
) |
|
|
(2.04 |
) |
|
|
(0.02 |
) |
|
|
(0.11 |
) |
|
Net asset value, end of year |
|
$ |
11.66 |
|
|
$ |
10.54 |
|
|
$ |
10.48 |
|
|
$ |
11.18 |
|
|
$ |
9.31 |
|
|
Total investment return(2) |
|
|
21.20 |
% |
|
|
12.13 |
% |
|
|
12.35 |
% |
|
|
20.28 |
% |
|
|
0.61 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
113,213 |
|
|
$ |
105,709 |
|
|
$ |
105,975 |
|
|
$ |
108,369 |
|
|
$ |
1,073 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.29 |
% |
|
|
1.31 |
% |
|
|
1.39 |
% |
|
|
1.42 |
% |
|
|
2.85 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
Net investment income to average net assets |
|
|
1.12 |
% |
|
|
1.07 |
% |
|
|
1.09 |
% |
|
|
0.86 |
% |
|
|
1.33 |
% |
|
Portfolio turnover |
|
|
27 |
% |
|
|
41 |
% |
|
|
49 |
% |
|
|
170 |
% |
|
|
59 |
% |
|
|
|
Class B |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
10.39 |
|
|
$ |
10.31 |
|
|
$ |
10.99 |
|
|
$ |
9.21 |
|
|
$ |
9.32 |
|
|
Net investment income(1) |
|
|
0.04 |
|
|
|
0.03 |
|
|
|
0.04 |
|
|
|
0.01 |
|
|
|
0.05 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
2.00 |
|
|
|
1.10 |
|
|
|
1.20 |
|
|
|
1.77 |
|
|
|
(0.07 |
) |
|
Total income (loss) from investment operations |
|
|
2.04 |
|
|
|
1.13 |
|
|
|
1.24 |
|
|
|
1.78 |
|
|
|
(0.02 |
) |
|
Dividends from net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.00 |
)(3) |
|
|
(0.03 |
) |
|
Distributions from net realized gains |
|
|
(0.93 |
) |
|
|
(1.05 |
) |
|
|
(1.92 |
) |
|
|
|
|
|
|
(0.06 |
) |
|
Total dividends/distributions |
|
|
(0.93 |
) |
|
|
(1.05 |
) |
|
|
(1.92 |
) |
|
|
(0.00 |
) |
|
|
(0.09 |
) |
|
Net asset value, end of year |
|
$ |
11.50 |
|
|
$ |
10.39 |
|
|
$ |
10.31 |
|
|
$ |
10.99 |
|
|
$ |
9.21 |
|
|
Total investment return(2) |
|
|
20.21 |
% |
|
|
11.25 |
% |
|
|
11.59 |
% |
|
|
19.38 |
% |
|
|
(0.17 |
)% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
1,061 |
|
|
$ |
1,978 |
|
|
$ |
4,997 |
|
|
$ |
14,556 |
|
|
$ |
709 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
2.19 |
% |
|
|
2.15 |
% |
|
|
2.35 |
% |
|
|
2.31 |
% |
|
|
3.42 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.85 |
% |
|
|
1.85 |
% |
|
|
1.85 |
% |
|
|
1.85 |
% |
|
|
1.85 |
% |
|
Net investment income to average net assets |
|
|
0.39 |
% |
|
|
0.32 |
% |
|
|
0.34 |
% |
|
|
0.11 |
% |
|
|
0.58 |
% |
|
Portfolio turnover |
|
|
27 |
% |
|
|
41 |
% |
|
|
49 |
% |
|
|
170 |
% |
|
|
59 |
% |
|
(1) The net investment income per share data was determined by using average shares outstanding throughout the year.
(2) Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of Fund shares.
(3) Amount represents less than $0.005 per share.
|
|
Class C |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
10.34 |
|
|
$ |
10.30 |
|
|
$ |
11.00 |
|
|
$ |
9.22 |
|
|
$ |
9.33 |
|
|
Net investment income(1) |
|
|
0.04 |
|
|
|
0.03 |
|
|
|
0.04 |
|
|
|
0.01 |
|
|
|
0.05 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
1.99 |
|
|
|
1.10 |
|
|
|
1.20 |
|
|
|
1.77 |
|
|
|
(0.07 |
) |
|
Total income (loss) from investment operations |
|
|
2.03 |
|
|
|
1.13 |
|
|
|
1.24 |
|
|
|
1.78 |
|
|
|
(0.02 |
) |
|
Dividends from net investment income |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
(0.02 |
) |
|
|
(0.00 |
)(3) |
|
|
(0.03 |
) |
|
Distributions from net realized gains |
|
|
(0.93 |
) |
|
|
(1.05 |
) |
|
|
(1.92 |
) |
|
|
|
|
|
|
(0.06 |
) |
|
Total dividends/distributions |
|
|
(0.95 |
) |
|
|
(1.09 |
) |
|
|
(1.94 |
) |
|
|
(0.00 |
) |
|
|
(0.09 |
) |
|
Net asset value, end of year |
|
$ |
11.42 |
|
|
$ |
10.34 |
|
|
$ |
10.30 |
|
|
$ |
11.00 |
|
|
$ |
9.22 |
|
|
Total investment return(2) |
|
|
20.24 |
% |
|
|
11.26 |
% |
|
|
11.62 |
% |
|
|
19.34 |
% |
|
|
(0.13 |
)% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
15,919 |
|
|
$ |
15,683 |
|
|
$ |
17,235 |
|
|
$ |
19,530 |
|
|
$ |
1,025 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
2.06 |
% |
|
|
2.08 |
% |
|
|
2.19 |
% |
|
|
2.17 |
% |
|
|
3.04 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.85 |
% |
|
|
1.85 |
% |
|
|
1.85 |
% |
|
|
1.85 |
% |
|
|
1.85 |
% |
|
Net investment income to average net assets |
|
|
0.37 |
% |
|
|
0.32 |
% |
|
|
0.34 |
% |
|
|
0.11 |
% |
|
|
0.58 |
% |
|
Portfolio turnover |
|
|
27 |
% |
|
|
41 |
% |
|
|
49 |
% |
|
|
170 |
% |
|
|
59 |
% |
|
|
|
Class Y |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
10.58 |
|
|
$ |
10.52 |
|
|
$ |
11.22 |
|
|
$ |
9.33 |
|
|
$ |
9.38 |
|
|
Net investment income(1) |
|
|
0.15 |
|
|
|
0.14 |
|
|
|
0.14 |
|
|
|
0.11 |
|
|
|
0.13 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
2.05 |
|
|
|
1.12 |
|
|
|
1.24 |
|
|
|
1.80 |
|
|
|
(0.06 |
) |
|
Total income (loss) from investment operations |
|
|
2.20 |
|
|
|
1.26 |
|
|
|
1.38 |
|
|
|
1.91 |
|
|
|
0.07 |
|
|
Dividends from net investment income |
|
|
(0.14 |
) |
|
|
(0.15 |
) |
|
|
(0.16 |
) |
|
|
(0.02 |
) |
|
|
(0.06 |
) |
|
Distributions from net realized gains |
|
|
(0.93 |
) |
|
|
(1.05 |
) |
|
|
(1.92 |
) |
|
|
|
|
|
|
(0.06 |
) |
|
Total dividends/distributions |
|
|
(1.07 |
) |
|
|
(1.20 |
) |
|
|
(2.08 |
) |
|
|
(0.02 |
) |
|
|
(0.12 |
) |
|
Net asset value, end of year |
|
$ |
11.71 |
|
|
$ |
10.58 |
|
|
$ |
10.52 |
|
|
$ |
11.22 |
|
|
$ |
9.33 |
|
|
Total investment return(2) |
|
|
21.52 |
% |
|
|
12.37 |
% |
|
|
12.74 |
% |
|
|
20.49 |
% |
|
|
0.89 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
9,074 |
|
|
$ |
7,172 |
|
|
$ |
5,760 |
|
|
$ |
4,516 |
|
|
$ |
4,790 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.06 |
% |
|
|
1.06 |
% |
|
|
1.13 |
% |
|
|
1.27 |
% |
|
|
2.62 |
% |
|
After expense reimbursement and earnings credits |
|
|
0.85 |
% |
|
|
0.85 |
% |
|
|
0.85 |
% |
|
|
0.85 |
% |
|
|
0.85 |
% |
|
Net investment income to average net assets |
|
|
1.36 |
% |
|
|
1.32 |
% |
|
|
1.34 |
% |
|
|
1.10 |
% |
|
|
1.58 |
% |
|
Portfolio turnover |
|
|
27 |
% |
|
|
41 |
% |
|
|
49 |
% |
|
|
170 |
% |
|
|
59 |
% |
|
190
See accompanying notes to financial statements.
191
UBS U.S. Mid Cap Growth Equity FundFinancial highlights
The table below sets forth financial data for one share of beneficial interest outstanding throughout
each period presented.
|
|
Class A |
|
Class C |
|
|
|
For the year ended June 30, 2007 |
|
For the period ended June 30, 2006(3) |
|
For the year ended June 30, 2007 |
|
For the period ended June 30, 2006(5) |
|
Net asset value, beginning of period |
|
$ |
9.60 |
|
|
$ |
10.15 |
|
|
$ |
9.58 |
|
|
$ |
10.41 |
|
|
Net investment loss(1) |
|
|
(0.10 |
) |
|
|
(0.02 |
) |
|
|
(0.17 |
) |
|
|
(0.03 |
) |
|
Net realized and unrealized gain (loss) from investment activities |
|
|
1.63 |
|
|
|
(0.53 |
) |
|
|
1.62 |
|
|
|
(0.80 |
) |
|
Total income (loss) from investment operations |
|
|
1.53 |
|
|
|
(0.55 |
) |
|
|
1.45 |
|
|
|
(0.83 |
) |
|
Net asset value, end of period |
|
$ |
11.13 |
|
|
$ |
9.60 |
|
|
$ |
11.03 |
|
|
$ |
9.58 |
|
|
Total investment return(2) |
|
|
15.94 |
% |
|
|
(5.42 |
)% |
|
|
15.14 |
% |
|
|
(7.97 |
)% |
|
Ratios/Supplemental data: |
|
Net assets, end of period (in 000s) |
|
$ |
261 |
|
|
$ |
162 |
|
|
$ |
82 |
|
|
$ |
67 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
4.61 |
% |
|
|
6.59 |
%(4) |
|
|
5.10 |
% |
|
|
7.52 |
%(4) |
|
After expense reimbursement and earnings credits |
|
|
1.45 |
% |
|
|
1.45 |
%(4) |
|
|
2.20 |
% |
|
|
2.20 |
%(4) |
|
Net investment loss to average net assets |
|
|
(0.99 |
)% |
|
|
(0.87 |
)%(4) |
|
|
(1.73 |
)% |
|
|
(1.62 |
)%(4) |
|
Portfolio turnover |
|
|
72 |
% |
|
|
12 |
% |
|
|
72 |
% |
|
|
12 |
% |
|
|
|
Class Y |
|
|
|
For the year ended June 30, 2007 |
|
For the period ended June 30, 2006(6) |
|
Net asset value, beginning of period |
|
$ |
9.61 |
|
|
$ |
10.00 |
|
|
Net investment loss(1) |
|
|
(0.07 |
) |
|
|
(0.02 |
) |
|
Net realized and unrealized gain (loss) from investment activities |
|
|
1.62 |
|
|
|
(0.37 |
) |
|
Total income (loss) from investment operations |
|
|
1.55 |
|
|
|
(0.39 |
) |
|
Dividends from net investment income |
|
|
(0.01 |
) |
|
|
|
|
|
Net asset value, end of period |
|
$ |
11.15 |
|
|
$ |
9.61 |
|
|
Total investment return(2) |
|
|
16.17 |
% |
|
|
(3.90 |
)% |
|
Ratios/Supplemental data: |
|
Net assets, end of period (in 000s) |
|
$ |
5,580 |
|
|
$ |
4,805 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
4.31 |
% |
|
|
5.90 |
%(4) |
|
After expense reimbursement and earnings credits |
|
|
1.20 |
% |
|
|
1.20 |
%(4) |
|
Net investment loss to average net assets |
|
|
(0.73 |
)% |
|
|
(0.61 |
)%(4) |
|
Portfolio turnover |
|
|
72 |
% |
|
|
12 |
% |
|
(1) The net investment loss per share data was determined by using average shares outstanding throughout the period.
(2) Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges; results would be lower if they were included. Total investment return for periods of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of Fund shares.
(3) For the period March 31, 2006 (commencent of issuance) through June 30, 2006.
(4) Annualized.
(5) For the period April 21, 2006 (commencement of issuance) through June 30, 2006.
(6) For the period March 27, 2006 (commencement of operations) through June 30, 2006.
See accompanying notes to financial statements.
192
This page intentionally left blank.
193
UBS U.S. Small Cap Growth FundFinancial highlights
The table below sets forth financial data for one share of beneficial interest outstanding throughout
each period presented.
|
|
Class A |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
14.41 |
|
|
$ |
13.65 |
|
|
$ |
12.41 |
|
|
$ |
10.00 |
|
|
$ |
9.79 |
|
|
Net investment loss(1) |
|
|
(0.14 |
) |
|
|
(0.12 |
) |
|
|
(0.11 |
) |
|
|
(0.11 |
) |
|
|
(0.08 |
) |
|
Net realized and unrealized gain from investment activities |
|
|
2.14 |
|
|
|
1.45 |
|
|
|
1.55 |
|
|
|
2.55 |
|
|
|
0.29 |
|
|
Total income from investment operations |
|
|
2.00 |
|
|
|
1.33 |
|
|
|
1.44 |
|
|
|
2.44 |
|
|
|
0.21 |
|
|
Distributions from net realized gains |
|
|
(0.47 |
) |
|
|
(0.57 |
) |
|
|
(0.20 |
) |
|
|
(0.03 |
) |
|
|
|
|
|
Net asset value, end of year |
|
$ |
15.94 |
|
|
$ |
14.41 |
|
|
$ |
13.65 |
|
|
$ |
12.41 |
|
|
$ |
10.00 |
|
|
Total investment return(2) |
|
|
14.18 |
% |
|
|
9.88 |
% |
|
|
11.63 |
% |
|
|
24.45 |
% |
|
|
2.14 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
149,362 |
|
|
$ |
151,731 |
|
|
$ |
110,795 |
|
|
$ |
73,833 |
|
|
$ |
9,841 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.65 |
% |
|
|
1.50 |
% |
|
|
1.59 |
% |
|
|
1.56 |
% |
|
|
1.71 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.28 |
% |
|
|
1.28 |
% |
|
|
1.28 |
% |
|
|
1.28 |
% |
|
|
1.40 |
% |
|
Net investment loss to average net assets |
|
|
(0.93 |
)% |
|
|
(0.82 |
)% |
|
|
(0.88 |
)% |
|
|
(0.90 |
)% |
|
|
(0.90 |
)% |
|
Portfolio turnover |
|
|
34 |
% |
|
|
49 |
% |
|
|
50 |
% |
|
|
75 |
% |
|
|
69 |
% |
|
|
|
Class B |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
13.91 |
|
|
$ |
13.29 |
|
|
$ |
12.17 |
|
|
$ |
9.89 |
|
|
$ |
9.75 |
|
|
Net investment loss(1) |
|
|
(0.24 |
) |
|
|
(0.22 |
) |
|
|
(0.20 |
) |
|
|
(0.20 |
) |
|
|
(0.14 |
) |
|
Net realized and unrealized gain from investment activities |
|
|
2.05 |
|
|
|
1.41 |
|
|
|
1.52 |
|
|
|
2.51 |
|
|
|
0.28 |
|
|
Total income from investment operations |
|
|
1.81 |
|
|
|
1.19 |
|
|
|
1.32 |
|
|
|
2.31 |
|
|
|
0.14 |
|
|
Distributions from net realized gains |
|
|
(0.47 |
) |
|
|
(0.57 |
) |
|
|
(0.20 |
) |
|
|
(0.03 |
) |
|
|
|
|
|
Net asset value, end of year |
|
$ |
15.25 |
|
|
$ |
13.91 |
|
|
$ |
13.29 |
|
|
$ |
12.17 |
|
|
$ |
9.89 |
|
|
Total investment return(2) |
|
|
13.32 |
% |
|
|
9.09 |
% |
|
|
10.86 |
% |
|
|
23.40 |
% |
|
|
1.44 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
1,798 |
|
|
$ |
5,598 |
|
|
$ |
9,592 |
|
|
$ |
11,683 |
|
|
$ |
1,132 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
2.29 |
% |
|
|
2.39 |
% |
|
|
2.53 |
% |
|
|
2.55 |
% |
|
|
2.47 |
% |
|
After expense reimbursement and earnings credits |
|
|
2.03 |
% |
|
|
2.03 |
% |
|
|
2.03 |
% |
|
|
2.03 |
% |
|
|
2.15 |
% |
|
Net investment loss to average net assets |
|
|
(1.69 |
)% |
|
|
(1.57 |
)% |
|
|
1.63 |
% |
|
|
(1.62 |
)% |
|
|
(1.65 |
)% |
|
Portfolio turnover |
|
|
34 |
% |
|
|
49 |
% |
|
|
50 |
% |
|
|
75 |
% |
|
|
69 |
% |
|
(1) The net investment loss per share data was determined by using average shares outstanding throughout the year.
(2) Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of Fund shares.
|
|
Class C |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
13.89 |
|
|
$ |
13.28 |
|
|
$ |
12.16 |
|
|
$ |
9.88 |
|
|
$ |
9.74 |
|
|
Net investment loss(1) |
|
|
(0.24 |
) |
|
|
(0.22 |
) |
|
|
(0.20 |
) |
|
|
(0.20 |
) |
|
|
(0.14 |
) |
|
Net realized and unrealized gain from investment activities |
|
|
2.05 |
|
|
|
1.40 |
|
|
|
1.52 |
|
|
|
2.51 |
|
|
|
0.28 |
|
|
Total income from investment operations |
|
|
1.81 |
|
|
|
1.18 |
|
|
|
1.32 |
|
|
|
2.31 |
|
|
|
0.14 |
|
|
Distributions from net realized gains |
|
|
(0.47 |
) |
|
|
(0.57 |
) |
|
|
(0.20 |
) |
|
|
(0.03 |
) |
|
|
|
|
|
Net asset value, end of year |
|
$ |
15.23 |
|
|
$ |
13.89 |
|
|
$ |
13.28 |
|
|
$ |
12.16 |
|
|
$ |
9.88 |
|
|
Total investment return(2) |
|
|
13.33 |
% |
|
|
9.02 |
% |
|
|
10.87 |
% |
|
|
23.43 |
% |
|
|
1.44 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
7,877 |
|
|
$ |
8,329 |
|
|
$ |
8,661 |
|
|
$ |
9,580 |
|
|
$ |
757 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
2.28 |
% |
|
|
2.31 |
% |
|
|
2.45 |
% |
|
|
2.54 |
% |
|
|
2.47 |
% |
|
After expense reimbursement and earnings credits |
|
|
2.03 |
% |
|
|
2.03 |
% |
|
|
2.03 |
% |
|
|
2.03 |
% |
|
|
2.15 |
% |
|
Net investment loss to average net assets |
|
|
(1.68 |
)% |
|
|
(1.57 |
)% |
|
|
(1.63 |
)% |
|
|
(1.63 |
)% |
|
|
(1.65 |
)% |
|
Portfolio turnover |
|
|
34 |
% |
|
|
49 |
% |
|
|
50 |
% |
|
|
75 |
% |
|
|
69 |
% |
|
|
|
Class Y |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
14.75 |
|
|
$ |
13.93 |
|
|
$ |
12.63 |
|
|
$ |
10.15 |
|
|
$ |
9.92 |
|
|
Net investment loss(1) |
|
|
(0.10 |
) |
|
|
(0.08 |
) |
|
|
(0.08 |
) |
|
|
(0.08 |
) |
|
|
(0.06 |
) |
|
Net realized and unrealized gain from investment activities |
|
|
2.20 |
|
|
|
1.47 |
|
|
|
1.58 |
|
|
|
2.59 |
|
|
|
0.29 |
|
|
Total income from investment operations |
|
|
2.10 |
|
|
|
1.39 |
|
|
|
1.50 |
|
|
|
2.51 |
|
|
|
0.23 |
|
|
Distributions from net realized gains |
|
|
(0.47 |
) |
|
|
(0.57 |
) |
|
|
(0.20 |
) |
|
|
(0.03 |
) |
|
|
|
|
|
Net asset value, end of year |
|
$ |
16.38 |
|
|
$ |
14.75 |
|
|
$ |
13.93 |
|
|
$ |
12.63 |
|
|
$ |
10.15 |
|
|
Total investment return(2) |
|
|
14.54 |
% |
|
|
10.12 |
% |
|
|
11.90 |
% |
|
|
24.78 |
% |
|
|
2.32 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
303,029 |
|
|
$ |
269,696 |
|
|
$ |
146,725 |
|
|
$ |
91,406 |
|
|
$ |
39,785 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.18 |
% |
|
|
1.13 |
% |
|
|
1.14 |
% |
|
|
1.21 |
% |
|
|
1.49 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.03 |
% |
|
|
1.03 |
% |
|
|
1.03 |
% |
|
|
1.03 |
% |
|
|
1.15 |
% |
|
Net investment loss to average net assets |
|
|
(0.68 |
)% |
|
|
(0.57 |
)% |
|
|
(0.63 |
)% |
|
|
(0.66 |
)% |
|
|
(0.66 |
)% |
|
Portfolio turnover |
|
|
34 |
% |
|
|
49 |
% |
|
|
50 |
% |
|
|
75 |
% |
|
|
69 |
% |
|
194
See accompanying notes to financial statements.
195
UBS Absolute Return Bond FundFinancial highlights
The table below sets forth financial data for one share of beneficial interest outstanding throughout
each period presented.
|
|
Class A |
|
|
|
Year ended June 30, |
|
For the period ended |
|
|
|
2007 |
|
2006 |
|
June 30, 2005(3) |
|
Net asset value, beginning of period |
|
$ |
10.14 |
|
|
$ |
9.98 |
|
|
$ |
10.00 |
|
|
Net investment income(1) |
|
|
0.35 |
|
|
|
0.28 |
|
|
|
0.03 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
(0.06 |
) |
|
|
0.18 |
|
|
|
(0.02 |
) |
|
Total income from investment operations |
|
|
0.29 |
|
|
|
0.46 |
|
|
|
0.01 |
|
|
Dividends from net investment income |
|
|
(0.30 |
) |
|
|
(0.29 |
) |
|
|
(0.03 |
) |
|
Distributions from net realized gains |
|
|
(0.08 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
Total dividends/distributions |
|
|
(0.38 |
) |
|
|
(0.30 |
) |
|
|
(0.03 |
) |
|
Net asset value, end of period |
|
$ |
10.05 |
|
|
$ |
10.14 |
|
|
$ |
9.98 |
|
|
Total investment return(2) |
|
|
2.87 |
% |
|
|
4.65 |
% |
|
|
0.06 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of period (in 000s) |
|
$ |
257,180 |
|
|
$ |
212,983 |
|
|
$ |
105,373 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement/recoupment and earnings credits |
|
|
0.95 |
% |
|
|
0.96 |
% |
|
|
1.31 |
%(4) |
|
After expense reimbursement/recoupment and earnings credits |
|
|
0.95 |
% |
|
|
0.99 |
% |
|
|
1.00 |
%(4) |
|
Net investment income to average net assets |
|
|
3.43 |
% |
|
|
2.78 |
% |
|
|
1.75 |
%(4) |
|
Portfolio turnover |
|
|
56 |
% |
|
|
96 |
% |
|
|
22 |
% |
|
(1) The net investment income per share data was determined by using average shares outstanding throughout the period.
(2) Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges; results would be lower if they were included. Total investment return for periods of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on distribut
ions or the redemption of Fund shares.
(3) For the period April 27, 2005 (commencement of operations) through June 30, 2005.
(4) Annualized.
|
|
Class C |
|
|
|
Year ended June 30, |
|
For the period ended |
|
|
|
2007 |
|
2006 |
|
June 30, 2005(3) |
|
Net asset value, beginning of period |
|
$ |
10.14 |
|
|
$ |
9.98 |
|
|
$ |
10.00 |
|
|
Net investment income(1) |
|
|
0.31 |
|
|
|
0.24 |
|
|
|
0.02 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
(0.06 |
) |
|
|
0.18 |
|
|
|
(0.02 |
) |
|
Total income from investment operations |
|
|
0.25 |
|
|
|
0.42 |
|
|
|
0.00 |
|
|
Dividends from net investment income |
|
|
(0.27 |
) |
|
|
(0.25 |
) |
|
|
(0.02 |
) |
|
Distributions from net realized gains |
|
|
(0.08 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
Total dividends/distributions |
|
|
(0.35 |
) |
|
|
(0.26 |
) |
|
|
(0.02 |
) |
|
Net asset value, end of period |
|
$ |
10.04 |
|
|
$ |
10.14 |
|
|
$ |
9.98 |
|
|
Total investment return(2) |
|
|
2.42 |
% |
|
|
4.30 |
% |
|
|
0.01 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of period (in 000s) |
|
$ |
37,548 |
|
|
$ |
30,618 |
|
|
$ |
16,973 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement/recoupment and earnings credits |
|
|
1.29 |
% |
|
|
1.32 |
% |
|
|
1.68 |
%(4) |
|
After expense reimbursement/recoupment and earnings credits |
|
|
1.30 |
% |
|
|
1.35 |
% |
|
|
1.35 |
%(4) |
|
Net investment income to average net assets |
|
|
3.07 |
% |
|
|
2.42 |
% |
|
|
1.40 |
%(4) |
|
Portfolio turnover |
|
|
56 |
% |
|
|
96 |
% |
|
|
22 |
% |
|
|
|
Class Y |
|
|
|
Year ended June 30, |
|
For the period ended |
|
|
|
2007 |
|
2006 |
|
June 30, 2005(3) |
|
Net asset value, beginning of period |
|
$ |
10.15 |
|
|
$ |
9.98 |
|
|
$ |
10.00 |
|
|
Net investment income(1) |
|
|
0.37 |
|
|
|
0.30 |
|
|
|
0.03 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
(0.07 |
) |
|
|
0.19 |
|
|
|
(0.02 |
) |
|
Total income from investment operations |
|
|
0.30 |
|
|
|
0.49 |
|
|
|
0.01 |
|
|
Dividends from net investment income |
|
|
(0.32 |
) |
|
|
(0.31 |
) |
|
|
(0.03 |
) |
|
Distributions from net realized gains |
|
|
(0.08 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
Total dividends/distributions |
|
|
(0.40 |
) |
|
|
(0.32 |
) |
|
|
(0.03 |
) |
|
Net asset value, end of period |
|
$ |
10.05 |
|
|
$ |
10.15 |
|
|
$ |
9.98 |
|
|
Total investment return(2) |
|
|
2.96 |
% |
|
|
4.94 |
% |
|
|
0.09 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of period (in 000s) |
|
$ |
259,089 |
|
|
$ |
232,208 |
|
|
$ |
20,004 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement/recoupment and earnings credits |
|
|
0.75 |
% |
|
|
0.77 |
% |
|
|
1.11 |
%(4) |
|
After expense reimbursement/recoupment and earnings credits |
|
|
0.75 |
% |
|
|
0.77 |
% |
|
|
0.85 |
%(4) |
|
Net investment income to average net assets |
|
|
3.63 |
% |
|
|
3.00 |
% |
|
|
1.90 |
%(4) |
|
Portfolio turnover |
|
|
56 |
% |
|
|
96 |
% |
|
|
22 |
% |
|
196
See accompanying notes to financial statements.
197
UBS Global Bond FundFinancial highlights
The table below sets forth financial data for one share of beneficial interest outstanding throughout
each period presented.
|
|
Class A |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of period |
|
$ |
9.50 |
|
|
$ |
9.83 |
|
|
$ |
9.87 |
|
|
$ |
10.24 |
|
|
$ |
9.01 |
|
|
Net investment income(1) |
|
|
0.26 |
|
|
|
0.19 |
|
|
|
0.17 |
|
|
|
0.19 |
|
|
|
0.24 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
(0.10 |
) |
|
|
(0.15 |
) |
|
|
0.34 |
|
|
|
0.35 |
|
|
|
1.21 |
|
|
Total income (loss) from investment operations |
|
|
0.16 |
|
|
|
0.04 |
|
|
|
0.51 |
|
|
|
0.54 |
|
|
|
1.45 |
|
|
Dividends from net investment income |
|
|
(0.25 |
) |
|
|
(0.37 |
) |
|
|
(0.55 |
) |
|
|
(0.91 |
) |
|
|
(0.22 |
) |
|
Net asset value, end of period |
|
$ |
9.41 |
|
|
$ |
9.50 |
|
|
$ |
9.83 |
|
|
$ |
9.87 |
|
|
$ |
10.24 |
|
|
Total investment return(2) |
|
|
1.67 |
% |
|
|
0.51 |
% |
|
|
5.05 |
% |
|
|
5.21 |
% |
|
|
16.34 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of period (in 000s) |
|
$ |
14,093 |
|
|
$ |
15,546 |
|
|
$ |
16,701 |
|
|
$ |
14,610 |
|
|
$ |
11,659 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.40 |
% |
|
|
1.48 |
% |
|
|
1.48 |
% |
|
|
1.55 |
% |
|
|
1.53 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.15 |
% |
|
|
1.15 |
% |
|
|
1.15 |
% |
|
|
1.15 |
% |
|
|
1.15 |
% |
|
Net investment income to average net assets |
|
|
2.67 |
% |
|
|
1.97 |
% |
|
|
1.65 |
% |
|
|
1.84 |
% |
|
|
2.44 |
% |
|
Portfolio turnover |
|
|
74 |
% |
|
|
114 |
% |
|
|
112 |
% |
|
|
186 |
% |
|
|
145 |
% |
|
|
|
Class B |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
9.52 |
|
|
$ |
9.85 |
|
|
$ |
9.88 |
|
|
$ |
10.25 |
|
|
$ |
9.01 |
|
|
Net investment income(1) |
|
|
0.18 |
|
|
|
0.12 |
|
|
|
0.09 |
|
|
|
0.11 |
|
|
|
0.16 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
(0.09 |
) |
|
|
(0.15 |
) |
|
|
0.35 |
|
|
|
0.35 |
|
|
|
1.23 |
|
|
Total income (loss) from investment operations |
|
|
0.09 |
|
|
|
(0.03 |
) |
|
|
0.44 |
|
|
|
0.46 |
|
|
|
1.39 |
|
|
Dividends from net investment income |
|
|
(0.18 |
) |
|
|
(0.30 |
) |
|
|
(0.47 |
) |
|
|
(0.83 |
) |
|
|
(0.15 |
) |
|
Net asset value, end of year |
|
$ |
9.43 |
|
|
$ |
9.52 |
|
|
$ |
9.85 |
|
|
$ |
9.88 |
|
|
$ |
10.25 |
|
|
Total investment return(2) |
|
|
0.90 |
% |
|
|
(0.26 |
)% |
|
|
4.29 |
% |
|
|
4.38 |
% |
|
|
15.61 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
215 |
|
|
$ |
420 |
|
|
$ |
1,153 |
|
|
$ |
1,536 |
|
|
$ |
1,755 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
2.17 |
% |
|
|
2.25 |
% |
|
|
2.30 |
% |
|
|
2.33 |
% |
|
|
2.30 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.90 |
% |
|
|
1.90 |
% |
|
|
1.90 |
% |
|
|
1.90 |
% |
|
|
1.90 |
% |
|
Net investment income to average net assets |
|
|
1.92 |
% |
|
|
1.22 |
% |
|
|
0.90 |
% |
|
|
1.09 |
% |
|
|
1.69 |
% |
|
Portfolio turnover |
|
|
74 |
% |
|
|
114 |
% |
|
|
112 |
% |
|
|
186 |
% |
|
|
145 |
% |
|
(1) The net investment income per share data was determined by using average shares outstanding throughout the period.
