N-CSRS 1 a11-32467_1ncsrs.htm N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-06637

The UBS Funds
(Exact name of registrant as specified in charter)

One North Wacker Drive, Chicago, IL					60606-2807
(Address of principal executive offices)					(Zip code)

Joseph J. Allessie, Esq. UBS Global Asset Management (Americas) Inc. 1285 Avenue of the Americas New York, NY 10019
(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

Registrant’s telephone number, including area code:				212-821 3000

Date of fiscal year end:	June 30

Date of reporting period:		December 31, 2011

Item 1. Reports to Stockholders.

UBS Fixed
Income Funds

December 31, 2011

The UBS Funds—Fixed Income

Semiannual Report

Table of contents

President's letter					1

Market commentary					2

Fixed Income

UBS Core Plus Bond Fund					3

UBS Fixed Income Opportunities Fund					16

UBS Global Bond Fund					34

UBS High Yield Fund					46

Explanation of expense disclosure					60

Statement of assets and liabilities					64

Statement of operations					68

Statement of changes in net assets					70

Financial highlights					72

Notes to financial statements					80

General information					100

This page intentionally left blank.

President's letter

February 15, 2012

Dear Shareholder,

If I were asked to characterize the market environment of the past six months, I could probably crystallize it to one word: challenging. Adverse macroeconomic news—including events relating to Greece and the Eurozone, ratings downgrades and inflation concerns—weighed heavily on investor sentiment, in turn causing markets to demonstrate unusually high levels of volatility.

In this environment of uncertainty, company fundamentals were largely ignored in favor of short-term news, making it difficult for active managers to add value through security selection. We were no different, and so stock selection was the primary detractor from performance across many of our equity and asset allocation funds during the period. Our fixed income portfolios, though generally experiencing performance more in line with their benchmarks, also faced certain headwinds, including a volatile credit and interest rate environment as investor sentiment frequently shifted between risk aversion and risk-taking.

In the time since I have been writing these letters to you, I have stressed the importance of maintaining a long-term perspective. This advice, though valuable under any circumstance, is never more important to follow than during periods of extreme market volatility, when fear plays a too large role in investor decision-making.

At UBS Global Asset Management, we have always kept an eye on the long term. This perspective has required us to evolve over our 30 years of investing, to meet the demands of a more complex investment landscape—for example, by combining our valuation work with market behavioral analysis in our asset allocation portfolios to better position them to navigate market volatility. However, we have never compromised on our core belief that strict adherence to our disciplined investment process through up and down markets—although it may, on occasion, result in short-term underperformance—is the most important way, over time, that we can add value in our clients' portfolios.

As I write this, the road ahead, though never certain, seems less unsure. Signs of a solution appear to be emerging in Europe, while US economic indicators seem to be improving. Year-to-date, the S&P 500 Index—the standard-bearer of equity market performance—is in positive territory, and stock correlations and volatility appear to be moving lower. The market, once again, seems to be paying attention to fundamentals. Against this backdrop, we firmly believe that our portfolios will ultimately be rewarded for the positions we've taken, and that active managers will once again be well-positioned to add value in 2012.

As always, we remain firmly dedicated to your investment success. Thank you for your continued support.

Sincerely,

Mark E. Carver
President
The UBS Funds
Managing Director
UBS Global Asset Management (Americas) Inc.

The markets in review

Moderating growth in many countries

Although the overall US economy expanded during the reporting period, gross domestic product ("GDP") growth rates in general could best be characterized as tepid. At its August meeting, the Federal Reserve Board (the "Fed"), acknowledging that economic growth had been considerably slower than it expected, declared that it would keep the federal funds rate on hold until at least through mid-2013. In January 2012 (after the reporting period had ended), the Fed extended this period, noting that economic conditions warranted maintaining exceptionally low federal funds rate levels at least through late 2014.

Additionally, the Fed also announced its plan to purchase $400 billion of longer-term Treasury securities, and to sell an equal amount of shorter-term Treasury securities by June 2012. Dubbed "Operation Twist," the Fed noted that its intention with this program was to "put downward pressure on longer-term interest rates and help make broader financial conditions more accommodative."

In contrast to the US, many international economies took a step backward as the reporting period progressed. Growth in the Eurozone was negatively impacted by its ongoing sovereign debt crisis, as well as weak consumer and business confidence. In contrast, Japan's economy gained some traction, emerging from its recession in the first half of the review period. Elsewhere, while growth rates in many developing countries such as China and India surpassed their developed country counterparts, they also tended to progressively move lower during the course of the reporting period.

Riskier fixed income securities produced mixed results

The US taxable spread sectors (non-US Treasury fixed income securities) were a study in contrasts during the reporting period. Over the first half of the period, investor risk aversion was often elevated due to concerns about the European sovereign debt crisis, signs of decelerating global growth and the downgrade of US sovereign debt. Against this backdrop, US Treasury yields fell sharply. Risk appetite then increased at times during the second half of the period, given signs that the US economy was gaining some traction. All told, during the six months ended December 31, 2011, spread sectors typically underperformed Treasuries, and the overall US bond market, as measured by the Barclays Capital US Aggregate Index,¹ returned 4.98%.

Looking more closely at lower-rated fixed-income securities, the BofA Merrill Lynch US High Yield Cash Pay Constrained Index² declined 0.39% during the reporting period. In contrast, emerging markets debt, as measured by the J.P. Morgan Emerging Markets Bond Index Global (EMBI Global),³ rose 3.21%.The emerging markets debt asset class was supported by continued solid growth in developing countries and generally solid demand from investors seeking to generate incremental yield in the low interest rate environment.

¹ The Barclays Capital US Aggregate Index is an unmanaged broad based index designed to measure the US-dollar-denominated, investment-grade, fixed rate taxable bond market. The index includes bonds from the Treasury, government-related, corporate, mortgage-backed, asset-backed and commercial mortgage-backed sectors. US agency hybrid adjustable rate mortgage (ARM) securities were added to the Index on April 1, 2007. Investors should note that indices do not reflect the deduction of fees and expenses.

² The BofA Merrill Lynch US High Yield Cash Pay Constrained Index is an unmanaged index of publicly placed non-convertible, coupon-bearing US dollar denominated below investment grade corporate 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. Investors should note that indices do not reflect the deduction of fees and expenses.

³ The J.P. Morgan Emerging Markets Bond Index Global (EMBI Global) is an unmanaged index which is designed to track total returns for US-dollar denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans and Eurobonds. Investors should note that indices do not reflect the deduction of fees and expenses.

UBS Core Plus Bond Fund

Portfolio performance

For the six months ended December 31, 2011, Class A shares of UBS Core Plus Bond Fund (the "Fund") returned 4.77% (Class A shares returned 0.06% after the deduction of the maximum sales charge), while Class Y shares returned 4.91%. The Fund's benchmark, the Barclays Capital US Aggregate Index (the "Index"), returned 4.98% 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 5; please note that the Fund's returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares, while the Index returns do not reflect the deduction of fees and expenses.)

The Fund posted a positive return, but slightly underperformed the Index during the reporting period, largely due to sector allocation and issue selection.

The Fund used derivatives during the reporting period. Certain interest rate derivatives were utilized to facilitate specific duration and yield curve strategies. Credit default swaps were used to implement specific credit-related investment strategies as part of the Fund's sector allocation and security selection. Later in the period, the Fund engaged in foreign exchange forwards to help implement its active currency positions. Derivatives play a role in the overall portfolio construction process but are just one of the tools we utilize to manage the Fund's overall risk exposure and to implement the aforementioned strategies. With that in mind, overall, the Fund's yield curve positioning and currency management were positive contributors to performance, while sector allocation and security selection in certain spread sectors detracted from performance.

Portfolio performance summary¹

What worked

• Yield curve positioning was a positive for performance. We had a yield curve flattening bias for the portfolio from July 2011 through the end of September, as we expected longer-term rates to decline and the difference between short- and long-term rates to narrow. This was a positive for results when the yield curve flattened during that period.

• The Fund's active currency decisions in several developed markets contributed to results. The largest benefit came from our short position in the euro, which weakened during the reporting period given concerns relating to the European sovereign debt crisis.

What didn't work

• The Fund's positioning in several spread sectors (non-US Treasuries) detracted from performance during the reporting period.

– Our allocation to commercial mortgage-backed securities (CMBS) modestly detracted from results, both from an allocation and security selection standpoint. While the Fund's CMBS exposure fluctuated from month to month, we generally maintained an overweight position for the period. Within the sector, we held a mix of securities across the capital structure. During the third quarter, securities lower in the capital structure were very volatile and underperformed.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 2.

UBS Core Plus Bond Fund

– An out-of-index exposure to high yield bonds—in particular securities rated BB and below—was detrimental for performance. While they performed well during the second half of the period, this was not enough to offset their weak results in July and August, when investor risk aversion rose sharply.

• Security selection of investment grade industrial bonds hurt the Fund's results. Within the industrials sector, we emphasized more liquid, higher beta (higher risk) telecommunications companies. The spreads of these bonds widened due to economic concern and periods of risk aversion that were triggered by several macro factors, including the European sovereign debt crisis. (Spread measures the difference between the yields paid on a security versus those paid on US Treasuries.)

This letter is intended to assist shareholders in understanding how the Fund performed during the six months ended December 31, 2011. The views and opinions in the letter were current as of February 15, 2012. They are not guarantees of future 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.

UBS Core Plus Bond Fund

Average annual total returns for periods ended 12/31/11 (unaudited)

	6 months			1 year			5 years			10 years
Before deducting maximum sales charge
Class A¹		4.77	%		7.34	%		2.21	%		3.33	%
Class B²		4.38			6.54			1.44			2.87⁵
Class C³		4.41			6.83			1.67			2.80
Class Y⁴		4.91			7.74			2.45			3.59
After deducting maximum sales charge
Class A¹		0.06	%		2.46	%		1.28	%		2.86	%
Class B²		(0.62	)		1.54			1.11			2.87⁵
Class C³		3.66			6.08			1.67			2.80
Barclays Capital US Aggregate Index⁶		4.98	%		7.84	%		6.50	%		5.78	%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2011 prospectuses were as follows: Class A—1.46% and 0.65%; Class B—2.29% and 1.40%; Class C—1.93% and 1.15%; Class Y—1.13% and 0.40%. 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 UBS Global Asset Management (Americas) Inc., the Fund's investment advisor ("UBS Global AM (Americas)" or 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 expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) to the extent necessary so that the Fund's ordinary operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses), through the period ending October 27, 2012, do not exceed 0.64% for Class A shares, 1.39% for Class B shares, 1.14% for Class C shares and 0.39% for Class Y shares. 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 Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.

² 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. On or about March 1, 2012, the Class B shares of the Fund will be converted into Class A shares of the same Fund and Class B shares will be terminated effective immediately after such conversion.

³ 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. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total returns presented for the Class C shares shown above.

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 Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁶ The Barclays Capital US Aggregate Index is an unmanaged broad based index designed to measure the US dollar-denominated, investment grade, fixed rate taxable bond market. The index includes bonds from the Treasury, government-related, corporate, mortgage-backed, asset backed and commercial-mortgage backed sectors. US agency hybrid adjustable rate mortgage (ARM) securities were added to the index on April 1, 2007. Investors should note that indices do not reflect the deduction of fees and expenses.

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

UBS Core Plus Bond Fund

Top ten long-term fixed income holdings (unaudited)¹

As of December 31, 2011

	Percentage of net assets
US Treasury Notes, 0.250%, due 10/31/13		7.8	%
US Treasury Bonds, 3.750%, due 08/15/41		5.6
US Treasury Notes, 0.875%, due 11/30/16		4.9
Federal National Mortgage Association, 1.625%, due 10/26/15		2.6
US Treasury Notes, 2.000%, due 11/15/21		2.3
Government National Mortgage Association Pools, 4.500%, TBA		1.9
Federal National Mortgage Association, 0.875%, due 08/28/14		1.9
Federal Home Loan Mortgage Corp. Gold Pools, 5.000%, TBA		1.9
Federal Home Loan Mortgage Corp. Gold Pools, #A95090, 4.500%, due 11/01/40		1.9
Federal Home Loan Mortgage Corp. Gold Pools, 5.500%, TBA		1.8
Total		32.6	%

¹Figures represent the direct investments of UBS Core Plus Bond Fund. Figures would be different if a breakdown of the underlying investment company was included.

UBS Core Plus Bond Fund

Industry diversification (unaudited)²

As a percentage of net assets as of December 31, 2011

Bonds
Corporate bonds
Aerospace & defense	0.16	%
Beverages	0.05
Biotechnology	0.22
Building products	0.28
Capital markets	1.42
Chemicals	0.28
Commercial banks	2.15
Commercial services & supplies	0.39
Computers & peripherals	0.14
Consumer finance	1.09
Diversified financial services	3.09
Diversified telecommunication services	0.58
Electric utilities	0.99
Energy equipment & services	0.33
Food & staples retailing	0.13
Food products	0.59
Gas utilities	0.45
Health care providers & services	0.32
Household durables	0.12
Independent power producers & energy traders	0.28
Insurance	0.93
Leisure equipment & products	0.13
Machinery	0.15
Media	1.51
Metals & mining	1.15
Multi-utilities	0.11
Oil, gas & consumable fuels	1.76
Paper & forest products	0.18	%
Pharmaceuticals	0.40
Real estate investment trust (REIT)	0.64
Road & rail	0.46
Semiconductors & semiconductor equipment	0.10
Tobacco	0.66
Wireless telecommunication services	0.68
Total corporate bonds	21.92	%
Asset-backed securities	0.93
Commercial mortgage-backed securities	6.26
Mortgage & agency debt securities	39.54
Municipal bonds	1.39
US government obligations	25.27
Non-US government obligations	0.36
Supranational bond	0.25
Total bonds	95.92	%
Investment company
UBS High Yield Relationship Fund	0.48
Short-term investment	11.93
Options purchased	0.15
Investment of cash collateral from securities loaned	0.13
Total investments	108.61	%
Liabilities, in excess of cash and other assets	(8.61	)
Net assets	100.00	%

²Figures represent the industry breakdown of direct investments of UBS Core Plus Bond Fund. Figures would be different if a breakdown of the underlying investment company's industry diversification and derivatives exposure was included.

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds: 95.92%
Corporate bonds: 21.92%
Australia: 0.30%
National Australia Bank Ltd., 3.000%, due 07/27/16¹	$	100,000	$	99,627
Rio Tinto Finance USA Ltd., 4.125%, due 05/20/21		30,000		32,249
Total Australia corporate bonds				131,876
Austria: 0.18%
PE Paper Escrow GmbH, 12.000%, due 08/01/14¹		75,000		79,875
Canada: 0.66%
Cenovus Energy, Inc., 4.500%, due 09/15/14		95,000		102,342
Teck Resources Ltd., 6.250%, due 07/15/41		125,000		144,402
Xstrata Canada Financial Corp., 4.950%, due 11/15/21¹		45,000		45,973
Total Canada corporate bonds				292,717
Cayman Islands: 0.82%
Transocean, Inc., 6.800%, due 03/15/38		145,000		146,151
Vale Overseas Ltd., 4.625%, due 09/15/20		155,000		160,286
6.875%, due 11/21/36		50,000		56,928
Total Cayman Islands corporate bonds				363,365
France: 0.11%
RCI Banque SA, 4.600%, due 04/12/16¹		50,000		47,594
Ireland: 0.51%
The Governor & Co. of the Bank of Ireland, 2.750%, due 03/02/12¹		225,000		223,045
Luxembourg: 0.17%
Telecom Italia Capital SA, 4.950%, due 09/30/14		80,000		74,256
Mexico: 0.25%
America Movil SAB de CV, 5.000%, due 03/30/20		100,000		110,477
Netherlands: 0.14%
Siemens Financieringsmaatschappij NV, 6.125%, due 08/17/26¹		50,000		60,696

	Face amount		Value
Netherlands Antilles: 0.40%
Teva Pharmaceutical Finance Co. BV, 2.400%, due 11/10/16	$	100,000	$	101,709
Teva Pharmaceutical Finance IV BV, 3.650%, due 11/10/21		75,000		76,285
Total Netherlands Antilles corporate bonds				177,994
Norway: 0.18%
Eksportfinans ASA, 5.000%, due 02/14/12		80,000		79,645
South Africa: 0.16%
AngloGold Ashanti Holdings PLC, 5.375%, due 04/15/20		70,000		69,542
United Kingdom: 1.15%
BP Capital Markets PLC, 3.875%, due 03/10/15		120,000		128,137
HSBC Holdings PLC, 4.875%, due 01/14/22		325,000		343,490
PPL WEM Holdings PLC, 3.900%, due 05/01/16¹		35,000		35,084
Total United Kingdom corporate bonds				506,711
United States: 16.89%
Allied Waste North America, Inc., 6.875%, due 06/01/17		85,000		89,887
Altria Group, Inc., 9.950%, due 11/10/38		55,000		83,654
American International Group, Inc., 4.250%, due 09/15/14		50,000		48,556
Amgen, Inc., 3.450%, due 10/01/20		100,000		97,683
Anadarko Petroleum Corp., 5.950%, due 09/15/16		75,000		85,016
Appalachian Power Co., 4.600%, due 03/30/21		70,000		76,766
Aristotle Holding, Inc., 4.750%, due 11/15/21¹		50,000		51,739
Bank of America Corp., 3.750%, due 07/12/16		30,000		27,778
6.500%, due 08/01/16		130,000		130,919
Bunge Ltd. Finance Corp., 5.100%, due 07/15/15		80,000		83,733
Burlington Northern Santa Fe LLC, 6.150%, due 05/01/37		100,000		126,304
Caterpillar Financial Services Corp., 1.125%, due 12/15/14		45,000		45,056
Caterpillar, Inc., 3.900%, due 05/27/21		60,000		65,871

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
United States—(Continued)
Cellco Partnership, 8.500%, due 11/15/18	$	85,000	$	114,724
CenterPoint Energy Resources Corp., 6.000%, due 05/15/18		115,000		133,596
CIT Group, Inc., 7.000%, due 05/02/16¹		135,000		134,831
Citigroup, Inc., 3.953%, due 06/15/16		65,000		64,776
6.125%, due 05/15/18		160,000		170,297
8.125%, due 07/15/39		60,000		73,460
Comcast Corp., 6.300%, due 11/15/17		160,000		189,248
ConocoPhillips, 6.500%, due 02/01/39		75,000		103,745
Dell, Inc., 5.400%, due 09/10/40		55,000		61,833
DirecTV Holdings LLC, 6.000%, due 08/15/40		70,000		76,361
7.625%, due 05/15/16		105,000		111,431
Dolphin Subsidiary II, Inc., 7.250%, due 10/15/21¹		85,000		91,800
Dow Chemical Co., 4.125%, due 11/15/21		50,000		51,286
4.250%, due 11/15/20		70,000		72,761
Duke Energy Carolinas LLC, 5.100%, due 04/15/18		55,000		64,051
Energy Transfer Partners LP, 6.050%, due 06/01/41		40,000		39,222
ERP Operating LP, 4.750%, due 07/15/20		35,000		36,310
5.375%, due 08/01/16		225,000		244,789
FGI Operating Co., Inc., 10.250%, due 08/01/15		67,000		71,020
Ford Motor Credit Co. LLC, 5.000%, due 05/15/18		65,000		65,169
5.875%, due 08/02/21		145,000		151,120
7.800%, due 06/01/12		215,000		219,579
Fortune Brands, Inc., 6.375%, due 06/15/14		19,000		20,775
General Electric Capital Corp., 3.350%, due 10/17/16		100,000		104,140
4.650%, due 10/17/21		100,000		104,367
Goldman Sachs Group, Inc., 3.625%, due 02/07/16		160,000		154,596
Hasbro, Inc., 6.350%, due 03/15/40		55,000		59,459
Intel Corp., 3.300%, due 10/01/21		40,000		42,137

	Face amount		Value
International Lease Finance Corp., 7.125%, due 09/01/18¹	$	80,000	$	82,800
Jersey Central Power & Light Co., 7.350%, due 02/01/19		60,000		75,336
JPMorgan Chase & Co., 3.150%, due 07/05/16		165,000		165,772
4.400%, due 07/22/20		145,000		148,076
5.400%, due 01/06/42		45,000		46,962
Kinder Morgan Energy Partners LP, 5.800%, due 03/15/35		45,000		46,370
6.500%, due 09/01/39		50,000		55,575
Kraft Foods, Inc., 6.500%, due 02/09/40		135,000		175,627
Massachusetts Mutual Life Insurance Co., 8.875%, due 06/01/39¹		50,000		73,138
MBNA Corp., 6.125%, due 03/01/13		135,000		135,545
Merrill Lynch & Co., Inc., 5.450%, due 02/05/13		80,000		80,582
Morgan Stanley, 5.500%, due 07/28/21		75,000		69,348
Series F, 5.625%, due 09/23/19		110,000		101,869
6.000%, due 04/28/15		75,000		75,130
6.625%, due 04/01/18		150,000		148,116
Mutual of Omaha Insurance Co., 6.800%, due 06/15/36¹		80,000		85,326
News America, Inc., 6.200%, due 12/15/34		35,000		37,627
7.750%, due 12/01/45		60,000		73,462
Norfolk Southern Corp., 3.250%, due 12/01/21		75,000		76,101
NuStar Logistics LP, 7.650%, due 04/15/18		100,000		118,724
Oncor Electric Delivery Co. LLC, 6.800%, due 09/01/18		50,000		60,805
ONEOK, Inc., 6.000%, due 06/15/35		60,000		64,221
Owens Corning, 6.500%, due 12/01/16		115,000		125,509
Pacific Gas & Electric Co., 6.050%, due 03/01/34		30,000		37,135
Pacific Life Insurance Co., 9.250%, due 06/15/39¹		35,000		46,608
Philip Morris International, Inc., 2.900%, due 11/15/21		125,000		127,444
PPL Energy Supply LLC, 4.600%, due 12/15/21		70,000		70,987
Principal Financial Group, Inc., 8.875%, due 05/15/19		105,000		130,730
Prudential Financial, Inc., 6.625%, due 12/01/37		20,000		21,900

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Concluded)
United States—(Concluded)
PSEG Power LLC, 8.625%, due 04/15/31	$	35,000	$	51,630
Qwest Corp., 7.625%, due 06/15/15		125,000		138,514
Reynolds American, Inc., 7.625%, due 06/01/16		65,000		77,508
Sempra Energy, 9.800%, due 02/15/19		35,000		47,269
Time Warner, Inc., 6.100%, due 07/15/40		35,000		41,032
Tupperware Brands Corp., 4.750%, due 06/01/21^1,2		55,000		55,110
UnitedHealth Group, Inc., 5.800%, due 03/15/36		75,000		89,728
Valero Energy Corp., 6.625%, due 06/15/37		90,000		96,501
Verizon Communications, Inc., 6.100%, due 04/15/18		100,000		120,136
Wal-Mart Stores, Inc., 5.000%, due 10/25/40		50,000		58,847
Wells Fargo & Co., 3.676%, due 06/15/16		135,000		141,075
WMG Acquisition Corp., 9.500%, due 06/15/16		125,000		135,625
Total United States corporate bonds				7,449,645
Total corporate bonds (cost $9,298,689)				9,667,438
Asset-backed securities: 0.93%
United States: 0.93%
Delta Air Lines Pass Through Trust, Series 2007-1, Class A, 6.821%, due 08/10/22		37,817		39,470
MBNA Credit Card Master Note Trust, Series 2004-C2, Class C2, 1.178%, due 11/15/16³		350,000		346,605
Renaissance Home Equity Loan Trust, Series 2006-4, Class AF1, 5.545%, due 01/25/37		41,708		23,303
Total asset-backed securities (cost $410,766)				409,378
Commercial mortgage-backed securities: 6.26%
United States: 6.26%
Banc of America Commercial Mortgage, Inc., Series 2007-2, Class AM, 5.642%, due 04/10/49³		150,000		140,007

	Face amount		Value
Series 2007-4, Class AM, 5.791%, due 02/10/51³	$	300,000	$	283,839
Commercial Mortgage Loan Trust, Series 2008-LS1, Class AM, 6.007%, due 12/10/49³		300,000		278,216
FDIC Structured Sale Guaranteed Notes, Series 2010-C1, Class A, 2.980%, due 12/06/20¹		268,221		278,700
GE Capital Commercial Mortgage Corp., Series 2007-C1, Class AM, 5.606%, due 12/10/49³		150,000		123,109
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4, 5.444%, due 03/10/39		400,000		432,954
Series 2007-GG9, Class AM, 5.475%, due 03/10/39		445,000		417,964
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CB17, Class AM, 5.464%, due 12/12/43		170,000		166,733
Series 2006-LDP8, Class AJ, 5.480%, due 05/15/45³		200,000		167,531
Series 2006-LDP7, Class AJ, 5.875%, due 04/15/45³		225,000		174,453
Morgan Stanley Dean Witter Capital I, Series 2002-IQ3, Class B, 5.240%, due 09/15/37		75,000		74,515
Morgan Stanley Re-REMIC Trust, Series 2009-GG10, Class A4B, 5.790%, due 08/12/45^1,3		225,000		221,031
Total commercial mortgage-backed securities (cost $2,838,759)				2,759,052
Mortgage & agency debt securities: 39.54%
United Kingdom: 1.24%
Fosse Master Issuer PLC, Series 2011-1A, Class A2, 1.805%, due 10/18/54^1,3		300,000		298,857
Holmes Master Issuer PLC, Series 2011-1A, Class A2, 1.753%, due 10/15/54^1,3		250,000		248,897
Total United Kingdom mortgage & agency debt securities				547,754
United States: 38.30%
Federal Home Loan Mortgage Corp. Gold Pools,⁴3.500%, TBA		350,000		359,352
4.000%, TBA		150,000		157,313
4.500%, TBA		250,000		264,883

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Mortgage & agency debt securities—(Concluded)
United States—(Concluded)
5.000%, TBA	$	775,000	$	832,762
5.500%, TBA		750,000		813,750
#G13223, 4.000%, due 05/01/23		303,415		318,909
#A96140, 4.000%, due 01/01/41		144,217		151,477
#G08431, 4.000%, due 01/01/41		373,230		392,018
#A95090, 4.500%, due 11/01/40		771,580		818,065
#Q01348, 4.500%, due 06/01/41		219,204		232,359
#G05249, 5.000%, due 01/01/39		321,670		346,007
#G05267, 5.500%, due 12/01/38		16,103		17,496
#G06381, 5.500%, due 08/01/40		180,717		197,072
#C63008, 6.000%, due 01/01/32		187,005		208,313
#G06019, 6.000%, due 10/01/36		191,999		213,035
#G01717, 6.500%, due 11/01/29		98,780		113,184
Federal National Mortgage Association,⁴0.875%, due 08/28/14²		830,000		834,050
1.625%, due 10/26/15		1,120,000		1,147,785
Federal National Mortgage Association Pools,⁴#AE0113, 4.000%, due 07/01/40		274,402		288,670
#932848, 4.000%, due 12/01/40		164,236		172,683
#AH3347, 4.000%, due 01/01/41		424,226		446,044
#AB2331, 4.000%, due 02/01/41		193,086		203,077
#AE9202, 4.000%, due 09/01/41		646,927		680,402
#AI0337, 4.000%, due 10/01/41		86,383		90,853
#AE0106, 4.500%, due 06/01/40		2,775		2,953
#AI2472, 4.500%, due 05/01/41		382,308		407,150
#AI6578, 4.500%, due 07/01/41		578,856		616,470
#AJ1415, 4.500%, due 09/01/41		344,157		366,520
#890209, 5.000%, due 05/01/40		416,801		450,485
#AD9114, 5.000%, due 07/01/40		484,639		526,907
5.000%, TBA		275,000		297,086
#AJ1422, 5.000%, due 09/01/41		371,759		402,617
#688066, 5.500%, due 03/01/33		230,415		254,976
#688314, 5.500%, due 03/01/33		272,243		301,263
#802481, 5.500%, due 11/01/34		399,185		438,369
#995018, 5.500%, due 06/01/38		35,700		38,948
#408267, 6.000%, due 03/01/28		23,237		26,027
#323715, 6.000%, due 05/01/29		20,277		22,602
#522564, 6.000%, due 07/01/29		62,825		70,021
#676733, 6.000%, due 01/01/33		170,723		190,683
#708631, 6.000%, due 06/01/33		40,483		45,342
#AE0405, 6.000%, due 08/01/37		291,550		324,306
#831730, 6.500%, due 09/01/36		240,806		270,464
#253824, 7.000%, due 03/01/31		8,540		9,857

	Face amount		Value
Federal National Mortgage Association Pools Re-REMIC,⁴Series 2005-29, Class KA, 4.500%, due 02/25/35	$	192,379	$	204,628
First Horizon Asset Securities, Inc., Series 2004-FL1, Class 1A1, 0.564%, due 02/25/35³		48,905		37,737
Government National Mortgage Association Pools, #738970, 3.500%, due 11/15/26		199,010		212,465
#G2 5256, 3.500%, due 12/20/26		350,000		374,320
#G2 5107, 4.000%, due 07/20/26		478,010		513,399
4.000%, TBA		175,000		187,715
4.500%, TBA		775,000		844,023
#G2 2687, 6.000%, due 12/20/28		32,215		36,637
#G2 2794, 6.000%, due 08/20/29		101,228		115,121
Total United States mortgage & agency debt securities				16,888,650
Total mortgage & agency debt securities (cost $17,008,650)				17,436,404
Municipal bonds: 1.39%
Chicago Transit Authority, Series 2008-A, 6.899%, due 12/01/40		60,000		70,853
Illinois State Taxable Pension, Series 2003, 5.100%, due 06/01/33		115,000		104,958
Los Angeles Unified School District, Series 2010, 6.758%, due 07/01/34		110,000		137,629
New Jersey State Turnpike Authority Revenue Bonds, Class F, 7.414%, due 01/01/40		30,000		42,788
New York State Urban Development Corp. Revenue Bonds, 5.770%, due 03/15/39		55,000		65,620
State of California, GO, 6.650%, due 03/01/22		30,000		34,921
7.300%, due 10/01/39		130,000		154,889
Total municipal bonds (cost $530,570)				611,658
US government obligations: 25.27%
US Treasury Bonds, 3.750%, due 08/15/41²		2,115,000		2,487,438
4.375%, due 05/15/41²		520,000		677,544

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Concluded)
US government obligations—(Concluded)
US Treasury Notes, 0.250%, due 10/31/13	$	3,420,000	$	3,420,533
0.250%, due 11/30/13²		795,000		795,093
0.875%, due 11/30/16		2,140,000		2,146,521
1.000%, due 10/31/16		610,000		615,910
2.000%, due 11/15/21		990,000		1,001,292
Total US government obligations (cost $11,041,310)				11,144,331
Non-US government obligations: 0.36%
Chile: 0.24%
Republic of Chile, 3.250%, due 09/14/21		100,000		103,350
Colombia: 0.12%
Republic of Colombia, 4.375%, due 07/12/21		50,000		53,500
Total Non-US government obligations (cost $148,930)				156,850
Supranational bond: 0.25%
European Investment Bank, 1.250%, due 09/17/13 (cost $109,624)		110,000		110,183
Total bonds (cost $41,387,298)				42,295,294
	Shares
Investment company: 0.48%
UBS High Yield Relationship Fund*⁵(cost $210,000)		7,858		213,419
Short-term investment: 11.93%
Investment company: 11.93%
UBS Cash Management Prime Relationship Fund⁵(cost $5,260,470)		5,260,470		5,260,470

	Number of contracts		Value
*Options purchased: 0.15%**
Call Options: 0.12%
10 Year US Treasury Notes, strike @ USD 132.00, expires February 2012		19	$	15,141
5 Year US Treasury Notes, strike @ USD 122.75, expires January 2012		57		36,961
				52,102
Put Options: 0.03%
10 Year US Treasury Notes, strike @ USD 128.00, expires February 2012		19		5,937
5 Year US Treasury Notes, strike @ USD 122.75, expires January 2012		57		8,016
				13,953
Total options purchased (cost $63,850)				66,055
	Shares
Investment of cash collateral from securities loaned: 0.13%
UBS Private Money Market Fund LLC⁵(cost $56,375)		56,375		56,375
Total investments: 108.61% (cost $46,977,993)				47,891,613
Liabilities, in excess of cash and other assets: (8.61)%				(3,795,225	)
Net assets: 100.00%			$	44,096,388

Notes to portfolio of investments

Aggregate cost for federal income tax purposes was substantially the same as for book purposes; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	1,159,042
Gross unrealized depreciation		(245,422	)
Net unrealized appreciation of investments	$	913,620

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 59.

* Non-income producing security.

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

¹ Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities are considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2011, the value of these securities amounted to $2,260,731 or 5.13% of net assets.

² Security, or portion thereof, was on loan at December 31, 2011.

³ Variable or floating rate security—The interest rate shown is the current rate as of December 31, 2011 and changes periodically.

⁴ On September 7, 2008, the Federal Housing Finance Agency placed the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association into conservatorship, and the US Treasury guaranteed the debt issued by those organizations.

⁵ The table below details the Fund's investments in funds advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Funds.

Security description	Value 06/30/11		Purchases during the six months ended 12/31/11		Sales during the six months ended 12/31/11		Net realized gain during the six months ended 12/31/11		Change in net unrealized appreciation/ (depreciation) during the six months ended 12/31/11			Value 12/31/11		Income earned from affiliate for the six months ended 12/31/11
UBS Cash Management Prime Relationship Fund	$	2,543,100	$	15,990,804	$	13,273,434	$	—	$	—		$	5,260,470	$	3,119
UBS Private Money Market Fund LLC^a		223,105		2,574,149		2,740,879		—		—			56,375		18
UBS High Yield Relationship Fund		1,439,092		210,000		1,419,474		6,953		(23,152	)		213,419		—
UBS Opportunistic Emerging Markets Debt Relationship Fund		493,162		—		496,720		106,746		(103,188	)		—		—
	$	4,698,459	$	18,774,953	$	17,930,507	$	113,699	$	(126,340	)	$	5,530,264	$	3,137

^a The adviser does earn a management fee from this affiliated fund, and any income earned is net of expenses. Please see the Notes to financial statements for further information.

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation/ (depreciation)
Goldman Sachs International	EUR	835,000	USD	1,079,822	03/09/12	$	(1,475	)
Goldman Sachs International	USD	1,758,254	EUR	1,340,000	03/09/12		(22,999	)
JPMorgan Chase Bank	EUR	1,340,000	USD	1,807,955	03/09/12		72,699
Net unrealized appreciation on forward foreign currency contracts						$	48,225

Futures contracts

	Expiration date	Proceeds			Value			Unrealized depreciation
US Treasury futures sell contracts:
US Ultra Bond Futures, 6 contracts (USD)	March 2012	$	(949,897	)	$	(961,125	)	$	(11,228	)
5 Year US Treasury Notes, 24 contracts (USD)	March 2012		(2,954,057	)		(2,958,188	)		(4,131	)
10 Year US Treasury Notes, 4 contracts (USD)	March 2012		(523,289	)		(524,500	)		(1,211	)
Net unrealized depreciation on futures contracts								$	(16,570	)

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

Credit default swaps on corporate issues—buy protection¹

Counterparty	Notional amount		Termination date	Payments made by the Fund²			Payments received by the Fund		Upfront payments received		Value			Unrealized appreciation/ (depreciation)
Deutsche Bank AG	USD	225,000	03/20/14		1.000	%		—³	$	1,958	$	(2,757	)	$	(799	)
Deutsche Bank AG	USD	250,000	12/20/15		1.000			—⁴		5,969		(3,310	)		2,659
									$	7,927	$	(6,067	)	$	1,860

¹ If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation.

² Payments made are based on the notional amount.

³ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Motorola Solutions, Inc. 6.500% bond, due 09/01/25.

⁴ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Amgen, Inc. 4.850% bond, due 11/18/14.

Credit default swaps on corporate issues—sell protection¹

Counterparty	Notional amount		Termination date	Payments made by the Fund		Payments received by the Fund²			Upfront payments (made)/ received			Value		Unrealized appreciation/ (depreciation)			Credit spread³
Deutsche Bank AG	USD	250,000	12/20/15		—⁴		1.000	%	$	(5,716	)	$	2,795	$	(2,921	)		0.720	%
Deutsche Bank AG	USD	150,000	03/20/16		—⁵		1.000			2,683			1,286		3,969			0.799
									$	(3,033	)	$	4,081	$	1,048

¹ If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation.

² Payments received are based on the notional amount.

³ Credit spreads, represented in absolute terms, utilized in determining the market value as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default or other credit event occurring for the credit derivative. The credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as "Defaulted" indicates a credit event has occurred for the referenced entity.

⁴ Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the Pfizer, Inc. 4.650% bond, due 03/01/18.

⁵ Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the Motorola Solutions, Inc. 6.500% bond, due 09/01/25.

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

Concluded

The following is a summary of the inputs used as of December 31, 2011 in valuing the Fund's investments:

Description	Unadjusted quoted prices in active markets for identical investments (Level 1)			Other significant observable inputs (Level 2)			Unobservable inputs (Level 3)		Total
Corporate bonds	$	—		$	9,667,438			—	$	9,667,438
Asset-backed securities		—			409,378			—		409,378
Commercial mortgage-backed securities		—			2,759,052			—		2,759,052
Mortgage & agency debt securities		—			17,436,404			—		17,436,404
Municipal bonds		—			611,658			—		611,658
US government obligations		—			11,144,331			—		11,144,331
Non-US government obligations		—			156,850			—		156,850
Supranational bond		—			110,183			—		110,183
Investment company		—			213,419			—		213,419
Short-term investment		—			5,260,470			—		5,260,470
Options purchased		66,055			—			—		66,055
Investment of cash collateral from securities loaned		—			56,375			—		56,375
Forward foreign currency contracts		—			48,225			—		48,225
Futures contracts		(16,570	)		—			—		(16,570	)
Swap agreements		—			(1,986	)		—		(1,986	)
Total	$	49,485		$	47,871,797			—	$	47,921,282

See accompanying notes to financial statements.
15

UBS Fixed Income Opportunities Fund

Portfolio performance

For the six months ended December 31, 2011, Class A shares of UBS Fixed Income Opportunities Fund (the "Fund") declined 0.33% (Class A shares declined 4.83% after the deduction of the maximum sales charge), while Class Y shares declined 0.19%. For comparison purposes, the BofA Merrill Lynch US Dollar 3-Month LIBOR Constant Maturity Index (the "Index"), returned 0.12% 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 18; please note that the Fund's returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares, while the Index returns do not reflect the deduction of fees and expenses.)

The Fund generated a slightly negative return during the reporting period.

The Fund extensively utilizes derivatives as part of its investment strategy across global interest rate, credit and currency markets. To facilitate specific duration and yield curve strategies, the Fund utilized different interest rate derivatives, including but not limited to futures, options, swaps and swaptions. Credit default swaps and credit default swaptions were used to help implement credit-related investment strategies as part of the Fund's sector allocation and security selection. Lastly, the Fund utilized currency forwards and swaps as part of its currency management strategy. Derivatives play a role in the overall portfolio construction process but are just one of the tools we utilize to manage the Fund's overall risk exposure and to implement the aforementioned strategies. With that in mind, overall, the Fund's duration and yield curve positioning, as well as currency allocations, were positive contributors to performance, while sector allocation and security selection in certain spread sectors detracted from performance.

Portfolio performance summary¹

What worked

• The Fund's yield curve and duration positioning contributed to performance.

– We had a yield curve flattening bias in the portfolio for much of the reporting period, as we expected longer-term rates to decline and the difference between short- and long-term rates to narrow. This was a positive for results when the yield curve flattened during the period.

– We tactically adjusted the Fund's duration, at times moving to short and long positions. In aggregate, duration positioning was additive for performance. (Duration measures the price sensitivity of a portfolio to interest rate changes.)

• Overall, currency positioning was beneficial for performance. The Fund's active currency decisions in several developed markets, including short positions in the euro and Australian dollar, contributed to results.

What didn't work

• Security selection of investment grade bonds issued by banks detracted from results. We emphasized more liquid, higher beta (higher risk) US banks. The spreads of these bonds widened due to fears of contagion from the European sovereign debt crisis, uncertainties regarding new financial regulations and ongoing weakness

¹ For a detailed commentary on the market environment in general during the reporting period, see page 2.

UBS Fixed Income Opportunities Fund

in the housing market. (Spread measures the difference between the yields paid on non-government securities versus those paid on government securities of comparable duration.)

• The Fund's overweight to several spread sectors (non-US Treasuries) was negative for results during the reporting period.

– An overweight to investment grade financials was detrimental for results, as they were among the weakest performing sectors during the reporting period.

– An allocation to high yield bonds—in particular securities rated BB and below—hurt performance. While they performed well during the second half of the period, this performance was not enough to offset the weak results they posted in July and August, when investor risk aversion rose sharply.

– Exposure to emerging markets debt was a drag on results.

– A small allocation to commercial mortgage-backed securities (CMBS) that were lower in the capital structure was not rewarded. Their spreads widened at times, given several investor flights-to-quality.

This letter is intended to assist shareholders in understanding how the Fund performed for the six months ended December 31, 2011. The views and opinions in the letter were current as of February 15, 2012. They are not guarantees of future 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.

UBS Fixed Income Opportunities Fund

Average annual total returns for periods ended 12/31/11 (unaudited)

	6 months			1 year			Inception¹
Before deducting maximum sales charge
Class A²		(0.33	)%		(1.75	)%		0.40	%
Class C³		(0.58	)		(2.21	)		(0.14	)
Class Y⁴		(0.19	)		(1.53	)		0.71
After deducting maximum sales charge
Class A²		(4.83	)%		(6.17	)%		(3.76	)%
Class C³		(1.30	)		(2.91	)		(0.14	)
BofA Merrill Lynch US Dollar 3-Month LIBOR Constant Maturity Index⁵		0.12	%		0.27	%		0.27	%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2011 prospectuses were as follows: Class A—1.47% and 1.03%; Class C—2.02% and 1.53%; Class Y—1.37% and 0.78%. 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 UBS Global Asset Management (Americas) Inc., the Fund's investment advisor ("UBS Global AM (Americas)" or 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 expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and security loan fees for securities sold short) to the extent necessary so that the Fund's ordinary operating expenses (excluding expense incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and security loan fees for securities sold short), through the period ending October 27, 2012, do not exceed 0.95% for Class A shares, 1.45% for Class C shares and 0.70% for Class Y shares. 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 shares of UBS Fixed Income Opportunities Fund and the index is November 29, 2010.

² Maximum sales charge for Class A shares is 4.50%. Class A shares bear ongoing 12b-1 service fees.

³ 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 BofA Merrill Lynch US Dollar 3-Month LIBOR Constant Maturity Index is designed to track the performance of a synthetic asset paying LIBOR to a stated maturity. The index is based on the assumed purchase at par of a synthetic instrument having exactly its stated maturity and with a coupon equal to that day's fixing rate. That issue is assumed to be sold the following business day (priced at a yield equal to the current day fixing rate) and rolled into a new instrument. Investors should note that indices do not reflect the deduction of fees and expenses.

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 period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://globalam-us.ubs.com/corpweb/performance.do.

UBS Fixed Income Opportunities Fund

Top ten long-term fixed income holdings (unaudited)¹

As of December 31, 2011

	Percentage of net assets
US Treasury Bonds, PO, 4.845%, due 05/15/40		3.0	%
Merrill Lynch & Co., Inc., 6.400%, due 08/28/17		2.5
JP Morgan Chase Capital XXVII, 7.000%, due 11/01/39		2.1
Citigroup, Inc., 3.625%, due 11/30/17		1.8
Santander US Debt SA Unipersonal, 3.724%, due 01/20/15		1.5
Morgan Stanley Re-REMIC Trust, Series 2009-GG10, Class A4B, 5.790%, due 08/12/45		1.4
US Treasury Bonds, 3.500%, due 02/15/39		1.4
Ford Motor Credit Co. LLC, 8.700%, due 10/01/14		1.3
Intelsat Jackson Holdings SA, 11.250%, due 06/15/16		1.2
Petrobras International Finance Co., 5.375%, due 01/27/21		1.2
Total		17.4	%

Industry diversification (unaudited)²

As a percentage of net assets as of December 31, 2011

Bonds
Corporate bonds
Building materials	1.82	%
Capital markets	1.55
Chemicals	2.35
Commercial banks	8.56
Commercial services & supplies	1.22
Consumer finance	1.90
Containers & packaging	0.38
Diversified financial services	12.96
Diversified telecommunication services	2.18
Electric utilities	1.55
Health care providers & services	0.62
Hotels, restaurants & leisure	3.02
Independent power producers & energy traders	0.55
Insurance	1.63
Leisure equipment & products	0.25
Machinery	0.63
Media	1.84
Metals & mining	2.18
Oil, gas & consumable fuels	6.72
Paper & forest products	0.51
Road & rail	0.03
Specialty retail	0.34
Telecommunications	0.25
Textiles, apparel & luxury goods	0.22
Transportation infrastructure	0.53
Wireless telecommunication services	1.01
Total corporate bonds	54.80	%
Asset-backed securities	3.53
Collateralized debt obligations	2.34
Commercial mortgage-backed securities	8.17
Mortgage & agency debt securities	1.50
Municipal bonds	3.82
US government obligations	4.37
Total bonds	78.53	%
Investment company
UBS Opportunistic Emerging Markets Debt Relationship Fund	18.94
Short-term investment	2.37
Options purchased	4.00
Total investments	103.84	%
Liabilities, in excess of cash and other assets	(3.84	)
Net assets	100.00	%

Country exposure by issuer, top five (unaudited)¹

As of December 31, 2011

	Percentage of net assets
United States		53.2	%
United Kingdom		6.7
Netherlands		2.4
Luxembourg		2.2
Ireland		2.2
Total		66.7	%

¹ Figures represent the direct investments of UBS Fixed Income Opportunities Fund. Figures would be different if a breakdown of the underlying investment company was included.

² Figures represent the industry breakdown of direct investments of UBS Fixed Income Opportunities Fund. Figures would be different if a breakdown of the underlying investment company's industry diversification and derivatives exposure was included.

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds: 78.53%
Corporate bonds: 54.80%
Australia: 1.27%
Leighton Finance Ltd., 9.500%, due 07/28/14	AUD	500,000	$	535,212
Sydney Airport Finance Co. Pty Ltd., 8.000%, due 07/06/15		500,000		532,848
Total Australia corporate bonds				1,068,060
Austria: 0.51%
PE Paper Escrow GmbH, 12.000%, due 08/01/14¹	$	400,000		426,000
Brazil: 1.25%
Petrobras International Finance Co., 5.375%, due 01/27/21		1,000,000		1,047,690
Canada: 2.06%
Nova Chemicals Corp., 8.625%, due 11/01/19		800,000		882,000
Rogers Communications, Inc., 5.340%, due 03/22/21	CAD	800,000		846,646
Total Canada corporate bonds				1,728,646
France: 0.35%
Credit Agricole SA, 6.637%, due 05/31/17^1,2,3	$	500,000		290,000
Germany: 1.56%
HeidelbergCement Finance BV, 8.500%, due 10/31/19	EUR	500,000		643,889
Unitymedia GmbH, 9.625%, due 12/01/19⁴		500,000		668,157
Total Germany corporate bonds				1,312,046
Ireland: 2.15%
Allied Irish Banks PLC, 1.641%, due 04/11/12²		200,000		244,613
4.500%, due 10/01/12		200,000		235,554
Ardagh Packaging Finance PLC, 7.375%, due 10/15/17⁴		250,000		317,091
The Governor & Co. of the Bank of Ireland, 2.750%, due 03/02/12¹	$	500,000		495,656
4.000%, due 01/28/15	EUR	250,000		249,033
Irish Life & Permanent PLC, 3.600%, due 01/14/13¹	$	300,000		262,373
Total Ireland corporate bonds				1,804,320
Italy: 0.25%
Wind Acquisition Finance SA, 11.750%, due 07/15/17⁴	EUR	200,000		212,904

	Face amount		Value
Luxembourg: 2.24%
ArcelorMittal, 5.500%, due 03/01/21	$	900,000	$	826,118
Intelsat Jackson Holdings SA, 11.250%, due 06/15/16		1,000,000		1,050,625
Total Luxembourg corporate bonds				1,876,743
Mexico: 1.05%
Cemex Finance LLC, 9.500%, due 12/14/16¹		1,000,000		877,500
Netherlands: 2.37%
Case New Holland, Inc., 7.750%, due 09/01/13		500,000		531,250
EDP Finance BV, 4.750%, due 09/26/16	EUR	750,000		805,671
Ziggo Bond Co. BV, 8.000%, due 05/15/18⁴		500,000		653,596
Total Netherlands corporate bonds				1,990,517
Norway: 0.94%
Eksportfinans ASA, 5.000%, due 02/14/12	$	232,000		230,969
5.500%, due 05/25/16		600,000		553,238
Total Norway corporate bonds				784,207
South Africa: 0.93%
AngloGold Ashanti Holdings PLC, 5.375%, due 04/15/20		500,000		496,727
Edcon Proprietary Ltd., 4.676%, due 06/15/14^2,4	EUR	300,000		286,353
Total South Africa corporate bonds				783,080
Spain: 1.77%
Cirsa Funding Luxembourg SA, 8.750%, due 05/15/18⁴		200,000		212,257
Santander US Debt SA Unipersonal, 3.724%, due 01/20/15¹	$	1,400,000		1,271,221
Total Spain corporate bonds				1,483,478
United Kingdom: 5.64%
Barclays Bank PLC, 5.140%, due 10/14/20		1,000,000		846,487
CEVA Group PLC, 8.500%, due 12/01/14⁴	EUR	500,000		440,045
FCE Bank PLC, 7.125%, due 01/15/13		500,000		661,685
Imperial Tobacco Finance PLC, 4.500%, due 07/05/18		400,000		531,942
Ineos Group Holdings PLC, 7.875%, due 02/15/16⁴		500,000		478,872

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Concluded)
United Kingdom—(Concluded)
Lloyds TSB Bank PLC, 6.375%, due 01/21/21	$	250,000	$	250,534
6.500%, due 03/24/20	EUR	1,000,000		1,015,404
PPL WEM Holdings PLC, 3.900%, due 05/01/16¹	$	500,000		501,204
Total United Kingdom corporate bonds				4,726,173
United States: 30.46%
Ally Financial, Inc., 3.612%, due 12/01/12⁵		600,000		564,000
American International Group, Inc., 4.250%, due 09/15/14		750,000		728,346
Anadarko Petroleum Corp., 8.700%, due 03/15/19		500,000		638,350
Caesars Entertainment Operating Co., Inc., 11.250%, due 06/01/17		750,000		795,938
Chesapeake Energy Corp., 6.500%, due 08/15/17		750,000		798,750
CIT Group, Inc., 7.000%, due 05/01/15		500,000		501,000
Citigroup, Inc., 3.625%, due 11/30/17²	EUR	1,500,000		1,546,129
5.000%, due 09/15/14	$	750,000		742,281
Discover Bank, 8.700%, due 11/18/19		500,000		570,092
Discover Financial Services, 10.250%, due 07/15/19		300,000		365,687
DISH DBS Corp., 6.625%, due 10/01/14		450,000		480,375
Dow Chemical Co., 7.375%, due 03/01/23		500,000		614,870
El Paso Corp., 7.250%, due 06/01/18		300,000		328,469
Energy Transfer Partners LP, 6.050%, due 06/01/41		680,000		666,773
Exelon Generation Co. LLC, 6.200%, due 10/01/17		400,000		459,342
FireKeepers Development Authority, 13.875%, due 05/01/15¹		750,000		851,250
Ford Motor Credit Co. LLC, 8.700%, due 10/01/14		1,000,000		1,116,604
Forest Oil Corp., 8.500%, due 02/15/14		500,000		545,000
Frontier Communications Corp., 8.250%, due 05/01/14		750,000		781,875
GenOn Americas Generation LLC, 8.500%, due 10/01/21		850,000		792,625
Goldman Sachs Group, Inc., 4.100%, due 11/03/15	CAD	330,000		308,695
5.000%, due 05/03/18		500,000		460,049

	Face amount		Value
HCA Holdings, Inc., 6.750%, due 07/15/13	$	500,000	$	516,250
Hertz Corp., 8.875%, due 01/01/14		22,000		22,110
HSBC USA, Inc., 5.000%, due 09/27/20		750,000		708,755
International Lease Finance Corp., 8.625%, due 09/15/15		1,000,000		1,025,000
JP Morgan Chase Capital XXVII, 7.000%, due 11/01/39		1,750,000		1,760,938
Kinder Morgan Finance Co. ULC, 5.700%, due 01/05/16		750,000		766,875
Merrill Lynch & Co., Inc., 6.400%, due 08/28/17		2,200,000		2,130,269
MGM Resorts International, 13.000%, due 11/15/13		750,000		890,625
Nationwide Mutual Insurance Co., 9.375%, due 08/15/39¹		250,000		302,114
Pacific Life Insurance Co., 9.250%, due 06/15/39¹		250,000		332,917
Petrohawk Energy Corp., 7.250%, due 08/15/18		750,000		843,750
Quiksilver, Inc., 6.875%, due 04/15/15		200,000		185,750
Regions Financial Corp., 5.750%, due 06/15/15		250,000		238,750
Ryerson, Inc., 12.000%, due 11/01/15		500,000		505,000
Univision Communications, Inc., 7.875%, due 11/01/20¹		400,000		406,000
Wachovia Capital Trust III, 5.570%, due 02/09/12^2,3		300,000		251,250
Total United States corporate bonds				25,542,853
Total corporate bonds (cost $48,890,618)				45,954,217
Asset-backed securities: 3.53%
United States: 3.53%
Accredited Mortgage Loan Trust, Series 2006-1, Class A3, 0.474%, due 04/25/36²		359,774		292,873
Citigroup Mortgage Loan Trust, Inc., Series 2006-WFH2, Class A2A, 0.444%, due 08/25/36²		718,808		486,035
Delta Air Lines Pass Through Trust, Series 2007-1, Class A, 6.821%, due 08/10/22		378,170		394,696
First Franklin Mortgage Loan Asset Backed Certificates, Series 2005-FF10, Class A4, 0.614%, due 11/25/35²		1,120,647		864,759

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Asset-backed securities—(Concluded)
United States—(Concluded)
Saxon Asset Securities Trust, Series 2006-2, Class A3C, 0.444%, due 09/25/36²	$	1,195,710	$	918,267
Total asset-backed securities (cost $3,144,621)				2,956,630
Collateralized debt obligations: 2.34%
United Kingdom: 0.68%
Jubilee CDO BV, Series III X, Class A2, 2.679%, due 04/20/17^†2	EUR	500,000		571,824
United States: 1.66%
GSC Partners CDO Fund Ltd., Series 2003-4A, Class B, 2.343%, due 12/16/15^†1,2,6	$	500,000		477,500
Race Point CLO, Series 2X, Class B1, 1.957%, due 05/15/15^†2,4		1,000,000		909,517
Total United States collateralized debt obligations				1,387,017
Total collateralized debt obligations (cost $2,085,742)				1,958,841
Commercial mortgage-backed securities: 8.17%
United States: 8.17%
Banc of America Commercial Mortgage, Inc., Series 2007-2, Class AM, 5.642%, due 04/10/49²		500,000		466,689
Commercial Mortgage Loan Trust, Series 2008-LS1, Class AM, 6.007%, due 12/10/49²		500,000		463,694
Commercial Mortgage Pass Through Certificates, Series 2006-C8, Class AM, 5.347%, due 12/10/46		150,000		146,281
CW Capital Cobalt Ltd., Series 2007-C3, Class AJ, 5.816%, due 05/15/46²		575,000		275,641
Series 2007-C3, Class AM, 5.816%, due 05/15/46²		400,000		320,490
GE Capital Commercial Mortgage Corp., Series 2007-C1, Class AM, 5.606%, due 12/10/49²		1,000,000		820,727

	Face amount		Value
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class AM, 5.475%, due 03/10/39	$	750,000	$	704,433
Series 2007-GG11, Class AM, 5.867%, due 12/10/49²		500,000		443,505
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2007-LD12, Class AM, 6.058%, due 02/15/51²		1,000,000		930,519
Morgan Stanley Capital I, Series 2006-HQ8, Class A3, 5.470%, due 03/12/44²		240,244		241,946
Morgan Stanley Re-REMIC Trust, Series 2009-GG10, Class A4B, 5.790%, due 08/12/45^1,2		1,225,000		1,203,391
Wachovia Bank Commercial Mortgage Trust, Series 2007-C33, Class AM, 5.899%, due 02/15/51²		1,000,000		837,060
Total commercial mortgage-backed securities (cost $7,650,110)				6,854,376
Mortgage & agency debt securities: 1.50%
United Kingdom: 0.36%
Holmes Master Issuer PLC, Series 2011-1A, Class A2, 1.753%, due 10/15/54^1,2		300,000		298,677
United States: 1.14%
Federal National Mortgage Association,⁷3.110%, due 10/09/19^5,8		1,250,000		961,081
Total mortgage & agency debt securities (cost $1,182,735)				1,259,758
Municipal bonds: 3.82%
Los Angeles Unified School District, Series 2010, 6.758%, due 07/01/34		500,000		625,585
State of California, GO Bonds, 7.300%, due 10/01/39		800,000		953,160
State of Illinois, GO bonds, Series 2010, 4.421%, due 01/01/15		225,000		234,049
5.365%, due 03/01/17		800,000		858,216
5.665%, due 03/01/18		500,000		535,515
Total municipal bonds (cost $2,883,520)				3,206,525

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Concluded)
US government obligations: 4.37%
US Treasury Bonds, 3.500%, due 02/15/39⁸	$	1,000,000	$	1,124,844
US Treasury Bonds, PO 4.845%, due 05/15/40^5,8		6,000,000		2,536,506
Total US government obligations (cost $2,509,263)				3,661,350
Total bonds (cost $68,346,609)				65,851,697
	Shares
Investment company: 18.94%
UBS Opportunistic Emerging Markets Debt Relationship Fund*⁹(cost $15,000,000)		903,948		15,878,211
Short-term investment: 2.37%
Investment company: 2.37%
UBS Cash Management Prime Relationship Fund⁹(cost $1,988,888)		1,988,888		1,988,888
	Number of contracts
*Options purchased: 4.00%**
Call Options: 0.38%
10 Year US Treasury Notes, strike @ USD 132.00, expires February 2012		150		119,531
5 Year US Treasury Notes, strike @ USD 122.75, expires January 2012		214		138,766
5 Year US Treasury Notes, strike @ USD 123.75, expires February 2012		242		58,609
				316,906
Put Options: 0.48%
10 Year US Treasury Notes, strike @ USD 131.00, expires January 2012		105		77,109
10 Year US Treasury Notes, strike @ USD 128.00, expires February 2012		150		46,875
30 Year US Treasury Bond, strike @ USD 145.00, expires January 2012		60		125,625

	Number of contracts		Value
5 Year US Treasury Notes, strike @ USD 122.75, expires January 2012		214	$	30,094
90 Day Euro-Dollar Time Deposit, strike @ USD 99.13, expires January 2012		126		787
90 Day Euro-Dollar Time Deposit, strike @ USD 99.38, expires January 2012		495		46,406
90 Day Euro-Dollar Time Deposit, strike @ USD 98.63, expires March 2012		253		11,069
90 Day Euro-Dollar Time Deposit, strike @ USD 99.50, expires March 2012		105		43,969
90 Day Euro-Dollar Time Deposit, strike @ USD 98.00, expires December 2012		130		18,688
				400,622
	Notional Amount
Options Purchased on Credit Default Swap on Credit Index^†: 0.92%
Expiring 03/21/12. If exercised the 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 CDX.NA.HY Series 17 Index and the Fund pays fixed rate of 5.000%. Underlying credit default swap terminating 12/20/16. European style. Counterparty: Morgan Stanley,	$	23,000,000		773,829
Options Purchased on Interest Rate Swaps^†: 2.22%
Expiring 02/11/15. If exercised the Fund pays semi annually 6.000% and receives quarterly floating 3 month LIBOR terminating 04/11/25. European style. Counterparty: Deutsche Bank AG		3,050,000		32,991

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Notional Amount		Value
Options purchased—(Concluded)
Expiring 06/14/13. If exercised the Fund pays quarterly floating 3 month LIBOR and receives semi annually 3.410% terminating 06/18/18. European style. Counterparty: Deutsche Bank AG	$	8,240,000	$	667,339
Expiring 06/14/13. If exercised the Fund pays semi annually 3.410% and receives quarterly floating 3 month LIBOR terminating 06/18/18. European style. Counterparty: Deutsche Bank AG		8,240,000		21,844
Expiring 06/14/21. If exercised the Fund pays quarterly floating 3 month LIBOR and receives semi annually 5.080% terminating 06/16/26. European style. Counterparty: Deutsche Bank AG		4,050,000		378,571
Expiring 06/14/21. If exercised the Fund pays semi annually 5.080% and receives quarterly floating 3 month LIBOR terminating 06/16/26. European style. Counterparty: Deutsche Bank AG		4,050,000		95,203

	Notional Amount		Value
Expiring 08/12/14. If exercised the Fund pays quarterly floating 3 month EURIBOR and receives semi annually 2.325% terminating 10/12/15. European style. Counterparty: Barclays Bank PLC	EUR	32,000,000	$	337,841
Expiring 12/24/13. If exercised the Fund pays semi annually 2.140% and receives semi annually floating 6 month LIBOR terminating 12/30/33. European style. Counterparty: JP Morgan Chase Bank	JPY	670,000,000		331,816
				1,865,605
Total options purchased (cost $3,423,336)				3,356,962
Total investments: 103.84% (cost $88,758,833)				87,075,758
Liabilities, in excess of cash and other assets: (3.84%)				(3,219,326	)
Net assets: 100.00%			$	83,856,432

Notes to portfolio of investments

Aggregate cost for federal income tax purposes was substantially the same as for book purposes; and net unrealized depreciation consisted of:

Gross unrealized appreciation	$	3,628,662
Gross unrealized depreciation		(5,311,737	)
Net unrealized depreciation of investments	$	(1,683,075	)

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 59.