(2) Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges; results would be lower if they were included. Total investment return for periods of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on distribut
ions or the redemption of Fund shares.
(3) For the period July 2, 2002 (commencement of issuance) through June 30, 2003.
(4) Annualized.
|
|
Class C |
|
|
|
Year ended June 30, |
|
For the period ended |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
June 30, 2003(3) |
|
Net asset value, beginning of period |
|
$ |
9.47 |
|
|
$ |
9.81 |
|
|
$ |
9.85 |
|
|
$ |
10.23 |
|
|
$ |
9.00 |
|
|
Net investment income(1) |
|
|
0.21 |
|
|
|
0.14 |
|
|
|
0.12 |
|
|
|
0.14 |
|
|
|
0.19 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
(0.10 |
) |
|
|
(0.15 |
) |
|
|
0.35 |
|
|
|
0.34 |
|
|
|
1.22 |
|
|
Total income (loss) from investment operations |
|
|
0.11 |
|
|
|
(0.01 |
) |
|
|
0.47 |
|
|
|
0.48 |
|
|
|
1.41 |
|
|
Dividends from net investment income |
|
|
(0.20 |
) |
|
|
(0.33 |
) |
|
|
(0.51 |
) |
|
|
(0.86 |
) |
|
|
(0.18 |
) |
|
Net asset value, end of period |
|
$ |
9.38 |
|
|
$ |
9.47 |
|
|
$ |
9.81 |
|
|
$ |
9.85 |
|
|
$ |
10.23 |
|
|
Total investment return(2) |
|
|
1.17 |
% |
|
|
(0.09 |
)% |
|
|
4.60 |
% |
|
|
4.64 |
% |
|
|
15.84 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of period (in 000s) |
|
$ |
1,491 |
|
|
$ |
2,426 |
|
|
$ |
3,081 |
|
|
$ |
3,451 |
|
|
$ |
3,198 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.77 |
% |
|
|
1.88 |
% |
|
|
1.92 |
% |
|
|
1.99 |
% |
|
|
2.01 |
%(4) |
|
After expense reimbursement and earnings credits |
|
|
1.65 |
% |
|
|
1.65 |
% |
|
|
1.65 |
% |
|
|
1.65 |
% |
|
|
1.65 |
%(4) |
|
Net investment income to average net assets |
|
|
2.17 |
% |
|
|
1.47 |
% |
|
|
1.15 |
% |
|
|
1.34 |
% |
|
|
1.94 |
%(4) |
|
Portfolio turnover |
|
|
74 |
% |
|
|
114 |
% |
|
|
112 |
% |
|
|
186 |
% |
|
|
145 |
% |
|
|
|
Class Y |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
10.51 |
|
|
$ |
10.84 |
|
|
$ |
10.83 |
|
|
$ |
11.16 |
|
|
$ |
9.79 |
|
|
Net investment income(1) |
|
|
0.31 |
|
|
|
0.23 |
|
|
|
0.21 |
|
|
|
0.23 |
|
|
|
0.28 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
(0.10 |
) |
|
|
(0.17 |
) |
|
|
0.38 |
|
|
|
0.38 |
|
|
|
1.33 |
|
|
Total income (loss) from investment operations |
|
|
0.21 |
|
|
|
0.06 |
|
|
|
0.59 |
|
|
|
0.61 |
|
|
|
1.61 |
|
|
Dividends from net investment income |
|
|
(0.27 |
) |
|
|
(0.39 |
) |
|
|
(0.58 |
) |
|
|
(0.94 |
) |
|
|
(0.24 |
) |
|
Net asset value, end of year |
|
$ |
10.45 |
|
|
$ |
10.51 |
|
|
$ |
10.84 |
|
|
$ |
10.83 |
|
|
$ |
11.16 |
|
|
Total investment return(2) |
|
|
2.03 |
% |
|
|
0.65 |
% |
|
|
5.36 |
% |
|
|
5.43 |
% |
|
|
16.72 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
107,465 |
|
|
$ |
80,536 |
|
|
$ |
52,345 |
|
|
$ |
41,016 |
|
|
$ |
35,484 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.03 |
% |
|
|
1.16 |
% |
|
|
1.16 |
% |
|
|
1.24 |
% |
|
|
1.32 |
% |
|
After expense reimbursement and earnings credits |
|
|
0.90 |
% |
|
|
0.90 |
% |
|
|
0.90 |
% |
|
|
0.90 |
% |
|
|
0.90 |
% |
|
Net investment income to average net assets |
|
|
2.93 |
% |
|
|
2.22 |
% |
|
|
1.90 |
% |
|
|
2.09 |
% |
|
|
2.69 |
% |
|
Portfolio turnover |
|
|
74 |
% |
|
|
114 |
% |
|
|
112 |
% |
|
|
186 |
% |
|
|
145 |
% |
|
198
See accompanying notes to financial statements.
199
UBS High Yield FundFinancial highlights
The table below sets forth financial data for one share of beneficial interest outstanding throughout
each period presented.
|
|
Class A |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
6.89 |
|
|
$ |
7.14 |
|
|
$ |
7.06 |
|
|
$ |
6.84 |
|
|
$ |
6.36 |
|
|
Net investment income(1) |
|
|
0.50 |
|
|
|
0.55 |
|
|
|
0.57 |
|
|
|
0.58 |
|
|
|
0.56 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
0.08 |
|
|
|
(0.24 |
) |
|
|
0.10 |
|
|
|
0.22 |
|
|
|
0.50 |
|
|
Total income from investment operations |
|
|
0.58 |
|
|
|
0.31 |
|
|
|
0.67 |
|
|
|
0.80 |
|
|
|
1.06 |
|
|
Dividends from net investment income |
|
|
(0.55 |
) |
|
|
(0.56 |
) |
|
|
(0.59 |
) |
|
|
(0.58 |
) |
|
|
(0.58 |
) |
|
Net asset value, end of year |
|
$ |
6.92 |
|
|
$ |
6.89 |
|
|
$ |
7.14 |
|
|
$ |
7.06 |
|
|
$ |
6.84 |
|
|
Total investment return(2) |
|
|
8.60 |
% |
|
|
4.48 |
% |
|
|
9.66 |
% |
|
|
12.15 |
% |
|
|
17.70 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
45,031 |
|
|
$ |
51,121 |
|
|
$ |
66,677 |
|
|
$ |
72,614 |
|
|
$ |
76,309 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.28 |
% |
|
|
1.37 |
% |
|
|
1.28 |
% |
|
|
1.31 |
% |
|
|
1.29 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.20 |
% |
|
|
1.20 |
% |
|
|
1.20 |
% |
|
|
1.20 |
% |
|
|
0.95 |
% |
|
Net investment income to average net assets |
|
|
7.16 |
% |
|
|
7.86 |
% |
|
|
7.83 |
% |
|
|
8.27 |
% |
|
|
8.72 |
% |
|
Portfolio turnover |
|
|
46 |
% |
|
|
64 |
% |
|
|
61 |
% |
|
|
80 |
% |
|
|
71 |
% |
|
|
|
Class B |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
6.89 |
|
|
$ |
7.14 |
|
|
$ |
7.06 |
|
|
$ |
6.83 |
|
|
$ |
6.35 |
|
|
Net investment income(1) |
|
|
0.45 |
|
|
|
0.50 |
|
|
|
0.51 |
|
|
|
0.53 |
|
|
|
0.51 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
0.09 |
|
|
|
(0.25 |
) |
|
|
0.10 |
|
|
|
0.23 |
|
|
|
0.50 |
|
|
Total income from investment operations |
|
|
0.54 |
|
|
|
0.25 |
|
|
|
0.61 |
|
|
|
0.76 |
|
|
|
1.01 |
|
|
Dividends from net investment income |
|
|
(0.50 |
) |
|
|
(0.50 |
) |
|
|
(0.53 |
) |
|
|
(0.53 |
) |
|
|
(0.53 |
) |
|
Net asset value, end of year |
|
$ |
6.93 |
|
|
$ |
6.89 |
|
|
$ |
7.14 |
|
|
$ |
7.06 |
|
|
$ |
6.83 |
|
|
Total investment return(2) |
|
|
7.93 |
% |
|
|
3.69 |
% |
|
|
8.79 |
% |
|
|
11.48 |
% |
|
|
16.83 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
2,386 |
|
|
$ |
2,497 |
|
|
$ |
3,945 |
|
|
$ |
7,844 |
|
|
$ |
13,130 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
2.04 |
% |
|
|
2.09 |
% |
|
|
1.99 |
% |
|
|
2.05 |
% |
|
|
2.05 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.95 |
% |
|
|
1.95 |
% |
|
|
1.95 |
% |
|
|
1.95 |
% |
|
|
1.70 |
% |
|
Net investment income to average net assets |
|
|
6.42 |
% |
|
|
7.11 |
% |
|
|
7.08 |
% |
|
|
7.53 |
% |
|
|
7.97 |
% |
|
Portfolio turnover |
|
|
46 |
% |
|
|
64 |
% |
|
|
61 |
% |
|
|
80 |
% |
|
|
71 |
% |
|
(1) The net investment income per share data was determined by using average shares outstanding throughout the year.
(2) Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of Fund shares.
|
|
Class C |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
6.89 |
|
|
$ |
7.14 |
|
|
$ |
7.06 |
|
|
$ |
6.84 |
|
|
$ |
6.35 |
|
|
Net investment income(1) |
|
|
0.47 |
|
|
|
0.52 |
|
|
|
0.53 |
|
|
|
0.55 |
|
|
|
0.53 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
0.08 |
|
|
|
(0.25 |
) |
|
|
0.10 |
|
|
|
0.22 |
|
|
|
0.51 |
|
|
Total income from investment operations |
|
|
0.55 |
|
|
|
0.27 |
|
|
|
0.63 |
|
|
|
0.77 |
|
|
|
1.04 |
|
|
Dividends from net investment income |
|
|
(0.51 |
) |
|
|
(0.52 |
) |
|
|
(0.55 |
) |
|
|
(0.55 |
) |
|
|
(0.55 |
) |
|
Net asset value, end of year |
|
$ |
6.93 |
|
|
$ |
6.89 |
|
|
$ |
7.14 |
|
|
$ |
7.06 |
|
|
$ |
6.84 |
|
|
Total investment return(2) |
|
|
8.05 |
% |
|
|
3.95 |
% |
|
|
9.09 |
% |
|
|
11.59 |
% |
|
|
17.29 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
11,330 |
|
|
$ |
12,177 |
|
|
$ |
15,389 |
|
|
$ |
17,499 |
|
|
$ |
18,969 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.78 |
% |
|
|
1.86 |
% |
|
|
1.79 |
% |
|
|
1.82 |
% |
|
|
1.79 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.70 |
% |
|
|
1.70 |
% |
|
|
1.70 |
% |
|
|
1.70 |
% |
|
|
1.45 |
% |
|
Net investment income to average net assets |
|
|
6.66 |
% |
|
|
7.36 |
% |
|
|
7.33 |
% |
|
|
7.78 |
% |
|
|
8.22 |
% |
|
Portfolio turnover |
|
|
46 |
% |
|
|
64 |
% |
|
|
61 |
% |
|
|
80 |
% |
|
|
71 |
% |
|
|
|
Class Y |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
6.92 |
|
|
$ |
7.17 |
|
|
$ |
7.10 |
|
|
$ |
6.87 |
|
|
$ |
6.38 |
|
|
Net investment income(1) |
|
|
0.52 |
|
|
|
0.57 |
|
|
|
0.59 |
|
|
|
0.61 |
|
|
|
0.58 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
0.09 |
|
|
|
(0.24 |
) |
|
|
0.09 |
|
|
|
0.23 |
|
|
|
0.50 |
|
|
Total income from investment operations |
|
|
0.61 |
|
|
|
0.33 |
|
|
|
0.68 |
|
|
|
0.84 |
|
|
|
1.08 |
|
|
Dividends from net investment income |
|
|
(0.57 |
) |
|
|
(0.58 |
) |
|
|
(0.61 |
) |
|
|
(0.61 |
) |
|
|
(0.59 |
) |
|
Net asset value, end of year |
|
$ |
6.96 |
|
|
$ |
6.92 |
|
|
$ |
7.17 |
|
|
$ |
7.10 |
|
|
$ |
6.87 |
|
|
Total investment return(2) |
|
|
8.98 |
% |
|
|
4.72 |
% |
|
|
9.82 |
% |
|
|
12.66 |
% |
|
|
18.08 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
47,768 |
|
|
$ |
33,015 |
|
|
$ |
30,277 |
|
|
$ |
48,038 |
|
|
$ |
71,819 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
0.98 |
% |
|
|
1.06 |
% |
|
|
0.96 |
% |
|
|
0.92 |
% |
|
|
1.05 |
% |
|
After expense reimbursement and earnings credits |
|
|
0.95 |
% |
|
|
0.95 |
% |
|
|
0.95 |
% |
|
|
0.92 |
% |
|
|
0.70 |
% |
|
Net investment income to average net assets |
|
|
7.43 |
% |
|
|
8.11 |
% |
|
|
8.08 |
% |
|
|
8.55 |
% |
|
|
8.97 |
% |
|
Portfolio turnover |
|
|
46 |
% |
|
|
64 |
% |
|
|
61 |
% |
|
|
80 |
% |
|
|
71 |
% |
|
200
See accompanying notes to financial statements.
201
UBS U.S. Bond FundFinancial highlights
The table below sets forth financial data for one share of beneficial interest outstanding throughout
each period presented.
|
|
Class A |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
10.27 |
|
|
$ |
10.73 |
|
|
$ |
10.56 |
|
|
$ |
10.99 |
|
|
$ |
10.51 |
|
|
Net investment income(1) |
|
|
0.32 |
|
|
|
0.40 |
|
|
|
0.39 |
|
|
|
0.39 |
|
|
|
0.42 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
0.24 |
|
|
|
(0.42 |
) |
|
|
0.20 |
|
|
|
(0.37 |
) |
|
|
0.52 |
|
|
Total income (loss) from investment operations |
|
|
0.56 |
|
|
|
(0.02 |
) |
|
|
0.59 |
|
|
|
0.02 |
|
|
|
0.94 |
|
|
Dividends from net investment income |
|
|
(0.37 |
) |
|
|
(0.44 |
) |
|
|
(0.42 |
) |
|
|
(0.45 |
) |
|
|
(0.46 |
) |
|
Net increase from payment by Advisor |
|
|
0.00 |
(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of year |
|
$ |
10.46 |
|
|
$ |
10.27 |
|
|
$ |
10.73 |
|
|
$ |
10.56 |
|
|
$ |
10.99 |
|
|
Total investment return(2) |
|
|
5.39 |
%(4) |
|
|
(0.07 |
)% |
|
|
5.72 |
% |
|
|
0.18 |
% |
|
|
9.17 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
29,356 |
|
|
$ |
31,285 |
|
|
$ |
34,282 |
|
|
$ |
31,420 |
|
|
$ |
31,337 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.07 |
% |
|
|
1.07 |
% |
|
|
1.19 |
% |
|
|
1.11 |
% |
|
|
1.04 |
% |
|
After expense reimbursement and earnings credits |
|
|
0.85 |
% |
|
|
0.85 |
% |
|
|
0.85 |
% |
|
|
0.85 |
% |
|
|
0.85 |
% |
|
Net investment income to average net assets |
|
|
3.08 |
% |
|
|
3.79 |
% |
|
|
3.61 |
% |
|
|
3.58 |
% |
|
|
3.89 |
% |
|
Portfolio turnover |
|
|
209 |
% |
|
|
229 |
% |
|
|
174 |
% |
|
|
137 |
% |
|
|
180 |
% |
|
|
|
Class B |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
10.28 |
|
|
$ |
10.74 |
|
|
$ |
10.56 |
|
|
$ |
10.97 |
|
|
$ |
10.50 |
|
|
Net investment income(1) |
|
|
0.25 |
|
|
|
0.32 |
|
|
|
0.31 |
|
|
|
0.30 |
|
|
|
0.34 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
0.23 |
|
|
|
(0.42 |
) |
|
|
0.21 |
|
|
|
(0.36 |
) |
|
|
0.52 |
|
|
Total income (loss) from investment operations |
|
|
0.48 |
|
|
|
(0.10 |
) |
|
|
0.52 |
|
|
|
(0.06 |
) |
|
|
0.86 |
|
|
Dividends from net investment income |
|
|
(0.29 |
) |
|
|
(0.36 |
) |
|
|
(0.34 |
) |
|
|
(0.35 |
) |
|
|
(0.39 |
) |
|
Net increase from payment by Advisor |
|
|
0.00 |
(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of year |
|
$ |
10.47 |
|
|
$ |
10.28 |
|
|
$ |
10.74 |
|
|
$ |
10.56 |
|
|
$ |
10.97 |
|
|
Total investment return(2) |
|
|
4.70 |
%(4) |
|
|
(0.93 |
)% |
|
|
4.96 |
% |
|
|
(0.55 |
)% |
|
|
8.30 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
442 |
|
|
$ |
808 |
|
|
$ |
1,620 |
|
|
$ |
2,043 |
|
|
$ |
3,646 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.84 |
% |
|
|
1.83 |
% |
|
|
2.00 |
% |
|
|
2.00 |
% |
|
|
1.79 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.60 |
% |
|
|
1.60 |
% |
|
|
1.60 |
% |
|
|
1.60 |
% |
|
|
1.60 |
% |
|
Net investment income to average net assets |
|
|
2.39 |
% |
|
|
3.04 |
% |
|
|
2.86 |
% |
|
|
2.82 |
% |
|
|
3.14 |
% |
|
Portfolio turnover |
|
|
209 |
% |
|
|
229 |
% |
|
|
174 |
% |
|
|
137 |
% |
|
|
180 |
% |
|
(1) The net investment income per share data was determined by using average shares outstanding throughout the year.
(2) Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of Fund shares.
(3) Amount represents less than $0.005 per share.
(4) During the fiscal year ended June 30, 2007, the Fund's total investment return included a reimbursement by the Investment Advisor for amounts relating to a trading error that had an impact on the total return of less than 0.005%.
|
|
Class C |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
10.26 |
|
|
$ |
10.72 |
|
|
$ |
10.55 |
|
|
$ |
10.98 |
|
|
$ |
10.50 |
|
|
Net investment income(1) |
|
|
0.27 |
|
|
|
0.34 |
|
|
|
0.33 |
|
|
|
0.33 |
|
|
|
0.37 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
0.24 |
|
|
|
(0.41 |
) |
|
|
0.22 |
|
|
|
(0.37 |
) |
|
|
0.52 |
|
|
Total income (loss) from investment operations |
|
|
0.51 |
|
|
|
(0.07 |
) |
|
|
0.55 |
|
|
|
(0.04 |
) |
|
|
0.89 |
|
|
Dividends from net investment income |
|
|
(0.32 |
) |
|
|
(0.39 |
) |
|
|
(0.38 |
) |
|
|
(0.39 |
) |
|
|
(0.41 |
) |
|
Net increase from payment by Advisor |
|
|
0.00 |
(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of year |
|
$ |
10.45 |
|
|
$ |
10.26 |
|
|
$ |
10.72 |
|
|
$ |
10.55 |
|
|
$ |
10.98 |
|
|
Total investment return(2) |
|
|
4.98 |
%(4) |
|
|
(0.67 |
)% |
|
|
5.25 |
% |
|
|
(0.37 |
)% |
|
|
8.65 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
1,525 |
|
|
$ |
1,530 |
|
|
$ |
2,068 |
|
|
$ |
2,195 |
|
|
$ |
3,164 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
1.55 |
% |
|
|
1.56 |
% |
|
|
1.64 |
% |
|
|
1.65 |
% |
|
|
1.54 |
% |
|
After expense reimbursement and earnings credits |
|
|
1.35 |
% |
|
|
1.35 |
% |
|
|
1.35 |
% |
|
|
1.35 |
% |
|
|
1.35 |
% |
|
Net investment income to average net assets |
|
|
2.56 |
% |
|
|
3.29 |
% |
|
|
3.11 |
% |
|
|
3.08 |
% |
|
|
3.39 |
% |
|
Portfolio turnover |
|
|
209 |
% |
|
|
229 |
% |
|
|
174 |
% |
|
|
137 |
% |
|
|
180 |
% |
|
|
|
Class Y |
|
|
|
Year ended June 30, |
|
|
|
2007 |
|
2006 |
|
2005 |
|
2004 |
|
2003 |
|
Net asset value, beginning of year |
|
$ |
10.27 |
|
|
$ |
10.72 |
|
|
$ |
10.57 |
|
|
$ |
11.01 |
|
|
$ |
10.53 |
|
|
Net investment income(1) |
|
|
0.34 |
|
|
|
0.42 |
|
|
|
0.41 |
|
|
|
0.41 |
|
|
|
0.45 |
|
|
Net realized and unrealized gain (loss) from investment activities |
|
|
0.25 |
|
|
|
(0.41 |
) |
|
|
0.21 |
|
|
|
(0.37 |
) |
|
|
0.52 |
|
|
Total income (loss) from investment operations |
|
|
0.59 |
|
|
|
0.01 |
|
|
|
0.62 |
|
|
|
0.04 |
|
|
|
0.97 |
|
|
Dividends from net investment income |
|
|
(0.40 |
) |
|
|
(0.46 |
) |
|
|
(0.47 |
) |
|
|
(0.48 |
) |
|
|
(0.49 |
) |
|
Net increase from payment by Advisor |
|
|
0.00 |
(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of year |
|
$ |
10.46 |
|
|
$ |
10.27 |
|
|
$ |
10.72 |
|
|
$ |
10.57 |
|
|
$ |
11.01 |
|
|
Total investment return(2) |
|
|
5.76 |
%(4) |
|
|
0.14 |
% |
|
|
5.95 |
% |
|
|
0.40 |
% |
|
|
9.42 |
% |
|
Ratios/Supplemental data: |
|
Net assets, end of year (in 000s) |
|
$ |
163,172 |
|
|
$ |
105,526 |
|
|
$ |
109,568 |
|
|
$ |
89,281 |
|
|
$ |
78,807 |
|
|
Ratio of expenses to average net assets: |
|
Before expense reimbursement and earnings credits |
|
|
0.76 |
% |
|
|
0.82 |
% |
|
|
0.78 |
% |
|
|
0.80 |
% |
|
|
0.79 |
% |
|
After expense reimbursement and earnings credits |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
Net investment income to average net assets |
|
|
3.27 |
% |
|
|
4.04 |
% |
|
|
3.86 |
% |
|
|
3.83 |
% |
|
|
4.14 |
% |
|
Portfolio turnover |
|
|
209 |
% |
|
|
229 |
% |
|
|
174 |
% |
|
|
137 |
% |
|
|
180 |
% |
|
202
See accompanying notes to financial statements.
203
The UBS FundsNotes to financial statements
1. Organization and significant accounting policies
The UBS Funds (the "Trust") is registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (the "1940 Act"), as amended, as an open-end management investment company currently offering multiple series representing separate investment portfolios. The Trust is a Delaware statutory trust organized on August 9, 1993. The trustees of the Trust have the authority to issue an unlimited number of shares of beneficial interest at a par value of $0.001 per share.
The Trust has fourteen Funds available for investment, each having its own investment objectives and policies: UBS Dynamic Alpha Fund, UBS Global Allocation Fund, UBS Global Equity Fund, UBS International Equity Fund, UBS U.S. Equity Alpha Fund, UBS U.S. Large Cap Equity Fund, UBS U.S. Large Cap Growth Fund, UBS U.S. Large Cap Value Equity Fund, UBS U.S. Mid Cap Growth Equity Fund, UBS U.S. Small Cap Growth Fund, UBS Absolute Return Bond Fund, UBS Global Bond Fund, UBS High Yield Fund and UBS U.S. Bond Fund (each a "Fund", and collectively, the "Funds").
Each of the Funds is classified as a "diversified" investment company with the exception of UBS Dynamic Alpha Fund, UBS U.S. Equity Alpha Fund, UBS U.S. Large Cap Growth Fund, UBS Absolute Return Bond Fund and UBS Global Bond Fund which are classified as "non-diversified" for purposes of the 1940 Act. Each Fund currently offers Class A, Class B, Class C and Class Y shares, except for UBS Absolute Return Bond Fund, UBS U.S. Equity Alpha Fund and UBS U.S. Mid Cap Growth Equity Fund, which offer Class A, Class C, and Class Y. Each class represents interests in the same assets of the applicable Fund and the classes are identical except for differences in their sales charge structures, ongoing service and distribution charges and certain transfer agency and related services expenses. In addition, Class B shares and all corresponding reinvested dividend shares automatically convert to Class A shares within a certain number of years af
ter issuance which varies depending upon the amount invested. All classes of shares have equal voting privileges except that each class has exclusive voting rights with respect to its service and/or distribution plan, if any. Class Y shares have no service or distribution plan.
In the normal course of business, the Funds may enter into contracts that contain a variety of representations or that provide general indemnification for certain liabilities. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had any prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
The Trust accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series' operations; expenses which are applicable to all series are allocated among them on a pro rata basis.
The preparation of financial statements in accordance with US generally accepted accounting principles requires the Trust's management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies:
A. Valuation of investments: Each Fund calculates its net asset value based on the current market value for its portfolio securities. The Funds normally obtain market values for their securities from independent pricing sources. Independent pricing sources may use last reported sale prices, current market quotations or valuations from computerized "matrix" systems that derive values based on comparable securities. Securities traded in the over-the-counter ("OTC") market and listed on The NASDAQ Stock Market, Inc. ("NASDAQ") normally are valued at the NASDAQ Official Closing Price. Other OTC securities are valued at the last bid price available prior to valuation. Securities which are listed on US and foreign stock exchanges
204
The UBS FundsNotes to financial statements
normally are valued at the last sale price on the day the securities are valued or, lacking any sales on such day, at the last available bid price. Securities listed on foreign stock exchanges may be fair valued based on significant events that have occurred subsequent to the close of the foreign markets. Certain funds may use a systematic fair valuation model provided by an independent third party to value securities principally traded in foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time for valuation. If a security is valued at a "fair value," that value is likely to be different from the last quoted market price for the security. In cases where securities are traded on more than one exchange, the securities are valued on the exchange designated as the primary market by UBS Global Asset Management (Americas) Inc. ("UBS Global AM"), the investmen
t manager of the Funds. UBS Global AM is an indirect wholly owned asset management subsidiary of UBS AG, an internationally diversified organization with headquarters in Zurich and Basel, Switzerland and operations in many areas of the financial services industry. If a market value is not readily available from an independent pricing source for a particular security, that security is valued at fair value as determined in good faith by or under the direction of the Trust's Board of Trustees (the "Board"). Various factors may be reviewed in order to make a good faith determination of a security's fair value. These factors include, but are not limited to, fundamental analytical data relating to the investment; the nature and duration of restrictions on disposition of the securities; and the evaluation of forces which influence the market in which the securities are purchased and sold. Investments in open-end investment companies are valued at the daily closing net asset value of the respective investment compan
y.
Certain securities in which the Funds invest are traded in markets that close before 4:00 p.m. Eastern Time. Normally, developments that occur between the close of the foreign markets and 4:00 p.m. Eastern Time will not be reflected in the Fund's NAV. However, if any of the Funds determine that such developments are so significant that they will materially affect the value of the Fund's securities, the Fund may adjust the previous closing prices to reflect what the Board believes to be the fair value of these securities as of 4:00 p.m. Eastern Time.
Futures contracts are valued at the settlement price established each day on the exchange on which they are traded. Forward foreign currency contracts are valued daily using forward exchange rates quoted by independent pricing services. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates market value.
In September 2006, the Financial Accounting Standards Board ("FASB") issued Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of June 30, 2007, management does not believe the adoption of FAS 157 will impact the amounts reported in the financial statements, however, additional disclosure will be required about the inputs used to develop the measurements of fair value and the effect of ce
rtain measurements reported in the Statement of Operations for a fiscal period.
B. Restricted securities: The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of each Fund's Portfolio of Investments.
C. Foreign currency translation: Investment securities and other assets and liabilities denominated in foreign currencies are translated daily into US dollars using foreign currency exchange rates determined as of the close of regular trading on the New York Stock Exchange. Purchases and sales of portfolio securities, commitments under forward foreign currency contracts and income receipts are translated at the prevailing
205
The UBS FundsNotes to financial statements
exchange rate as of the date of each transaction. Realized and unrealized foreign exchange gains or losses on investments are included as a component of net realized and unrealized gain or loss on foreign forward currency contracts and foreign currency transactions in the Statements of Operations. Certain foreign exchange gains and losses included in realized and unrealized gains and losses are included in or are a reduction of ordinary income in accordance with US federal income tax regulations.
D. Investment transactions, investment income and expenses: Investment transactions are recorded on the trade date. Realized gains and losses from investment transactions and foreign exchange transactions are calculated using the identified cost method. Dividend income is recorded on the ex-dividend date ("ex-date") except in the case of certain dividends from foreign securities which are recorded as soon after the ex-date as the respective Fund, using reasonable diligence, becomes aware of such dividends. Interest income is recorded on an accrual basis. Discounts are accreted and premiums are amortized as adjustments to interest income and the identified cost of investments.
Income, expenses (excluding class-specific expenses) and realized/unrealized gains/losses are allocated proportionately to each class of shares based upon the relative net asset value of outstanding shares (or the value of dividend-eligible shares, as appropriate) of each class at the beginning of the day after adjusting for current capital share activity of the respective classes. Class specific expenses are charged directly to the applicable class of shares.
E. Forward foreign currency contracts: A forward foreign currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. Risks associated with such contracts include movement in the value of the foreign currency relative to the US dollar and the potential inability of the counterparty to meet the terms of the contract. The Funds may purchase or sell currencies and/or engage in forward foreign currency transactions in order to expedite settlement of portfolio transactions and to manage currency risk.
A Fund will only enter into forward contracts to sell, for a fixed amount of US dollars or other appropriate currency, an amount of foreign currency, to the extent that the value of the short forward contract is covered by the underlying value of securities denominated in the currency being sold. Alternatively, when a Fund enters into a forward contract to sell an amount of foreign currency, the Fund's custodian or sub-custodian will place assets in a segregated account of the Fund in an amount not less than the value of the Fund's total assets committed to the consumption of such forward contracts. If the assets placed in the account decline in value, additional cash or securities will be placed in the account on a daily basis so that the value of the account will equal the amount of the Fund's commitments with respect to such contracts.
The unrealized gain, if any, represents the credit risk to each Fund on a forward foreign currency contract. Fluctuations in the value of the open forward foreign currency contracts are recorded daily for book purposes as net unrealized gains or losses on foreign forward currency contracts by the Funds. Realized gains and losses include net gains and losses recognized by the Funds on contracts which have been sold or matured.
F. Futures contracts: The Funds may purchase or sell exchange-traded futures contracts, which are contracts that obligate the Funds to make or take delivery of a financial instrument or the cash value of a securities index at a specified future date at a specified price. The Fund may purchase or sell futures contracts to increase or reduce its exposure to an asset class without purchasing or selling the underlying securities, either as a hedge or to enhance or realize gains. Risks of entering into futures contracts include the possibility that there may be an illiquid market or that a change in the value of the contract may not correlate with changes in the value of the underlying securities.
206
The UBS FundsNotes to financial statements
Upon entering into a futures contract, the Fund is required to deliver to a broker an amount of cash and/or government securities equal to a certain percentage of the contract amount. This amount is known as the "initial margin". Subsequent payments, known as "variation margin", are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying futures contracts. Such variation margin is recorded for financial statement purposes on a daily basis as an unrealized gain or loss on futures until the futures contract is closed or expires, at which time the net gain or loss is reclassified to realized gain or loss on futures.
The Statements of Operations reflect net realized and net unrealized gains and losses on these contracts.
G. Securities traded on to-be-announced basis: Certain Funds may from time to time purchase, or sell short, securities on a to-be-announced ("TBA") basis. In a TBA transaction, the Fund commits to purchasing or selling securities for which all specific information is not yet known at the time of the trade, particularly the face amount and maturity date of the underlying security transactions. Securities purchased on a TBA basis are not settled until they are delivered to the Fund, normally 15 to 45 days later. Beginning on the date the Fund enters into a TBA transaction, cash, US government securities or other liquid high grade debt obligations are segregated in an amount equal in value to the purchase price of the TBA security. These transactions are subject to market fluctuations and their current value is determined in the same manner as
for other securities.
H. Swap agreements: The Funds (except for UBS Global Equity Fund, UBS International Equity Fund, UBS U.S. Large Cap Equity Fund, UBS U.S. Large Cap Growth Fund and UBS U.S. Small Cap Growth Fund) may engage in swap agreements, including but not limited to interest rate, currency, credit default and equity swap agreements. A Fund expects to enter into these transactions to preserve a return or spread on a particular investment or portion of the portfolio's duration, to protect against any increase in the price of securities the Fund anticipates purchasing at a later date, or to gain exposure to certain markets in the most economical way possible.
Certain Funds may enter into interest rate swap agreements with another party to receive or pay interest (e.g., an exchange of fixed rate payments for floating rate payments) to protect themselves from interest rate fluctuations. This type of swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to a specified interest rate(s) for a specified amount. The payment flows are usually netted against each other, with the difference being paid by one party to the other.
Credit default swap agreements involve commitments to make or receive payments in the event of a default of a security or a credit event. As a buyer, the Fund would make periodic payments to the counterparty, and the Fund would receive payments only upon the occurrence of a credit event. If no credit event occurs, the Fund will lose its periodic stream of payments over the term of the contract. However, if a credit event does occur, the Fund typically would receive full notional value for a reference obligation that may have little or no value. As a seller, the Fund would receive periodic payments from the counterparty, and the Fund would make payments only upon the occurrence of a credit event. If no credit event occurs, the Fund will gain the periodic stream of payments it received over the term of the contract. However, if a credit event occurs, the Fund will pay full notional value for a reference obligation that may have li
ttle or no value. Credit default swaps may involve greater risks than if the Fund had invested in the reference obligation directly and are subject to general market risk, liquidity risk and credit risk.
207
The UBS FundsNotes to financial statements
Total return swap agreements involve commitments to pay or receive interest in exchange for a market-linked return based on a notional amount. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Fund will receive a payment from or make a payment to the counterparty, respectively. Total return swaps are marked-to-market daily, and the change, if any, is recorded as unrealized appreciation or depreciation.
The use of swaps involves investment techniques and risks different from those associated with ordinary portfolio security transactions. If UBS Global AM is incorrect in its forecast of market values, interest rates and other applicable factors, the investment performance of the Funds will be less favorable than it would have been if this investment technique was never used. Swaps do not involve the delivery of securities or other underlying assets or principal, and are subject to counterparty risk. If the other party to a swap defaults and fails to consummate the transaction, a Fund's risk of loss will consist of the net amount of interest payments that the Fund is contractually entitled to receive. Therefore, the Fund would consider the creditworthiness of the counterparty to a swap agreement in evaluating potential credit risk.
The Funds will accrue for interim payments on swap agreements on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swap agreements on the Statements of Assets and Liabilities. Once interim payments are settled in cash, the net amount is recorded as realized gain/loss on swap agreements, in addition to realized gain/loss recorded upon the termination of swap agreements on the Statements of Operations. Fluctuations in the value of swap agreements are recorded for financial statement purposes as unrealized appreciation or depreciation of swap agreements.
At June 30, 2007, UBS Dynamic Alpha Fund, UBS Global Allocation Fund, UBS Absolute Return Bond Fund and UBS U.S. Bond Fund had outstanding interest rate swap agreements with the following terms:
UBS Dynamic Alpha Fund |
|
Counterparty |
|
Notional amount |
|
Termination dates |
|
Payments made by the Fund |
|
Payments received by the Fund |
|
Value |
|
Barclays Bank PLC |
|
JPY |
1,200,000,000 |
|
|
10/27/35 |
|
|
2.4400 |
% |
|
|
0.7369 |
%(1) |
|
$ |
345,616 |
|
|
Barclays Bank PLC |
|
GBP |
42,300,000 |
|
|
01/19/36 |
|
|
|
(2) |
|
|
3.0550 |
|
|
|
(5,692,788 |
) |
|
Barclays Bank PLC |
|
GBP |
10,600,000 |
|
|
07/03/36 |
|
|
|
(2) |
|
|
3.1075 |
|
|
|
(1,215,005 |
) |
|
Barclays Bank PLC |
|
GBP |
47,000,000 |
|
|
11/02/36 |
|
|
4.3850 |
|
|
|
5.8463 |
(3) |
|
|
11,757,194 |
|
|
Deutsche Bank AG |
|
USD |
114,000,000 |
|
|
12/30/11 |
|
|
5.0150 |
|
|
|
5.3600 |
(4) |
|
|
2,064,662 |
|
|
Deutsche Bank AG |
|
CHF |
87,000,000 |
|
|
02/01/17 |
|
|
2.9275 |
|
|
|
2.2925 |
(5) |
|
|
3,478,941 |
|
|
Deutsche Bank AG |
|
GBP |
41,000,000 |
|
|
11/02/21 |
|
|
3.0850 |
|
|
|
|
(2) |
|
|
2,121,621 |
|
|
Deutsche Bank AG |
|
GBP |
47,000,000 |
|
|
11/02/21 |
|
|
5.8463 |
(3) |
|
|
4.7550 |
|
|
|
(8,912,532 |
) |
|
Deutsche Bank AG |
|
GBP |
34,000,000 |
|
|
11/02/36 |
|
|
|
(2) |
|
|
3.0350 |
|
|
|
(4,564,164 |
) |
|
Deutsche Bank AG |
|
GBP |
49,000,000 |
|
|
06/27/37 |
|
|
5.2100 |
|
|
|
6.0906 |
(3) |
|
|
89,532 |
|
|
Deutsche Bank AG |
|
GBP |
65,000,000 |
|
|
06/27/37 |
|
|
|
(2) |
|
|
3.3150 |
|
|
|
(1,715,031 |
) |
|
Goldman Sachs International |
|
USD |
895,000,000 |
|
|
12/19/07 |
|
|
|
(6) |
|
|
5.0300 |
|
|
|
(660,286 |
) |
|
208
The UBS FundsNotes to financial statements
UBS Dynamic Alpha Fund |
|
Counterparty |
|
Notional amount |
|
Termination dates |
|
Payments made by the Fund |
|
Payments received by the Fund |
|
Value |
|
Goldman Sachs International |
|
USD |
1,870,000,000 |
|
|
12/17/08 |
|
|
4.5750 |
% |
|
|
|
(6) |
|
$ |
2,636,437 |
|
|
Goldman Sachs International |
|
USD |
1,000,000,000 |
|
|
12/16/09 |
|
|
|
(6) |
|
|
4.6900 |
% |
|
|
(1,430,965 |
) |
|
Goldman Sachs International |
|
CHF |
62,000,000 |
|
|
01/10/17 |
|
|
2.8630 |
|
|
|
2.2500 |
(5) |
|
|
2,535,580 |
|
|
Goldman Sachs International |
|
GBP |
20,000,000 |
|
|
01/24/37 |
|
|
4.5988 |
|
|
|
5.7144 |
(3) |
|
|
3,858,344 |
|
|
Goldman Sachs International |
|
JPY |
2,400,000,000 |
|
|
02/02/37 |
|
|
2.5230 |
|
|
|
0.5788 |
(1) |
|
|
334,441 |
|
|
Goldman Sachs International |
|
GBP |
14,000,000 |
|
|
03/13/37 |
|
|
|
(2) |
|
|
3.0675 |
|
|
|
(1,644,506 |
) |
|
Goldman Sachs International |
|
GBP |
16,000,000 |
|
|
03/13/37 |
|
|
4.6100 |
|
|
|
5.6300 |
(3) |
|
|
2,950,120 |
|
|
JPMorgan Chase Bank |
|
USD |
406,000,000 |
|
|
06/12/11 |
|
|
|
(6) |
|
|
5.6100 |
|
|
|
1,077,759 |
|
|
JPMorgan Chase Bank |
|
USD |
101,000,000 |
|
|
06/12/19 |
|
|
5.8475 |
|
|
|
|
(6) |
|
|
(726,367 |
) |
|
Royal Bank of Scotland PLC |
|
JPY |
1,600,000,000 |
|
|
05/09/35 |
|
|
2.2513 |
|
|
|
0.7419 |
(1) |
|
|
948,660 |
|
|
Royal Bank of Scotland PLC |
|
JPY |
675,000,000 |
|
|
07/12/35 |
|
|
2.2550 |
|
|
|
0.6563 |
(1) |
|
|
371,924 |
|
|
Royal Bank of Scotland PLC |
|
GBP |
62,300,000 |
|
|
12/09/35 |
|
|
|
(2) |
|
|
3.1450 |
|
|
|
(6,291,987 |
) |
|
Royal Bank of Scotland PLC |
|
GBP |
80,000,000 |
|
|
12/09/35 |
|
|
4.3175 |
|
|
|
5.9738 |
(3) |
|
|
21,583,782 |
|
|
Royal Bank of Scotland PLC |
|
JPY |
700,000,000 |
|
|
12/19/35 |
|
|
2.4700 |
|
|
|
0.8513 |
(1) |
|
|
184,646 |
|
|
Royal Bank of Scotland PLC |
|
JPY |
1,500,000,000 |
|
|
03/02/36 |
|
|
2.4625 |
|
|
|
0.7269 |
(1) |
|
|
357,601 |
|
|
Royal Bank of Scotland PLC |
|
JPY |
1,000,000,000 |
|
|
05/19/36 |
|
|
2.7200 |
|
|
|
0.7519 |
(1) |
|
|
(162,651 |
) |
|
Royal Bank of Scotland PLC |
|
JPY |
1,100,000,000 |
|
|
07/05/36 |
|
|
2.7800 |
|
|
|
0.6306 |
(1) |
|
|
(359,833 |
) |
|
Royal Bank of Scotland PLC |
|
GBP |
13,000,000 |
|
|
01/24/37 |
|
|
|
(2) |
|
|
3.0900 |
|
|
|
(1,460,721 |
) |
|
|
|
$ |
21,860,024 |
|
|
(1) Rate based on 6 month LIBOR (JPY BBA)
(2) Zero coupon inflation swap. Cash is exchanged at the end of the swap. The dollar amount to be paid/received by the Fund is based on the RPI (Retail Price Index in the UK) as published by the Office of National Statistics.
(3) Rate based on 6 month LIBOR (GBP BBA)
(4) Rate based on 3 month LIBOR (USD BBA)
(5) Rate based on 6 month LIBOR (Swiss BBA)
(6) Rate based on 3 month LIBOR (USD BBA). This is a forward starting trade and, as such, a floating rate has not yet been assigned as of June 30, 2007.
BBA British Banking Association
Currency type abbreviations:
CHF Swiss Franc
GBP Great Britain Pound
JPY Japanese Yen
USD United States Dollar
UBS Global Allocation Fund |
|
Counterparty |
|
Notional amount |
|
Termination date |
|
Payments made by the Fund |
|
Payments received by the Fund |
|
Value |
|
Deutsche Bank AG |
|
USD |
18,885,000 |
|
|
|
06/16/27 |
|
|
|
5.3600 |
%(1) |
|
|
6.0350 |
% |
|
$ |
483,531 |
|
|
(1) Rate based on 3 month LIBOR (USD BBA)
BBA British Banking Association
Currency type abbreviation:
USD United States Dollar
209
The UBS FundsNotes to financial statements
UBS Absolute Return Bond Fund |
|
Counterparty |
|
Notional amount |
|
Termination dates |
|
Payments made by the Fund |
|
Payments received by the Fund |
|
Value |
|
Goldman Sachs International |
|
USD |
305,000,000 |
|
|
12/19/07 |
|
|
|
(1) |
|
|
5.0300 |
% |
|
$ |
(225,014 |
) |
|
Goldman Sachs International |
|
USD |
635,000,000 |
|
|
12/17/08 |
|
|
4.5750 |
% |
|
|
|
(1) |
|
|
895,261 |
|
|
Goldman Sachs International |
|
USD |
335,000,000 |
|
|
12/16/09 |
|
|
|
(1) |
|
|
4.6900 |
|
|
|
(479,373 |
) |
|
Goldman Sachs International |
|
GBP |
4,400,000 |
|
|
03/28/37 |
|
|
|
(2) |
|
|
3.1280 |
|
|
|
(423,548 |
) |
|
Goldman Sachs International |
|
GBP |
5,800,000 |
|
|
03/28/37 |
|
|
4.7420 |
|
|
|
5.7013 |
(3) |
|
|
836,889 |
|
|
|
|
$ |
604,215 |
|
|
(1) Rate based on 3 month LIBOR (USD BBA). This is a forward starting trade and, as such, a floating rate has not yet been assigned as of June 30, 2007.
(2) Zero coupon inflation swap. Cash is exchanged at the end of the swap. The dollar amount to be paid/received by the Fund is based on the RPI (Retail Price Index in the UK) as published by the Office of National Statistics.
(3) Rate based on 6 month LIBOR (GBP BBA)
BBA British Banking Association
Currency type abbreviations:
GBP Great Britain Pound
USD United States Dollar
UBS U.S. Bond Fund |
|
Counterparty |
|
Notional amount |
|
Termination dates |
|
Payments made by the Fund |
|
Payments received by the Fund |
|
Value |
|
Deutsche Bank AG |
|
USD |
2,885,000 |
|
|
06/16/27 |
|
|
5.3600 |
%(1) |
|
|
6.0350 |
% |
|
$ |
73,868 |
|
|
Goldman Sachs International |
|
USD |
95,000,000 |
|
|
12/19/07 |
|
|
|
(2) |
|
|
5.0300 |
|
|
|
(70,086 |
) |
|
Goldman Sachs International |
|
USD |
195,000,000 |
|
|
12/17/08 |
|
|
4.5750 |
|
|
|
|
(2) |
|
|
274,923 |
|
|
Goldman Sachs International |
|
USD |
105,000,000 |
|
|
12/16/09 |
|
|
|
(2) |
|
|
4.6900 |
|
|
|
(150,252 |
) |
|
JPMorgan Chase Bank |
|
USD |
45,000,000 |
|
|
12/07/09 |
|
|
|
(2) |
|
|
4.5810 |
|
|
|
(637,517 |
) |
|
JPMorgan Chase Bank |
|
USD |
42,000,000 |
|
|
06/12/11 |
|
|
|
(2) |
|
|
5.6100 |
|
|
|
111,492 |
|
|
JPMorgan Chase Bank |
|
USD |
11,000,000 |
|
|
12/07/17 |
|
|
4.8910 |
|
|
|
|
(2) |
|
|
663,453 |
|
|
JPMorgan Chase Bank |
|
USD |
11,000,000 |
|
|
06/12/19 |
|
|
5.8475 |
|
|
|
|
(2) |
|
|
(79,109 |
) |
|
|
|
$ |
186,772 |
|
|
(1) Rate based on 3 month LIBOR (USD BBA)
(2) Payments made based on 3 month LIBOR (USD BBA). This is a forward starting trade and, as such, a floating rate has not yet been assigned as of June 30, 2007.
BBA British Banking Association
Currency type abbreviation:
USD United States Dollar
210
The UBS FundsNotes to financial statements
At June 30, 2007, UBS Dynamic Alpha Fund, UBS Absolute Return Bond Fund and UBS U.S. Bond Fund had outstanding credit default swap agreements with the following terms:
UBS Dynamic Alpha Fund |
|
Counterparty |
|
Notional amount |
|
Termination dates |
|
Payments made by the Fund |
|
Payments received by the Fund |
|
Value |
|
Barclays Bank PLC |
|
USD |
48,500,000 |
|
|
12/20/11 |
|
|
1.4000 |
%(1) |
|
|
|
(2) |
|
$ |
(670,344 |
) |
|
Barclays Bank PLC |
|
USD |
62,500,000 |
|
|
12/20/11 |
|
|
1.4000 |
(1) |
|
|
|
(2) |
|
|
(863,846 |
) |
|
Barclays Bank PLC |
|
USD |
57,000,000 |
|
|
06/20/12 |
|
|
1.2500 |
(1) |
|
|
|
(3) |
|
|
(363,377 |
) |
|
Deutsche Bank AG |
|
EUR |
23,000,000 |
|
|
12/20/11 |
|
|
0.5000 |
(1) |
|
|
|
(4) |
|
|
(253,518 |
) |
|
Deutsche Bank AG |
|
USD |
15,500,000 |
|
|
12/20/11 |
|
|
0.4800 |
(1) |
|
|
|
(5) |
|
|
15,638 |
|
|
Deutsche Bank AG |
|
USD |
40,000,000 |
|
|
12/20/11 |
|
|
1.4000 |
(1) |
|
|
|
(2) |
|
|
(552,862 |
) |
|
Deutsche Bank AG |
|
EUR |
13,000,000 |
|
|
03/20/12 |
|
|
0.2600 |
(1) |
|
|
|
(6) |
|
|
(28,115 |
) |
|
Deutsche Bank AG |
|
EUR |
3,000,000 |
|
|
06/20/12 |
|
|
0.3100 |
(1) |
|
|
|
(7) |
|
|
(13,781 |
) |
|
Deutsche Bank AG |
|
EUR |
3,000,000 |
|
|
06/20/12 |
|
|
0.4700 |
(1) |
|
|
|
(4) |
|
|
(24,668 |
) |
|
Goldman Sachs International |
|
USD |
56,500,000 |
|
|
12/20/11 |
|
|
1.4000 |
(1) |
|
|
|
(2) |
|
|
(780,917 |
) |
|
Goldman Sachs International |
|
EUR |
4,320,000 |
|
|
03/20/12 |
|
|
|
(8) |
|
|
2.5000 |
%(1) |
|
|
(121,951 |
) |
|
Goldman Sachs International |
|
USD |
5,000,000 |
|
|
06/20/12 |
|
|
0.3400 |
(1) |
|
|
|
(9) |
|
|
11,822 |
|
|
Royal Bank of Scotland PLC |
|
EUR |
23,000,000 |
|
|
12/20/11 |
|
|
0.2800 |
(1) |
|
|
|
(7) |
|
|
(92,301 |
) |
|
Royal Bank of Scotland PLC |
|
USD |
29,000,000 |
|
|
12/20/11 |
|
|
0.3900 |
(1) |
|
|
|
(9) |
|
|
(66,231 |
) |
|
|
|
$ |
(3,804,451 |
) |
|
(1) Payments made are based on the notional amount.
(2) Payment from the counterparty will be received upon the occurrence of a failure to pay, obligation acceleration, repudiation or restructuring of the referenced obligation specified in the Dow Jones CDX.EM.6 Index.
(3) Payment from the counterparty will be received upon the occurrence of a failure to pay, obligation acceleration, repudiation or restructuring of the referenced obligation specified in the Dow Jones CDX.EM.7 Index.
(4) Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Wolters Kluwer N.V. 5.125% bond, due 01/27/14.
(5) Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Masco Corp. 5.875% bond, due 07/15/12.
(6) Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Volvo AB 5.375% bond, due 01/26/10.
(7) Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Akzo Nobel N.V. 4.250% bond, due 06/14/11.
(8) Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the WDAC Subsidiary Corp. 8.500% bond, due 12/01/14.
(9) Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the H.J. Heinz Company 6.000% bond, due 03/15/08.
Currency type abbreviations:
EUR Euro
USD United States Dollar
211
The UBS FundsNotes to financial statements
UBS Absolute Return Bond Fund |
|
Counterparty |
|
Notional amount |
|
Termination dates |
|
Payments made by the Fund |
|
Payments received by the Fund |
|
Value |
|
Deutsche Bank AG |
|
USD |
1,420,000 |
|
|
06/20/08 |
|
|
|
(1) |
|
|
0.6500 |
%(2) |
|
$ |
(664 |
) |
|
Deutsche Bank AG |
|
USD |
4,300,000 |
|
|
06/20/08 |
|
|
|
(3) |
|
|
1.0500 |
(2) |
|
|
(15,004 |
) |
|
Deutsche Bank AG |
|
USD |
2,570,000 |
|
|
03/20/11 |
|
|
0.1700 |
%(2) |
|
|
|
(4) |
|
|
(5,260 |
) |
|
Deutsche Bank AG |
|
EUR |
3,700,000 |
|
|
09/20/11 |
|
|
0.5700 |
(2) |
|
|
|
(5) |
|
|
(56,220 |
) |
|
Deutsche Bank AG |
|
EUR |
3,740,000 |
|
|
09/20/11 |
|
|
0.2500 |
(2) |
|
|
|
(6) |
|
|
(11,465 |
) |
|
Deutsche Bank AG |
|
USD |
2,700,000 |
|
|
12/20/11 |
|
|
0.4800 |
(2) |
|
|
|
(7) |
|
|
2,724 |
|
|
Deutsche Bank AG |
|
USD |
5,000,000 |
|
|
12/20/11 |
|
|
0.3800 |
(2) |
|
|
|
(8) |
|
|
(9,415 |
) |
|
Deutsche Bank AG |
|
EUR |
2,100,000 |
|
|
03/20/12 |
|
|
0.2600 |
(2) |
|
|
|
(9) |
|
|
(4,542 |
) |
|
Deutsche Bank AG |
|
EUR |
4,200,000 |
|
|
06/20/12 |
|
|
2.3000 |
(2) |
|
|
|
(10) |
|
|
(13,446 |
) |
|
Deutsche Bank AG |
|
EUR |
25,700,000 |
|
|
06/20/12 |
|
|
0.5500 |
(2) |
|
|
|
(11) |
|
|
(168,805 |
) |
|
Deutsche Bank AG |
|
EUR |
25,700,000 |
|
|
06/20/17 |
|
|
|
(12) |
|
|
0.5000 |
(2) |
|
|
187,316 |
|
|
Goldman Sachs International |
|
EUR |
2,650,000 |
|
|
09/20/07 |
|
|
|
(13) |
|
|
0.2500 |
(2) |
|
|
1,136 |
|
|
Goldman Sachs International |
|
EUR |
630,000 |
|
|
03/20/12 |
|
|
|
(14) |
|
|
2.5000 |
(2) |
|
|
(17,784 |
) |
|
Goldman Sachs International |
|
EUR |
4,200,000 |
|
|
03/20/12 |
|
|
|
(15) |
|
|
0.1400 |
(2) |
|
|
(6,924 |
) |
|
Goldman Sachs International |
|
EUR |
12,600,000 |
|
|
06/20/12 |
|
|
|
(16) |
|
|
2.3000 |
(2) |
|
|
3,872 |
|
|
|
|
$ |
(114,481 |
) |
|
(1) Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the SLM Corp. 5.125% bond, due 08/27/12.
(2) Payments made are based on the notional amount.
(3) Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the Residental Capital LLC 6.500% bond, due 04/17/13.
(4) Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Nissan Motor Co., Ltd. 1.000% bond, due 07/10/29.
(5) Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Wolters Kluwer N.V. 5.125% bond, due 01/27/14.
(6) Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Akzo Nobel N.V. 4.250% bond, due 06/14/11.
(7) Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Masco Corp. 5.875% bond, due 07/15/12.
(8) Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the H.J. Heinz Company 6.000% bond, due 03/15/08.
(9) Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Volvo AB 5.375% bond, due 01/10/26.
(10) Payment from the counterparty will be received upon the occurrence of a succession event with respect to the iTraxx Europe Crossover Series 7 Index.
(11) Payment from the counterparty will be received upon the occurrence of a succession event with respect to the iTraxx HiVol Series 7 Index.
(12) Payment to the counterparty will be made upon the occurrence of a succession event with respect to the iTraxx Main 10 year Series 7 Index.
(13) Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the Glencore International AG 5.375% bond, due 09/30/11.
(14) Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the WDAC Subsidiary Corp. 8.500% bond, due 12/01/14.
(15) Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the Credit Suisse Finance Group 3.125% bond, due 09/14/12.
(16) Payment to the counterparty will be made upon the occurrence of a succession event with respect to the iTraxx Europe Crossover Series 7 Index.
Currency type abbreviations:
EUR Euro
USD United States Dollar
212
The UBS FundsNotes to financial statements
UBS U.S. Bond Fund |
|
Counterparty |
|
Notional amount |
|
Termination dates |
|
Payments made by the Fund |
|
Payments received by the Fund |
|
Value |
|
Deutsche Bank AG |
|
USD |
1,950,000 |
|
|
06/20/12 |
|
|
0.7500 |
%(1) |
|
|
|
(2) |
|
$ |
16,470 |
|
|
Deutsche Bank AG |
|
USD |
1,200,000 |
|
|
07/25/45 |
|
|
2.67 |
%(1) |
|
|
|
(3) |
|
|
263,176 |
|
|
(Upfront payments made by the Fund of $140,377) |
|
$ |
279,646 |
|
|
(1) Payments made are based on the notional amount.
(2) Payment from the counterparty will be received upon the occurrence of a failure to pay, obligation acceleration, repudiation or restructuring of the referenced obligation specified in the Dow Jones CDX.NA.IG HVOL 8 Index.
(3) Payment from the counterparty will be made upon the occurrence of a failure to pay, obligation acceleration, repudiation or restructuring of the referenced obligation specified in the Dow Jones ABX.HE.BBB-.06.0 Index.
Currency type abbreviation:
USD United States Dollar
At June 30, 2007, UBS Absolute Return Bond Fund had outstanding total return swap agreements with the following terms:
UBS Absolute Return Bond Fund |
|
Counterparty |
|
Notional amount |
|
Termination dates |
|
Payments made by the Fund |
|
Payments received by the Fund |
|
Value |
|
Deutsche Bank AG |
|
BRL |
2,575,000 |
|
|
08/15/10 |
|
$ |
2,161,081 |
(1) |
|
|
|
(2) |
|
$ |
2,219,139 |
|
|
Deutsche Bank AG |
|
BRL |
2,575,000 |
|
|
05/15/45 |
|
|
2,226,497 |
(1) |
|
|
|
(3) |
|
|
2,237,732 |
|
|
(Upfront payments made by the Fund of $4,387,578) |
|
$ |
4,456,871 |
|
|
(1) Payment made on 05/22/07 to fully fund swap.
(2) Rate is equal to the total return of the Federative Republic of Brazil Nota do Tesouro Nacional Serie B 6.000% bond, due 08/05/10.
(3) Rate is equal to the total return of the Federative Republic of Brazil Nota do Tesouro Nacional Serie B 6.000% bond, due 05/15/45.
Currency type abbreviation:
BRL Brazilian Real
I. Option writing: Certain Funds may write (sell) put and call options on foreign or US securities indices in order to gain exposure to or protect against changes in the markets. When a Fund writes a call or a put option, an amount equal to the premium received by the Fund is included in the Fund's Statement of Assets and Liabilities as an asset and as an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. If an option which the Fund has written either expires on its stipulated expiration date or the Fund enters into a closing purchase transaction, the Fund realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying secur
ity or derivative instrument, and the liability related to such option is extinguished. If a call option which the Fund has written is exercised, the Fund recognizes a realized gain or loss (long-term or short-term, depending on the holding period of the underlying security) from the sale of the underlying security or derivative instrument and the proceeds from the sale are increased by the premium originally received. If a put option which the Fund has written is exercised, the amount of the premium originally received reduces the cost of the security or derivative instrument which the Fund purchases upon exercise of the option.