* Non-income producing security.

^† Holding is illiquid. At December 31, 2011, the value of these securities and other derivative instruments amounted to $7,406,473 or 8.83% of net assets.

² Variable or floating rate security—The interest rate shown is the current rate as of December 31, 2011 and changes periodically.

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

⁴ Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. At December 31, 2011, the value of these securities amounted to $4,178,792 or 4.98% of net assets.

⁵ Rate shown reflects annualized yield at December 31, 2011 on zero coupon bond.

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2011 (unaudited)

⁶ This security, which represents 0.57% of net assets as of December 31, 2011, is considered restricted. (See restricted security table below for more information.)

Restricted security				Acquisition date				Acquisition cost				Acquisition cost as a percentage of net assets				Value 12/31/11				Value as a percentage of net assets
GSC Partners CDO Fund Ltd., Series 2003-4A, Class B, 2.343%, due 12/16/15				12/14/10				$	455,500				0.54	%		$	477,500				0.57	%

⁷ On September 7, 2008, the Federal Housing Finance Agency placed the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association into conservatorship, and the US Treasury guaranteed the debt issued by those organizations.

⁸ All or a portion of these securities have been designated as collateral for open swap positions.

⁹ The table below details the Fund's investments in funds advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Funds.

Security description	Value 06/30/11		Purchases during the six months ended 12/31/11		Sales during the six months ended 12/31/11		Net realized gain during the six months ended 12/31/11		Change in net unrealized appreciation/ (depreciation) during the six months ended 12/31/11		Value 12/31/11		Income earned from affiliate for the six months ended 12/31/11
UBS Cash Management Prime Relationship Fund	$	4,839,734	$	29,931,348	$	32,782,194		—	$	—	$	1,988,888	$	2,174
UBS Opportunistic Emerging Markets Debt Relationship Fund		15,623,479		—		—		—		254,732		15,878,211		—
	$	20,463,213	$	29,931,348	$	32,782,194		—	$	254,732	$	17,867,099	$	2,174

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation/ (depreciation)
JPMorgan Chase Bank	AUD	3,735,000	USD	3,708,967	03/01/12	$	(86,135	)
JPMorgan Chase Bank	CAD	1,665,000	USD	1,617,052	03/01/12		(15,173	)
JPMorgan Chase Bank	EUR	470,000	USD	618,134	03/01/12		9,553
JPMorgan Chase Bank	GBP	320,000	USD	499,786	03/01/12		3,097
JPMorgan Chase Bank	JPY	65,300,000	USD	841,706	03/01/12		(7,503	)
JPMorgan Chase Bank	USD	1,475,044	EUR	1,120,000	03/01/12		(24,809	)
Morgan Stanley & Co., Inc.	EUR	13,440,000	USD	18,049,920	03/01/12		647,103
Net unrealized appreciation on forward foreign currency contracts						$	526,133

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2011 (unaudited)

Futures contracts

	Expiration date	Cost/ (proceeds)			Value			Unrealized appreciation/ (depreciation)
US Treasury futures buy contracts:
US Ultra Bond Futures, 99 contracts (USD)	March 2012	$	15,523,752		$	15,858,563		$	334,811
10 Year US Treasury Notes, 22 contracts (USD)	March 2012		2,873,098			2,884,750			11,652
US Treasury futures sell contracts:
US Long Bond, 6 contracts (USD)	March 2012		(846,178	)		(868,875	)		(22,697	)
2 Year US Treasury Notes, 58 contracts (USD)	March 2012		(12,788,636	)		(12,791,719	)		(3,083	)
5 Year US Treasury Notes, 140 contracts (USD)	March 2012		(17,236,600	)		(17,256,094	)		(19,494	)
10 Year US Treasury Notes, 88 contracts (USD)	March 2012		(11,507,170	)		(11,539,000	)		(31,830	)
Interest rate futures buy contracts:
90 Day Euro-Dollar Futures, 78 contracts (USD)	September 2013		19,345,374			19,345,950			576
90 Day Euro-Dollar Futures, 78 contracts (USD)	March 2014		19,292,478			19,318,650			26,172
Interest rate futures sell contracts:
90 Day Euro-Dollar Futures, 156 contracts (USD)	December 2013		(38,625,343	)		(38,670,450	)		(45,107	)
Euro-Bobl, 16 contracts (EUR)	March 2012		(2,531,631	)		(2,590,778	)		(59,147	)
Euro-Bund, 14 contracts (EUR)	March 2012		(2,424,971	)		(2,519,335	)		(94,364	)
Net unrealized appreciation on futures contracts								$	97,489

Currency swap agreements

Counterparty	Pay currency	Pay contracts		Receive currency	Receive contracts		Termination date	Pay rate			Receive rate			Upfront payments (made)/ received			Value^†			Unrealized appreciation/ (depreciation)
Deutsche
Bank AG	USD		2,700,000	EUR		1,964,350	03/16/40		0.555	%¹		1.423	%²	$	(17,080	)	$	(20,406	)	$	(37,486	)
Deutsche Bank AG	USD		3,675,250	EUR		2,701,397	01/13/41		0.398¹			1.570²			544,275			18,030			562,305
Deutsche Bank AG	EUR		1,964,350	USD		2,700,000	03/16/20		1.423²			0.555¹			1,574			69,953			71,527
Deutsche Bank AG	EUR		2,701,397	USD		3,675,250	01/13/21		1.570²			0.398¹			(544,275	)		60,815			(483,460	)
Merrill Lynch International	USD		6,417,932	CAD		6,678,500	03/16/20		0.555¹			1.279³			106,250			150,219			256,469
Merrill Lynch International	CAD		6,678,500	USD		6,417,932	03/16/40		1.279³			0.555¹			(141,380	)		(155,916	)		(297,296	)
														$	(50,636	)	$	122,695		$	72,059

¹Rate based on 3 month USD LIBOR.

²Rate based on 3 month EURIBOR.

³Rate based on 3 month Canadian Bankers Acceptance Rate.

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2011 (unaudited)

Interest rate swap agreements

Counterparty	Notional amount		Termination date	Payments made by the Fund¹			Payments received by the Fund¹			Upfront payments (made)/ received			Value			Unrealized appreciation/ (depreciation)
Barclays Bank PLC	USD	102,000,000	06/20/21		0.285	%²		0.563	%³	$	—		$	320,702		$	320,702
Barclays Bank PLC	USD	1,470,000	06/16/26		3.624			—⁴			—			(21,627	)		(21,627	)
Citibank, N.A.	USD	1,860,000	02/15/36		4.668			0.453³			555,373			(762,304	)		(206,931	)
Credit Suisse International	EUR	740,000	04/27/22		—⁵			3.865			(88,207	)		120,137			31,930
Credit Suisse International	USD	2,650,000	12/08/16		0.449³			1.194			—			17,333			17,333
Deutsche Bank AG	AUD	2,840,000	11/02/21		—⁶			6.585			—			180,604			180,604
Deutsche Bank AG	CAD	11,600,000	03/10/13		1.279⁷			1.875			41,249			160,029			201,278
Deutsche Bank AG	CAD	10,350,000	03/10/16		2.485			1.279⁷			(134,496	)		(526,193	)		(660,689	)
Deutsche Bank AG	CAD	2,850,000	03/10/21		1.279⁷			3.260			76,335			277,892			354,227
Deutsche Bank AG	KRW	2,585,000,000	01/26/21		4.810			—⁸			—			(92,050	)		(92,050	)
Deutsche Bank AG	USD	3,000,000	12/15/15		1.521			0.546³			(41,000	)		(62,690	)		(103,690	)
Deutsche Bank AG	USD	1,250,000	09/23/20		2.690			0.571³			(23,000	)		(92,707	)		(115,707	)
Deutsche Bank AG	USD	1,450,000	02/15/36		3.630			0.453³			(50,000	)		(310,664	)		(360,664	)
Deutsche Bank AG	USD	4,550,000	05/15/38		4.413			0.453³			124,000			(1,675,338	)		(1,551,338	)
Deutsche Bank AG	USD	875,000	05/15/40		3.470			0.453³			(157,000	)		(255,977	)		(412,977	)
Deutsche Bank AG	USD	695,000	05/15/40		4.560			0.453³			—			(510,663	)		(510,663	)
Deutsche Bank AG	USD	1,250,000	09/17/40		3.473			0.559³			(83,000	)		(243,405	)		(326,405	)
JPMorgan Chase Bank	AUD	2,585,000	01/27/21		—⁶			6.465			—			153,004			153,004
JPMorgan Chase Bank	CAD	6,125,000	11/02/14		—⁹			2.775			—			192,743			192,743
JPMorgan Chase Bank	CAD	5,490,000	11/02/17		3.500			—⁹			—			(524,899	)		(524,899	)
JPMorgan Chase Bank	CAD	1,550,000	11/02/22		—⁹			4.145			—			260,999			260,999
JPMorgan Chase Bank	EUR	6,100,000	04/27/22		—⁵			3.865			—			990,321			990,321
JPMorgan Chase Bank	EUR	2,910,000	04/27/42		3.919			—⁵			—			(1,034,043	)		(1,034,043	)
JPMorgan Chase Bank	USD	4,500,000	02/18/16		2.532			0.471³			—			(312,765	)		(312,765	)
Merrill Lynch International	AUD	175,000	02/15/21		—⁶			6.635			—			11,454			11,454
Merrill Lynch International	CAD	2,400,000	04/02/21		3.725			1.281⁷			—			(342,101	)		(342,101	)
Merrill Lynch International	CAD	3,000,000	04/02/31		1.281⁷			4.310			5,192			729,305			734,497
Merrill Lynch International	CAD	1,200,000	04/02/41		4.208			1.281⁷			—			(389,565	)		(389,565	)
Merrill Lynch International	JPY	841,000,000	04/26/13		0.334¹⁰			0.451			—			10,439			10,439
Merrill Lynch International	JPY	676,000,000	04/26/16		0.706			0.334¹⁰			—			(102,204	)		(102,204	)
Merrill Lynch International	JPY	176,000,000	04/26/21		0.334¹⁰			1.334			—			91,366			91,366
Merrill Lynch International	KRW	3,015,000,000	11/02/21		4.840			—⁸			—			(109,958	)		(109,958	)
Merrill Lynch International	USD	42,000,000	06/20/12		0.563³			0.285²			—			1,565			1,565
Merrill Lynch International	USD	15,650,000	03/21/18		2.763			0.567³			—			(1,333,902	)		(1,333,902	)
Merrill Lynch International	USD	4,020,000	06/18/18		2.090			—⁴			—			(62,228	)		(62,228	)
Merrill Lynch International	USD	8,200,000	06/20/18		3.403			0.567³			—			(968,048	)		(968,048	)
Merrill Lynch International	USD	3,630,000	06/16/21		—⁴			3.171			—			60,141			60,141
Merrill Lynch International	USD	3,670,000	02/17/41		4.423			0.466³			—			(1,470,435	)		(1,470,435	)
Morgan Stanley	CAD	8,870,000	08/04/17		3.600			—⁹			—			(870,965	)		(870,965	)
Morgan Stanley	CAD	4,750,000	08/04/22		—⁹			4.230			—			816,390			816,390

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2011 (unaudited)

Counterparty	Notional amount		Termination date	Payments made by the Fund¹			Payments received by the Fund¹			Upfront payments (made)/ received			Value			Unrealized appreciation/ (depreciation)
Morgan Stanley	USD	60,000,000	06/20/12		0.563	%³		0.291	%²	$	—		$	954		$	954
Morgan Stanley	USD	3,500,000	09/23/20		2.690			0.571³			(60,500	)		(259,580	)		(320,080	)
										$	164,946		$	(7,938,933	)	$	(7,773,987	)

¹ Payments made or received are based on the notional amount.

² Rate based on 1 month LIBOR (USD BBA).

³ Rate based on 3 month LIBOR (USD BBA).

⁴ 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 December 31, 2011.

⁵ Rate based on 6 month EURIBOR. This is a forward starting trade, and as such, a floating rate has not yet been assigned as of December 31, 2011.

⁶ Rate based on 6 month BBSW. This is a forward starting trade, and as such, a floating rate has not yet been assigned as of December 31, 2011.

⁷ Rate based on 3 month Canadian Bankers Acceptance Rate.

⁸ Rate based on 3 month CD KSDA. This is a forward starting trade, and as such, a floating rate has not yet been assigned as of December 31, 2011.

⁹ Rate based on 3 month Canadian Bankers Acceptance Rate. This is a forward starting trade, and as such, a floating rate has not yet been assigned as of December 31, 2011.

¹⁰ Rate based on 6 month LIBOR (USD BBA).

Credit default swaps on credit indices—buy protection¹

Counterparty	Notional amount		Termination date	Payments made by the Fund²			Payments received by the Fund		Upfront payments (made)/ received			Value			Unrealized appreciation/ (depreciation)
Barclays Bank PLC	USD	1,500,000	06/20/16		5.000	%		—³	$	(81,354	)	$	64,641		$	(16,713	)
Credit Suisse International	USD	3,000,000	06/20/16		2.500			—⁴		(194,918	)		104,948			(89,970	)
Credit Suisse International	USD	4,000,000	02/17/51		0.350			—⁵		(421,023	)		407,344			(13,679	)
Deutsche Bank	EUR	3,250,000	12/20/15		1.000			—⁶		6,046			116,462			122,508
JPMorgan Chase Bank	USD	2,500,000	12/20/15		1.000			—⁷		(84,611	)		74,446			(10,165	)
JPMorgan Chase Bank	USD	1,000,000	06/20/16		5.000			—⁸		145,611			(85,048	)		60,563
Merrill Lynch International	EUR	900,000	12/20/15		1.000			—⁶		3,437			32,251			35,688
Merrill Lynch International	EUR	10,000,000	06/20/16		1.000			—⁹		27,897			386,489			414,386
Merrill Lynch International	EUR	4,000,000	12/20/16		5.000			—¹⁰		(584,492	)		465,890			(118,602	)
Merrill Lynch International	USD	13,000,000	06/20/16		5.000			—⁸		1,421,250			(1,105,624	)		315,626
Morgan Stanley	EUR	6,450,000	06/20/16		1.000			—⁹		(54,064	)		249,285			195,221
									$	183,779		$	711,084		$	894,863

¹ If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

² Payments made are based on the notional amount.

³ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the CDX.NA.HY.Series 16 Index.

⁴ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the LCDX.NA.Series 16 Index

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2011 (unaudited)

⁵ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the CMBX.NA.AAA Series 4 Index.

⁶ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to iTraxx Europe Series 14 Index.

⁷ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to MCDX.NA.Series 15 Index.

⁸ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to CDX.EM.Series 15 Index.

⁹ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to iTraxx Europe Series 15 Index.

¹⁰ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to iTraxx Europe Crossover Series 16 Index.

Credit default swaps on corporate and sovereign issues—buy protection¹

Counterparty	Notional amount		Termination date	Payments made by the Fund²			Payments received by the Fund		Upfront payments (made)/ received			Value			Unrealized appreciation/ (depreciation)
Barclays Bank PLC	EUR	3,000,000	09/20/16		1.000	%		—³	$	(70,834	)	$	73,062		$	2,228
Barclays Bank PLC	USD	1,500,000	09/20/16		1.000			—⁴		(24,598	)		57,590			32,992
Barclays Bank PLC	USD	2,750,000	12/20/16		1.000			—⁵		45,988			(51,960	)		(5,972	)
Deutsche Bank AG	EUR	1,500,000	03/20/14		5.000			—⁶		236,056			(128,485	)		107,571
Deutsche Bank AG	EUR	2,500,000	06/20/16		1.000			—⁷		(9,883	)		147,508			137,625
Deutsche Bank AG	USD	1,515,000	03/20/14		1.000			—⁸		13,182			(18,567	)		(5,385	)
Deutsche Bank AG	USD	2,250,000	03/20/14		1.000			—⁹		16,250			143,847			160,097
JPMorgan Chase Bank	USD	3,025,000	09/20/16		0.250			—¹⁰		(97,127	)		247,831			150,704
JPMorgan Chase Bank	USD	1,500,000	09/20/16		1.000			—¹¹		1,958			11,524			13,482
JPMorgan Chase Bank	USD	2,000,000	09/20/16		1.000			—¹²		(223,918	)		181,131			(42,787	)
JPMorgan Chase Bank	USD	750,000	12/20/16		1.000			—¹³		(41,049	)		54,771			13,722
Merrill Lynch International	EUR	2,750,000	06/20/16		1.000			—¹⁴		(88,491	)		226,950			138,459
Merrill Lynch International	USD	3,500,000	06/20/16		1.000			—¹⁵		110,916			(83,845	)		27,071
Merrill Lynch International	USD	3,000,000	09/20/16		1.000			—¹¹		(21,643	)		23,048			1,405
Merrill Lynch International	USD	1,000,000	09/20/16		1.000			—¹³		(63,218	)		68,347			5,129
Morgan Stanley	EUR	2,500,000	06/20/16		1.000			—¹⁶		(10,692	)		197,908			187,216
Morgan Stanley	USD	750,000	12/20/16		1.000			—¹⁷		(28,200	)		28,032			(168	)
Morgan Stanley	USD	1,750,000	12/20/16		1.000			—¹⁸		35,224			(42,798	)		(7,574	)
Morgan Stanley	USD	2,750,000	12/20/16		1.000			—¹⁹		35,355			(62,024	)		(26,669	)
									$	(184,724	)	$	1,073,870		$	889,146

² Payments made are based on the notional amount.

³ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Credit Suisse Group Finance Guernsey Ltd. 5.000% bond, due 07/29/19.

⁴ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Kimco Realty Corp. 5.980% bond, due 07/30/12.

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2011 (unaudited)

⁵ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Verizon Communications, 4.900% bond, due 09/15/15.

⁶ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the ITV PLC 5.375% bond, due 10/19/15.

⁷ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the ING Bank NV 5.250% bond, due 06/07/19.

⁸ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Motorola Solutions, Inc. 6.500% bond, due 09/01/25.

⁹ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Computer Sciences Corp. 6.500% bond, due 03/15/18.

¹⁰ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Government of France 4.250% bond, due 04/25/19.

¹¹ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Simon Property Group LP 5.250% bond, due 12/01/16.

¹² Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Hartford Financial Services Group, Inc. 4.000% bond, due 03/30/15.

¹³ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Prudential Financial, Inc. 4.500% bond, due 07/15/13.

¹⁴ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Credit Agricole SA 5.065% bond, due 08/10/22.

¹⁵ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the United Parcel Service of America, Inc. 8.375% bond, due 04/01/30.

¹⁶ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the BNP Paribas 4.250% bond, due 01/16/14.

¹⁷ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Olin Corp., 8.875% bond, due 08/15/19.

¹⁸ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Target Corp., 5.375% bond, due 05/01/17.

¹⁹ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the VF Corp., 5.950% bond, due 11/01/17.

Credit default swaps on corporate issues—sell protection¹

Counterparty	Notional amount		Termination date	Payments made by the Fund		Payments received by the Fund²			Upfront payments (made)/ received			Value			Unrealized appreciation/ (depreciation)			Credit spread³
Deutsche Bank AG	EUR	1,000,000	03/20/16		—⁴		5.000	%	$	(190,725	)	$	105,344		$	(85,381	)		2.960	%
Deutsche Bank AG	USD	1,000,000	03/20/16		—⁵		1.000			17,886			8,571			26,457			0.799
Deutsche Bank AG	USD	1,500,000	03/20/16		—⁶		1.000			33,597			(204,936	)		(171,339	)		4.774
Deutsche Bank AG	USD	1,000,000	09/20/16		—⁷		1.000			89,097			(122,711	)		(33,614	)		4.090
JPMorgan Chase Bank	USD	2,000,000	09/20/16		—⁸		1.000			230,988			(195,746	)		35,242			3.340
JPMorgan Chase Bank	USD	750,000	12/20/16		—⁹		1.000			64,202			(72,951	)		(8,749	)		3.224
Merrill Lynch International	EUR	900,000	03/20/16		—¹⁰		1.000			36,430			(61,980	)		(25,550	)		2.359
Merrill Lynch International	USD	1,000,000	09/20/16		—⁹		1.000			78,782			(91,787	)		(13,005	)		3.190
Morgan Stanley	USD	1,300,000	06/20/16		—⁹		1.000			23,959			(111,957	)		(87,998	)		3.151
Morgan Stanley	USD	750,000	12/20/16		—¹¹		1.000			34,908			(34,877	)		31			2.011
Morgan Stanley	USD	1,750,000	12/20/16		—¹²		1.000			(35,224	)		40,083			4,859			0.534
									$	383,900		$	(742,947	)	$	(359,047	)

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2011 (unaudited)

² Payments received are based on the notional amount.

⁴ Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the ITV PLC 5.375% bond, due 10/19/15.

⁵ Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the Motorola Solutions, Inc. 6.500% bond, due 09/01/25.

⁶ Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the Computer Sciences Corp. 6.500% bond, due 03/15/18.

⁷ Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the Bank of America Corp. 6.250% bond, due 04/15/12.

⁸ Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the Lincoln National Corp. 6.200% bond, due 12/15/11.

⁹ Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the MetLife, Inc. 5.000% bond, due 06/15/15.

¹⁰ Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the Aegon NV 4.125% bond, due 12/08/14.

¹¹ Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the Dow Chemical Co., 7.375% bond, due 11/01/29.

¹² Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the Wal-Mart Stores, Inc., 5.875% bond, due 04/05/27.

Options written

	Expiration date	Premiums received		Value
Call options
Euro-Bobl, 167 contracts, strike @ EUR 126.50	February 2012	$	63,819	$	(63,761	)
Put options
90 Day Euro-Dollar Time Deposit, 242 contracts, strike @ USD 99.38	March 2012		102,278		(57,475	)
90 Day Euro-Dollar Time Deposit, 506 contracts, strike @ USD 99.00	March 2012		144,579		(41,113	)
90 Day Euro-Dollar Time Deposit, 84 contracts, strike @ USD 99.13	March 2012		23,856		(8,925	)
90 Day Euro-Dollar Time Deposit, 130 contracts, strike @ USD 96.00	December 2012		58,045		(3,250	)
Options written on interest rate swaps^†
If option exercised the Fund pays quarterly floating 3 month EURIBOR and receives semi annually 1.83%. Underlying interest rate swap terminating 10/12/15. European style. Counterparty: Barclays Bank PLC, Notional Amount EUR 32,000,000	December 2014		180,157		(221,234	)
If option exercised the Fund pays quarterly floating 3 month LIBOR and receives semi annually 4.70%. Underlying interest rate swap terminating 06/16/21. European style. Counterparty: Deutsche Bank AG, Notional Amount USD 10,200,000	June 2016		402,115		(1,012,767	)
If option exercised the Fund pays semi annually 3.33% and receives quarterly floating 3 month EURIBOR. Underlying interest rate swap terminating 10/12/15. European style. Counterparty: Barclays Bank PLC, Notional Amount EUR 32,000,000	December 2014		155,492		(102,617	)
If option exercised the Fund pays semi annually 4.70% and receives quarterly floating 3 month LIBOR. Underlying interest rate swap terminating 06/16/21. European style. Counterparty: Deutsche Bank AG, Notional Amount USD 10,200,000	June 2016		402,115		(152,957	)
If option exercised the Fund pays semi annually 7.25% and receives quarterly floating 3 month LIBOR. Underlying interest rate swap terminating 04/11/25. European style. Counterparty: Deutsche Bank AG, Notional Amount USD 3,050,000	February 2015		63,135		(16,602	)

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Expiration date	Premiums received		Value
If option exercised the Fund pays semi annually 8.76% and receives quarterly floating 3 month LIBOR. Underlying interest rate swap terminating 04/11/25. European style. Counterparty: Deutsche Bank AG, Notional Amount USD 3,050,000	February 2015	$	38,735	$	(7,795	)
If option exercised the Fund pays semi annually floating 6 month LIBOR and receives semi annually 1.60%. Underlying interest rate swap terminating 12/30/33. European style. Counterparty: Morgan Stanley, Notional Amount JPY 670,000,000	December 2013		248,816		(274,185	)
Receiver options written on credit default swaps on credit indices^†
If option exercised 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 CDX.NA.IG Series 17 Index and Fund pays fixed rate of 1.000%. Underlying credit default swap terminating 12/20/2016. European style. Counterparty: Morgan Stanley, Notional Amount USD 4,250,000	March 2012		46,325		(16,559	)
If option exercised payment to 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 CDX.NA.IG Series 17 Index and Fund receives fixed rate of 1.000%. Underlying credit default swap terminating 12/20/2016. European style. Counterparty: Morgan Stanley, Notional Amount USD 4,250,000	March 2012		56,525		(60,620	)
If option exercised 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 CDX.NA.HY Series 17 Index and Fund pays fixed rate of 5.000%. Underlying credit default swap terminating 12/20/2016. European style. Counterparty: Morgan Stanley, Notional Amount USD 10,000,000	March 2012		207,900		(94,479	)
If option exercised payment to 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 CDX.NA.HY Series 17 Index and Fund receives fixed rate of 5.000%. Underlying credit default swap terminating 12/20/2016. European style. Counterparty: Morgan Stanley, Notional Amount USD 23,000,000	March 2012		182,160		(115,055	)
If option exercised 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 CDX.NA.HY Series 17 Index and Fund pays fixed rate of 5.000%. Underlying credit default swap terminating 12/20/2016. European style. Counterparty: Morgan Stanley, Notional Amount USD 23,000,000	March 2012		387,090		(257,989	)
Total options written		$	2,763,142	$	(2,507,383	)

Written option activity for the period ended December 31, 2011 was as follows:

	Number of contracts			Premiums received
Options outstanding at June 30, 2011		1,408		$	235,521
Options written		5,533			2,113,024
Options terminated in closing purchase transactions		(5,812	)		(1,955,968	)
Options expired prior to exercise		—			—
Options outstanding at December 31, 2011		1,129		$	392,577

Swaption activity for the period ended December 31, 2011 was as follows:

Swaptions outstanding at June 30, 2011	$	1,546,001
Swaptions written		4,182,464
Swaptions terminated in closing purchase transactions		(3,357,900	)
Swaptions expired prior to exercise		—
Swaptions outstanding at December 31, 2011	$	2,370,565

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2011 (unaudited)

Concluded

The following is a summary of the inputs used as of December 31, 2011 in valuing the Fund's investments:

Description	Unadjusted quoted prices in active markets for identical investments (Level 1)			Other significant observable inputs (Level 2)			Unobservable inputs (Level 3)		Total
Corporate bonds	$	—		$	45,954,217		$	—	$	45,954,217
Asset-backed securities		—			2,956,630			—		2,956,630
Collateralized debt obligations		—			1,481,341			477,500		1,958,841
Commercial mortgage-backed securities		—			6,854,376			—		6,854,376
Mortgage & agency debt securities		—			1,259,758			—		1,259,758
Municipal bonds		—			3,206,525			—		3,206,525
US government obligations		—			3,661,350			—		3,661,350
Investment company		—			15,878,211			—		15,878,211
Short-term investment		—			1,988,888			—		1,988,888
Options purchased		717,528			2,639,434			—		3,356,962
Forward foreign currency contracts		—			526,133			—		526,133
Futures contracts		97,489			—			—		97,489
Swap agreements		—			(6,774,231	)		—		(6,774,231	)
Options written		(174,524	)		(2,332,859	)		—		(2,507,383	)
Total	$	640,493		$	77,299,773		$	477,500	$	78,417,766

Level 3 Rollforward Disclosure

The following is a rollforward of the Fund's investments that were valued using unobservable inputs for the period:

	Collateralized debt obligation			Total
Assets
Beginning balance	$	475,000		$	475,000
Purchases		—			—
Issuances		—			—
Sales		—			—
Settlements		—			—
Accrued discounts (premiums)		4,137			4,137
Total realized gain (loss)		—			—
Change in net unrealized appreciation/depreciation		(1,637	)		(1,637	)
Transfers into Level 3		—			—
Transfers out of Level 3		—			—
Ending balance	$	477,500		$	477,500

The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at December 31, 2011 was $(1,637).

See accompanying notes to financial statements.
33

UBS Global Bond Fund

Portfolio performance

For the six months ended December 31, 2011, Class A shares of UBS Global Bond Fund (the "Fund") declined 0.01% (Class A shares declined 4.52% after the deduction of the maximum sales charge), while Class Y shares returned 0.10%. The Fund's benchmark, the Barclays Capital Global Aggregate Bond Index (the "Index"), returned 1.21% 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 36; please note that the Fund's returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares, while the Index returns do not reflect the deduction of fees and expenses.)

The Fund's underperformance was due to a variety of factors, including security selection and sector positioning.

The Fund used derivatives during the reporting period. These included certain interest rate instruments, to manage the Fund's duration and yield curve exposure; credit default swaps to implement specific credit-related investment strategies as part of the Fund's sector allocation and security selection; and foreign exchange forwards to manage the Fund's currency exposures. Derivatives play a role in the overall portfolio construction process but are just one of the tools we utilize to manage the Fund's overall risk exposure and to implement the aforementioned strategies. With that in mind, overall, the Fund's duration and yield curve positioning, as well as currency allocations, were positive contributors to performance, while sector allocation and security selection in certain spread sectors detracted from performance.

Portfolio performance summary¹

What worked

• Duration positioning contributed to results. We tactically adjusted the Fund's duration in both the US and the UK. At the beginning of the period, the Fund's duration in the US was shorter than the Index, as we felt US yields would move higher as the US economic expansion continued. However, as US economic growth hit a soft patch in the summer, we moved to a long duration versus the Index. This was rewarded, as US Treasury yields moved sharply lower in the third quarter of 2011. In the UK, we moved from a neutral to a long duration versus the Index. This was also beneficial, as rates in the UK declined given slowing economic growth and fears of recession. (Duration is a measure of a portfolio's sensitivity to changes in interest rates.)

• Overall, the Fund's yield curve positioning strategies were rewarded. During the second half of the review period, we generally had a yield curve flattening bias in the US, as we expected longer-term US rates to decline and the difference between short- and long-term rates to narrow. This was a positive for results when the yield curve flattened during that period.

• The Fund's currency exposures, overall, modestly contributed to performance.

What didn't work

• Security selection of investment grade bonds detracted from results. Security selection in European industrials hurt performance, as did the Fund's holdings in the financial sector. With respect to the latter, we emphasized senior secured securities issued by US and European banks. The spreads of these bonds widened due to the European sovereign debt crisis, moderating global growth and uncertainties regarding new financial regulations. (Spread measures the difference between the yields paid on non-government securities versus those paid on government securities of comparable duration.)

¹ For a detailed commentary on the market environment in general during the reporting period, see page 2.

UBS Global Bond Fund

• Sector positioning, overall, was a negative for performance.

– An overweight to investment grade financials was detrimental for results, as it was the weakest performing sector within the Index during the review period. During the period, we pared our exposure to European financials in favor of US financials, as we felt the latter had relatively better fundamentals and return prospects.

– Having on overweight to European mortgage-backed securities was a negative for results, as they underperformed during the period.

UBS Global Bond Fund

Average annual total returns for periods ended 12/31/11 (unaudited)

	6 months			1 year			5 years			10 years			Inception¹
Before deducting maximum sales charge
Class A²		(0.01	)%		4.92	%		1.95	%		4.98	%		4.52	%
Class B³		(0.37	)		4.27			1.20			4.54			4.37⁶
Class C⁴		(0.26	)		4.42			1.43			N/A			3.56
Class Y⁵		0.10			5.21			2.21			5.25			4.74
After deducting maximum sales charge
Class A²		(4.52	)%		0.16	%		1.03	%		4.50	%		4.05	%
Class B³		(5.07	)		(0.61	)		0.93			4.54			4.37⁶
Class C⁴		(0.96	)		3.69			1.43			N/A			3.56

Barclays Capital Global Aggregate Index⁷ 1.21% 5.64% 6.46% 7.16% 6.24%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2011 prospectuses were as follows: Class A—2.43% and 1.15%; Class B—3.20% and 1.90%; Class C—2.89% and 1.65%; Class Y—2.13% and 0.90%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Trust, with respect to the Fund, and UBS Global Asset Management (Americas) Inc., the Fund's investment advisor ("UBS Global AM (Americas)" or 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 expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) to the extent necessary so that the Fund's ordinary operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses), through the period ending October 27, 2012, do not exceed 1.15% for Class A shares, 1.90% for Class B shares, 1.65% for Class C shares and 0.90% for Class Y shares. 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 November 5, 2001. Inception dates of Class B and Class C shares are November 26, 2001 and July 2, 2002, respectively. Inception date of Class Y shares and the Index is July 31, 1993.

² Maximum sales charge for Class A shares is 4.50%. 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. On or about March 1, 2012, the Class B shares of the Fund will be converted into Class A shares of the same Fund and Class B shares will be terminated effective immediately after such conversion.

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. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total returns presented for the Class C shares shown above.

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 Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁷ The Barclays Capital Global Aggregate Index is an unmanaged broad-based, market capitalization weighted index which is designed to measure the broad global markets for US and non US corporate, government, governmental agency, supranational, mortgage-backed and asset backed fixed income securities. Investors should note that indices do not reflect the deduction of fees and expenses.

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 period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://globalam-us.ubs.com/corpweb/performance.do.

UBS Global Bond Fund

Top ten long-term fixed income holdings (unaudited)

As of December 31, 2011

	Percentage of net assets
Government of Japan, 1.800%, due 06/20/17		6.7	%
Government of Japan, 0.600%, due 03/20/16		5.5
Bundesrepublik Deutschland, 4.000%, due 01/04/37		3.4
Government of Japan, 1.900%, due 06/20/25		3.3
US Treasury Notes, 1.750%, due 05/31/16		2.9
US Treasury Notes, 2.625%, due 08/15/20		2.9
Instituto de Credito Oficial, 5.375%, due 07/02/12		2.8
Canadian Government Bond, 3.500%, due 06/01/20		2.6
Bundesrepublik Deutschland, 6.250%, due 01/04/24		2.6
UK Gilts, 2.000%, due 01/22/16		2.3
Total		35.0	%

Industry diversification (unaudited)¹

As a percentage of net assets as of December 31, 2011

Bonds
Corporate bonds
Building materials	0.27	%
Capital markets	1.68
Chemicals	0.55
Commercial banks	9.48
Commercial services & supplies	0.35
Construction & engineering	0.46
Consumer finance	0.34
Diversified financial services	4.74
Diversified telecommunication services	2.26
Electric utilities	0.53
Gas utilities	0.46
Health care equipment & supplies	0.39
Insurance	0.65
Leisure equipment & products	0.38
Media	2.04
Metals & mining	0.99
Multi-utilities	0.18
Oil, gas & consumable fuels	2.15
Pharmaceuticals	0.36
Semiconductors & semiconductor equipment	0.15
Specialty retail	0.14
Telecommunications	0.37
Tobacco	1.87
Wireless telecommunication services	0.73
Total corporate bonds	31.52	%
Asset-backed securities	1.81
Collateralized debt obligation	1.22
Mortgage & agency debt securities	7.66
US government obligations	10.06
Non-US government obligations	39.96
Supranational bonds	2.16
Total bonds	94.39	%
Short-term investment	3.36
Total investments	97.75	%
Cash and other assets, less liabilities	2.25
Net assets	100.00	%

Country exposure by issuer, top five (unaudited)

As of December 31, 2011

	Percentage of net assets
United States		32.3	%
Japan		16.8
United Kingdom		10.8
Germany		8.1
Italy		5.1
Total		73.1	%

¹ Figures represent the industry breakdown of direct investments of UBS Global Bond Fund. Figures would be different if a breakdown of derivatives exposure was included.

UBS Global Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds: 94.39%
Corporate bonds: 31.52%
Australia: 1.69%
Rio Tinto Finance USA Ltd., 3.750%, due 09/20/21	$	35,000	$	36,675
Westpac Banking Corp., 4.125%, due 05/25/18	EUR	100,000		132,458
4.200%, due 02/27/15	$	70,000		72,957
Total Australia corporate bonds				242,090
Canada: 0.30%
Nova Chemicals Corp., 8.625%, due 11/01/19		25,000		27,562
Teck Resources Ltd., 3.150%, due 01/15/17		15,000		15,324
Total Canada corporate bonds				42,886
Cayman Islands: 0.62%
Vale Overseas Ltd., 5.625%, due 09/15/19		50,000		55,080
6.875%, due 11/21/36		30,000		34,157
Total Cayman Islands corporate bonds				89,237
France: 2.92%
AXA SA, 6.667%, due 07/06/16^1,2	GBP	50,000		55,908
BNP Paribas Home Loan SFH, 3.875%, due 07/12/21	EUR	100,000		130,830
CM-CIC Covered Bonds, 4.375%, due 03/17/21³		100,000		136,149
Societe Generale SA, 2.200%, due 09/14/13⁴	$	100,000		93,958
Total France corporate bonds				416,845
Germany: 2.14%
HeidelbergCement Finance BV, 8.500%, due 10/31/19	EUR	30,000		38,633
Kreditanstalt fuer Wiederaufbau, 5.500%, due 12/07/15	GBP	150,000		267,151
Total Germany corporate bonds				305,784
Italy: 0.73%
Telecom Italia SpA, 2.260%, due 06/07/16¹	EUR	50,000		51,875
Wind Acquisition Finance SA, 11.750%, due 07/15/17³		50,000		53,226
Total Italy corporate bonds				105,101
Luxembourg: 0.18%
Intelsat Jackson Holdings SA, 7.250%, due 10/15/20	$	25,000		25,375

	Face amount		Value
Mexico: 0.73%
America Movil SAB de CV, 3.625%, due 03/30/15	$	100,000	$	104,787
Netherlands: 0.75%
Rabobank Nederland NV, 4.000%, due 09/10/15	GBP	50,000		81,216
RWE Finance BV, 5.625%, due 12/06/23		15,000		26,675
Total Netherlands corporate bonds				107,891
Netherlands Antilles: 0.36%
Teva Pharmaceutical Finance Co. BV, 3.650%, due 11/10/21	$	25,000		25,428
Teva Pharmaceutical Finance IV BV, 3.650%, due 11/10/21		25,000		25,429
Total Netherlands Antilles corporate bonds				50,857
Norway: 1.11%
DnB NOR Boligkreditt, 3.875%, due 06/16/21	EUR	110,000		152,951
Statoil ASA, 3.150%, due 01/23/22	$	5,000		5,142
Total Norway corporate bonds				158,093
Qatar: 0.76%
Qtel International Finance Ltd., 6.500%, due 06/10/14⁴		100,000		108,850
Spain: 1.04%
Bankia SA, 4.125%, due 03/24/36	EUR	100,000		82,810
Gas Natural Capital Markets SA, 5.250%, due 07/09/14		50,000		66,141
Total Spain corporate bonds				148,951
United Kingdom: 5.79%
Aviva PLC, 4.729%, due 11/28/14^1,2		40,000		36,757
BAA Funding Ltd., 3.975%, due 02/15/12⁴		50,000		64,809
Barclays Bank PLC, 4.750%, due 03/15/20^1,2		40,000		24,332
4.875%, due 12/15/14^1,2		60,000		44,263
British Telecommunications PLC, 8.625%, due 03/26/20	GBP	40,000		80,408
HSBC Holdings PLC, 4.500%, due 04/30/14	EUR	50,000		67,656
Imperial Tobacco Finance PLC, 4.500%, due 07/05/18		100,000		132,985

UBS Global Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Concluded)
United Kingdom—(Concluded)
Lloyds TSB Bank PLC, 4.500%, due 09/15/14³	EUR	100,000	$	127,488
Royal Bank of Scotland PLC, 3.400%, due 08/23/13	$	60,000		58,372
Scottish & Southern Energy PLC, 5.453%, due 10/01/15^1,2	GBP	50,000		75,631
WPP PLC, 6.625%, due 05/12/16	EUR	80,000		114,800
Total United Kingdom corporate bonds				827,501
United States: 12.40%
Alltel Corp., 7.875%, due 07/01/32	$	40,000		57,169
Ally Financial, Inc., 4.500%, due 02/11/14		15,000		14,475
Altria Group, Inc., 9.250%, due 08/06/19		100,000		134,276
Anadarko Petroleum Corp., 5.750%, due 06/15/14		100,000		107,618
Bank of America Corp., 7.375%, due 05/15/14		125,000		129,607
Bear Stearns Cos. LLC, 5.700%, due 11/15/14		150,000		163,130
Boston Scientific Corp., 6.000%, due 01/15/20		50,000		55,817
Celanese US Holdings LLC, 6.625%, due 10/15/18		25,000		26,562
CF Industries, Inc., 7.125%, due 05/01/20		20,000		23,650
Citigroup, Inc., 4.750%, due 05/31/17¹	EUR	50,000		52,870
5.625%, due 08/27/12	$	70,000		71,057
Comcast Corp., 6.300%, due 11/15/17		150,000		177,420
Energy Transfer Partners LP, 6.050%, due 06/01/41		25,000		24,514
7.500%, due 07/01/38		10,000		11,417
Enterprise Products Operating LLC, 3.700%, due 06/01/15		30,000		31,451
Series I, 5.000%, due 03/01/15		20,000		21,783
Freescale Semiconductor, Inc., 9.250%, due 04/15/18⁴		20,000		21,375
General Electric Capital Corp., Series A, 6.750%, due 03/15/32		110,000		128,804
Hasbro, Inc., 6.350%, due 03/15/40		50,000		54,054
Kinder Morgan Energy Partners LP, 5.800%, due 03/15/35		75,000		77,283

	Face amount		Value
Morgan Stanley, 5.450%, due 01/09/17	$	250,000	$	240,691
Quicksilver Resources, Inc., 11.750%, due 01/01/16		20,000		22,700
Range Resources Corp., 5.750%, due 06/01/21		5,000		5,413
SLM Corp., 6.250%, due 01/25/16		50,000		48,624
Toys R Us Property Co. II LLC, 8.500%, due 12/01/17		20,000		20,700
Waste Management, Inc., 7.375%, due 03/11/19		40,000		50,370
Total United States corporate bonds				1,772,830
Total corporate bonds (cost $4,661,062)				4,507,078
Asset-backed securities: 1.81%
United Kingdom: 0.85%
Chester Asset Receivables Dealings, Series 2004-1, Class A, 1.198%, due 04/15/16¹	GBP	20,000		30,135
Series 2003-B PLC, Class A, 4.650%, due 07/15/13		30,000		47,839
Whinstone Capital Management Ltd., Series 1A, Class B2, 3.385%, due 10/25/44^1,4	EUR	77,108		44,410
Total United Kingdom asset-backed securities				122,384
United States: 0.96%
Bank of America Corp., Series 2004-A1, 4.500%, due 01/17/14		40,000		53,822
MBNA Credit Card Master Note Trust, Series 2002-A2, Class A, 5.600%, due 07/17/14		50,000		65,118
Merrill Lynch Mortgage Investors, Inc., Series 2006-SL1, Class A, 0.474%, due 09/25/36¹	$	29,495		17,741
Total United States asset-backed securities				136,681
Total asset-backed securities (cost $324,032)				259,065

UBS Global Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Collateralized debt obligation: 1.22%
United States: 1.22%
Hewett's Island CDO Ltd., Series 2007-6A, Class D, 2.790%, due 06/09/19 (cost $247,508)^†1,4,5	$	250,000	$	174,598
Mortgage & agency debt securities: 7.66%
United States: 7.66%
Federal Home Loan Mortgage Corp. Gold Pools,⁶#G04461, 5.000%, due 07/01/38		122,301		131,555
Federal National Mortgage Association Pools,⁶#AA5244, 4.000%, due 05/01/39		62,808		66,038
#909356, 5.000%, due 02/01/37		146,778		158,663
#914467, 5.000%, due 04/01/37		106,235		114,837
#928197, 5.500%, due 03/01/37		108,444		118,173
#AC1466, 5.500%, due 08/01/39		143,380		158,760
#900568, 6.000%, due 09/01/36		60,234		66,448
#940642, 6.000%, due 08/01/37		117,266		130,096
#889579, 6.000%, due 05/01/38		90,183		99,741
Government National Mortgage Association Pools, #781276, 6.500%, due 04/15/31		43,569		50,410
Total mortgage & agency debt securities (cost $1,002,061)				1,094,721
US government obligations: 10.06%
US Treasury Bonds, 3.500%, due 02/15/39		275,000		309,332
US Treasury Notes, 1.750%, due 05/31/16		400,000		418,281
2.625%, due 08/15/20		385,000		415,229
3.625%, due 02/15/20		255,000		295,740
Total US government obligations (cost $1,329,974)				1,438,582

	Face amount		Value
Non-US government obligations: 39.96%
Canada: 2.63%
Canadian Government Bond, 3.500%, due 06/01/20	CAD	340,000	$	376,682
Denmark: 0.71%
Government of Denmark, 4.000%, due 11/15/17	DKK	500,000		102,168
Finland: 1.02%
Government of Finland, 1.750%, due 04/15/16	EUR	110,000		146,041
Germany: 5.98%
Bundesrepublik Deutschland, 4.000%, due 01/04/37		290,000		482,396
6.250%, due 01/04/24		200,000		372,873
				855,269
Italy: 4.36%
Buoni Ordinari del Tesoro, 8.777%, due 04/30/12⁷		110,000		140,858
Buoni Poliennali Del Tesoro, 3.000%, due 11/01/15		180,000		211,744
Republic of Italy, 4.750%, due 01/25/16	$	290,000		270,070
				622,672
Japan: 16.77%
Government of Japan, 0.100%, due 11/15/12	JPY	10,000,000		129,903
0.600%, due 03/20/16		60,000,000		789,200
1.800%, due 06/20/17		68,000,000		950,887
1.900%, due 06/20/25		33,800,000		468,820
2.500%, due 09/20/35		4,000,000		58,804
				2,397,614
Netherlands: 1.03%
Government of the Netherlands, 4.000%, due 07/15/18	EUR	100,000		146,711
Spain: 3.29%
Instituto de Credito Oficial, 5.375%, due 07/02/12	$	400,000		399,210
Kingdom of Spain, 4.200%, due 07/30/13	EUR	55,000		71,825
				471,035

UBS Global Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Concluded)
Non-US government obligations—(Concluded)
United Kingdom: 4.17%
UK Gilts, 2.000%, due 01/22/16	GBP	200,000	$	326,087
4.000%, due 01/22/60		140,000		269,579
				595,666
Total Non-US government obligations (cost $5,370,582)				5,713,858
Supranational bonds: 2.16%
European Investment Bank, 6.125%, due 01/23/17	AUD	150,000		154,006
6.250%, due 04/15/14	GBP	90,000		153,747
Total supranational bonds (cost $317,881)				307,753
Total bonds (cost $13,253,100)				13,495,655

	Shares		Value
Short-term investment: 3.36%
Investment company: 3.36%
UBS Cash Management Prime Relationship Fund⁸(cost $479,734)		479,734	$	479,734
Total investments: 97.75% (cost $13,732,834)				13,975,389
Cash and other assets, less liabilities: 2.25%				322,075
Net assets: 100.00%			$	14,297,464

Notes to portfolio of investments

Aggregate cost for federal income tax purposes was substantially the same as for book purposes; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	773,669
Gross unrealized depreciation		(531,114	)
Net unrealized appreciation of investments	$	242,555

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 59.

^† Holding is illiquid. At December 31, 2011, the value of this security amounted to $174,598 or 1.22% of net assets.

¹ Variable or floating rate security. The interest rate shown is the current rate as of December 31, 2011 and changes periodically.

² Perpetual bond security. The maturity date reflects the next call date.

³ Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. At December 31, 2011, the value of these securities amounted to $316,863 or 2.22% of net assets.

⁴ Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities are considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2011, the value of these securities amounted to $508,000 or 3.55% of net assets.

UBS Global Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

⁵ This security, which represents 1.22% of net assets as of December 31, 2011, is considered restricted. (See restricted security table below for more information.)

Restricted security				Acquisition date				Acquisition cost				Acquisition cost as a percentage of net assets				Value 12/31/11				Value as a percentage of net assets
Hewett's Island CDO Ltd., Series 2007-6A, Class D, 2.790%, due 06/09/19				05/09/07-09/25/09				$	247,508				1.73	%		$	174,598				1.22	%

⁶ On September 7, 2008, the Federal Housing Finance Agency placed the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association into conservatorship, and the US Treasury guaranteed the debt issued by those organizations.

⁷ Rate shown reflects annualized yield at December 31, 2011 on zero coupon bond.

⁸ The table below details the Fund's investments in a fund that is advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Fund.

Security description				Value 06/30/11				Purchases during the six months ended 12/31/11				Sales during the six months ended 12/31/11				Value 12/31/11				Income earned from affiliate for the six months ended 12/31/11
UBS Cash Management Prime Relationship Fund				$	377,148			$	3,385,734			$	3,283,148			$	479,734			$	250

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation/ (depreciation)
Barclays Bank PLC	AUD	120,000	USD	121,133	03/05/12	$	(747	)
Barclays Bank PLC	EUR	50,000	GBP	42,387	03/05/12		1,043
Barclays Bank PLC	USD	39,607	AUD	40,000	03/05/12		1,020
Barclays Bank PLC	USD	168,686	EUR	125,000	03/05/12		(6,823	)
Credit Suisse First Boston	USD	132,353	AUD	130,000	03/05/12		(317	)
Credit Suisse First Boston	USD	288,165	EUR	215,000	03/05/12		(9,760	)
Goldman Sachs International	USD	39,556	AUD	40,000	03/05/12		1,071
JPMorgan Chase Bank	AUD	130,000	USD	127,628	03/05/12		(4,408	)
JPMorgan Chase Bank	EUR	85,000	JPY	8,839,152	03/05/12		4,893
JPMorgan Chase Bank	EUR	617,500	USD	818,908	03/05/12		19,304
JPMorgan Chase Bank	GBP	50,000	USD	77,594	03/05/12		(11	)
JPMorgan Chase Bank	GBP	805,000	USD	1,253,472	03/05/12		4,037
JPMorgan Chase Bank	USD	119,973	CHF	110,000	03/05/12		(2,720	)
JPMorgan Chase Bank	USD	228,131	EUR	175,000	03/05/12		(1,523	)
JPMorgan Chase Bank	USD	464,576	GBP	300,000	03/05/12		1,052
JPMorgan Chase Bank	USD	554,826	JPY	43,000,000	03/05/12		4,422
JPMorgan Chase Bank	USD	144,021	KRW	167,000,000	03/05/12		334
JPMorgan Chase Bank	USD	57,813	NOK	340,000	03/05/12		(1,093	)
JPMorgan Chase Bank	USD	97,844	SEK	680,000	03/05/12		668
Net unrealized appreciation on forward foreign currency contracts						$	10,442

UBS Global Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

Futures contracts

	Expiration date	Cost/ (proceeds)			Value			Unrealized appreciation/ (depreciation)
US Treasury futures buy contracts:
10 Year US Treasury Notes, 3 contracts (USD)	March 2012	$	389,114		$	393,375		$	4,261
Interest rate futures buy contracts:
10 Year Mini Japanese Government Bond, 4 contracts (JPY)	March 2012		738,970			740,600			1,630
Interest rate futures sell contracts:
Euro-Bobl, 2 contracts (EUR)	March 2012		(319,407	)		(323,847	)		(4,440	)
Euro-Bund, 1 contracts (EUR)	March 2012		(173,920	)		(179,952	)		(6,032	)
Net unrealized depreciation on futures contracts								$	(4,581	)

Credit default swaps on credit indices—buy protection¹

Counterparty	Notional amount		Termination date	Payments made by the Fund²			Payments received by the Fund		Upfront payments made			Value		Unrealized depreciation
Barclays Bank PLC	EUR	135,000	12/20/16		5.000	%		—³	$	(3,081	)	$	402	$	(2,679	)
Deutsche Bank AG	EUR	135,000	12/20/16		5.000			—³		(2,715	)		402		(2,313	)
JPMorgan Chase Bank	EUR	175,000	12/20/16		5.000			—³		(2,149	)		520		(1,629	)
JPMorgan Chase Bank	EUR	200,000	12/20/16		5.000			—⁴		(34,797	)		23,294		(11,503	)
									$	(42,742	)	$	24,618	$	(18,124	)

¹ If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

² Payments made are based on the notional amount.

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 iTraxx Europe Sub Financials Series 16 Index.

⁴ 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 iTraxx Europe Crossover Series 16 Index.

Credit default swaps on corporate issues—buy protection¹

Counterparty	Notional amount		Termination date	Payments made by the Fund²			Payments received by the Fund		Upfront payments made			Value		Unrealized appreciation/ (depreciation)
Barclays Bank PLC	EUR	25,000	03/20/17		1.000	%		—³	$	(2,393	)	$	2,347	$	(46	)
JPMorgan Chase Bank	EUR	50,000	09/20/16		1.000			—⁴		(3,636	)		5,143		1,507
JPMorgan Chase Bank	EUR	100,000	09/20/16		1.000			—⁵		(5,893	)		6,035		142
JPMorgan Chase Bank	EUR	50,000	12/20/16		1.000			—⁶		(4,780	)		4,628		(152	)
JPMorgan Chase Bank	EUR	50,000	03/20/17		1.000			—⁷		(3,119	)		3,554		435
									$	(19,821	)	$	21,707	$	1,886

UBS Global Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

² Payments made are based on the notional amount.

³ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Marks & Spencer PLC 5.625% bond, due 03/24/14.

⁴ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Valeo SA 3.750% bond, due 06/24/13.

⁵ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Michelin Luxembourg SCS 8.625% bond, due 04/24/14.

⁶ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Volvo Treasury AB 5.000% bond, due 05/31/17.

⁷ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Metro AG 7.625% bond, due 03/05/15.

Credit default swaps on credit indices—sell protection¹

Counterparty	Notional amount		Termination date	Payments made by the Fund		Payments received by the Fund²			Upfront payments received		Value			Unrealized appreciation		Credit spread³
Barclays Bank PLC	EUR	150,000	12/20/16		—⁴		1.000	%	$	17,423	$	(14,700	)	$	2,723		2.752	%
Deutsche Bank AG	EUR	150,000	12/20/16		—⁴		1.000			16,910		(14,700	)		2,210		2.752
									$	34,333	$	(29,400	)	$	4,933

¹ If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

² Payments received are based on the notional amount.

⁴ Payment to 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 iTraxx Europe Senior Financials Series 16 Index.

Credit default swap on corporate issues—sell protection¹

Counterparty				Notional amount				Termination date				Payments made by the Fund				Payments received by the Fund²				Upfront payments received				Value				Unrealized depreciation				Credit spread³
Goldman Sachs International				EUR	30,000			09/20/16					—⁴				1.000	%		$	1,625			$	(2,121	)		$	(496	)			2.248	%

² Payments received are based on the notional amount.

UBS Global Bond Fund

Portfolio of investments

December 31, 2011 (unaudited)

Concluded

⁴ Payment to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the Carrefour SA 4.375% bond, due 11/02/16.

The following is a summary of the inputs used as of December 31, 2011 in valuing the Fund's investments:

Description	Unadjusted quoted prices in active markets for identical investments (Level 1)			Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Corporate bonds	$	—		$	4,507,078	$	—	$	4,507,078
Asset-backed securities		—			259,065		—		259,065
Collateralized debt obligation		—			—		174,598		174,598
Mortgage & agency debt securities		—			1,094,721		—		1,094,721
US government obligations		—			1,438,582		—		1,438,582
Non-US government obligations		—			5,713,858		—		5,713,858
Supranational bonds		—			307,753		—		307,753
Short-term investment		—			479,734		—		479,734
Forward foreign currency contracts		—			10,442		—		10,442
Futures contracts		(4,581	)		—		—		(4,581	)
Swap agreements		—			14,804		—		14,804
Total	$	(4,581	)	$	13,826,037	$	174,598	$	13,996,054

Level 3 Rollforward Disclosure

The following is a rollforward of the Fund's investments that were valued using unobservable inputs for the period:

	Collateralized debt obligations			Total
Assets
Beginning balance	$	287,009		$	287,009
Purchases		—			—
Issuances		—			—
Sales		(46,331	)		(46,331	)
Settlements		—			—
Accrued discounts (premiums)		—			—
Total realized gain (loss)		(86,081	)		(86,081	)
Change in net unrealized appreciation/depreciation		20,001			20,001
Transfers into Level 3		—			—
Transfers out of Level 3		—			—
Ending balance	$	174,598		$	174,598

The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at December 31, 2011 was $(25,403).

See accompanying notes to financial statements.
45

UBS High Yield Fund

Portfolio performance

For the six months ended December 31, 2011, Class A shares of UBS High Yield Fund (the "Fund") declined 1.71% (Class A shares declined 6.09% after the deduction of the maximum sales charge), while Class Y shares declined 1.58%. The Fund's benchmark, the BofA Merrill Lynch US High Yield Cash Pay Constrained Index (the "Index"), declined 0.39% 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 48; please note that the Fund's returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares, while the Index returns do not reflect the deduction of fees and expenses.)

The Fund generated a negative return and underperformed the Index. Certain sector allocations and security selection detracted from results.

Over the period, the Fund used foreign exchange forwards to hedge its non-US dollar exposure, which was helpful in reducing the Fund's currency risk.

Portfolio performance summary¹

What worked

• The Fund's positioning in several areas of the industrials sector contributed positively to relative performance during the reporting period. Specifically, issue selection within the chemicals subsector was beneficial for results, while security selection in the media subsector—especially the Fund's holdings of debt issued by cable companies—enhanced Fund performance.

What didn't work

• The Fund's allocation to the financial sector was a negative for results.

– The insurance subsector, despite good performance early in the year (prior to the beginning of the reporting period), was dragged down during the third quarter as risk appetite was replaced by periods of extreme risk aversion.

– The Fund's exposure to the bank subsector detracted from performance. This area of the market performed poorly, as it was negatively impacted by fears of contagion from the European sovereign debt crisis, weakening global growth and uncertainty regarding new financial regulations.

• The Fund's positioning in the industrial sector was not rewarded.

– An overweight to the gaming subsector was a drag on results, as the subsector underperformed during the reporting period.

– Issue selection in the transportation subsector hurt the Fund's performance, particularly our positioning within shipping services, which underperformed given signs of moderating global growth.

– During the review period, the Fund generally had an underweight to telecommunications that was beneficial to performance. However, this positive performance was not enough to offset the negative impact from positioning within the subsector.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 2.

UBS High Yield Fund

– Generally having an overweight to the metals and mining subsector was a modest detractor, given that negative sentiment regarding the more cyclical areas of the market grew as the review period progressed.

• The Fund's positioning from a quality perspective detracted from results. Although we moved to increase the portfolio's overall credit quality early in the period, the Fund's quality biases still generated negative results as risk aversion and market volatility increased as the period progressed.

– The Fund's overweight to securities rated CCC and lower detracted from performance, largely during the third quarter of 2011.²

– Having an underweight to securities rated BB was not rewarded, as they outperformed their lower rated B and CCC counterparts during the reporting period.^3,4

² Debt rated CCC has a current identifiable vulnerability to default, and is dependent upon favorable business, financial and economic conditions to meet timely payments of interest and repayment of principal.

³ Debt rated BB has less near-term vulnerability to default than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to inadequate capacity to meet timely interest and principal payments.

⁴ Debt rated B has a greater vulnerability to default but currently has the capacity to meet interest payments and principal repayments. Adverse business, financial, or economic conditions will likely impair capacity or willingness to pay interest and repay principal.

UBS High Yield Fund

Average annual total returns for periods ended 12/31/11 (unaudited)

	6 months			1 year			5 years			10 years
Before deducting maximum sales charge
Class A¹		(1.71	)%		2.42	%		5.31	%		6.98	%
Class B²		(2.09	)		1.47			4.48			6.49⁵
Class C³		(1.96	)		1.90			4.81			6.46
Class Y⁴		(1.58	)		2.48			5.57			7.26
After deducting maximum sales charge
Class A¹		(6.09	)%		(2.16	)%		4.35	%		6.50	%
Class B²		(6.83	)		(3.27	)		4.20			6.49⁵
Class C³		(2.67	)		1.19			4.81			6.46
BofA Merrill Lynch US High Yield Cash Pay Constrained Index⁶		(0.39	)%		4.49	%		7.43	%		8.66	%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2011 prospectuses were as follows: Class A—1.37% and 1.20%; Class B—2.17% and 1.95%; Class C—1.86% and 1.70%; Class Y—1.03% and 0.95%. 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 UBS Global Asset Management (Americas) Inc., the Fund's investment advisor ("UBS Global AM (Americas)" or 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 expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and security loan fees for securities sold short) to the extent necessary so that the Fund's ordinary operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and security loan fees for securities sold short), through the period ending October 27, 2012, do not exceed 1.20% for Class A shares, 1.95% for Class B shares, 1.70% for Class C shares and 0.95% for Class Y shares. 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 Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.

⁵ Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁶ The BofA Merrill Lynch US High Yield Cash Pay Constrained Index is an unmanaged index of publicly placed non-convertible, coupon-bearing US dollar denominated below investment grade corporate 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. Investors should note that indices do not reflect the deduction of fees and expenses.

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 period of less than one year have not been annualized. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://globalam-us.ubs.com/corpweb/performance.do.

UBS High Yield Fund

Top ten long-term fixed income holdings (unaudited)

As of December 31, 2011

	Percentage of net assets
Nova Chemicals Corp., 8.625%, due 11/01/19		1.2	%
CF Industries, Inc., 7.125%, due 05/01/20		1.1
Ally Financial, Inc., 8.300%, due 02/12/15		1.1
El Paso Corp., 7.750%, due 01/15/32		1.0
Frontier Communications Corp., 8.250%, due 04/15/17		0.9
OGX Petroleo e Gas Participacoes SA, 8.500%, due 06/01/18		0.9
Ford Motor Credit Co. LLC, 12.000%, due 05/15/15		0.9
CIT Group, Inc., 7.000%, due 05/01/16		0.9
Ford Motor Co., 7.450%, due 07/16/31		0.9
Seagate HDD Cayman, 7.750%, due 12/15/18		0.9
Total		9.8	%

Industry diversification (unaudited)

As a percentage of net assets as of December 31, 2011

Bonds
Corporate bonds
Aerospace	0.77	%
Air transportation	0.20
Automotive & auto parts distributors	4.82
Banks & thrifts	2.09
Broadcasting	1.03
Building materials	0.88
Cable TV	2.12
Capital goods	0.85
Chemicals	4.86
Consumer products	0.41
Containers	2.62
Diversified financial services	4.26
Diversified media	1.29
Electric utilities	4.40
Energy	14.45
Entertainment/film	0.41
Environmental	0.16
Food & drug retail	1.23
Food/beverage/tobacco	1.85
Gaming	5.82
Healthcare	4.96
Homebuilders/real estate	1.55
Hotel	0.87
Insurance	2.58
Leisure	1.00
Machinery	0.73
Metals/mining	3.25
Paper	1.65
Publishing/printing	0.87
Restaurants	0.42
Services	2.66
Steels	2.21
Super retail index	4.79
Technology	4.63
Telecommunications	7.89
Textile/apparel	0.14
Transportation excluding air/rail	0.97
Total corporate bonds	95.69	%
Commercial mortgage-backed securities	0.69
Total bonds	96.38	%
Common stocks	0.07
Warrants	0.00¹
Short-term investment	1.34
Total investments	97.79	%
Cash and other assets, less liabilities	2.21
Net assets	100.00	%

¹ Amount represents less than 0.005%.

UBS High Yield Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds: 96.38%
Corporate bonds: 95.69%
Australia: 0.83%
FMG Resources August 2006 Pty Ltd., 7.000%, due 11/01/15¹	$	300,000	$	303,000
Mirabela Nickel Ltd., 8.750%, due 04/15/18¹		425,000		381,438
Total Australia corporate bonds				684,438
Austria: 0.31%
PE Paper Escrow GmbH, 12.000%, due 08/01/14¹		235,000		250,275
Brazil: 0.93%
OGX Petroleo e Gas Participacoes SA, 8.500%, due 06/01/18¹		775,000		759,500
Canada: 2.85%
Bombardier, Inc., 7.500%, due 03/15/18¹		110,000		117,700
7.750%, due 03/15/20¹		150,000		163,500
CHC Helicopter SA, 9.250%, due 10/15/20¹		250,000		225,000
Connacher Oil and Gas Ltd., 8.500%, due 08/01/19¹		285,000		257,925
Nova Chemicals Corp., 8.625%, due 11/01/19		930,000		1,025,325
Novelis, Inc., 8.375%, due 12/15/17		225,000		239,062
Reliance Intermediate Holdings LP, 9.500%, due 12/15/19¹		200,000		212,000
Trinidad Drilling Ltd., 7.875%, due 01/15/19¹		95,000		97,850
Total Canada corporate bonds				2,338,362
Cayman Islands: 1.13%
Fibria Overseas Finance Ltd., 7.500%, due 05/04/20¹		100,000		97,750
Sable International Finance Ltd., 7.750%, due 02/15/17¹		125,000		125,000
Seagate HDD Cayman, 7.750%, due 12/15/18¹		665,000		707,394
Total Cayman Islands corporate bonds				930,144
France: 0.44%
Cie Generale de Geophysique-Veritas, 7.750%, due 05/15/17		150,000		151,875
CMA CGM SA, 8.500%, due 04/15/17¹		475,000		210,187
Total France corporate bonds				362,062

	Face amount		Value
Germany: 0.36%
Kinove German Bondco GmbH, 9.625%, due 06/15/18¹	$	315,000	$	299,250
Ireland: 0.54%
Ardagh Packaging Finance PLC, 7.375%, due 10/15/17¹		200,000		202,000
Vimpel Communications Via VIP Finance Ireland Ltd. OJSC, 9.125%, due 04/30/18¹		250,000		244,688
Total Ireland corporate bonds				446,688
Italy: 0.46%
Wind Acquisition Finance SA, 7.250%, due 02/15/18¹		150,000		136,500
11.750%, due 07/15/17¹		270,000		241,650
Total Italy corporate bonds				378,150
Luxembourg: 2.01%
APERAM, 7.750%, due 04/01/18¹		150,000		124,500
ConvaTec Healthcare E SA, 10.500%, due 12/15/18¹		400,000		357,000
Expro Finance Luxembourg SCA, 8.500%, due 12/15/16¹		580,000		510,400
Intelsat Jackson Holdings SA, 7.250%, due 10/15/20		100,000		101,500
Intelsat Luxembourg SA, 11.250%, due 02/04/17		575,000		556,313
Total Luxembourg corporate bonds				1,649,713
Mexico: 0.21%
Cemex Finance LLC, 9.500%, due 12/14/16¹		200,000		175,500
Netherlands: 0.39%
LyondellBasell Industries NV, 6.000%, due 11/15/21¹		135,000		140,062
VimpelCom Holdings BV, 6.255%, due 03/01/17¹		200,000		180,000
Total Netherlands corporate bonds				320,062
Russia: 0.25%
Evraz Group SA, 9.500%, due 04/24/18¹		200,000		203,750
South Africa: 0.29%
Edcon Proprietary Ltd., 4.676%, due 06/15/14^2,3	EUR	250,000		238,627

UBS High Yield Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
United Kingdom: 1.82%
Hanson Ltd., 6.125%, due 08/15/16	$	200,000	$	203,000
HBOS Capital Funding LP, 6.071%, due 06/30/14^1,3,4		300,000		186,000
Ineos Finance PLC, 9.000%, due 05/15/15¹		100,000		101,500
Ineos Group Holdings PLC, 8.500%, due 02/15/16¹		155,000		123,225
Vedanta Resources PLC, 8.250%, due 06/07/21¹		200,000		155,000
9.500%, due 07/18/18¹		400,000		344,000
Virgin Media Finance PLC, 8.375%, due 10/15/19		100,000		109,750
9.500%, due 08/15/16		100,000		112,250
Virgin Media Secured Finance PLC, 6.500%, due 01/15/18		150,000		159,375
Total United Kingdom corporate bonds				1,494,100
United States: 82.87%
ACCO Brands Corp., 10.625%, due 03/15/15		75,000		83,438
AES Corp., 8.000%, due 10/15/17		60,000		66,000
8.000%, due 06/01/20		550,000		605,000
AK Steel Corp., 7.625%, due 05/15/20		200,000		188,000
Ally Financial, Inc., 6.750%, due 12/01/14		100,000		100,500
8.000%, due 03/15/20		225,000		230,625
8.300%, due 02/12/15		830,000		875,650
Alta Mesa Holdings, 9.625%, due 10/15/18		215,000		208,550
AMC Entertainment, Inc., 8.750%, due 06/01/19		275,000		284,625
American General Institutional Capital, Series A, 7.570%, due 12/01/45¹		600,000		540,367
American International Group, Inc., 6.250%, due 03/15/37		175,000		126,656
8.175%, due 05/15/58³		130,000		115,700
AMGH Merger Sub, Inc., 9.250%, due 11/01/18¹		135,000		139,050
ARAMARK Corp., 8.500%, due 02/01/15		460,000		471,500
Ashland, Inc., 9.125%, due 06/01/17		165,000		183,975
Atlas Pipeline Partners LP, 8.750%, due 06/15/18¹		125,000		130,625
ATP Oil & Gas Corp., 11.875%, due 05/01/15		50,000		32,875

	Face amount		Value
Avis Budget Car Rental LLC, 7.750%, due 05/15/16	$	125,000	$	125,938
9.625%, due 03/15/18		100,000		103,500
BankAmerica Capital II, 8.000%, due 12/15/26		90,000		81,000
BE Aerospace, Inc., 6.875%, due 10/01/20		175,000		190,750
Belden, Inc., 9.250%, due 06/15/19		100,000		106,750
Berry Petroleum Co., 6.750%, due 11/01/20		200,000		202,000
Berry Plastics Corp., 8.250%, due 11/15/15		125,000		133,125
9.500%, due 05/15/18		140,000		140,700
Boise Paper Holdings LLC, 9.000%, due 11/01/17		70,000		75,250
Boyd Gaming Corp., 9.125%, due 12/01/18		495,000		470,250
Brocade Communications Systems, Inc., 6.875%, due 01/15/20		50,000		53,250
Brunswick Corp., 11.250%, due 11/01/16¹		80,000		92,200
Burlington Coat Factory Warehouse Corp., 10.000%, due 02/15/19		500,000		488,750
Caesars Entertainment Operating Co., Inc., 5.625%, due 06/01/15		500,000		271,250
10.000%, due 12/15/15		225,000		173,250
10.000%, due 12/15/18		780,000		534,300
11.250%, due 06/01/17		250,000		265,312
Calpine Construction Finance Co. LP, 8.000%, due 06/01/16¹		270,000		291,600
Calpine Corp., 7.500%, due 02/15/21¹		285,000		304,950
7.875%, due 07/31/20¹		645,000		694,987
Capella Healthcare, Inc., 9.250%, due 07/01/17		55,000		55,825
Carriage Services, Inc., 7.875%, due 01/15/15		135,000		136,012
Case New Holland, Inc., 7.875%, due 12/01/17		225,000		254,250
Casella Waste Systems, Inc., 11.000%, due 07/15/14		125,000		135,625
CB Richard Ellis Services, Inc., 11.625%, due 06/15/17		100,000		115,250
CDW Finance Corp., 12.535%, due 10/12/17		375,000		376,875
Celanese US Holdings LLC, 5.875%, due 06/15/21		320,000		330,400
6.625%, due 10/15/18		95,000		100,937
Cengage Learning Acquisitions, Inc., 10.500%, due 01/15/15¹		180,000		129,150

UBS High Yield Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
United States—(Continued)
Ceridian Corp., 11.250%, due 11/15/15	$	390,000	$	304,200
CF Industries, Inc., 6.875%, due 05/01/18		130,000		148,850
7.125%, due 05/01/20		785,000		928,262
Chesapeake Energy Corp., 6.625%, due 08/15/20		196,000		210,210
9.500%, due 02/15/15		475,000		543,875
Chrysler Group LLC, 8.000%, due 06/15/19¹		480,000		439,200
CIT Group, Inc., 7.000%, due 05/01/16		755,000		755,000
7.000%, due 05/01/17		497,000		497,000
Clear Channel Communications, Inc., 5.500%, due 09/15/14		130,000		97,500
10.750%, due 08/01/16		430,000		288,100
Clearwater Paper Corp., 7.125%, due 11/01/18		125,000		130,000
Clearwire Communications LLC, 12.000%, due 12/01/15¹		155,000		148,412
Community Health Systems, Inc., 8.000%, due 11/15/19¹		125,000		126,250
8.875%, due 07/15/15		151,000		155,907
Comstock Resources, Inc., 8.375%, due 10/15/17		35,000		33,862
Consol Energy, Inc., 8.000%, due 04/01/17		200,000		219,000
Constellation Brands, Inc., 8.375%, due 12/15/14		350,000		392,875
Cricket Communications, Inc., 7.750%, due 05/15/16		200,000		206,500
Crosstex Energy LP, 8.875%, due 02/15/18		280,000		305,900
CSC Holdings LLC, 8.625%, due 02/15/19		125,000		144,062
DDR Corp., REIT, 9.625%, due 03/15/16		310,000		360,605
Delta Air Lines, Inc., 12.250%, due 03/15/15¹		160,000		167,200
Denbury Resources, Inc., 8.250%, due 02/15/20		125,000		139,687
9.750%, due 03/01/16		335,000		369,337
Diamond Resorts Corp., 12.000%, due 08/15/18		645,000		635,325
DISH DBS Corp., 6.625%, due 10/01/14		400,000		427,000
7.750%, due 05/31/15		100,000		110,000
7.875%, due 09/01/19		600,000		678,000
Dolphin Subsidiary II, Inc., 7.250%, due 10/15/21¹		385,000		415,800

	Face amount		Value
Domtar Corp., 10.750%, due 06/01/17	$	85,000	$	107,100
DuPont Fabros Technology LP, REIT, 8.500%, due 12/15/17		450,000		481,500
E*Trade Financial Corp., 12.500%, due 11/30/17		324,000		366,120
Eagle Parent, Inc., 8.625%, due 05/01/19¹		50,000		47,750
EH Holding Corp., 6.500%, due 06/15/19¹		55,000		57,337
7.625%, due 06/15/21¹		55,000		57,750
El Paso Corp., 7.750%, due 01/15/32		720,000		831,600
Encore Acquisition Co., 9.500%, due 05/01/16		140,000		154,350
Energy Transfer Partners LP, 6.050%, due 06/01/41		240,000		235,332
7.500%, due 07/01/38		200,000		228,345
Entravision Communications Corp., 8.750%, due 08/01/17		225,000		220,500
Equinix, Inc., 7.000%, due 07/15/21		150,000		158,250
8.125%, due 03/01/18		400,000		436,000
ExamWorks Group, Inc., 9.000%, due 07/15/19¹		425,000		384,625
Felcor Lodging LP, 6.750%, due 06/01/19		165,000		158,400
Ferrellgas Partners-LP, 9.125%, due 10/01/17		435,000		454,575
FireKeepers Development Authority, 13.875%, due 05/01/15¹		540,000		612,900
First Data Corp., 9.875%, due 09/24/15		410,000		385,400
11.250%, due 03/31/16		195,000		161,850
Ford Motor Co., 7.450%, due 07/16/31		615,000		738,000
Ford Motor Credit Co. LLC, 5.750%, due 02/01/21		450,000		468,959
6.625%, due 08/15/17		275,000		299,354
8.125%, due 01/15/20		160,000		188,331
8.700%, due 10/01/14		250,000		279,151
12.000%, due 05/15/15		620,000		759,494
Forest Oil Corp., 7.250%, due 06/15/19		310,000		316,200
8.500%, due 02/15/14		140,000		152,600
Freescale Semiconductor, Inc., 9.250%, due 04/15/18¹		115,000		122,906
10.125%, due 03/15/18¹		110,000		119,900
10.750%, due 08/01/20		101,000		105,293
Frontier Communications Corp., 8.250%, due 04/15/17		755,000		771,988
8.500%, due 04/15/20		60,000		61,425
9.000%, due 08/15/31		380,000		346,750

UBS High Yield Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
United States—(Continued)
FTI Consulting, Inc., 6.750%, due 10/01/20	$	100,000	$	103,250
Gannett Co., Inc., 9.375%, due 11/15/17		150,000		162,750
GenOn Energy, Inc., 9.500%, due 10/15/18		340,000		344,250
9.875%, due 10/15/20		200,000		203,000
Geo Group, Inc., 7.750%, due 10/15/17		125,000		132,812
Georgia Gulf Corp., 9.000%, due 01/15/17¹		235,000		248,512
Georgia-Pacific LLC, 8.250%, due 05/01/16¹		375,000		416,610
Glen Meadow Pass-Through Trust, 6.505%, due 02/12/67^1,3		300,000		211,500
Goodyear Tire & Rubber Co., 10.500%, due 05/15/16		240,000		264,600
Graphic Packaging International, Inc., 7.875%, due 10/01/18		120,000		127,800
9.500%, due 06/15/17		55,000		60,225
Grifols, Inc., 8.250%, due 02/01/18		165,000		173,250
Gulfmark Offshore, Inc., 7.750%, due 07/15/14		215,000		215,000
Harland Clarke Holdings Corp., 9.500%, due 05/15/15		290,000		211,700
HCA, Inc., 7.500%, due 02/15/22		375,000		383,437
8.500%, due 04/15/19		275,000		301,125
Helix Energy Solutions Group, Inc., 9.500%, due 01/15/16¹		470,000		488,800
Hexion US Finance Corp., 8.875%, due 02/01/18		145,000		135,937
Hilcorp Finance Co., 7.625%, due 04/15/21¹		125,000		130,937
8.000%, due 02/15/20¹		85,000		90,950
Hilton Worldwide, Inc., 4.957%, due 11/15/13^1,3		250,000		247,757
Host Hotels & Resorts LP, REIT, 9.000%, due 05/15/17		285,000		309,937
Huntington Ingalls Industries, Inc., 6.875%, due 03/15/18¹		95,000		93,100
7.125%, due 03/15/21¹		75,000		73,500
Icahn Enterprises LP, 8.000%, due 01/15/18		125,000		130,000
ILFC E-Capital Trust I, 4.340%, due 12/21/65^1,3		195,000		115,046
Inergy LP, 6.875%, due 08/01/21		129,000		129,645
7.000%, due 10/01/18		80,000		81,200

	Face amount		Value
Ingles Markets, Inc., 8.875%, due 05/15/17	$	205,000	$	221,912
Interactive Data Corp., 10.250%, due 08/01/18		25,000		27,125
International Lease Finance Corp., 7.125%, due 09/01/18¹		575,000		595,125
8.625%, due 09/15/15		370,000		379,250
8.750%, due 03/15/17		220,000		226,600
Iron Mountain, Inc., 8.000%, due 06/15/20		125,000		130,156
8.375%, due 08/15/21		300,000		319,500
Jabil Circuit, Inc., 8.250%, due 03/15/18		150,000		172,875
Jacobs Entertainment, Inc., 9.750%, due 06/15/14		120,000		111,000
JC Penney Corp., Inc., 7.125%, due 11/15/23		325,000		325,000
JMC Steel Group, 8.250%, due 03/15/18¹		130,000		126,750
KEMET Corp., 10.500%, due 05/01/18		100,000		105,750
Key Energy Services, Inc., 6.750%, due 03/01/21		200,000		200,000
Landry's Restaurants, Inc., 11.625%, due 12/01/15		325,000		342,062
Level 3 Financing, Inc., 9.250%, due 11/01/14		241,000		246,422
10.000%, due 02/01/18		320,000		339,200
Libbey Glass, Inc., 10.000%, due 02/15/15		68,000		72,760
Liberty Mutual Group, Inc., 7.800%, due 03/15/37¹		125,000		111,250
10.750%, due 06/15/58^1,3		235,000		294,925
Limited Brands, Inc., 7.600%, due 07/15/37		100,000		99,500
8.500%, due 06/15/19		155,000		180,575
Lincoln National Corp., 7.000%, due 05/17/66³		520,000		469,300
Linn Energy LLC, 6.500%, due 05/15/19¹		200,000		198,500
7.750%, due 02/01/21		240,000		249,600
8.625%, due 04/15/20		160,000		173,600
Lyondell Chemical Co., 11.000%, due 05/01/18		219,604		239,917
Macy's Retail Holdings, Inc., 6.375%, due 03/15/37		225,000		261,383
Manitowoc Co., Inc., 8.500%, due 11/01/20		325,000		342,469
Marina District Finance Co., Inc., 9.500%, due 10/15/15		605,000		565,675
MarkWest Energy Partners LP, 6.750%, due 11/01/20		100,000		104,750

UBS High Yield Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
United States—(Continued)
Marquette Transportation Finance Corp., 10.875%, due 01/15/17	$	100,000	$	100,750
Masco Corp., 7.125%, due 03/15/20		150,000		151,384
McClatchy Co., 11.500%, due 02/15/17		210,000		203,175
McJunkin Red Man Corp., 9.500%, due 12/15/16		355,000		360,325
MedAssets, Inc., 8.000%, due 11/15/18		300,000		294,000
Mercer International, Inc., 9.500%, due 12/01/17		205,000		209,613
Meritage Homes Corp., 6.250%, due 03/15/15		100,000		98,500
Meritor, Inc., 10.625%, due 03/15/18		150,000		141,000
MGM Resorts International, 10.000%, due 11/01/16		555,000		582,750
11.125%, due 11/15/17		200,000		228,000
Michael Foods, Inc., 9.750%, due 07/15/18		220,000		231,550
Michaels Stores, Inc., 7.750%, due 11/01/18		160,000		161,600
11.375%, due 11/01/16		215,000		227,879
Mirant Americas Generation LLC, 9.125%, due 05/01/31		240,000		217,200
Multiplan, Inc., 9.875%, due 09/01/18¹		485,000		504,400
Murray Energy Corp., 10.250%, due 10/15/15¹		685,000		679,863
Mylan, Inc., 7.625%, due 07/15/17¹		275,000		300,094
Navios Maritime Acquisition Corp., 8.625%, due 11/01/17		450,000		326,250
Navios Maritime Holdings, Inc., 8.875%, due 11/01/17		160,000		152,400
Navistar International Corp., 8.250%, due 11/01/21		113,000		120,204
NB Capital Trust II, 7.830%, due 12/15/26		115,000		102,350
Nexstar Broadcasting, Inc., 8.875%, due 04/15/17		125,000		128,125
Nextel Communications, Inc., Series D, 7.375%, due 08/01/15		370,000		338,550
Nielsen Finance LLC, 7.750%, due 10/15/18		35,000		37,800
11.625%, due 02/01/14		91,000		104,536
Niska Gas Storage US LLC, 8.875%, due 03/15/18		640,000		625,600

	Face amount		Value
NRG Energy, Inc., 7.625%, due 05/15/19¹	$	105,000	$	102,900
8.500%, due 06/15/19		200,000		203,000
Omnicare, Inc., 7.750%, due 06/01/20		42,000		45,098
Owens-Brockway Glass Container, Inc., 7.375%, due 05/15/16		435,000		476,325
PAETEC Holding Corp., 9.875%, due 12/01/18		400,000		440,000
Patriot Coal Corp., 8.250%, due 04/30/18		125,000		120,000
Peabody Energy Corp., 7.375%, due 11/01/16		200,000		220,000
Petco Animal Supplies, Inc., 9.250%, due 12/01/18¹		345,000		370,013
Pinnacle Foods Finance LLC, 10.625%, due 04/01/17		230,000		241,500
Plains Exploration & Production Co., 7.625%, due 06/01/18		127,000		134,620
Production Resource Group, Inc., 8.875%, due 05/01/19¹		50,000		45,750
Prospect Medical Holdings, Inc., 12.750%, due 07/15/14		200,000		218,000
QEP Resources, Inc., 6.875%, due 03/01/21		105,000		113,138
Quicksilver Resources, Inc., 7.125%, due 04/01/16		350,000		348,250
9.125%, due 08/15/19		75,000		79,500
11.750%, due 01/01/16		140,000		158,900
Quiksilver, Inc., 6.875%, due 04/15/15		125,000		116,094
QVC, Inc., 7.125%, due 04/15/17¹		70,000		74,200
7.500%, due 10/01/19¹		515,000		552,338
Radiation Therapy Services, Inc., 9.875%, due 04/15/17		100,000		74,750
Range Resources Corp., 5.750%, due 06/01/21		140,000		151,550
7.250%, due 05/01/18		175,000		187,250
RBS Global, Inc., 8.500%, due 05/01/18		140,000		148,400
Residential Capital LLC, 9.625%, due 05/15/15		125,000		87,500
Reynolds Group Issuer, Inc., 7.875%, due 08/15/19¹		100,000		104,500
8.750%, due 10/15/16¹		200,000		210,500
9.875%, due 08/15/19¹		450,000		436,500
Rite Aid Corp., 8.625%, due 03/01/15		230,000		221,950
10.375%, due 07/15/16		300,000		318,750
Roofing Supply Group LLC, 8.625%, due 12/01/17¹		162,000		165,240

UBS High Yield Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
United States—(Continued)
Royal Caribbean Cruises Ltd., 7.500%, due 10/15/27	$	190,000	$	186,200
Ryerson, Inc., 12.000%, due 11/01/15		580,000		585,800
SandRidge Energy, Inc., 8.750%, due 01/15/20		210,000		216,825
9.875%, due 05/15/16¹		190,000		203,300
Sanmina-SCI Corp., 7.000%, due 05/15/19¹		325,000		316,875
Sealed Air Corp., 8.375%, due 09/15/21¹		240,000		265,200
Sealy Mattress Co., 10.875%, due 04/15/16¹		84,000		91,770
SESI LLC, 7.125%, due 12/15/21¹		115,000		120,750
Severstal Columbus LLC, 10.250%, due 02/15/18		200,000		209,500
Shingle Springs Tribal Gaming Authority, 9.375%, due 06/15/15¹		365,000		206,225
Smithfield Foods, Inc., 10.000%, due 07/15/14		102,000		118,575
Sprint Capital Corp., 6.875%, due 11/15/28		175,000		124,906
8.750%, due 03/15/32		430,000		347,763
Sprint Nextel Corp., 6.000%, due 12/01/16		335,000		278,050
8.375%, due 08/15/17		415,000		371,944
9.000%, due 11/15/18¹		135,000		141,750
11.500%, due 11/15/21¹		45,000		44,550
SPX Corp., 7.625%, due 12/15/14		400,000		440,000
SquareTwo Financial Corp., 11.625%, due 04/01/17		355,000		342,575
Standard Pacific Corp., 10.750%, due 09/15/16		115,000		120,750
SunGard Data Systems, Inc., 10.625%, due 05/15/15		327,000		348,255
SUPERVALU, Inc., 8.000%, due 05/01/16		235,000		242,638
Susser Holdings LLC, 8.500%, due 05/15/16		50,000		53,938
Swift Energy Co., 7.875%, due 03/01/22¹		75,000		74,063
Tenet Healthcare Corp., 6.875%, due 11/15/31		150,000		123,000
8.000%, due 08/01/20		160,000		160,200
Tesoro Corp., 9.750%, due 06/01/19		205,000		230,113

	Face amount		Value
Texas Competitive Electric Holdings Co. LLC, Series A, 10.250%, due 11/01/15	$	445,000	$	157,975
Toll Brothers Finance Corp., 8.910%, due 10/15/17		80,000		92,196
Tomkins LLC, 9.000%, due 10/01/18		243,000		269,426
Toys R Us Property Co. II LLC, 8.500%, due 12/01/17		505,000		522,675
Tube City IMS Corp., 9.750%, due 02/01/15		240,000		242,400
Tunica-Biloxi Gaming Authority, 9.000%, due 11/15/15¹		250,000		240,625
Tyson Foods, Inc., 10.500%, due 03/01/14		175,000		202,125
U.S. Foodservice, 8.500%, due 06/30/19¹		140,000		135,450
Unisys Corp., 12.750%, due 10/15/14¹		154,000		174,983
United States Steel Corp., 7.375%, due 04/01/20		150,000		146,250
Univision Communications, Inc., 7.875%, due 11/01/20¹		35,000		35,525
8.500%, due 05/15/21¹		185,000		168,350
USG Corp., 8.375%, due 10/15/18¹		35,000		32,200
Vanguard Health Holding Co. II LLC, 8.000%, due 02/01/18		225,000		223,313
Verso Paper Holdings LLC, Series B, 11.375%, due 08/01/16		140,000		57,400
Viskase Cos., Inc., 9.875%, due 01/15/18¹		200,000		202,500
Warner Chilcott Co. LLC, 7.750%, due 09/15/18		200,000		204,250
West Corp., 7.875%, due 01/15/19		250,000		248,125
11.000%, due 10/15/16		300,000		315,750
Whiting Petroleum Corp., 6.500%, due 10/01/18		250,000		261,250
WMG Acquisition Corp., 9.500%, due 06/15/16		635,000		688,975
XL Group PLC, Series E, 6.500%, due 04/15/17^3,4		315,000		246,488
XM Satellite Radio, Inc., 13.000%, due 08/01/13¹		115,000		130,525
YCC Holdings LLC, 10.250%, due 02/15/16⁵		425,000		371,875
Yonkers Racing Corp., 11.375%, due 07/15/16¹		500,000		515,000

UBS High Yield Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Concluded)
Corporate bonds—(Concluded)
United States—(Concluded)
Zions Bancorp., 5.500%, due 11/16/15	$	140,000	$	141,548
Total United States corporate bonds				68,071,195
Total corporate bonds (cost $78,441,509)				78,601,816
Commercial mortgage-backed securities: 0.69%
United States: 0.69%
CW Capital Cobalt Ltd., Series 2007-C3, Class AJ, 5.816%, due 05/15/46³		250,000		119,844
GE Capital Commercial Mortgage Corp., Series 2007-C1, Class AJ, 5.677%, due 12/10/49³		225,000		108,000
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2007-LD11, Class AM, 5.817%, due 06/15/49³		305,000		259,875
Wachovia Bank Commercial Mortgage Trust, Series 2007-C33, Class AM, 5.899%, due 02/15/51³		100,000		83,706
Total commercial mortgage-backed securities (cost $644,136)				571,425
Total bonds (cost $79,085,645)				79,173,241

	Shares		Value
Common stocks: 0.07%
United States: 0.07%
American Restaurant Group, Inc.*^†6		972	$	0
Knology, Inc.*		3,926		55,749
Pliant Corp.*^†6,7		1		0
Total common stocks (cost $0)				55,749
	Number of Warrants
Warrants: 0.00%⁸
CMP Susquehanna Radio Holdings Corp., strike @ $0.01, expires 03/26/19*^†6		13,325		133
Sabreliner Corp., strike @ $0.01, expires 06/08/18*^†6		8,400		0
Total warrants (cost $153,135)				133
Short-term investment: 1.34%
Investment company: 1.34%
UBS Cash Management Prime Relationship Fund⁹(cost $1,103,016)		1,103,016		1,103,016
Total investments: 97.79% (cost $80,341,796)				80,332,139
Cash and other assets, less liabilities: 2.21%				1,812,833
Net assets: 100.00%			$	82,144,972

Notes to portfolio of investments

Aggregate cost for federal income tax purposes was substantially the same as for book purposes; and net unrealized depreciation consisted of:

Gross unrealized appreciation	$	3,389,703
Gross unrealized depreciation		(3,399,360	)
Net unrealized depreciation of investments	$	(9,657	)

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 59.

* Non-income producing security.

^† Holding is illiquid. At December 31, 2011, the value of this security amounted to $133 or 0.00% of net assets.

² Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. At December 31, 2011, the value of this security amounted to $238,627 or 0.29% of net assets.

³ Variable or floating rate security: The interest rate shown is the current rate as of December 31, 2011 and changes periodically.

⁴ Perpetual bond security. The maturity date reflects the next call date.

⁵ PIK: Payment-in kind security. Income may be paid in cash or additional notes, at the discretion of the issuer.

UBS High Yield Fund

Portfolio of investments

December 31, 2011 (unaudited)

⁶ Security is being fair valued by a valuation committee under the direction of the Board of Trustees. At December 31, 2011, the value of these securities amounted to $133 or 0.00% of net assets.

⁷ This security, which represent 0.00% of net assets as of December 31, 2011, is considered restricted. (See restricted security table below for more information.)

Restricted security				Acquisition date				Acquisition cost				Acquisition cost as a percentage of net assets				Value 12/31/11				Value as a percentage of net assets
Pliant Corp.				10/20/00				$	0				0.00	%		$	0				0.00	%

⁸ Amount represents less than 0.005%.

⁹ The table below details the Fund's investments in a fund that is advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Fund.

Security description				Value 06/30/11				Purchases during the six months ended 12/31/11				Sales during the six months ended 12/31/11				Value 12/31/11				Income earned from affiliate for the six months ended 12/31/11
UBS Cash Management Prime Relationship Fund				$	3,024,386			$	18,294,896			$	20,216,266			$	1,103,016			$	945

Forward foreign currency contracts

Counterparty

Contracts
to deliver

In
exchange for

Maturity
date

Unrealized
appreciation

JPMorgan Chase Bank

EUR

455,000

USD

593,464

01/30/12

4,476

The following is a summary of the inputs used as of December 31, 2011 in valuing the Fund's investments:

Description	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Corporate bonds	$	—	$	78,601,816	$	—	$	78,601,816
Commercial mortgage-backed securities		—		571,425		—		571,425
Common stocks		55,749		—		0		55,749
Warrants		—		—		133		133
Short-term investment		—		1,103,016		—		1,103,016
Forward foreign currency contract		—		4,476		—		4,476
Total	$	55,749	$	80,280,733	$	133	$	80,336,615

UBS High Yield Fund

Portfolio of investments

December 31, 2011 (unaudited)

Concluded

Level 3 Rollforward Disclosure

The following is a rollforward of the Fund's investments that were valued using unobservable inputs for the period:

	Common stocks		Preferred stock			Warrants		Total
Assets
Beginning balance	$	0	$	117		$	133	$	250
Purchases		—		—			—		—
Issuances		—		—			—		—
Sales		—		(116,610	)		—		(116,610	)
Settlements		—		—			—		—
Accrued discounts (premiums)		—		—			—		—
Total realized gain (loss)		—		116,475			—		116,475
Change in net unrealized appreciation/depreciation		—		18			—		18
Transfers into Level 3		—		—			—		—
Transfers out of Level 3		—		—			—		—
Ending balance	$	0	$	—		$	133	$	133

The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at December 31, 2011 was $(0).

See accompanying notes to financial statements
58

The UBS Funds

Portfolio acronymns

BBA British Banking Association

BBSW Bank Bill Swap Reference Rate (Australian Financial Market)

CD KSDA Korean Securities Dealer Association 91 day Certificate of Deposit Rate

CDO Collateralized debt obligations

CLO Collateralized loan obligations

EURIBOR Euro Interbank Offered Rate

GE General Electric

GO General Obligation

LIBOR London Interbank Offered Rate

OJSC Open joint stock company

PO Principal only security—This security entitles the holder to receive principal payments from an underlying pool of assets or on the security itself. In the case of asset-backed securities, high prepayments return principal faster than expected and cause the yield to increase. Low prepayments return principal slower than expected and cause the yield to decrease.

REIT Real estate investment trust

Re-REMIC Combined Real Estate Mortgage Investment Conduit

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

Currency abbreviations

AUD Australian Dollar

CAD Canadian Dollar

CHF Swiss Franc

DKK Danish Krone

EUR Euro

GBP Great Britain Pound

JPY Japanese Yen

KRW Korean Won

NOK Norwegian Krone

SEK Swedish Krona

USD United States Dollar

See accompanying notes to financial statements
59

The UBS Funds

December 31, 2011 (unaudited)

Explanation of expense disclosure

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, July 1, 2011 to December 31, 2011.

Actual expenses

The first line for 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.

This projection assumes that annualized expense ratios were in effect during the period July 1, 2011 to December 31, 2011.

The UBS Funds

December 31, 2011 (unaudited)

		Beginning account value July 1, 2011		Ending account value December 31, 2011		Expenses paid during period* 07/01/11 – 12/31/11		Expense ratio during period
UBS Core Plus Bond Fund
Class A	Actual	$	1,000.00	$	1,047.70	$	3.29		0.64	%
	Hypothetical (5% annual return before expenses)		1,000.00		1,021.92		3.25		0.64
Class B	Actual		1,000.00		1,043.80		7.14		1.39
	Hypothetical (5% annual return before expenses)		1,000.00		1,018.15		7.05		1.39
Class C	Actual		1,000.00		1,044.10		5.86		1.14
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.41		5.79		1.14
Class Y	Actual		1,000.00		1,049.10		2.01		0.39
	Hypothetical (5% annual return before expenses)		1,000.00		1,023.18		1.98		0.39
UBS Fixed Income Opportunities Fund
Class A	Actual		1,000.00		996.70		4.77		0.95
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.36		4.82		0.95
Class C	Actual		1,000.00		994.20		7.27		1.45
	Hypothetical (5% annual return before expenses)		1,000.00		1,017.85		7.35		1.45
Class Y	Actual		1,000.00		998.10		3.52		0.70
	Hypothetical (5% annual return before expenses)		1,000.00		1,021.62		3.56		0.70
UBS Global Bond Fund
Class A	Actual		1,000.00		999.90		5.78		1.15
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.36		5.84		1.15
Class B	Actual		1,000.00		996.30		9.53		1.90
	Hypothetical (5% annual return before expenses)		1,000.00		1,015.58		9.63		1.90
Class C	Actual		1,000.00		997.40		8.28		1.65
	Hypothetical (5% annual return before expenses)		1,000.00		1,016.84		8.36		1.65
Class Y	Actual		1,000.00		1,001.00		4.53		0.90
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.61		4.57		0.90

* Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period).

The UBS Funds

December 31, 2011 (unaudited)

		Beginning account value July 1, 2011		Ending account value December 31, 2011		Expenses paid during period* 07/01/11 – 12/31/11		Expense ratio during period
UBS High Yield Fund
Class A	Actual	$	1,000.00	$	982.90	$	5.98		1.20	%
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.10		6.09		1.20
Class B	Actual		1,000.00		979.10		9.70		1.95
	Hypothetical (5% annual return before expenses)		1,000.00		1,015.33		9.88		1.95
Class C	Actual		1,000.00		980.40		8.46		1.70
	Hypothetical (5% annual return before expenses)		1,000.00		1,016.59		8.62		1.70
Class Y	Actual		1,000.00		984.20		4.74		0.95
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.36		4.82		0.95

* Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period).

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The UBS Funds

Financial statements

Statement of assets and liabilities
December 31, 2011 (unaudited)

	UBS Core Plus Bond Fund		UBS Fixed Income Opportunities Fund
Assets:
Investments, at cost:
Unaffiliated issuers	$	41,451,148	$	71,769,945
Affiliated issuers		5,470,470		16,988,888
Investments of cash collateral in affiliated issuers received from securities loaned, at cost¹		56,375		—
Foreign currency, at cost		—		1,442,206
	$	46,977,993	$	90,201,039
Investments, at value:
Unaffiliated issuers	$	42,361,349	$	69,208,659
Affiliated issuers		5,473,889		17,867,099
Investments of cash collateral in affiliated issuers received from securities loaned, at value¹		56,375		—
Foreign currency, at value		—		652,511
Cash		—		—
Receivables:
Investment securities sold		1,677,305		1,906,721
Interest		231,003		977,835
Fund shares sold		106,491		26,919
Due from advisor		5,569		—
Due from broker		397,195		273,463
Cash collateral for futures contracts		31,361		597,064
Cash collateral for swap agreements		—		2,588,000
Outstanding swap agreements, at value²		4,081		8,211,698
Unrealized appreciation on forward foreign currency contracts		72,699		659,753
Other assets		36,758		37,907
Total assets		50,454,075		103,007,629
Liabilities:
Payables:
Cash collateral from securities loaned		56,375		—
Investment securities purchased		6,150,663		954,787
Investment advisory and administration fee		—		20,319
Fund shares redeemed		38,610		435,972
Custody and fund accounting fees		8,697		10,495
Distribution and service fees		3,211		16,022
Trustees' fees		4,327		5,325
Due to custodian		—		—
Accrued expenses		65,263		81,345
Options written, at value³		—		2,507,383
Outstanding swap agreements, at value²		6,067		14,985,929
Unrealized depreciation on forward foreign currency contracts		24,474		133,620
Total liabilities		6,357,687		19,151,197
Net assets	$	44,096,388	$	83,856,432

¹ The market value of securities loaned by UBS Core Plus Bond Fund as of December 31, 2011 was $343,964.

² Net upfront payments received by UBS Core Plus Bond Fund and UBS Fixed Income Opportunities Fund were $4,894 and $497,265, respectively, and net upfront payments made by UBS Global Bond Fund were $26,605.

³ Premiums received by UBS Fixed Income Opportunities Fund were $2,763,142.

The UBS Funds

Financial statements

	UBS Global Bond Fund		UBS High Yield Fund
Assets:
Investments, at cost:
Unaffiliated issuers	$	13,253,100	$	79,238,780
Affiliated issuers		479,734		1,103,016
Investments of cash collateral in affiliated issuers received from securities loaned, at cost¹		—		—
Foreign currency, at cost		229,493		356,705
	$	13,962,327	$	80,698,501
Investments, at value:
Unaffiliated issuers	$	13,495,655	$	79,229,123
Affiliated issuers		479,734		1,103,016
Investments of cash collateral in affiliated issuers received from securities loaned, at value¹		—		—
Foreign currency, at value		228,874		356,788
Cash		—		—
Receivables:
Investment securities sold		—		—
Interest		183,536		1,615,177
Fund shares sold		491		260
Due from advisor		9,088		—
Due from broker		519		—
Cash collateral for futures contracts		20,304		—
Cash collateral for swap agreements		—		—
Outstanding swap agreements, at value²		46,325		—
Unrealized appreciation on forward foreign currency contracts		37,844		4,476
Other assets		29,780		39,475
Total assets		14,532,150		82,348,315
Liabilities:
Payables:
Cash collateral from securities loaned		—		—
Investment securities purchased		—		—
Investment advisory and administration fee		—		40,033
Fund shares redeemed		99,843		44,926
Custody and fund accounting fees		8,611		7,069
Distribution and service fees		3,025		13,487
Trustees' fees		3,905		5,191
Due to custodian		422		127
Accrued expenses		59,957		92,510
Options written, at value³		—		—
Outstanding swap agreements, at value²		31,521		—
Unrealized depreciation on forward foreign currency contracts		27,402		—
Total liabilities		234,686		203,343
Net assets	$	14,297,464	$	82,144,972

See accompanying notes to financial statements.
65

The UBS Funds

Financial statements

Statement of assets and liabilities (continued)
December 31, 2011 (unaudited)

	UBS Core Plus Bond Fund			UBS Fixed Income Opportunities Fund¹
Net assets consist of:
Beneficial interest	$	77,919,499		$	90,364,081
Accumulated undistributed (distributions in excess of) net investment income		291,429			101,722
Accumulated net realized gain (loss)		(35,062,723	)		471,776
Net unrealized appreciation (depreciation)		948,183			(7,081,147	)
Net assets	$	44,096,388		$	83,856,432
Class A:
Net assets	$	8,384,726		$	51,156,079
Shares outstanding		932,591			5,399,715
Net asset value and redemption proceeds per share	$	8.99		$	9.47
Offering price per share (NAV per share plus maximum sales charge)²	$	9.41		$	9.92
Class B:
Net assets	$	48,748			N/A
Shares outstanding		5,414			N/A
Net asset value and offering price per share	$	9.00			N/A
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)²	$	8.55			N/A
Class C:
Net assets	$	2,250,786		$	7,120,428
Shares outstanding		251,164			752,426
Net asset value and offering price per share	$	8.96		$	9.46
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)²	$	8.89		$	9.39
Class Y:
Net assets	$	33,412,128		$	25,579,925
Shares outstanding		3,721,018			2,697,165
Net asset value per share, offering price per share, and redemption proceeds per share²	$	8.98		$	9.48

¹ UBS Fixed Income Opportunities Fund does not offer Class B shares.

² For Class A, the maximum sales charge is 4.50% for each Fund, Classes B, C and Y have no front-end sales charges. For Class A shares of each Fund, 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 $1,000,000 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%. For Class C, the maximum contingent deferred sales charge is 0.75% for each Fund. Class Y has no contingent deferred sales charge.

The UBS Funds

Financial statements

	UBS Global Bond Fund			UBS High Yield Fund
Net assets consist of:
Beneficial interest	$	30,535,506		$	167,503,305
Accumulated undistributed (distributions in excess of) net investment income		(176,019	)		565,767
Accumulated net realized gain (loss)		(16,291,249	)		(85,918,996	)
Net unrealized appreciation (depreciation)		229,226			(5,104	)
Net assets	$	14,297,464		$	82,144,972
Class A:
Net assets	$	5,774,965		$	38,633,164
Shares outstanding		828,673			6,559,527
Net asset value and redemption proceeds per share	$	6.97		$	5.89
Offering price per share (NAV per share plus maximum sales charge)²	$	7.30		$	6.17
Class B:
Net assets	$	43,738		$	450,350
Shares outstanding		6,251			76,398
Net asset value and offering price per share	$	7.00		$	5.89
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)²	$	6.65		$	5.60
Class C:
Net assets	$	2,776,972		$	7,850,350
Shares outstanding		399,976			1,331,441
Net asset value and offering price per share	$	6.94		$	5.90
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)²	$	6.89		$	5.86
Class Y:
Net assets	$	5,701,789		$	35,211,108
Shares outstanding		700,514			5,924,456
Net asset value per share, offering price per share, and redemption proceeds per share²	$	8.14		$	5.94

See accompanying notes to financial statements.
67

The UBS Funds

Financial statements

Statement of operations
For the six months ended December 31, 2011 (unaudited)

	UBS Core Plus Bond Fund			UBS Fixed Income Opportunities Fund
Investment income:
Interest and other	$	625,466		$	2,148,993
Affiliated interest		3,119			2,174
Securities lending¹		809			—
Foreign tax withheld		—			—
Total income		629,394			2,151,167
Expenses:
Advisory and administration	$	122,103		$	335,741
Service and distribution:
Class A		9,833			73,999
Class B		249			—
Class C		8,242			29,084
Transfer agency and related service fees:
Class A		5,950			5,611
Class B		60			—
Class C		812			1,447
Class Y		4,392			29
Custodian and fund accounting		25,433			44,204
Federal and state registration		25,144			11,120
Professional services		48,859			51,092
Shareholder reports		2,653			5,395
Trustees		8,712			10,623
Amortization of offering costs		—			74,287
Other		9,526			4,724
Total expenses		271,968			647,356
Fee waivers and/or expense reimbursements by Advisor		(171,076	)		(221,321	)
Net expenses		100,892			426,035
Net investment income		528,502			1,725,132
Net realized gain (loss) on:
Investments in unaffiliated issuers		1,342,765			(5,475,287	)
Investments in affiliated issuers		113,699			—
Futures contracts		(83,325	)		4,648,079
Options written		—			2,480,164
Swap agreements		(287,981	)		872,596
Forward foreign currency contracts		15,883			724,498
Foreign currency transactions		—			(134,250	)
Net realized gain		1,101,041			3,115,800
Change in net unrealized appreciation/depreciation on:
Investments		123,321			(1,385,267	)
Futures contracts		572			165,217
Options written		—			59,193
Swap agreements		140,958			(5,259,053	)
Forward foreign currency contracts		48,225			1,200,265
Translation of other assets and liabilities denominated in foreign currency		—			(4,785	)
Change in net unrealized appreciation/depreciation		313,076			(5,224,430	)
Net realized and unrealized gain (loss)		1,414,117			(2,108,630	)
Net increase (decrease) in net assets resulting from operations	$	1,942,619		$	(383,498	)

¹ Includes affiliated income from UBS Private Money Market Fund LLC of $18 for UBS Core Plus Bond Fund.