In writing an option, the Funds bear the market risk of an unfavorable change in the price of the derivative instrument, security or currency underlying the written option. Exercise of an option written by a Fund could
213
The UBS FundsNotes to financial statements
result in the Fund selling or buying a derivative instrument, security or currency at a price different from current market value.
Written option activity for the year ended June 30, 2007 for UBS Dynamic Alpha Fund was as follows:
|
|
Number of contracts |
|
Amount of premiums received |
|
Options outstanding at June 30, 2006 |
|
|
2,627 |
|
|
$ |
3,766,496 |
|
|
Options written |
|
|
7,971 |
|
|
|
1,242,687 |
|
|
Options terminated in closing purchase transactions |
|
|
(2,627 |
) |
|
|
(3,766,496 |
) |
|
Options expired prior to exercise |
|
|
(7,111 |
) |
|
|
(157,864 |
) |
|
Options exercised |
|
|
|
|
|
|
|
|
|
Options outstanding at June 30, 2007 |
|
|
860 |
|
|
$ |
1,084,823 |
|
|
Written option activity for the year ended June 30, 2007 for UBS Absolute Return Bond Fund was as follows:
|
|
Number of contracts |
|
Amount of premiums received |
|
Options outstanding at June 30, 2006 |
|
|
|
|
|
$ |
|
|
|
Options written |
|
|
1,217 |
|
|
|
27,017 |
|
|
Options terminated in closing purchase transactions |
|
|
|
|
|
|
|
|
|
Options expired prior to exercise |
|
|
(1,217 |
) |
|
|
(27,017 |
) |
|
Options exercised |
|
|
|
|
|
|
|
|
|
Options outstanding at June 30, 2007 |
|
|
|
|
|
$ |
|
|
|
Written option activity for the year ended June 30, 2007 for UBS Global Bond Fund was as follows:
|
|
Number of contracts |
|
Amount of premiums received |
|
Options outstanding at June 30, 2006 |
|
|
|
|
|
$ |
|
|
|
Options written |
|
|
239 |
|
|
|
5,306 |
|
|
Options terminated in closing purchase transactions |
|
|
|
|
|
|
|
|
|
Options expired prior to exercise |
|
|
(239 |
) |
|
|
(5,306 |
) |
|
Options exercised |
|
|
|
|
|
|
|
|
|
Options outstanding at June 30, 2007 |
|
|
|
|
|
$ |
|
|
|
214
The UBS FundsNotes to financial statements
Written option activity for the year ended June 30, 2007 for UBS U.S. Bond Fund was as follows:
|
|
Number of contracts |
|
Amount of premiums received |
|
Options outstanding at June 30, 2006 |
|
|
|
|
|
$ |
|
|
|
Options written |
|
|
3,708 |
|
|
|
457,804 |
|
|
Options terminated in closing purchase transactions |
|
|
(1,248 |
) |
|
|
(89,109 |
) |
|
Options expired prior to exercise |
|
|
(840 |
) |
|
|
(86,344 |
) |
|
Options exercised |
|
|
|
|
|
|
|
|
|
Options outstanding at June 30, 2007 |
|
|
1,620 |
|
|
$ |
282,351 |
|
|
J. Purchased options: Certain Funds may also purchase put and call options on foreign or US securities and indices as well as exchange-listed call options on particular market segment indices to achieve temporary exposure to a specific industry or geographic region. Purchasing call options tends to increase exposure to the underlying instrument. Purchasing put options tends to decrease exposure to the underlying instrument. The Fund pays a premium which is included in the Statement of Assets and Liabilities as an investment and subsequently marked-to-market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are ad
ded to the amounts paid or offset against the proceeds on the underlying futures, security or currency transaction to determine the realized gain or loss.
K. Short sales: UBS U.S. Equity Alpha Fund ("Equity Alpha") enters into short sales whereby it sells a security it generally does not own, in anticipation of a decline in the security's price. The initial amount of a short sale is recorded as a liability which is marked to market daily. Fluctuations in the value of this liability are recorded as unrealized gains or losses on the Statement of Operations. If Equity Alpha shorts a security when also holding a long position in the security (a "short against the box"), as the security price declines, the short position increases in value, offsetting the long position's decrease in value. The opposite effect occurs if the security price rises. Equity Alpha will realize a gain or loss upon closing of the short sale (returning the security to the counterparty by way of purchase or delivery of a lon
g position owned). Equity Alpha is liable to the buyer for any dividends payable on securities while those securities are in a short position. These dividends are booked as an expense of the Fund. Equity Alpha designates collateral consisting of cash, US government securities or other liquid assets sufficient to collateralize the market value of short positions. Equity Alpha is charged a securities loan fee equal to 0.40% of short market value in connection with short sale transactions.
The UBS Dynamic Alpha Fund, UBS U.S. Large Cap Growth Fund, UBS U.S. Mid Cap Growth Equity Fund, UBS U.S. Small Cap Growth Fund, UBS Absolute Return Bond Fund and UBS High Yield Fund may, from time to time, sell securities short. There were no short positions as of June 30, 2007 for any of these funds.
L. Dividends and distributions: It is the Funds' policy to distribute their respective net investment income and net capital gains, if any, annually except for UBS Global Bond Fund, UBS U.S. Bond Fund and UBS High Yield Fund, which will distribute their respective net investment income, if any, monthly. UBS Absolute Return Bond Fund will distribute its respective net investment income, if any, quarterly. Dividends and distributions to shareholders are recorded on the ex-dividend date. The amounts of dividends from net investment income and distributions of net capital gains are determined in accordance with income tax regulations which may differ from US generally accepted accounting principles. These "book/tax" differences are either considered temporary or permanent in nature. To the extent they are permanent in nature, such
215
The UBS FundsNotes to financial statements
amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification. Differences in dividends from net investment income per share between the classes are mainly due to service and distribution related expenses.
M. Concentration of risk: Investing in securities of foreign issuers and currency transactions may involve certain considerations and risks not typically associated with investments in the United States. These risks include revaluation of currencies, adverse fluctuations in foreign currency values and possible adverse political, social and economic developments, including those particular to a specific industry, country or region, which could cause the securities and their markets to be less liquid and prices more volatile than those of comparable US companies and US government securities. These risks are greater with respect to securities of issuers located in emerging market countries in which some Funds in the Trust invest.
Small capitalization ("small cap") companies may be more vulnerable than larger capitalization ("large cap") companies to adverse business or economic developments. Small cap companies may also have limited product lines, markets or financial resources, and may be dependent on a relatively small management group. Securities of such companies may be less liquid and more volatile than securities of large cap companies or the market averages in general and therefore may involve greater risk than investing in large cap companies. In addition, small cap companies may not be well-known to the investing public, may not have institutional ownership and may have only cyclical, static or moderated growth prospects.
The ability of the issuers of debt securities held by the Funds to meet their obligations may be affected by economic and political developments particular to a specific industry, country, state or region.
N. Commission recapture program: The following Funds participate in a brokerage commission recapture program: UBS Global Allocation Fund, UBS Global Equity Fund, UBS International Equity Fund, UBS U.S. Equity Alpha Fund, UBS U.S. Large Cap Equity Fund, UBS U.S. Large Cap Growth Fund, UBS U.S. Large Cap Value Equity Fund, UBS U.S. Mid Cap Growth Equity Fund and UBS U.S. Small Cap Growth Fund. These Funds have established commission recapture arrangements with certain participating brokers or dealers. If a Fund's investment manager chooses to execute a transaction through a participating broker subject to best price and execution, the broker will rebate a portion of the commission back to the Fund. Any collateral benefit received through participation in the commission recapture program is directed exclusively to the Fund. The following Funds
recorded recaptured commissions which are reflected on the Statements of Operations within the net realized gains (losses) on investment activities:
Fund |
|
Amount |
|
UBS Global Allocation Fund |
|
$ |
297,507 |
|
|
UBS Global Equity Fund |
|
|
61,719 |
|
|
UBS U.S. Equity Alpha Fund |
|
|
27,399 |
|
|
UBS U.S. Large Cap Equity Fund |
|
|
35,078 |
|
|
UBS U.S. Large Cap Value Equity Fund |
|
|
9,113 |
|
|
UBS U.S. Mid Cap Growth Equity Fund |
|
|
1,165 |
|
|
O. Redemption fees: Effective on or about March 1, 2007, each class of each series of The UBS Funds will impose a 1% redemption fee on shares sold or exchanged within 90 days of their purchase date, subject to limited exceptions. Prior to March 1, 2007, UBS Dynamic Alpha Fund, UBS Global Allocation Fund, UBS Global Equity Fund, UBS International Equity Fund and UBS U.S. Equity Alpha Fund charged a 1.00% redemption fee if Class A shares or Class Y shares were sold or exchanged less than 90 days after the purchase date. This amount is paid to the applicable Fund, not the Advisor or UBS Global AM (US). The
216
The UBS FundsNotes to financial statements
redemption fees earned by the Fund are disclosed in the Statements of Changes in Net Assets. For the year ended June 30, 2007, redemption fees represent less than $0.005 per share.
2. Investment advisory fees and other transactions with affiliates
UBS Global Asset Management (Americas) Inc. (the "Advisor"), a registered investment advisor, provides the Funds with investment management services. As compensation for these services, each Fund pays the Advisor a monthly fee, accrued daily and paid monthly, based on each Fund's respective average daily net assets in accordance with the following per annum schedule:
Fund |
|
$0 to $500 mm |
|
$500 mm to $1 billion |
|
$1 billion to $1.5 billion |
|
$1.5 billion to $2.0 billion |
|
$2.0 billion to $3.0 billion |
|
$3.0 billion to $6.0 billion |
|
$6.0 billion and over |
|
UBS Dynamic Alpha Fund |
|
|
0.850 |
% |
|
|
0.800 |
% |
|
|
0.750 |
% |
|
|
0.725 |
% |
|
|
0.700 |
% |
|
|
0.700 |
% |
|
|
0.700 |
% |
|
UBS Global Allocation Fund |
|
|
0.800 |
|
|
|
0.750 |
|
|
|
0.700 |
|
|
|
0.675 |
|
|
|
0.650 |
|
|
|
0.630 |
|
|
|
0.610 |
|
|
UBS International Equity Fund |
|
|
0.800 |
|
|
|
0.750 |
|
|
|
0.700 |
|
|
|
0.675 |
|
|
|
0.650 |
|
|
|
0.650 |
|
|
|
0.650 |
|
|
UBS U.S. Equity Alpha Fund |
|
|
1.000 |
|
|
|
0.900 |
|
|
|
0.850 |
|
|
|
0.850 |
|
|
|
0.850 |
|
|
|
0.850 |
|
|
|
0.850 |
|
|
UBS U.S. Large Cap Equity Fund |
|
|
0.700 |
|
|
|
0.650 |
|
|
|
0.600 |
|
|
|
0.575 |
|
|
|
0.550 |
|
|
|
0.550 |
|
|
|
0.550 |
|
|
UBS U.S. Large Cap Growth Fund |
|
|
0.700 |
|
|
|
0.650 |
|
|
|
0.600 |
|
|
|
0.575 |
|
|
|
0.550 |
|
|
|
0.550 |
|
|
|
0.550 |
|
|
UBS U.S. Large Cap Value Equity Fund |
|
|
0.700 |
|
|
|
0.650 |
|
|
|
0.600 |
|
|
|
0.575 |
|
|
|
0.550 |
|
|
|
0.550 |
|
|
|
0.550 |
|
|
UBS U.S. Mid Cap Growth Equity Fund |
|
|
0.850 |
|
|
|
0.800 |
|
|
|
0.775 |
|
|
|
0.775 |
|
|
|
0.775 |
|
|
|
0.775 |
|
|
|
0.775 |
|
|
UBS U.S. Small Cap Growth Fund |
|
|
0.850 |
|
|
|
0.850 |
|
|
|
0.825 |
|
|
|
0.825 |
|
|
|
0.825 |
|
|
|
0.825 |
|
|
|
0.825 |
|
|
UBS Absolute Return Bond Fund |
|
|
0.550 |
|
|
|
0.500 |
|
|
|
0.475 |
|
|
|
0.450 |
|
|
|
0.425 |
|
|
|
0.425 |
|
|
|
0.425 |
|
|
UBS Global Bond Fund |
|
|
0.650 |
|
|
|
0.650 |
|
|
|
0.650 |
|
|
|
0.600 |
|
|
|
0.550 |
|
|
|
0.550 |
|
|
|
0.550 |
|
|
UBS High Yield Fund |
|
|
0.600 |
|
|
|
0.550 |
|
|
|
0.525 |
|
|
|
0.525 |
|
|
|
0.525 |
|
|
|
0.525 |
|
|
|
0.525 |
|
|
UBS U.S. Bond Fund |
|
|
0.500 |
|
|
|
0.475 |
|
|
|
0.450 |
|
|
|
0.425 |
|
|
|
0.400 |
|
|
|
0.400 |
|
|
|
0.400 |
|
|
|
|
$0 to $250 mm |
|
$250 mm to $500 mm |
|
$500 mm to $1 billion |
|
$1 billion and over |
|
|
|
|
|
|
|
UBS Global Equity Fund |
|
|
0.750 |
% |
|
|
0.700 |
% |
|
|
0.680 |
% |
|
|
0.650 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
On June 5, 2007, the Board approved a change to the investment advisory fee schedule for the UBS Dynamic Alpha Fund. Effective July 1, 2007, UBS Dynamic Alpha Fund will pay the Advisor a monthly fee, accrued daily and paid monthly, based on its average daily net assets in accordance with the following per annum schedule:
Fund |
|
$0 to $500 mm |
|
$500 mm to $1 billion |
|
$1 billion to $1.5 billion |
|
$1.5 billion to $2.0 billion |
|
$2.0 billion to $4.0 billion |
|
$4.0 billion and over |
|
UBS Dynamic Alpha Fund |
|
|
0.850 |
% |
|
|
0.800 |
% |
|
|
0.750 |
% |
|
|
0.725 |
% |
|
|
0.700 |
% |
|
|
0.680 |
% |
|
217
The UBS FundsNotes to financial statements
The Advisor has agreed to waive its fees and/or reimburse the expenses (excluding securities loan fees and dividend expense for securities sold short for UBS U.S. Equity Alpha Fund) of each Fund to the extent that total annualized operating expenses (excluding securities loan fees and dividend expense for securities sold short for UBS U.S. Equity Alpha Fund) exceed a specified percentage of each Fund's respective average daily net assets. Investment advisory fees, including the dollar amount waived or reimbursed for the year ended June 30, 2007, were as follows:
Fund |
|
Class A expense cap |
|
Class B expense cap |
|
Class C expense cap |
|
Class Y expense cap |
|
Advisory fees |
|
Fees waived/ expenses reimbursed |
|
UBS Dynamic Alpha Fund |
|
|
1.35 |
% |
|
|
2.10 |
% |
|
|
2.10 |
% |
|
|
1.10 |
% |
|
$ |
23,631,158 |
|
|
$ |
|
|
|
UBS Global Allocation Fund |
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
30,801,439 |
|
|
|
|
|
|
UBS Global Equity Fund |
|
|
1.25 |
|
|
|
2.00 |
|
|
|
2.00 |
|
|
|
1.00 |
|
|
|
3,228,817 |
|
|
|
276,821 |
|
|
UBS International Equity Fund |
|
|
1.25 |
|
|
|
2.00 |
|
|
|
2.00 |
|
|
|
1.00 |
|
|
|
1,662,680 |
|
|
|
299,152 |
|
|
UBS U.S. Equity Alpha Fund |
|
|
1.50 |
|
|
|
N/A* |
|
|
|
2.25 |
|
|
|
1.25 |
|
|
|
1,329,213 |
|
|
|
65,098 |
|
|
UBS U.S. Large Cap Equity Fund |
|
|
1.30 |
|
|
|
2.05 |
|
|
|
2.05 |
|
|
|
1.05 |
|
|
|
5,548,125 |
|
|
|
|
|
|
UBS U.S. Large Cap Growth Fund |
|
|
1.05 |
|
|
|
1.80 |
|
|
|
1.80 |
|
|
|
0.80 |
|
|
|
255,412 |
|
|
|
182,286 |
|
|
UBS U.S. Large Cap Value Equity Fund |
|
|
1.10 |
|
|
|
1.85 |
|
|
|
1.85 |
|
|
|
0.85 |
|
|
|
950,238 |
|
|
|
263,098 |
|
|
UBS U.S. Mid Cap Growth Fund |
|
|
1.45 |
|
|
|
N/A* |
|
|
|
2.20 |
|
|
|
1.20 |
|
|
|
45,256 |
|
|
|
165,848 |
|
|
UBS U.S. Small Cap Growth Fund |
|
|
1.28 |
|
|
|
2.03 |
|
|
|
2.03 |
|
|
|
1.03 |
|
|
|
3,831,239 |
|
|
|
1,001,626 |
|
|
UBS Absolute Return Bond Fund |
|
|
1.00 |
|
|
|
N/A* |
|
|
|
1.35 |
|
|
|
0.85 |
|
|
|
2,917,215 |
|
|
|
|
|
|
UBS Global Bond Fund |
|
|
1.15 |
|
|
|
1.90 |
|
|
|
1.65 |
|
|
|
0.90 |
|
|
|
725,912 |
|
|
|
159,638 |
|
|
UBS High Yield Fund |
|
|
1.20 |
|
|
|
1.95 |
|
|
|
1.70 |
|
|
|
0.95 |
|
|
|
639,825 |
|
|
|
64,770 |
|
|
UBS U.S. Bond Fund |
|
|
0.85 |
|
|
|
1.60 |
|
|
|
1.35 |
|
|
|
0.60 |
|
|
|
872,527 |
|
|
|
297,638 |
|
|
* UBS U.S. Equity Alpha Fund, UBS U.S. Mid Cap Growth Equity Fund and UBS Absolute Return Bond Fund do not offer Class B shares.
Each Fund, except for UBS International Equity Fund, will reimburse the Advisor for expenses it reimburses for a period of three years following such expense reimbursements, to the extent such reimbursements will not cause a Fund to exceed any applicable expense limit for the Fund. The expenses waived for the year ended June 30, 2007 are subject to repayment through June 30, 2010. For the year ended June 30, 2007, the UBS U.S. Large Cap Equity Fund and UBS Absolute Return Bond Fund repaid $3,428 and $2,565, respectively, of fee waivers and expenses the Advisor had previously reimbursed.
218
The UBS FundsNotes to financial statements
At June 30, 2007, the following Funds had remaining fee waivers and expense reimbursements subject to repayment to the Advisor and respective dates of expiration as follows:
Fund |
|
Fee waivers/ expense reimbursements subject to repayment |
|
Expires June 30, 2008 |
|
Expires June 30, 2009 |
|
Expires June 30, 2010 |
|
UBS Global Equity FundClass A |
|
$ |
526,432 |
|
|
$ |
157,744 |
|
|
$ |
194,727 |
|
|
$ |
173,961 |
|
|
UBS Global Equity FundClass B |
|
|
462,278 |
|
|
|
271,790 |
|
|
|
173,443 |
|
|
|
17,045 |
|
|
UBS Global Equity FundClass C |
|
|
355,266 |
|
|
|
155,224 |
|
|
|
124,069 |
|
|
|
75,973 |
|
|
UBS Global Equity FundClass Y |
|
|
63,995 |
|
|
|
48,718 |
|
|
|
5,435 |
|
|
|
9,842 |
|
|
UBS U.S. Equity Alpha FundClass A |
|
|
45,576 |
|
|
|
|
|
|
|
|
|
|
|
45,576 |
|
|
UBS U.S. Equity Alpha FundClass C |
|
|
19,433 |
|
|
|
|
|
|
|
|
|
|
|
19,433 |
|
|
UBS U.S. Equity Alpha FundClass Y |
|
|
89 |
|
|
|
|
|
|
|
|
|
|
|
89 |
|
|
UBS U.S. Large Cap Growth FundClass A |
|
|
169,075 |
|
|
|
51,018 |
|
|
|
69,987 |
|
|
|
48,070 |
|
|
UBS U.S. Large Cap Growth FundClass B |
|
|
16,694 |
|
|
|
7,933 |
|
|
|
5,968 |
|
|
|
2,793 |
|
|
UBS U.S. Large Cap Growth FundClass C |
|
|
23,270 |
|
|
|
8,401 |
|
|
|
8,261 |
|
|
|
6,608 |
|
|
UBS U.S. Large Cap Growth FundClass Y |
|
|
251,745 |
|
|
|
71,839 |
|
|
|
55,091 |
|
|
|
124,815 |
|
|
UBS U.S. Large Cap Value Equity FundClass A |
|
|
746,656 |
|
|
|
312,029 |
|
|
|
226,959 |
|
|
|
207,669 |
|
|
UBS U.S. Large Cap Value Equity FundClass B |
|
|
57,846 |
|
|
|
42,951 |
|
|
|
9,897 |
|
|
|
4,998 |
|
|
UBS U.S. Large Cap Value Equity FundClass C |
|
|
134,927 |
|
|
|
62,485 |
|
|
|
39,190 |
|
|
|
33,252 |
|
|
UBS U.S. Large Cap Value Equity FundClass Y |
|
|
46,836 |
|
|
|
15,415 |
|
|
|
14,242 |
|
|
|
17,179 |
|
|
UBS U.S. Mid Cap Growth Equity FundClass A |
|
|
8,009 |
|
|
|
|
|
|
|
1,575 |
|
|
|
6,434 |
|
|
UBS U.S. Mid Cap Growth Equity FundClass C |
|
|
2,601 |
|
|
|
|
|
|
|
590 |
|
|
|
2,011 |
|
|
UBS U.S. Mid Cap Growth Equity FundClass Y |
|
|
217,665 |
|
|
|
|
|
|
|
60,262 |
|
|
|
157,403 |
|
|
UBS U.S. Small Cap Growth FundClass A |
|
|
1,123,608 |
|
|
|
272,585 |
|
|
|
298,049 |
|
|
|
552,974 |
|
|
UBS U.S. Small Cap Growth FundClass B |
|
|
90,331 |
|
|
|
51,108 |
|
|
|
29,642 |
|
|
|
9,581 |
|
|
UBS U.S. Small Cap Growth FundClass C |
|
|
82,259 |
|
|
|
38,249 |
|
|
|
24,460 |
|
|
|
19,550 |
|
|
UBS U.S. Small Cap Growth FundClass Y |
|
|
731,615 |
|
|
|
110,351 |
|
|
|
201,743 |
|
|
|
419,521 |
|
|
UBS Global Bond FundClass A |
|
|
148,492 |
|
|
|
54,654 |
|
|
|
54,977 |
|
|
|
38,861 |
|
|
UBS Global Bond FundClass B |
|
|
8,620 |
|
|
|
5,301 |
|
|
|
2,335 |
|
|
|
984 |
|
|
UBS Global Bond FundClass C |
|
|
18,096 |
|
|
|
9,933 |
|
|
|
6,123 |
|
|
|
2,040 |
|
|
UBS Global Bond FundClass Y |
|
|
396,419 |
|
|
|
123,731 |
|
|
|
154,935 |
|
|
|
117,753 |
|
|
UBS High Yield FundClass A |
|
|
196,495 |
|
|
|
55,259 |
|
|
|
99,109 |
|
|
|
42,127 |
|
|
UBS High Yield FundClass B |
|
|
8,177 |
|
|
|
2,034 |
|
|
|
4,134 |
|
|
|
2,009 |
|
|
UBS High Yield FundClass C |
|
|
47,615 |
|
|
|
15,374 |
|
|
|
22,658 |
|
|
|
9,583 |
|
|
UBS High Yield FundClass Y |
|
|
53,011 |
|
|
|
4,299 |
|
|
|
37,661 |
|
|
|
11,051 |
|
|
UBS U.S. Bond FundClass A |
|
|
258,276 |
|
|
|
108,925 |
|
|
|
79,152 |
|
|
|
70,199 |
|
|
UBS U.S. Bond FundClass B |
|
|
11,980 |
|
|
|
7,703 |
|
|
|
2,662 |
|
|
|
1,615 |
|
|
UBS U.S. Bond FundClass C |
|
|
12,752 |
|
|
|
6,202 |
|
|
|
3,411 |
|
|
|
3,139 |
|
|
UBS U.S. Bond FundClass Y |
|
|
602,628 |
|
|
|
168,925 |
|
|
|
211,018 |
|
|
|
222,685 |
|
|
Each Fund pays UBS Global Asset Management (US) Inc. ("UBS Global AM (US)"), an affiliate of the Advisor, a monthly administration fee that is accrued daily and paid monthly at an annual rate of 0.075% of the
219
The UBS FundsNotes to financial statements
average daily net assets of such Fund. For the year ended June 30, 2007, the Funds owed and incurred administrative fees as follows:
Fund |
|
Administrative fees owed |
|
Administrative fees incurred |
|
UBS Dynamic Alpha Fund |
|
$ |
206,880 |
|
|
$ |
2,357,825 |
|
|
UBS Global Allocation Fund |
|
|
318,001 |
|
|
|
3,401,914 |
|
|
UBS Global Equity Fund |
|
|
25,526 |
|
|
|
332,553 |
|
|
UBS International Equity Fund |
|
|
12,556 |
|
|
|
155,877 |
|
|
UBS U.S. Equity Alpha Fund |
|
|
14,491 |
|
|
|
99,691 |
|
|
UBS U.S. Large Cap Equity Fund |
|
|
62,004 |
|
|
|
610,966 |
|
|
UBS U.S. Large Cap Growth Fund |
|
|
6,842 |
|
|
|
29,689 |
|
|
UBS U.S. Large Cap Value Equity Fund |
|
|
8,685 |
|
|
|
101,811 |
|
|
UBS U.S. Mid Cap Growth Equity Fund |
|
|
369 |
|
|
|
3,993 |
|
|
UBS U.S. Small Cap Growth Fund |
|
|
28,864 |
|
|
|
338,051 |
|
|
UBS Absolute Return Bond Fund |
|
|
34,576 |
|
|
|
399,948 |
|
|
UBS Global Bond Fund |
|
|
7,559 |
|
|
|
83,752 |
|
|
UBS High Yield Fund |
|
|
6,626 |
|
|
|
79,978 |
|
|
UBS U.S. Bond Fund |
|
|
11,962 |
|
|
|
130,880 |
|
|
The Funds may invest in shares of certain affiliated investment companies also advised or managed by the Advisor. The Funds pay no management fees to these affiliated investment companies. Investments in affiliated investment companies for the year ended June 30, 2007 were as follows:
|
|
|
|
|
|
UBS Dynamic Alpha Fund |
|
|
|
Affiliated investment companies |
|
Value 06/30/06 |
|
Purchases |
|
Sales proceeds |
|
Net realized gain (loss) |
|
Change in net unrealized appreciation (depreciation) |
|
Value 06/30/07 |
|
UBS Emerging Markets Equity Relationship Fund |
|
$ |
195,498,312 |
|
|
$ |
|
|
|
$ |
12,902,500 |
|
|
$ |
6,751,516 |
|
|
$ |
77,594,103 |
|
|
$ |
266,941,429 |
|
|
UBS International Equity Relationship Fund |
|
|
752,513,966 |
|
|
|
17,000,000 |
|
|
|
397,000,000 |
|
|
|
125,781,308 |
|
|
|
59,991,330 |
|
|
|
558,286,604 |
|
|
UBS Opportunistic Emerging Markets Debt Relationship Fund |
|
|
|
|
|
|
42,000,000 |
|
|
|
|
|
|
|
|
|
|
|
4,175,197 |
|
|
|
46,175,197 |
|
|
UBS Opportunistic High Yield Relationship Fund |
|
|
|
|
|
|
38,000,000 |
|
|
|
|
|
|
|
|
|
|
|
1,142,524 |
|
|
|
39,142,524 |
|
|
UBS Small-Cap Equity Relationship Fund |
|
|
169,249,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,700,803 |
|
|
|
207,949,963 |
|
|
UBS U.S. Equity Alpha Relationship Fund |
|
|
264,889,737 |
|
|
|
19,000,000 |
|
|
|
|
|
|
|
|
|
|
|
71,615,970 |
|
|
|
355,505,707 |
|
|
UBS U.S. Large Cap Equity Relationship Fund |
|
|
642,474,353 |
|
|
|
|
|
|
|
318,000,000 |
|
|
|
23,876,223 |
|
|
|
44,514,492 |
|
|
|
392,865,068 |
|
|
UBS U.S. Large Cap Growth Equity Relationship Fund |
|
|
166,243,607 |
|
|
|
9,000,000 |
|
|
|
|
|
|
|
|
|
|
|
35,786,441 |
|
|
|
211,030,048 |
|
|
220
The UBS FundsNotes to financial statements
|
|
|
|
|
|
UBS Global Allocation Fund |
|
|
|
Affiliated investment companies |
|
Value 06/30/06 |
|
Purchases |
|
Sales proceeds |
|
Net realized gain (loss) |
|
Change in net unrealized appreciation (depreciation) |
|
Value 06/30/07 |
|
UBS Corporate Bond Relationship Fund |
|
$ |
40,646,810 |
|
|
$ |
58,350,000 |
|
|
$ |
5,000,000 |
|
|
$ |
385,729 |
|
|
$ |
3,742,793 |
|
|
$ |
98,125,332 |
|
|
UBS Emerging Markets Equity Relationship Fund |
|
|
167,868,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
72,524,327 |
|
|
|
240,393,272 |
|
|
UBS Global ex U.S. Smaller Cap Equity Completion Relationship Fund |
|
|
|
|
|
|
7,000,000 |
|
|
|
|
|
|
|
|
|
|
|
524,790 |
|
|
|
7,524,790 |
|
|
UBS High Yield Relationship Fund |
|
|
31,640,230 |
|
|
|
10,000,000 |
|
|
|
|
|
|
|
|
|
|
|
3,722,979 |
|
|
|
45,363,209 |
|
|
UBS Small-Cap Equity Relationship Fund |
|
|
118,431,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,080,725 |
|
|
|
145,512,115 |
|
|
UBS U.S. Securitized Mortgage Relationship Fund |
|
|
122,928,299 |
|
|
|
225,000,000 |
|
|
|
|
|
|
|
|
|
|
|
7,388,173 |
|
|
|
355,316,472 |
|
|
|
|
|
|
|
|
UBS Global Equity Fund |
|
|
|
Affiliated investment companies |
|
Value 06/30/06 |
|
Purchases |
|
Sales proceeds |
|
Net realized gain (loss) |
|
Change in net unrealized appreciation (depreciation) |
|
Value 06/30/07 |
|
UBS Emerging Markets Equity Completion Relationship Fund |
|
$ |
16,731,326 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
7,827,456 |
|
|
$ |
24,558,782 |
|
|
UBS Global ex U.S. Smaller Cap Equity Completion Relationship Fund |
|
|
|
|
|
|
2,300,000 |
|
|
|
|
|
|
|
|
|
|
|
172,431 |
|
|
|
2,472,431 |
|
|
UBS U.S. Smaller Cap Equity Completion Relationship Fund |
|
|
|
|
|
|
2,200,000 |
|
|
|
|
|
|
|
|
|
|
|
171,138 |
|
|
|
2,371,138 |
|
|
|
|
|
|
|
|
UBS International Equity Fund |
|
|
|
Affiliated investment companies |
|
Value 06/30/06 |
|
Purchases |
|
Sales proceeds |
|
Net realized gain (loss) |
|
Change in net unrealized appreciation (depreciation) |
|
Value 06/30/07 |
|
UBS Emerging Markets Equity Completion Relationship Fund |
|
$ |
7,185,232 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
3,361,484 |
|
|
$ |
10,546,716 |
|
|
UBS Global ex U.S. Smaller Cap Equity Completion Relationship Fund |
|
|
|
|
|
|
2,500,000 |
|
|
|
|
|
|
|
|
|
|
|
187,425 |
|
|
|
2,687,425 |
|
|
|
|
|
|
|
|
UBS Absolute Return Bond Fund |
|
|
|
Affiliated investment companies |
|
Value 06/30/06 |
|
Purchases |
|
Sales proceeds |
|
Net realized gain (loss) |
|
Change in net unrealized appreciation (depreciation) |
|
Value 06/30/07 |
|
UBS U.S. Securitized Mortgage Relationship Fund |
|
$ |
63,042,475 |
|
|
$ |
|
|
|
$ |
37,000,000 |
|
|
$ |
2,576,862 |
|
|
$ |
871,980 |
|
|
$ |
29,491,317 |
|
|
221
The UBS FundsNotes to financial statements
|
|
|
|
|
|
UBS Global Bond Fund |
|
|
|
Affiliated investment companies |
|
Value 06/30/06 |
|
Purchases |
|
Sales proceeds |
|
Net realized gain (loss) |
|
Change in net unrealized appreciation (depreciation) |
|
Value 06/30/07 |
|
UBS U.S. Securitized Mortgage Relationship Fund |
|
$ |
11,710,161 |
|
|
$ |
7,275,000 |
|
|
$ |
5,800,000 |
|
|
$ |
626,279 |
|
|
$ |
102,393 |
|
|
$ |
13,913,833 |
|
|
|
|
|
|
|
|
UBS U.S. Bond Fund |
|
|
|
Affiliated investment companies |
|
Value 06/30/06 |
|
Purchases |
|
Sales proceeds |
|
Net realized gain (loss) |
|
Change in net unrealized appreciation (depreciation) |
|
Value 06/30/07 |
|
UBS Corporate Bond Relationship Fund |
|
$ |
2,698,312 |
|
|
$ |
2,600,000 |
|
|
$ |
2,500,000 |
|
|
$ |
171,525 |
|
|
$ |
201,226 |
|
|
$ |
3,171,063 |
|
|
UBS Opportunistic Emerging Markets Debt Relationship Fund |
|
|
2,006,713 |
|
|
|
1,600,000 |
|
|
|
|
|
|
|
|
|
|
|
428,352 |
|
|
|
4,035,065 |
|
|
UBS Opportunistic High Yield Relationship Fund |
|
|
8,026,848 |
|
|
|
4,200,000 |
|
|
|
|
|
|
|
|
|
|
|
630,530 |
|
|
|
12,857,378 |
|
|
UBS U.S. Securitized Mortgage Relationship Fund |
|
|
9,435,351 |
|
|
|
43,090,000 |
|
|
|
|
|
|
|
|
|
|
|
898,523 |
|
|
|
53,423,874 |
|
|
The Funds may invest in shares of the UBS Supplementary TrustU.S. Cash Management Prime Fund ("Supplementary Trust"). Supplementary Trust is managed by the Advisor and is offered as a cash management option only to mutual funds and certain other accounts managed by the Advisor. Supplementary Trust pays no management fees to the Advisor. Distributions received from Supplementary Trust are reflected as affiliated interest income in the Statements of Operations. Amounts relating to those investments at June 30, 2007 and for the year then ended were as follows:
Fund |
|
Value 06/30/06 |
|
Purchases |
|
Sales proceeds |
|
Interest income |
|
Value 06/30/07 |
|
% of net assets |
|
UBS Global Allocation Fund |
|
$ |
207,914,294 |
|
|
$ |
968,045,584 |
|
|
$ |
1,018,544,355 |
|
|
$ |
9,356,035 |
|
|
$ |
157,415,523 |
|
|
|
3.05 |
% |
|
UBS Global Equity Fund |
|
|
|
|
|
|
79,517,370 |
|
|
|
78,186,964 |
|
|
|
112,243 |
|
|
|
1,330,406 |
|
|
|
0.33 |
% |
|
UBS International Equity Fund |
|
|
21,075,030 |
|
|
|
88,158,740 |
|
|
|
103,144,536 |
|
|
|
97,594 |
|
|
|
6,089,234 |
|
|
|
3.02 |
% |
|
UBS U.S. Large Cap Equity Fund |
|
|
18,145,640 |
|
|
|
318,787,694 |
|
|
|
319,890,722 |
|
|
|
1,596,771 |
|
|
|
17,042,612 |
|
|
|
1.70 |
% |
|
UBS U.S. Large Cap Growth Fund |
|
|
139,461 |
|
|
|
39,138,491 |
|
|
|
38,443,612 |
|
|
|
41,798 |
|
|
|
834,340 |
|
|
|
1.14 |
% |
|
UBS U.S. Large Cap Value Equity Fund |
|
|
903,587 |
|
|
|
25,431,330 |
|
|
|
25,047,835 |
|
|
|
85,801 |
|
|
|
1,287,082 |
|
|
|
0.92 |
% |
|
UBS U.S. Small Cap Growth Fund |
|
|
10,786,995 |
|
|
|
118,081,266 |
|
|
|
114,114,509 |
|
|
|
389,348 |
|
|
|
14,753,752 |
|
|
|
3.19 |
% |
|
UBS Global Bond Fund |
|
|
7,204,469 |
|
|
|
48,808,057 |
|
|
|
50,874,164 |
|
|
|
298,653 |
|
|
|
5,138,362 |
|
|
|
4.17 |
% |
|
UBS High Yield Fund |
|
|
982,605 |
|
|
|
54,062,667 |
|
|
|
51,212,491 |
|
|
|
133,674 |
|
|
|
3,832,781 |
|
|
|
3.60 |
% |
|
UBS U.S. Bond Fund |
|
|
7,844,306 |
|
|
|
106,469,650 |
|
|
|
109,747,375 |
|
|
|
316,427 |
|
|
|
4,566,581 |
|
|
|
2.35 |
% |
|
222
The UBS FundsNotes to financial statements
The Funds may invest in shares of the UBS U.S. Cash Management Prime Relationship Fund ("Cash Prime"). Cash Prime is offered as a cash management option only to mutual funds and certain other accounts. Distributions received from Cash Prime are reflected as affiliated interest income in the Statements of Operations. Amounts relating to those investments at June 30, 2007 and for the year then ended were as follows:
Fund |
|
Value 06/30/06 |
|
Purchases |
|
Sales proceeds |
|
Interest income |
|
Value 06/30/07 |
|
% of net assets |
|
UBS Dynamic Alpha Fund |
|
$ |
27,133,225 |
|
|
$ |
1,116,298,573 |
|
|
$ |
1,077,589,123 |
|
|
$ |
4,500,231 |
|
|
$ |
65,842,675 |
|
|
|
2.02 |
% |
|
UBS U.S. Equity Alpha Fund |
|
|
|
|
|
|
60,906,870 |
|
|
|
60,027,587 |
|
|
|
70,593 |
|
|
|
879,283 |
|
|
|
0.38 |
|
|
UBS U.S. Mid Cap Growth Equity Fund |
|
|
60,872 |
|
|
|
1,176,234 |
|
|
|
1,171,973 |
|
|
|
2,745 |
|
|
|
65,133 |
|
|
|
1.10 |
|
|
UBS Absolute Return Bond Fund |
|
|
39,828,887 |
|
|
|
208,575,271 |
|
|
|
237,918,476 |
|
|
|
1,872,942 |
|
|
|
10,485,682 |
|
|
|
1.89 |
|
|
The following Funds have incurred brokerage commissions with UBS AG, an affiliated broker-dealer. Amounts relating to those transactions for the year ended June 30, 2007, were as follows:
Fund |
|
Brokerage commissions |
|
UBS Dynamic Alpha Fund |
|
$ |
29,363 |
|
|
UBS Global Allocation Fund |
|
|
935 |
|
|
UBS U.S. Equity Alpha Fund |
|
|
463 |
|
|
UBS U.S. Large Cap Equity Fund |
|
|
15,563 |
|
|
UBS U.S. Large Cap Value Equity Fund |
|
|
23 |
|
|
UBS U.S. Mid Cap Growth Fund |
|
|
68 |
|
|
3. Service and distribution plans
UBS Global AM (US) is the principal underwriter of each Fund's shares. The Trust has adopted service and/or distribution plans (the "Plans") pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended, for Class A, Class B and Class C. The Plans govern payments made for the expenses incurred in the service and/or distribution of Class A, Class B and Class C. Annual fees under the Plans as a percentage of the average daily net assets of each representative class of each of the Funds are as follows:
Fund |
|
Class A |
|
Class B |
|
Class C |
|
UBS Dynamic Alpha Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
UBS Global Allocation Fund |
|
|
0.25 |
|
|
|
1.00 |
|
|
|
1.00 |
|
|
UBS Global Equity Fund |
|
|
0.25 |
|
|
|
1.00 |
|
|
|
1.00 |
|
|
UBS International Equity Fund |
|
|
0.25 |
|
|
|
1.00 |
|
|
|
1.00 |
|
|
UBS U.S. Equity Alpha Fund |
|
|
0.25 |
|
|
|
N/A* |
|
|
|
1.00 |
|
|
UBS U.S. Large Cap Equity Fund |
|
|
0.25 |
|
|
|
1.00 |
|
|
|
1.00 |
|
|
UBS U.S. Large Cap Growth Fund |
|
|
0.25 |
|
|
|
1.00 |
|
|
|
1.00 |
|
|
UBS U.S. Large Cap Value Equity Fund |
|
|
0.25 |
|
|
|
1.00 |
|
|
|
1.00 |
|
|
UBS U.S. Mid Cap Growth Equity Fund |
|
|
0.25 |
|
|
|
N/A* |
|
|
|
1.00 |
|
|
UBS U.S. Small Cap Growth Fund |
|
|
0.25 |
|
|
|
1.00 |
|
|
|
1.00 |
|
|
UBS Absolute Return Bond Fund |
|
|
0.15 |
|
|
|
N/A* |
|
|
|
0.50 |
|
|
223
The UBS FundsNotes to financial statements
Fund |
|
Class A |
|
Class B |
|
Class C |
|
UBS Global Bond Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
0.75 |
% |
|
UBS High Yield Fund |
|
|
0.25 |
|
|
|
1.00 |
|
|
|
0.75 |
|
|
UBS U.S. Bond Fund |
|
|
0.25 |
|
|
|
1.00 |
|
|
|
0.75 |
|
|
* UBS U.S. Equity Alpha Fund, UBS U.S. Mid Cap Growth Equity Fund and UBS Absolute Return Bond Fund do not offer Class B shares.
UBS Global AM (US) also receives the proceeds of the initial sales charges paid upon purchase of Class A and the contingent deferred sales charges paid by shareholders upon certain redemptions of Class A, Class B, and Class C.
At June 30, 2007, certain Funds owed UBS Global AM (US) service and distribution fees, and for the year ended June 30, 2007, certain Funds were informed by UBS Global AM (US) that it had earned sales charges as follows:
Fund |
|
Service and distribution fees owed |
|
Sales charges earned |
|
UBS Dynamic Alpha FundClass A |
|
$ |
455,122 |
|
|
$ |
5,227,717 |
|
|
UBS Dynamic Alpha FundClass B |
|
|
21,570 |
|
|
|
111,940 |
|
|
UBS Dynamic Alpha FundClass C |
|
|
488,030 |
|
|
|
217,359 |
|
|
UBS Global Allocation FundClass A |
|
|
634,276 |
|
|
|
6,765,318 |
|
|
UBS Global Allocation FundClass B |
|
|
113,941 |
|
|
|
237,595 |
|
|
UBS Global Allocation FundClass C |
|
|
1,048,796 |
|
|
|
128,972 |
|
|
UBS Global Equity FundClass A |
|
|
34,965 |
|
|
|
70,164 |
|
|
UBS Global Equity FundClass B |
|
|
6,197 |
|
|
|
12,752 |
|
|
UBS Global Equity FundClass C |
|
|
43,668 |
|
|
|
1,124 |
|
|
UBS International Equity FundClass A |
|
|
5,429 |
|
|
|
41,251 |
|
|
UBS International Equity FundClass B |
|
|
437 |
|
|
|
1,172 |
|
|
UBS International Equity FundClass C |
|
|
2,155 |
|
|
|
937 |
|
|
UBS U.S. Equity Alpha FundClass A |
|
|
38,652 |
|
|
|
1,265,376 |
|
|
UBS U.S. Equity Alpha FundClass C |
|
|
34,119 |
|
|
|
6,315 |
|
|
UBS U.S. Large Cap Equity FundClass A |
|
|
32,447 |
|
|
|
71,603 |
|
|
UBS U.S. Large Cap Equity FundClass B |
|
|
720 |
|
|
|
1,163 |
|
|
UBS U.S. Large Cap Equity FundClass C |
|
|
8,804 |
|
|
|
1,358 |
|
|
UBS U.S. Large Cap Growth FundClass A |
|
|
2,016 |
|
|
|
4,018 |
|
|
UBS U.S. Large Cap Growth FundClass B |
|
|
187 |
|
|
|
234 |
|
|
UBS U.S. Large Cap Growth FundClass C |
|
|
802 |
|
|
|
22 |
|
|
UBS U.S. Large Cap Value Equity FundClass A |
|
|
25,172 |
|
|
|
19,340 |
|
|
UBS U.S. Large Cap Value Equity FundClass B |
|
|
866 |
|
|
|
1,779 |
|
|
UBS U.S. Large Cap Value Equity FundClass C |
|
|
13,191 |
|
|
|
389 |
|
|
UBS U.S. Mid Cap Growth Equity FundClass A |
|
|
55 |
|
|
|
2,654 |
|
|
UBS U.S. Mid Cap Growth Equity FundClass C |
|
|
476 |
|
|
|
246 |
|
|
UBS U.S. Small Cap Growth FundClass A |
|
|
31,094 |
|
|
|
8,568 |
|
|
UBS U.S. Small Cap Growth FundClass B |
|
|
1,508 |
|
|
|
7,861 |
|
|
UBS U.S. Small Cap Growth FundClass C |
|
|
6,536 |
|
|
|
682 |
|
|
UBS Absolute Return Bond FundClass A |
|
|
32,620 |
|
|
|
182,305 |
|
|
UBS Absolute Return Bond FundClass C |
|
|
15,609 |
|
|
|
13,826 |
|
|
UBS Global Bond FundClass A |
|
|
2,961 |
|
|
|
25,948 |
|
|
224
The UBS FundsNotes to financial statements
Fund |
|
Service and distribution fees owed |
|
Sales charges earned |
|
UBS Global Bond FundClass B |
|
$ |
185 |
|
|
$ |
190 |
|
|
UBS Global Bond FundClass C |
|
|
924 |
|
|
|
815 |
|
|
UBS High Yield FundClass A |
|
|
9,417 |
|
|
|
57,892 |
|
|
UBS High Yield FundClass B |
|
|
2,120 |
|
|
|
5,118 |
|
|
UBS High Yield FundClass C |
|
|
7,106 |
|
|
|
1,833 |
|
|
UBS U.S. Bond FundClass A |
|
|
6,151 |
|
|
|
22,151 |
|
|
UBS U.S. Bond FundClass B |
|
|
363 |
|
|
|
156 |
|
|
UBS U.S. Bond FundClass C |
|
|
986 |
|
|
|
1,014 |
|
|
4. Transfer agency and related services fees
UBS Financial Services Inc. provides transfer agency and related services to each Fund pursuant to a delegation of authority from PFPC, Inc. ("PFPC"), each Fund's transfer agent, and is compensated for these services by PFPC, not the Funds.
For the year ended June 30, 2007, UBS Financial Services Inc. received from PFPC, not the Funds, total transfer agency and related services fees paid by the Funds to PFPC as follows:
Fund |
|
Amount paid |
|
UBS Dynamic Alpha Fund |
|
$ |
733,850 |
|
|
UBS Global Allocation Fund |
|
|
1,042,304 |
|
|
UBS Global Equity Fund |
|
|
184,505 |
|
|
UBS International Equity Fund |
|
|
10,238 |
|
|
UBS U.S. Equity Alpha Fund |
|
|
34,565 |
|
|
UBS U.S. Large Cap Equity Fund |
|
|
24,462 |
|
|
UBS U.S. Large Cap Growth Fund |
|
|
3,434 |
|
|
UBS U.S. Large Cap Value Equity Fund |
|
|
50,299 |
|
|
UBS U.S. Mid Cap Growth Equity Fund |
|
|
162 |
|
|
UBS U.S. Small Cap Growth Fund |
|
|
39,287 |
|
|
UBS Absolute Return Bond Fund |
|
|
103,471 |
|
|
UBS Global Bond Fund |
|
|
14,677 |
|
|
UBS High Yield Fund |
|
|
47,656 |
|
|
UBS U.S. Bond Fund |
|
|
5,017 |
|
|
5. Securities lending
Each Fund may lend portfolio securities up to 33 1/3% of its total assets to qualified broker-dealers or institutional investors. The loans are secured at all times by cash, US government securities or irrevocable letters of credit in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. Each Fund will regain ownership of loaned securities to exercise certain beneficial rights; however, each Fund may bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower fail financially. Each Fund receives compensation for lending its securities from interest or dividends earned on the cash, US government securities or irrevocable letters of credit held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees. The Funds monitor the market va
lue of securities loaned on a daily basis and initially require collateral against the loaned securities in an amount at least equal to 102% of the value of domestic securities loaned and 105% of the value of foreign securities loaned.
225
The UBS FundsNotes to financial statements
UBS Global Allocation Fund and UBS International Equity Fund loaned securities to certain qualified broker-dealers, with the Funds' custodian acting as the Funds' lending agent. Cash collateral received is invested in interest bearing securities, which are included in the Portfolios of Investments. In addition, the UBS Global Allocation Fund received US Government Agency securities as collateral amounting to $204,396,017, which cannot be resold. The value of loaned securities and related collateral outstanding at June 30, 2007, were as follows:
Fund |
|
Market value of securities loaned |
|
Total collateral received from securities loaned |
|
Market value of investments of cash collateral received |
|
UBS Global Allocation Fund |
|
$ |
337,414,527 |
|
|
$ |
348,450,805 |
|
|
$ |
144,054,788 |
|
|
UBS International Equity Fund |
|
|
5,832,136 |
|
|
|
6,089,234 |
|
|
|
6,089,234 |
|
|
6. Purchases and sales of securities
For the year ended June 30, 2007, aggregate purchases and sales of portfolio securities, excluding short-term investments and US Government securities, were as follows:
Fund |
|
Purchases |
|
Sales proceeds |
|
UBS Dynamic Alpha Fund |
|
$ |
811,625,930 |
|
|
$ |
880,550,067 |
|
|
UBS Global Allocation Fund |
|
|
2,473,202,710 |
|
|
|
1,833,940,973 |
|
|
UBS Global Equity Fund |
|
|
139,571,456 |
|
|
|
238,718,919 |
|
|
UBS International Equity Fund |
|
|
145,594,116 |
|
|
|
182,548,160 |
|
|
UBS U.S. Equity Alpha Fund |
|
|
408,787,133 |
|
|
|
198,473,130 |
|
|
UBS U.S. Large Cap Equity Fund |
|
|
492,765,878 |
|
|
|
271,337,763 |
|
|
UBS U.S. Large Cap Growth Fund |
|
|
95,938,750 |
|
|
|
41,509,392 |
|
|
UBS U.S. Large Cap Value Equity Fund |
|
|
35,999,650 |
|
|
|
52,266,304 |
|
|
UBS U.S. Mid Cap Growth Equity Fund |
|
|
3,838,131 |
|
|
|
3,815,062 |
|
|
UBS U.S. Small Cap Growth Fund |
|
|
150,757,043 |
|
|
|
190,872,386 |
|
|
UBS Absolute Return Bond Fund |
|
|
351,445,697 |
|
|
|
260,062,578 |
|
|
UBS Global Bond Fund |
|
|
88,086,276 |
|
|
|
58,202,601 |
|
|
UBS High Yield Fund |
|
|
52,375,076 |
|
|
|
47,156,255 |
|
|
UBS U.S. Bond Fund |
|
|
83,474,967 |
|
|
|
51,981,077 |
|
|
For the year ended June 30, 2007, aggregate purchases and sales of US Government securities, excluding short-term investments, were as follows:
Fund |
|
Purchases |
|
Sales proceeds |
|
UBS Global Allocation Fund |
|
$ |
1,459,623,114 |
|
|
$ |
1,388,004,316 |
|
|
UBS Global Bond Fund |
|
|
16,818,528 |
|
|
|
20,222,872 |
|
|
UBS U.S. Bond Fund |
|
|
317,400,747 |
|
|
|
299,076,938 |
|
|
7. Federal income taxes
It is each Fund's policy to comply with all requirements of the Internal Revenue Code (the "Code") applicable to regulated investment companies and to distribute substantially all of their taxable income to their shareholders. In addition, by distributing during each calendar year substantially all of its net investment income, net realized capital gains and certain other amounts, if any, each Fund intends not to be subject to a federal excise tax. Accordingly, no federal income tax provision was required.
226
The UBS FundsNotes to financial statements
The tax character of distributions paid during the fiscal years ended June 30, 2007 and June 30, 2006 were as follows:
|
|
2007 |
|
2006 |
|
Fund |
|
Distributions paid from ordinary income |
|
Distributions paid from net long-term capital gains |
|
Total distributions paid |
|
Distributions paid from ordinary income |
|
Distributions paid from net long-term capital gains |
|
Total distributions paid |
|
UBS Dynamic Alpha Fund |
|
$ |
46,880 |
|
|
$ |
|
|
|
$ |
46,880 |
|
|
$ |
7,212,627 |
|
|
$ |
4,878,805 |
|
|
$ |
12,091,432 |
|
|
UBS Global Allocation Fund |
|
|
123,945,917 |
|
|
|
185,593,405 |
|
|
|
309,539,322 |
|
|
|
65,733,883 |
|
|
|
111,143,459 |
|
|
|
176,877,342 |
|
|
UBS Global Equity Fund |
|
|
3,964,334 |
|
|
|
|
|
|
|
3,964,334 |
|
|
|
2,442,591 |
|
|
|
|
|
|
|
2,442,591 |
|
|
UBS International Equity Fund |
|
|
5,455,734 |
|
|
|
6,171,802 |
|
|
|
11,627,536 |
|
|
|
2,158,708 |
|
|
|
4,706,815 |
|
|
|
6,865,523 |
|
|
UBS U.S.Equity Alpha Fund |
|
|
270,893 |
|
|
|
|
|
|
|
270,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UBS U.S. Large Cap Equity Fund |
|
|
14,888,199 |
|
|
|
14,605,699 |
|
|
|
29,493,898 |
|
|
|
5,777,509 |
|
|
|
7,141,858 |
|
|
|
12,919,367 |
|
|
UBS U.S. Large Cap Growth Fund |
|
|
14,389 |
|
|
|
|
|
|
|
14,389 |
|
|
|
5,151 |
|
|
|
|
|
|
|
5,151 |
|
|
UBS U.S. Large Cap Value Equity Fund |
|
|
1,196,827 |
|
|
|
10,802,104 |
|
|
|
11,998,931 |
|
|
|
3,914,428 |
|
|
|
9,935,393 |
|
|
|
13,849,821 |
|
|
UBS U.S. Mid Cap Growth Equity Fund |
|
|
6,100 |
|
|
|
|
|
|
|
6,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UBS U.S. Small Cap Growth Fund |
|
|
178,406 |
|
|
|
13,569,899 |
|
|
|
13,748,305 |
|
|
|
503,650 |
|
|
|
13,307,966 |
|
|
|
13,811,616 |
|
|
UBS Absolute Return Bond Fund |
|
|
17,849,667 |
|
|
|
2,342,592 |
|
|
|
20,192,259 |
|
|
|
10,912,261 |
|
|
|
234,389 |
|
|
|
11,146,650 |
|
|
UBS Global Bond Fund |
|
|
2,906,595 |
|
|
|
|
|
|
|
2,906,595 |
|
|
|
2,962,657 |
|
|
|
|
|
|
|
2,962,657 |
|
|
UBS High Yield Fund |
|
|
8,349,600 |
|
|
|
|
|
|
|
8,349,600 |
|
|
|
8,615,802 |
|
|
|
|
|
|
|
8,615,802 |
|
|
UBS U.S. Bond Fund |
|
|
6,465,615 |
|
|
|
|
|
|
|
6,465,615 |
|
|
|
5,905,088 |
|
|
|
|
|
|
|
5,905,088 |
|
|
At June 30, 2007, the components of accumulated earnings (deficit) on a tax basis were as follows:
Fund |
|
Undistributed ordinary income |
|
Undistributed long-term capital gain |
|
Accumulated capital and other losses |
|
Unrealized appreciation/ (depreciation) |
|
UBS Dynamic Alpha Fund |
|
$ |
3,468,561 |
|
|
$ |
|
|
|
$ |
(227,303,396 |
) |
|
$ |
329,100,786 |
|
|
UBS Global Allocation Fund |
|
|
51,865,262 |
|
|
|
185,613,021 |
|
|
|
(57,821,993 |
) |
|
|
563,870,707 |
|
|
UBS Global Equity Fund |
|
|
2,143,997 |
|
|
|
|
|
|
|
(736,550,597 |
) |
|
|
110,846,770 |
|
|
UBS International Equity Fund |
|
|
7,291,063 |
|
|
|
11,828,154 |
|
|
|
(2,603,702 |
) |
|
|
65,163,018 |
|
|
UBS U.S. Equity Alpha Fund |
|
|
7,558,481 |
|
|
|
|
|
|
|
|
|
|
|
15,433,035 |
|
|
UBS U.S. Large Cap Equity Fund |
|
|
15,456,782 |
|
|
|
13,622,624 |
|
|
|
|
|
|
|
162,671,280 |
|
|
UBS U.S. Large Cap Growth Fund |
|
|
63,459 |
|
|
|
|
|
|
|
(859,493 |
) |
|
|
3,560,800 |
|
|
UBS U.S. Large Cap Value Equity Fund |
|
|
1,472,238 |
|
|
|
5,915,774 |
|
|
|
(427,665 |
) |
|
|
34,696,416 |
|
|
UBS U.S. Mid Cap Growth Equity Fund |
|
|
17,399 |
|
|
|
23,809 |
|
|
|
|
|
|
|
629,269 |
|
|
UBS U.S. Small Cap Growth Fund |
|
|
|
|
|
|
7,608,495 |
|
|
|
|
|
|
|
99,073,747 |
|
|
UBS Absolute Return Bond Fund |
|
|
6,595,459 |
|
|
|
|
|
|
|
(6,058,862 |
) |
|
|
(1,533,023 |
) |
|
UBS Global Bond Fund |
|
|
|
|
|
|
|
|
|
|
(2,413,600 |
) |
|
|
147,681 |
|
|
UBS High Yield Fund |
|
|
39,737 |
|
|
|
|
|
|
|
(221,281,806 |
) |
|
|
(5,094 |
) |
|
UBS U.S. Bond Fund |
|
|
846,164 |
|
|
|
|
|
|
|
(3,145,215 |
) |
|
|
(1,192,648 |
) |
|
227
The UBS FundsNotes to financial statements
Due to inherent differences in the recognition of income, expenses and realized gains/losses under US generally accepted accounting principles and federal income tax purposes, permanent differences between book and tax basis reporting for the current fiscal year have been identified and appropriately reclassified. Reclassifications for the year ended June 30, 2007 were as follows:
Fund |
|
Accumulated undistributed net investment income |
|
Accumulated net realized gain (loss) |
|
Beneficial interest |
|
UBS Dynamic Alpha Fund |
|
$ |
(100,375,928 |
) |
|
$ |
273,193,021 |
|
|
$ |
(172,817,093 |
) |
|
UBS Global Allocation Fund |
|
|
(32,779,923 |
) |
|
|
85,809,844 |
|
|
|
(53,029,921 |
) |
|
UBS Global Equity Fund |
|
|
(3,750,226 |
) |
|
|
3,946,800 |
|
|
|
(196,574 |
) |
|
UBS International Equity Fund |
|
|
(1,563,207 |
) |
|
|
1,723,187 |
|
|
|
(159,980 |
) |
|
UBS U.S. Equity Alpha Fund |
|
|
103,840 |
|
|
|
(2,120 |
) |
|
|
(101,720 |
) |
|
UBS U.S. Large Cap Equity Fund |
|
|
4 |
|
|
|
(4 |
) |
|
|
|
|
|
UBS U.S. Large Cap Growth Fund |
|
|
(19,045 |
) |
|
|
|
|
|
|
19,045 |
|
|
UBS U.S. Large Cap Value Equity Fund |
|
|
|
|
|
|
(215,566 |
) |
|
|
215,566 |
|
|
UBS U.S. Mid Cap Growth Equity Fund |
|
|
60,420 |
|
|
|
|
|
|
|
(60,420 |
) |
|
UBS U.S. Small Cap Growth Fund |
|
|
3,576,493 |
|
|
|
(3,441,969 |
) |
|
|
(134,524 |
) |
|
UBS Absolute Return Bond Fund |
|
|
1,366,684 |
|
|
|
(1,426,673 |
) |
|
|
59,989 |
|
|
UBS Global Bond Fund |
|
|
(847,221 |
) |
|
|
841,310 |
|
|
|
5,911 |
|
|
UBS High Yield Fund |
|
|
549,711 |
|
|
|
18,111,746 |
|
|
|
(18,661,457 |
) |
|
UBS U.S. Bond Fund |
|
|
1,492,092 |
|
|
|
(263,286 |
) |
|
|
(1,228,806 |
) |
|
At June 30, 2007, the following Funds had net capital loss carryforwards for federal income tax purposes available to offset future capital gains through the indicated expiration dates:
|
|
Expiration dates |
|
Fund |
|
June 30, 2008 |
|
June 30, 2009 |
|
June 30, 2010 |
|
June 30, 2011 |
|
June 30, 2012 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2015 |
|
UBS Dynamic Alpha Fund |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
19,275,465 |
|
|
UBS Global Equity Fund |
|
|
85,562,248 |
(1) |
|
|
389,124,210 |
(1) |
|
|
253,636,661 |
(1) |
|
|
4,283,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UBS U.S. Large Cap Growth Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
255,718 |
|
|
|
603,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UBS U.S. Large Cap Value Equity Fund |
|
|
70,827 |
(2) |
|
|
83,503 |
(2) |
|
|
273,335 |
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UBS Global Bond Fund |
|
|
|
|
|
|
269,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
359,497 |
|
|
UBS High Yield Fund |
|
|
98,009,332 |
(3) |
|
|
23,205,714 |
(3) |
|
|
6,612,767 |
|
|
|
37,425,637 |
|
|
|
15,791,570 |
|
|
|
11,067,780 |
|
|
|
22,213,870 |
|
|
|
5,885,761 |
|
|
UBS U.S. Bond Fund |
|
|
|
|
|
|
404,247 |
|
|
|
|
|
|
|
|
|
|
|
614,333 |
|
|
|
140,847 |
|
|
|
630,558 |
|
|
|
1,283,441 |
|
|
(1) Due to merger with UBS Strategy Fund, utilization of capital loss carryforwards in subsequent years may be limited.