The UBS Funds

Financial statements

	UBS Global Bond Fund			UBS High Yield Fund
Investment income:
Interest and other	$	278,320		$	3,693,462
Affiliated interest		250			945
Securities lending¹		—			—
Foreign tax withheld		—			(2,048	)
Total income		278,570			3,692,359
Expenses:
Advisory and administration	$	56,017		$	292,241
Service and distribution:
Class A		8,007			49,123
Class B		240			2,615
Class C		10,260			29,737
Transfer agency and related service fees:
Class A		3,284			19,254
Class B		87			554
Class C		811			4,625
Class Y		2,974			6,312
Custodian and fund accounting		25,661			20,963
Federal and state registration		23,369			23,792
Professional services		50,226			51,594
Shareholder reports		3,534			16,690
Trustees		7,791			10,392
Amortization of offering costs		—			—
Other		4,648			8,610
Total expenses		196,909			536,502
Fee waivers and/or expense reimbursements by Advisor		(109,119	)		(44,100	)
Net expenses		87,790			492,402
Net investment income		190,780			3,199,957
Net realized gain (loss) on:
Investments in unaffiliated issuers		11,695			605,887
Investments in affiliated issuers		—			—
Futures contracts		37,562			—
Options written		—			—
Swap agreements		(33,073	)		—
Forward foreign currency contracts		28,317			64,066
Foreign currency transactions		62,763			(43,373	)
Net realized gain		107,264			626,580
Change in net unrealized appreciation/depreciation on:
Investments		(248,393	)		(5,572,041	)
Futures contracts		(7,198	)		—
Options written		—			—
Swap agreements		3,995			—
Forward foreign currency contracts		(12,197	)		17,000
Translation of other assets and liabilities denominated in foreign currency		(11,620	)		(453	)
Change in net unrealized appreciation/depreciation		(275,413	)		(5,555,494	)
Net realized and unrealized gain (loss)		(168,149	)		(4,928,914	)
Net increase (decrease) in net assets resulting from operations	$	22,631		$	(1,728,957	)

See accompanying notes to financial statements.
69

The UBS Funds

Financial statements

Statement of changes in net assets

	UBS Core Plus Bond Fund						UBS Fixed Income Opportunities Fund
	Six months ended December 31, 2011 (unaudited)			Year ended June 30, 2011			Six months ended December 31, 2011 (unaudited)			Period ended June 30, 2011¹
Operations:
Net investment income	$	528,502		$	1,301,553		$	1,725,132		$	1,485,703
Net realized gain (loss)		1,101,041			1,007,314			3,115,800			(1,599,593	)
Change in net unrealized appreciation/depreciation		313,076			(39,577	)		(5,224,430	)		(1,856,717	)
Net increase (decrease) in net assets from operations		1,942,619			2,269,290			(383,498	)		(1,970,607	)
Dividends and distributions to shareholders by class:
Class A:
Net investment income and net foreign currency gains		(105,568	)		(440,852	)		(1,005,459	)		(374,094	)
Net realized gain		—			—			(1,313,363	)		—
Return of capital		—			—			—			(368,635	)
Total Class A dividends and distributions		(105,568	)		(440,852	)		(2,318,822	)		(742,729	)
Class B:
Net investment income and net foreign currency gains		(507	)		(1,595	)		—			—
Class C:
Net investment income and net foreign currency gains		(24,763	)		(100,168	)		(118,506	)		(26,993	)
Net realized gain		—			—			(182,288	)		—
Return of capital		—			—			—			(49,759	)
Total Class C dividends and distributions		(24,763	)		(100,168	)		(300,794	)		(76,752	)
Class Y:
Net investment income and net foreign currency gains		(486,001	)		(1,660,450	)		(504,248	)		(155,605	)
Net realized gain		—			—			(639,174	)		—
Return of capital		—			—			—			(246,080	)
Total Class Y dividends and distributions		(486,001	)		(1,660,450	)		(1,143,422	)		(401,685	)
Decrease in net assets from dividends and distributions		(616,839	)		(2,203,065	)		(3,763,038	)		(1,221,166	)
Beneficial interest transactions:
Proceeds from shares sold		6,237,670			5,635,622			4,658,359			116,091,420
Shares issued on reinvestment of dividends and distributions		566,544			2,100,969			2,624,330			911,111
Cost of shares redeemed		(3,308,367	)		(14,834,259	)		(20,233,437	)		(12,945,222	)
Redemption fees		1,330			5,674			123			88,057
Net increase (decrease) in net assets resulting from beneficial interest transactions		3,497,177			(7,091,994	)		(12,950,625	)		104,145,366
Increase (decrease) in net assets		4,822,957			(7,025,769	)		(17,097,161	)		100,953,593
Net assets, beginning of period		39,273,431			46,299,200			100,953,593			—
Net assets, end of period	$	44,096,388		$	39,273,431		$	83,856,432		$	100,953,593
Net assets include accumulated undistributed (distributions in excess of) net investment income	$	291,429		$	379,766		$	101,722		$	4,803

¹ For the period November 29, 2010 (commencement of operations) through June 30, 2011.

The UBS Funds

Financial statements

	UBS Global Bond Fund						UBS High Yield Fund
	Six months ended December 31, 2011 (unaudited)			Year ended June 30, 2011			Six months ended December 31, 2011 (unaudited)			Year ended June 30, 2011
Operations:
Net investment income	$	190,780		$	434,237		$	3,199,957		$	6,957,309
Net realized gain (loss)		107,264			474,516			626,580			3,652,534
Change in net unrealized appreciation/depreciation		(275,413	)		971,055			(5,555,494	)		986,189
Net increase (decrease) in net assets from operations		22,631			1,879,808			(1,728,957	)		11,596,032
Dividends and distributions to shareholders by class:
Class A:
Net investment income and net foreign currency gains		(356,021	)		(659,803	)		(1,444,398	)		(3,000,404	)
Net realized gain		—			—			—			—
Return of capital		—			—			—			—
Total Class A dividends and distributions		(356,021	)		(659,803	)		(1,444,398	)		(3,000,404	)
Class B:
Net investment income and net foreign currency gains		(2,489	)		(9,797	)		(17,157	)		(53,266	)
Class C:
Net investment income and net foreign currency gains		(156,413	)		(212,238	)		(269,651	)		(687,533	)
Net realized gain		—			—			—			—
Return of capital		—			—			—			—
Total Class C dividends and distributions		(156,413	)		(212,238	)		(269,651	)		(687,533	)
Class Y:
Net investment income and net foreign currency gains		(308,738	)		(617,857	)		(1,459,817	)		(3,330,657	)
Net realized gain		—			—			—			—
Return of capital		—			—			—			—
Total Class Y dividends and distributions		(308,738	)		(617,857	)		(1,459,817	)		(3,330,657	)
Decrease in net assets from dividends and distributions		(823,661	)		(1,499,695	)		(3,191,023	)		(7,071,860	)
Beneficial interest transactions:
Proceeds from shares sold		1,053,623			1,967,712			3,935,110			20,020,501
Shares issued on reinvestment of dividends and distributions		696,434			1,330,191			2,266,129			5,403,254
Cost of shares redeemed		(2,414,831	)		(5,923,183	)		(14,636,424	)		(17,758,604	)
Redemption fees		160			580			628			2,033
Net increase (decrease) in net assets resulting from beneficial interest transactions		(664,614	)		(2,624,700	)		(8,434,557	)		7,667,184
Increase (decrease) in net assets		(1,465,644	)		(2,244,587	)		(13,354,537	)		12,191,356
Net assets, beginning of period		15,763,108			18,007,695			95,499,509			83,308,153
Net assets, end of period	$	14,297,464		$	15,763,108		$	82,144,972		$	95,499,509
Net assets include accumulated undistributed (distributions in excess of) net investment income	$	(176,019	)	$	456,862		$	565,767		$	556,833

See accompanying notes to financial statements.
71

UBS Core Plus Bond Fund

Financial highlights

The table below sets forth financial data for one share of beneficial interest outstanding throughout each period presented.

	Class A
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	8.70		$	8.69		$	8.17		$	9.13		$	10.46		$	10.27
Income (loss) from investment operations:
Net investment income¹		0.10			0.24			0.28			0.23			0.25			0.32
Net realized and unrealized gain (loss) from investment activities		0.31			0.18			0.73			(0.56	)		(1.06	)		0.24
Net increase from payment by Advisor		—			—			—			—			—			0.00³
Total income (loss) from investment operations		0.41			0.42			1.01			(0.33	)		(0.81	)		0.56
Redemption fees		0.00³			0.00³			0.00³			0.01			0.01			—
Less dividends/distributions:
From net investment income		(0.12	)		(0.41	)		(0.49	)		(0.64	)		(0.53	)		(0.37	)
Net asset value, end of period	$	8.99		$	8.70		$	8.69		$	8.17		$	9.13		$	10.46
Total investment return²		4.77	%		5.00	%		12.72	%		(3.29	)%		(8.03	)%		5.39	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.62	%⁴		1.45	%		1.39	%		1.27	%		1.02	%		1.07	%
Expenses after fee waivers and/or expense reimbursement		0.64	%⁴		0.64	%		0.64	%		0.85	%		0.85	%		0.85	%
Net investment income		2.31	%⁴		2.76	%		3.30	%		2.71	%		2.05	%		3.08	%
Supplemental data:
Net assets, end of period (000's)	$	8,385		$	5,996		$	8,956		$	9,128		$	9,330		$	29,356
Portfolio turnover rate		240	%		400	%		283	%		247	%		192	%		209	%
	Class B
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	8.71		$	8.70		$	8.18		$	9.14		$	10.47		$	10.28
Income (loss) from investment operations:
Net investment income¹		0.07			0.18			0.21			0.16			0.18			0.25
Net realized and unrealized gain (loss) from investment activities		0.31			0.18			0.74			(0.54	)		(1.07	)		0.23
Net increase from payment by Advisor		—			—			—			—			—			0.00³
Total income (loss) from investment operations		0.38			0.36			0.95			(0.38	)		(0.89	)		0.48
Redemption fees		—			—			—			0.00³			0.01			—
Less dividends/distributions:
From net investment income		(0.09	)		(0.35	)		(0.43	)		(0.58	)		(0.45	)		(0.29	)
Net asset value, end of period	$	9.00		$	8.71		$	8.70		$	8.18		$	9.14		$	10.47
Total investment return²		4.38	%		4.20	%		11.85	%		(4.01	)%		(8.72	)%		4.70	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.38	%⁴		2.28	%		2.22	%		2.10	%		1.91	%		1.84	%
Expenses after fee waivers and/or expense reimbursement		1.39	%⁴		1.39	%		1.39	%		1.60	%		1.60	%		1.60	%
Net investment income		1.59	%⁴		2.02	%		2.52	%		1.89	%		1.77	%		2.39	%
Supplemental data:
Net assets, end of period (000's)	$	49		$	55		$	56		$	109		$	250		$	442
Portfolio turnover rate		240	%		400	%		283	%		247	%		192	%		209	%

¹ Calculated using the average shares method.

² Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and 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 dividends/distributions or the redemption of Fund shares.

³ Amount represents less than $0.005 per share.

⁴ Annualized.

UBS Core Plus Bond Fund

Financial highlights

	Class C
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	8.68		$	8.66		$	8.15		$	9.12		$	10.45		$	10.26
Income (loss) from investment operations:
Net investment income¹		0.08			0.20			0.24			0.19			0.20			0.27
Net realized and unrealized gain (loss) from investment activities		0.30			0.19			0.72			(0.57	)		(1.05	)		0.24
Net increase from payment by Advisor		—			—			—			—			—			0.00³
Total income (loss) from investment operations		0.38			0.39			0.96			(0.38	)		(0.85	)		0.51
Redemption fees		0.00³			0.00³			0.00³			0.01			—			—
Less dividends/distributions:
From net investment income		(0.10	)		(0.37	)		(0.45	)		(0.60	)		(0.48	)		(0.32	)
Net asset value, end of period	$	8.96		$	8.68		$	8.66		$	8.15		$	9.12		$	10.45
Total investment return²		4.41	%		4.60	%		12.06	%		(3.76	)%		(8.58	)%		4.98	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.95	%⁴		1.92	%		1.86	%		1.76	%		1.58	%		1.55	%
Expenses after fee waivers and/or expense reimbursement		1.14	%⁴		1.14	%		1.14	%		1.35	%		1.35	%		1.35	%
Net investment income		1.84	%⁴		2.27	%		2.80	%		2.35	%		2.01	%		2.56	%
Supplemental data:
Net assets, end of period (000's)	$	2,251		$	2,175		$	2,628		$	2,574		$	1,117		$	1,525
Portfolio turnover rate		240	%		400	%		283	%		247	%		192	%		209	%
	Class Y
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	8.69		$	8.68		$	8.16		$	9.13		$	10.46		$	10.27
Income (loss) from investment operations:
Net investment income¹		0.12			0.26			0.30			0.24			0.28			0.34
Net realized and unrealized gain (loss) from investment activities		0.30			0.19			0.74			(0.55	)		(1.06	)		0.25
Net increase from payment by Advisor		—			—			—			—			—			0.00³
Total income (loss) from investment operations		0.42			0.45			1.04			(0.31	)		(0.78	)		0.59
Redemption fees		—			0.00³			0.00³			—			—			—
Less dividends/distributions:
From net investment income		(0.13	)		(0.44	)		(0.52	)		(0.66	)		(0.55	)		(0.40	)
Net asset value, end of period	$	8.98		$	8.69		$	8.68		$	8.16		$	9.13		$	10.46
Total investment return²		4.91	%		5.26	%		13.02	%		(3.15	)%		(7.78	)%		5.76	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.16	%⁴		1.12	%		1.09	%		0.96	%		0.78	%		0.76	%
Expenses after fee waivers and/or expense reimbursement		0.39	%⁴		0.39	%		0.39	%		0.60	%		0.60	%		0.60	%
Net investment income		2.59	%⁴		3.02	%		3.53	%		2.88	%		2.77	%		3.27	%
Supplemental data:
Net assets, end of period (000's)	$	33,412		$	31,047		$	34,659		$	55,149		$	102,473		$	163,172
Portfolio turnover rate		240	%		400	%		283	%		247	%		192	%		209	%

See accompanying notes to financial statements.
73

UBS Fixed Income Opportunities Fund

Financial highlights

The table below sets forth financial data for one share of beneficial interest outstanding throughout each period presented.

	Class A						Class C
	Six months ended December 31, 2011 (unaudited)			For the period ended June 30, 2011³			Six months ended December 31, 2011 (unaudited)			For the period ended June 30, 2011³
Net asset value, beginning of period	$	9.93		$	10.00		$	9.92		$	10.00
Income (loss) from investment operations:
Net investment income¹		0.18			0.21			0.16			0.18
Net realized and unrealized loss from investment activities		(0.21	)		(0.15	)		(0.21	)		(0.14	)
Total income (loss) from investment operations		(0.03	)		0.06			(0.05	)		0.04
Redemption fees		0.00⁴			0.02			—			0.00⁴
Less dividends/distributions:
From net investment income		(0.18	)		(0.05	)		(0.16	)		(0.02	)
From net realized gains		(0.25	)		—			(0.25	)		—
From return of capital		—			(0.10	)		—			(0.10	)
Total dividends/distributions		(0.43	)		(0.15	)		(0.41	)		(0.12	)
Net asset value, end of period	$	9.47		$	9.93		$	9.46		$	9.92
Total investment return²		(0.33	)%		0.76	%		(0.58	)%		0.43	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.43	%⁵		1.39	%⁵		1.96	%⁵		1.94	%⁵
Expenses after fee waivers and/or expense reimbursement		0.95	%⁵		0.95	%⁵		1.45	%⁵		1.45	%⁵
Net investment income		3.71	%⁵		3.53	%⁵		3.20	%⁵		3.06	%⁵
Supplemental data:
Net assets, end of period (000's)	$	51,156		$	67,314		$	7,120		$	8,116
Portfolio turnover rate		22	%		48	%		22	%		48	%

	Class Y
	Six months ended December 31, 2011 (unaudited)			For the period ended June 30, 2011³
Net asset value, beginning of period	$	9.94		$	10.00
Income (loss) from investment operations:
Net investment income¹		0.20			0.23
Net realized and unrealized loss from investment activities		(0.22	)		(0.13	)
Total income (loss) from investment operations		(0.02	)		0.10
Less dividends/distributions:
From net investment income		(0.19	)		(0.06	)
From net realized gains		(0.25	)		—
From return of capital		—			(0.10	)
Total dividends/distributions		(0.44	)		(0.16	)
Net asset value, end of period	$	9.48		$	9.94
Total investment return²		(0.19	)%		0.97	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.17	%⁵		1.29	%⁵
Expenses after fee waivers and/or expense reimbursement		0.70	%⁵		0.70	%⁵
Net investment income		3.95	%⁵		3.91	%⁵
Supplemental data:
Net assets, end of period (000's)	$	25,580		$	25,523
Portfolio turnover rate		22	%		48	%

¹ Calculated using the average shares method.

³ For the period November 29, 2010 (commencement of operations) through June 30, 2011.

⁴ Amount represents less than $0.005 per share.

⁵ Annualized.

See accompanying notes to financial statements.
74

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UBS Global Bond Fund

Financial highlights

The table below sets forth financial data for one share of beneficial interest outstanding throughout each period presented.

	Class A
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	7.41		$	7.33		$	7.12		$	9.17		$	9.41		$	9.50
Income (loss) from investment operations:
Net investment income¹		0.09			0.19			0.18			0.22			0.27			0.26
Net realized and unrealized gain (loss) from investment activities		(0.09	)		0.61			0.25			(0.92	)		(0.08	)		(0.10	)
Total income (loss) from investment operations		0.00			0.80			0.43			(0.70	)		0.19			0.16
Less dividends/distributions:
From net investment income		(0.44	)		(0.72	)		(0.22	)		(1.35	)		(0.43	)		(0.25	)
Net asset value, end of period	$	6.97		$	7.41		$	7.33		$	7.12		$	9.17		$	9.41
Total investment return²		(0.01	)%		11.55	%		5.94	%		(7.66	)%		1.94	%		1.67	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.58	%³		2.43	%		2.05	%		1.68	%		1.31	%		1.40	%
Expenses after fee waivers and/or expense reimbursement		1.15	%³		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Net investment income		2.47	%³		2.53	%		2.34	%		2.90	%		2.81	%		2.67	%
Supplemental data:
Net assets, end of period (000's)	$	5,775		$	6,768		$	7,240		$	7,930		$	12,123		$	14,093
Portfolio turnover rate		29	%		63	%		61	%		116	%		137	%		74	%
	Class B
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	7.43		$	7.35		$	7.14		$	9.20		$	9.43		$	9.52
Income (loss) from investment operations:
Net investment income¹		0.07			0.13			0.12			0.17			0.20			0.18
Net realized and unrealized gain (loss) from investment activities		(0.09	)		0.62			0.25			(0.93	)		(0.08	)		(0.09	)
Total income (loss) from investment operations		(0.02	)		0.75			0.37			(0.76	)		0.12			0.09
Less dividends/distributions:
From net investment income		(0.41	)		(0.67	)		(0.16	)		(1.30	)		(0.35	)		(0.18	)
Net asset value, end of period	$	7.00		$	7.43		$	7.35		$	7.14		$	9.20		$	9.43
Total investment return²		(0.37	)%		10.81	%		5.14	%		(8.45	)%		1.27	%		0.90	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		3.58	%³		3.20	%		2.85	%		2.55	%		2.20	%		2.17	%
Expenses after fee waivers and/or expense reimbursement		1.90	%³		1.90	%		1.90	%		1.90	%		1.90	%		1.90	%
Net investment income		1.75	%³		1.79	%		1.59	%		2.15	%		2.06	%		1.92	%
Supplemental data:
Net assets, end of period (000's)	$	44		$	45		$	146		$	122		$	131		$	215
Portfolio turnover rate		29	%		63	%		61	%		116	%		137	%		74	%

¹ Calculated using the average shares method.

³ Annualized.

UBS Global Bond Fund

Financial highlights

	Class C
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	7.38		$	7.31		$	7.09		$	9.15		$	9.38		$	9.47
Income (loss) from investment operations:
Net investment income¹		0.07			0.15			0.14			0.18			0.22			0.21
Net realized and unrealized gain (loss) from investment activities		(0.09	)		0.61			0.26			(0.92	)		(0.07	)		(0.10	)
Total income (loss) from investment operations		(0.02	)		0.76			0.40			(0.74	)		0.15			0.11
Less dividends/distributions:
From net investment income		(0.42	)		(0.69	)		(0.18	)		(1.32	)		(0.38	)		(0.20	)
Net asset value, end of period	$	6.94		$	7.38		$	7.31		$	7.09		$	9.15		$	9.38
Total investment return²		(0.26	)%		10.88	%		5.58	%		(8.27	)%		1.56	%		1.17	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		3.04	%³		2.89	%		2.52	%		2.17	%		1.79	%		1.77	%
Expenses after fee waivers and/or expense reimbursement		1.65	%³		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%
Net investment income		1.96	%³		2.01	%		1.84	%		2.37	%		2.31	%		2.17	%
Supplemental data:
Net assets, end of period (000's)	$	2,777		$	2,700		$	2,242		$	1,856		$	1,716		$	1,491
Portfolio turnover rate		29	%		63	%		61	%		116	%		137	%		74	%
	Class Y
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	8.57		$	8.37		$	8.10		$	10.24		$	10.45		$	10.51
Income (loss) from investment operations:
Net investment income¹		0.12			0.24			0.22			0.28			0.32			0.31
Net realized and unrealized gain (loss) from investment activities		(0.10	)		0.70			0.28			(1.05	)		(0.08	)		(0.10	)
Total income (loss) from investment operations		0.02			0.94			0.50			(0.77	)		0.24			0.21
Less dividends/distributions:
From net investment income		(0.45	)		(0.74	)		(0.23	)		(1.37	)		(0.45	)		(0.27	)
Net asset value, end of period	$	8.14		$	8.57		$	8.37		$	8.10		$	10.24		$	10.45
Total investment return²		0.10	%		11.77	%		6.33	%		(7.54	)%		2.28	%		2.03	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.32	%³		2.13	%		1.73	%		1.44	%		1.04	%		1.03	%
Expenses after fee waivers and/or expense reimbursement		0.90	%³		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Net investment income		2.72	%³		2.78	%		2.60	%		3.15	%		3.06	%		2.93	%
Supplemental data:
Net assets, end of period (000's)	$	5,702		$	6,250		$	8,379		$	24,437		$	52,620		$	107,465
Portfolio turnover rate		29	%		63	%		61	%		116	%		137	%		74	%

See accompanying notes to financial statements.
77

UBS High Yield Fund

Financial highlights

The table below sets forth financial data for one share of beneficial interest outstanding throughout each period presented.

	Class A
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	6.22		$	5.89		$	5.16		$	6.19		$	6.92		$	6.89
Income (loss) from investment operations:
Net investment income¹		0.22			0.48			0.57			0.50			0.51			0.50
Net realized and unrealized gain (loss) from investment activities		(0.33	)		0.34			0.71			(1.00	)		(0.75	)		0.08
Total income (loss) from investment operations		(0.11	)		0.82			1.28			(0.50	)		(0.24	)		0.58
Less dividends/distributions:
From net investment income		(0.22	)		(0.49	)		(0.55	)		(0.53	)		(0.49	)		(0.55	)
Net asset value, end of period	$	5.89		$	6.22		$	5.89		$	5.16		$	6.19		$	6.92
Total investment return²		(1.71	)%		14.30	%		25.49	%		(7.12	)%		(3.55	)%		8.60	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.33	%³		1.37	%		1.38	%		1.33	%		1.29	%		1.28	%
Expenses after fee waivers and/or expense reimbursement		1.20	%³		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%
Net investment income		7.34	%³		7.73	%		9.80	%		9.96	%		7.81	%		7.16	%
Supplemental data:
Net assets, end of period (000's)	$	38,633		$	40,987		$	36,334		$	39,859		$	40,582		$	45,031
Portfolio turnover rate		26	%		55	%		61	%		92	%		39	%		46	%
	Class B
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	6.22		$	5.90		$	5.16		$	6.20		$	6.93		$	6.89
Income (loss) from investment operations:
Net investment income¹		0.20			0.44			0.52			0.46			0.46			0.45
Net realized and unrealized gain (loss) from investment activities		(0.33	)		0.33			0.73			(1.01	)		(0.75	)		0.09
Total income (loss) from investment operations		(0.13	)		0.77			1.25			(0.55	)		(0.29	)		0.54
Less dividends/distributions:
From net investment income		(0.20	)		(0.45	)		(0.51	)		(0.49	)		(0.44	)		(0.50	)
Net asset value, end of period	$	5.89		$	6.22		$	5.90		$	5.16		$	6.20		$	6.93
Total investment return²		(2.09	)%		13.24	%		24.76	%		(7.98	)%		(4.27	)%		7.93	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.19	%³		2.17	%		2.20	%		2.15	%		2.07	%		2.04	%
Expenses after fee waivers and/or expense reimbursement		1.95	%³		1.95	%		1.95	%		1.95	%		1.95	%		1.95	%
Net investment income		6.59	%³		7.02	%		9.05	%		9.01	%		7.02	%		6.42	%
Supplemental data:
Net assets, end of period (000's)	$	450		$	598		$	921		$	900		$	1,480		$	2,386
Portfolio turnover rate		26	%		55	%		61	%		92	%		39	%		46	%

¹ Calculated using the average shares method.

³ Annualized.

UBS High Yield Fund

Financial highlights

	Class C
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	6.23		$	5.90		$	5.16		$	6.19		$	6.93		$	6.89
Income (loss) from investment operations:
Net investment income¹		0.20			0.45			0.54			0.48			0.48			0.47
Net realized and unrealized gain (loss) from investment activities		(0.33	)		0.34			0.72			(1.01	)		(0.76	)		0.08
Total income (loss) from investment operations		(0.13	)		0.79			1.26			(0.53	)		(0.28	)		0.55
Less dividends/distributions:
From net investment income		(0.20	)		(0.46	)		(0.52	)		(0.50	)		(0.46	)		(0.51	)
Net asset value, end of period	$	5.90		$	6.23		$	5.90		$	5.16		$	6.19		$	6.93
Total investment return²		(1.96	)%		13.72	%		25.07	%		(7.60	)%		(4.03	)%		8.05	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.85	%³		1.86	%		1.88	%		1.86	%		1.79	%		1.78	%
Expenses after fee waivers and/or expense reimbursement		1.70	%³		1.70	%		1.70	%		1.70	%		1.70	%		1.70	%
Net investment income		6.83	%³		7.24	%		9.27	%		9.41	%		7.31	%		6.66	%
Supplemental data:
Net assets, end of period (000's)	$	7,850		$	9,165		$	8,902		$	7,072		$	8,453		$	11,330
Portfolio turnover rate		26	%		55	%		61	%		92	%		39	%		46	%
	Class Y
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	6.27		$	5.94		$	5.20		$	6.23		$	6.96		$	6.92
Income (loss) from investment operations:
Net investment income¹		0.23			0.50			0.59			0.52			0.53			0.52
Net realized and unrealized gain (loss) from investment activities		(0.33	)		0.34			0.71			(1.01	)		(0.75	)		0.09
Total income (loss) from investment operations		(0.10	)		0.84			1.30			(0.49	)		(0.22	)		0.61
Less dividends/distributions:
From net investment income		(0.23	)		(0.51	)		(0.56	)		(0.54	)		(0.51	)		(0.57	)
Net asset value, end of period	$	5.94		$	6.27		$	5.94		$	5.20		$	6.23		$	6.96
Total investment return²		(1.58	)%		14.47	%		25.80	%		(6.83	)%		(3.28	)%		8.98	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.01	%³		1.03	%		1.05	%		1.06	%		0.99	%		0.98	%
Expenses after fee waivers and/or expense reimbursement		0.95	%³		0.95	%		0.95	%		0.95	%		0.95	%		0.95	%
Net investment income		7.58	%³		7.97	%		10.08	%		10.07	%		8.13	%		7.43	%
Supplemental data:
Net assets, end of period (000's)	$	35,211		$	44,750		$	37,152		$	61,421		$	99,538		$	47,768
Portfolio turnover rate		26	%		55	%		61	%		92	%		39	%		46	%

See accompanying notes to financial statements.
79

The UBS Funds

Notes to financial statements (unaudited)

1. Organization and significant accounting policies

The UBS Funds (the "Trust") is registered with the Securities and Exchange Commission ("SEC") 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 13, 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 14 Funds available for investment, each having its own investment objectives and policies. The following four funds are covered in this report: UBS Core Plus Bond Fund, UBS Fixed Income Opportunities Fund, UBS Global Bond Fund, and UBS High Yield Fund (each a "Fund", and collectively, the "Funds").

Each of the Funds is classified as a "diversified" investment company with the exception of UBS Global Bond Fund which is classified as "non-diversified" for purposes of the 1940 Act. The Fund currently offers Class A, Class C and Class Y shares. For each Fund except UBS Fixed Income Opportunities Fund, Class B shares are offered only to existing Class B shareholders with respect to the reinvestment of dividends and distributions and exchanges of Class B shares of the Funds for Class B shares of other series of the UBS Family of Funds. "UBS Family of Funds" include other UBS Funds, PACE Select Advisor Trust and other funds for which UBS Global Asset Management (US) Inc. ("UBS Global AM (US)") serves as principal underwriter. UBS Fixed Income Opportunities Fund does not offer Class B shares. 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 after issuance which varies depending upon the amount invested. Effective on or about March 1, 2012, all outstanding Class B shares will be converted to Class A shares of the same Fund. 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 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 Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") is the exclusive reference of authoritative US generally accepted accounting principles ("GAAP") recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The Funds' financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies:

The UBS Funds

Notes to financial statements (unaudited)

parameters such as security quality, maturity and coupon, and/or research and evaluations by its staff, including review of broker-dealer market price quotations, if available, in determining the valuation of the portfolio securities or instruments. Securities and other instruments also may be valued based on appraisals derived from information concerning the security or instrument or similar securities or instruments received from recognized dealers in those holdings. Securities and instruments 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 on the valuation date available prior to valuation. Securities and instruments which are listed on US and foreign stock exchanges normally are valued at the market closing price, the last sale price on the day the securities are valued or, lacking any sales on such day, at the last available bid price. In cases where securities or instruments are traded on more than one exchange, the securities or instruments are valued on the exchange designated as the primary market by UBS Global Asset Management (Americas) Inc. ("UBS Global AM" or the "Advisor"), the investment advisor 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 or instrument, that security or instrument 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 or instrument'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 or instruments; and the evaluation of forces which influence the market in which the securities or instruments are purchased and sold. Foreign currency exchange rates are generally determined as of the close of the New York Stock Exchange ("NYSE").

Certain securities or instruments 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 net asset value. 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 or instruments, the Fund may adjust the previous closing prices to reflect what the Board believes to be the fair value of these securities or instruments as of 4:00 p.m., Eastern time.

Certain Funds may use a systematic fair valuation model provided by an independent third party to value securities or instruments 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. The systematic fair valuation model may use calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADRs and futures contracts. If a security or instrument is valued at a "fair value," that value is likely to be different from the last quoted market price for the security or instrument. The use of the fair valuation model may result in securities being transferred between Level 1 and Level 2 of the fair valuation hierarchy at the end of the reporting period.

The amortized cost method of valuation, which approximates market value, generally is used to value short-term debt instruments with 60 days or less remaining to maturity, unless the Board determines that this does not represent fair value. Investments in open-end investment companies are valued at the daily closing net asset value of the respective investment company. Pursuant to the Funds' use of the practical expedient within ASC Topic 820, investments in non-registered investment companies are also valued at the daily net asset value. All investments quoted in foreign currencies will be valued daily in US dollars on the basis of the foreign currency exchange rates prevailing at the time such valuation is determined by the Funds' custodian.

Futures contracts are generally 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.

The UBS Funds

Notes to financial statements (unaudited)

Swaps are marked-to-market daily based upon values from third party vendors or quotations from market makers to the extent available and the change in value, if any, is recorded as an unrealized gain or loss on the Statement of assets and liabilities. In the event that market quotations are not readily available or deemed unreliable, the swap is valued at fair value as determined in good faith by or under the direction of the Board.

GAAP requires disclosure regarding the various inputs that are used in determining the value of the Funds' investments. These inputs are summarized into the three broad levels listed below:

Level 1—Unadjusted quoted prices in active markets for identical investments.

Level 2—Other significant observable inputs, including but not limited to, quoted prices for similar investments, interest rates, prepayment speeds and credit risk.

Level 3—Unobservable inputs inclusive of the Funds' own assumptions in determining the fair value of investments.

A fair value hierarchy has been included near the end of each Fund's Portfolio of investments.

In January 2010, FASB issued Accounting Standards Update No. 2010-06 "Improving Disclosures about Fair Value Measurements" ("ASU 2010-06"). ASU 2010-06 requires reporting entities to make new disclosures about amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3, including information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements. The new and revised disclosures have been implemented for annual and interim periods beginning after December 15, 2009. The disclosures surrounding purchases, sales, issuances and settlements on a gross basis in the reconciliation of Level 3 fair value measurements have been implemented for annual and interim periods beginning after December 15, 2010.

In April 2011, FASB issued Accounting Standards Update No. 2011-03 "Transfers and Servicing (Topic 860) Reconsideration of Effective Control for Repurchase Agreements" ("ASU 2011-03") which relates to the accounting for repurchase agreements and similar agreements, including mortgage dollar rolls, that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. ASU 2011-03 modifies the criteria for determining effective control of transferred assets and as a result certain agreements may now be accounted for as secured borrowings. ASU 2011-03 is effective prospectively for new transfers and existing transactions that are modified in the first interim or annual period beginning on or after December 15, 2011. Management is currently evaluating the implications of this change and its impact on the financial statements.

In May 2011, FASB issued Accounting Standards Update No. 2011-04 "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards ("IFRS")" ("ASU 2011-04"). ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to disclose the following information for fair value measurements categorized within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement, the valuation processes used by the reporting entity and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. At this time, management is evaluating the implications of ASU 2011-04 and its impact on the financial statements.

The UBS Funds

Notes to financial statements (unaudited)

In December 2011, FASB issued Accounting Standards Update No. 2011-11 "Disclosures about Offsetting Assets and Liabilities" ("ASU 2011-11"). These disclosure requirements are intended to help investors and other financial statement users to better assess the effect or potential effect of offsetting arrangements on a company's financial position. They also improve transparency in the reporting of how companies mitigate credit risk, including disclosure of related collateral pledged or received. In addition, ASU 2011-11 facilitates comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of IFRS. ASU 2011-11 requires entities to: disclose both gross and net information about both instruments and transactions eligible for offset in the financial statements; and disclose instruments and transactions subject to an agreement similar to a master netting agreement. ASU 2011-11 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. At this time, management is evaluating the implications of ASU 2011-11 and its impact on the Funds' financial statement disclosures.

The provisions of ASC Topic 815 "Derivatives and Hedging" ("ASC Topic 815") require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk related contingent features in derivative agreements. Since investment companies value their derivatives at fair value and recognize changes in fair value through the Statement of operations, they do not qualify for hedge accounting under ASC Topic 815. Accordingly, even though a fund's investments in derivatives may represent economic hedges, they are considered to be non-hedge transactions for purposes of disclosure under ASC Topic 815. ASC Topic 815 requires that (1) objectives for using derivative instruments be disclosed in terms of underlying risk and accounting designation, (2) the fair values of derivative instruments and their gains and losses be disclosed in a tabular format, and (3) information be disclosed about credit-risk contingent features of derivatives contracts. Details of this disclosure can be found below as well as in the Portfolio of investments. Certain derivative contracts entered into by the Funds may contain credit-risk related contingent features that could be triggered subject to certain circumstances. Such circumstances include agreed upon net asset value thresholds. If triggered, the derivative counterparty could request additional cash margin and/or terminate the derivative contract. The aggregate fair value of the derivative contracts that are in a net liability position that contain these triggers can be found in the Portfolio of investments. The aggregate fair value of assets that are already posted as collateral as of December 31, 2011 is reflected in the Statement of assets and liabilities. If the applicable credit-risk related contingent features were triggered as of December 31, 2011, the Fund would be required to post additional collateral or may be required to terminate the contract and settle any amounts outstanding. The volume of derivatives as disclosed in each Fund's Portfolio of investments is representative of the volume of derivatives outstanding during the period ended December 31, 2011. The Funds may be sellers of protection through credit default swap agreements which are by nature credit-risk contingent (the terms of these agreements can be found within the Portfolio of investments, with further discussion in the Notes to financial statements).

Disclosure of derivatives by underlying risk for each Fund as of and for the period ended December 31, 2011 is as follows:

Asset derivatives

	Interest rate risk		Credit risk		Foreign exchange risk		Total
UBS Core Plus Bond Fund
Forward contracts¹	$	—	$	—	$	72,699	$	72,699
Options purchased¹		66,055		—		—		66,055
Swap agreements¹		—		4,081		—		4,081
Total value	$	66,055	$	4,081	$	72,699	$	142,835

¹ Statement of assets and liabilities location: Options purchased are shown within investments in securities of unaffiliated issuers, at value, unrealized appreciation on forward foreign currency contracts and outstanding swap agreements, at value.

The UBS Funds

Notes to financial statements (unaudited)

Liability derivatives

	Interest rate risk			Credit risk			Foreign exchange risk			Total
UBS Core Plus Bond Fund
Forward contracts¹	$	—		$	—		$	(24,474	)	$	(24,474	)
Futures contracts²		(16,570	)		—			—			(16,570	)
Swap agreements¹		—			(6,067	)		—			(6,067	)
Total value	$	(16,570	)	$	(6,067	)	$	(24,474	)	$	(47,111	)

¹ Statement of assets and liabilities location: Unrealized depreciation on forward foreign currency contracts, and outstanding swap agreements, at value.

² Includes cumulative depreciation of futures contracts as reported in the futures contracts table in the Portfolio of investments, but only the unpaid variation margin is reported within the Statement of assets and liabilities within Due to broker.

Activities in derivative instruments during the period ended December 31, 2011, were as follows:

	Interest rate risk			Credit risk			Foreign exchange risk		Total
UBS Core Plus Bond Fund
Net realized gain (loss)¹
Forward contracts	$	—		$	—		$	15,883	$	15,883
Futures contracts		(83,325	)		—			—		(83,325	)
Swap agreements		(287,600	)		(381	)		—		(287,981	)
Total net realized gain (loss)	$	(370,925	)	$	(381	)	$	15,883	$	(355,423	)
Change in net unrealized appreciation/depreciation²
Forward contracts	$	—		$	—		$	48,225	$	48,225
Futures contracts		572			—			—		572
Options purchased³		2,205			—			—		2,205
Swap agreements		138,075			2,883			—		140,958
Total change in net unrealized appreciation/depreciation	$	140,852		$	2,883		$	48,225	$	191,960

¹ Statement of operations location: Net realized gain (loss) on futures contracts, swap agreements and forward foreign currency contracts.

² Statement of operations location: Change in net unrealized appreciation/depreciation on futures contracts, swap agreements and forward foreign currency contracts.

³ Unrealized gain (loss) is included in net change in unrealized appreciation/depreciation on investments.

Asset derivatives

	Interest rate risk		Credit risk		Foreign exchange risk		Total
UBS Fixed Income Opportunities Fund
Forward contracts¹	$	—	$	—	$	659,753	$	659,753
Futures contracts²		373,211		—		—		373,211
Options purchased¹		2,583,133		773,829		—		3,356,962
Swap agreements¹		4,395,378		3,517,303		299,017		8,211,698
Total value	$	7,351,722	$	4,291,132	$	958,770	$	12,601,624

² Includes cumulative appreciation of futures contracts as reported in the futures contracts table in the Portfolio of investments, but only the unpaid variation margin is reported within the Statement of assets and liabilities within Due from broker.

The UBS Funds

Notes to financial statements (unaudited)

Liability derivatives

	Interest rate risk			Credit risk			Foreign exchange risk			Total
UBS Fixed Income Opportunities Fund
Forward contracts¹	$	—		$	—		$	(133,620	)	$	(133,620	)
Futures contracts²		(275,722	)		—			—			(275,722	)
Options written¹		(1,962,681	)		(544,702	)		—			(2,507,383	)
Swap agreements¹		(12,334,311	)		(2,475,296	)		(176,322	)		(14,985,929	)
Total value	$	(14,572,714	)	$	(3,019,998	)	$	(309,942	)	$	(17,902,654	)

¹ Statement of assets and liabilities location: Unrealized depreciation on forward foreign currency contracts, outstanding swap agreements, at value and options written, at value.

Activities in derivative instruments during the period ended December 31, 2011, were as follows:

	Interest rate risk			Credit risk			Foreign exchange risk		Total
UBS Fixed Income Opportunities Fund
Net realized gain (loss)¹
Forward contracts	$	—		$	—		$	724,498	$	724,498
Futures contracts		4,648,079			—			—		4,648,079
Options purchased³		(4,290,558	)		(1,055,000	)		—		(5,345,558	)
Options written		55,639			2,424,525			—		2,480,164
Swap agreements		73,653			781,489			17,454		872,596
Total net realized gain (loss)	$	486,813		$	2,151,014		$	741,952	$	3,379,779
Change in net unrealized appreciation/depreciation²
Forward contracts	$	—		$	—		$	1,200,265	$	1,200,265
Futures contracts		165,217			—			—		165,217
Options purchased³		1,084,274			(136,971	)		—		947,303
Options written		(113,304	)		172,497			—		59,193
Swap agreements		(6,417,280	)		1,124,233			33,994		(5,259,053	)
Total change in net unrealized appreciation/depreciation	$	(5,281,093	)	$	1,159,759		$	1,234,259	$	(2,887,075	)

¹ Statement of operations location: Net realized gain (loss) on futures contracts, options written, swap agreements and forward foreign currency contracts.

² Statement of operations location: Change in net unrealized appreciation/depreciation on futures contracts, options written, swap agreements and forward foreign currency contracts.

³ Realized and unrealized gain (loss) is included in net realized gain (loss) on investments and net change in unrealized appreciation/depreciation on investments.

The UBS Funds

Notes to financial statements (unaudited)

Asset derivatives

	Interest rate risk		Credit risk		Foreign exchange risk		Total
UBS Global Bond Fund
Forward contracts¹	$	—	$	—	$	37,844	$	37,844
Futures contracts²		5,891		—		—		5,891
Swap agreements¹		—		46,325		—		46,325
Total value	$	5,891	$	46,325	$	37,844	$	90,060

¹ Statement of assets and liabilities location: Unrealized appreciation on forward foreign currency contracts and outstanding swap agreements, at value.

Liability derivatives

	Interest rate risk			Credit risk			Foreign exchange risk			Total
UBS Global Bond Fund
Forward contracts¹	$	—		$	—		$	(27,402	)	$	(27,402	)
Futures contracts²		(10,472	)		—			—			(10,472	)
Swap agreements¹		—			(31,521	)		—			(31,521	)
Total value	$	(10,472	)	$	(31,521	)	$	(27,402	)	$	(69,395	)

¹ Statement of assets and liabilities location: Unrealized depreciation on forward foreign currency contracts and outstanding swap agreements, at value

Activities in derivative instruments during the period ended December 31, 2011, were as follows:

	Interest rate risk			Credit risk			Foreign exchange risk			Total
UBS Global Bond Fund
Net realized gain (loss)¹
Forward contracts	$	—		$	—		$	28,317		$	28,317
Futures contracts		37,562			—			—			37,562
Swap agreements		(44,236	)		11,163			—			(33,073	)
Total net realized gain (loss)	$	(6,674	)	$	11,163		$	28,317		$	32,806
Change in net unrealized appreciation/depreciation²
Forward contracts	$	—		$	—		$	(12,197	)	$	(12,197	)
Futures contracts		(7,198	)		—			—			(7,198	)
Swap agreements		16,307			(12,312	)		—			3,995
Total change in net unrealized appreciation/depreciation	$	9,109		$	(12,312	)	$	(12,197	)	$	(15,400	)

¹ Statement of operations location: Net realized gain (loss) on futures contracts, swap agreements and forward foreign currency contracts.

² Statement of operations location: Change in net unrealized appreciation/depreciation on futures contracts, swap agreements and forward foreign currency contracts.

The UBS Funds

Notes to financial statements (unaudited)

sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included in each Fund's Notes to portfolio of investments.

C. Investment transactions, investment income and expenses: Investment transactions are recorded on the trade date. Realized gains and losses from investment and foreign exchange transactions are calculated using the identified cost method. Dividend income and expenses are 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.

D. Foreign currency translation: The Funds use the foreign currency exchange rates determined as of the close of regular trading on the NYSE. For purposes of calculating the US dollar equivalent value of a non US dollar denominated obligation, foreign currency amounts are translated into US dollars on the following basis: (1) market value of investment securities and other assets and liabilities—at the exchange rates prevailing at the end of each Fund's fiscal period; and (2) purchases and sales of investment securities and income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.

Although the net assets and the market value of each Fund's portfolio are presented at the foreign exchange rates at the end of each Fund's fiscal period, the Funds do not generally isolate the effect of fluctuations in foreign exchange rates from the effect of the changes in market prices of securities. However, the Funds do isolate the effect of fluctuations in foreign exchange rates when determining the gain or loss upon the sale or maturity of foreign currency-denominated securities pursuant to US federal income tax regulations. 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.

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, manage currency risk or to gain exposure to a currency without purchasing securities denominated in that currency. Forward foreign currency contracts involve, to varying degrees, elements of market risk (specifically foreign currency risk).

A Fund will 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 non-cash settled 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 equal to the contract's full notional value. However, currency contracts with respect to identical currencies may be netted against each other and, in such cases, a Fund's custodian or sub-custodian will place assets in a segregated account of the Fund, in an amount equal to the net amount owed (the unrealized loss) by a Fund. 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 UBS Funds

Notes to financial statements (unaudited)

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 unrealized gains or losses on foreign forward currency contracts by the Funds. Realized gains and losses include net gains and losses recognized by each Fund on contracts which have been sold or matured.

F. Futures contracts: Each Fund may purchase or sell financial futures contracts. The Funds may purchase or sell futures contracts to increase or reduce their exposure to an asset class without purchasing or selling the underlying securities, either as a hedge or to enhance the Fund's overall total return, income or gains. Using financial futures contracts involves various market risks, including interest rate and equity risk. 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. To the extent that market prices move in an unexpected direction, there is a risk that a Fund will not achieve the anticipated benefits of the futures contract or may realize a loss.

Upon entering into a futures contract, the Fund is required to deliver to a broker an amount of cash and/or 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 as part of Due to or Due from broker 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.

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 the Funds' records 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: Certain Funds may engage in swap agreements, including but not limited to interest rate, currency, total return, and credit default swap agreements. The Funds expect to enter into these transactions to preserve a return or spread on a particular investment or to hedge a portion of the portfolio's duration, to protect against any increase in the price of securities a Fund anticipates purchasing at a later date, to gain exposure to certain markets in the most economical way possible or in an attempt to enhance income or gains.

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 itself 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. Interest rate swap agreements are subject to general market risk, liquidity risk, counterparty risk and interest rate risk.

Certain Funds may enter into currency swap agreements with another party to receive or pay amounts based on changes in currency exchange rates in order to protect itself from or take advantage of exchange rate fluctuations. The Fund utilizes currency swaps to earn income and enhance returns as well as to manage the risk profile of the Fund. 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 currency exchange rate(s) for a specified amount.

The UBS Funds

Notes to financial statements (unaudited)

Currency swap agreements are subject to general market risk, liquidity risk, counterparty risk, foreign exchange risk and interest rate risk.

Credit default swap agreements involve commitments to make or receive payments in the event of a default or other credit event of a referenced security. As a buyer, a Fund would make periodic payments to the counterparty, and a Fund would receive payments only upon the occurrence of a credit event. If no credit event occurs, a Fund will lose its periodic stream of payments over the term of the contract. However, if a credit event does occur, a Fund typically would receive full notional value for a reference obligation that may have little or no value. As a seller, a Fund would receive periodic payments from the counterparty, and a Fund would make payments only upon the occurrence of a credit event. If no credit event occurs, a Fund will gain the periodic stream of payments it received over the term of the contract. However, if a credit event occurs, a Fund will pay full notional value for a reference obligation that may have little or no value. Credit default swaps may involve greater risks than if a Fund had invested in the reference obligation directly and are subject to general market risk, liquidity risk, counterparty risk and credit risk.

Credit default swap agreements on corporate issues or sovereign issues of an emerging market country involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default or other credit event. If a credit event occurs and cash settlement is not elected, a variety of other obligations may be delivered in lieu of the specific referenced obligation. The ability to deliver other obligations may result in delivery of a security with a value other than had been anticipated (such as a party's right to choose the deliverable obligation with the lowest value following a credit event). A Fund may use credit default swaps on corporate issues or sovereign issues of an emerging market country to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where a Fund owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer's default.

The maximum potential amount of future payments (undiscounted) that a Fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of December 31, 2011 for which a Fund is the seller of protection are disclosed under the section "Credit default swaps on credit indices—sell protection" and "Credit default swaps on corporate and sovereign issues—sell protection" in the Notes to Portfolio of investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into, if any, by a Fund for the same referenced entity or entities.

The use of swap agreements 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 a Fund will be less favorable than it would have been if this investment technique was never used. Swap agreements do not involve the delivery of securities and are subject to counterparty risk. If the other party to a swap agreement defaults and fails to consummate the transaction, a Fund's risk of loss will consist of the net amount of interest or other payments that the Fund is contractually entitled to receive. Therefore, a Fund would consider the creditworthiness of the counterparty to a swap agreement in evaluating potential credit risk.

A Fund accrues for interim payments on swap agreements on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swap agreements on the Statement 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 Statement of operations. Fluctuations

The UBS Funds

Notes to financial statements (unaudited)

in the value of swap agreements are recorded for financial statement purposes as unrealized appreciation or depreciation of swap agreements.

I. Option writing: Certain Funds may write (sell) put and call options on foreign or US securities, indices, foreign currencies and interest rate swaps (commonly referred to as swaptions), in order to gain exposure to or protect against changes in the markets or in an attempt to enhance income or gains. 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 security 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 a 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 Fund bears the market risk of an unfavorable change in the price of the derivative instrument, security, index or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a derivative instrument, security or currency at a price different from current market value.

J. Purchased options: Certain Funds may purchase put and call options on foreign or US securities, indices, foreign currencies and interest rate swaps (commonly referred to as swaptions), as well as exchange listed call options on particular market segment indices to achieve temporary exposure to a specific security, currency, 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 added 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: Occasionally, UBS High Yield Fund may enter 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 a Fund shorts a security while 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. A Fund will realize a gain or loss upon closing of the short sale (returning the security to the counterparty by way of purchase or delivery of a long position owned). The Fund is liable to the lender for any dividends or interest payable on securities while those securities are in a short position. These dividends or interest are booked as an expense or liability of the Fund. The Fund segregates collateral consisting of cash, US government securities or other liquid assets sufficient to collateralize the market value of short positions. The Fund is charged a securities loan fee in connection with short sale transactions.

For the period ended December 31, 2011, there were no short positions held by UBS High Yield Fund.

The UBS Funds

Notes to financial statements (unaudited)

L. Dividends and distributions: It is the Funds' policy to distribute their respective net investment income monthly except UBS Fixed Income Opportunities Fund which will distribute its net investment income, if any, quarterly. Net realized capital gains, if any, are paid annually. Dividends and distributions to shareholders are recorded on the ex-distribution date. The amount of dividends from net investment income and distributions from net realized capital gains and/or return of capital is determined in accordance with US federal income tax regulations, which may differ from GAAP. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification.

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 the Funds invest. The ability of the issuers of debt securities held by a Fund to meet their obligations may be affected by economic and political developments particular to a specific industry, country, state or region.

N. Redemption fees: 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. This amount is paid to the applicable Fund, not the Advisor or UBS Global AM (US). The redemption fees retained by the Funds are disclosed in the Statement of changes in net assets.

2. Investment advisory fees and other transactions with affiliates

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 $1.0 billion			$1.0 billion to $1.5 billion			$1.5 billion to $2.0 billion			$2.0 billion and over
UBS Core Plus Bond Fund		0.500	%		0.475	%		0.450	%		0.425	%		0.400	%
UBS Fixed Income Opportunities Fund		0.650			0.650			0.650			0.650			0.650
UBS Global Bond Fund		0.650			0.650			0.650			0.600			0.550
UBS High Yield Fund		0.600			0.550			0.525			0.525			0.525

For UBS Core Plus Bond Fund, UBS Fixed Income Opportunities Fund and UBS Global Bond Fund, the Advisor has agreed to waive its fees and/or reimburse expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) to the extent necessary so that the Fund's operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) do not exceed the expense limit of each Fund as indicated in the following table. For UBS High Yield Fund, the Advisor has agreed to waive its fees and/or reimburse expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and securities loan fees for securities sold short) to the extent necessary so that the Fund's operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and security loan fees for securities sold short) do not exceed the expense limit of the Fund as

The UBS Funds

Notes to financial statements (unaudited)

indicated in the following table. Investment advisory fees, including the dollar amount waived or reimbursed, for the period ended December 31, 2011, 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 Core Plus Bond Fund		0.64	%		1.39	%		1.14	%		0.39	%	$	106,187	$	171,076
UBS Fixed Income Opportunities Fund		0.95			N/A*			1.45			0.70			301,046		221,321
UBS Global Bond Fund		1.15			1.90			1.65			0.90			50,229		109,119
UBS High Yield Fund		1.20			1.95			1.70			0.95			259,816		44,100

* UBS Fixed Income Opportunities Fund does not offer Class B shares.

Each Fund will reimburse the Advisor for expenses it reimburses for a period of three years following such expense reimbursements, provided that the reimbursement by a Fund of the Advisor will not cause the total operating expense ratio to exceed the contractual limit as then may be in effect for the Fund. The expenses waived for the period ended December 31, 2011 are subject to repayment through June 30, 2015. At December 31, 2011, 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, 2012		Expires June 30, 2013		Expires June 30, 2014		Expires June 30, 2015
UBS Core Plus Bond Fund—Class A	$	212,291	$	34,710	$	68,455	$	70,796	$	38,330
UBS Core Plus Bond Fund—Class B		2,130		738		728		419		245
UBS Core Plus Bond Fund—Class C		52,769		6,551		18,828		18,459		8,931
UBS Core Plus Bond Fund—Class Y		943,898		275,353		301,741		243,234		123,570
UBS Fixed Income Opportunities Fund—Class A		241,773		—		—		99,909		141,864
UBS Fixed Income Opportunities Fund—Class C		34,594		—		—		15,057		19,537
UBS Fixed Income Opportunities Fund—Class Y		149,464		—		—		89,544		59,920
UBS Global Bond Fund—Class A		258,195		50,263		73,286		89,130		45,516
UBS Global Bond Fund—Class B		3,902		761		1,350		1,388		403
UBS Global Bond Fund—Class C		76,411		8,446		18,996		30,060		18,909
UBS Global Bond Fund—Class Y		484,366		217,046		131,754		91,275		44,291
UBS High Yield Fund—Class A		199,034		46,068		63,865		63,735		25,366
UBS High Yield Fund—Class B		6,666		2,019		2,384		1,628		635
UBS High Yield Fund—Class C		46,463		10,727		14,851		15,019		5,866
UBS High Yield Fund—Class Y		166,135		75,272		44,862		33,768		12,233

Each Fund pays UBS Global AM a monthly administration fee that is accrued daily and paid monthly at an annual rate of 0.075% of the average daily net assets of such Fund. For the period ended December 31, 2011, the Funds owed and incurred administrative fees as follows:

Fund	Administrative fees owed		Administrative fees incurred
UBS Core Plus Bond Fund	$	2,787	$	15,916
UBS Fixed Income Opportunities Fund		5,476		34,695
UBS Global Bond Fund		923		5,788
UBS High Yield Fund		5,245		32,425

The UBS Funds

Notes to financial statements (unaudited)

The Funds may invest in certain affiliated investment companies also advised or managed by the Advisor. Investments in affiliated investment companies for the period ended December 31, 2011 have been included near the end of each Fund's Portfolio of investments.

The Funds may invest in UBS 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 Statement of operations. Amounts relating to those investments at December 31, 2011 and for the period then ended have been included near the end of each Fund's Portfolio of investments.

Under normal conditions, the Funds invest cash collateral from securities lending activities into an affiliated private money market fund, UBS Private Money Market Fund LLC ("Private Money Market"), which operates in compliance with most of the substantive provisions of Rule 2a-7 of the 1940 Act. Private Money Market 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. UBS Global AM acts as managing member and receives a management fee from Private Money Market payable monthly in arrears at the annual rate of 0.10% of Private Money Market's average daily members' equity, minus the aggregate operating expenses of, and incurred by, Private Money Market during each such related month, not including investment expenses (including brokerage commissions, taxes, interest charges and other costs with respect to transactions in securities) and extraordinary expenses including litigation expenses, if any. The Advisor may, in its sole discretion, waive all or any portion of the management fee to which it may be entitled from time to time in order to maintain operating expenses at a certain level. Distributions received from Private Money Market, net of fee rebates paid to borrowers, are reflected as securities lending income in the Statement of operations. Amounts relating to those investments at December 31, 2011 and for the period then ended have been included near the end of each Fund's Portfolio of investments.

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 1940 Act 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 Core Plus Bond Fund		0.25	%		1.00	%		0.75	%
UBS Fixed Income Opportunities Fund		0.25			N/A*			0.75
UBS Global Bond Fund		0.25			1.00			0.75
UBS High Yield Fund		0.25			1.00			0.75

* UBS Fixed Income Opportunities Fund does not offer Class B shares.

UBS Global AM (US) also receives the proceeds of the initial sales charges paid upon purchases of Class A shares and the contingent deferred sales charges paid by shareholders upon certain redemptions of Class A, Class B, and Class C. At December 31, 2011, certain Funds owed UBS Global AM (US) service and distribution fees, and for the

The UBS Funds

Notes to financial statements (unaudited)

period ended December 31, 2011, 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 Core Plus Bond Fund—Class A	$	1,769	$	691
UBS Core Plus Bond Fund—Class B		35		—
UBS Core Plus Bond Fund—Class C		1,407		125
UBS Fixed Income Opportunities Fund—Class A		11,342		7,822
UBS Fixed Income Opportunities Fund—Class C		4,680		4,790
UBS Global Bond Fund—Class A		1,256		663
UBS Global Bond Fund—Class B		36		—
UBS Global Bond Fund—Class C		1,733		12
UBS High Yield Fund—Class A		8,177		5,018
UBS High Yield Fund—Class B		382		172
UBS High Yield Fund—Class C		4,928		729

4. Transfer agency and related services fees

UBS Financial Services Inc. provides certain services pursuant to a delegation of authority from BNY Mellon Investment Servicing ("BNY Mellon"), as each Fund's transfer agent, and is compensated for these services by BNY Mellon, not the Funds.

For the period ended December 31, 2011, UBS Financial Services Inc. received from BNY Mellon, not the Funds, total service fees as follows:

Fund	Amount paid
UBS Core Plus Bond Fund	$	1,225
UBS Fixed Income Opportunities Fund		5,529
UBS Global Bond Fund		2,009
UBS High Yield Fund		9,424

5. Securities lending

Each Fund may lend securities up to 33¹/₃% of its total assets to qualified broker-dealers or institutional investors. The loans are secured at all times by cash, cash equivalents or US government securities in an amount at least equal to 102% of the market value of the securities loaned with respect to domestic securities and 105% of the market value of the securities loaned with respect to foreign securities, 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, the Fund may bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower fail financially. The Fund receives compensation for lending its securities from interest or dividends earned on the cash, cash equivalents or US government securities held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees.

UBS Core Plus Bond Fund loaned securities to certain qualified broker-dealers, with the Funds' custodian acting as the Funds' lending agent. Cash collateral received is invested in Private Money Market, which is included in the Fund's Portfolio of investments. In addition, UBS Core Plus Bond Fund received US Government Agency securities

The UBS Funds

Notes to financial statements (unaudited)

as collateral amounting to $294,335. The market value of loaned securities and related collateral outstanding at December 31, 2011, were as follows:

Fund				Market value of securities loaned				Market value of collateral received from securities loaned				Market value of investments of cash collateral received
UBS Core Plus Bond Fund				$	343,964			$	350,710			$	56,375

6. Purchases and sales of securities

For the period ended December 31, 2011, aggregate purchases and sales of portfolio securities, excluding short-term investments and US Government and agency securities, were as follows:

Fund	Purchases		Sales proceeds
UBS Core Plus Bond Fund	$	45,322,317	$	45,702,669
UBS Fixed Income Opportunities Fund		18,941,269		32,016,096
UBS Global Bond Fund		3,273,304		4,534,758
UBS High Yield Fund		20,092,805		26,157,327

For the period ended December 31, 2011, aggregate purchases and sales of US Government and agency securities, excluding short-term investments, were as follows:

Fund	Purchases		Sales proceeds
UBS Core Plus Bond Fund	$	54,435,571	$	50,993,867
UBS Fixed Income Opportunities Fund		892,348		1,079,850
UBS Global Bond Fund		880,857		920,323
UBS High Yield Fund		1,678,402		1,690,441

7. Federal income taxes

It is each Fund's policy to comply with all requirements of the Internal Revenue 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.

The tax character of distributions paid during the fiscal year ended June 30, 2011 were as follows:

	2011
Fund	Distributions paid from ordinary income		Return of capital		Total distributions paid
UBS Core Plus Bond Fund	$	2,203,065	$	—	$	2,203,065
UBS Fixed Income Opportunities Fund¹		556,692		664,474		1,221,166
UBS Global Bond Fund		1,499,695		—		1,499,695
UBS High Yield Fund		7,071,860		—		7,071,860

¹ UBS Fixed Income Opportunities Fund commenced operations on November 29, 2010.

The UBS Funds

Notes to financial statements (unaudited)

The tax character of distributions paid and components of accumulated earnings/(deficit) on a tax basis for the current fiscal year will be determined after the Trust's fiscal year ending June 30, 2012.

At June 30, 2011, the following Funds had net capital loss carryforwards for federal income tax purposes available to offset future capital gains through the indicated expiration dates:

Fund	June 30, 2012		June 30, 2013		June 30, 2014		June 30, 2015		June 30, 2016		June 30, 2017		June 30, 2018		June 30, 2019
UBS Core Plus Bond Fund	$	—	$	—	$	—	$	1,013,774	$	—	$	3,069,977	$	32,070,048	$	—
UBS Fixed Income Opportunities Fund		—		—		—		—		—		—		—		1,787,007
UBS Global Bond Fund		—		—		—		262,929		577,591		3,369,482		12,176,817		—
UBS High Yield Fund		15,791,570		11,067,780		22,213,870		5,885,761		1,000,707		4,782,241		25,725,339		—

UBS High Yield Fund had capital loss carryforwards in the amount of $33,835,770 that expired as of June 30, 2011.

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, 2011, the following Funds incurred, and elected to defer, losses of the following:

Fund				Net currency losses
UBS High Yield Fund				$	93

As of and during the period ended December 31, 2011, the Funds did not have any liabilities for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of operations. During the period, the Funds did not incur any interest or penalties.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the "Act") was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. One of the more prominent changes addresses capital loss carryforwards. Under the Act, each Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an indefinite period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.

Each of the tax years in the four year period ended June 30, 2011, or since inception in the case of UBS Fixed Income Opportunities Fund, remains subject to examination by the Internal Revenue Service and state taxing authorities.

8. Line of credit

The UBS Funds

Notes to financial statements (unaudited)

prevailing rates in effect at the time of borrowing. 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. There were no borrowings from the Committed Credit Facility during the period ended December 31, 2011.

9. Shares of beneficial interest

For the period ended December 31, 2011, transactions in shares of beneficial interest for each of the Funds were as follows:

UBS Core Plus Bond Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		368,764		$	3,276,345			2,318		$	20,747
Shares repurchased		(135,231	)		(1,202,689	)		(6	)		(54	)
Shares converted from Class B to Class A		3,286			29,442			(3,282	)		(29,442	)
Dividends reinvested		6,805			60,461			49			437
Redemption fees		—			227			—			—
Net increase (decrease)		243,624		$	2,163,786			(921	)	$	(8,312	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		22,730		$	201,917			303,996		$	2,709,219
Shares repurchased		(24,874	)		(220,126	)		(209,011	)		(1,856,056	)
Dividends reinvested		2,599			23,021			54,363			482,625
Redemption fees		—			174			—			929
Net increase		455		$	4,986			149,348		$	1,336,717

UBS Fixed Income Opportunities Fund

	Class A						Class C						Class Y
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		433,312		$	4,285,271			28,902		$	282,172			9,126		$	90,916
Shares repurchased		(1,945,068	)		(19,059,436	)		(120,450	)		(1,171,474	)		(258	)		(2,527	)
Dividends reinvested		129,862			1,238,919			25,422			241,989			119,737			1,143,422
Redemption fees		—			104			—			—			—			19
Net increase (decrease)		(1,381,894	)	$	(13,535,142	)		(66,126	)	$	(647,313	)		128,605		$	1,231,830

UBS Global Bond Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		16,120		$	118,114			2,906		$	21,431
Shares repurchased		(143,271	)		(1,060,728	)		—			—
Shares converted from Class B to Class A		3,090			22,895			(3,077	)		(22,895	)
Dividends reinvested		38,789			272,198			349			2,456
Redemption fees		—			26			—			—
Net increase (decrease)		(85,272	)	$	(647,495	)		178		$	992

The UBS Funds

Notes to financial statements (unaudited)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		41,374		$	298,138			69,003		$	593,045
Shares repurchased		(27,175	)		(197,932	)		(131,977	)		(1,133,276	)
Dividends reinvested		19,908			138,659			34,579			283,121
Redemption fees		—			—			—			134
Net increase (decrease)		34,107		$	238,865			(28,395	)	$	(256,976	)

UBS High Yield Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		196,733		$	1,186,613			—		$	—
Shares repurchased		(363,195	)		(2,147,910	)		(2,722	)		(15,923	)
Shares converted from Class B to Class A		17,998			104,038			(17,993	)		(104,038	)
Dividends reinvested		118,102			693,480			1,039			6,109
Redemption fees		—			67			—			—
Net decrease		(30,362	)	$	(163,712	)		(19,676	)	$	(113,852	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		90,891		$	530,154			356,934		$	2,114,305
Shares repurchased		(257,460	)		(1,556,808	)		(1,803,998	)		(10,811,745	)
Dividends reinvested		25,891			152,291			238,560			1,414,249
Redemption fees		—			80			—			481
Net decrease		(140,678	)	$	(874,283	)		(1,208,504	)	$	(7,282,710	)

For the year ended June 30, 2011, transactions in shares of beneficial interest for each of the Funds were as follows:

UBS Core Plus Bond Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		309,990		$	2,712,353			3,048		$	26,309
Shares repurchased		(697,246	)		(6,048,838	)		(616	)		(5,439	)
Shares converted from Class B to Class A		2,710			23,647			(2,707	)		(23,647	)
Dividends reinvested		42,676			369,281			175			1,518
Redemption fees		—			1,982			—			—
Net decrease		(341,870	)	$	(2,941,575	)		(100	)	$	(1,259	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		15,999		$	137,474			314,144		$	2,735,839
Shares repurchased		(79,141	)		(688,107	)		(926,110	)		(8,068,228	)
Dividends reinvested		10,456			90,180			189,546			1,639,990
Redemption fees		—			315			—			3,377
Net decrease		(52,686	)	$	(460,138	)		(422,420	)	$	(3,689,022	)

The UBS Funds

Notes to financial statements (unaudited)

UBS Fixed Income Opportunities Fund

	Class A						Class C						Class Y
	Shares			Amount			Shares			Amount			Shares		Amount
Shares sold		8,001,031		$	82,263,982			830,015		$	8,517,271			2,528,626	$	25,310,167
Shares repurchased		(1,263,856	)		(12,764,240	)		(17,869	)		(180,982	)		—		—
Dividends reinvested		44,434			445,259			6,406			64,167			39,934		401,685
Redemption fees		—			87,471			—			586			—		—
Net increase		6,781,609		$	70,032,472			818,552		$	8,401,042			2,568,560	$	25,711,852

UBS Global Bond Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		42,530		$	316,402			—		$	—
Shares repurchased		(207,548	)		(1,557,130	)		(3,112	)		(22,784	)
Shares converted from Class B to Class A		11,930			89,985			(11,892	)		(89,985	)
Dividends reinvested		79,262			565,787			1,231			8,796
Redemption fees		—			35			—			—
Net decrease		(73,826	)	$	(584,921	)		(13,773	)	$	(103,973	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		102,740		$	744,499			94,578		$	816,826
Shares repurchased		(68,774	)		(497,604	)		(436,167	)		(3,755,680	)
Dividends reinvested		25,051			177,950			69,958			577,658
Redemption fees		—			12			—			533
Net increase (decrease)		59,017		$	424,857			(271,631	)	$	(2,360,663	)

UBS High Yield Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		1,280,817		$	8,106,143			—		$	—
Shares repurchased		(1,151,730	)		(7,189,565	)		(49,329	)		(305,228	)
Shares converted from Class B to Class A		14,288			89,305			(14,280	)		(89,305	)
Dividends reinvested		280,657			1,738,044			3,434			21,203
Redemption fees		—			1,633			—			—
Net increase (decrease)		424,032		$	2,745,560			(60,175	)	$	(373,330	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		133,030		$	829,023			1,748,491		$	10,996,030
Shares repurchased		(231,863	)		(1,451,699	)		(1,391,821	)		(8,722,807	)
Dividends reinvested		61,456			381,252			521,701			3,262,755
Redemption fees		—			244			—			156
Net increase (decrease)		(37,377	)	$	(241,180	)		878,371		$	5,536,134

The UBS Funds

General information (unaudited)

Quarterly Form N-Q portfolio schedule

The Funds will file their 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, procedures and 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 UBS's Web site: www.ubs.com/ubsglobalam-proxy, or on the EDGAR Database on the SEC's Web site (http://www.sec.gov).

100

PRESORTED
STANDARD
U.S. POSTAGE
PAID
COMPUTERSHARE

UBS Global Asset Management (Americas) Inc.

1285 Avenue of the Americas

New York, NY 10019

S1173

UBS Equity
Funds

December 31, 2011

The UBS Funds—Equities

Semiannual Report

Table of contents

President's letter					1

Market commentary					2

Equities

UBS Global Equity Fund					3

UBS International Equity Fund					11

UBS Market Neutral Multi-Strategy Fund					21

UBS U.S. Equity Alpha Fund					38

UBS U.S. Equity Opportunity Fund (formerly, UBS U.S. Large Cap Value Equity Fund)					49

UBS U.S. Large Cap Equity Fund					56

UBS U.S. Small Cap Growth Fund					64

Explanation of expense disclosure					72

Statement of assets and liabilities					76

Statement of operations					80

Statement of changes in net assets					82

Statement of cash flows					86

Financial highlights					88

Notes to financial statements					102

General information					121

This page intentionally left blank.

President's letter

February 15, 2012

Dear Shareholder,

As always, we remain firmly dedicated to your investment success. Thank you for your continued support.

Sincerely,

Mark E. Carver
President
The UBS Funds
Managing Director
UBS Global Asset Management (Americas) Inc.

The markets in review

Moderating growth in many countries

Global equities declined

The global equity markets experienced periods of extreme volatility during the reporting period, as a number of macro factors impacted investor sentiment. After being highly resilient and rising earlier in 2011, the US stock market fell sharply in the first half of the review period, as investor risk appetite was replaced by risk aversion. Triggering this change in sentiment were concerns about the European sovereign debt crisis, signs of decelerating global growth and the downgrade of US long-term debt. US equities then rallied sharply in the second half of the year, given signs that the economy was gaining some traction. All told, the US stock market, as measured by the S&P 500 Index,¹ declined 3.69% during the six-months ended December 31, 2011.

International developed equities (as measured by the MSCI EAFE Index (net)²) also moved higher during the first half of 2011. However, fears of contagion from the European sovereign debt crisis and increasing signs that Europe was headed for a double-dip recession led to a very sharp decline in the first half of the period. Unlike the US, however, international equities only experienced a modest gain in the second half of the period. Overall, for the six-month period ended December 31, 2011, the MSCI EAFE Index (net) declined 16.31%. Emerging markets equities (as measured by the MSCI Emerging Markets Index (net)³) generated even weaker results, falling 19.13% over the period. Concerns about a hard landing for China's economy and declining growth in the developed world drove emerging market equity prices lower.

¹ The S&P 500 Index is an unmanaged, weighted index composed of 500 widely held common stocks varying in composition, and is not available for direct investment. Investors should note that indices do not reflect the deduction of fees and expenses.

² The MSCI EAFE Index (net) is an index of stocks from 22 countries designed to measure the investment returns of developed economies outside of North America. Dividends are reinvested after the deduction of withholding tax, using tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates. The Index is constructed and managed with a view to being fully investable from the perspective of international institutional investors. Investors should note that indices do not reflect the deduction of fees and expenses.

³ The MSCI Emerging Markets Index (net) is a market capitalization-weighted index composed of companies representative of the market structure of 21 emerging market countries in Europe, Latin America, and the Pacific Basin. The index is constructed and managed with a view to being fully investable from the perspective of international institutional investors. Dividends are reinvested after deduction of withholding tax, using tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates. Had US tax rates been applied, the performance of the index would be different. Investors should note that indices do not reflect the deduction of fees and expenses.

UBS Global Equity Fund

Portfolio performance

For the six months ended December 31, 2011, Class A shares of UBS Global Equity Fund (the "Fund") declined 12.85% (Class A shares declined 17.66% after the deduction of the maximum sales charge), while Class Y shares declined 12.78%. The Fund's benchmark, the MSCI World Free Index (net) (the "Index"), declined 10.29% 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 5; 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 the Index returns do not reflect the deduction of fees and expenses.)

Both the Fund and its benchmark posted negative returns during the review period; however, the Fund slightly underperformed its index, primarily due to stock selection decisions.

Portfolio performance summary¹

What worked

• Several individual stocks were positive for performance during the period.

– Global tobacco products manufacturer Imperial Tobacco was the Fund's top-performing stock. Despite the downward trend for international equities in general, its shares moved sharply higher during the reporting period. (For additional details, see "Portfolio Highlights.")

– Samsung Electronics Co. is a high-quality growth-oriented company—a segment of the market that performed relatively well in the uncertain global economic environment. The company also benefited from increased demand for smartphones and consumer electronic devices, such as flat screen televisions.

– Google Inc. and Apple Inc. are both market leaders in their respective industries. Internet search engine company Google experienced strong revenue growth, driven by increased traffic and rising advertising revenue. Apple continued to generate exceptional results given the success of its new products, as well as very strong demand for enhanced models of the iPhone and iPad.

– Colgate-Palmolive Co. is a leading consumer products company. Its shares moved higher as investors rewarded more defensive companies that experienced solid growth and generated strong free cash flow.

• Sector allocation decisions positively contributed to relative performance in a number of areas. The Fund's sector allocations are a by-product of our bottom-up stock selection process. During the reporting period, having an overweight to information technology, and underweights to materials and industrials, were beneficial to the Fund's relative performance.

What didn't work

• Overall, individual stock selection had a negative impact on performance.

– Citigroup Inc. is a US-based multinational financial services company. It performed poorly given fears of contagion from the European sovereign debt crisis and uncertainties regarding new financial regulations. Nonetheless, the company has a very attractive valuation and a significantly improved balance sheet, as well as a valuable franchise in developing economies. We believe that the company has substantial future earnings power despite the near-term uncertainty.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 2.

UBS Global Equity Fund

– Lloyds Banking Group, a major British financial institution, detracted from performance as it faced a number of issues and posted weak earnings results. We eliminated this position after period-end, as it was no longer meeting our investment expectations. (For additional details, see "Portfolio highlights.")

– Sberbank of Russia is a Russian bank that experienced solid operating growth and loan growth. Despite these positives, its shares were hurt after management lowered its earnings projections. However, we believe that an improving economic picture, as well as continuing operating progress, will lead to improving earnings in the future.

– Carrefour is a French retailer that also has extensive real estate holdings in the country. Carrefour's shares declined as it produced disappointing operating results. (For additional details, see "Portfolio Highlights.")

• Sector allocations in several areas detracted from results. During the reporting period, having an overweight to financials and underweights to energy and consumer staples were negatives for the Fund's relative performance.

Portfolio highlights

• Imperial Tobacco is a well-managed, global tobacco products manufacturer. This defensive company's shares performed well, as it continued to generate strong free cash flow and offered an attractive dividend. Imperial Tobacco has leading market share positions in a number of highly profitable markets, including the UK, Germany, Spain and Russia. While it competes primarily in the value and mid-price ranges, the company has been successfully growing Davidoff as a global premium brand.

• Norway-based Telenor is primarily an international wireless carrier. Its shares rose during the period, as it generated a strong cash flow. We believe the company has significant upside potential from its emerging markets operations in Asia and Eastern Europe. Additionally, Telenor is more than 50% owned by the Norwegian government and, as such, it has a high-quality credit rating.

• Shares of UK-based Lloyds Banking Group fell sharply due to continued fears about its exposure to Europe's sovereign debt crisis and uncertainty about anticipated industry regulatory changes, and to problems resulting from its exposure to Ireland's collapsing real estate market. Furthermore, conditions in the UK commercial property market, where the company has substantial exposure to relatively poor-quality properties, has worsened significantly given the increasing risk of recession in Europe.

• Carrefour is a leading retailer in France; with additional operations elsewhere in Europe, Latin America and Asia, it is one of the largest retailers in the world. The market is skeptical about Carrefour's ability to turn around its hypermarket (a store combining a supermarket and a department store) business in France. As a result, its shares are trading at an extremely low valuation. We believe that management has a sound strategy to make necessary operating improvements, such as reducing promotional intensity in its stores, improving inventory and expanding its private label sales. We also believe that the company's focus on return-enhancing capital allocation will help unlock the considerable value within its French and overseas operations that, in our view, are currently being overlooked by the market.

UBS Global Equity Fund

Average annual total returns for periods ended 12/31/11 (unaudited)

	6 months			1 year			5 years			10 years
Before deducting maximum sales charge
Class A¹		(12.85	)%		(12.09	)%		(3.02	)%		2.92	%
Class B²		(13.17	)		(12.67	)		(3.71	)		2.45⁵
Class C³		(13.17	)		(12.74	)		(3.76	)		2.15
Class Y⁴		(12.78	)		(11.84	)		(2.70	)		3.24
After deducting maximum sales charge
Class A¹		(17.66	)%		(16.92	)%		(4.12	)%		2.34	%
Class B²		(17.51	)		(17.04	)		(4.07	)		2.45⁵
Class C³		(14.04	)		(13.61	)		(3.76	)		2.15
MSCI World Free Index (net)⁶		(10.29	)%		(5.54	)%		(2.37	)%		3.62	%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2011 prospectuses were as follows: Class A—1.53% and 1.50%; Class B—2.20% and 2.23%; Class C—2.32% and 2.25%; Class Y—1.15% and 1.15%. Net expenses reflect fee waivers and/or expense reimbursements/recoupments, if any, pursuant to an agreement that is in effect to cap the expenses. The Trust, with respect to the Fund, and UBS Global Asset Management (Americas) Inc., the Fund's investment advisor ("UBS Global AM (Americas)" or 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 expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) to the extent necessary so that the Fund's ordinary operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses), through the period ending October 27, 2012, do not exceed 1.50% for Class A shares, 2.25% for Class B shares, 2.25% for Class C shares and 1.25% for Class Y shares. 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 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. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total returns presented for the Class C shares shown above.

⁵ Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁶ The MSCI World Free Index (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of May 2011, the index consisted of 24 developed market country indices. Dividends are reinvested after deduction of withholding tax, using tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates. Had US tax rates been applied, the performance of the index would be different. The index is constructed and managed with a view to being fully investable from the perspective of international institutional investors. Investors should note that indices do not reflect the deduction of fees and expenses.

UBS Global Equity Fund

Top ten equity holdings (unaudited)

As of December 31, 2011

	Percentage of net assets
Apple, Inc.		2.6	%
Microsoft Corp.		2.3
BP PLC		2.3
Colgate-Palmolive Co.		2.3
Vodafone Group PLC		2.2
Carrefour SA		2.2
Wells Fargo & Co.		2.1
Nestle SA		2.0
Citigroup, Inc.		2.0
HON HAI Precision Industry Co., Ltd.		1.9
Total		21.9	%

Industry diversification (unaudited)

As a percentage of net assets as of December 31, 2011

Common stocks
Aerospace & defense	1.12	%
Beverages	1.81
Biotechnology	1.86
Building products	1.16
Capital markets	2.96
Chemicals	2.14
Commercial banks	10.86
Commercial services & supplies	1.07
Communications equipment	1.51
Computers & peripherals	2.62
Construction & engineering	2.36
Diversified consumer services	1.32
Diversified financial services	2.00
Diversified telecommunication services	2.16
Electric utilities	1.11
Electronic equipment, instruments & components	2.72
Energy equipment & services	0.84
Food & staples retailing	2.15
Food products	2.02
Gas utilities	0.85
Health care equipment & supplies	0.95
Health care providers & services	5.48
Household products	2.29
Insurance	3.00
Internet software & services	1.65
Leisure equipment & products	1.13
Machinery	3.95
Media	2.98
Metals & mining	1.67
Multi-utilities	1.17
Oil, gas & consumable fuels	7.91
Personal products	1.14
Pharmaceuticals	3.78
Semiconductors & semiconductor equipment	4.08
Software	3.99
Specialty retail	1.31
Tobacco	1.87
Trading companies & distributors	1.47
Wireless telecommunication services	2.20
Total common stocks	96.66	%
Preferred stock	0.97
Short-term investment	0.79
Investment of cash collateral from securities loaned	2.82
Total investments	101.24	%
Liabilities, in excess of cash and other assets	(1.24	)
Net assets	100.00	%

Country exposure by issuer, top five (unaudited)

As of December 31, 2011

	Percentage of net assets
United States		35.3	%
United Kingdom		11.5
Japan		8.3
Germany		5.7
Netherlands		5.5
Total		66.3	%

UBS Global Equity Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks: 96.66%
Canada: 4.02%
Canadian Oil Sands Ltd.¹		36,000	$	821,595
Petrobank Energy & Resources Ltd.*		69,000		716,584
Petrominerales Ltd.¹		50,500		820,888
Shamaran Petroleum Corp.*¹		1,297,500		452,135
Suncor Energy, Inc.¹		27,700		798,848
Total Canada common stocks				3,610,050
China: 3.68%
AIA Group Ltd.		397,455		1,240,991
China Construction Bank Corp., H Shares		1,911,450		1,333,925
Hollysys Automation Technologies Ltd.*		88,600		737,152
Total China common stocks				3,312,068
Denmark: 1.13%
FLSmidth & Co. A/S		17,230		1,012,506
France: 2.15%
Carrefour SA		84,817		1,933,676
Germany: 4.69%
Beiersdorf AG NPV		18,159		1,029,870
E.ON AG		46,172		996,168
Fresenius Medical Care AG & Co. KGaA		10,773		732,005
Infineon Technologies AG		77,781		585,486
SAP AG		16,598		877,538
Total Germany common stocks				4,221,067
Greece: 0.53%
Hellenic Telecommunications Organization SA		126,621		471,972
Indonesia: 1.17%
Bank Rakyat Indonesia Persero Tbk PT		1,411,000		1,050,372
Ireland: 1.79%
Covidien PLC		19,004		855,370
Ingersoll-Rand PLC		24,800		755,656
Total Ireland common stocks				1,611,026
Italy: 2.42%
Azimut Holding SpA		124,616		999,156
Fiat Industrial SpA*		136,697		1,172,096
Total Italy common stocks				2,171,252
Japan: 8.29%
Benesse Holdings, Inc.		24,500		1,185,689
ITOCHU Corp.		129,900		1,319,758
Mitsubishi UFJ Financial Group, Inc.		316,900		1,346,321
Sankyo Co., Ltd.		20,100		1,017,143

	Shares		Value
Shin-Etsu Chemical Co., Ltd.		15,800	$	777,991
THK Co., Ltd.		52,900		1,042,605
Tokyo Gas Co., Ltd.		167,000		768,066
Total Japan common stocks				7,457,573
Netherlands: 5.45%
ASML Holding NV		16,509		693,886
Heineken NV		35,206		1,629,873
LyondellBasell Industries NV, Class A		35,525		1,154,207
Wolters Kluwer NV		82,466		1,425,401
Total Netherlands common stocks				4,903,367
Norway: 1.63%
Telenor ASA		89,316		1,464,992
Russia: 1.49%
Gazprom OAO ADR		54,869		584,904
Sberbank of Russia		333,824		751,104
Total Russia common stocks				1,336,008
South Africa: 1.39%
Naspers Ltd., Class N		28,619		1,252,138
South Korea: 1.21%
Samsung Electronics Co., Ltd.		1,181		1,086,886
Spain: 1.23%
Obrascon Huarte Lain SA		44,224		1,109,251
Switzerland: 3.90%
Nestle SA		31,585		1,815,809
Novartis AG		29,546		1,689,152
Total Switzerland common stocks				3,504,961
Taiwan: 2.65%
HON HAI Precision Industry Co., Ltd.		624,024		1,708,497
HTC Corp.		41,000		672,975
Total Taiwan common stocks				2,381,472
Thailand: 1.09%
Kasikornbank PCL		247,500		976,664
United Kingdom: 11.48%
Aberdeen Asset Management PLC		278,821		917,979
Admiral Group PLC		47,365		626,713
Barclays PLC		299,672		819,320
BP PLC		294,137		2,103,540
Imperial Tobacco Group PLC		44,495		1,682,603
Lloyds Banking Group PLC*		1,714,054		689,572
Vodafone Group PLC		711,690		1,977,300
Xstrata PLC		99,248		1,507,412
Total United Kingdom common stocks				10,324,439

UBS Global Equity Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks—(Concluded)
United States: 35.27%
Abbott Laboratories		30,300	$	1,703,769
Apple, Inc.*		5,820		2,357,100
Autodesk, Inc.*		19,600		594,468
Bank of New York Mellon Corp.		37,600		748,616
Citigroup, Inc.		68,358		1,798,499
Colgate-Palmolive Co.		22,300		2,060,297
F5 Networks, Inc.*		6,400		679,168
Gilead Sciences, Inc.*		40,900		1,674,037
Google, Inc., Class A*		2,300		1,485,570
Helmerich & Payne, Inc.		12,900		752,844
Herman Miller, Inc.		52,100		961,245
Lowe's Cos., Inc.		46,500		1,180,170
MDU Resources Group, Inc.		49,000		1,051,540
MetLife, Inc.		26,500		826,270
Microsoft Corp.		81,300		2,110,548
Moog, Inc., Class A*		23,000		1,010,390
Occidental Petroleum Corp.		8,600		805,820
Owens Corning*		36,400		1,045,408
PNC Financial Services Group, Inc.		16,000		922,720
Texas Instruments, Inc.		44,700		1,301,217
Timken Co.		14,900		576,779
UnitedHealth Group, Inc.		32,000		1,621,760
Universal Health Services, Inc., Class B		32,200		1,251,292
WellPoint, Inc.		20,100		1,331,625
Wells Fargo & Co.		67,600		1,863,056
Total United States common stocks				31,714,208
Total common stocks (cost $91,709,872)				86,905,948

	Shares		Value
Preferred stock: 0.97%
Germany: 0.97%
Volkswagen AG, Preference shares (cost $1,117,553)		5,828	$	873,089
Short-term investment: 0.79%
Investment company: 0.79%
UBS Cash Management Prime Relationship Fund²(cost $708,376)		708,376		708,376
Investment of cash collateral from securities loaned: 2.82%
UBS Private Money Market Fund LLC²(cost $2,536,840)		2,536,840		2,536,840
Total investments: 101.24% (cost $96,072,641)				91,024,253
Liabilities, in excess of cash and other assets: (1.24)%				(1,114,780	)
Net assets: 100.00%			$	89,909,473

Notes to portfolio of investments

Aggregate cost for federal income tax purposes was substantially the same as for book purposes; and net unrealized depreciation consisted of:

Gross unrealized appreciation	$	4,917,034
Gross unrealized depreciation		(9,965,422	)
Net unrealized depreciation of investments	$	(5,048,388	)

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 71.

* Non-income producing security.

¹ Security, or portion thereof, was on loan at December 31, 2011.

UBS Global Equity Fund

Portfolio of investments

December 31, 2011 (unaudited)

² The table below details the Fund's investments in funds advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Fund.

Security description	Value 06/30/11		Purchases during the six months ended 12/31/11		Sales during the six months ended 12/31/11		Value 12/31/11		Income earned from affiliate for the six months ended 12/31/11
UBS Cash Management Prime Relationship Fund	$	71,213	$	19,299,236	$	18,662,073	$	708,376	$	423
UBS Private Money Market Fund LLC^a		3,462,365		22,176,368		23,101,893		2,536,840		208
	$	3,533,578	$	41,475,604	$	41,763,966	$	3,245,216	$	631

^a The adviser does earn a management fee from this affiliated fund, and any income earned is net of expenses. Please see the Notes to financial statements for further information.

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation/ (depreciation)
Barclays Bank PLC	AUD	870,000	EUR	659,676	03/05/12	$	(29,411	)
Barclays Bank PLC	EUR	6,355,000	USD	8,508,837	03/05/12		279,713
JPMorgan Chase Bank	CHF	1,070,000	USD	1,147,270	03/05/12		6,721
JPMorgan Chase Bank	DKK	5,080,000	USD	915,053	03/05/12		30,004
JPMorgan Chase Bank	GBP	635,000	USD	993,574	03/05/12		7,995
JPMorgan Chase Bank	HKD	5,405,000	USD	695,675	03/05/12		(414	)
JPMorgan Chase Bank	JPY	119,600,000	USD	1,541,533	03/05/12		(13,957	)
JPMorgan Chase Bank	KRW	1,475,000,000	USD	1,272,045	03/05/12		(2,954	)
JPMorgan Chase Bank	NOK	5,270,000	USD	896,107	03/05/12		16,943
JPMorgan Chase Bank	THB	27,930,000	USD	883,331	03/05/12		1,747
JPMorgan Chase Bank	TWD	63,000,000	USD	2,076,467	03/05/12		(6,605	)
JPMorgan Chase Bank	USD	854,128	AUD	870,000	03/05/12		29,501
JPMorgan Chase Bank	USD	1,349,371	CAD	1,400,000	03/05/12		22,948
JPMorgan Chase Bank	USD	588,959	CHF	540,000	03/05/12		(13,355	)
JPMorgan Chase Bank	USD	339,035	DKK	1,930,000	03/05/12		(2,787	)
JPMorgan Chase Bank	USD	879,678	EUR	675,000	03/05/12		(5,616	)
JPMorgan Chase Bank	USD	404,848	GBP	260,000	03/05/12		(1,304	)
JPMorgan Chase Bank	USD	696,050	HKD	5,405,000	03/05/12		40
JPMorgan Chase Bank	USD	2,025,759	JPY	157,000,000	03/05/12		16,147
JPMorgan Chase Bank	USD	279,029	KRW	322,000,000	03/05/12		(691	)
JPMorgan Chase Bank	USD	2,485,799	MXN	35,110,000	03/05/12		17,434
JPMorgan Chase Bank	USD	2,076,303	SEK	14,430,000	03/05/12		14,165
JPMorgan Chase Bank	USD	1,863,934	SGD	2,420,000	03/05/12		1,635
JPMorgan Chase Bank	ZAR	9,440,000	USD	1,126,016	03/05/12		(32,108	)
Net unrealized appreciation on forward foreign currency contracts						$	335,791

UBS Global Equity Fund

Portfolio of investments

December 31, 2011 (unaudited)

Concluded

The following is a summary of the inputs used as of December 31, 2011 in valuing the Fund's investments:

Description	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	86,905,948	$	—	$	—	$	86,905,948
Preferred stock		873,089		—		—		873,089
Short-term investment		—		708,376		—		708,376
Investment of cash collateral from securities loaned		—		2,536,840		—		2,536,840
Forward foreign currency contracts		—		335,791		—		335,791
Total	$	87,779,037	$	3,581,007	$	—	$	91,360,044

See accompanying notes to financial statements.
10

UBS International Equity Fund

Portfolio performance

For the six months ended December 31, 2011, Class A shares of UBS International Equity Fund (the "Fund") declined 19.11% (Class A shares declined 23.57% after the deduction of the maximum sales charge), while Class Y shares declined 18.98%. The Fund's benchmark, the MSCI World Free ex USA Index (net) (the "Index"), declined 16.16% 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 13; 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 the Index returns do not reflect the deduction of fees and expenses.)

The Fund posted a negative absolute return and underperformed its benchmark Index (which also posted a negative absolute return) during the reporting period, primarily due to stock selection.

Portfolio performance summary¹

What worked

• Several individual stocks contributed to performance during the period.

– Samsung Electronics Co. is a high-quality, growth-oriented company—a segment of the market that performed relatively well in the uncertain global economic environment. The company also benefited from increased demand for smartphones and consumer electronic devices, such as flat screen televisions.

– Global tobacco products manufacturer Imperial Tobacco was among the Fund's top performing stocks. Despite the downward trend for international equities in general, its shares moved sharply higher during the reporting period. (For additional details, see "Portfolio Highlights.")

– ASML Holding is a Dutch company and the world's largest supplier of photolithography systems for the semiconductor industry. Its shares benefited from improved capital spending for photolithography systems. In particular, ASML Holding experienced rising demand from end users involved in the manufacturing of smartphones and other consumer electronics.

– Astra International is an Indonesian tobacco company. As was the case with Imperial Tobacco (see above), this stock performed well because it was viewed as being defensive in the uncertain macro environment. In addition, Astra is experiencing growing sales in emerging market countries.

• Sector allocation decisions positively contributed to relative performance in a number of areas. The Fund's overall sector allocations are a byproduct of our bottom-up stock selection process. During the reporting period, having underweights to financials, materials and utilities were beneficial to the Fund's relative performance.

What didn't work

• Overall, individual stock selection had a negative impact on performance.

– BNP Paribas is a French bank with a significant exposure to sovereign debt risk in Europe. Uncertainties regarding the recapitalization of European banks and concerns about a downgrade to France's credit rating negatively impacted its performance during the reporting period. (For additional details, see "Portfolio Highlights.")

¹ For a detailed commentary on the market environment in general during the reporting period, see page 2.

UBS International Equity Fund

– DeNA Co. is an operator of social media, community, auction and shopping and mobile gaming for Internet sites in Japan. Its shares fell sharply after the company reported results that fell short of the company's prior projections. Its shares were further hurt following the announcement of a lawsuit being brought against the company by rival Gree, Inc. In particular, it was alleged that DeNA pressured or forced social game developers not to trade with its competitors. (For additional details, see "Portfolio Highlights.")

– Petrominerales Ltd. is a Latin America-based oil exploration, development and production company. Its shares were hurt after reporting disappointing results in several of its wells. We kept this stock because we believe its valuation is extremely attractive and that its production profiles will be successful.

• Sector allocations in several areas detracted from results. During the reporting period, having underweights to health care and consumer staples, and an overweight to industrials were negative for the Fund's relative performance.

Portfolio highlights

• Imperial Tobacco is a well-managed, global tobacco products manufacturer. This defensive company's shares performed well, as it continued to generate strong free cash flow and it offered an attractive dividend. Imperial Tobacco has leading market share positions in a number of highly profitable markets, including the UK, Germany, Spain and Russia. While it competes primarily in the value and mid-price ranges, the company has been successfully growing Davidoff as a global premium brand.

• Norway-based Telenor is primarily an international wireless carrier. Its shares rose during the period as it generated strong cash flow. We believe the company has significant upside potential from its emerging market operations in Asia and Eastern Europe. Additionally, Telenor is more than 50% owned by the Norwegian government and, as such, it has a high quality credit rating.

• Fears over the Eurozone sovereign debt crisis weighed heavily on BNP Paribas shares during the reporting period. We reduced the size of the Fund's position in the stock given uncertainties in the Eurozone and given concerns over higher funding costs and the impact of forced deleveraging on the company's future growth prospects. We continue to hold this position because we believe the company has an extremely low valuation discounting the near-term fear, and considerable upside potential when the European economy improves.

• We continue to view the DeNA Co. favorably. It is a leading developer of social games for mobile devices. The mobile social games market in Japan reached Y150bn in 2010, and is estimated to grow 14% per year through 2014. The company's game platform Mobage-town continues to attract customers, and has the ability to raise existing revenue per user by increasing hit titles and increasing billable activities in established games. We believe the company is well-positioned for overseas growth through its subsidiary ngcomo, Inc. and Gameview Studios, and recently announced a partnership with Samsung Electronics.

UBS International Equity Fund

Average annual total returns for periods ended 12/31/11 (unaudited)

	6 months			1 year			5 years			10 years			Inception¹
Before deducting maximum sales charge
Class A²		(19.11	)%		(18.01	)%		(5.03	)%		3.25	%		1.81	%
Class B³		(19.40	)		(18.63	)		(5.72	)		N/A			3.19⁶
Class C⁴		(19.36	)		(18.65	)		(5.75	)		N/A			2.85
Class Y⁵		(18.98	)		(17.79	)		(4.80	)		3.48			3.69
After deducting maximum sales charge
Class A²		(23.57	)%		(22.50	)%		(6.09	)%		2.66	%		1.42	%
Class B³		(23.43	)		(22.70	)		(6.02	)		N/A			3.19⁶
Class C⁴		(20.16	)		(19.45	)		(5.75	)		N/A			2.85
MSCI World Free ex USA Index (net)⁷		(16.16	)%		(12.21	)%		(4.09	)%		5.14	%		4.41	%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2011 prospectuses were as follows: Class A—2.04% and 1.25%; Class B—2.87% and 2.00%; Class C—2.82% and 2.00%; Class Y—1.78% 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. UBS Global Asset Management (Americas) Inc., the Fund's investment advisor ("UBS Global AM (Americas)" or the "Advisor"), has agreed irrevocably to waive its fees and reimburse certain expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) so that the Fund's ordinary operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) 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 June 30, 1997. Inception dates of Class B and Class C shares are February 12, 2002 and January 25, 2002, respectively. Inception date of Class Y shares and the index is August 31, 1993.

² Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service 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. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total returns presented for the Class C shares shown above.

⁶ Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁷ The MSCI World Free ex USA Index (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets excluding the United States. As of May 2011, the index consisted of 23 developed market country indices. Dividends are reinvested after deduction of withholding tax, using tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates. Had US tax rates been applied, the performance of the index would be different. The index is constructed and managed with a view to being fully investable from the perspective of international institutional investors. Investors should note that indices do not reflect the deduction of fees and expenses.

UBS International Equity Fund

Top 10 equity holdings (unaudited)

As of December 31, 2011

	% of net assets
Novartis AG		2.4	%
Nestle SA		2.2
Vodafone Group PLC		2.0
BP PLC		1.8
Imperial Tobacco Group PLC		1.6
Samsung Electronics Co., Ltd.		1.6
Xstrata PLC		1.4
Telenor ASA		1.3
Mitsubishi UFJ Financial Group, Inc.		1.3
ITOCHU Corp.		1.2
Total		16.8	%

Country exposure by issuer, top five (unaudited)

As of December 31, 2011

	% of net assets
United Kingdom		18.7	%
Japan		14.7
Germany		8.6
Switzerland		6.5
China		5.4
Total		53.9	%

UBS International Equity Fund

Industry diversification (unaudited)

As a percentage of net assets as of December 31, 2011

Common stocks
Aerospace & defense	0.63	%
Airlines	0.47
Auto components	1.21
Automobiles	2.45
Beverages	1.19
Building products	0.77
Capital markets	0.66
Chemicals	3.77
Commercial banks	12.54
Commercial services & supplies	1.14
Communications equipment	0.48
Computers & peripherals	0.42
Construction & engineering	0.91
Construction materials	0.88
Diversified financial services	1.39
Diversified telecommunication services	1.36
Electric utilities	1.35
Electrical equipment	0.41
Electronic equipment, instruments & components	1.19
Energy equipment & services	2.46
Food & staples retailing	1.70
Food products	2.84
Gas utilities	0.56
Health care equipment & supplies	0.90
Health care providers & services	1.27
Hotels, restaurants & leisure	0.59
Household durables	0.36
Household products	0.38
Industrial conglomerates	0.42
Insurance	3.77
Internet & catalog retail	0.44
Internet software & services	1.07
Leisure equipment & products	0.86
Machinery	5.30
Media	2.20
Metals & mining	5.40
Multiline retail	0.17
Office electronics	0.32
Oil, gas & consumable fuels	8.64
Personal products	0.69
Pharmaceuticals	4.55
Professional services	0.65
Real estate management & development	0.74
Semiconductors & semiconductor equipment	3.57
Software	1.72
Specialty retail	1.42
Textiles, apparel & luxury goods	1.05
Tobacco	2.09
Trading companies & distributors	2.02
Wireless telecommunication services	4.13
Total common stocks	95.50	%
Preferred stock	1.05	%
Short-term investment	1.91
Investment of cash collateral from securities loaned	3.14
Total investments	101.60	%
Liabilities, in excess of cash and other assets	(1.60	)
Net assets	100.00	%

UBS International Equity Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks: 95.50%
Australia: 2.17%
BHP Billiton Ltd.		1,733	$	61,010
Incitec Pivot Ltd.		24,929		79,297
National Australia Bank Ltd.		3,575		85,416
Orica Ltd.		8,831		218,944
Total Australia common stocks				444,667
Belgium: 0.23%
Anheuser-Busch InBev NV		775		47,449
Brazil: 0.93%
Cia Hering		2,700		46,987
Vale SA ADR		6,700		143,715
Total Brazil common stocks				190,702
Canada: 5.24%
Bombardier, Inc., Class B		32,500		129,521
Canadian Oil Sands Ltd.¹		5,800		132,368
Major Drilling Group International		2,600		39,660
Pan American Silver Corp.		1,921		41,897
Petrobank Energy & Resources Ltd.*		9,200		95,545
Petrominerales Ltd.¹		6,700		108,910
Royal Bank of Canada		3,800		193,889
Suncor Energy, Inc.¹		6,000		173,036
Teck Resources Ltd., Class B		1,000		35,249
Trican Well Service Ltd.¹		7,200		124,034
Total Canada common stocks				1,074,109
China: 5.37%
Agile Property Holdings Ltd.¹		66,000		59,146
AIA Group Ltd.		48,038		149,991
Baidu, Inc. ADR*		800		93,176
BBMG Corp., H Shares		55,500		36,873
Brilliance China Automotive Holdings Ltd.*		26,000		28,053
China Construction Bank Corp., H Shares		327,280		228,396
China Merchants Bank Co., Ltd., H Shares		75,259		152,134
Dongfang Electric Corp. Ltd., H Shares		28,600		84,696
Haier Electronics Group Co., Ltd.*		37,000		33,110
Intime Department Store Group Co., Ltd.¹		33,000		33,779
Melco Crown Entertainment Ltd. ADR*		7,300		70,226
New World Development Co., Ltd.		114,000		91,886
Xinyi Glass Holdings Ltd.		70,000		40,198
Total China common stocks				1,101,664
Denmark: 1.84%
FLSmidth & Co. A/S		3,181		186,929
Novo Nordisk A/S, Class B		1,660		190,761
Total Denmark common stocks				377,690
Finland: 0.93%
Sampo Oyj, Class A		7,677		190,472

	Shares		Value
France: 2.70%
BNP Paribas SA		4,758	$	186,897
Carrefour SA		11,240		256,252
Technip SA		472		44,362
Valeo SA		1,646		65,423
Total France common stocks				552,934
Germany: 7.53%
Allianz SE²		288		27,549
Beiersdorf AG NPV		2,495		141,501
Deutsche Bank AG²		626		23,848
Dialog Semiconductor PLC*		4,150		67,569
E.ON AG		6,497		140,174
Fresenius Medical Care AG & Co. KGaA		3,158		214,580
Fresenius SE & Co KGaA		484		44,776
GEA Group AG		3,492		98,752
HeidelbergCement AG		3,379		143,400
Infineon Technologies AG		18,302		137,766
Kabel Deutschland Holding AG*		2,159		109,578
Lanxess AG		1,224		63,366
MAN SE		1,311		116,568
Metro AG		2,539		92,668
SAP AG		2,326		122,976
Total Germany common stocks				1,545,071
Hong Kong: 1.02%
Emperor Watch & Jewellery Ltd.¹		560,000		69,940
Hong Kong Exchanges & Clearing Ltd.		5,500		87,883
Shangri-La Asia Ltd.		30,000		51,760
Total Hong Kong common stocks				209,583
Indonesia: 2.14%
Astra International Tbk PT		29,000		236,669
Bank Rakyat Indonesia PT		271,000		201,737
Total Indonesia common stocks				438,406
Ireland: 0.47%
Ryanair Holdings PLC ADR*		3,500		97,510
Israel: 0.81%
Mellanox Technologies Ltd.*		2,000		64,980
Teva Pharmaceutical Industries Ltd.		2,473		100,710
Total Israel common stocks				165,690
Italy: 2.06%
Fiat Industrial SpA*		23,133		198,352
Saipem SpA		3,721		158,203
Tod's SpA		799		65,200
Total Italy common stocks				421,755

UBS International Equity Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks—(Continued)
Japan: 14.66%
Asahi Glass Co., Ltd.		14,000	$	117,500
Canon, Inc.¹		1,500		66,454
DeNA Co., Ltd.		2,100		62,997
Denki Kagaku Kogyo KK		18,000		66,649
FANUC Corp.		1,400		214,265
Isuzu Motors Ltd.		26,000		120,255
ITOCHU Corp.		25,400		258,059
Japan Petroleum Exploration Co.		3,000		117,318
KDDI Corp.		20		128,622
Komatsu Ltd.		3,200		74,793
Makino Milling Machine Co., Ltd.		5,000		30,791
Mitsubishi Corp.		7,700		155,561
Mitsubishi UFJ Financial Group, Inc.		64,000		271,898
Nippon Sheet Glass Co., Ltd.		22,000		41,159
Nissan Motor Co., Ltd.		12,800		115,079
NTT DoCoMo, Inc.		13		23,899
ORIX Corp.		1,660		137,165
OSAKA Titanium Technologies Co.		1,400		61,933
Rakuten, Inc.		83		89,287
Sankyo Co., Ltd.		3,500		177,115
Shin-Etsu Chemical Co., Ltd.		3,600		177,264
Square Enix Holdings Co., Ltd.		4,000		78,524
THK Co., Ltd.		6,200		122,196
Tokio Marine Holdings, Inc.		8,300		183,857
Tokyo Gas Co., Ltd.		25,000		114,980
Total Japan common stocks				3,007,620
Luxembourg: 0.80%
ArcelorMittal		8,935		163,401
Malaysia: 0.51%
Petronas Chemicals Group Bhd		53,700		105,028
Netherlands: 3.79%
ASML Holding NV		3,126		131,388
Gemalto NV		1,760		85,603
Heineken NV		4,252		196,848
ING Groep NV CVA*		8,277		59,561
Royal Dutch Shell PLC, Class A		3,712		136,682
Wolters Kluwer NV		9,669		167,126
Total Netherlands common stocks				777,208
Norway: 2.14%
Storebrand ASA		14,298		74,348
Subsea 7 SA*		4,631		85,948
Telenor ASA		16,960		278,184
Total Norway common stocks				438,480
Russia: 3.03%
Gazprom OAO ADR		12,629		134,625
Mobile Telesystems OJSC ADR		9,550		140,194

	Shares		Value
NovaTek OAO GDR		1,325	$	165,890
Sberbank of Russia Federation		63,525		142,931
VTB Bank OJSC GDR		10,553		38,097
Total Russia common stocks				621,737
Singapore: 1.37%
Biosensors International Group Ltd.*		91,000		100,328
Golden Agri-Resources Ltd.		171,000		94,264
Keppel Corp. Ltd.		12,200		87,475
Total Singapore common stocks				282,067
South Africa: 1.72%
MTN Group Ltd.		7,628		135,815
Naspers Ltd., Class N		4,053		177,327
Steinhoff International Holdings Ltd.*		14,017		39,902
Total South Africa common stocks				353,044
South Korea: 2.30%
Hyundai Mobis*		555		141,412
Samsung Electronics Co., Ltd.		360		331,311
Total South Korea common stocks				472,723
Spain: 1.78%
Banco Bilbao Vizcaya Argentaria SA		2,012		17,395
Banco Santander SA		24,823		188,587
Inditex SA		1,382		113,186
Viscofan SA		1,236		45,847
Total Spain common stocks				365,015
Sweden: 1.69%
Elekta AB, Class B		1,946		84,405
Skandinaviska Enskilda Banken AB, Class A		12,023		70,038
Swedish Match AB		2,525		89,633
Trelleborg AB, Class B		7,037		61,095
Volvo AB, Class B		3,754		41,074
Total Sweden common stocks				346,245
Switzerland: 6.45%
Cie Financiere Richemont SA, Class A		1,714		86,694
Credit Suisse Group AG*²		1,656		38,910
GAM Holding AG*		6,687		72,615
Nestle SA		7,706		443,015
Novartis AG		8,509		486,462
SGS SA²		80		132,439
Swatch Group AG		943		62,847
Total Switzerland common stocks				1,322,982
Taiwan: 1.67%
HON HAI Precision Industry Co., Ltd.		89,386		244,727
HTC Corp.		6,000		98,484
Total Taiwan common stocks				343,211

UBS International Equity Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks—(Concluded)
Thailand: 1.45%
Home Product Center PCL		175,300	$	61,119
Kasikornbank PCL		59,800		235,978
Total Thailand common stocks				297,097
United Kingdom: 18.70%
Afren PLC*		26,270		34,963
Aggreko PLC		7,438		232,988
Anglo American PLC		1,639		60,554
Barclays PLC		72,417		197,992
BG Group PLC		6,736		143,996
BP PLC		52,283		373,905
Croda International PLC		2,259		63,288
HSBC Holdings PLC		15,643		119,294
Imperial Tobacco Group PLC		8,928		337,617
John Wood Group PLC		8,970		89,294
Lloyds Banking Group PLC*		265,790		106,929
Prudential PLC		14,983		148,570
Reckitt Benckiser Group PLC		1,573		77,683
Rio Tinto PLC		4,535		220,089
Sage Group PLC		33,316		152,218
Shire PLC		4,487		156,299
SSE PLC		6,871		137,758
Standard Chartered PLC		6,158		134,748
Telecity Group PLC*		6,364		63,945
Tullow Oil PLC		7,105		154,698
Vodafone Group PLC		150,437		417,962

	Shares		Value
Weir Group PLC		4,124	$	130,141
Xstrata PLC		18,554		281,805
Total United Kingdom common stocks				3,836,736
Total common stocks (cost $20,037,227)				19,590,296
Preferred stock: 1.05%
Germany: 1.05%
Volkswagen AG, Preference shares (cost $185,134)		1,441		215,876
Short-term investment: 1.91%
Investment company: 1.91%
UBS Cash Management Prime Relationship Fund³(cost $391,107)		391,107		391,107
Investment of cash collateral from securities loaned: 3.14%
UBS Private Money Market Fund LLC³(cost $644,154)		644,154		644,154
Total investments: 101.60% (cost $21,257,622)				20,841,433
Liabilities, in excess of cash and other assets: (1.60)%				(327,838	)
Net assets: 100.00%			$	20,513,595

Notes to portfolio of investments

Aggregate cost for federal income tax purposes, which was substantially the same as for book purposes, and net unrealized depreciation consisted of:

Gross unrealized appreciation	$	2,259,247
Gross unrealized depreciation		(2,675,436	)
Net unrealized depreciation of investments	$	(416,189	)

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 71.

* Non-income producing security.

¹ Security, or portion thereof, was on loan at December 31, 2011.

² Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. At December 31, 2011, the value of these securities amounted to $222,746 or 1.09% of net assets.

UBS International Equity Fund

Portfolio of investments

December 31, 2011 (unaudited)

³ The table below details the Fund's investments in funds advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Funds.

Security description	Value 06/30/11		Purchases during the six months ended 12/31/11		Sales during the six months ended 12/31/11		Value 12/31/11		Income earned from affiliate for the six months ended 12/31/11
UBS Cash Management Prime Relationship Fund	$	379,602	$	4,182,745	$	4,171,240	$	391,107	$	310
UBS Private Money Market Fund LLC^a		1,597,843		5,736,957		6,690,646		644,154		59
	$	1,977,445	$	9,919,702	$	10,861,886	$	1,035,261	$	369

^a The adviser does earn a management fee from this affiliated fund, and any income earned is net of expenses. Please see the Notes to financial statements for further information.