(2) Due to merger with UBS U.S. Large Cap Equity Fund, utilization of capital loss carryforwards in subsequent years may be limited.
(3) Due to merger with Paine Webber High Income Fund, utilization of capital loss carryforwards in subsequent years may be limited.
228
The UBS FundsNotes to financial statements
The UBS High Yield Fund had capital loss carryforwards in the amount of $18,661,457 that expired as of June 30, 2007.
During the fiscal year ended June 30, 2007, the following Funds utilized capital loss carryforwards to offset current year realized gains:
Fund |
|
Amount |
|
UBS Global Equity Fund |
|
$ |
46,678,549 |
|
|
UBS U.S. Large Cap Growth Fund |
|
|
1,467,417 |
|
|
UBS U.S. Large Cap Value Equity Fund |
|
|
142,555 |
|
|
UBS U.S. Mid Cap Growth Equity Fund |
|
|
27,770 |
|
|
UBS High Yield Fund |
|
|
12,775,696 |
|
|
Post-October losses are deemed to arise on the first business day of a Fund's next taxable year. For the year ended June 30, 2007, the following Funds incurred, and elected to defer, losses of the following:
Fund |
|
Net capital losses |
|
Net currency losses |
|
UBS Dynamic Alpha Fund |
|
$ |
39,226,902 |
|
|
$ |
166,615,966 |
|
|
UBS Global Allocation Fund |
|
|
|
|
|
|
51,558,194 |
|
|
UBS Global Equity Fund |
|
|
|
|
|
|
3,943,632 |
|
|
UBS International Equity Fund |
|
|
|
|
|
|
2,603,702 |
|
|
UBS Absolute Return Bond Fund |
|
|
|
|
|
|
2,305,788 |
|
|
UBS Global Bond Fund |
|
|
63,433 |
|
|
|
783,981 |
|
|
UBS High Yield Fund |
|
|
1,069,375 |
|
|
|
|
|
|
UBS U.S. Bond Fund |
|
|
71,789 |
|
|
|
|
|
|
On July 13, 2006, FASB released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing a fund's tax return to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet a more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Based on the Securities and Exchange Commission's announcement on December 22, 2006, the implementation of FIN 48 must be incorporated into accounting practices no late
r than the last business day of the Funds' December 31, 2007 semiannual report. Management continues to evaluate the application of FIN 48 to the Funds, and is not in a position at this time to estimate the significance of its impact, if any, on the Funds' financial statements.
229
The UBS FundsNotes to financial statements
8. Line of credit
The Trust has entered into an agreement with JPMorgan Chase Bank to provide a $75 million committed line of credit to the Funds ("Committed Credit Facility") to be utilized for temporary financing until the settlement of shares or purchases of portfolio securities, the repurchase or redemption of shares of each Fund at the request of shareholders and other temporary or emergency purposes. Interest on amounts borrowed is calculated based on the federal funds rate in effect at the time of borrowing, plus 0.50%. Under the Committed Credit Facility arrangement, each Fund has agreed to pay commitment fees, pro rata, based on the relative asset size of the Funds in the Committed Credit Facility. The average daily borrowings under the agreement for the year ended June 30, 2007, were as follows:
Fund |
|
Average daily borrowings |
|
Number of days outstanding |
|
Interest expense |
|
Weighted average annualized interest rate |
|
UBS Dynamic Alpha Fund |
|
$ |
13,218,500 |
|
|
|
9 |
|
|
$ |
19,101 |
|
|
|
5.78 |
% |
|
UBS Global Equity Fund |
|
|
15,931,121 |
|
|
|
6 |
|
|
|
15,429 |
|
|
|
5.81 |
|
|
UBS International Equity Fund |
|
|
14,818,346 |
|
|
|
10 |
|
|
|
23,936 |
|
|
|
5.82 |
|
|
UBS U.S. Large Cap Equity Fund |
|
|
26,470,000 |
|
|
|
4 |
|
|
|
17,044 |
|
|
|
5.80 |
|
|
UBS Global Bond Fund |
|
|
1,480,000 |
|
|
|
2 |
|
|
|
478 |
|
|
|
5.81 |
|
|
9. Capital contributions from advisor
During the year ended June 30, 2007, the Advisor reimbursed the UBS U.S. Bond Fund for trading errors in the amount of $2,876.
10. Shares of beneficial interest
For the year ended June 30, 2007, transactions in shares of beneficial interest for each of the Funds were as follows:
UBS Dynamic Alpha Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
84,872,728 |
|
|
$ |
969,584,092 |
|
|
|
434,805 |
|
|
$ |
4,900,329 |
|
|
Shares repurchased |
|
|
(56,278,365 |
) |
|
|
(645,034,749 |
) |
|
|
(473,098 |
) |
|
|
(5,382,643 |
) |
|
Shares converted from Class B to Class A |
|
|
404,603 |
|
|
|
4,666,041 |
|
|
|
(408,967 |
) |
|
|
(4,666,041 |
) |
|
Dividends reinvested |
|
|
2,843 |
|
|
|
32,985 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) |
|
|
29,001,809 |
|
|
$ |
329,248,369 |
|
|
|
(447,260 |
) |
|
$ |
(5,148,355 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
15,243,059 |
|
|
$ |
172,303,345 |
|
|
|
28,936,867 |
|
|
$ |
333,363,937 |
|
|
Shares repurchased |
|
|
(11,188,363 |
) |
|
|
(127,116,150 |
) |
|
|
(13,688,026 |
) |
|
|
(157,002,781 |
) |
|
Dividends reinvested |
|
|
|
|
|
|
|
|
|
|
826 |
|
|
|
9,594 |
|
|
Net increase |
|
|
4,054,696 |
|
|
$ |
45,187,195 |
|
|
|
15,249,667 |
|
|
$ |
176,370,750 |
|
|
230
The UBS FundsNotes to financial statements
UBS Global Allocation Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
65,260,018 |
|
|
$ |
943,331,489 |
|
|
|
1,084,208 |
|
|
$ |
15,416,202 |
|
|
Shares repurchased |
|
|
(33,433,692 |
) |
|
|
(483,355,215 |
) |
|
|
(1,363,205 |
) |
|
|
(19,296,039 |
) |
|
Shares converted from Class B to Class A |
|
|
2,665,559 |
|
|
|
38,581,986 |
|
|
|
(2,714,928 |
) |
|
|
(38,581,986 |
) |
|
Dividends reinvested |
|
|
12,438,305 |
|
|
|
176,001,316 |
|
|
|
681,599 |
|
|
|
9,501,490 |
|
|
Net increase (decrease) |
|
|
46,930,190 |
|
|
$ |
674,559,576 |
|
|
|
(2,312,326 |
) |
|
$ |
(32,960,333 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
16,801,188 |
|
|
$ |
238,217,003 |
|
|
|
15,286,994 |
|
|
$ |
222,520,729 |
|
|
Shares repurchased |
|
|
(10,933,500 |
) |
|
|
(154,638,618 |
) |
|
|
(7,743,183 |
) |
|
|
(113,594,037 |
) |
|
Dividends reinvested |
|
|
5,254,975 |
|
|
|
72,991,604 |
|
|
|
2,641,018 |
|
|
|
37,898,604 |
|
|
Net increase |
|
|
11,122,663 |
|
|
$ |
156,569,989 |
|
|
|
10,184,829 |
|
|
$ |
146,825,296 |
|
|
UBS Global Equity Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
504,742 |
|
|
$ |
7,265,598 |
|
|
|
9,628 |
|
|
$ |
134,431 |
|
|
Shares repurchased |
|
|
(3,494,615 |
) |
|
|
(50,125,614 |
) |
|
|
(144,727 |
) |
|
|
(1,994,547 |
) |
|
Shares converted from Class B to Class A |
|
|
440,377 |
|
|
|
6,195,832 |
|
|
|
(450,862 |
) |
|
|
(6,195,832 |
) |
|
Dividends reinvested |
|
|
96,516 |
|
|
|
1,399,479 |
|
|
|
803 |
|
|
|
11,422 |
|
|
Net decrease |
|
|
(2,452,980 |
) |
|
$ |
(35,264,705 |
) |
|
|
(585,158 |
) |
|
$ |
(8,044,526 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
85,773 |
|
|
$ |
1,193,616 |
|
|
|
4,603,507 |
|
|
$ |
66,234,157 |
|
|
Shares repurchased |
|
|
(1,107,265 |
) |
|
|
(15,322,502 |
) |
|
|
(7,023,160 |
) |
|
|
(104,671,796 |
) |
|
Dividends reinvested |
|
|
16,938 |
|
|
|
239,335 |
|
|
|
145,622 |
|
|
|
2,150,831 |
|
|
Net decrease |
|
|
(1,004,554 |
) |
|
$ |
(13,889,551 |
) |
|
|
(2,274,031 |
) |
|
$ |
(36,286,808 |
) |
|
UBS International Equity Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
323,243 |
|
|
$ |
3,854,557 |
|
|
|
10,466 |
|
|
$ |
127,568 |
|
|
Shares repurchased |
|
|
(557,978 |
) |
|
|
(6,726,775 |
) |
|
|
(8,252 |
) |
|
|
(93,478 |
) |
|
Shares converted from Class B to Class A |
|
|
28,610 |
|
|
|
346,130 |
|
|
|
(28,962 |
) |
|
|
(346,130 |
) |
|
Dividends reinvested |
|
|
107,043 |
|
|
|
1,270,596 |
|
|
|
2,423 |
|
|
|
28,499 |
|
|
Net decrease |
|
|
(99,082 |
) |
|
$ |
(1,255,492 |
) |
|
|
(24,325 |
) |
|
$ |
(283,541 |
) |
|
231
The UBS FundsNotes to financial statements
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
59,135 |
|
|
$ |
684,396 |
|
|
|
8,197,482 |
|
|
$ |
98,309,568 |
|
|
Shares repurchased |
|
|
(90,644 |
) |
|
|
(1,063,565 |
) |
|
|
(9,217,288 |
) |
|
|
(113,371,879 |
) |
|
Dividends reinvested |
|
|
10,126 |
|
|
|
118,068 |
|
|
|
844,434 |
|
|
|
10,082,544 |
|
|
Net decrease |
|
|
(21,383 |
) |
|
$ |
(261,101 |
) |
|
|
(175,372 |
) |
|
$ |
(4,979,767 |
) |
|
UBS U.S. Equity Alpha Fund
|
|
Class A |
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
18,528,407 |
|
|
$ |
193,873,168 |
|
|
|
4,161,711 |
|
|
$ |
43,341,238 |
|
|
|
467,729 |
|
|
$ |
5,100,472 |
|
|
Shares repurchased |
|
|
(2,323,800 |
) |
|
|
(25,191,910 |
) |
|
|
(446,483 |
) |
|
|
(4,676,681 |
) |
|
|
(1 |
) |
|
|
(11 |
) |
|
Dividends reinvested |
|
|
21,428 |
|
|
|
232,063 |
|
|
|
2,804 |
|
|
|
30,339 |
|
|
|
24 |
|
|
|
262 |
|
|
Net increase |
|
|
16,226,035 |
|
|
$ |
168,913,321 |
|
|
|
3,718,032 |
|
|
$ |
38,694,896 |
|
|
|
467,752 |
|
|
$ |
5,100,723 |
|
|
UBS U.S. Large Cap Equity Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
4,300,640 |
|
|
$ |
85,817,295 |
|
|
|
7,429 |
|
|
$ |
142,594 |
|
|
Shares repurchased |
|
|
(1,910,313 |
) |
|
|
(38,475,464 |
) |
|
|
(9,550 |
) |
|
|
(184,230 |
) |
|
Shares converted from Class B to Class A |
|
|
12,299 |
|
|
|
244,971 |
|
|
|
(12,589 |
) |
|
|
(244,971 |
) |
|
Dividends reinvested |
|
|
180,554 |
|
|
|
3,573,169 |
|
|
|
1,387 |
|
|
|
26,879 |
|
|
Net increase (decrease) |
|
|
2,583,180 |
|
|
$ |
51,159,971 |
|
|
|
(13,323 |
) |
|
$ |
(259,728 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
222,217 |
|
|
$ |
4,269,324 |
|
|
|
16,946,562 |
|
|
$ |
341,017,163 |
|
|
Shares repurchased |
|
|
(58,531 |
) |
|
|
(1,144,923 |
) |
|
|
(8,746,010 |
) |
|
|
(176,494,034 |
) |
|
Dividends reinvested |
|
|
13,801 |
|
|
|
267,332 |
|
|
|
1,172,194 |
|
|
|
23,443,881 |
|
|
Net increase |
|
|
177,487 |
|
|
$ |
3,391,733 |
|
|
|
9,372,746 |
|
|
$ |
187,967,010 |
|
|
UBS U.S. Large Cap Growth Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
503,361 |
|
|
$ |
5,122,977 |
|
|
|
4,684 |
|
|
$ |
44,200 |
|
|
Shares repurchased |
|
|
(405,356 |
) |
|
|
(3,973,752 |
) |
|
|
(5,439 |
) |
|
|
(51,198 |
) |
|
Shares converted from Class B to Class A |
|
|
22,966 |
|
|
|
227,581 |
|
|
|
(23,833 |
) |
|
|
(227,581 |
) |
|
Dividends reinvested |
|
|
395 |
|
|
|
3,927 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) |
|
|
121,366 |
|
|
$ |
1,380,733 |
|
|
|
(24,588 |
) |
|
$ |
(234,579 |
) |
|
232
The UBS FundsNotes to financial statements
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
15,712 |
|
|
$ |
143,489 |
|
|
|
5,678,333 |
|
|
$ |
59,284,208 |
|
|
Shares repurchased |
|
|
(15,064 |
) |
|
|
(144,014 |
) |
|
|
(496,580 |
) |
|
|
(5,174,040 |
) |
|
Dividends reinvested |
|
|
|
|
|
|
|
|
|
|
1,016 |
|
|
|
10,323 |
|
|
Net increase (decrease) |
|
|
648 |
|
|
$ |
(525 |
) |
|
|
5,182,769 |
|
|
$ |
54,120,491 |
|
|
UBS U.S. Large Cap Value Equity Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
244,851 |
|
|
$ |
2,746,516 |
|
|
|
24,037 |
|
|
$ |
263,300 |
|
|
Shares repurchased |
|
|
(1,473,691 |
) |
|
|
(16,453,754 |
) |
|
|
(32,051 |
) |
|
|
(350,388 |
) |
|
Shares converted from Class B to Class A |
|
|
97,753 |
|
|
|
1,096,913 |
|
|
|
(99,219 |
) |
|
|
(1,096,913 |
) |
|
Dividends reinvested |
|
|
814,426 |
|
|
|
8,877,242 |
|
|
|
9,030 |
|
|
|
97,430 |
|
|
Net decrease |
|
|
(316,661 |
) |
|
$ |
(3,733,083 |
) |
|
|
(98,203 |
) |
|
$ |
(1,086,571 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
82,435 |
|
|
$ |
911,614 |
|
|
|
253,679 |
|
|
$ |
2,867,407 |
|
|
Shares repurchased |
|
|
(318,417 |
) |
|
|
(3,459,159 |
) |
|
|
(219,237 |
) |
|
|
(2,493,864 |
) |
|
Dividends reinvested |
|
|
112,897 |
|
|
|
1,210,256 |
|
|
|
62,804 |
|
|
|
686,451 |
|
|
Net increase (decrease) |
|
|
(123,085 |
) |
|
$ |
(1,337,289 |
) |
|
|
97,246 |
|
|
$ |
1,059,994 |
|
|
UBS U.S. Mid Cap Growth Equity Fund
|
|
Class A |
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
40,544 |
|
|
$ |
399,944 |
|
|
|
1,524 |
|
|
$ |
15,501 |
|
|
|
2 |
|
|
$ |
20 |
|
|
Shares repurchased |
|
|
(33,879 |
) |
|
|
(329,942 |
) |
|
|
(1,098 |
) |
|
|
(10,985 |
) |
|
|
(3 |
) |
|
|
(31 |
) |
|
Dividends reinvested |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
608 |
|
|
|
6,100 |
|
|
Net increase |
|
|
6,665 |
|
|
$ |
70,002 |
|
|
|
426 |
|
|
$ |
4,516 |
|
|
|
607 |
|
|
$ |
6,089 |
|
|
UBS U.S. Small Cap Growth Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
2,596,313 |
|
|
$ |
38,518,444 |
|
|
|
3,014 |
|
|
$ |
42,736 |
|
|
Shares repurchased |
|
|
(4,235,057 |
) |
|
|
(63,686,920 |
) |
|
|
(79,064 |
) |
|
|
(1,114,640 |
) |
|
Shares converted from Class B to Class A |
|
|
209,503 |
|
|
|
3,100,512 |
|
|
|
(218,037 |
) |
|
|
(3,100,512 |
) |
|
Dividends reinvested |
|
|
268,311 |
|
|
|
3,903,931 |
|
|
|
9,444 |
|
|
|
131,933 |
|
|
Net decrease |
|
|
(1,160,930 |
) |
|
$ |
(18,164,033 |
) |
|
|
(284,643 |
) |
|
$ |
(4,040,483 |
) |
|
233
The UBS FundsNotes to financial statements
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
19,907 |
|
|
$ |
289,376 |
|
|
|
5,214,735 |
|
|
$ |
79,695,818 |
|
|
Shares repurchased |
|
|
(119,669 |
) |
|
|
(1,693,978 |
) |
|
|
(5,539,837 |
) |
|
|
(85,846,554 |
) |
|
Dividends reinvested |
|
|
17,265 |
|
|
|
240,842 |
|
|
|
548,275 |
|
|
|
8,185,749 |
|
|
Net increase (decrease) |
|
|
(82,497 |
) |
|
$ |
(1,163,760 |
) |
|
|
223,173 |
|
|
$ |
2,035,013 |
|
|
UBS U.S. Absolute Return Bond Fund
|
|
Class A |
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
14,929,111 |
|
|
$ |
151,842,876 |
|
|
|
1,770,795 |
|
|
$ |
18,003,867 |
|
|
|
6,665,800 |
|
|
$ |
67,709,006 |
|
|
Shares repurchased |
|
|
(11,202,346 |
) |
|
|
(113,847,734 |
) |
|
|
(1,166,203 |
) |
|
|
(11,839,127 |
) |
|
|
(4,708,300 |
) |
|
|
(47,783,672 |
) |
|
Dividends reinvested |
|
|
875,978 |
|
|
|
8,848,267 |
|
|
|
115,432 |
|
|
|
1,165,607 |
|
|
|
936,879 |
|
|
|
9,469,617 |
|
|
Net increase |
|
|
4,602,743 |
|
|
$ |
46,843,409 |
|
|
|
720,024 |
|
|
$ |
7,330,347 |
|
|
|
2,894,379 |
|
|
$ |
29,394,951 |
|
|
UBS Global Bond Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
560,582 |
|
|
$ |
5,372,560 |
|
|
|
3,408 |
|
|
$ |
32,715 |
|
|
Shares repurchased |
|
|
(755,625 |
) |
|
|
(7,222,959 |
) |
|
|
(7,194 |
) |
|
|
(68,840 |
) |
|
Shares converted from Class B to Class A |
|
|
18,153 |
|
|
|
174,944 |
|
|
|
(18,115 |
) |
|
|
(174,944 |
) |
|
Dividends reinvested |
|
|
37,868 |
|
|
|
361,495 |
|
|
|
571 |
|
|
|
5,469 |
|
|
Net decrease |
|
|
(139,022 |
) |
|
$ |
(1,313,960 |
) |
|
|
(21,330 |
) |
|
$ |
(205,600 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
16,557 |
|
|
$ |
158,560 |
|
|
|
5,244,536 |
|
|
$ |
55,591,313 |
|
|
Shares repurchased |
|
|
(116,251 |
) |
|
|
(1,106,312 |
) |
|
|
(2,847,139 |
) |
|
|
(30,105,870 |
) |
|
Dividends reinvested |
|
|
2,426 |
|
|
|
23,100 |
|
|
|
230,897 |
|
|
|
2,443,856 |
|
|
Net increase (decrease) |
|
|
(97,268 |
) |
|
$ |
(924,652 |
) |
|
|
2,628,294 |
|
|
$ |
27,929,299 |
|
|
UBS High Yield Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
1,490,533 |
|
|
$ |
10,396,916 |
|
|
|
85,830 |
|
|
$ |
603,764 |
|
|
Shares repurchased |
|
|
(2,748,818 |
) |
|
|
(19,294,928 |
) |
|
|
(54,659 |
) |
|
|
(381,508 |
) |
|
Shares converted from Class B to Class A |
|
|
60,378 |
|
|
|
422,360 |
|
|
|
(60,346 |
) |
|
|
(422,360 |
) |
|
Dividends reinvested |
|
|
279,270 |
|
|
|
1,952,535 |
|
|
|
11,118 |
|
|
|
77,802 |
|
|
Net decrease |
|
|
(918,637 |
) |
|
$ |
(6,523,117 |
) |
|
|
(18,057 |
) |
|
$ |
(122,302 |
) |
|
234
The UBS FundsNotes to financial statements
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
151,233 |
|
|
$ |
1,060,575 |
|
|
|
2,945,820 |
|
|
$ |
20,758,938 |
|
|
Shares repurchased |
|
|
(344,292 |
) |
|
|
(2,417,167 |
) |
|
|
(1,319,877 |
) |
|
|
(9,309,369 |
) |
|
Dividends reinvested |
|
|
61,519 |
|
|
|
430,538 |
|
|
|
466,270 |
|
|
|
3,279,636 |
|
|
Net increase (decrease) |
|
|
(131,540 |
) |
|
$ |
(926,054 |
) |
|
|
2,092,213 |
|
|
$ |
14,729,205 |
|
|
UBS U.S. Bond Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
729,430 |
|
|
$ |
7,654,158 |
|
|
|
662 |
|
|
$ |
6,983 |
|
|
Shares repurchased |
|
|
(1,062,535 |
) |
|
|
(11,157,475 |
) |
|
|
(6,508 |
) |
|
|
(68,610 |
) |
|
Shares converted from Class B to Class A |
|
|
31,854 |
|
|
|
335,863 |
|
|
|
(31,826 |
) |
|
|
(335,863 |
) |
|
Dividends reinvested |
|
|
61,452 |
|
|
|
644,355 |
|
|
|
1,221 |
|
|
|
12,821 |
|
|
Net decrease |
|
|
(239,799 |
) |
|
$ |
(2,523,099 |
) |
|
|
(36,451 |
) |
|
$ |
(384,669 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
26,853 |
|
|
$ |
281,430 |
|
|
|
7,826,619 |
|
|
$ |
82,039,129 |
|
|
Shares repurchased |
|
|
(33,323 |
) |
|
|
(348,376 |
) |
|
|
(3,004,349 |
) |
|
|
(31,544,554 |
) |
|
Dividends reinvested |
|
|
3,320 |
|
|
|
34,779 |
|
|
|
501,194 |
|
|
|
5,258,293 |
|
|
Net increase (decrease) |
|
|
(3,150 |
) |
|
$ |
(32,167 |
) |
|
|
5,323,464 |
|
|
$ |
55,752,868 |
|
|
For the year ended June 30, 2006, transactions in shares of beneficial interest for each of the Funds were as follows:
UBS Dynamic Alpha Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
128,078,469 |
|
|
$ |
1,389,322,850 |
|
|
|
1,828,083 |
|
|
$ |
19,652,310 |
|
|
Shares repurchased |
|
|
(19,812,434 |
) |
|
|
(215,331,923 |
) |
|
|
(303,794 |
) |
|
|
(3,249,313 |
) |
|
Shares converted from Class B to Class A |
|
|
247,266 |
|
|
|
2,658,305 |
|
|
|
(248,477 |
) |
|
|
(2,658,305 |
) |
|
Dividends reinvested |
|
|
794,100 |
|
|
|
8,560,404 |
|
|
|
7,912 |
|
|
|
85,128 |
|
|
Net increase |
|
|
109,307,401 |
|
|
$ |
1,185,209,636 |
|
|
|
1,283,724 |
|
|
$ |
13,829,820 |
|
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
31,040,840 |
|
|
$ |
334,455,043 |
|
|
|
23,122,252 |
|
|
$ |
252,321,581 |
|
|
Shares repurchased |
|
|
(3,628,976 |
) |
|
|
(39,225,551 |
) |
|
|
(2,264,553 |
) |
|
|
(24,882,462 |
) |
|
Dividends reinvested |
|
|
138,072 |
|
|
|
1,484,271 |
|
|
|
118,432 |
|
|
|
1,277,885 |
|
|
Net increase |
|
|
27,549,936 |
|
|
$ |
296,713,763 |
|
|
|
20,976,131 |
|
|
$ |
228,717,004 |
|
|
235
The UBS FundsNotes to financial statements
UBS Global Allocation Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
62,903,880 |
|
|
$ |
865,736,142 |
|
|
|
1,491,471 |
|
|
$ |
20,139,283 |
|
|
Shares repurchased |
|
|
(30,065,197 |
) |
|
|
(413,871,317 |
) |
|
|
(1,655,143 |
) |
|
|
(22,377,744 |
) |
|
Shares converted from Class B to Class A |
|
|
2,541,296 |
|
|
|
34,905,059 |
|
|
|
(2,591,178 |
) |
|
|
(34,905,059 |
) |
|
Dividends reinvested |
|
|
7,117,515 |
|
|
|
95,516,626 |
|
|
|
548,472 |
|
|
|
7,256,282 |
|
|
Net increase (decrease) |
|
|
42,497,494 |
|
|
$ |
582,286,510 |
|
|
|
(2,206,378 |
) |
|
$ |
(29,887,238 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
16,719,366 |
|
|
$ |
225,655,967 |
|
|
|
10,854,603 |
|
|
$ |
150,535,987 |
|
|
Shares repurchased |
|
|
(12,243,723 |
) |
|
|
(165,380,957 |
) |
|
|
(5,820,329 |
) |
|
|
(81,221,682 |
) |
|
Dividends reinvested |
|
|
3,404,722 |
|
|
|
44,942,397 |
|
|
|
1,539,235 |
|
|
|
20,933,597 |
|
|
Net increase |
|
|
7,880,365 |
|
|
$ |
105,217,407 |
|
|
|
6,573,509 |
|
|
$ |
90,247,902 |
|
|
UBS Global Equity Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
1,396,975 |
|
|
$ |
17,595,879 |
|
|
|
24,111 |
|
|
$ |
287,187 |
|
|
Shares repurchased |
|
|
(4,721,111 |
) |
|
|
(60,109,715 |
) |
|
|
(1,231,208 |
) |
|
|
(14,756,174 |
) |
|
Shares converted from Class B to Class A |
|
|
7,111,962 |
|
|
|
86,168,577 |
|
|
|
(7,279,324 |
) |
|
|
(86,168,577 |
) |
|
Dividends reinvested |
|
|
81,168 |
|
|
|
1,015,414 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) |
|
|
3,868,994 |
|
|
$ |
44,670,155 |
|
|
|
(8,486,421 |
) |
|
$ |
(100,637,564 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
160,698 |
|
|
$ |
1,945,401 |
|
|
|
5,025,750 |
|
|
$ |
64,061,617 |
|
|
Shares repurchased |
|
|
(1,724,053 |
) |
|
|
(20,983,395 |
) |
|
|
(4,904,221 |
) |
|
|
(63,295,653 |
) |
|
Dividends reinvested |
|
|
|
|
|
|
|
|
|
|
105,660 |
|
|
|
1,345,053 |
|
|
Net increase (decrease) |
|
|
(1,563,355 |
) |
|
$ |
(19,037,994 |
) |
|
|
227,189 |
|
|
$ |
2,111,017 |
|
|
UBS International Equity Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
971,667 |
|
|
$ |
10,111,325 |
|
|
|
15,235 |
|
|
$ |
161,759 |
|
|
Shares repurchased |
|
|
(542,890 |
) |
|
|
(5,730,867 |
) |
|
|
(12,924 |
) |
|
|
(138,242 |
) |
|
Shares converted from Class B to Class A |
|
|
30,377 |
|
|
|
309,728 |
|
|
|
(30,868 |
) |
|
|
(309,728 |
) |
|
Dividends reinvested |
|
|
85,840 |
|
|
|
875,565 |
|
|
|
2,373 |
|
|
|
23,936 |
|
|
Net increase (decrease) |
|
|
544,994 |
|
|
$ |
5,565,751 |
|
|
|
(26,184 |
) |
|
$ |
(262,275 |
) |
|
236
The UBS FundsNotes to financial statements
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
80,175 |
|
|
$ |
837,960 |
|
|
|
7,425,136 |
|
|
$ |
79,436,543 |
|
|
Shares repurchased |
|
|
(57,952 |
) |
|
|
(593,700 |
) |
|
|
(6,502,467 |
) |
|
|
(69,837,729 |
) |
|
Dividends reinvested |
|
|
6,566 |
|
|
|
65,849 |
|
|
|
564,394 |
|
|
|
5,796,333 |
|
|
Net increase |
|
|
28,789 |
|
|
$ |
310,109 |
|
|
|
1,487,063 |
|
|
$ |
15,395,147 |
|
|
UBS U.S. Large Cap Equity Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
4,162,891 |
|
|
$ |
75,756,826 |
|
|
|
50,395 |
|
|
$ |
893,374 |
|
|
Shares repurchased |
|
|
(896,850 |
) |
|
|
(16,440,209 |
) |
|
|
(6,298 |
) |
|
|
(110,259 |
) |
|
Shares converted from Class B to Class A |
|
|
48,664 |
|
|
|
873,574 |
|
|
|
(49,693 |
) |
|
|
(873,574 |
) |
|
Dividends reinvested |
|
|
77,658 |
|
|
|
1,407,165 |
|
|
|
944 |
|
|
|
16,797 |
|
|
Net increase (decrease) |
|
|
3,392,363 |
|
|
$ |
61,597,356 |
|
|
|
(4,652 |
) |
|
$ |
(73,662 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
225,170 |
|
|
$ |
4,010,894 |
|
|
|
16,056,543 |
|
|
$ |
295,877,335 |
|
|
Shares repurchased |
|
|
(38,503 |
) |
|
|
(692,110 |
) |
|
|
(8,231,439 |
) |
|
|
(149,088,431 |
) |
|
Dividends reinvested |
|
|
5,388 |
|
|
|
95,856 |
|
|
|
569,596 |
|
|
|
10,417,919 |
|
|
Net increase |
|
|
192,055 |
|
|
$ |
3,414,640 |
|
|
|
8,394,700 |
|
|
$ |
157,206,823 |
|
|
UBS U.S. Large Cap Growth Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
575,000 |
|
|
$ |
5,261,963 |
|
|
|
29,874 |
|
|
$ |
267,760 |
|
|
Shares repurchased |
|
|
(237,052 |
) |
|
|
(2,154,474 |
) |
|
|
(6,129 |
) |
|
|
(51,853 |
) |
|
Shares converted from Class B to Class A |
|
|
47,337 |
|
|
|
414,391 |
|
|
|
(48,647 |
) |
|
|
(414,391 |
) |
|
Dividends reinvested |
|
|
113 |
|
|
|
1,082 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) |
|
|
385,398 |
|
|
$ |
3,522,962 |
|
|
|
(24,902 |
) |
|
$ |
(198,484 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
76,410 |
|
|
$ |
688,459 |
|
|
|
378,505 |
|
|
$ |
3,590,977 |
|
|
Shares repurchased |
|
|
(31,861 |
) |
|
|
(286,655 |
) |
|
|
(213,933 |
) |
|
|
(2,083,444 |
) |
|
Dividends reinvested |
|
|
|
|
|
|
|
|
|
|
412 |
|
|
|
4,014 |
|
|
Net increase |
|
|
44,549 |
|
|
$ |
401,804 |
|
|
|
164,984 |
|
|
$ |
1,511,547 |
|
|
237
The UBS FundsNotes to financial statements
UBS U.S. Large Cap Value Equity Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
388,095 |
|
|
$ |
4,108,673 |
|
|
|
16,700 |
|
|
$ |
175,261 |
|
|
Shares repurchased |
|
|
(1,693,252 |
) |
|
|
(18,009,583 |
) |
|
|
(86,173 |
) |
|
|
(904,307 |
) |
|
Shares converted from Class B to Class A |
|
|
245,309 |
|
|
|
2,618,270 |
|
|
|
(249,359 |
) |
|
|
(2,618,270 |
) |
|
Dividends reinvested |
|
|
979,619 |
|
|
|
9,962,730 |
|
|
|
24,425 |
|
|
|
245,715 |
|
|
Net decrease |
|
|
(80,229 |
) |
|
$ |
(1,319,910 |
) |
|
|
(294,407 |
) |
|
$ |
(3,101,601 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
37,589 |
|
|
$ |
393,836 |
|
|
|
205,542 |
|
|
$ |
2,186,723 |
|
|
Shares repurchased |
|
|
(353,585 |
) |
|
|
(3,677,575 |
) |
|
|
(140,354 |
) |
|
|
(1,507,222 |
) |
|
Dividends reinvested |
|
|
159,245 |
|
|
|
1,595,633 |
|
|
|
65,013 |
|
|
|
663,136 |
|
|
Net increase (decrease) |
|
|
(156,751 |
) |
|
$ |
(1,688,106 |
) |
|
|
130,201 |
|
|
$ |
1,342,637 |
|
|
UBS U.S. Mid Cap Growth Equity Fund
|
|
Class A |
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
37,333 |
|
|
$ |
385,174 |
|
|
|
6,969 |
|
|
$ |
71,324 |
|
|
|
500,001 |
|
|
$ |
5,000,010 |
|
|
Shares repurchased |
|
|
(20,516 |
) |
|
|
(212,486 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase |
|
|
16,817 |
|
|
$ |
172,688 |
|
|
|
6,969 |
|
|
$ |
71,324 |
|
|
|
500,001 |
|
|
$ |
5,000,010 |
|
|
UBS U.S. Small Cap Growth Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
4,491,291 |
|
|
$ |
65,274,814 |
|
|
|
17,046 |
|
|
$ |
237,916 |
|
|
Shares repurchased |
|
|
(2,638,851 |
) |
|
|
(38,341,212 |
) |
|
|
(101,823 |
) |
|
|
(1,423,996 |
) |
|
Shares converted from Class B to Class A |
|
|
249,854 |
|
|
|
3,687,653 |
|
|
|
(258,086 |
) |
|
|
(3,687,653 |
) |
|
Dividends reinvested |
|
|
312,044 |
|
|
|
4,353,008 |
|
|
|
23,758 |
|
|
|
320,974 |
|
|
Net increase (decrease) |
|
|
2,414,338 |
|
|
$ |
34,974,263 |
|
|
|
(319,105 |
) |
|
$ |
(4,552,759 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
32,009 |
|
|
$ |
447,802 |
|
|
|
11,429,781 |
|
|
$ |
167,661,096 |
|
|
Shares repurchased |
|
|
(109,350 |
) |
|
|
(1,541,864 |
) |
|
|
(4,217,628 |
) |
|
|
(62,419,417 |
) |
|
Dividends reinvested |
|
|
24,665 |
|
|
|
332,733 |
|
|
|
535,598 |
|
|
|
7,637,633 |
|
|
Net increase (decrease) |
|
|
(52,676 |
) |
|
$ |
(761,329 |
) |
|
|
7,747,751 |
|
|
$ |
112,879,312 |
|
|
238
The UBS FundsNotes to financial statements
UBS Absolute Return Bond Fund
|
|
Class A |
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
18,921,598 |
|
|
$ |
190,630,308 |
|
|
|
2,101,902 |
|
|
$ |
21,191,655 |
|
|
|
21,840,716 |
|
|
$ |
219,572,891 |
|
|
Shares repurchased |
|
|
(8,935,032 |
) |
|
|
(90,035,339 |
) |
|
|
(839,168 |
) |
|
|
(8,434,110 |
) |
|
|
(1,407,032 |
) |
|
|
(14,216,875 |
) |
|
Dividends reinvested |
|
|
451,836 |
|
|
|
4,522,668 |
|
|
|
55,894 |
|
|
|
559,167 |
|
|
|
442,679 |
|
|
|
4,436,608 |
|
|
Net increase |
|
|
10,438,402 |
|
|
$ |
105,117,637 |
|
|
|
1,318,628 |
|
|
$ |
13,316,712 |
|
|
|
20,876,363 |
|
|
$ |
209,792,624 |
|
|
UBS Global Bond Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
545,080 |
|
|
$ |
5,240,870 |
|
|
|
3,088 |
|
|
$ |
29,383 |
|
|
Shares repurchased |
|
|
(725,048 |
) |
|
|
(6,931,243 |
) |
|
|
(20,862 |
) |
|
|
(199,014 |
) |
|
Shares converted from Class B to Class A |
|
|
56,802 |
|
|
|
547,406 |
|
|
|
(56,686 |
) |
|
|
(547,406 |
) |
|
Dividends reinvested |
|
|
61,472 |
|
|
|
582,841 |
|
|
|
1,473 |
|
|
|
13,990 |
|
|
Net decrease |
|
|
(61,694 |
) |
|
$ |
(560,126 |
) |
|
|
(72,987 |
) |
|
$ |
(703,047 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
16,285 |
|
|
$ |
155,446 |
|
|
|
4,946,965 |
|
|
$ |
52,158,835 |
|
|
Shares repurchased |
|
|
(80,174 |
) |
|
|
(769,544 |