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation/ (depreciation)
Barclays Bank plc	AUD	55,000	EUR	41,704	03/05/12	$	(1,859	)
JPMorgan Chase Bank	AUD	180,000	USD	176,716	03/05/12		(6,104	)
JPMorgan Chase Bank	BRL	360,000	USD	190,668	03/05/12		276
JPMorgan Chase Bank	DKK	720,000	USD	129,693	03/05/12		4,253
JPMorgan Chase Bank	EUR	1,070,000	USD	1,432,805	03/05/12		47,256
JPMorgan Chase Bank	GBP	85,000	USD	132,827	03/05/12		899
JPMorgan Chase Bank	HKD	1,370,000	USD	175,851	03/05/12		(586	)
JPMorgan Chase Bank	JPY	3,900,000	USD	50,246	03/05/12		(477	)
JPMorgan Chase Bank	KRW	298,000,000	USD	256,996	03/05/12		(597	)
JPMorgan Chase Bank	MYR	458,000	USD	143,255	03/05/12		(707	)
JPMorgan Chase Bank	NOK	1,310,000	USD	222,752	03/05/12		4,212
JPMorgan Chase Bank	SEK	570,000	USD	81,570	03/05/12		(1,006	)
JPMorgan Chase Bank	SEK	1,260,000	USD	186,154	03/05/12		3,618
JPMorgan Chase Bank	THB	7,880,000	USD	249,131	03/05/12		406
JPMorgan Chase Bank	TWD	11,600,000	USD	382,334	03/05/12		(1,216	)
JPMorgan Chase Bank	USD	642,250	CAD	665,000	03/05/12		9,601
JPMorgan Chase Bank	USD	65,440	CHF	60,000	03/05/12		(1,484	)
JPMorgan Chase Bank	USD	501,976	EUR	380,000	03/05/12		(9,912	)
JPMorgan Chase Bank	USD	653,985	GBP	420,000	03/05/12		(2,106	)
JPMorgan Chase Bank	USD	877,399	JPY	68,000,000	03/05/12		6,994
JPMorgan Chase Bank	USD	504,098	MXN	7,120,000	03/05/12		3,536
JPMorgan Chase Bank	USD	151,101	PLN	515,000	03/05/12		(2,736	)
JPMorgan Chase Bank	USD	525,191	SEK	3,650,000	03/05/12		3,583
JPMorgan Chase Bank	USD	338,897	SGD	440,000	03/05/12		297
JPMorgan Chase Bank	ZAR	2,400,000	USD	283,099	03/05/12		(11,339	)
Net unrealized appreciation on forward foreign currency contracts						$	44,802

UBS International Equity Fund

Portfolio of investments

December 31, 2011 (unaudited)

Concluded

The following is a summary of the inputs used as of December 31, 2011 in valuing the Fund's investments:

Description	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	19,590,296	$	—	$	—	$	19,590,296
Preferred stock		215,876		—		—		215,876
Short-term investment		—		391,107		—		391,107
Investment of cash collateral from securities loaned		—		644,154		—		644,154
Forward foreign currency contracts		—		44,802		—		44,802
Total	$	19,806,172	$	1,080,063	$	—	$	20,886,235

See accompanying notes to financial statements.
20

UBS Market Neutral Multi-Strategy Fund

Portfolio performance

For the six months ended December 31, 2011, Class A shares of UBS Market Neutral Multi-Strategy Fund (the "Fund") declined 1.08% (Class A shares declined 6.48% after the deduction of the maximum sales charge), while Class Y shares declined 0.97%. The Fund's benchmark, the Citigroup Three-Month US Treasury Bill Index (the "Index"), returned 0.02% 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 23; please note that the Fund's returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares, while the Index returns do not reflect the deduction of fees and expenses.)

The Fund's underperformance versus its benchmark was driven by the negative returns generated by the event-driven and the European fundamental sleeves.

During the reporting period, the various sleeves in which the Fund invests used derivative instruments for efficient portfolio and risk management purposes. The use of these derivatives during the period was successful in helping to manage risk in the Fund.

Portfolio performance summary¹

What worked

• The global quantitative sleeve was the largest positive contributor to performance during the reporting period. This sleeve is based on our proprietary multi-factor model that captures key fundamental-driven investment themes: valuation, capital use, quality, growth and market behavior. Each factor is designed to have zero correlation to all other factors. In particular, the sleeve's overweight to the information technology sector and underweight to the financials sector added the most value. From a country perspective, the sleeve's overweight to Japan and underweights to Canada and Germany were the most positive for performance.

• The US fundamental sleeve added value during the reporting period, primarily due to stock selection in the health care sector. Early in 2011, our research identified a compelling set of uncorrelated opportunities within the health care sector. One such opportunity was a biotech company that was developing a promising Hepatitis C treatment that our proprietary analysis suggested was grossly undervalued. At the end of the review period, our view was rewarded when a bid was made for the company at a premium of 89%, supporting our original investment thesis. The information technology sector also contributed positively, building on a successful track record from the previous three years.

What didn't work

• The event-driven sleeve detracted the most from results during the reporting period. The event-driven sleeve seeks to identify and capitalize on specific events, such as reconstitutions in major global equity indexes. After a positive start into 2011, the sleeve experienced difficulties in June and October. In June, the sleeve's negative performance was mainly attributed to Russell Investments' annual reconstitution of its indexes, while in October, the sleeve was hurt by its trades related to the third quarter initial public offering (IPO) additions to the Russell indexes. The strategy's positive performance at the end of the reporting period helped to offset some of its prior weakness.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 2.

UBS Market Neutral Multi-Strategy Fund

• The European fundamental sleeve also detracted from results during the reporting period. The ongoing European sovereign debt crisis and increased expectations for recession in Europe negatively impacted the sleeve during the first half of the period. Solid performance in the second half of the review period was not enough to offset its earlier weakness.

• Overall, our strategic allocation among the various sleeves was not rewarded. In particular, we reduced the Fund's weighting in the global quantitative sleeve from 40% to 20% just prior to the start of the review period. This sleeve then performed strongly during the period, and the Fund did not fully benefit from its outperformance. As of December 31, 2011, the sleeve weightings were: US fundamental 27%, European fundamental 27%, event-driven 26%, global quantitative 20%.

UBS Market Neutral Multi-Strategy Fund

Average annual total returns for periods ended 12/31/11 (unaudited)

	6 months			1 year			Inception¹
Before deducting maximum sales charge
Class A²		(1.08	)%		(2.58	)%		(2.71	)%
Class C³		(1.50	)		(3.30	)		(3.38	)
Class Y⁴		(0.97	)		(2.38	)		(2.44	)
After deducting maximum sales charge
Class A²		(6.48	)%		(7.91	)%		(6.29	)%
Class C³		(2.48	)		(4.27	)		(3.38	)
Citigroup Three-Month US Treasury Bill Index⁵		0.02	%		0.08	%		0.10	%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2011 prospectuses were as follows: Class A—5.30% and 4.17%; Class C—5.98% and 4.98%; Class Y—4.87% and 3.86%. 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 UBS Global Asset Management (Americas) Inc., the Fund's investment advisor ("UBS Global AM (Americas)" or 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 expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and security loan fees for securities sold short) to the extent necessary so that the Fund's ordinary operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and security loan fees for securities sold short), through the period ending October 27, 2012, do not exceed 1.75% for Class A shares, 2.50% for Class C shares and 1.50% for Class Y shares. 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 shares of UBS Market Neutral Multi-Strategy Fund and the index is June 30, 2010.

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.

⁵ The Citigroup Three-Month US Treasury Bill Index is an unmanaged index reflecting monthly return equivalents of yield averages that are not marked to the market and an average of the last three 3-month T-bill month-end rates. 3-month T-bills are the short-term debt obligations of the US government. Investors should note that indices do not reflect the deduction of fees and expenses.

UBS Market Neutral Multi-Strategy Fund

Top ten equity holdings (unaudited)^1,2

As of December 31, 2011

	Percentage of net assets
Imperial Tobacco Group PLC		1.5	%
Telenor ASA		1.4
Enagas SA		1.1
Fresenius Medical Care AG & Co. KGaA		1.1
BAE Systems PLC		1.0
Linde AG		1.0
Sampo Oyj, Class A		0.9
Vinci SA		0.9
Illinois Tool Works, Inc.		0.9
FedEx Corp.		0.9
Total		10.7	%

¹ Only long positions are considered for top ten holdings.

² Figures represent the direct investments of UBS Market Neutral Multi-Strategy Fund. Figures would be different if a breakdown of the underlying investment company was included.

UBS Market Neutral Multi-Strategy Fund

Industry diversification (unaudited)¹

As a percentage of net assets as of December 31, 2011

Common stocks
Aerospace & defense	2.09	%
Air freight & logistics	1.15
Airlines	0.21
Auto components	0.36
Automobiles	0.26
Beverages	2.03
Biotechnology	2.76
Building products	0.23
Capital markets	1.88
Chemicals	2.73
Commercial banks	1.39
Communications equipment	0.49
Computers & peripherals	1.26
Construction & engineering	1.52
Construction materials	0.24
Consumer finance	0.16
Containers & packaging	0.09
Distributors	0.21
Diversified consumer services	0.58
Diversified financial services	0.31
Diversified telecommunication services	3.94
Electric utilities	3.92
Electrical equipment	0.05
Electronic equipment, instruments & components	0.34
Energy equipment & services	1.40
Food & staples retailing	1.45
Food products	1.57
Gas utilities	1.20
Health care equipment & supplies	1.11
Health care providers & services	1.77
Hotels, restaurants & leisure	0.65
Household durables	0.09
Household products	0.61
Independent power producers & energy traders	0.29
Industrial conglomerates	0.20
Insurance	1.82
Internet & catalog retail	0.60
Internet software & services	0.53
IT services	1.50
Leisure equipment & products	0.18
Life sciences tools & services	0.74
Machinery	2.37
Marine	0.07
Media	2.25
Metals & mining	3.25
Multiline retail	0.36
Oil, gas & consumable fuels	3.73
Pharmaceuticals	2.57
Professional services	0.34
Real estate investment trust (REIT)	1.63
Real estate management & development	0.30
Road & rail	0.80
Semiconductors & semiconductor equipment	2.95
Software	3.25	%
Specialty retail	1.87
Textiles, apparel & luxury goods	0.76
Thrifts & mortgage finance	0.14
Tobacco	1.57
Trading companies & distributors	0.10
Transportation infrastructure	0.18
Wireless telecommunication services	0.11
Total common stocks	72.51	%
Preferred stock	0.21
Investment company
iShares II PLC	1.27
Rights	0.00²
Short-term investment	45.19
Total investments before investments sold short	119.18	%
Investments sold short
Common stocks
Aerospace & defense	(0.08	)
Air freight & logistics	(0.66	)
Airlines	(0.17	)
Auto components	(0.52	)
Automobiles	(0.29	)
Beverages	(1.59	)
Biotechnology	(0.31	)
Building products	(1.28	)
Capital markets	(1.05	)
Chemicals	(2.60	)
Commercial banks	(1.89	)
Commercial services & supplies	(0.24	)
Communications equipment	(0.72	)
Computers & peripherals	(1.04	)
Construction & engineering	(0.29	)
Construction materials	(0.21	)
Consumer finance	(0.28	)
Containers & packaging	(0.09	)
Distributors	(0.29	)
Diversified consumer services	(0.12	)
Diversified financial services	(0.24	)
Diversified telecommunication services	(2.98	)
Electric utilities	(1.99	)
Electrical equipment	(1.91	)
Electronic equipment, instruments & components	(0.14	)
Energy equipment & services	(0.91	)
Food & staples retailing	(1.86	)
Food products	(4.81	)
Gas utilities	(1.20	)
Health care equipment & supplies	(1.58	)
Health care providers & services	(1.59	)
Hotels, restaurants & leisure	(1.38	)
Household durables	(0.34	)
Household products	(0.62	)

UBS Market Neutral Multi-Strategy Fund

Industry diversification (unaudited)¹

As a percentage of net assets as of December 31, 2011

Investments sold short—(Concluded)
Common stocks—(Concluded)
Independent power producers & energy traders	(0.71	)%
Industrial conglomerates	(0.99	)
Insurance	(2.44	)
Internet & catalog retail	(0.57	)
Internet software & services	(0.48	)
IT services	(1.89	)
Leisure equipment & products	(0.09	)
Life sciences tools & services	(0.87	)
Machinery	(3.18	)
Marine	(0.23	)
Media	(1.57	)
Metals & mining	(3.57	)
Multiline retail	(1.12	)
Multi-utilities	(2.26	)
Oil, gas & consumable fuels	(4.10	)
Paper & forest products	(0.20	)
Pharmaceuticals	(4.55	)
Professional services	(0.21	)
Real estate investment trust (REIT)	(1.05	)
Real estate management & development	(0.32	)
Road & rail	(0.71	)
Semiconductors & semiconductor equipment	(1.61	)
Software	(2.32	)
Specialty retail	(1.23	)
Textiles, apparel & luxury goods	(0.45	)
Thrifts & mortgage finance	(0.06	)
Trading companies & distributors	(1.36	)
Transportation infrastructure	(0.10	)
Water utilities	(0.66	)
Wireless telecommunication services	(0.10	)
Total common stocks	(74.27	)%
Preferred stock	(0.07	)
Total investments sold short	(74.34	)%
Total investments, net of investments sold short	44.84
Cash and other assets, less liabilities	55.16
Net assets	100.00	%

¹Figures represent the industry breakdown of direct investments of UBS Market Neutral Multi-Strategy Fund. Figures would be different if a breakdown of the underlying investment company's industry diversification was included.

²Amount represents less than 0.005%.

UBS Market Neutral Multi-Strategy Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks: 72.51%
Australia: 0.54%
Charter Hall Office REIT		4,970	$	17,842
CSL Ltd.		532		17,412
Echo Entertainment Group Ltd.*		1,187		4,359
Fairfax Media Ltd.		17,510		12,895
OneSteel Ltd.		9,333		6,682
Suncorp Group Ltd.		2,089		17,905
Telstra Corp. Ltd.		5,784		19,700
Total Australia common stocks				96,795
Austria: 0.53%
Telekom Austria AG¹		8,030		96,246
Belgium: 1.71%
Anheuser-Busch InBev NV		552		33,796
Delhaize Group SA		241		13,539
KBC Groep NV		470		5,919
Nyrstar NV*		13,744		108,508
UCB SA NPV		3,494		147,014
Total Belgium common stocks				308,776
Canada: 0.31%
Ensign Energy Services, Inc.		900		14,356
Precision Drilling Corp.*		1,300		13,399
Teck Resources Ltd., Class B		400		14,100
Trican Well Service Ltd.		800		13,781
Total Canada common stocks				55,636
China: 0.24%
Changsha Zoomlion Heavy Industry Science & Technology Development Co., Ltd., H Shares		2,820		3,035
New World Development Co., Ltd.		12,000		9,672
NWS Holdings Ltd.		14,000		20,622
Yangzijiang Shipbuilding Holdings Ltd.		15,000		10,524
Total China common stocks				43,853
Denmark: 0.99%
Carlsberg A/S, Class B¹		1,752		123,545
FLSmidth & Co. A/S		429		25,210
H Lundbeck A/S		715		13,445
TDC A/S		2,008		16,104
Total Denmark common stocks				178,304
Finland: 1.11%
Orion Oyj, Class B		730		14,219
Sampo Oyj, Class A¹		6,891		170,971
Wartsila Oyj		562		16,235
Total Finland common stocks				201,425

	Shares		Value
France: 2.86%
BNP Paribas SA¹		139	$	5,460
Cap Gemini SA		701		21,906
EDF SA¹		2,861		69,614
Eiffage SA		2,188		52,969
France Telecom SA¹		6,981		109,642
LVMH Moet Hennessy Louis Vuitton SA¹		405		57,344
Total SA		320		16,359
Vinci SA¹		3,888		169,882
Vivendi SA		659		14,431
Total France common stocks				517,607
Germany: 3.71%
Allianz SE¹		841		80,448
Fresenius Medical Care AG & Co. KGaA¹		2,893		196,574
Hamburger Hafen und Logistik AG		419		12,378
HeidelbergCement AG		370		15,702
Kabel Deutschland Holding AG*		288		14,617
Linde AG¹		1,245		185,224
Salzgitter AG¹		789		39,447
SAP AG¹		2,089		110,446
Suedzucker AG		517		16,494
Total Germany common stocks				671,330
Greece: 0.37%
Hellenic Telecommunications Organization SA¹		14,994		55,889
OPAP SA		1,190		10,520
Total Greece common stocks				66,409
Hong Kong: 0.19%
Hopewell Holdings Ltd.		6,000		15,343
Shangri-La Asia Ltd.		666		1,149
Swire Pacific Ltd., Class A		1,500		18,106
Total Hong Kong common stocks				34,598
Ireland: 0.46%
Accenture PLC, Class A¹		300		15,969
Experian PLC		1,448		19,688
Kerry Group PLC, Class A¹		1,275		46,675
Total Ireland common stocks				82,332
Israel: 0.15%
Israel Corp., Ltd.		17		10,673
NICE Systems Ltd.*		496		16,944
Total Israel common stocks				27,617
Italy: 1.11%
Atlantia SpA		1,273		20,381
Azimut Holding SpA¹		10,444		83,739
Enel SpA		6,249		25,428
Fiat SpA		1,663		7,641

UBS Market Neutral Multi-Strategy Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks—(Continued)
Italy—(Concluded)
Finmeccanica SpA¹		8,727	$	32,281
Intesa Sanpaolo SpA		7,355		12,318
Mediaset SpA		3,978		11,007
UniCredit SpA		860		7,147
Total Italy common stocks				199,942
Japan: 3.20%
AOKI Holdings, Inc.		2,500		40,795
Aozora Bank Ltd.		8,000		22,035
Asahi Glass Co., Ltd.		2,000		16,786
Asahi Group Holdings Ltd.		900		19,761
Bridgestone Corp.		800		18,137
Central Glass Co., Ltd.		4,000		19,332
Central Japan Railway Co.		3		25,335
Dainippon Sumitomo Pharma Co., Ltd.		2,000		22,788
Eisai Co., Ltd.		400		16,552
Fujitsu Ltd.		3,000		15,591
Gunma Bank Ltd.		3,000		16,487
Hachijuni Bank Ltd.		3,000		17,111
Hokuhoku Financial Group, Inc.		9,000		17,539
JTEKT Corp.		1,200		11,802
KDDI Corp.		3		19,293
Makino Milling Machine Co., Ltd.		2,000		12,316
Marubeni Corp.		3,000		18,280
Mitsubishi UFJ Financial Group, Inc.		3,800		16,144
Mizuho Financial Group, Inc.		11,820		15,971
Mori Seiki Co., Ltd.		1,300		11,586
Nippon Meat Packers, Inc.		1,000		12,420
Nishi-Nippon City Bank Ltd.		6,000		17,228
NTT Data Corp.		5		15,967
Oriental Land Co., Ltd.		200		21,125
Sapporo Holdings Ltd.		4,000		15,123
Sekisui Chemical Co., Ltd.		2,000		16,500
Sumitomo Rubber Industries Ltd.		1,500		18,007
Toho Co., Ltd.		1,000		17,825
Toyota Industries Corp.		500		13,609
Tsumura & Co.		500		14,746
Yamada Denki Co., Ltd.		230		15,658
Yamazaki Baking Co., Ltd.		2,000		26,270
Total Japan common stocks				578,119
Luxembourg: 0.34%
ArcelorMittal		2,761		50,492
Ternium SA ADR		600		11,034
Total Luxembourg common stocks				61,526
Macau: 0.11%
Sands China Ltd.*		6,800		19,218

	Shares		Value
Mexico: 0.10%
Fresnillo PLC		793	$	18,805
Netherlands: 1.03%
ASML Holding NV		491		20,637
Koninklijke Ahold NV		1,780		23,971
Koninklijke DSM NV¹		345		16,008
Koninklijke KPN NV		1,250		14,957
Koninklijke Philips Electronics NV		728		15,339
LyondellBasell Industries NV, Class A¹		400		12,996
Wolters Kluwer NV¹		4,775		82,534
Total Netherlands common stocks				186,442
Norway: 2.16%
Petroleum Geo-Services ASA*		2,601		28,463
Renewable Energy Corp. ASA*		165,000		91,592
Statoil ASA		734		18,838
Telenor ASA¹		15,123		248,053
Yara International ASA		114		4,575
Total Norway common stocks				391,521
Portugal: 0.50%
Portugal Telecom SGPS SA¹		15,597		89,830
Singapore: 0.45%
Golden Agri-Resources Ltd.		33,000		18,191
Jardine Cycle & Carriage Ltd.		1,000		37,100
Olam International Ltd.		8,000		13,137
UOL Group Ltd.		4,000		12,336
Total Singapore common stocks				80,764
Spain: 1.83%
Acciona SA¹		609		52,597
EDP Renovaveis SA*¹		3,319		20,310
Enagas SA¹		10,793		199,615
Fomento de Construcciones y Contratas SA		634		16,444
Gamesa Corp.Tecnologica SA		2,313		9,609
Gas Natural SDG SA		893		15,331
Repsol YPF SA		551		16,926
Total Spain common stocks				330,832
Sweden: 0.71%
Getinge AB, Class B		694		17,587
Hennes & Mauritz AB, Class B		964		30,999
Lundin Petroleum AB*		1,426		35,059
Scania AB, Class B		1,753		25,982
Swedish Match AB		543		19,275
Total Sweden common stocks				128,902

UBS Market Neutral Multi-Strategy Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks—(Continued)
Switzerland: 1.84%
Actelion Ltd.*		374	$	12,841
Aryzta AG		1,987		96,039
Ferrexpo PLC		2,369		9,889
Kuehne & Nagel International AG		120		13,478
Meyer Burger Technology AG*		407		6,370
Nestle SA		285		16,385
Novartis AG¹		1,910		109,195
Roche Holding AG (Non-voting)		253		42,880
Straumann Holding AG¹		153		26,404
Total Switzerland common stocks				333,481
United Kingdom: 8.44%
Aberdeen Asset Management PLC¹		31,990		105,323
BAE Systems PLC¹		42,620		188,704
BG Group PLC¹		1,688		36,084
BP PLC		1,412		10,098
British Land Co., PLC		32		230
Croda International PLC		596		16,698
Drax Group PLC		2,259		19,120
Ensco PLC ADR¹		1,400		65,688
Home Retail Group PLC		6,699		8,677
Imperial Tobacco Group PLC¹		6,990		264,331
Inmarsat PLC		7,468		46,936
Investec PLC		8,920		46,961
Lonmin PLC		3,166		48,185
Premier Oil PLC*		2,570		14,488
Reed Elsevier PLC¹		4,702		37,898
Sage Group PLC¹		19,374		88,518
Smith & Nephew PLC		1,734		16,844
SSE PLC¹		7,283		146,019
Tesco PLC¹		16,848		105,562
Tullow Oil PLC¹		600		13,064
Vedanta Resources PLC¹		5,787		91,220
Xstrata PLC¹		10,264		155,893
Total United Kingdom common stocks				1,526,541
United States: 37.52%
Acorda Therapeutics, Inc.*¹		2,300		54,832
Adobe Systems, Inc.*¹		4,300		121,561
Aeropostale, Inc.*¹		1,000		15,250
Aflac, Inc.¹		800		34,608
Agilent Technologies, Inc.*¹		400		13,972
Alaska Air Group, Inc.*¹		300		22,527
Alexion Pharmaceuticals, Inc.*¹		1,800		128,700
Allergan, Inc.¹		400		35,096
Alliant Techsystems, Inc.¹		300		17,148
Amazon.com, Inc.*¹		575		99,533
American Campus Communities, Inc.		700		29,372
Amgen, Inc.¹		300		19,263
Amylin Pharmaceuticals, Inc.*¹		3,400		38,692

	Shares		Value
Analog Devices, Inc.¹		400	$	14,312
Angie's List, Inc.*		2,200		35,420
ANN, Inc.*¹		600		14,868
Annaly Capital Management, Inc.¹		1,100		17,556
Apollo Group, Inc., Class A*¹		1,300		70,031
Apple, Inc.*¹		230		93,150
Arch Coal, Inc.¹		1,000		14,510
Ashland, Inc.¹		300		17,148
Atlas Air Worldwide Holdings, Inc.*¹		300		11,529
Autodesk, Inc.*¹		1,400		42,462
Baxter International, Inc.¹		700		34,636
Biogen Idec, Inc.*¹		150		16,508
Bio-Rad Laboratories, Inc., Class A*¹		1,100		105,644
Boise, Inc.¹		2,300		16,376
Brinker International, Inc.¹		700		18,732
Broadcom Corp., Class A*¹		2,500		73,400
C.H. Robinson Worldwide, Inc.¹		300		20,934
CA, Inc.¹		800		16,172
Capital One Financial Corp.¹		300		12,687
Career Education Corp.*¹		900		7,173
Carnival Corp.¹		1,300		42,432
CBL & Associates Properties, Inc.¹		1,000		15,700
Celanese Corp., Series A¹		2,300		101,821
CF Industries Holdings, Inc.¹		138		20,007
Citigroup, Inc.¹		640		16,838
Cliffs Natural Resources, Inc.¹		260		16,211
CME Group, Inc.		100		24,367
Coach, Inc.¹		1,300		79,352
Colgate-Palmolive Co.¹		1,200		110,868
Comcast Corp., Class A¹		1,400		33,194
Comerica, Inc.¹		500		12,900
Commercial Metals Co.¹		1,200		16,596
Complete Production Services, Inc.*¹		500		16,780
Compuware Corp.*		7,163		59,596
Cousins Properties, Inc.		14,120		90,509
Cubist Pharmaceuticals, Inc.*¹		500		19,810
Dell, Inc.*¹		1,000		14,630
Delta Air Lines, Inc.*¹		1,900		15,371
Diamond Offshore Drilling, Inc.¹		300		16,578
Digital Domain Media Group, Inc.*		7,160		43,533
Discover Financial Services¹		700		16,800
Dover Corp.¹		1,900		110,295
Dow Chemical Co.¹		2,800		80,528
Dun & Bradstreet Corp.¹		300		22,449
Eastman Chemical Co.¹		400		15,624
Eastman Kodak Co.*¹		4,900		3,183
EchoStar Corp., Class A*¹		500		10,470
Edison International¹		3,500		144,900
EOG Resources, Inc.¹		1,230		121,167
EQT Corp.		1,300		71,227
Equifax, Inc.¹		500		19,370
Expeditors International Washington, Inc.¹		400		16,384

UBS Market Neutral Multi-Strategy Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks—(Continued)
United States—(Continued)
Federal Realty Investment Trust¹		200	$	18,150
FedEx Corp.¹		1,900		158,669
Fidelity National Information Services, Inc.¹		2,700		71,793
FirstEnergy Corp.¹		2,800		124,040
Flextronics International Ltd.*¹		2,800		15,848
GameStop Corp., Class A*¹		4,100		98,933
General Dynamics Corp.¹		1,900		126,179
General Motors Co.*¹		2,000		40,540
Georgia Gulf Corp.*¹		700		13,643
Gilead Sciences, Inc.*		1,500		61,395
Hasbro, Inc.¹		400		12,756
HCA Holdings, Inc.*¹		2,100		46,263
Helix Energy Solutions Group, Inc.*¹		1,000		15,800
Hertz Global Holdings, Inc.*¹		7,100		83,212
Hess Corp.¹		1,100		62,480
Hewlett-Packard Co.¹		3,400		87,584
HollyFrontier Corp.¹		976		22,838
Hudson City Bancorp, Inc.¹		2,200		13,750
Illinois Tool Works, Inc.¹		3,600		168,156
Imperva, Inc.*		1,400		48,734
International Business Machines Corp.¹		135		24,824
Interpublic Group of Cos., Inc.¹		2,400		23,352
Intersil Corp., Class A¹		9,200		96,048
Intuit, Inc.¹		400		21,036
InvenSense, Inc.*		3,630		36,155
Invesco Ltd.		900		18,081
ITT Educational Services, Inc.*¹		300		17,067
JPMorgan Chase & Co.¹		500		16,625
KBR, Inc.¹		400		11,148
Kimco Realty Corp.¹		1,000		16,240
Kinder Morgan, Inc.¹		600		19,302
KKR & Co. LP¹		1,100		14,113
KLA-Tencor Corp.¹		500		24,125
Kohl's Corp.¹		900		44,415
Kraft Foods, Inc., Class A¹		800		29,888
Kroger Co.¹		4,400		106,568
Landstar System, Inc.¹		300		14,376
Lear Corp.¹		400		15,920
Lender Processing Services, Inc.¹		900		13,563
Liberty Property Trust¹		500		15,440
Lowe's Cos., Inc.¹		2,600		65,988
Mack-Cali Realty Corp.¹		500		13,345
Macy's, Inc.¹		600		19,308
Magellan Health Services, Inc.*¹		300		14,841
Manning & Napier, Inc.*		2,880		35,971
Marathon Oil Corp.¹		400		11,708
Marathon Petroleum Corp.¹		200		6,658
Marvell Technology Group Ltd.*¹		3,200		44,320
Masco Corp.¹		500		5,240

	Shares		Value
Mattress Firm Holding Corp.*		1,680	$	38,959
Maxim Integrated Products, Inc.¹		700		18,228
Medtronic, Inc.¹		1,400		53,550
MEMC Electronic Materials, Inc.*		15,800		62,252
Merck & Co., Inc.¹		1,300		49,010
MetLife, Inc.		400		12,472
Microsoft Corp.¹		700		18,172
Molson Coors Brewing Co., Class B¹		900		39,186
Monster Worldwide, Inc.*		7,600		60,268
Morgan Stanley¹		1,300		19,669
Motorola Solutions, Inc.¹		300		13,887
NewLink Genetics Corp.*		5,650		39,776
NextEra Energy, Inc.¹		2,400		146,112
Noble Corp.*¹		2,300		69,506
Norfolk Southern Corp.¹		300		21,858
Novellus Systems, Inc.*¹		500		20,645
NRG Energy, Inc.*¹		700		12,684
PACCAR, Inc.¹		1,400		52,458
PepsiCo, Inc.¹		2,050		136,018
Pharmasset, Inc.*¹		700		89,740
Polaris Industries, Inc.¹		300		16,794
Power-One, Inc.*¹		2,200		8,602
Principal Financial Group, Inc.¹		600		14,760
QLogic Corp.*¹		1,100		16,500
Radian Group, Inc.¹		4,500		10,530
RadioShack Corp.¹		1,400		13,594
Rayonier, Inc.¹		350		15,620
SEI Investments Co.¹		800		13,880
ServiceSource International, Inc.*¹		3,500		54,915
Skyworks Solutions, Inc.*		2,700		43,794
SL Green Realty Corp.¹		200		13,328
Smithfield Foods, Inc.*¹		800		19,424
Sotheby's¹		400		11,412
Stone Energy Corp.*¹		600		15,828
Symantec Corp.*¹		2,900		45,385
Tellabs, Inc.		15,600		63,024
Teradyne, Inc.*¹		1,200		16,356
Tesoro Corp.*¹		800		18,688
Textron, Inc.¹		800		14,792
Time Warner, Inc.¹		1,600		57,824
Ultra Petroleum Corp.*¹		4,100		121,483
UnitedHealth Group, Inc.¹		900		45,612
US Bancorp¹		1,200		32,460
Valero Energy Corp.¹		700		14,735
Veeco Instruments, Inc.*¹		400		8,320
Ventas, Inc.¹		300		16,539
Viacom, Inc., Class B¹		1,600		72,656
Visa, Inc., Class A¹		500		50,765
Vulcan Materials Co.¹		700		27,545
W&T Offshore, Inc.¹		700		14,847
Waters Corp.*¹		200		14,810
Weingarten Realty Investors¹		700		15,274

UBS Market Neutral Multi-Strategy Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares			Value
Common stocks—(Concluded)
United States—(Concluded)
WellCare Health Plans, Inc.*¹		300		$	15,750
Wells Fargo & Co.¹		2,000			55,120
Zeltiq Aesthetics, Inc.*		3,000			34,080
Zimmer Holdings, Inc.*¹		300			16,026
Total United States common stocks					6,785,242
Total common stocks (cost $14,137,482)					13,112,093
Preferred stock: 0.21%
Germany: 0.21%
Volkswagen AG, Preference shares¹(cost $44,510)		252			37,752
Investment company: 1.27%
iShares II PLC (cost $233,195)		11,381			229,197
	Number of rights
Rights: 0.00%²
France: 0.00%²
Sanofi-Aventis SA, expires 12/31/20*¹(cost $1,177)		500			600
	Shares
Short-term investment: 45.19%
Investment company: 45.19%
UBS Cash Management Prime Relationship Fund³(cost $8,171,641)		8,171,641			8,171,641
Total investments before investments sold short: 119.18% (cost $22,588,005)					21,551,283
Investments sold short: (74.34)%
Common stocks: (74.27)%
Australia: (0.97)%
ASX Ltd.		(551	)		(17,234	)
BlueScope Steel Ltd.		(56,473	)		(23,393	)
Caltex Australia Ltd.		(556	)		(6,693	)
CSR Ltd.		(6,240	)		(12,509	)
Dexus Property Group		(18,627	)		(15,813	)
DUET Group		(4,403	)		(7,904	)
Lynas Corp. Ltd.		(9,103	)		(9,730	)
Newcrest Mining Ltd.		(485	)		(14,683	)
Origin Energy Ltd.		(1,106	)		(15,090	)
Paladin Energy Ltd.		(7,259	)		(10,172	)
Ramsay Health Care Ltd.		(935	)		(18,438	)

	Shares			Value
Tatts Group Ltd.		(2,420	)	$	(6,039	)
Transurban Group		(3,195	)		(18,365	)
Total Australia common stocks					(176,063	)
Austria: (0.58)%
Erste Group Bank AG		(935	)		(16,472	)
Verbund - Oesterreichische Elektrizitaetswirtschafts AG, Class A		(3,300	)		(88,687	)
Total Austria common stocks					(105,159	)
Belgium: (0.32)%
Colruyt SA		(1,519	)		(57,504	)
Bermuda: (0.13)%
Frontline Ltd.		(1,301	)		(5,542	)
Seadrill Ltd.		(513	)		(17,155	)
Total Bermuda common stocks					(22,697	)
Canada: (0.94)%
BCE, Inc.		(400	)		(16,675	)
Crescent Point Energy Corp.		(400	)		(17,630	)
Fairfax Financial Holdings Ltd.		(50	)		(21,448	)
Fortis, Inc.		(500	)		(16,378	)
George Weston Ltd.		(100	)		(6,684	)
Ivanhoe Mines Ltd.		(700	)		(12,430	)
Onex Corp.		(400	)		(13,028	)
Potash Corp. of Saskatchewan, Inc.		(340	)		(14,054	)
Provident Energy Ltd.		(2,100	)		(20,304	)
Ritchie Bros Auctioneers, Inc.		(700	)		(15,391	)
Uranium One, Inc.		(7,100	)		(15,054	)
Total Canada common stocks					(169,076	)
China: 0.00%²
China CITIC Bank, H Shares		(1,200	)		(675	)
Denmark: (0.93)%
H Lundbeck A/S		(3,293	)		(61,923	)
Novo Nordisk A/S, Class B		(453	)		(52,057	)
William Demant Holding A/S		(659	)		(54,801	)
Total Denmark common stocks					(168,781	)
Finland: (1.17)%
Fortum Oyj		(1,807	)		(38,565	)
Metso Oyj		(2,949	)		(109,350	)
Nokia Oyj		(10,126	)		(49,434	)
Sampo Oyj, Class A		(606	)		(15,036	)
Total Finland common stocks					(212,385	)
France: (5.00)%
Air France-KLM		(1,184	)		(6,088	)
Air Liquide SA		(77	)		(9,526	)
Alcatel-Lucent		(11,590	)		(18,105	)

UBS Market Neutral Multi-Strategy Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares			Value
Investments sold short—(Continued)
Common stocks—(Continued)
France—(Concluded)
Alstom SA		(315	)	$	(9,552	)
Atos		(171	)		(7,505	)
Carrefour SA		(476	)		(10,852	)
Cie de Saint-Gobain		(1,535	)		(58,935	)
Cie Generale des Etablissements Michelin, Class B		(117	)		(6,916	)
Cie Generale d'Optique Essilor International SA		(333	)		(23,510	)
Danone		(2,533	)		(159,229	)
Dassault Systemes SA		(1,597	)		(128,004	)
Edenred		(606	)		(14,918	)
Iliad SA		(199	)		(24,558	)
Legrand SA		(3,070	)		(98,738	)
Pernod-Ricard SA		(2,001	)		(185,585	)
Publicis Groupe SA		(1,742	)		(80,139	)
Renault SA		(823	)		(28,546	)
Unibail-Rodamco SE		(129	)		(23,191	)
Vallourec SA		(165	)		(10,712	)
Total France common stocks					(904,609	)
Germany: (3.08)%
Axel Springer AG		(370	)		(15,901	)
Commerzbank AG		(4,484	)		(7,562	)
Deutsche Bank AG		(926	)		(35,277	)
Deutsche Lufthansa AG		(879	)		(10,449	)
GEA Group AG		(3,910	)		(110,572	)
Hochtief AG		(238	)		(13,768	)
K&S AG NPV		(780	)		(35,252	)
Merck KGaA		(1,973	)		(196,701	)
RWE AG		(1,716	)		(60,298	)
Siemens AG		(262	)		(25,073	)
ThyssenKrupp AG		(1,055	)		(24,202	)
United Internet AG		(1,177	)		(21,022	)
Total Germany common stocks					(556,077	)
Hong Kong: (0.07)%
Orient Overseas International Ltd.		(2,000	)		(11,678	)
Shangri-La Asia Ltd.		(666	)		(1,149	)
Total Hong Kong common stocks					(12,827	)
Ireland: (0.34)%
James Hardie Industries SE CDI		(3,004	)		(20,954	)
Seagate Technology PLC		(1,821	)		(29,865	)
Warner Chilcott PLC, Class A		(700	)		(10,591	)
Total Ireland common stocks					(61,410	)
Italy: (2.48)%
Assicurazioni Generali SpA		(5,908	)		(88,928	)
Banco Popolare SC		(31,434	)		(40,684	)

	Shares			Value
Luxottica Group SpA		(1,638	)	$	(46,004	)
Pirelli & Co. SpA NPV		(1,690	)		(14,228	)
Snam Rete Gas SpA		(23,488	)		(103,540	)
Terna-Rete Elettrica Nazionale SpA		(41,926	)		(141,300	)
Unione di Banche Italiane SCPA		(3,432	)		(14,063	)
Total Italy common stocks					(448,747	)
Japan: (2.77)%
Acom Co., Ltd.		(1,070	)		(19,156	)
All Nippon Airways Co., Ltd.		(5,000	)		(13,966	)
Benesse Holdings, Inc.		(300	)		(14,519	)
Chiyoda Corp.		(2,000	)		(20,346	)
Chugoku Electric Power Co., Inc.		(1,000	)		(17,526	)
Cosmo Oil Co., Ltd.		(6,000	)		(16,760	)
Daito Trust Construction Co., Ltd.		(200	)		(17,150	)
Denki Kagaku Kogyo KK		(3,000	)		(11,108	)
Denso Corp.		(400	)		(11,048	)
Electric Power Development Co., Ltd.		(700	)		(18,616	)
Hitachi Chemical Co., Ltd.		(900	)		(15,856	)
JSR Corp.		(1,000	)		(18,449	)
Kaneka Corp.		(3,000	)		(15,980	)
Kawasaki Kisen Kaisha Ltd.		(5,000	)		(9,030	)
Mazda Motor Corp.		(2,000	)		(3,534	)
McDonald's Holdings Co. Japan Ltd.		(700	)		(18,889	)
Mitsubishi Gas Chemical Co., Inc.		(3,000	)		(16,643	)
NEC Corp.		(7,000	)		(14,187	)
Nippon Yusen KK		(4,000	)		(10,238	)
Nissin Foods Holdings Co., Ltd.		(500	)		(19,586	)
Nitto Denko Corp.		(300	)		(10,734	)
Odakyu Electric Railway Co., Ltd.		(3,000	)		(28,998	)
Olympus Corp.		(900	)		(11,833	)
Senshu Ikeda Holdings, Inc.		(11,800	)		(17,324	)
Square Enix Holdings Co., Ltd.		(1,000	)		(19,631	)
Sumitomo Realty & Development Co., Ltd.		(1,000	)		(17,513	)
Tobu Railway Co., Ltd.		(4,000	)		(20,424	)
Unicharm Corp.		(400	)		(19,722	)
Yakult Honsha Co., Ltd.		(600	)		(18,903	)
Yamaha Corp.		(1,700	)		(15,593	)
Yamato Holdings Co., Ltd.		(1,100	)		(18,536	)
Total Japan common stocks					(501,798	)
Jersey (Channel Islands): (0.09)%
Heritage Oil PLC		(5,354	)		(16,006	)
Netherlands: (1.50)%
Koninklijke KPN NV		(8,864	)		(106,061	)
PostNL NV		(2,256	)		(7,183	)
Unilever NV CVA		(4,586	)		(157,704	)
Total Netherlands common stocks					(270,948	)

UBS Market Neutral Multi-Strategy Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares			Value
Investments sold short—(Continued)
Common stocks—(Continued)
Norway: (1.53)%
Renewable Energy Corp. ASA		(11,462	)	$	(6,363	)
Subsea 7 SA		(4,708	)		(87,377	)
Telenor ASA		(1,107	)		(18,157	)
Yara International ASA		(4,113	)		(165,047	)
Total Norway common stocks					(276,944	)
Portugal: (0.09)%
Jeronimo Martins, SGPS, SA		(965	)		(15,974	)
Singapore: (0.51)%
Ascendas Real Estate Investment Trust		(10,000	)		(14,109	)
CapitaMall Trust		(11,000	)		(14,417	)
DBS Group Holdings Ltd.		(2,000	)		(17,763	)
Global Logistic Properties Ltd.		(10,000	)		(13,531	)
Keppel Land Ltd.		(6,000	)		(10,269	)
Singapore Technologies Engineering Ltd.		(3,000	)		(6,222	)
Wilmar International Ltd.		(4,000	)		(15,420	)
Total Singapore common stocks					(91,731	)
Spain: (1.10)%
Acerinox SA		(3,992	)		(51,201	)
Distribuidora Internacional de Alimentacion SA		(546	)		(2,470	)
EDP Renovaveis SA		(2,882	)		(17,635	)
Iberdrola SA		(1,332	)		(8,342	)
Indra Sistemas SA		(3,339	)		(42,511	)
Telefonica SA		(4,462	)		(77,298	)
Total Spain common stocks					(199,457	)
Sweden: (0.82)%
Atlas Copco AB, Class A		(1,038	)		(22,322	)
Boliden AB		(929	)		(13,566	)
Hennes & Mauritz AB, Class B		(518	)		(16,657	)
Holmen AB, Class B		(574	)		(16,489	)
Modern Times Group AB, Class B		(304	)		(14,524	)
Skandinaviska Enskilda Banken AB, Class A		(1,829	)		(10,655	)
Skanska AB, Class B		(1,051	)		(17,410	)
Svenska Handelsbanken AB, Class A		(596	)		(15,675	)
Volvo AB, Class B		(1,845	)		(20,187	)
Total Sweden common stocks					(147,485	)
Switzerland: (3.41)%
Barry Callebaut AG		(116	)		(114,296	)
Credit Suisse Group AG		(487	)		(11,443	)
EFG International AG		(1,671	)		(12,649	)
Geberit AG		(689	)		(132,768	)
Kuehne & Nagel International AG		(92	)		(10,333	)
Nestle SA		(978	)		(56,225	)

	Shares			Value
OC Oerlikon Corp. AG		(2,477	)	$	(13,264	)
Roche Holding AG (Non-voting)		(105	)		(17,796	)
Swiss Life Holding AG		(933	)		(85,821	)
Swiss Re Ltd.		(319	)		(16,257	)
Swisscom AG		(16	)		(6,062	)
Tyco International Ltd.		(3,000	)		(140,130	)
Total Switzerland common stocks					(617,044	)
United Kingdom: (9.19)%
3i Group PLC		(4,312	)		(12,121	)
AMEC PLC		(847	)		(11,937	)
Antofagasta PLC		(8,021	)		(151,348	)
ARM Holdings PLC		(5,692	)		(52,331	)
AstraZeneca PLC		(1,880	)		(86,859	)
BHP Billiton PLC		(4,069	)		(118,642	)
Booker Group PLC		(40,881	)		(46,981	)
British Land Co., PLC		(2,006	)		(14,408	)
British Sky Broadcasting Group PLC		(1,366	)		(15,539	)
BT Group PLC, Class A		(67,861	)		(201,186	)
Bumi PLC		(3,252	)		(44,443	)
Burberry Group PLC		(1,233	)		(22,691	)
Cable & Wireless Worldwide PLC		(360,392	)		(90,949	)
Capital Shopping Centres Group PLC		(2,970	)		(14,405	)
Drax Group PLC		(6,744	)		(57,080	)
Evraz PLC		(8,221	)		(47,839	)
Invensys PLC		(3,811	)		(12,488	)
ITV PLC		(39,996	)		(42,330	)
Kazakhmys		(3,741	)		(53,857	)
Lloyds Banking Group PLC		(26,579	)		(10,693	)
Lonmin PLC		(3,632	)		(55,277	)
National Grid PLC		(1,047	)		(10,162	)
Polymetal International PLC		(2,965	)		(50,375	)
Rolls-Royce Holdings PLC, Class C		(486,519	)		(756	)
RSA Insurance Group PLC		(24,064	)		(39,315	)
Shire PLC		(567	)		(19,751	)
Smith & Nephew PLC		(4,685	)		(45,510	)
Standard Life PLC		(37,941	)		(121,557	)
Tate & Lyle PLC		(9,700	)		(106,127	)
TUI Travel PLC		(5,142	)		(13,240	)
WM Morrison Supermarkets PLC		(18,020	)		(91,287	)
Total United Kingdom common stocks					(1,661,484	)
United States: (37.25)%
Abbott Laboratories		(900	)		(50,607	)
Abercrombie & Fitch Co., Class A		(800	)		(39,072	)
Acme Packet, Inc.		(300	)		(9,273	)
Actuant Corp., Class A		(700	)		(15,883	)
AGCO Corp.		(700	)		(30,079	)
AGL Resources, Inc.		(1,570	)		(66,348	)
AK Steel Holding Corp.		(1,300	)		(10,738	)
Alliant Energy Corp.		(2,000	)		(88,220	)
Amazon.com, Inc.		(100	)		(17,310	)

UBS Market Neutral Multi-Strategy Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares			Value
Investments sold short—(Continued)
Common stocks—(Continued)
United States—(Continued)
American Express Co.		(400	)	$	(18,868	)
American Water Works Co., Inc.		(2,200	)		(70,092	)
Amylin Pharmaceuticals, Inc.		(1,500	)		(17,070	)
AO Smith Corp.		(400	)		(16,048	)
Aqua America, Inc.		(2,200	)		(48,510	)
Associated Banc-Corp.		(2,100	)		(23,457	)
AvalonBay Communities, Inc.		(100	)		(13,060	)
BB&T Corp.		(900	)		(22,653	)
Berkshire Hathaway, Inc., Class B		(300	)		(22,890	)
BioMarin Pharmaceutical, Inc.		(700	)		(24,066	)
Bio-Reference Labs, Inc.		(1,800	)		(29,286	)
BMC Software, Inc.		(2,400	)		(78,672	)
Booz Allen Hamilton Holding Corp.		(220	)		(3,795	)
BorgWarner, Inc.		(960	)		(61,190	)
Bristol-Myers Squibb Co.		(1,400	)		(49,336	)
Brown-Forman Corp., Class B		(1,000	)		(80,510	)
Bruker Corp.		(900	)		(11,178	)
Cadence Design Systems, Inc.		(4,000	)		(41,600	)
Calpine Corp.		(2,200	)		(35,926	)
Cardinal Health, Inc.		(1,100	)		(44,671	)
CarMax, Inc.		(800	)		(24,384	)
Caterpillar, Inc.		(1,000	)		(90,600	)
Charles Schwab Corp.		(3,000	)		(33,780	)
Chesapeake Energy Corp.		(2,500	)		(55,725	)
Chevron Corp.		(300	)		(31,920	)
Choice Hotels International, Inc.		(600	)		(22,830	)
Church & Dwight Co., Inc.		(2,000	)		(91,520	)
Ciena Corp.		(1,000	)		(12,100	)
CIT Group, Inc.		(400	)		(13,948	)
CLARCOR, Inc.		(1,750	)		(87,483	)
Clean Energy Fuels Corp.		(600	)		(7,476	)
Cobalt International Energy, Inc.		(1,300	)		(20,176	)
Cognizant Technology Solutions Corp., Class A		(1,800	)		(115,758	)
Compuware Corp.		(7,500	)		(62,400	)
ConocoPhillips		(2,000	)		(145,740	)
CONSOL Energy, Inc.		(700	)		(25,690	)
Consolidated Edison, Inc.		(2,100	)		(130,263	)
CoreLogic, Inc.		(1,000	)		(12,930	)
Cree, Inc.		(500	)		(11,020	)
CSX Corp.		(3,200	)		(67,392	)
CVR Energy, Inc.		(600	)		(11,238	)
Dell, Inc.		(6,800	)		(99,484	)
DISH Network Corp., Class A		(600	)		(17,088	)
Dollar General Corp.		(1,500	)		(61,710	)
Dollar Tree, Inc.		(740	)		(61,502	)
Douglas Emmett, Inc.		(900	)		(16,416	)
DreamWorks Animation SKG, Inc., Class A		(900	)		(14,936	)
DuPont Fabros Technology, Inc.		(700	)		(16,954	)

	Shares			Value
eBay, Inc.		(900	)	$	(27,297	)
Edison International		(400	)		(16,560	)
EI Du Pont de Nemours & Co.		(1,500	)		(68,670	)
El Paso Corp.		(900	)		(23,913	)
Eli Lilly & Co.		(4,000	)		(166,240	)
EnerSys		(4,720	)		(122,578	)
Equinix, Inc.		(200	)		(20,280	)
Equity Residential		(300	)		(17,109	)
Expeditors International Washington, Inc.		(2,300	)		(94,208	)
Fastenal Co.		(1,800	)		(78,498	)
First American Financial Corp.		(1,100	)		(13,937	)
First Niagara Financial Group, Inc.		(1,400	)		(12,082	)
Fiserv, Inc.		(800	)		(46,992	)
Flowers Foods, Inc.		(4,100	)		(77,818	)
Forest Laboratories, Inc.		(400	)		(12,104	)
Gap, Inc.		(1,400	)		(25,970	)
General Growth Properties, Inc.		(1,062	)		(15,951	)
Genuine Parts Co.		(700	)		(42,840	)
GeoEye, Inc.		(400	)		(8,888	)
GrafTech International Ltd.		(900	)		(12,285	)
Grand Canyon Education, Inc.		(467	)		(7,453	)
Green Mountain Coffee Roasters, Inc.		(200	)		(8,970	)
Greenhill & Co., Inc.		(273	)		(9,929	)
Hertz Global Holdings, Inc.		(1,100	)		(12,892	)
Higher One Holdings, Inc.		(6,200	)		(114,328	)
HMS Holdings Corp.		(2,760	)		(88,265	)
Hormel Foods Corp.		(1,400	)		(41,006	)
Hospira, Inc.		(100	)		(3,037	)
HSN, Inc.		(2,340	)		(84,848	)
Human Genome Sciences, Inc.		(800	)		(5,912	)
Humana, Inc.		(400	)		(35,044	)
Hyatt Hotels Corp., Class A		(800	)		(30,112	)
IDEXX Laboratories, Inc.		(550	)		(42,328	)
Illumina, Inc.		(300	)		(9,144	)
Integrys Energy Group, Inc.		(2,000	)		(108,360	)
Intel Corp.		(3,300	)		(80,025	)
Intrepid Potash, Inc.		(500	)		(11,315	)
Intuitive Surgical, Inc.		(200	)		(92,602	)
Invesco Ltd.		(800	)		(16,072	)
Jabil Circuit, Inc.		(1,300	)		(25,558	)
JC Penney Co., Inc.		(1,400	)		(49,210	)
KB Home		(1,600	)		(10,752	)
KLA-Tencor Corp.		(600	)		(28,950	)
Kraft Foods, Inc., Class A		(500	)		(18,680	)
Laboratory Corp. of America Holdings		(600	)		(51,582	)
Lamar Advertising Co., Class A		(2,500	)		(68,750	)
Lennar Corp., Class A		(1,000	)		(19,650	)
Lennox International, Inc.		(400	)		(13,500	)
LKQ Corp.		(300	)		(9,024	)
LSI Corp.		(13,000	)		(77,350	)
M&T Bank Corp.		(400	)		(30,536	)
Manitowoc Co., Inc.		(1,060	)		(9,741	)
McDonald's Corp.		(800	)		(80,264	)

UBS Market Neutral Multi-Strategy Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares			Value
Investments sold short—(Concluded)
Common stocks—(Concluded)
United States—(Concluded)
McMoRan Exploration Co.		(1,000	)	$	(14,550	)
Mead Johnson Nutrition Co.		(300	)		(20,619	)
MEMC Electronic Materials, Inc.		(2,200	)		(8,668	)
MetroPCS Communications, Inc.		(1,000	)		(8,680	)
Mettler-Toledo International, Inc.		(200	)		(29,542	)
MGIC Investment Corp.		(3,100	)		(11,563	)
MGM Resorts International		(500	)		(5,215	)
Microchip Technology, Inc.		(700	)		(25,641	)
Molycorp, Inc.		(300	)		(7,194	)
Morgan Stanley		(639	)		(9,668	)
MSCI, Inc., Class A		(400	)		(13,172	)
Navistar International Corp.		(900	)		(34,092	)
Nektar Therapeutics		(2,500	)		(13,988	)
Newell Rubbermaid, Inc.		(1,100	)		(17,765	)
Nielsen Holdings NV		(600	)		(17,814	)
NII Holdings, Inc.		(400	)		(8,520	)
Nordstrom, Inc.		(600	)		(29,826	)
Northern Trust Corp.		(600	)		(23,796	)
Nuance Communications, Inc.		(900	)		(22,644	)
Occidental Petroleum Corp.		(600	)		(56,220	)
Office Depot, Inc.		(4,100	)		(8,815	)
Old Republic International Corp.		(1,600	)		(14,832	)
Olin Corp.		(800	)		(15,720	)
Omnicare, Inc.		(600	)		(20,670	)
Owens Corning		(400	)		(11,488	)
Parexel International Corp.		(800	)		(16,592	)
PepsiCo, Inc.		(300	)		(19,905	)
PerkinElmer, Inc.		(1,900	)		(38,000	)
Perrigo Co.		(820	)		(79,786	)
PG&E Corp.		(100	)		(4,122	)
Pioneer Natural Resources Co.		(700	)		(62,636	)
PNC Financial Services Group, Inc.		(700	)		(40,369	)
Polypore International, Inc.		(300	)		(13,197	)
Praxair, Inc.		(600	)		(64,140	)
PulteGroup, Inc.		(2,100	)		(13,251	)
Questar Corp.		(2,400	)		(47,664	)
Range Resources Corp.		(300	)		(18,582	)
Red Hat, Inc.		(1,200	)		(49,548	)
Rockwell Automation, Inc.		(1,200	)		(88,044	)
Salesforce.com, Inc.		(150	)		(15,219	)
Sanderson Farms, Inc.		(300	)		(15,039	)
SanDisk Corp.		(900	)		(44,289	)
SandRidge Energy, Inc.		(1,600	)		(13,056	)
Sara Lee Corp.		(2,200	)		(41,624	)
Schlumberger Ltd.		(700	)		(47,817	)
Schweitzer-Mauduit International, Inc.		(300	)		(19,938	)
Sirius XM Radio, Inc.		(8,600	)		(15,652	)
Skechers U.S.A., Inc., Class A		(1,200	)		(14,544	)
SLM Corp.		(1,000	)		(13,400	)

	Shares			Value
Southern Co.		(700	)	$	(32,403	)
Starwood Hotels & Resorts Worldwide, Inc.		(1,500	)		(71,955	)
T. Rowe Price Group, Inc.		(400	)		(22,780	)
TCF Financial Corp.		(2,100	)		(21,672	)
Tellabs, Inc.		(5,900	)		(23,836	)
Temple-Inland, Inc.		(500	)		(15,855	)
Terex Corp.		(600	)		(8,106	)
Thermo Fisher Scientific, Inc.		(1,200	)		(53,964	)
TJX Cos., Inc.		(1,000	)		(64,550	)
Toyota Motor Corp. ADR		(300	)		(19,839	)
VeriSign, Inc.		(500	)		(17,860	)
Verisk Analytics, Inc., Class A		(500	)		(20,065	)
Vertex Pharmaceuticals, Inc.		(300	)		(9,963	)
Viasat, Inc.		(400	)		(18,448	)
Vulcan Materials Co.		(400	)		(15,740	)
Waste Management, Inc.		(400	)		(13,084	)
Weyerhaeuser Co.		(800	)		(14,936	)
Whole Foods Market, Inc.		(1,500	)		(104,370	)
Williams-Sonoma, Inc.		(1,100	)		(42,350	)
World Fuel Services Corp.		(2,050	)		(86,059	)
WW Grainger, Inc.		(900	)		(168,471	)
Zions Bancorporation		(1,300	)		(21,164	)
Zoll Medical Corp.		(300	)		(18,954	)
Total United States common stocks					(6,735,820	)
Total common stocks (proceeds $14,487,231)					(13,430,701	)
Preferred stock: (0.07)%
Germany: (0.07)%
Porsche Automobil Holding SE, Preference shares (proceeds $19,241).		(243	)		(13,005	)
Total investments sold short (proceeds $14,506,472)					(13,443,706	)
Total investments, net of investments sold short: 44.84%					8,107,577
Cash and other assets, less liabilities: 55.16%					9,975,403
Net assets: 100.00%				$	18,082,980

UBS Market Neutral Multi-Strategy Fund

Portfolio of investments

December 31, 2011 (unaudited)

Notes to portfolio of investments

Aggregate cost for federal income tax purposes, before investments sold short, was substantially the same as for book purposes; and net unrealized depreciation consisted of:

Gross unrealized appreciation	$	753,198
Gross unrealized depreciation		(1,789,920	)
Net unrealized depreciation of investments	$	(1,036,722	)

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 71.

* Non-income producing security.

¹ All or a portion of these securities have been designated as collateral for open short positions.

² Amount represents less than 0.005%.

³ The table below details the Fund's investments in a fund that is advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Fund.

Security description				Value 06/30/11				Purchases during the six months ended 12/31/11				Sales during the six months ended 12/31/11				Value 12/31/11				Income earned from affiliate for the six months ended 12/31/11
UBS Cash Management Prime Relationship Fund				$	9,830,068			$	13,542,979			$	15,201,406			$	8,171,641			$	5,151

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation/ (depreciation)
JPMorgan Chase Bank	CAD	295,000	USD	289,112	03/05/12	$	(55	)
JPMorgan Chase Bank	EUR	520,000	USD	692,471	03/05/12		19,120
JPMorgan Chase Bank	GBP	450,000	USD	701,399	03/05/12		2,957
JPMorgan Chase Bank	USD	411,557	CAD	420,000	03/05/12		139
JPMorgan Chase Bank	USD	435,172	EUR	325,000	03/05/12		(14,328	)
JPMorgan Chase Bank	USD	209,308	GBP	135,000	03/05/12		224
JPMorgan Chase Bank	USD	493,789	GBP	315,000	03/05/12		(4,879	)
Net unrealized appreciation on forward foreign currency contracts						$	3,178

Futures contracts

	Expiration date	Cost/ (proceeds)			Value			Unrealized appreciation/ (depreciation)
Index futures buy contracts:
E-mini S&P MidCap 400, 3 contracts (USD)	March 2012	$	255,488		$	263,190		$	7,702
E-mini S&P SmallCap 600, 6 contracts (USD)	March 2012		239,244			248,460			9,216
Index futures sell contracts:
Mini Tokyo Price Index, 4 contracts (JPY)	March 2012		(38,599	)		(37,833	)		766
Russell 2000 Mini Index, 4 contracts (USD)	March 2012		(286,961	)		(295,520	)		(8,559	)
Net unrealized appreciation on futures contracts								$	9,125

UBS Market Neutral Multi-Strategy Fund

Portfolio of investments

December 31, 2011 (unaudited)

Concluded

The following is a summary of the inputs used as of December 31, 2011 in valuing the Fund's investments:

Description	Unadjusted quoted prices in active markets for identical investments (Level 1)			Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)			Total
Common stocks	$	13,112,093		$	—	$	—		$	13,112,093
Common stocks sold short		(13,429,945	)		—		(756	)		(13,430,701	)
Preferred stock		37,752			—		—			37,752
Preferred stock sold short		(13,005	)		—		—			(13,005	)
Investment company		229,197			—		—			229,197
Rights		600			—		—			600
Short-term investment		—			8,171,641		—			8,171,641
Forward foreign currency contracts		—			3,178		—			3,178
Futures contracts		9,125			—		—			9,125
Total	$	(54,183	)	$	8,174,819	$	(756	)	$	8,119,880

Level 3 Rollforward Disclosure

The following is a rollforward of the Fund's investments that were valued using unobservable inputs for the period:

	Common stocks sold short			Total
Assets
Beginning balance	$	(6,105	)	$	(6,105	)
Purchases		2,204			2,204
Issuances		(756	)		(756	)
Sales		—			—
Settlements		—			—
Accrued discounts (premiums)		—			—
Total realized gain (loss)		24,420			24,420
Change in net unrealized appreciation/depreciation		(20,519	)		(20,519	)
Transfers into Level 3		—			—
Transfers out of Level 3		—			—
Ending balance	$	(756	)	$	(756	)

The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at December 31, 2011 was $0.

See accompanying notes to financial statements.
37

UBS U.S. Equity Alpha Fund

Portfolio performance

For the six months ended December 31, 2011, Class A shares of UBS U.S. Equity Alpha Fund (the "Fund") declined 7.28% (Class A shares declined 12.37% after the deduction of the maximum sales charge), while Class Y shares declined 7.19%. The Fund's benchmark, the Russell 1000 Index (the "Index"), declined 4.58% over the same time period. (Class Y shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 41; please note that the Fund's returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares, while the Index returns do not reflect the deduction of fees and expenses.)

Stock selection was the main detractor from the Fund's performance during the review period. Additionally, the Fund's exposure to economically sensitive sectors and stocks hurt performance when defensive sectors such as utilities and consumer staples generated the best returns during the period.

Portfolio performance summary¹

What worked

• Stock selection among health care names made the largest positive contribution to Fund performance.

– Pharmasset, a biotechnology company, was by far the largest contributor to performance during the period. (For details, see "Portfolio highlights.")

– Alexion Pharmaceuticals, a biotech company, was a strong performer for the period primarily due to strong sales growth for its hematology treatment Soliris. We believe that Alexion will continue to surprise the market with better-than-expected earnings growth and new indications for Soliris.

• Some of the Fund's financial stocks were positive for relative performance.

– Visa outperformed for the year as investors grew more confident that the company's business model and market share will remain largely unaffected by the new Durbin regulations (a part of Dodd-Frank). (For details, see "Portfolio highlights.")

– The Fund benefited from our decision to avoid Bank of America, a stock that has a significant weight in the Index. Bank of America declined during the six-month period due to problems with the ongoing integration of its Merrill Lynch acquisition and to headwinds from the bank's mortgage portfolio.

• Apple was a top contributor to active performance. Shares of Apple rallied during the six-month period, following solid quarterly results that easily beat estimates, and were driven by strong iPhone and iPad sales. Analysts have continued to upgrade their earnings estimates for Apple, and the company is attractively valued with a strong balance sheet.

• Several consumer staples stocks contributed to performance during the six-month period. As equity markets struggled during the period, investors bid up the share prices of staples.

– Colgate-Palmolive was a significant contributor to performance. The company maintains a strong foothold in the oral hygiene market. Colgate, which makes more than 80% of its sales outside of North America, reported that it expects price increases in emerging markets. We are encouraged by Colgate's recent quarterly report that showed cost-cutting and operating leverage. This allowed the company to report better-than-expected earnings per share. (For details, see "Portfolio highlights.")

¹ For a detailed commentary on the market environment in general during the reporting period, see page 2.

UBS U.S. Equity Alpha Fund

– Kraft Foods, a consumer staples name, also performed well for the period. Kraft announced at the beginning of August 2011 that it will split into two companies, a North American grocery company and a global snack company. (For details, see "Portfolio highlights.")

• Several short positions made a positive contribution to returns when the prices of the stocks declined. Notably, the Fund had a short position in BMC Software, given our belief that the company was reinvesting in lower-margin business units. Additionally, a short position in Halliburton contributed to performance as concerns over oilfield services profits increased during the period based on an unfavorable US regulatory environment. At the beginning of the fourth quarter, there were rumors in the market that Halliburton would have to pay out a settlement regarding the Macondo oil spill, which resulted in a sharp drop in the stock. We believed this drop was overdone, and decided to exit our short position.

What didn't work

• The financial stocks held in the Fund made a negative contribution during the six-month period. Notably, the Fund's positions in Citigroup, Morgan Stanley and MetLife were large detractors from performance. Although the underlying fundamentals of the banking industry improved throughout the period, the stock prices of many financial names fell. The market focused on macro fears about increased financial regulation and its potential impact on future earnings. Concerns about the European debt crisis also put downward pressure on the prices of globally diversified financial firms. We continued to hold all three positions in the Fund at period end, as we believed they remained attractively valued.

• Stock selection in the energy sector was negative for performance as fears of a global recession dominated the equity markets and caused energy stock prices to decline. Ultra Petroleum, Noble Corp. and Peabody Energy were hurt by natural gas prices, which fell below $3 during the period. Coal and crude oil prices also declined. We believe that prices will recover as the economy continues to improve, and that the Fund's energy holdings will benefit. (For additional details on Noble Corp., see "Portfolio highlights.")

• Several stock positions detracted from relative performance during the six months. The Fund held companies that have executed their strategy well and have good fundamentals. During this period of market volatility, however, many of these names were punished. For example, General Motors, an economically sensitive stock, declined during the period. GM has faced competitive headwinds and macroeconomic uncertainty in North America and in Europe. Recently, it has been negatively impacted by the news of fires in its Volt electric vehicles. We believe the company is attractively valued, and expect GM to successfully complete its turnaround.

• The Fund was hindered by its underweight positions in defensive sectors such as utilities and telecommunications. Several companies within these sectors benefited from a pronounced flight-to-quality during the market volatility that characterized the period. The Fund's reduced exposure to these names was a hindrance.

• A short position to Church & Dwight detracted from returns when the company stock price rallied. This consumer staples company benefited from investors' flight to stability. We believe that the company's shares are unattractively priced at current levels, and therefore closed the position prior to period end.

Portfolio highlights

• Pharmasset is a biotechnology company focused on the development of nucleotide hepatitis C virus inhibitors (nucs) taken orally rather than via the traditional injection method. Pharmasset's positive drug trials increased conviction for this product. Shares were up strongly after Gilead, the largest maker of HIV medicines, agreed to buy Pharmasset at a premium. Gilead's purchase shows that the company is intent on becoming the leader in hepatitis medicines.

UBS U.S. Equity Alpha Fund

• Visa remains the dominant provider of debit processing to US card issuers, and now has clarity on final debit rules. We believe pricing pressures will be modest, with Visa continuing to enjoy a significant market share, while also benefiting from the long-term transition from cash and check payments to plastic and electronic payment forms. We continue to believe Visa is attractively valued, and remain overweight.

• We believe Colgate-Palmolive is a well-run company with a strong track record of organic growth. The company has a leading market position in favorable categories with a clear focus, such as oral care, and a high-margin, high-growth business with strong brand loyalty. Colgate also benefits from high exposure to the emerging markets, as well as strong capability in innovation and branding. Colgate has an attractive valuation and is a top overweight in the portfolio.

• Kraft Foods is undergoing a turnaround and improvement effort that we believe is not yet fully appreciated by the market. We see a renewed and increased focus on long-term growth by company management since Kraft separated from Altria. The recent acquisition of Cadbury should further improve the company's growth profile, cost structure and economies of scale, especially in Europe and the emerging markets.

• Noble Corp. offers an attractive way to participate in offshore development activity, which is gaining share in oil production relative to onshore, while also mitigating downside risk given its current backlog. Offshore drillers as a group have lagged diversified oil service stocks on concerns over a weak supply/demand balance. However, we believe the deepwater supply/demand balance looks more favorable over the next three to five years. We see incremental demand absorbing new supply, driven by Brazil, West Africa, a return to the Gulf of Mexico and emerging areas that are off most investors' radar screens, such as East Africa, the Black Sea and Asia. Noble should particularly benefit from the resumption of drilling activity in Mexico, where the company currently has a number of idle rigs.

UBS U.S. Equity Alpha Fund

Average annual total returns for periods ended 12/31/11 (unaudited)

	6 months			1 year			5 years			Inception¹
Before deducting maximum sales charge
Class A²		(7.28	)%		(2.93	)%		(3.73	)%		(2.02	)%
Class C³		(7.75	)		(3.80	)		(4.46	)		(2.76	)
Class Y⁴		(7.19	)		(2.72	)		(3.47	)		(1.78	)
After deducting maximum sales charge
Class A²		(12.37	)%		(8.30	)%		(4.81	)%		(3.06	)%
Class C³		(8.67	)		(4.76	)		(4.46	)		(2.76	)
Russell 1000 Index⁵		(4.58	)%		1.50	%		(0.02	)%		1.25	%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2011 prospectuses were as follows: Class A—2.55% and 2.04%; Class C—3.37% and 2.79%; Class Y—2.27% and 1.79%. 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 UBS Global Asset Management (Americas) Inc., the Fund's investment advisor ("UBS Global AM (Americas)" or 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 expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses, and dividend expense and security loan fees for securities sold short) to the extent necessary so that the Fund's ordinary operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses, and dividend expense and security loan fees for securities sold short), through the period ending October 27, 2012, otherwise do not exceed 1.50% for Class A shares, 2.25% for Class C shares and 1.25% for Class Y shares. 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 shares of UBS U.S. Equity Alpha Fund and the index is September 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.

⁵ The Russell 1000 Index is designed to measure the performance of the large-cap segment of the US equity universe. It is a subset of the Russell 3000 Index and includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92% of the US market. The Russell 1000 Index is constructed to provide a comprehensive and unbiased barometer for the large-cap segment and is completely reconstituted annually to ensure new and growing equities are reflected. Investors should note that indices do not reflect the deduction of fees and expenses.

UBS U.S. Equity Alpha Fund

Top ten equity holdings (unaudited)^1,2

As of December 31, 2011

	Percentage of net assets
Apple, Inc.		4.7	%
Edison International		3.3
Adobe Systems, Inc.		3.1
Wells Fargo & Co.		3.1
PepsiCo, Inc.		3.0
Kraft Foods, Inc., Class A		3.0
NextEra Energy, Inc.		2.9
Amazon.com, Inc.		2.9
Visa, Inc., Class A		2.8
Time Warner, Inc.		2.7
Total		31.5	%

¹ Only long positions are considered for top ten holdings.

² Figures represent the direct investments of UBS U.S. Equity Alpha Fund. Figures would be different if a breakdown of the underlying investment company was included.

UBS U.S. Equity Alpha Fund

Industry diversification (unaudited)¹

As a percentage of net assets as of December 31, 2011

Common stocks
Aerospace & defense	4.84	%
Air freight & logistics	2.06
Automobiles	1.38
Beverages	3.02
Biotechnology	4.90
Capital markets	2.86
Chemicals	2.62
Commercial banks	4.72
Commercial services & supplies	0.56
Communications equipment	2.51
Computers & peripherals	6.00
Construction materials	1.30
Diversified consumer services	1.04
Diversified financial services	5.57
Electric utilities	6.16
Energy equipment & services	4.30
Food & staples retailing	3.90
Food products	2.96
Health care equipment & supplies	2.79
Health care providers & services	1.94
Hotels, restaurants & leisure	3.37
Household products	2.61
Insurance	2.70
Internet & catalog retail	2.90
IT services	4.20
Life sciences tools & services	1.06
Machinery	3.12
Media	6.86
Metals & mining	0.52
Oil, gas & consumable fuels	9.39
Pharmaceuticals	6.63
Real estate investment trust (REIT)	1.91
Road & rail	2.85
Semiconductors & semiconductor equipment	4.50
Software	5.08
Specialty retail	1.23
Textiles, apparel & luxury goods	1.02
Total common stocks	125.38	%
Investment company
SPDR S&P 500 ETF Trust	2.63	%
Short-term investment	1.04
Total investments before investments sold short	129.05	%
Investments sold short
Common stocks
Capital markets	(1.12	)
Chemicals	(0.55	)
Commercial banks	(2.42	)
Consumer finance	(0.27	)
Electronic equipment, instruments & components	(0.33	)
Gas utilities	(0.49	)
Health care equipment & supplies	(1.28	)
Health care providers & services	(1.28	)
Hotels, restaurants & leisure	(2.10	)
Household products	(0.82	)
Industrial conglomerates	(1.00	)
IT services	(0.47	)
Life sciences tools & services	(0.39	)
Machinery	(0.70	)
Media	(1.40	)
Multiline retail	(2.06	)
Multi-utilities	(1.65	)
Oil, gas & consumable fuels	(1.66	)
Pharmaceuticals	(2.07	)
Real estate investment trust (REIT)	(0.57	)
Semiconductors & semiconductor equipment	(1.63	)
Software	(1.93	)
Specialty retail	(1.12	)
Trading companies & distributors	(0.46	)
Water utilities	(1.39	)
Total investments sold short	(29.16	)%
Total investments, net of investments sold short	99.89
Cash and other assets, less liabilities	0.11
Net assets	100.00	%

¹ Figures represent the industry breakdown of direct investments of UBS U.S. Equity Alpha Fund. Figures would be different if a breakdown of the underlying investment company's industry diversification was included.

UBS U.S. Equity Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks: 125.38%
Aerospace & defense: 4.84%
Boeing Co.¹		5,800	$	425,430
General Dynamics Corp.¹		7,500		498,075
				923,505
Air freight & logistics: 2.06%
FedEx Corp.¹		4,700		392,497
Automobiles: 1.38%
General Motors Co.*¹		13,000		263,510
Beverages: 3.02%
PepsiCo, Inc.¹		8,700		577,245
Biotechnology: 4.90%
Acorda Therapeutics, Inc.*¹		5,200		123,968
Alexion Pharmaceuticals, Inc.*¹		3,500		250,250
Amylin Pharmaceuticals, Inc.*¹		11,200		127,456
Gilead Sciences, Inc.*		5,900		241,487
Pharmasset, Inc.*¹		1,500		192,300
				935,461
Capital markets: 2.86%
Invesco Ltd.		13,100		263,179
Morgan Stanley¹		18,700		282,931
				546,110
Chemicals: 2.62%
Celanese Corp., Series A¹		7,000		309,890
Dow Chemical Co.		6,600		189,816
				499,706
Commercial banks: 4.72%
US Bancorp¹		11,400		308,370
Wells Fargo & Co.¹		21,500		592,540
				900,910
Commercial services & supplies: 0.56%
Republic Services, Inc.		3,900		107,445
Communications equipment: 2.51%
Cisco Systems, Inc.¹		19,500		352,560
QUALCOMM, Inc.¹		2,300		125,810
				478,370
Computers & peripherals: 6.00%
Apple, Inc.*¹		2,200		891,000
Hewlett-Packard Co.¹		9,900		255,024
				1,146,024

	Shares		Value
Construction materials: 1.30%
Vulcan Materials Co.¹		6,300	$	247,905
Diversified consumer services: 1.04%
Apollo Group, Inc., Class A*¹		3,700		199,319
Diversified financial services: 5.57%
Citigroup, Inc.¹		16,119		424,091
CME Group, Inc.		600		146,202
JPMorgan Chase & Co.¹		14,800		492,100
				1,062,393
Electric utilities: 6.16%
Edison International¹		15,000		621,000
NextEra Energy, Inc.¹		9,100		554,008
				1,175,008
Energy equipment & services: 4.30%
Baker Hughes, Inc.		2,000		97,280
Ensco PLC ADR		6,400		300,288
McDermott International, Inc.*		6,600		75,966
Noble Corp.*¹		11,500		347,530
				821,064
Food & staples retailing: 3.90%
Kroger Co.¹		19,100		462,602
Wal-Mart Stores, Inc.¹		4,700		280,872
				743,474
Food products: 2.96%
Kraft Foods, Inc., Class A¹		15,100		564,136
Health care equipment & supplies: 2.79%
Baxter International, Inc.¹		4,900		242,452
Medtronic, Inc.¹		7,600		290,700
				533,152
Health care providers & services: 1.94%
HCA Holdings, Inc.*¹		7,400		163,022
UnitedHealth Group, Inc.¹		4,100		207,788
				370,810
Hotels, restaurants & leisure: 3.37%
Carnival Corp.¹		10,000		326,400
International Game Technology¹		18,400		316,480
				642,880
Household products: 2.61%
Colgate-Palmolive Co.¹		5,400		498,906

UBS U.S. Equity Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks—(Concluded)
Insurance: 2.70%
Aflac, Inc.¹		5,300	$	229,278
MetLife, Inc.¹		9,200		286,856
				516,134
Internet & catalog retail: 2.90%
Amazon.com, Inc.*¹		3,200		553,920
IT services: 4.20%
ServiceSource International, Inc.*		17,500		274,575
Visa, Inc., Class A¹		5,200		527,956
				802,531
Life sciences tools & services: 1.06%
Bio-Rad Laboratories, Inc., Class A*¹		2,100		201,684
Machinery: 3.12%
Illinois Tool Works, Inc.¹		8,400		392,364
PACCAR, Inc.¹		5,400		202,338
				594,702
Media: 6.86%
Comcast Corp., Class A¹		17,000		403,070
Time Warner, Inc.¹		14,500		524,030
Viacom, Inc., Class B¹		8,400		381,444
				1,308,544
Metals & mining: 0.52%
Steel Dynamics, Inc.¹		7,600		99,940
Oil, gas & consumable fuels: 9.39%
EOG Resources, Inc.¹		2,800		275,828
EQT Corp.		6,000		328,740
Exxon Mobil Corp.		5,600		474,656
Hess Corp.¹		6,000		340,800
Peabody Energy Corp.		3,800		125,818
Ultra Petroleum Corp.*¹		8,300		245,929
				1,791,771
Pharmaceuticals: 6.63%
Allergan, Inc.¹		1,800		157,932
Hospira, Inc.*		3,100		94,147
Johnson & Johnson¹		5,400		354,132
Merck & Co., Inc.¹		12,900		486,330
Teva Pharmaceutical Industries Ltd. ADR		4,300		173,548
				1,266,089
Real estate investment trust (REIT): 1.91%
American Campus Communities, Inc.		3,700		155,252
Annaly Capital Management, Inc.¹		13,100		209,076
				364,328

	Shares			Value
Road & rail: 2.85%
Hertz Global Holdings, Inc.*¹		24,600		$	288,312
Norfolk Southern Corp.¹		3,500			255,010
					543,322
Semiconductors & semiconductor equipment: 4.50%
Broadcom Corp., Class A*¹		9,700			284,792
Intersil Corp., Class A¹		35,400			369,576
Skyworks Solutions, Inc.*		12,600			204,372
					858,740
Software: 5.08%
Adobe Systems, Inc.*¹		21,200			599,324
Symantec Corp.*¹		23,600			369,340
					968,664
Specialty retail: 1.23%
GameStop Corp., Class A*¹		9,700			234,061
Textiles, apparel & luxury goods: 1.02%
Coach, Inc.		3,200			195,328
Total common stocks (cost $23,196,229)					23,929,588
Investment company: 2.63%
SPDR S&P 500 ETF Trust (cost $495,788)		4,000			502,000
Short-term investment: 1.04%
Investment company: 1.04%
UBS Cash Management Prime Relationship Fund²(cost $198,205)		198,205			198,205
Total investments before investments sold short: 129.05% (cost $23,890,222)					24,629,793
Investments sold short: (29.16)%
Common stocks: (29.16)%
Capital markets: (1.12)%
Charles Schwab Corp.		(8,700	)		(97,962	)
Northern Trust Corp.		(1,500	)		(59,490	)
T. Rowe Price Group, Inc.		(1,000	)		(56,950	)
					(214,402	)
Chemicals: (0.55)%
EI Du Pont de Nemours & Co.		(900	)		(41,202	)
Praxair, Inc.		(600	)		(64,140	)
					(105,342	)

UBS U.S. Equity Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares			Value
Investments sold short—(Continued)
Common stocks—(Continued)
Commercial banks: (2.42)%
Associated Banc-Corp.		(5,100	)	$	(56,967	)
BB&T Corp.		(3,100	)		(78,027	)
M&T Bank Corp.		(900	)		(68,706	)
PNC Financial Services Group, Inc.		(2,600	)		(149,942	)
TCF Financial Corp.		(5,200	)		(53,664	)
Zions Bancorporation		(3,400	)		(55,352	)
					(462,658	)
Consumer finance: (0.27)%
American Express Co.		(1,100	)		(51,887	)
Electronic equipment, instruments & components: (0.33)%
Jabil Circuit, Inc.		(3,200	)		(62,912	)
Gas utilities: (0.49)%
Questar Corp.		(4,700	)		(93,342	)
Health care equipment & supplies: (1.28)%
IDEXX Laboratories, Inc.		(900	)		(69,264	)
Intuitive Surgical, Inc.		(200	)		(92,602	)
Zoll Medical Corp.		(1,300	)		(82,134	)
					(244,000	)
Health care providers & services: (1.28)%
Bio-Reference Labs, Inc.		(4,300	)		(69,961	)
Humana, Inc.		(1,200	)		(105,132	)
Laboratory Corp. of America Holdings		(800	)		(68,776	)
					(243,869	)
Hotels, restaurants & leisure: (2.10)%
Choice Hotels International, Inc.		(2,700	)		(102,735	)
Hyatt Hotels Corp., Class A		(3,200	)		(120,448	)
Starwood Hotels & Resorts Worldwide, Inc.		(3,700	)		(177,489	)
					(400,672	)
Household products: (0.82)%
Church & Dwight Co., Inc.		(3,400	)		(155,584	)
Industrial conglomerates: (1.00)%
Tyco International Ltd.		(4,100	)		(191,511	)
IT services: (0.47)%
Cognizant Technology Solutions Corp., Class A		(1,400	)		(90,034	)
Life sciences tools & services: (0.39)%
Mettler-Toledo International, Inc.		(500	)		(73,855	)

	Shares			Value
Machinery: (0.70)%
AGCO Corp.		(3,100	)	$	(133,207	)
Media: (1.40)%
Discovery Communications, Inc., Class A		(2,500	)		(102,425	)
Lamar Advertising Co., Class A		(6,000	)		(165,000	)
					(267,425	)
Multiline retail: (2.06)%
Dollar General Corp.		(4,700	)		(193,358	)
JC Penney Co., Inc.		(3,300	)		(115,995	)
Nordstrom, Inc.		(1,700	)		(84,507	)
					(393,860	)
Multi-utilities: (1.65)%
Consolidated Edison, Inc.		(2,900	)		(179,887	)
Integrys Energy Group, Inc.		(2,500	)		(135,450	)
					(315,337	)
Oil, gas & consumable fuels: (1.66)%
ConocoPhillips		(700	)		(51,009	)
Pioneer Natural Resources Co.		(2,000	)		(178,960	)
Spectra Energy Corp.		(2,800	)		(86,100	)
					(316,069	)
Pharmaceuticals: (2.07)%
Eli Lilly & Co.		(6,000	)		(249,360	)
Perrigo Co.		(1,500	)		(145,950	)
					(395,310	)
Real estate investment trust (REIT): (0.57)%
AvalonBay Communities, Inc.		(400	)		(52,240	)
Equity Residential		(1,000	)		(57,030	)
					(109,270	)
Semiconductors & semiconductor equipment: (1.63)%
Intel Corp.		(1,900	)		(46,075	)
KLA-Tencor Corp.		(1,600	)		(77,200	)
LSI Corp.		(19,800	)		(117,810	)
Microchip Technology, Inc.		(1,900	)		(69,597	)
					(310,682	)
Software: (1.93)%
BMC Software, Inc.		(3,500	)		(114,730	)
Cadence Design Systems, Inc.		(7,100	)		(73,840	)
Compuware Corp.		(8,800	)		(73,216	)
Red Hat, Inc.		(1,000	)		(41,290	)
Synopsys, Inc.		(2,400	)		(65,280	)
					(368,356	)

UBS U.S. Equity Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares			Value
Investments sold short—(Concluded)
Common stocks—(Concluded)
Specialty retail: (1.12)%
Abercrombie & Fitch Co., Class A		(1,400	)	$	(68,376	)
CarMax, Inc.		(2,500	)		(76,200	)
Williams-Sonoma, Inc.		(1,800	)		(69,300	)
					(213,876	)
Trading companies & distributors: (0.46)%
Fastenal Co.		(2,000	)		(87,220	)
Water utilities: (1.39)%
American Water Works Co., Inc.		(4,700	)		(149,742	)
Aqua America, Inc.		(5,200	)		(114,660	)
					(264,402	)
Total investments sold short (proceeds $5,025,201)					(5,565,082	)
Total investments, net of investments sold short: 99.89%					19,064,711
Cash and other assets, less liabilities: 0.11%					21,574
Net assets: 100.00%				$	19,086,285

Notes to portfolio of investments

Aggregate cost for federal income tax purposes, before investments sold short, was substantially the same as for book purposes; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	2,419,916
Gross unrealized depreciation		(1,680,345	)
Net unrealized appreciation of investments	$	739,571

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 71.

* Non-income producing security.

¹ All or a portion of these securities have been designated as collateral for open short positions.

² The table below details the Fund's investments in a fund that is advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Fund.

Security description				Value 06/30/11				Purchases during the six months ended 12/31/11				Sales during the six months ended 12/31/11				Value 12/31/11				Income earned from affiliate for the six months ended 12/31/11
UBS Cash Management Prime Relationship Fund				$	221,096			$	6,712,608			$	6,735,499			$	198,205			$	148

UBS U.S. Equity Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

Concluded

The following is a summary of the inputs used as of December 31, 2011 in valuing the Fund's investments:

Description	Unadjusted quoted prices in active markets for identical investments (Level 1)			Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	23,929,588		$	—	$	—	$	23,929,588
Common stocks sold short		(5,565,082	)		—		—		(5,565,082	)
Investment company		502,000			—		—		502,000
Short-term investment		—			198,205		—		198,205
Total	$	18,866,506		$	198,205	$	—	$	19,064,711

See accompanying notes to financial statements.
48

UBS U.S. Equity Opportunity Fund

Portfolio performance

Effective December 30, 2011, UBS U.S. Large Cap Value Equity Fund was renamed UBS U.S. Equity Opportunity Fund, and its benchmark was changed from the Russell 1000 Value Index to the Russell 1000 Index. For the purpose of this historical performance analysis, the U.S. Large Cap Value strategy and the Russell 1000 Value Index are used.

For the six months ended December 31, 2011, Class A shares of UBS U.S. Equity Opportunity Fund (the "Fund") declined 10.43% (Class A shares declined 15.33% after the deduction of the maximum sales charge), while Class Y shares declined 10.37%. The Fund's benchmark, the Russell 1000 Value Index (the "Index"), declined 5.22% 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 52; please note that the Fund's returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares, while the Index returns do not reflect the deduction of fees and expenses.)

Important Notice About Your Fund

As noted above, as of December 30, 2011, the name and investment policy of UBS U.S. Large Cap Value Equity Fund changed. The purpose of these changes is to broaden and diversify the Fund's opportunity set, and provide greater potential for better risk-adjusted returns for the Fund as a whole. The Fund is now known as UBS U.S. Equity Opportunity Fund, and its benchmark has changed from the Russell 1000 Value Index to the Russell 1000 Index. For comparison purposes, over the six-month reporting period ended December 31, 2011, the Russell 1000 Index declined 4.58%. The investment universe has been expanded to provide the Fund with a greater opportunity to invest in foreign securities and securities with smaller market capitalizations when market conditions warrant such investments. Please see the Fund's prospectus for additional details.

Portfolio performance summary¹

What worked

• Several consumer staples stocks were successful during the six-month period. As equity markets struggled, investors bid up the share prices of defensively positioned stocks. The Fund benefited from being overweight to this sector.

– Colgate-Palmolive was a significant contributor to performance. The company maintains a strong foothold in the oral hygiene market. Colgate, which makes more than 80% of its sales outside of North America, reported that it expects price increases in emerging markets. Colgate's recent quarterly report, which showed cost-cutting and operating leverage, allowed the company to report better-than-expected earnings per share. (For details, see "Portfolio highlights.")

¹ For a detailed commentary on the market environment in general during the reporting period, see page 2.

UBS U.S. Equity Opportunity Fund

– Kraft Foods, another "safe haven" name, also performed well for the period. Kraft announced at the beginning of August 2011 that it will split into two companies, a North American grocery company and a global snack company. (For details, see "Portfolio highlights.")

• Stock selection among health care names, and an overweight to the sector, made a positive contribution to Fund performance. Notably, UnitedHealth Group had strong performance during the period as it continued to do an excellent job of executing in the managed care space and as investors began to realize that the company still had a viable position in the post-healthcare reform world. We sold out of this position prior to period end as it approached our estimate of fair value.

• An underweight to financial stocks was positive for relative performance.

– The Fund's positions in Invesco and US Bancorp performed strongly relative to other financial companies that had greater exposure to investment banking and Europe. Both companies have strong, stable franchises without as much regulatory overhang as some of the larger diversified financials. We sold out of Invesco prior to period end as it approached our estimate of fair value.

– The Fund benefited from our decision to avoid Bank of America, a stock that has a significant weight in the benchmark index. Bank of America declined during the six-month period due to problems with the ongoing integration of its Merrill Lynch acquisition and to headwinds from the bank's mortgage portfolio.

What didn't work

• A number of financial stocks held in the Fund made a negative contribution during the six-month period. Notably, the Fund's positions in Citigroup, Morgan Stanley and MetLife were large detractors from performance. Although the underlying fundamentals of the banking industry improved throughout the period, the stock prices of many financial names fell. The market focused on macro fears about increased financial regulation and its potential impact on future earnings. Concerns about the European debt crisis also put downward pressure on the prices of globally diversified financial firms. We continue to hold Citigroup and Morgan Stanley, as we believe they continue to present compelling opportunties. However, we sold out of MetLife before period end.

• Stock selection in the energy sector was negative for performance. Shares of Peabody Energy, a coal producer, fell as coal and crude oil prices suffered. Fears of a global recession have dominated the equity markets and caused energy stock prices to decline. Ultra Petroleum was hurt by natural gas prices, which fell below $3 during the period. We believe that prices will recover as the economy continues to improve, and that Ultra will benefit. (For details, see "Portfolio highlights.")

• Several stock positions detracted from relative performance during the six months. We held companies that executed their strategies well, and that have good fundamentals. During this period of market volatility, however, many of these names were punished. For example, General Motors, an economically sensitive stock, declined during the period. GM has faced competitive headwinds and macroeconomic uncertainty in North America and in Europe. Recently, it has been negatively impacted by the news of fires in its Volt electric vehicles. We believe the company is attractively valued, and expect GM to successfully complete its turnaround.

Portfolio highlights

UBS U.S. Equity Opportunity Fund

markets, as well as strong capability in innovation and branding. We sold out of this position prior to period end as it approached our estimate of fair value.

• Kraft Foods underwent a turnaround and improvement effort that we believed was not fully appreciated by the market. We saw a renewed and increased focus on long-term growth by company management since Kraft separated from Altria. We sold out of this position prior to period end as it approached our estimate of fair value.

• Ultra Petroleum suffered when the market experienced a flight-to-safety. Energy stocks were punished because investors perceived them as higher-risk and more susceptible to an economic slowdown. Weak natural gas prices have challenged Ultra, even though the company is still earning more than its cost of capital returns. We believe the stock should recover as industry gas volumes begin to come down later in 2012. This should be accelerated by reduced rig counts in key producing regions like the Haynesville shale.

UBS U.S. Equity Opportunity Fund⁸

Average annual total returns for periods ended 12/31/11 (unaudited)

	6 months			1 year			5 years			10 years
Before deducting maximum sales charge
Class A¹		(10.43	)%		(6.12	)%		(5.29	)%		2.16	%
Class B²		(10.88	)		(6.85	)		(6.01	)		1.69⁵
Class C³		(10.78	)		(6.68	)		(5.98	)		1.41
Class Y⁴		(10.37	)		(5.94	)		(5.03	)		2.43
After deducting maximum sales charge
Class A¹		(15.33	)%		(11.22	)%		(6.35	)%		1.58	%
Class B²		(15.34	)		(11.51	)		(6.29	)		1.69⁵
Class C³		(11.67	)		(7.61	)		(5.98	)		1.41
Russell 1000 Index^6,8		(4.58	)%		1.50	%		(0.02	)%		3.35	%
Russell 1000 Value Index^7,8		(5.22	)		0.39			(2.64	)		3.90

The annualized gross and net expense ratios, respectively, for each class of shares as in the December 30, 2011 prospectuses were as follows: Class A—1.62% and 1.21%; Class B—2.49% and 1.96%; Class C—2.41% and 1.96%; Class Y—1.49% and 0.96%. 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 UBS Global Asset Management (Americas) Inc., the Fund's investment advisor ("UBS Global AM (Americas)" or 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 expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) to the extent necessary so that the Fund's ordinary operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses), through the period ending October 27, 2013, do not exceed 1.20% for Class A shares, 1.95% for Class B shares, 1.95% for Class C shares and 0.95% for Class Y shares. 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 Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

⁵ Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁶ The Russell 1000 Index is designed to measure the performance of the large-cap segment of the US equity universe. It is a subset of the Russell 3000 Index and includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92% of the US market. The Russell 1000 Index is constructed to provide a comprehensive and unbiased barometer for the large-cap segment and is completely reconstituted annually to ensure new and growing equities are reflected. Investors should note that indices do not reflect the deduction of fees and expenses.

⁷ The Russell 1000 Value Index is designed to measure the performance of the large-cap value segment of the US equity universe. It includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values. The Russell 1000 Value Index is constructed to provide a comprehensive and unbiased barometer for the large-cap value segment. The Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics. Investors should note that indices do not reflect the deduction of fees and expenses.

⁸ Effective December 30, 2011, the Fund's official name and benchmark had been changed from UBS U.S. Large Cap Value Equity Fund to UBS U.S. Equity Opportunity Fund; and from the Russell 1000 Value Index to the Russell 1000 Index respectively, which better reflects the Fund's revised investment policies.

UBS U.S. Equity Opportunity Fund

Top ten equity holdings (unaudited)

As of December 31, 2011

	Percentage of net assets
Apple, Inc.		7.6	%
Tullow Oil PLC		4.2
Adobe Systems, Inc.		3.4
Time Warner, Inc.		3.4
Dow Chemical Co.		3.2
Spectrum Brands Holdings, Inc.		3.1
Telenor ASA		3.1
Comcast Corp., Class A		3.1
US Bancorp		3.0
Pharmasset, Inc.		3.0
Total		37.1	%

Industry diversification (unaudited)

As a percentage of net assets as of December 31, 2011

Common stocks
Aerospace & defense	5.45	%
Biotechnology	9.57
Capital markets	2.34
Chemicals	5.53
Commercial banks	8.32
Computers & peripherals	7.63
Diversified financial services	5.04
Diversified telecommunication services	4.36
Energy equipment & services	3.35
Health care equipment & supplies	4.84
Hotels, restaurants & leisure	2.64
Household products	3.15
Internet & catalog retail	2.15
Life sciences tools & services	1.37
Media	6.44
Oil, gas & consumable fuels	9.15
Real estate investment trust (REIT)	1.42
Semiconductors & semiconductor equipment	6.50
Software	3.41
Specialty retail	2.78
Textiles, apparel & luxury goods	1.99
Total common stocks	97.43	%
Short-term investment	1.12
Investment of cash collateral from securities loaned	2.12
Total investments	100.67	%
Liabilities, in excess of cash and other assets	(0.67	)
Net assets	100.00	%

UBS U.S. Equity Opportunity Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks: 97.43%
Aerospace & defense: 5.45%
General Dynamics Corp.		16,200	$	1,075,842
Textron, Inc.		65,500		1,211,095
				2,286,937
Biotechnology: 9.57%
Acorda Therapeutics, Inc.*		46,800		1,115,712
Alexion Pharmaceuticals, Inc.*		15,400		1,101,100
Amylin Pharmaceuticals, Inc.*		47,500		540,550
Pharmasset, Inc.*		9,800		1,256,360
				4,013,722
Capital markets: 2.34%
Morgan Stanley		65,000		983,450
Chemicals: 5.53%
Celanese Corp., Series A		21,600		956,232
Dow Chemical Co.		47,400		1,363,224
				2,319,456
Commercial banks: 8.32%
East West Bancorp, Inc.		57,000		1,125,750
US Bancorp		46,600		1,260,530
Wells Fargo & Co.		40,100		1,105,156
				3,491,436
Computers & peripherals: 7.63%
Apple, Inc.*		7,900		3,199,500
Diversified financial services: 5.04%
Citigroup, Inc.		41,954		1,103,810
JPMorgan Chase & Co.		30,370		1,009,802
				2,113,612
Diversified telecommunication services: 4.36%
Hellenic Telecommunications Organization SA		145,188		541,180
Telenor ASA		78,529		1,288,060
				1,829,240
Energy equipment & services: 3.35%
Baker Hughes, Inc.		15,200		739,328
McDermott International, Inc.*		58,000		667,580
				1,406,908
Health care equipment & supplies: 4.84%
Baxter International, Inc.		16,300		806,524
Medtronic, Inc.		32,000		1,224,000
				2,030,524

	Shares		Value
Hotels, restaurants & leisure: 2.64%
Carnival Corp.		34,000	$	1,109,760
Household products: 3.15%
Spectrum Brands Holdings, Inc.*		48,200		1,320,680
Internet & catalog retail: 2.15%
Amazon.com, Inc.^*		5,200		900,120
Life sciences tools & services: 1.37%
Bio-Rad Laboratories, Inc., Class A*		6,000		576,240
Media: 6.44%
Comcast Corp., Class A		54,300		1,287,453
Time Warner, Inc.		39,200		1,416,688
				2,704,141
Oil, gas & consumable fuels: 9.15%
Hess Corp.		14,000		795,200
Peabody Energy Corp.		14,600		483,406
Tullow Oil PLC		80,095		1,743,913
Ultra Petroleum Corp.*		27,500		814,825
				3,837,344
Real estate investment trust (REIT): 1.42%
Annaly Capital Management, Inc.		37,400		596,904
Semiconductors & semiconductor equipment: 6.50%
Broadcom Corp., Class A*		36,200		1,062,832
Intersil Corp., Class A		72,900		761,076
Skyworks Solutions, Inc.*		55,800		905,076
				2,728,984
Software: 3.41%
Adobe Systems, Inc.*		50,600		1,430,462
Specialty retail: 2.78%
GameStop Corp., Class A*¹		48,400		1,167,892
Textiles, apparel & luxury goods: 1.99%
Coach, Inc.		13,700		836,248
Total common stocks (cost $42,160,047)				40,883,560
Short-term investment: 1.12%
Investment company: 1.12%
UBS Cash Management Prime Relationship Fund²(cost $471,927)		471,927		471,927

UBS U.S. Equity Opportunity Fund

Portfolio of investments

December 31, 2011 (unaudited)

Concluded

	Shares		Value
Investment of cash collateral from securities loaned: 2.12%
UBS Private Money Market Fund LLC²(cost $887,661)		887,661	$	887,661
Total investments: 100.67% (cost $43,519,635)				42,243,148
Liabilities, in excess of cash and other assets: (0.67)%				(281,018	)
Net assets—100.00%			$	41,962,130

Notes to portfolio of investments

Aggregate cost for federal income tax purposes was substantially the same as for book purposes; and net unrealized depreciation consisted of:

Gross unrealized appreciation	$	937,774
Gross unrealized depreciation		(2,214,261	)
Net unrealized depreciation of investments	$	(1,276,487	)

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 71.

* Non-income producing security.

¹ Security, or portion thereof, was on loan at December 31, 2011.

² The table below details the Fund's investments in funds advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Fund.

Security description	Value 06/30/11		Purchases during the six months ended 12/31/11		Sales during the six months ended 12/31/11		Value 12/31/11		Income earned from affiliate for the six months ended 12/31/11
UBS Cash Management Prime Relationship Fund	$	406,762	$	5,702,475	$	5,637,310	$	471,927	$	322
UBS Private Money Market Fund LLC^a		2,040,331		9,682,332		10,835,002		887,661		70
	$	2,447,093	$	15,384,807	$	16,472,312	$	1,359,588	$	392

^a The adviser does earn a management fee from this affiliated fund, and any income earned is net of expenses. Please see the Notes to financial statements for further information.

The following is a summary of the inputs used as of December 31, 2011 in valuing the Fund's investments:

Description	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	40,883,560	$	—	$	—	$	40,883,560
Short-term investment		—		471,927		—		471,927
Investment of cash collateral from securities loaned		—		887,661		—		887,661
Total	$	40,883,560	$	1,359,588	$	—	$	42,243,148

See accompanying notes to financial statements.
55

UBS U.S. Large Cap Equity Fund

Portfolio performance

For the six months ended December 31, 2011, Class A shares of UBS U.S. Large Cap Equity Fund (the "Fund") declined 7.60% (Class A shares declined 12.70% after the deduction of the maximum sales charge), while Class Y shares declined 7.46%. The Fund's benchmark, the Russell 1000 Index (the "Index"), declined 4.58% over the same time period. (Class Y shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 59; please note that the Fund's returns do not reflect the deduction of taxes that an investor would pay on Fund distributions or the redemption of Fund shares, while the Index returns do not reflect the deduction of fees and expenses.)

Portfolio performance summary¹

What worked

• Stock selection among health care names made the largest positive contribution to Fund performance.

– Pharmasset, a biotechnology company, was by far the largest contributor to performance during the period. (For details, see "Portfolio highlights.")

• Some of the Fund's financial stocks were positive for relative performance.

– The Fund did not hold Bank of America, a stock that had a significant weight in the benchmark index. Bank of America declined during the six months under review, due to problems relating to the ongoing integration of its Merrill Lynch acquisition and due to headwinds from the bank's mortgage portfolio.

• Several consumer staples stocks were successful during the six months. As equity markets struggled during the period, investors bid up the share prices of staples.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 2.

UBS U.S. Large Cap Equity Fund

• Apple was a top contributor to active performance. Shares of Apple rallied during the six months, following solid quarterly results that easily beat estimates and were driven by strong iPhone and iPad sales. Analysts have continued to upgrade their earnings estimates for Apple, and the company is attractively valued with a strong balance sheet.

What didn't work

• The Fund was hindered by its underweight positions in defensive sectors such as consumer staples and telecommunications. Several companies within these sectors benefited from a pronounced flight to quality during the market volatility that characterized the period. The Fund's reduced exposure to these names was a hindrance.

• Stock selection in the energy sector was negative for performance. Ultra Petroleum was hurt by natural gas prices, which fell below $3 during the period. We believe that prices will recover as the economy continues to improve, and that Ultra will benefit. (For details, see "Portfolio highlights.") Shares of Peabody Energy, a coal producer, fell as coal and crude oil prices suffered. Fears of a global recession have dominated the equity markets and caused energy stock prices to decline.

• Several stock positions detracted from relative performance during the six months.

– General Motors, an economically sensitive stock, declined during the period. GM has faced competitive headwinds and macroeconomic uncertainty in North America and in Europe. Recently, it has been negatively impacted by the news of fires in its Volt electric vehicles. We believe the company is attractively valued, and expect GM to successfully complete its turnaround.

– Shares of Hewlett-Packard declined due to continued management instability. After CEO Mark Hurd resigned amid allegations of misconduct, his successor announced that the company would exit the computer business. The board overruled that business plan and brought in Meg Whitman, the third CEO in less than a year. We believe H-P's underlying business is strong, and that the stock will recover as the management situation stabilizes.

Portfolio highlights

UBS U.S. Large Cap Equity Fund

also benefiting from the long-term transition from cash and check payments to plastic and electronic payment forms. We continue to believe Visa is attractively valued, and remain overweight.

• Ultra Petroleum suffered when the market experienced a flight to safety. Energy stocks were punished as investors perceived them as higher-risk and more susceptible to an economic slowdown. Weak natural gas prices have challenged Ultra, even though the company is still earning more than its cost of capital returns. We believe the stock should recover as industry gas volumes begin to come down later in 2012. This should be accelerated by reduced rig counts in key producing regions like the Haynesville shale.

UBS U.S. Large Cap Equity Fund

Average annual total returns for periods ended 12/31/11 (unaudited)

	6 months			1 year			5 years			10 years
Before deducting maximum sales charge
Class A¹		(7.60	)%		(3.13	)%		(2.84	)%		2.75	%
Class B²		(7.98	)		(3.84	)		(3.57	)		2.28⁵
Class C³		(8.00	)		(3.88	)		(3.56	)		2.00
Class Y⁴		(7.46	)		(2.83	)		(2.57	)		3.05
After deducting maximum sales charge
Class A¹		(12.70	)%		(8.44	)%		(3.93	)%		2.17	%
Class B²		(12.58	)		(8.65	)		(3.93	)		2.28⁵
Class C³		(8.92	)		(4.84	)		(3.56	)		2.00
Russell 1000 Index⁶		(4.58	)%		1.50	%		(0.02	)%		3.35	%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2011 prospectuses were as follows: Class A—1.19% and 1.20%; Class B—2.06% and 1.95%; Class C—2.00% and 1.95%; Class Y—0.94% and 0.95%. Net expenses reflect fee waivers and/or expense reimbursements/recoupments, if any, pursuant to an agreement that is in effect to cap the expenses. The Trust, with respect to the Fund, and UBS Global Asset Management (Americas) Inc., the Fund's investment advisor ("UBS Global AM (Americas)" or 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 expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) to the extent necessary so that the Fund's ordinary operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses), through the period ending October 27, 2012, do not exceed 1.20% for Class A shares, 1.95% for Class B shares, 1.95% for Class C shares and 0.95% for Class Y shares. 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 Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

⁵Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁶ The Russell 1000 Index is designed to measures the performance of the large-cap segment of the US equity universe. It is a subset of the Russell 3000 Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92% of the US market. The Russell 1000 Index is constructed to provide a comprehensive and unbiased barometer for the large-cap segment and is completely reconstituted annually to ensure new and growing equities are reflected. Investors should note that indices do not reflect the deduction of fees and expenses.

UBS U.S. Large Cap Equity Fund

Top ten equity holdings (unaudited)

As of December 31, 2011

	Percentage of net assets
Apple, Inc.		4.1	%
Wells Fargo & Co.		2.8
Kraft Foods, Inc., Class A		2.5
Comcast Corp., Class A		2.2
General Dynamics Corp.		2.2
Time Warner, Inc.		2.2
Exxon Mobil Corp.		2.1
JPMorgan Chase & Co.		2.1
Adobe Systems, Inc.		2.1
Citigroup, Inc.		2.0
Total		24.3	%

Industry diversification (unaudited)

As a percentage of net assets as of December 31, 2011

Common stocks
Aerospace & defense	5.47	%
Air freight & logistics	1.79
Automobiles	1.22
Biotechnology	3.67
Capital markets	2.46
Chemicals	3.19
Commercial banks	4.31
Communications equipment	1.99
Computers & peripherals	5.22
Construction materials	0.70
Diversified consumer services	0.93
Diversified financial services	5.16
Electric utilities	2.66
Energy equipment & services	4.90
Food & staples retailing	1.58
Food products	2.49
Health care equipment & supplies	3.01
Health care providers & services	2.30
Hotels, restaurants & leisure	2.53
Household products	2.01
Insurance	2.43
Internet & catalog retail	1.40
IT services	2.16
Life sciences tools & services	0.51
Machinery	1.93
Media	5.64
Multiline retail	1.42
Oil, gas & consumable fuels	7.12
Pharmaceuticals	4.98
Real estate investment trust (REIT)	0.89
Road & rail	1.47
Semiconductors & semiconductor equipment	3.16
Software	3.75
Specialty retail	0.99
Textiles, apparel & luxury goods	1.67
Total common stocks	97.11	%
Short-term investment	3.12
Investment of cash collateral from securities loaned	0.64
Total investments	100.87	%
Liabilities, in excess of cash and other assets	(0.87	)
Net assets	100.00	%

UBS U.S. Large Cap Equity Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks: 97.11%
Aerospace & defense: 5.47%
Boeing Co.		54,600	$	4,004,910
General Dynamics Corp.		66,700		4,429,547
Textron, Inc.		142,400		2,632,976
				11,067,433
Air freight & logistics: 1.79%
FedEx Corp.		43,400		3,624,334
Automobiles: 1.22%
General Motors Co.*		121,400		2,460,778
Biotechnology: 3.67%
Acorda Therapeutics, Inc.*		56,100		1,337,424
Alexion Pharmaceuticals, Inc.*		37,700		2,695,550
Amylin Pharmaceuticals, Inc.*		100,000		1,138,000
Gilead Sciences, Inc.*		55,300		2,263,429
				7,434,403
Capital markets: 2.46%
Invesco Ltd.		116,100		2,332,449
Morgan Stanley		174,600		2,641,698
				4,974,147
Chemicals: 3.19%
Celanese Corp., Series A		76,900		3,404,363
Dow Chemical Co.		105,700		3,039,932
				6,444,295
Commercial banks: 4.31%
US Bancorp		115,500		3,124,275
Wells Fargo & Co.		203,200		5,600,192
				8,724,467
Communications equipment: 1.99%
Cisco Systems, Inc.		202,400		3,659,392
QUALCOMM, Inc.		6,600		361,020
				4,020,412
Computers & peripherals: 5.22%
Apple, Inc.*		20,400		8,262,000
Hewlett-Packard Co.		89,300		2,300,368
				10,562,368
Construction materials: 0.70%
Martin Marietta Materials, Inc.¹		18,900		1,425,249
Diversified consumer services: 0.93%
Apollo Group, Inc., Class A*		35,100		1,890,837

	Shares		Value
Diversified financial services: 5.16%
Citigroup, Inc.		155,530	$	4,091,994
CME Group, Inc.		8,700		2,119,929
JPMorgan Chase & Co.		127,200		4,229,400
				10,441,323
Electric utilities: 2.66%
Edison International		62,500		2,587,500
NextEra Energy, Inc.		46,000		2,800,480
				5,387,980
Energy equipment & services: 4.90%
Baker Hughes, Inc.		45,000		2,188,800
Ensco PLC ADR		55,700		2,613,444
McDermott International, Inc.*		222,700		2,563,277
Noble Corp.*		84,600		2,556,612
				9,922,133
Food & staples retailing: 1.58%
Kroger Co.		131,600		3,187,352
Food products: 2.49%
Kraft Foods, Inc., Class A		135,100		5,047,336
Health care equipment & supplies: 3.01%
Baxter International, Inc.		52,500		2,597,700
Medtronic, Inc.		91,200		3,488,400
				6,086,100
Health care providers & services: 2.30%
HCA Holdings, Inc.*		82,800		1,824,084
UnitedHealth Group, Inc.		55,800		2,827,944
				4,652,028
Hotels, restaurants & leisure: 2.53%
Carnival Corp.		87,900		2,869,056
International Game Technology		131,200		2,256,640
				5,125,696
Household products: 2.01%
Colgate-Palmolive Co.		44,100		4,074,399
Insurance: 2.43%
Aflac, Inc.		55,000		2,379,300
MetLife, Inc.		81,400		2,538,052
				4,917,352
Internet & catalog retail: 1.40%
Amazon.com, Inc.*		16,400		2,838,840

UBS U.S. Large Cap Equity Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks—(Concluded)
IT services: 2.16%
ServiceSource International, Inc.*		71,500	$	1,121,835
Visa, Inc., Class A		32,000		3,248,960
				4,370,795
Life sciences tools & services: 0.51%
Bio-Rad Laboratories, Inc., Class A*		10,700		1,027,628
Machinery: 1.93%
Illinois Tool Works, Inc.		83,600		3,904,956
Media: 5.64%
Comcast Corp., Class A		187,300		4,440,883
Time Warner, Inc.		120,800		4,365,712
Viacom, Inc., Class B		57,400		2,606,534
				11,413,129
Multiline retail: 1.42%
Kohl's Corp.		58,100		2,867,235
Oil, gas & consumable fuels: 7.12%
EOG Resources, Inc.		31,500		3,103,065
Exxon Mobil Corp.		50,600		4,288,856
Hess Corp.		56,800		3,226,240
Peabody Energy Corp.		52,000		1,721,720
Ultra Petroleum Corp.*		69,477		2,058,603
				14,398,484
Pharmaceuticals: 4.98%
Allergan, Inc.		21,900		1,921,506
Hospira, Inc.*		71,900		2,183,603
Merck & Co., Inc.		106,200		4,003,740
Teva Pharmaceutical Industries Ltd. ADR		48,700		1,965,532
				10,074,381
Real estate investment trust (REIT): 0.89%
Annaly Capital Management, Inc.		112,800		1,800,288

	Shares		Value
Road & rail: 1.47%
Hertz Global Holdings, Inc.*		253,800	$	2,974,536
Semiconductors & semiconductor equipment: 3.16%
Atmel Corp.*		123,200		997,920
Broadcom Corp., Class A*		63,000		1,849,680
Intersil Corp., Class A		171,100		1,786,284
Skyworks Solutions, Inc.*		108,000		1,751,760
				6,385,644
Software: 3.75%
Adobe Systems, Inc.*		147,800		4,178,306
Symantec Corp.*		218,100		3,413,265
				7,591,571
Specialty retail: 0.99%
GameStop Corp., Class A*		82,800		1,997,964
Textiles, apparel & luxury goods: 1.67%
Coach, Inc.		55,400		3,381,616
Total common stocks (cost $188,620,966)				196,497,489
Short-term investment: 3.12%
Investment company: 3.12%
UBS Cash Management Prime Relationship Fund²(cost $6,305,582)		6,305,582		6,305,582
Investment of cash collateral from securities loaned: 0.64%
UBS Private Money Market Fund LLC²(cost $1,291,012)		1,291,012		1,291,012
Total investments: 100.87% (cost $196,217,560)				204,094,083
Liabilities, in excess of cash and other assets: (0.87)%				(1,767,627	)
Net assets: 100.00%			$	202,326,456

Notes to portfolio of investments

Aggregate cost for federal income tax purposes was substantially the same as for book purposes; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	22,701,492
Gross unrealized depreciation		(14,824,969	)
Net unrealized appreciation of investments	$	7,876,523

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 71.