) |
|
|
(2,314,779 |
) |
|
|
(24,469,531 |
) |
|
Dividends reinvested |
|
|
5,864 |
|
|
|
55,436 |
|
|
|
198,026 |
|
|
|
2,078,171 |
|
|
Net increase (decrease) |
|
|
(58,025 |
) |
|
$ |
(558,662 |
) |
|
|
2,830,212 |
|
|
$ |
29,767,475 |
|
|
UBS High Yield Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
1,045,985 |
|
|
$ |
7,353,436 |
|
|
|
162,614 |
|
|
$ |
1,141,616 |
|
|
Shares repurchased |
|
|
(3,492,760 |
) |
|
|
(24,556,100 |
) |
|
|
(163,377 |
) |
|
|
(1,153,500 |
) |
|
Shares converted from Class B to Class A |
|
|
200,458 |
|
|
|
1,410,267 |
|
|
|
(200,411 |
) |
|
|
(1,410,267 |
) |
|
Dividends reinvested |
|
|
331,995 |
|
|
|
2,323,759 |
|
|
|
11,386 |
|
|
|
79,749 |
|
|
Net decrease |
|
|
(1,914,322 |
) |
|
$ |
(13,468,638 |
) |
|
|
(189,788 |
) |
|
$ |
(1,342,402 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
74,596 |
|
|
$ |
525,427 |
|
|
|
2,652,297 |
|
|
$ |
18,805,721 |
|
|
Shares repurchased |
|
|
(531,985 |
) |
|
|
(3,737,732 |
) |
|
|
(2,472,637 |
) |
|
|
(17,412,621 |
) |
|
Dividends reinvested |
|
|
70,445 |
|
|
|
493,321 |
|
|
|
369,919 |
|
|
|
2,600,408 |
|
|
Net increase (decrease) |
|
|
(386,944 |
) |
|
$ |
(2,718,984 |
) |
|
|
549,579 |
|
|
$ |
3,993,508 |
|
|
239
The UBS FundsNotes to financial statements
UBS U.S. Bond Fund
|
|
Class A |
|
Class B |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
2,092,757 |
|
|
$ |
21,892,814 |
|
|
|
2,714 |
|
|
$ |
28,183 |
|
|
Shares repurchased |
|
|
(2,387,338 |
) |
|
|
(24,802,696 |
) |
|
|
(30,768 |
) |
|
|
(322,979 |
) |
|
Shares converted from Class B to Class A |
|
|
46,616 |
|
|
|
487,276 |
|
|
|
(46,573 |
) |
|
|
(487,276 |
) |
|
Dividends reinvested |
|
|
98,002 |
|
|
|
1,026,053 |
|
|
|
2,392 |
|
|
|
25,116 |
|
|
Net decrease |
|
|
(149,963 |
) |
|
$ |
(1,396,553 |
) |
|
|
(72,235 |
) |
|
$ |
(756,956 |
) |
|
|
|
Class C |
|
Class Y |
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares sold |
|
|
20,643 |
|
|
$ |
215,872 |
|
|
|
4,566,668 |
|
|
$ |
47,755,530 |
|
|
Shares repurchased |
|
|
(68,731 |
) |
|
|
(724,302 |
) |
|
|
(4,908,628 |
) |
|
|
(51,692,880 |
) |
|
Dividends reinvested |
|
|
4,179 |
|
|
|
43,684 |
|
|
|
396,907 |
|
|
|
4,153,422 |
|
|
Net increase (decrease) |
|
|
(43,909 |
) |
|
$ |
(464,746 |
) |
|
|
54,947 |
|
|
$ |
216,072 |
|
|
11. Subsequent event
The UBS Dynamic Alpha Fund, UBS Global Allocation Fund, UBS Global Equity Fund, UBS International Equity Fund, UBS U.S. Large Cap Equity Fund, UBS U.S. Large Cap Growth Fund, UBS U.S. Large Cap Value Equity Fund, UBS U.S. Small Cap Growth Fund, UBS Global Bond Fund, UBS High Yield Fund and UBS U.S. Bond Fund will cease offering Class B shares (with exceptions for existing shareholders for exchanges or reinvesting dividends) effective on or about October 1, 2007. New or additional investments into Class B shares, including investments through an automatic investment plan, will not be permitted after September 28, 2007. Existing shareholders of Class B shares may: (i) continue as Class B shareholders; (ii) continue to reinvest dividends and distributions into Class B shares and (iii) exchange their Class B shares for Class B shares of other series of the UBS Family of Funds, as permitted by existing exchange privileges. For Class
B shares outstanding on October 1, 2007 and Class B shares acquired upon reinvestment of dividends or distributions or through exchanges after September 28, 2007, Class B share attributes, including the associated Rule 12b-1 plan service and distribution fees, contingent deferred sales charges and conversion features, as applicable, will continue.
240
The UBS FundsReport of Ernst & Young LLP, independent registered public accounting firm
The Board of Trustees and Shareholders of The UBS Funds
We have audited the accompanying statements of assets and liabilities of The UBS Funds (comprising, respectively, UBS Dynamic Alpha Fund, UBS Global Allocation Fund, UBS Global Equity Fund, UBS International Equity Fund, UBS U.S. Equity Alpha Fund, UBS U.S. Large Cap Equity Fund, UBS U.S. Large Cap Growth Fund, UBS U.S. Large Cap Value Equity Fund, UBS U.S. Mid Cap Growth Equity Fund, UBS U.S. Small Cap Growth Fund, UBS Absolute Return Bond Fund, UBS Global Bond Fund, UBS High Yield Fund and UBS U.S. Bond Fund) (collectively the "Funds"), including the schedules of investments, as of June 30, 2007, and the related statements of operations and changes in net assets and financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights b
ased on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.
Our procedures included confirmation of securities owned as of June 30, 2007, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective funds constituting The UBS Funds at June 30, 2007, and the results of their operations, the changes in their net assets and the financial highlights for each of the indicated periods, in conformity with U.S. generally accepted accounting principles.
New York, New York
August 24, 2007
241
The UBS FundsGeneral information (unaudited)
Quarterly Form N-Q portfolio
Each Fund will file its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the SEC's Web site at http://www.sec.gov. The Funds' Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC 0330. Additionally, you may obtain copies of Forms N-Q from the Funds upon request by calling 1-800-647 1568.
Proxy voting policies and procedures record
You may obtain a description of the Funds' (1) proxy voting policies, (2) proxy voting procedures and (3) information regarding how the Funds voted any proxies related to portfolio securities during the most recent 12-month period ended June 30, for which an SEC filing has been made without charge, upon request by contacting the Funds directly at 1-800-647 1568, online on the Funds' Web site: www.ubs.com/ubsglobalam-proxy, or on the EDGAR Database on the SEC's Web site (http://www.sec.gov).
242
The UBS FundsBoard approval of investment advisory agreements
At the meeting of the Board of Trustees (the "Board") of The UBS Funds (the "Trust"), held on June 5, 2007 (the "Meeting"), the Board, consisting entirely of Trustees who are not "interested persons" (as defined in the 1940 Act) of the Trust or UBS Global Asset Management (Americas) Inc. (the "Advisor") and its affiliates (together, the "Independent Trustees"), considered the continuation of the investment advisory agreements (the "Advisory Agreements") between the Trust and the Advisor for the UBS U.S. Bond Fund, UBS High Yield Fund, UBS U.S. Large Cap Equity Fund, UBS U.S. Large Cap Value Equity Fund, UBS U.S. Large Cap Growth Fund, UBS U.S. Small Cap Growth Fund, UBS Global Allocation Fund, UBS Global Equity Fund, UBS Global Bond Fund, UBS International Equity Fund, UBS Absolute Return Bond Fund, UBS Dynamic Alpha Fund and UBS U.S. Mid Cap Growth Equity Fund (each a "Fund," and together, the "Funds"). Prior to the Meeting, th
e Independent Trustees' counsel had sent to the Advisor a request detailing the information that the Independent Trustees wished to receive in connection with their consideration of the continuation of the Advisory Agreements. The Independent Trustees met with their independent counsel, as well as an independent consultant engaged by the Board to assist in the annual Advisory Agreement review process, on May 25, 2007 and June 4, 2007, to discuss the materials provided to them in response to the information request, including materials prepared by the Advisor, as well as reports prepared by Lipper Inc. ("Lipper Reports"), an independent statistical compilation company, providing comparative expense information on an actual and contractual basis and comparative performance information for the Funds. The Board also made reference to information and material that had been provided to the Independent Trustees throughout the year at quarterly Board meetings.
At the Meeting, the Board considered a number of factors in connection with their deliberations concerning the continuation of the Advisory Agreement for each Fund, including: (i) the nature, extent, and quality of the services provided by the Advisor to the Fund; (ii) the performance of the Fund and the Advisor; (iii) the Fund's expenses, costs of the services to be provided and profits to be realized by the Advisor and its affiliates from the relationship with the Fund; and (iv) whether economies of scale are realized by the Advisor with respect to the Fund, as it grows larger, and the extent to which the economies of scale are reflected in the level of the management fees charged.
Nature, extent, and quality of services. In considering the nature, extent, and quality of the services provided by the Advisor to a Fund, the Board reviewed the material presented by the Advisor describing the various services provided to each Fund. The Board noted that in addition to investment management services, the Advisor provides each Fund with operational, legal, and compliance support. The Board also considered the scope and depth of the Advisor's organization and the experience and expertise of the professionals currently providing investment management and other services to the Funds. The Board considered that the Advisor was a well-established investment management organization employing investment personnel with significant experience in the investment management industry. The Board also considered the Advisor's in-house research capabil
ities, as well as other research services available to it, including research services available to the Advisor as a result of securities transactions effected for the Funds and the Advisor's other investment management clients, and noted that the Advisor had extensive global research capabilities. The Board also evaluated the Advisor's portfolio management process for each Fund, including the use of risk management techniques and the proprietary technologies utilized to structure the Fund's portfolio. The Board noted that various presentations had been made by investment personnel at Board meetings throughout the year concerning the Funds' investment performance and investment strategies.
The Board also noted and discussed the services that the Advisor and its affiliates provide to the Funds under other agreements with the Trust including administration services provided by the Advisor, underwriting services provided by UBS Global Asset Management (US) Inc. ("UBS Global AM (US)"), and sub-transfer agency services provided by UBS Financial Services Inc. ("UBS Financial Services"). In connection with the non-investment management services, the Board also considered the quarterly reports that the Advisor provides to
243
The UBS FundsBoard approval of investment advisory agreements
the Board throughout the year pertaining to brokerage commissions, soft dollars, portfolio valuations, and Rule 12b-1 fees, among others. The Board also discussed the annual written compliance report from the Chief Compliance Officer and noted enhancements planned with respect to the compliance program. The Board noted the growth of Fund assets across the Fund complex. The Advisor described for the Board the portfolio management and research enhancements that had been undertaken over the previous year as a result of the increase in assets across the complex. After analyzing the services provided by the Advisor to each Fund, both quantitatively and qualitatively, including the impact of these services on investment performance, the Board concluded that the nature, extent, and quality of services provided to each Fund were consistent with the operational requirements of each Fund, and met the needs of the Fund's shareholders.
Performance. In evaluating the performance of each Fund, the Board analyzed the Lipper Reports, which compared the performance of each Fund with other funds in its respective peer universe over various time periods. In reviewing the Lipper Reports, the Board noted that the UBS U.S. Bond Fund, UBS U.S. Large Cap Equity Fund, UBS U.S. Large Cap Value Equity Fund, UBS U.S. Large Cap Growth Fund, UBS U.S. Mid Cap Growth Fund and UBS U.S. Small Cap Growth Fund had appeared in one of the top three performance quintiles for most applicable performance periods. The Board also noted that the UBS Global Allocation Fund had strong comparative one-year performance appearing in the second performance quintile for the one-year period. At the Board's request, the Advisor addressed the performance data for the UBS High Yield Fund, UBS Absolute Return Bond Fund, UBS D
ynamic Alpha Fund, UBS Global Equity Fund, UBS International Equity Fund, and UBS Global Bond Fund, each of which had appeared in one of the lower performance quintiles for the one-year period.
In explaining the performance of the UBS High Yield Fund, the Advisor discussed the investments in the issuers and the duration and credit strategies that had a negative impact on the Fund's performance in 2006. The Advisor also noted that unlike some of the funds in its peer universe, the UBS High Yield Fund did not invest in preferred securities, REITs, or other non-traditional asset classes, which affected its relative performance. The Board did note that the UBS High Yield Fund's performance compared more favorably to its peers over the longer performance periods.
The Advisor then discussed the factors that contributed to the UBS Absolute Return Bond Fund's performance by explaining that the Fund's negative duration stance had negatively impacted its short-term performance in comparison to its peer group. The Advisor discussed with the Board the Fund's strategy of delivering consistent absolute returns regardless of market conditions over time and noted that the Fund was ranked in the second performance quintile for the since inception period.
The Advisor also addressed the comparative performance for the UBS Dynamic Alpha Fund by explaining that due to the Fund's unique strategy, there was not an ideal Lipper peer universe for comparative performance purposes. The global flexible portfolio funds peer universe used for comparative performance information for the Fund consists of funds that utilize a goal of relative return, while the Fund is designed to provide absolute return over market cycles regardless of the market's direction. The Advisor explained that the Fund invests to limit market risk and thus is subject to less risk than the funds in its peer group and also noted that the Fund is less volatile than a majority of its peers. The Advisor stated that while the UBS Dynamic Alpha Fund underperformed for the one-year performance period, the Advisor believes that the Fund's strategy is intended to provide consistent absolute return over the long term.
In addressing the performance of the UBS Global Equity Fund and UBS International Equity Fund, the Advisor discussed the long-term investment strategy of each Fund and noted that each Fund is positioned with an emphasis on high quality large cap issuers. The Advisor stated that each of the UBS Global Equity Fund and
244
The UBS FundsBoard approval of investment advisory agreements
UBS International Equity Fund lagged the performance of the funds in its respective peer universe for the one-year performance period due, in part, to a smaller allocation of its investments to small- and mid-cap companies, which have performed well. The Advisor also noted that both Funds have continued to deliver strong risk-adjusted returns and are less volatile than many funds in their respective peer groups.
The Advisor also addressed the comparative performance of the UBS Global Bond Fund, which had performance that lagged the funds in its peer universe during the one-year performance period. The Advisor discussed the duration strategies and currency positioning that negatively impacted performance and discussed the Advisor's market outlook and strategies for the future. The Advisor noted that the Board approved changes to the UBS Global Bond Fund's strategy at the Board meeting held in March 2006, which provided the Fund with the flexibility to invest in the high yield debt and emerging markets debt asset classes. The Advisor stated that the Fund had begun to include non-investment grade holdings in its Portfolio which may increase the return potential of the Fund.
The Board concluded that the Advisor's explanations provided a sound basis for understanding the performance of each Fund that underperformed in comparison to its peer universe. The Board determined, after analyzing the performance data, that the performance of each Fund was acceptable as compared with relevant performance standards, given the investment strategies and risk profile of each Fund and the expectations of the shareholder base.
Fund fees and expenses. When considering the fees and expenses borne by each Fund, and the reasonableness of the management fees paid to the Advisor in light of the services provided to each Fund, the Board compared the fees charged by the Advisor to each Fund to fees charged to the funds in its peer group for comparable services, as provided in the Lipper Reports, on both an actual (taking into account expense limitation arrangements) and a contractual basis (assuming all funds in the peer expense group were similar in size to the respective Fund and also at various asset levels). In examining the Lipper Reports, and in reviewing comparative costs, it was noted that the results of such expense comparisons showed that the actual management fee rate for each Fund, except the UBS Absolute Return Bond Fund, UBS Dynamic Alpha Fund, UBS Global Allocation F
und and UBS U.S. Large Cap Equity Fund, was comparable to, or lower than, the Lipper median in its respective Lipper expense group. The Board also noted that each Fund, except UBS Dynamic Alpha Fund, UBS U.S. Mid Cap Growth Equity Fund, UBS U.S. Small Cap Growth Fund and UBS Global Bond Fund, had a contractual fee rate comparable to the funds in its respective expense group. In addition, the Board reviewed the actual total expenses of each Fund and noted that each Fund, except UBS Dynamic Alpha Fund, had total expenses that compared favorably to the funds in its respective expense group and that UBS Dynamic Alpha Fund's total expenses were not appreciably higher than its expense group median.
The Board noted that the management fee for the UBS Dynamic Alpha Fund was higher than many funds in its Lipper expense group on both an actual and contractual basis, which led the Board to discuss this Fund's management fee at some length with the Advisor. The Advisor explained that the complexity of the Fund's investment strategy was the reason that the Fund's management fee was higher than the management fees of funds in its expense group. The Advisor explained that the Fund is designed to provide absolute return over market cycles regardless of the market's direction. The Advisor explained that in order to achieve its absolute return goal, the Fund uses sophisticated derivatives techniques and is the only fund in its peer group that actively utilized short positions for individual markets, currencies and securities. The Advisor also stated that the Fund is continually adding additional types of investments as sources of retu
rn and that there is continual innovation with respect to the strategies, tools and techniques utilized to manage the Fund. The Advisor stated that employing these sophisticated management techniques make the Fund more expensive to manage than other global allocation funds. The Board noted that due to the UBS Dynamic Alpha Fund's significant asset growth in the past year, the Fund had reached the final breakpoint level in its management
245
The UBS FundsBoard approval of investment advisory agreements
fee breakpoint schedule. At the request of the Board, the Advisor agreed to revise the UBS Dynamic Alpha Fund's management fee breakpoint schedule to include an additional breakpoint for assets over $4 billion.
The Board also noted that the actual management fee for the UBS U.S. Large Cap Equity Fund was higher than the management fee of several of the funds in its Lipper expense group. The Board, however, determined that the UBS U.S. Large Cap Equity Fund's management fee was reasonable considering that it was not appreciably higher than its Lipper expense group median, the Fund was in the second quintile in its expense group with respect to total expenses, and the Fund's performance compared favorably to its peers for all performance periods.
The Board also reviewed the management fee of the UBS Global Allocation Fund and noted that the actual management fee for the UBS Global Allocation Fund was only four basis points higher than the median in the Fund's peer group. The Board also considered that as the UBS Global Allocation Fund's assets continue to grow, the effective management fee, taking into account the management fee breakpoints, should decrease, which may result in the Fund's management fee being more competitive with its peers.
The Board then discussed the fees and expenses for the UBS Global Bond Fund. The Board noted that, while the Fund was in the fourth quintile of its Lipper expense group with respect to contractual management fees, the Fund's actual management fee was less than one basis point greater than the median for the Fund's peer group. The Board also noted that the UBS Global Bond Fund appeared in the first quintile of its Lipper expense group with respect to its total expenses.
The Board next addressed the management fees of the UBS U.S. Mid Cap Growth Equity Fund and UBS U.S. Small Cap Growth Fund noting that while each Fund appeared in the fourth quintile of its respective Lipper expense group with respect to contractual management fees, each Fund appeared in the first quintile and second quintile of its respective Lipper expense group with respect to its actual management fee and total expenses, respectively.
The Board next noted that while the UBS Absolute Return Bond Fund was ranked in the fourth quintile of its Lipper expense group with respect to its actual management fee, the management fee was only three basis points greater than the median for its Lipper expense group. The Board also noted that the UBS Absolute Return Bond Fund had recently reached the first breakpoint in the Fund's fee in its management fee breakpoint schedule and that, as the Fund's assets continue to grow, the effective management fee, taking into account this breakpoint, should decrease. In addition, the Board noted that the Fund appeared in the second quintile and first quintile of its Lipper expense group with respect to its contractual management fee and total expenses, respectively
The Board also received and considered information about the fee rates charged to other funds and accounts that are managed by the Advisor. After discussing the information about the other funds and accounts managed by the Advisor, the Board determined that the fees charged by the Advisor to the Funds were within a reasonable range, giving effect to differences in services performed for such other funds and accounts as compared to such fee rates. With respect to each Fund subject to a one-year contractual expense limit, the Board also considered that the Advisor had agreed to renew the expense limit arrangement at the current rate for an additional one-year period. The Board, after reviewing all pertinent material, concluded that the management fee payable under each Fund's Advisory Agreement was fair and reasonable, both on an absolute basis and in comparison with the fees of other funds identified in its peer group.
Costs and profitability. The Board considered the costs of providing services to the Funds and the profitability of the Funds to the Advisor and its affiliates by reviewing the profitability analysis provided by the
246
The UBS FundsBoard approval of investment advisory agreements
Advisor, including information about its fee revenues and expenses. The Board reviewed the profitability of each Fund to the Advisor and its affiliates, and the compensation that was received for providing services to each Fund. The profitability analysis, which provided information for the last two calendar years, included schedules relating to the revenue and expenses attributable to: (i) the investment advisory and administration services provided by the Advisor; (ii) the distribution and shareholder services provided by UBS Global AM (US) and UBS Financial Services; (iii) the sub-transfer agency related services provided by UBS Financial Services; and (iv) all services provided by the Advisor, UBS Global AM (US), and UBS Financial Services shown on a consolidated basis. The Board paid specific attention to the cost allocation methodology used in the profitability analysis noting that the Advisor had, as the Board requested d
uring the annual investment advisory review process last year, engaged a consultant to assist the Advisor in enhancing the methodology used in the profitability analysis. The Board noted that the new methodology used for the profitability analysis provided to the Board for purposes of its annual review of the Advisory Agreements was more closely linked to how management assessed the profitability of the Funds from a business standpoint and concluded that the methodology used was reasonable. In discussing the profitability analysis with the Board, the Advisor, as requested by the Board, provided the Board with examples demonstrating as to when, and under what circumstances, the methodology utilized in the profitability analysis would show profitability that indicates that economies of scale have been achieved. The Advisor also explained to the Board the reasons for an increase or decrease in profitability of each Fund from last calendar year to this calendar year. In comparing the profitability of each Fund o
ver the past two years, the Board particularly noted the profitability to the Advisor of the UBS Dynamic Alpha Fund and the increase in profitability from the 2005 calendar year to the 2006 calendar year. In reviewing the Advisor's profitability for the UBS Dynamic Alpha Fund, the Board considered that the Advisor had agreed to include an additional breakpoint level in the management fee of the Fund, which could decrease the profitability of this Fund to the Advisor in the future and result in a sharing of economies of scale with shareholders of the Fund.
The Board also considered "fall-out" or ancillary benefits to the Advisor or its affiliates as the result of their relationship with the Funds; for example, the ability to attract other clients due to the Advisor's role as investment advisor to the Funds and the research services available to the Advisor through soft dollar brokerage commissions of the Funds that could be of benefit to other clients of the Advisor. The Independent Trustees also considered the ancillary benefits received by the Advisor's affiliates, UBS Securities LLC and UBS AG, in the form of commissions for executing securities transactions for the Funds. Upon closely examining the information provided concerning the Advisor's profitability, the Board concluded that the level of profits realized by the Advisor and its affiliates with respect to each Fund, if any, was reasonable in relation to the nature and quality of the services that were provided.
Economies of scale. The Board also discussed whether economies of scale are realized by the Advisor with respect to each Fund as it grows larger, and the extent to which this is reflected in the level of management fees charged. The Board noted that with respect to each Fund, any actual or potential economies of scale are, or will be, shared with the Fund and its shareholders through existing management fee breakpoints so that as the Fund grows in size, its effective management fee declines. The Board noted that with the inclusion of the additional breakpoint level for the UBS Dynamic Alpha Fund agreed to at the Meeting, each Fund had a breakpoint schedule that provided for continuing breakpoints past the current asset level for the Fund. Based on each Fund's fees and expenses and the Advisor's profitability analysis, the Board concluded that any actu
al or potential economies of scale would be reasonably shared with a Fund and its shareholders.
After full consideration of the factors discussed above, with no single factor identified as being of paramount importance, the Board, with the assistance of independent counsel, concluded that the continuation of the Advisory Agreement for each Fund was in the best interests of the Fund and its shareholders.
247
Trustee & Officer information (unaudited)
The Trust is a Delaware business trust. Under Delaware law, the Board has overall responsibility for managing the business and affairs of the Trust, including general supervision and review of its investment activities. The Trustees elect the Officers of the Trust, who are responsible for administering the day-to-day operations of the Trust and the Funds.
The table below show, for each Trustee and Officer, his or her name, address and age, the position held with the Trust, the length of time served as a Trustee or Officer of the Trust, the Trustee's or Officer's principal occupations during the last five years, the number of funds in the UBS Family of Funds overseen by the Trustee or Officer and other directorships held by such Trustee.
The Trust's Statement of Additional Information contains additional information about the Trustees and is available, without charge, upon request, by calling 1-800-647 1568.
Non-interested Trustees:
Name, address and age |
|
Position(s) held with Trust |
|
Term of office(1) and length of time served |
|
Principal occupation(s) during past 5 years |
|
Number of portfolios in fund complex overseen by Trustee |
|
Other directorships held by Trustee |
|
Walter E. Auch; 86 6001 N. 62nd Place Paradise Valley, AZ 85253 |
|
Trustee |
|
Since 1994 |
|
Mr. Auch is retired (since 1986). |
|
Mr. Auch is a trustee of three investment companies (consisting of 55 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
Mr. Auch is a Trustee/Director of Advisors Series Trust (22 portfolios); Legg Mason Partners Fund Complex (23 portfolios); Nicholas Applegate Institutional Funds (14 portfolios); and Chairman of the Board of Sound Surgical Technologies. |
|
|
Adela Cepeda; 49 A.C. Advisory, Inc. 161 No. Clark Street, Suite 4975 Chicago, Illinois 60601 |
|
Trustee |
|
Since 2004 |
|
Ms. Cepeda is founder and president of A.C. Advisory, Inc. (since 1995). |
|
Ms. Cepeda is a director or trustee of four investment companies (consisting of 56 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
Ms. Cepeda is a director of the MGI Funds (8 portfolios) (since 2005). |
|
|
248
Trustee & Officer information (unaudited)
Name, address and age |
|
Position(s) held with Trust |
|
Term of office(1) and length of time served |
|
Principal occupation(s) during past 5 years |
|
Number of portfolios in fund complex overseen by Trustee |
|
Other directorships held by Trustee |
|
Frank K. Reilly; 71 Mendoza College of Business University of Notre Dame Notre Dame, IN 46556-5649 |
|
Chairman and Trustee |
|
Since 1993 |
|
Mr. Reilly is a Professor at the University of Notre Dame (since 1982). |
|
Mr. Reilly is a director or trustee of four investment companies (consisting of 56 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
Mr. Reilly is a Director of Discover Bank, Morgan Stanley Trust FSB and Morgan Stanley National Trust. |
|
|
Edward M. Roob; 72 841 Woodbine Lane Northbrook, IL 60002 |
|
Trustee |
|
Since 1994 |
|
Mr. Roob is retired (since 1993). |
|
Mr. Roob is a director or trustee of four investment companies (consisting of 56 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
None. |
|
|
J. Mikesell Thomas; 56 Federal Home Loan Bank of Chicago 111 East Wacker Drive Chicago, IL 60601 |
|
Trustee |
|
Since 2004 |
|
Mr. Thomas is President and CEO of Federal Home Loan Bank of Chicago (since 2004). Mr. Thomas was an independent financial advisor (2001-2004). He was a managing director of Lazard Freres & Co. (1995 to 2001). |
|
Mr. Thomas is a director or trustee of four investment companies (consisting of 56 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
Mr. Thomas is a director and chairman of the Audit Committee for Evanston Northwestern Healthcare. |
|
|
249
Trustee & Officer information (unaudited)
Officers:
Name, address and age |
|
Position(s) held with the Trust |
|
Term of office(1) and length of time served |
|
Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer |
|
Joseph J. Allessie*; 42 |
|
Vice President and Assistant Secretary |
|
Since 2005 |
|
Mr. Allessie is an executive director (since 2007) and deputy general counsel (since 2005) at UBS Global Asset Management (US) Inc. and UBS Global AM (collectively, "UBS Global AM Americas region"). Prior to joining UBS Global AM Americas region, he was senior vice president and general counsel of Kenmar Advisory Corp. (from 2004 to 2005). Prior to that, Mr. Allessie was general counsel and secretary of GAM USA Inc., GAM Investments, GAM Services, GAM Funds, Inc. and the GAM Avalon Funds (from 1999 to 2004). Mr. Allessie is a vice president and assistant secretary of 20 investment companies (consisting of 93 portfolios) for which UBS Global AM Americas region or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
|
Thomas Disbrow*; 41 |
|
Vice President and Treasurer |
|
Since 2000 (Vice President) Since 2004 (Treasurer) |
|
Mr. Disbrow is an executive director (since 2007), (prior to which he was a director) and head of the US mutual fund treasury administration department (since September 2006) of UBS Global AM Americas region. Mr. Disbrow is a vice president and treasurer and/or principal accounting officer of 20 investment companies (consisting of 93 portfolios) for which UBS Global AM Americas region or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
|
Michael J. Flook*; 42 |
|
Vice President and Assistant Treasurer |
|
Since 2006 |
|
Mr. Flook is an associate director and a senior manager of the US mutual fund treasury administration department of UBS Global AM Americas region (since 2006). Prior to joining UBS Global AM Americas region, he was a senior manager with The Reserve (asset management firm) from May 2005 to May 2006. Prior to that he was a senior manager with PFPC Worldwide since October 2000. Mr. Flook is a vice president and assistant treasurer of 20 investment companies (consisting of 93 portfolios) for which UBS Global AM Americas region or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
|
250
Trustee & Officer information (unaudited)
Name, address and age |
|
Position(s) held with the Trust |
|
Term of office(1) and length of time served |
|
Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer |
|
Mark F. Kemper**; 49 |
|
Vice President and Secretary |
|
Since 1999 and 2004, respectively |
|
Mr. Kemper is general counsel of UBS Global AM Americas region (since 2004). Mr. Kemper also is a managing director of UBS Global AM Americas region (since 2006). He was deputy general counsel of UBS Global Asset Management (Americas) Inc. ("UBS Global AM Americas") from July 2001 to July 2004. He has been secretary of UBS Global AM Americas region since 1999 and assistant secretary of UBS Global Asset Management Trust Company since 1993. Mr. Kemper is secretary of UBS Global AM Americas region (since 2004). Mr. Kemper is vice president and secretary of 20 investment companies (consisting of 93 portfolios) for which UBS Global AM Americas region or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
|
Joanne M. Kilkeary*; 39 |
|
Vice President and Assistant Treasurer |
|
Since 2004 |
|
Ms. Kilkeary is an associate director (since 2000) and a senior manager (since 2004) of the US mutual fund treasury administration department of UBS Global AM Americas region. Ms. Kilkeary is a vice president and assistant treasurer of 20 investment companies (consisting of 93 portfolios) for which UBS Global AM Americas region or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
|
Tammie Lee*; 36 |
|
Vice President and Assistant Secretary |
|
Since 2005 |
|
Ms. Lee is a director and associate general counsel of UBS Global AM Americas region (since 2005). Prior to joining UBS Global AM Americas region, she was vice president and counsel at Deutsche Asset Management/Scudder Investments from 2003 to 2005. Prior to that she was assistant vice president and counsel at Deutsche Asset Management/Scudder Investments from 2000 to 2003. Ms. Lee is a vice president and assistant secretary of 20 investment companies (consisting of 93 portfolios) for which UBS Global AM Americas region or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
|
251
Trustee & Officer information (unaudited)
Name, address and age |
|
Position(s) held with the Trust |
|
Term of office(1) and length of time served |
|
Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer |
|
Joseph McGill*; 45 |
|
Vice President and Chief Compliance Officer |
|
Since 2004 |
|
Mr. McGill is a managing director (since 2006) and chief compliance officer (since 2003) of UBS Global AM Americas region. Prior to joining UBS Global AM Americas region, he was assistant general counsel at J. P. Morgan Investment Management (from 1999 to 2003). Mr. McGill is a vice president and chief compliance officer of 20 investment companies (consisting of 93 portfolios) for which UBS Global AM Americas region or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
|
Nancy D. Osborn*; 41 |
|
Vice President and Assistant Treasurer |
|
Since 2007 |
|
Mrs. Osborn is an associate director and a senior manager of the US mutual fund treasury administration department of UBS Global AM Americas region (since 2006). Prior to joining UBS Global AM Americas region, she was an assistant vice president with Brown Brothers Harriman since April 1996. Mrs. Osborn is a vice president and assistant treasurer of 20 investment companies (consisting of 93 portfolios) for which UBS Global AM Americas region or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
|
Eric Sanders*; 41 |
|
Vice President and Assistant Secretary |
|
Since 2005 |
|
Mr. Sanders is a director and associate general counsel of UBS Global AM Americas region (since 2005). From 1996 until June 2005, he held various positions at Fred Alger & Company, Incorporated, the most recent being assistant vice president and associate general counsel. Mr. Sanders is a vice president and assistant secretary of 20 investment companies (consisting of 93 portfolios) for which UBS Global AM Americas region or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
|
252
Trustee & Officer information (unaudited)
Name, address and age |
|
Position(s) held with the Trust |
|
Term of office(1) and length of time served |
|
Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer |
|
Andrew Shoup*; 50 |
|
Vice President and Chief Operating Officer |
|
Since 2006 |
|
Mr. Shoup is a managing director and senior member of the global treasury administration department of UBS Global AM Americas region (since July 2006). Prior to joining UBS Global AM Americas region, he was chief administrative officer for the Legg Mason Partner Funds (formerly Smith Barney, Salomon Brothers, and CitiFunds mutual funds) from November 2003 to July 2006. Prior to that, he held various positions with Citigroup Asset Management and related Companies with their domestic and offshore mutual funds since 1993. Additionally, he has worked for another mutual fund complex as well as spending eleven years in public accounting. Mr. Shoup is a vice president and chief operating officer of 20 investment companies (consisting of 93 portfolios) for which UBS Global AM Americas region or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
|
Kai Sotorp**; 48 |
|
President |
|
Since 2006 |
|
Mr. Sotorp is the head of the Americas for UBS Global Asset Management (since 2004); a member of the UBS Group Managing Board (since 2003) and a member of the UBS Global Asset Management Executive Committee (since 2001). Prior to his current role, Mr. Sotorp was head of UBS Global Asset Management Asia Pacific (2002-2004), covering Australia, Japan, Hong Kong, Singapore and Taiwan; head of UBS Global Asset Management (Japan) Ltd. (2001-2004); representative director and president of UBS Global Asset Management (Japan) Ltd. (2000-2004); and member of the board of Mitsubishi Corp. UBS Realty Inc. (2000-2004). Mr. Sotorp is president of 20 investment companies (consisting of 93 portfolios) for which UBS Global Asset Management Americas region or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
|
253
Trustee & Officer information (unaudited)
Name, address and age |
|
Position(s) held with the Trust |
|
Term of office(1) and length of time served |
|
Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer |
|
Keith A. Weller*; 45 |
|
Vice President and Assistant Secretary |
|
Since 2004 |
|
Mr. Weller is an executive director and senior associate general counsel of UBS Global AM Americas region (since 2005) and has been an attorney with affiliated entities since 1995. Mr. Weller is a vice president and assistant secretary of 20 investment companies (consisting of 93 portfolios) for which UBS Global AM Americas region or one of its affiliates serves as investment advisor, sub-advisor or manager. |
|
|
(1) Each Trustee holds office for an indefinite term. Officers of the Trust are appointed by the Trustees and serve at the pleasure of the Board.
* This person's business address is 51 West 52nd Street, New York, NY 10019-6114.
** This person's business address is One North Wacker Drive, Chicago, IL 60606.
254
The UBS FundsFederal tax information (unaudited)
For the year ended June 30, 2007, the percentage of dividends paid that qualify for the 70% dividends received deduction for corporate shareholders, the designation of long-term capital gain and the amounts expected to be passed through to the shareholders as foreign tax credits are approximated as follows:
|
|
Dividends received deduction |
|
20% Long-term capital gain |
|
Foreign tax credit |
|
UBS Global Allocation Fund |
|
|
29.49 |
% |
|
$ |
185,593,405 |
|
|
$ |
|
|
|
UBS Global Equity Fund |
|
|
84.14 |
|
|
|
|
|
|
|
|
|
|
UBS International Equity Fund |
|
|
|
|
|
|
6,171,802 |
|
|
|
327,341 |
|
|
UBS U.S. Equity Alpha Fund |
|
|
34.35 |
|
|
|
|
|
|
|
|
|
|
UBS U.S. Large Cap Equity Fund |
|
|
71.94 |
|
|
|
14,605,699 |
|
|
|
|
|
|
UBS U.S. Large Cap Growth Fund |
|
|
100.00 |
|
|
|
|
|
|
|
|
|
|
UBS U.S. Large Cap Value Equity Fund |
|
|
96.76 |
|
|
|
10,802,104 |
|
|
|
|
|
|
UBS U.S. Mid Cap Growth Equity Fund |
|
|
100.00 |
|
|
|
|
|
|
|
|
|
|
UBS U.S. Small Cap Growth Fund |
|
|
100.00 |
|
|
|
13,569,898 |
|
|
|
|
|
|
UBS Absolute Return Bond Fund |
|
|
|
|
|
|
2,342,592 |
|
|
|
|
|
|
In addition, for the year ended June 30, 2007, gross income derived from sources within foreign countries amounted to $6,117,491 for UBS International Equity Fund.
For the year ended June 30, 2007, the percentage of income earned from direct treasury obligations approximately amounted to the following:
|
|
Direct treasury obligations |
|
UBS Global Allocation Fund |
|
|
20.32 |
% |
|
UBS Absolute Return Bond Fund |
|
|
5.25 |
|
|
UBS Global Bond Fund |
|
|
23.82 |
|
|
UBS U.S. Bond Fund |
|
|
10.69 |
|
|
255
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256
Item
2. Code of Ethics.
The
registrant has adopted a code of ethics that applies to its principal executive
officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions pursuant to Section 406 of
the Sarbanes-Oxley Act of 2002. (The
registrant has designated the code of ethics adopted pursuant to Sarbanes-Oxley
as a Code of Conduct to lessen the risk of confusion with its separate code
of ethics adopted pursuant to Rule 17j-1 under the Investment Company Act of
1940, as amended.)
Item
3. Audit Committee Financial Expert.
The
registrants Board has determined that the following person serving on the
registrants Audit Committee is an audit committee financial expert as
defined in item 3 of Form N-CSR: J.
Mikesell Thomas. Mr. Thomas is
independent as defined in item 3 of Form N-CSR.
Item
4. Principal Accountant Fees and
Services.
(a) Audit
Fees:
For the fiscal years ended June 30, 2007 and June 30, 2006, the
aggregate Ernst & Young LLP (E&Y) audit fees for professional services
rendered to the registrant were approximately $548,500 and $492,350,
respectively.
Fees included in the audit fees category are those associated with the
annual audits of financial statements and services that are normally provided
in connection with statutory and regulatory filings.
(b) Audit-Related Fees:
In each of the fiscal years ended June 30, 2007 and June 30, 2006, the
aggregate audit-related fees billed by E&Y for services rendered to the
registrant that are reasonably related to the performance of the audits of the
financial statements, but not reported as audit fees, were approximately
$18,500 and $19,800, respectively.
Fees included in the audit-related category are those associated with
(1) the reading and providing of comments on the 2006 and 2005 semiannual
financial statements.
There were no audit-related fees required to be approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X during the fiscal years
indicated above.
(c) Tax Fees:
In each of the fiscal years ended June 30, 2007 and June 30, 2006, the
aggregate tax fees billed by E&Y for professional services rendered to the
registrant were approximately $59,750 and $55,698, respectively.
Fees included in the tax fees category comprise all services performed
by professional staff in the independent accountants tax division except those
services related to the audits. This
category comprises fees for review of tax returns.
There were no tax fees required to be approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X during the fiscal years indicated
above.
(d) All Other Fees:
In each of the fiscal years ended June 30, 2007 and June 30, 2006,
there were no fees billed by E&Y for products and services, other than the
services reported in Item 4(a)-(c) above, rendered to the registrant.
Fees included in the all other fees category would consist of services
related to internal control reviews, strategy and other consulting, financial
information systems design and implementation, consulting on other information
systems, and other tax services unrelated to the registrant.
There were no all other fees required to be approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X during the fiscal years
indicated above.
(e) (1) Audit Committee
Pre-Approval Policies and Procedures:
The
registrants Audit Committee must pre-approve all audit and non-audit services
provided by the auditors relating to any series of the registrants operations
or financial reporting. Prior to the commencement of any audit or non-audit
services, the Audit Committee reviews the services to determine whether they
are appropriate and permissible under applicable law.
The
registrants Audit Committee has adopted a charter that, among other things, provides
a framework for the Audit Committees consideration of non-audit services by
the registrants auditors. The charter
requires pre-approval of any non-audit services to be provided by the auditors
to a series of the registrant when, without such pre-approval, the auditors
would not be independent of the registrant under the applicable federal
securities laws, rules or auditing standards.
The charter also requires pre-approval of all non-audit services to be provided
by the registrants auditors to the registrants investment adviser or any
entity that it controls, is controlled by or is under common control with the
registrants investment adviser and that provides ongoing services to the
registrant when, without such pre-approval, the auditors would not be
independent of the registrant under applicable federal securities laws, rules
or auditing standards.
All
non-audit services must be approved in advance of provision of the service
either: (i) by resolution of the Audit Committee; (ii) by oral or written
approval of the Chairman of the Audit Committee and one other Audit Committee
member; or (iii) if the Chairman is unavailable, by oral or written approval of
two other members of the Audit Committee.
(e) (2) Services approved
pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
Audit-Related Fees:
There were no amounts that were approved by the audit
committee pursuant to the de minimis exception for the fiscal years ended June
30, 2007 and June 30, 2006 on behalf of the registrant.
There were no amounts that were required to be
approved by the audit committee pursuant to the de minimis exception for the
fiscal years ended June 30, 2007 and June 30, 2006 on behalf of the registrants
service providers that relate directly to the operations and financial
reporting of the registrant.
Tax Fees:
There were no amounts that were approved by the audit
committee pursuant to the de minimis exception for the fiscal years ended June
30, 2007 and June 30, 2006 on behalf of the registrant.
There were no amounts that were required to be
approved by the audit committee pursuant to the de minimis exception for the
fiscal years ended June 30, 2007 and June 30, 2006 on behalf of the registrants
service providers that relate directly to the operations and financial
reporting of the registrant.
All Other Fees:
There were no amounts that were approved by the audit
committee pursuant to the de minimis exception for the fiscal years ended June
30, 2007 and June 30, 2006 on behalf of the registrant.
There were no amounts that were required to be
approved by the audit committee pursuant to the de minimis exception for the
fiscal years ended June 30, 2007 and June 30, 2006 on behalf of the registrants
service providers that relate directly to the operations and financial
reporting of the registrant.
(f) According to
E&Y, for the fiscal year ended June 30, 2007, the percentage of hours spent
on the audit of the registrants financial statements for the most recent
fiscal year that were attributed to work performed by persons who are not
full-time, permanent employees of E&Y was less than 0%.
(g) For the fiscal years
ended June 30, 2007 and June 30, 2006, the aggregate fees billed by E&Y of
$1,668,131 and $2,288,990, respectively, for non-audit services rendered on behalf
of the registrant (covered), its investment adviser (not including any
sub-adviser whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser) and any entity controlling,
controlled by, or under common control with the adviser (non-covered) that
provides ongoing services to the registrant for each of the last two fiscal
years of the registrant is shown in the table below:
|
|
2007
|
|
2006
|
|
Covered Services
|
|
$
|
78,250
|
|
$
|
75,498
|
|
Non-Covered Services
|
|
$
|
1,589,881
|
|
$
|
2,213,492
|
|
(h) The
registrants audit committee was not required to consider whether the provision
of non-audit services that were rendered to the registrants investment adviser
(not including any sub-adviser whose role is primarily portfolio management and
is subcontracted with or overseen by another investment adviser), and any
entity controlling, controlled by, or under common control with the investment
adviser that provides ongoing services to the registrant that were not
pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountants independence.
Item 5.
Audit Committee of Listed Registrants.
Not applicable to
the registrant.
Item
6. Schedule of Investments.
Included as part
of the report to shareholders filed under Item 1 of this form.
Item
7. Disclosure of Proxy Voting Policies
and Procedures for Closed-End Management Investment Companies.
Not applicable to the registrant.
Item
8. Portfolio Managers of Closed-End
Management Investment Companies.
Not applicable to the registrant.
Item
9. Purchases of Equity Securities by
Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to
the registrant.
Item
10. Submission of Matters to a Vote of
Security Holders.
The Nominating Committee will consider nominees recommended by Qualifying Fund Shareholders if an Independent Trustee vacancy on the Board occurs. A Qualifying Fund Shareholder is a shareholder that: (i) owns of record, or beneficially through a financial intermediary, 1/2 of 1% or more of the Trusts outstanding shares and (ii) has been a shareholder of at least 1/2 of 1% of the Trusts total outstanding shares for 12 months or more prior to submitting the recommendation to the Nominating Committee. In order to recommend a nominee, a Qualifying Fund Shareholder should send a letter to the chairperson of the Nominating Committee, Mr. Walter Auch, care of the Secretary of the Trust at UBS Global Asset Management, One North Wacker Drive, Chicago, Illinois 60606, and indicate on the envelope Nominating Committee. The Qualifying Fund Shareholders letter should include: (i) the name and ad
dress of the Qualifying Fund Shareholder making the recommendation; (ii) the number of shares of each class and series of shares of the Trust which are owned of record and beneficially by such Qualifying Fund Shareholder and the length of time that such shares have been so owned by the Qualifying Fund Shareholder; (iii) a description of all arrangements and understandings between such Qualifying Fund Shareholder and any other person or persons (naming such person or persons) pursuant to which the recommendation is being made; (iv) the name and address of the nominee; and (v) the nominees resume or curriculum vitae. The Qualifying Fund Shareholders letter must be accompanied by a written consent of the individual to stand for election if nominated for the Board and to serve if elected by shareholders.
Item
11. Controls and Procedures.
(a) The registrants principal executive officer
and principal financial officer have concluded that the registrants disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Investment
Company Act of 1940, as amended) are effective based on their evaluation of
these controls and procedures as of a date within 90 days of the filing date of
this document.
(b) The registrants principal executive officer
and principal financial officer are aware of no changes in the registrants
internal control over financial reporting that occurred during the registrants
most recent fiscal half-year that has materially affected, or is reasonably
likely to materially affect, the registrants internal control over financial
reporting.
Item
12. Exhibits.
(a) (1) Code of Ethics as required pursuant to
Section 406 of the Sarbanes-Oxley Act of 2002 (and designated by registrant as
a Code of Conduct) is incorporated by reference herein from Exhibit
EX-99.CODE ETH to the registrants Report on Form N-CSR filed September 7, 2004
(Accession Number: 0001047469-04-028138)(SEC File No. 811-06637).
(a) (2) Certifications of principal executive
officer and principal financial officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002 is attached hereto as Exhibit EX-99.CERT.
(a) (3) Written solicitation to purchase
securities under Rule 23c-1 under the Investment Company Act of 1940 sent or
given during the period covered by the report by or on behalf of the registrant
to 10 or more persons not applicable to the registrant.
(b) Certifications of principal executive officer and principal financial
officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is attached
hereto as Exhibit EX-99.906.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
The
UBS Funds
|
|
By:
|
/s/ Kai R. Sotorp
|
|
|
Kai R. Sotorp
|
|
President
|
|
|
Date:
|
September 7, 2007
|
|
|
|
|
|
Pursuant to the requirements of the
Securities Exchange Act of 1934 and the Investment Company Act of 1940, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By:
|
/s/ Kai R. Sotorp
|
|
|
Kai R. Sotorp
|
|
President
|
|
|
Date:
|
September 7, 2007
|
|
|
|
By:
|
/s/ Thomas Disbrow
|
|
|
Thomas Disbrow
|
|
Vice President and Treasurer
|
|
|
Date:
|
September 7, 2007
|
|
|
|
|
|
|
EX-99.CERT
2
a07-19509_1ex99dcert.htm
EX-99.CERT
Exhibit EX-99.CERT
Certifications
I, Kai R. Sotorp,
President of The UBS Funds, certify that:
1. I have reviewed this
report on Form N-CSR of The UBS Funds;
2. Based on my
knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my
knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial
condition, results of operations, changes in net assets, and cash flows (if the
financial statements are required to include a statement of cash flows) of the
registrant as of, and for, the periods presented in this report;
4. The registrants
other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940) and internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of
1940) for the registrant and have:
(a) Designed
such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
(b) Designed
such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements, for external purposes in accordance with
generally accepted accounting principles;
(c) Evaluated
the effectiveness of the registrants disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of a date within 90 days prior to the
filing date of this report based on such evaluation; and
(d) Disclosed
in this report any change in the registrants internal control over financial
reporting that occurred during the second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to
materially affect, the registrants internal control over financial reporting;
and
5. The registrants
other certifying officer(s) and I have disclosed to the registrants auditors
and the audit committee of the registrants board of directors (or persons
performing the equivalent functions):
(a) All
significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to
adversely affect the registrants ability to record, process, summarize, and
report financial information; and
(b) Any
fraud, whether or not material, that involves management or other employees who
have a significant role in the registrants internal control over financial
reporting.
By:
|
/s/ Kai R. Sotorp
|
|
|
Kai R. Sotorp
|
|
President
|
|
|
Date:
|
September 7, 2007
|
|
|
|
|
|
I, Thomas Disbrow, Vice
President and Treasurer of The UBS Funds, certify that:
1. I have reviewed this
report on Form N-CSR of The UBS Funds;
2. Based on my
knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my
knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial
condition, results of operations, changes in net assets, and cash flows (if the
financial statements are required to include a statement of cash flows) of the
registrant as of, and for, the periods presented in this report;
4. The registrants
other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940) and internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of
1940) for the registrant and have:
(a) Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be
designed under our supervision, to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this report
is being prepared;
(b) Designed
such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements, for external purposes in accordance with
generally accepted accounting principles;
(c) Evaluated
the effectiveness of the registrants disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of a date within 90 days prior to the
filing date of this report based on such evaluation; and
(d) Disclosed
in this report any change in the registrants internal control over financial
reporting that occurred during the second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to
materially affect, the registrants internal control over financial reporting;
and
5. The registrants
other certifying officer(s) and I have disclosed to the registrants auditors
and the audit committee of the registrants board of directors (or persons
performing the equivalent functions):
(a) All
significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to
adversely affect the registrants ability to record, process, summarize, and
report financial information; and
(b) Any
fraud, whether or not material, that involves management or other employees who
have a significant role in the registrants internal control over financial
reporting.
By:
|
/s/ Thomas Disbrow
|
|
|
Thomas Disbrow
|
|
Vice President
and Treasurer
|
|
|
Date:
|
September 7, 2007
|
|
|
|
|
|
EX-99.906CERT
3
a07-19509_1ex99d906cert.htm
EX-99.906CERT
Exhibit EX-99.906CERT
Certification
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18,
United States Code)
In connection with the
attached report of The
UBS Funds (the Registrant) on Form N-CSR (the Report), each of the
undersigned officers of the Registrant does hereby certify that, to the best of
such officers knowledge:
1) the Report fully
complies with the requirements of Section 13(a) or 15(d), as applicable, of the
Securities Exchange Act of 1934, as amended;
2) the information
contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Registrant as of, and for,
the periods presented in the Report.
Dated:
|
September 7, 2007
|
|
|
|
By:
|
/s/ Kai R. Sotorp
|
|
|
Kai R. Sotorp
|
|
President
|
|
|
Dated:
|
September 7, 2007
|
|
|
|
By:
|
/s/ Thomas Disbrow
|
|
|
Thomas Disbrow
|
|
Vice President and Treasurer
|
|
|
|
|
|
This certification
is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed
as part of the Report or as a separate disclosure document.
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