* Non-income producing security.

¹ Security, or portion thereof, was on loan at December 31, 2011.

UBS U.S. Large Cap Equity Fund

Portfolio of investments

December 31, 2011 (unaudited)

Concluded

² The table below details the Fund's investments in funds advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Funds.

Security description	Value 06/30/11		Purchases during the six months ended 12/31/11		Sales during the six months ended 12/31/11		Value 12/31/11		Income earned from affiliate for the six months ended 12/31/11
UBS Cash Management Prime Relationship Fund	$	3,069,181	$	29,889,415	$	26,653,014	$	6,305,582	$	1,789
UBS Private Money Market Fund LLC^a		10,614,564		33,959,901		43,283,453		1,291,012		275
	$	13,683,745	$	63,849,316	$	69,936,467	$	7,596,594	$	2,064

^a The adviser does earn a management fee from this affiliated fund, and any income earned is net of expenses. Please see the Notes to financial statements for further information.

The following is a summary of the inputs used as of December 31, 2011 in valuing the Fund's investments:

Description	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	196,497,489	$	—	$	—	$	196,497,489
Short-term investment		—		6,305,582		—		6,305,582
Investment of cash collateral from securities loaned		—		1,291,012		—		1,291,012
Total	$	196,497,489	$	7,596,594	$	—	$	204,094,083

See accompanying notes to financial statements.
63

UBS U.S. Small Cap Growth Fund

Portfolio performance

For the six months ended December 31, 2011, Class A shares of UBS U.S. Small Cap Growth Fund (the "Fund") declined 9.63% (Class A shares declined 14.59% after the deduction of the maximum sales charge), while Class Y shares declined 9.50%. The Fund's benchmark, the Russell 2000 Growth Index (the "Index"), declined 10.59% 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 66; please note that the Fund's returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares, while the Index returns do not reflect the deduction of fees and expenses.)

Both the Fund and its benchmark posted negative returns during the review period; however, the Fund did outperform its benchmark, primarily due to stock selection decisions.

Portfolio performance summary¹

What worked

• Stock selection in health care was the main driver of relative returns. Though the sector as a whole declined, the Fund's health care names showed gains during the period.

– Shares of Pharmasset, a biotechnology company, rose during the six-month period and was a large contributor to performance. (For details, see "Portfolio highlights.")

– Questcor Pharmaceuticals was up sharply after the company reported strong third quarter results that exceeded consensus estimates. Earnings were driven by sales growth of Acthar, a drug developed for the treatment of multiple sclerosis and nephrotic syndrome.

– ViroPharma, a biotechnology company, saw its shares rise after announcing a supplementary NDA (New Drug Application) approval for its Vancocin product. The new label should qualify Vancocin for an additional three years of market exclusivity.

• The Fund's small cash position contributed positively to performance as the equity market declined during the summer.

• An underweight to energy stocks was beneficial for results during the six months. The Fund's sector allocations are a by-product of our bottom-up stock selection process. As many energy stocks underperformed, the Fund benefited from its reduced exposure to these names.

• Stock selection decisions within the information technology sector were positive for performance. OSI Systems (for details, see "Portfolio highlights") generated solid performance, as did Taleo Corp. The latter, a provider of on-demand talent management solutions, gained after its competitor, SuccessFactors Inc., agreed to be acquired by SAP for $3.4 billion.

What didn't work

• Stock selection in the consumer staples sector detracted from relative returns. Notably, Diamond Foods, a branded nut and snack products company, saw its shares fall amid questions about how Diamond compensates its walnut growers. Investors grew concerned that the walnut issue would lead to a delay or cancellation of the previously announced acquisition of Pringles, as well as a lower stock price. We sold out of the position towards the end of the reporting period.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 2.

UBS U.S. Small Cap Growth Fund

• Several of the Fund's information technology holdings underperformed during the period.

– Polycom Inc., a supplier of video and voice conferencing solutions, saw its shares fall after the company announced increased operating expenses in 2012.

– Shares of Rovi Corp., a provider of solutions to search, manage and protect digital media, declined after management provided a cautious 2012 outlook.

– Acme Packet, a provider of networking equipment, underperformed as investors worried that the company's service provider customers remain cautious on capital expenditures.

• Certain consumer discretionary holdings generated poor results during the six months. Notably, the stock price of Imax Corp. was under pressure due to weaker-than-expected box office results. We added to our position during the dip. (For details, see "Portfolio highlights.")

Portfolio highlights

• Pharmasset's positive drug trials increased conviction for its hepatitis C virus inhibitor. Shares were up strongly after Gilead, the largest maker of HIV medicines, agreed to buy Pharmasset at a significant premium in the fourth quarter. Gilead's purchase shows that the company is intent on becoming the leader in hepatitis medicines. We sold out of this position prior to period end, as we felt that Pharmasset's upside potential was capped when it was purchased by Gilead.

• OSI Systems Inc. is a manufacturer of security inspection systems and medical monitoring systems. Its shares rose after the company reported strong quarterly results with strong bookings and backlog growth. The company recently announced a major deal with the port of Puerto Rico, in which OSI will provide equipment, as well as turnkey cargo screening services at the port. The company is also in the process of launching a new CT scanner for airport baggage screening, which can operate at three times the speed of current scanners with similar accuracy rates.

• IMAX designs and manufactures projection and sound systems for large-format motion picture presentation and production in both 2D and 3D formats. IMAX stands to benefit from the recent trend toward premium movie-going experiences. Several developments should lead to greater adoption of the IMAX platform by studios and operators. These include a lower cost to convert films and theatre screens to IMAX, as well as greater consumer acceptance. The company's business model now includes a percentage of the box office revenues, which, in our view, should allow IMAX to grow profitability.

UBS U.S. Small Cap Growth Fund

Average annual total returns for periods ended 12/31/11 (unaudited)

	6 months			1 year			5 years			10 years
Before deducting maximum sales charge
Class A¹		(9.63	)%		(0.55	)%		1.32	%		4.81	%
Class B²		(9.93	)		(1.33	)		0.58			4.35⁵
Class C³		(9.95	)		(1.26	)		0.57			4.03
Class Y⁴		(9.50	)		(0.33	)		1.58			5.07
After deducting maximum sales charge
Class A¹		(14.59	)%		(6.04	)%		0.17	%		4.22	%
Class B²		(14.43	)		(6.27	)		0.21			4.35⁵
Class C³		(10.85	)		(2.25	)		0.57			4.03
Russell 2000 Growth Index⁶		(10.59	)%		(2.91	)%		2.09	%		4.48	%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2011 prospectuses were as follows: Class A—1.55% and 1.41%; Class B—2.26% and 2.16%; Class C—2.38% and 2.16%; Class Y—1.14% and 1.16%. Net expenses reflect fee waivers and/or expense reimbursements/recoupments, if any, pursuant to an agreement that is in effect to cap the expenses. The Trust, with respect to the Fund, and UBS Global Asset Management (Americas) Inc., the Fund's investment advisor ("UBS Global AM (Americas)" or 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 expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and security loan fees for securities sold short) to the extent necessary so that the Fund's ordinary operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions , extraordinary expenses and dividend expense and security loan fees for securities sold short), through the period ending October 27, 2012, do not exceed 1.40% for Class A shares, 2.15% for Class B shares, 2.15% for Class C shares and 1.15% for Class Y shares. 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 Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

⁵ Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁶ The Russell 2000 Growth Index is designed to measure the performance of the small-cap growth segment of the US equity universe. It includes those Russell 2000 Index companies with higher price-to-value ratios and higher forecasted growth values. The Russell 2000 Growth Index is constructed to provide a comprehensive and unbiased barometer for the small-cap growth segment. The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set and that the represented companies continue to reflect growth characteristics. Investors should note that indices do not reflect the deduction of fees and expenses.

The Fund invests in IPOs which may have a magnified impact on performance.

UBS U.S. Small Cap Growth Fund

Top ten equity holdings (unaudited)¹

As of December 31, 2011

	Percentage of net assets
OSI Systems, Inc.		2.5	%
SM Energy Co.		2.2
Ultimate Software Group, Inc.		1.9
Taleo Corp., Class A		1.8
The Men's Wearhouse, Inc.		1.8
Zoll Medical Corp.		1.7
Tenneco, Inc.		1.7
Cepheid, Inc.		1.7
HMS Holdings Corp.		1.6
Chart Industries, Inc.		1.6
Total		18.5	%

Industry diversification (unaudited)²

As a percentage of net assets as of December 31, 2011

Common stocks
Air freight & logistics	1.26	%
Auto components	1.72
Biotechnology	6.52
Chemicals	2.38
Commercial banks	1.05
Commercial services & supplies	1.06
Communications equipment	5.03
Computers & peripherals	1.45
Construction & engineering	1.28
Containers & packaging	1.54
Distributors	1.38
Electrical equipment	2.25
Electronic equipment, instruments & components	4.63
Energy equipment & services	2.66
Food & staples retailing	2.01
Food products	1.62
Health care equipment & supplies	4.95
Health care providers & services	6.18
Health care technology	0.95
Hotels, restaurants & leisure	4.51
Household durables	0.54
Internet & catalog retail	0.55
Internet software & services	0.54
Machinery	5.24
Media	1.51
Metals & mining	0.47
Oil, gas & consumable fuels	6.45
Pharmaceuticals	3.99
Real estate investment trust (REIT)	1.47
Road & rail	2.26
Semiconductors & semiconductor equipment	5.04
Software	10.85
Specialty retail	3.65
Textiles, apparel & luxury goods	1.18
Total common stocks	98.17	%
Investment company
iShares Russell 2000 Growth Index Fund	1.22
Short-term investment	1.05
Investment of cash collateral from securities loaned	5.85
Total investments	106.29	%
Liabilities, in excess of cash and other assets	(6.29	)
Net assets	100.00	%

¹Figures represent the direct investments of UBS U.S. Small Cap Growth Fund. Figures would be different if a breakdown of the underlying investment company was included.

² Figures represent the industry breakdown of direct investments of UBS U.S. Small Cap Growth Fund. Figures would be different if a breakdown of the underlying investment company's industry diversification was included.

UBS U.S. Small Cap Growth Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks: 98.17%
Air freight & logistics: 1.26%
Hub Group, Inc., Class A*		51,300	$	1,663,659
Auto components: 1.72%
Tenneco, Inc.*		76,100		2,266,258
Biotechnology: 6.52%
Amarin Corp. PLC ADR*		62,200		465,878
Ariad Pharmaceuticals, Inc.*		48,300		591,675
Cepheid, Inc.*		64,800		2,229,768
Emergent Biosolutions, Inc.*		36,100		607,924
Exact Sciences Corp.*		122,800		997,136
Halozyme Therapeutics, Inc.*		55,700		529,707
Incyte Corp. Ltd.*¹		46,500		697,965
Ironwood Pharmaceuticals, Inc.*		64,000		766,080
Medivation, Inc.*		17,300		797,703
Seattle Genetics, Inc.*¹		54,000		902,610
				8,586,446
Chemicals: 2.38%
LSB Industries, Inc.*		49,900		1,398,697
Solutia, Inc.*		100,900		1,743,552
				3,142,249
Commercial banks: 1.05%
Columbia Banking System, Inc.		18,500		356,495
Webster Financial Corp.		50,100		1,021,539
				1,378,034
Commercial services & supplies: 1.06%
Clean Harbors, Inc.*		22,000		1,402,060
Communications equipment: 5.03%
Acme Packet, Inc.*		27,800		859,298
Aruba Networks, Inc.*		87,300		1,616,796
Finisar Corp.*		92,421		1,547,590
Polycom, Inc.*		96,000		1,564,800
Riverbed Technology, Inc.*		44,000		1,034,000
				6,622,484
Computers & peripherals: 1.45%
Fusion-io, Inc.*¹		34,100		825,220
OCZ Technology Group, Inc.*¹		164,800		1,089,328
				1,914,548
Construction & engineering: 1.28%
EMCOR Group, Inc.		62,700		1,680,987
Containers & packaging: 1.54%
Rock-Tenn Co., Class A		35,156		2,028,501

	Shares		Value
Distributors: 1.38%
LKQ Corp.*		60,300	$	1,813,824
Electrical equipment: 2.25%
EnerSys*		54,400		1,412,768
Regal-Beloit Corp.		30,500		1,554,585
				2,967,353
Electronic equipment, instruments & components: 4.63%
InvenSense, Inc.*		116,600		1,161,336
OSI Systems, Inc.*		66,900		3,263,382
Tech Data Corp.*		33,900		1,674,999
				6,099,717
Energy equipment & services: 2.66%
Key Energy Services, Inc.*		138,600		2,144,142
Pioneer Drilling Co.*		140,900		1,363,912
				3,508,054
Food & staples retailing: 2.01%
Susser Holdings Corp.*		40,800		922,896
United Natural Foods, Inc.*		43,200		1,728,432
				2,651,328
Food products: 1.62%
TreeHouse Foods, Inc.*		32,600		2,131,388
Health care equipment & supplies: 4.95%
HeartWare International, Inc.*¹		10,100		696,900
Insulet Corp.*		71,200		1,340,696
ResMed, Inc.*		39,400		1,000,760
Thoratec Corp.*		35,300		1,184,668
Zoll Medical Corp.*		36,400		2,299,752
				6,522,776
Health care providers & services: 6.18%
Air Methods Corp.*		19,900		1,680,555
HMS Holdings Corp.*		67,735		2,166,165
IPC The Hospitalist Co., Inc.*		37,100		1,696,212
Mednax, Inc.*		13,200		950,532
PSS World Medical, Inc.*		68,100		1,647,339
				8,140,803
Health care technology: 0.95%
SXC Health Solutions Corp.*		22,132		1,250,015
Hotels, restaurants & leisure: 4.51%
BJ's Restaurants, Inc.*		35,500		1,608,860
Buffalo Wild Wings, Inc.*		22,300		1,505,473
Panera Bread Co., Class A*		8,800		1,244,760
Texas Roadhouse, Inc.		2,900		43,210
The Cheesecake Factory, Inc.*		52,300		1,535,005
				5,937,308

UBS U.S. Small Cap Growth Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks—(Concluded)
Household durables: 0.54%
Ryland Group, Inc.		45,200	$	712,352
Internet & catalog retail: 0.55%
Shutterfly, Inc.*¹		32,100		730,596
Internet software & services: 0.54%
VistaPrint NV*¹		23,100		706,860
Machinery: 5.24%
Chart Industries, Inc.*		40,000		2,162,800
Robbins & Myers, Inc.		44,400		2,155,620
Wabash National Corp.*		99,800		782,432
Woodward, Inc.		44,200		1,809,106
				6,909,958
Media: 1.51%
Imax Corp.*¹		108,700		1,992,471
Metals & mining: 0.47%
Steel Dynamics, Inc.		46,700		614,105
Oil, gas & consumable fuels: 6.45%
Approach Resources, Inc.*		60,400		1,776,364
Bonanza Creek Energy, Inc.*		95,000		1,187,500
Gulfport Energy Corp.*		53,700		1,581,465
SM Energy Co.		39,000		2,850,900
Whiting Petroleum Corp.*		23,600		1,101,884
				8,498,113
Pharmaceuticals: 3.99%
Auxilium Pharmaceuticals, Inc.*		41,400		825,102
Nektar Therapeutics*¹		65,200		364,794
Questcor Pharmaceuticals, Inc.*		50,100		2,083,158
ViroPharma, Inc.*		72,300		1,980,297
				5,253,351
Real estate investment trust (REIT): 1.47%
BioMed Realty Trust, Inc.		31,700		573,136
DuPont Fabros Technology, Inc.		32,900		796,838
Franklin Street Properties Corp.		56,600		563,170
				1,933,144
Road & rail: 2.26%
Knight Transportation, Inc.		69,400		1,085,416
Landstar System, Inc.		39,500		1,892,840
				2,978,256

	Shares		Value
Semiconductors & semiconductor equipment: 5.04%
Cavium, Inc.*		55,200	$	1,569,336
Cirrus Logic, Inc.*		73,500		1,164,975
Cymer, Inc.*		26,800		1,333,568
Mellanox Technologies Ltd.*		47,092		1,530,019
Skyworks Solutions, Inc.*		46,800		759,096
Veeco Instruments, Inc.*¹		13,900		289,120
				6,646,114
Software: 10.85%
Factset Research Systems, Inc.		19,600		1,710,688
Imperva, Inc.*		22,000		765,820
Jive Software, Inc.*		101,800		1,628,800
NICE Systems Ltd. ADR*		47,800		1,646,710
QLIK Technologies, Inc.*		71,600		1,732,720
Rovi Corp.*		11,900		292,502
Synchronoss Technologies, Inc.*		54,400		1,643,424
Taleo Corp., Class A*		62,600		2,421,994
Ultimate Software Group, Inc.*		37,704		2,455,285
				14,297,943
Specialty retail: 3.65%
Children's Place Retail Stores, Inc.*		17,300		918,976
Francesca's Holdings Corp.*¹		46,117		797,824
The Men's Wearhouse, Inc.		71,200		2,307,592
Wet Seal, Inc., Class A*		242,500		790,550
				4,814,942
Textiles, apparel & luxury goods: 1.18%
PVH Corp.		22,100		1,557,829
Total common stocks (cost $101,795,892)				129,353,826
Investment company: 1.22%
iShares Russell 2000 Growth Index Fund¹(cost $1,568,410)		19,000		1,600,370
Short-term investment: 1.05%
Investment company: 1.05%
UBS Cash Management Prime Relationship Fund²(cost $1,386,887)		1,386,887		1,386,887

UBS U.S. Small Cap Growth Fund

Portfolio of investments

December 31, 2011 (unaudited)

Concluded

	Shares		Value
Investment of cash collateral from securities loaned: 5.85%
UBS Private Money Market Fund LLC²(cost $7,707,904)		7,707,904	$	7,707,904
Total investments: 106.29% (cost $112,459,093)				140,048,987
Liabilities, in excess of cash and other assets: (6.29)%				(8,282,770	)
Net assets: 100.00%			$	131,766,217

Notes to portfolio of investments

Aggregate cost for federal income tax purposes was substantially the same as for book purposes; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	33,290,037
Gross unrealized depreciation		(5,700,143	)
Net unrealized appreciation of investments	$	27,589,894

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 71.

* Non-income producing security.

¹ Security, or portion thereof, was on loan at December 31, 2011.

² The table below details the Fund's investments in funds advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Fund.

Security description	Value 06/30/11		Purchases during the six months ended 12/31/11		Sales during the six months ended 12/31/11		Value 12/31/11		Income earned from affiliate for the six months ended 12/31/11
UBS Cash Management Prime Relationship Fund	$	1,436,127	$	25,215,261	$	25,264,501	$	1,386,887	$	1,510
UBS Private Money Market Fund LLC^a		17,143,760		60,816,247		70,252,103		7,707,904		1,017
	$	18,579,887	$	86,031,508	$	95,516,604	$	9,094,791	$	2,527

^a The adviser does earn a management fee from this affiliated fund, and any income earned is net of expenses. Please see the Notes to financial statements for further information.

The following is a summary of the inputs used as of December 31, 2011 in valuing the Fund's investments:

Description	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	129,353,826	$	—	$	—	$	129,353,826
Investment company		1,600,370		—		—		1,600,370
Short-term investment		—		1,386,887		—		1,386,887
Investment of cash collateral from securities loaned		—		7,707,904		—		7,707,904
Total	$	130,954,196	$	9,094,791	$	—	$	140,048,987

See accompanying notes to financial statements.
70

The UBS Funds

Portfolio acronyms

ADR American depositary receipt

CDI Chess depository interest

CVA Dutch certification—depository certificate

ETF Exchange Traded Fund

GDR Global depositary receipt

NPV No Par Value

OJSC Open joint stock company

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.

REIT				Real estate investment trust

SPDR				Standard & Poor's Depository Receipts

Currency abbreviations

AUD Australian Dollar

BRL Brazilian Real

CAD Canadian Dollar

CHF Swiss Franc

DKK Danish Krone

EUR Euro

GBP Great Britain Pound

HKD Hong Kong Dollar

JPY Japanese Yen

KRW Korean Won

MXN Mexican Peso

MYR Malaysian Ringgit

NOK Norwegian Krone

PLN Polish Zloty

SEK Swedish Krona

SGD Singapore Dollar

THB Thai Baht

TWD Taiwan Dollar

USD United States Dollar

ZAR South African Rand

See accompanying notes to financial statements
71

The UBS Funds

December 31, 2011 (unaudited)

Explanation of expense disclosure

The example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2011 to December 31, 2011.

Actual expenses

Hypothetical example for comparison purposes

This projection assumes that annualized expense ratios were in effect during the period July 1, 2011 to December 31, 2011.

The UBS Funds

December 31, 2011 (unaudited)

			Beginning account value July 1, 2011		Ending account value December 31, 2011		Expenses paid during period* 07/01/11 – 12/31/11		Expense ratio during period
UBS Global Equity Fund
	Class A	Actual	$	1,000.00	$	871.50	$	7.06		1.50	%
		Hypothetical (5% annual return before expenses)		1,000.00		1,017.60		7.61		1.50
	Class B	Actual		1,000.00		868.30		10.57		2.25
		Hypothetical (5% annual return before expenses)		1,000.00		1,013.83		11.39		2.25
	Class C	Actual		1,000.00		868.30		10.57		2.25
		Hypothetical (5% annual return before expenses)		1,000.00		1,013.83		11.39		2.25
	Class Y	Actual		1,000.00		872.20		5.69		1.21
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.05		6.14		1.21
UBS International Equity Fund
	Class A	Actual		1,000.00		808.90		5.68		1.25
		Hypothetical (5% annual return before expenses)		1,000.00		1,018.85		6.34		1.25
	Class B	Actual		1,000.00		806.00		9.08		2.00
		Hypothetical (5% annual return before expenses)		1,000.00		1,015.08		10.13		2.00
	Class C	Actual		1,000.00		806.40		9.08		2.00
		Hypothetical (5% annual return before expenses)		1,000.00		1,015.08		10.13		2.00
	Class Y	Actual		1,000.00		810.20		4.55		1.00
		Hypothetical (5% annual return before expenses)		1,000.00		1,020.11		5.08		1.00
UBS Market Neutral Multi-Strategy Fund
	Class A	Actual		1,000.00		989.20		19.30		3.86
		Hypothetical (5% annual return before expenses)		1,000.00		1,005.73		19.46		3.86
	Class C	Actual		1,000.00		985.00		22.95		4.60
		Hypothetical (5% annual return before expenses)		1,000.00		1,002.01		23.15		4.60
	Class Y	Actual		1,000.00		990.30		18.01		3.60
		Hypothetical (5% annual return before expenses)		1,000.00		1,007.04		18.16		3.60

* Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period).

The UBS Funds

December 31, 2011 (unaudited)

			Beginning account value July 1, 2011		Ending account value December 31, 2011		Expenses paid during period* 07/01/11 – 12/31/11		Expense ratio during period
UBS U.S. Equity Alpha Fund
	Class A	Actual	$	1,000.00	$	927.20	$	10.17		2.10	%
		Hypothetical (5% annual return before expenses)		1,000.00		1,014.58		10.63		2.10
	Class C	Actual		1,000.00		922.50		13.82		2.86
		Hypothetical (5% annual return before expenses)		1,000.00		1,010.76		14.46		2.86
	Class Y	Actual		1,000.00		928.10		9.01		1.86
		Hypothetical (5% annual return before expenses)		1,000.00		1,015.79		9.42		1.86
UBS U.S. Equity Opportunity Fund
	Class A	Actual		1,000.00		895.70		5.72		1.20
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.10		6.09		1.20
	Class B	Actual		1,000.00		891.20		9.27		1.95
		Hypothetical (5% annual return before expenses)		1,000.00		1,015.33		9.88		1.95
	Class C	Actual		1,000.00		892.20		9.27		1.95
		Hypothetical (5% annual return before expenses)		1,000.00		1,015.33		9.88		1.95
	Class Y	Actual		1,000.00		896.30		4.53		0.95
		Hypothetical (5% annual return before expenses)		1,000.00		1,020.36		4.82		0.95
UBS U.S. Large Cap Equity Fund
	Class A	Actual		1,000.00		924.00		5.80		1.20
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.10		6.09		1.20
	Class B	Actual		1,000.00		920.20		9.41		1.95
		Hypothetical (5% annual return before expenses)		1,000.00		1,015.33		9.88		1.95
	Class C	Actual		1,000.00		920.00		9.41		1.95
		Hypothetical (5% annual return before expenses)		1,000.00		1,015.33		9.88		1.95
	Class Y	Actual		1,000.00		925.40		4.60		0.95
		Hypothetical (5% annual return before expenses)		1,000.00		1,020.36		4.82		0.95

* Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period).

The UBS Funds

December 31, 2011 (unaudited)

			Beginning account value July 1, 2011		Ending account value December 31, 2011		Expenses paid during period* 07/01/11 – 12/31/11		Expense ratio during period
UBS U.S. Small Cap Growth Fund
	Class A	Actual	$	1,000.00	$	903.70	$	6.70		1.40	%
		Hypothetical (5% annual return before expenses)		1,000.00		1,018.10		7.10		1.40
	Class B	Actual		1,000.00		900.70		10.27		2.15
		Hypothetical (5% annual return before expenses)		1,000.00		1,014.33		10.89		2.15
	Class C	Actual		1,000.00		900.50		10.27		2.15
		Hypothetical (5% annual return before expenses)		1,000.00		1,014.33		10.89		2.15
	Class Y	Actual		1,000.00		905.00		5.51		1.15
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.36		5.84		1.15

* Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period).

The UBS Funds

Financial statements

Statement of assets and liabilities
December 31, 2011 (unaudited)

	UBS Global Equity Fund		UBS International Equity Fund		UBS Market Neutral Multi-Strategy Fund		UBS U.S. Equity Alpha Fund
Assets:
Investments, at cost:
Unaffiliated issuers	$	92,827,425	$	20,222,361	$	14,416,364	$	23,692,017
Affiliated issuers		708,376		391,107		8,171,641		198,205
Investments of cash collateral in affiliated issuers received from securities loaned, at cost¹		2,536,840		644,154		—		—
Foreign currency, at cost		702,282		145,781		430,003		—
	$	96,774,923	$	21,403,403	$	23,018,008	$	23,890,222
Investments, at value:
Unaffiliated issuers	$	87,779,037	$	19,806,172	$	13,379,642	$	24,431,588
Affiliated issuers		708,376		391,107		8,171,641		198,205
Investments of cash collateral in affiliated issuers received from securities loaned, at value¹		2,536,840		644,154		—		—
Foreign currency, at value		699,008		146,641		430,005		—
Cash		—		123		40,739		—
Receivables:
Investment securities sold		521,608		233,264		295,184		1,018,161
Foreign tax reclaims		309,517		108,485		4,790		—
Dividends		124,022		25,438		23,283		61,157
Interest		4,096		406		832		15
Fund shares sold		1,946		30,501		39		2,514
Due from advisor		—		4,872		100		—
Cash collateral for futures contracts		—		—		63,892		—
Cash collateral for securities sold short		—		—		9,727,514		37,291
Unrealized appreciation on forward foreign currency contracts		444,993		84,931		22,440		—
Other assets		35,294		30,170		21,355		25,584
Total assets		93,164,737		21,506,264		32,181,456		25,774,515
Liabilities:
Payables:
Cash collateral from securities loaned		2,536,840		644,154		—		—
Investment securities purchased		284,663		211,920		379,825		236,749
Investment advisory and administration fee		57,376		—		—		3,326
Fund shares redeemed		97,619		8,720		24,114		795,480
Custody and fund accounting fees		8,611		8,262		14,585		11,031
Distribution and service fees		26,427		2,020		1,248		5,755
Trustees' fees		5,538		4,092		4,026		4,161
Dividends payable for securities sold short		—		—		9,954		2,530
Due to custodian		—		—		—		86
Due to broker		—		—		150,152		—
Accrued expenses		128,988		73,372		51,604		64,030
Securities sold short, at value²		—		—		13,443,706		5,565,082
Unrealized depreciation on forward foreign currency contracts		109,202		40,129		19,262		—
Total liabilities		3,255,264		992,669		14,098,476		6,688,230
Net assets	$	89,909,473	$	20,513,595	$	18,082,980	$	19,086,285

¹ The market value of securities loaned by UBS Global Equity Fund, UBS International Equity Fund, UBS U.S. Equity Opportunity Fund, UBS U.S. Large Cap Equity Fund and UBS U.S. Small Cap Growth Fund, as of December 31, 2011 was $2,460,742, $616,076, $423,482, $1,268,472 and $7,497,705, respectively.

² Proceeds from securities sold short by UBS Market Neutral Multi-Strategy Fund and UBS U.S. Equity Alpha Fund were $14,506,472 and $5,025,201, respectively.

The UBS Funds

Financial statements

	UBS U.S. Equity Opportunity Fund		UBS U.S. Large Cap Equity Fund		UBS U.S. Small Cap Growth Fund
Assets:
Investments, at cost:
Unaffiliated issuers	$	42,160,047	$	188,620,966	$	103,364,302
Affiliated issuers		471,927		6,305,582		1,386,887
Investments of cash collateral in affiliated issuers received from securities loaned, at cost¹		887,661		1,291,012		7,707,904
Foreign currency, at cost		—		—		—
	$	43,519,635	$	196,217,560	$	112,459,093
Investments, at value:
Unaffiliated issuers	$	40,883,560	$	196,497,489	$	130,954,196
Affiliated issuers		471,927		6,305,582		1,386,887
Investments of cash collateral in affiliated issuers received from securities loaned, at value¹		887,661		1,291,012		7,707,904
Foreign currency, at value		—		—		—
Cash		—		38		—
Receivables:
Investment securities sold		24,651,641		776,815		438,957
Foreign tax reclaims		—		—		—
Dividends		86,319		328,742		20,448
Interest		278		1,382		30,529
Fund shares sold		904		67,341		285,314
Due from advisor		—		—		—
Cash collateral for futures contracts		—		—		—
Cash collateral for securities sold short		—		—		—
Unrealized appreciation on forward foreign currency contracts		—		—		—
Other assets		30,824		46,259		43,512
Total assets		67,013,114		205,314,660		140,867,747
Liabilities:
Payables:
Cash collateral from securities loaned		887,661		1,291,012		7,707,904
Investment securities purchased		24,002,179		1,353,345		583,937
Investment advisory and administration fee		10,128		129,057		96,437
Fund shares redeemed		60,930		102,763		613,616
Custody and fund accounting fees		6,778		14,293		8,688
Distribution and service fees		11,361		5,945		8,422
Trustees' fees		4,467		7,621		6,152
Dividends payable for securities sold short		—		—		—
Due to custodian		—		—		—
Due to broker		—		—		—
Accrued expenses		67,480		84,168		76,374
Securities sold short, at value²		—		—		—
Unrealized depreciation on forward foreign currency contracts		—		—		—
Total liabilities		25,050,984		2,988,204		9,101,530
Net assets	$	41,962,130	$	202,326,456	$	131,766,217

See accompanying notes to financial statements.
77

The UBS Funds

Financial statements

Statement of assets and liabilities (continued)
December 31, 2011 (unaudited)

	UBS Global Equity Fund			UBS International Equity Fund			UBS Market Neutral Multi-Strategy Fund¹			UBS U.S. Equity Alpha Fund¹
Net assets consist of:
Beneficial interest	$	123,534,913		$	34,327,732		$	18,974,859		$	41,680,555
Accumulated undistributed net investment income (loss)		373,977			97,418			(272,303	)		25,196
Accumulated net realized loss		(29,323,381	)		(13,568,198	)		(657,864	)		(22,819,156	)
Net unrealized appreciation (depreciation)		(4,676,036	)		(343,357	)		38,288			199,690
Net assets	$	89,909,473		$	20,513,595		$	18,082,980		$	19,086,285
Class A:
Net assets	$	53,618,799		$	6,353,684		$	2,987,514		$	11,072,639
Shares outstanding		4,861,234			977,730			311,692			1,337,803
Net asset value and redemption proceeds per share	$	11.03		$	6.50		$	9.58		$	8.28
Offering price per share (NAV per share plus maximum sales charge)²	$	11.67		$	6.88		$	10.14		$	8.76
Class B:
Net assets	$	469,322		$	20,690			N/A			N/A
Shares outstanding		43,671			3,057			N/A			N/A
Net asset value and offering price per share	$	10.75		$	6.77			N/A			N/A
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)²	$	10.21		$	6.43			N/A			N/A
Class C:
Net assets	$	16,889,225		$	737,888		$	660,106		$	3,723,030
Shares outstanding		1,600,840			115,142			69,590			459,468
Net asset value and offering price per share	$	10.55		$	6.41		$	9.49		$	8.10
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)²	$	10.44		$	6.35		$	9.40		$	8.02
Class Y:
Net assets	$	18,932,127		$	13,401,333		$	14,435,360		$	4,290,616
Shares outstanding		1,673,383			2,056,157			1,499,728			519,739
Net asset value per share, offering price per share, and redemption proceeds per share²	$	11.31		$	6.52		$	9.63		$	8.26

¹ UBS Market Neutral Multi-Strategy Fund and UBS U.S. Equity Alpha Fund do not offer Class B shares.

² For Class A, the maximum sales charge is 5.50%. 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 $1,000,000 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%. Class Y has no contingent deferred sales charge.

The UBS Funds

Financial statements

	UBS U.S. Equity Opportunity Fund			UBS U.S. Large Cap Equity Fund			UBS U.S. Small Cap Growth Fund
Net assets consist of:
Beneficial interest	$	63,408,649		$	381,041,224		$	140,156,595
Accumulated undistributed net investment income (loss)		214,847			891,780			(408,507	)
Accumulated net realized loss		(20,379,310	)		(187,483,071	)		(35,571,765	)
Net unrealized appreciation (depreciation)		(1,282,056	)		7,876,523			27,589,894
Net assets	$	41,962,130		$	202,326,456		$	131,766,217
Class A:
Net assets	$	36,104,802		$	14,920,003		$	29,635,364
Shares outstanding		6,048,401			986,679			2,049,355
Net asset value and redemption proceeds per share	$	5.97		$	15.12		$	14.46
Offering price per share (NAV per share plus maximum sales charge)²	$	6.32		$	16.00		$	15.30
Class B:
Net assets	$	21,021		$	81,536		$	19,989
Shares outstanding		3,514			5,524			1,498
Net asset value and offering price per share	$	5.98		$	14.76		$	13.34
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)²	$	5.68		$	14.02		$	12.67
Class C:
Net assets	$	4,206,841		$	3,171,316		$	2,260,939
Shares outstanding		717,351			217,031			169,882
Net asset value and offering price per share	$	5.86		$	14.61		$	13.31
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)²	$	5.80		$	14.46		$	13.18
Class Y:
Net assets	$	1,629,466		$	184,153,601		$	99,849,925
Shares outstanding		271,605			12,110,255			6,630,118
Net asset value per share, offering price per share, and redemption proceeds per share²	$	6.00		$	15.21		$	15.06

See accompanying notes to financial statements.
79

The UBS Funds

Financial statements

Statement of operations
For the six months ended December 31, 2011 (unaudited)

	UBS Global Equity Fund			UBS International Equity Fund			UBS Market Neutral Multi-Strategy Fund			UBS U.S. Equity Alpha Fund
Investment income:
Dividends	$	963,281		$	199,087		$	147,918		$	323,932
Interest		93			85			—			—
Affiliated interest		423			310			5,151			148
Securities lending¹		84,202			6,882			—			—
Foreign tax withheld		(93,343	)		(15,209	)		(8,441	)		—
Total income		954,656			191,155			144,628			324,080
Expenses:
Advisory and administration	$	397,252		$	101,740		$	127,221		$	142,304
Service and distribution:
Class A		72,162			9,234			4,885			16,762
Class B		2,492			126			—			—
Class C		89,379			4,832			3,613			20,776
Transfer agency and related service fees:
Class A		48,175			2,846			3,245			5,935
Class B		196			75			—			—
Class C		20,102			646			69			3,892
Class Y		4,531			7,756			424			1,863
Custodian and fund accounting		31,586			27,813			43,355			32,734
Federal and state registration		24,712			23,637			15,754			18,486
Professional services		56,157			54,610			42,351			48,859
Shareholder reports		23,412			1,967			7,656			3,509
Trustees		10,971			8,138			7,970			8,257
Dividend expense and security loan fees for securities sold short		—			—			201,363			79,729
Interest expense		524			—			—			—
Other		14,222			9,916			10,237			5,758
Total expenses		795,873			253,336			468,143			388,864
Fee waivers and/or expense reimbursements by Advisor		(36,609	)		(123,373	)		(114,670	)		(106,761	)
Net expenses		759,264			129,963			353,473			282,103
Net investment income (loss)		195,392			61,192			(208,845	)		41,977
Net realized gain (loss) on:
Investments in unaffiliated issuers		(1,981,218	)		(423,212	)		256,476			984,326
Futures contracts		—			—			(220,551	)		—
Securities sold short		—			—			(309,445	)		(715,859	)
Forward foreign currency contracts		995,058			252,116			(8,142	)		—
Foreign currency transactions		(39,251	)		9,389			4,456			—
Net realized gain (loss)		(1,025,411	)		(161,707	)		(277,206	)		268,467
Change in net unrealized appreciation/depreciation on:
Investments		(14,036,551	)		(5,374,620	)		(1,836,665	)		(3,838,022	)
Futures contracts		—			—			(9,950	)		—
Securities sold short		—			—			2,141,289			940,106
Forward foreign currency contracts		509,386			80,857			(3,253	)		—
Translation of other assets and liabilities denominated in foreign currency		(31,909	)		(12,774	)		(2,134	)		—
Change in net unrealized appreciation/depreciation		(13,559,074	)		(5,306,537	)		289,287			(2,897,916	)
Net realized and unrealized gain (loss)		(14,584,485	)		(5,468,244	)		12,081			(2,629,449	)
Net decrease in net assets resulting from operations	$	(14,389,093	)	$	(5,407,052	)	$	(196,764	)	$	(2,587,472	)

¹ Includes affiliated income from UBS Private Money Market Fund LLC of $208, $59, $70, $275 and $1,017, for UBS Global Equity Fund, UBS International Equity Fund, UBS U.S. Equity Opportunity Fund, UBS U.S. Large Cap Equity Fund and UBS U.S. Small Cap Growth Fund, respectively.

The UBS Funds

Financial statements

	UBS U.S. Equity Opportunity Fund			UBS U.S. Large Cap Equity Fund			UBS U.S. Small Cap Growth Fund
Investment income:
Dividends	$	489,952		$	1,905,956		$	190,237
Interest		—			—			—
Affiliated interest		322			1,789			1,510
Securities lending¹		909			4,089			157,011
Foreign tax withheld		—			—			—
Total income		491,183			1,911,834			348,758
Expenses:
Advisory and administration	$	169,242		$	803,796		$	627,911
Service and distribution:
Class A		47,208			20,709			40,080
Class B		111			569			112
Class C		21,825			15,519			12,819
Transfer agency and related service fees:
Class A		21,603			7,787			40,222
Class B		67			136			90
Class C		3,602			1,606			3,600
Class Y		1,706			57,330			14,960
Custodian and fund accounting		20,110			40,510			28,236
Federal and state registration		23,134			25,740			24,539
Professional services		52,851			50,116			48,859
Shareholder reports		9,202			5,179			5,990
Trustees		8,872			15,139			12,261
Dividend expense and security loan fees for securities sold short		—			—			—
Interest expense		—			—			—
Other		6,749			15,670			12,718
Total expenses		386,282			1,059,806			872,397
Fee waivers and/or expense reimbursements by Advisor		(110,578	)		(40,838	)		(41,332	)
Net expenses		275,704			1,018,968			831,065
Net investment income (loss)		215,479			892,866			(482,307	)
Net realized gain (loss) on:
Investments in unaffiliated issuers		476,685			4,174,726			6,654,594
Futures contracts		—			—			—
Securities sold short		—			—			—
Forward foreign currency contracts		—			—			—
Foreign currency transactions		—			—			—
Net realized gain (loss)		476,685			4,174,726			6,654,594
Change in net unrealized appreciation/depreciation on:
Investments		(5,948,929	)		(22,783,659	)		(20,833,960	)
Futures contracts		—			—			—
Securities sold short		—			—			—
Forward foreign currency contracts		—			—			—
Translation of other assets and liabilities denominated in foreign currency		(5,569	)		—			—
Change in net unrealized appreciation/depreciation		(5,954,498	)		(22,783,659	)		(20,833,960	)
Net realized and unrealized gain (loss)		(5,477,813	)		(18,608,933	)		(14,179,366	)
Net decrease in net assets resulting from operations	$	(5,262,334	)	$	(17,716,067	)	$	(14,661,673	)

See accompanying notes to financial statements.
81

The UBS Funds

Financial statements

Statement of changes in net assets

	UBS Global Equity Fund						UBS International Equity Fund
	Six months ended December 31, 2011 (unaudited)			Year ended June 30, 2011			Six months ended December 31, 2011 (unaudited)			Year ended June 30, 2011
Operations:
Net investment income (loss)	$	195,392		$	241,094		$	61,192		$	296,211
Net realized gain (loss)		(1,025,411	)		23,488,783			(161,707	)		6,141,236
Change in net unrealized appreciation/depreciation		(13,559,074	)		3,698,892			(5,306,537	)		470,430
Net increase (decrease) in net assets from operations		(14,389,093	)		27,428,769			(5,407,052	)		6,907,877
Dividends and distributions to shareholders by class:
Class A:
Net investment income and net foreign currency gains		(53,767	)		(1,879,257	)		(133,700	)		(283,789	)
Net realized gain		—			—			—			—
Total Class A dividends and distributions		(53,767	)		(1,879,257	)		(133,700	)		(283,789	)
Class B:
Net investment income and net foreign currency gains		—			(9,881	)		—			—
Class C:
Net investment income and net foreign currency gains		—			(440,427	)		(6,054	)		(24,784	)
Net realized gain		—			—			—			—
Total Class C dividends and distributions		—			(440,427	)		(6,054	)		(24,784	)
Class Y:
Net investment income and net foreign currency gains		(102,576	)		(789,580	)		(323,365	)		(650,195	)
Net realized gain		—			—			—			—
Total Class Y dividends and distributions		(102,576	)		(789,580	)		(323,365	)		(650,195	)
Decrease in net assets from dividends and distributions		(156,343	)		(3,119,145	)		(463,119	)		(958,768	)
Beneficial interest transactions:
Proceeds from shares sold		1,295,309			3,549,078			1,345,599			3,572,353
Shares issued on reinvestment of dividends and distributions		149,853			2,899,995			450,533			929,537
Cost of shares redeemed		(8,857,536	)		(30,334,527	)		(3,897,048	)		(8,643,523	)
Redemption fees		3,392			721			2,586			2,247
Net increase (decrease) in net assets resulting from beneficial interest transactions		(7,408,982	)		(23,884,733	)		(2,098,330	)		(4,139,386	)
Increase (decrease) in net assets		(21,954,418	)		424,891			(7,968,501	)		1,809,723
Net assets, beginning of period		111,863,891			111,439,000			28,482,096			26,672,373
Net assets, end of period	$	89,909,473		$	111,863,891		$	20,513,595		$	28,482,096
Net assets include accumulated undistributed net investment income (loss)	$	373,977		$	334,928		$	97,418		$	499,345

The UBS Funds

Financial statements

	UBS Market Neutral Multi-Strategy Fund						UBS U.S. Equity Alpha Fund
	Six months ended December 31, 2011 (unaudited)			Year ended June 30, 2011			Six months ended December 31, 2011 (unaudited)			Year ended June 30, 2011
Operations:
Net investment income (loss)	$	(208,845	)	$	(468,231	)	$	41,977		$	72,847
Net realized gain (loss)		(277,206	)		4,637			268,467			6,366,117
Change in net unrealized appreciation/depreciation		289,287			(250,999	)		(2,897,916	)		3,461,657
Net increase (decrease) in net assets from operations		(196,764	)		(714,593	)		(2,587,472	)		9,900,621
Dividends and distributions to shareholders by class:
Class A:
Net investment income and net foreign currency gains		—			—			(13,232	)		—
Net realized gain		(1,900	)		—			—			—
Total Class A dividends and distributions		(1,900	)		—			(13,232	)		—
Class B:
Net investment income and net foreign currency gains		—			—			—			—
Class C:
Net investment income and net foreign currency gains		—			—			—			—
Net realized gain		(383	)		—			—			—
Total Class C dividends and distributions		(383	)		—			—			—
Class Y:
Net investment income and net foreign currency gains		—			—			(38,859	)		(35,347	)
Net realized gain		(8,249	)		—			—			—
Total Class Y dividends and distributions		(8,249	)		—			(38,859	)		(35,347	)
Decrease in net assets from dividends and distributions		(10,532	)		—			(52,091	)		(35,347	)
Beneficial interest transactions:
Proceeds from shares sold		395,691			28,856,571			393,252			1,854,588
Shares issued on reinvestment of dividends and distributions		2,071			—			50,929			35,347
Cost of shares redeemed		(2,060,752	)		(8,196,091	)		(11,239,060	)		(21,118,475	)
Redemption fees		283			7,096			1,488			2,172
Net increase (decrease) in net assets resulting from beneficial interest transactions		(1,662,707	)		20,667,576			(10,793,391	)		(19,226,368	)
Increase (decrease) in net assets		(1,870,003	)		19,952,983			(13,432,954	)		(9,361,094	)
Net assets, beginning of period		19,952,983			—			32,519,239			41,880,333
Net assets, end of period	$	18,082,980		$	19,952,983		$	19,086,285		$	32,519,239
Net assets include accumulated undistributed net investment income (loss)	$	(272,303	)	$	(63,458	)	$	25,196		$	35,310

See accompanying notes to financial statements.
83

The UBS Funds

Financial statements

Statement of changes in net assets (continued)

	UBS U.S. Equity Opportunity Fund						UBS U.S. Large Cap Equity Fund
	Six months ended December 31, 2011 (unaudited)			Year ended June 30, 2011			Six months ended December 31, 2011 (unaudited)			Year ended June 30, 2011
Operations:
Net investment income (loss)	$	215,479		$	420,082		$	892,866		$	1,865,151
Net realized gain		476,685			3,079,528			4,174,726			36,146,774
Change in net unrealized appreciation/depreciation		(5,954,498	)		8,981,555			(22,783,659	)		21,692,836
Net increase (decrease) in net assets from operations		(5,262,334	)		12,481,165			(17,716,067	)		59,704,761
Dividends and distributions to shareholders by class:
Class A:
Net investment income and net foreign currency gains		(390,688	)		(399,917	)		(85,957	)		(114,184	)
Class C:
Net investment income and net foreign currency gains		(6,536	)		(5,988	)		—			—
Class Y:
Net investment income and net foreign currency gains		(22,220	)		(19,421	)		(1,766,182	)		(1,583,968	)
Decrease in net assets from dividends and distributions		(419,444	)		(425,326	)		(1,852,139	)		(1,698,152	)
Beneficial interest transactions:
Proceeds from shares sold		350,342			471,989			11,908,180			40,477,462
Shares issued on reinvestment of dividends and distributions		371,455			373,492			1,839,436			1,683,123
Cost of shares redeemed		(3,447,265	)		(10,043,500	)		(21,862,050	)		(85,698,301	)
Redemption fees		189			927			11,651			19,317
Net decrease in net assets resulting from beneficial interest transactions		(2,725,279	)		(9,197,092	)		(8,102,783	)		(43,518,399	)
Increase (decrease) in net assets		(8,407,057	)		2,858,747			(27,670,989	)		14,488,210
Net assets, beginning of period		50,369,187			47,510,440			229,997,445			215,509,235
Net assets, end of period	$	41,962,130		$	50,369,187		$	202,326,456		$	229,997,445
Net assets include accumulated undistributed net investment income (loss)	$	214,847		$	418,812		$	891,780		$	1,851,053

The UBS Funds

Financial statements

	UBS U.S. Small Cap Growth Fund
	Six months ended December 31, 2011 (unaudited)			Year ended June 30, 2011
Operations:
Net investment income (loss)	$	(482,307	)	$	(1,140,998	)
Net realized gain		6,654,594			29,906,662
Change in net unrealized appreciation/depreciation		(20,833,960	)		28,817,918
Net increase (decrease) in net assets from operations		(14,661,673	)		57,583,582
Dividends and distributions to shareholders by class:
Class A:
Net investment income and net foreign currency gains		—			—
Class C:
Net investment income and net foreign currency gains		—			—
Class Y:
Net investment income and net foreign currency gains		—			—
Decrease in net assets from dividends and distributions		—			—
Beneficial interest transactions:
Proceeds from shares sold		12,129,892			35,363,698
Shares issued on reinvestment of dividends and distributions		—			—
Cost of shares redeemed		(19,213,050	)		(65,190,814	)
Redemption fees		13,556			20,306
Net decrease in net assets resulting from beneficial interest transactions		(7,069,602	)		(29,806,810	)
Increase (decrease) in net assets		(21,731,275	)		27,776,772
Net assets, beginning of period		153,497,492			125,720,720
Net assets, end of period	$	131,766,217		$	153,497,492
Net assets include accumulated undistributed net investment income (loss)	$	(408,507	)	$	73,800

See accompanying notes to financial statements.
85

The UBS Funds

Financial statements

Statement of cash flows
For the six months ended December 31, 2011 (unaudited)

	UBS Market Neutral Multi-Strategy Fund
Cash flows provided by operating activities:
Net decrease in net assets from operations	$	(196,764	)
Adjustments to reconcile net decrease in net assets from operations to net cash provided by operating activities:
Purchase of investment securities		(28,680,206	)
Proceeds from disposition of investment securities		29,422,208
Covers of investment securities sold short		(21,778,584	)
Proceeds from investment securities sold short		20,816,616
Proceeds of short-term investments, net		1,658,426
Change in net unrealized (appreciation)/depreciation on investments		1,836,665
Change in net unrealized (appreciation)/depreciation on investment securities sold short		(2,141,289	)
Change in net unrealized (appreciation)/depreciation on forward foreign currency contracts		3,253
Net realized (gain)/loss on investments		(256,476	)
Net realized (gain)/loss on investment securities sold short		309,445
Increase in cash collateral for futures contracts		(38,820	)
Decrease in cash collateral for securities sold short		837,315
Increase in foreign cash at value		(348,188	)
Increase in receivable due from advisor		(100	)
Decrease in payable for investment advisory and administration fee		(23,206	)
Increase in dividends receivable		(3,199	)
Decrease in interest receivable		285
Decrease in foreign tax reclaims receivable		1,345
Decrease in other assets		1,878
Increase in due to broker		254,289
Decrease in dividends payable for securities sold short		(3,299	)
Decrease in accrued expenses and other liabilities		(26,592	)
Net cash provided by operating activities		1,645,002
Cash flows used in financing activities:
Proceeds from shares issued		399,371
Payment on shares redeemed		(2,037,788	)
Redemption fees retained		283
Cash distributions paid to shareholders		(8,461	)
Net cash used in financing activities		(1,646,595	)
Net decrease in cash		(1,593	)
Cash:
Beginning of period		42,332
End of period	$	40,739

The UBS Funds

Financial statements

Statement of cash flows
For the six months ended December 31, 2011 (unaudited)

	UBS U.S. Equity Alpha Fund
Cash flows provided by operating activities:
Net decrease in net assets from operations	$	(2,587,472	)
Adjustments to reconcile net decrease in net assets from operations to net cash provided by operating activities:
Purchase of investment securities		(11,850,185	)
Proceeds from disposition of investment securities		22,728,480
Covers of investment securities sold short		(6,677,230	)
Proceeds from investment securities sold short		5,679,738
Proceeds of short-term investments, net		22,891
Change in net unrealized (appreciation)/depreciation on investments		3,838,022
Change in net unrealized (appreciation)/depreciation on investment securities sold short		(940,106	)
Net realized (gain)/loss on investments		(984,326	)
Net realized (gain)/loss on investment securities sold short		715,859
Decrease in cash collateral for securities sold short		216,680
Increase in dividends receivable		(141	)
Decrease in interest receivable		5
Decrease in dividends payable for securities sold short		(181	)
Increase in prepaid expenses and other assets		(12,354	)
Decrease in accrued expenses and other liabilities		(60,676	)
Net cash provided by operating activities		10,089,004
Cash flows used in financing activities:
Proceeds from shares issued		458,916
Payment on shares redeemed		(10,554,610	)
Redemption fees retained		1,488
Cash distributions paid to shareholders		(1,162	)
Net cash used in financing activities		(10,095,368	)
Net decrease in cash		(6,364	)
Cash:
Beginning of period		6,278
End of period	$	(86	)

See accompanying notes to financial statements.
87

UBS Global Equity Fund

Financial highlights

The table below sets forth financial data for one share of beneficial interest outstanding throughout each period presented.

	Class A
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	12.67		$	10.36		$	9.46		$	13.54		$	15.47		$	12.99
Income (loss) from investment operations:
Net investment income (loss)¹		0.03			0.03			0.05			0.10			0.15			0.13
Net realized and unrealized gain (loss) from investment activities		(1.66	)		2.61			1.12			(3.57	)		(2.08	)		2.47
Total income (loss) from investment operations		(1.63	)		2.64			1.17			(3.47	)		(1.93	)		2.60
Less dividends/distributions:
From net investment income		(0.01	)		(0.33	)		(0.27	)		(0.61	)		—			(0.12	)
Net asset value, end of period	$	11.03		$	12.67		$	10.36		$	9.46		$	13.54		$	15.47
Total investment return²		(12.85	)%		25.52	%		12.05	%		(24.86	)%		(12.48	)%		20.11	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.58	%³		1.53	%		1.55	%		1.48	%		1.31	%		1.35	%
Expenses after fee waivers and/or expense reimbursement		1.50	%³		1.50	%		1.50	%		1.25	%		1.25	%		1.25	%
Net investment income (loss)		0.49	%³		0.26	%		0.47	%		1.10	%		0.98	%		0.91	%
Supplemental data:
Net assets, end of period (000's)	$	53,619		$	67,172		$	64,979		$	72,280		$	117,601		$	168,208
Portfolio turnover rate		45	%		83	%		83	%		76	%		66	%		32	%
	Class B
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	12.38		$	10.08		$	9.22		$	13.13		$	15.11		$	12.69
Income (loss) from investment operations:
Net investment income (loss)¹		(0.01	)		(0.06	)		(0.04	)		0.02			0.02			0.01
Net realized and unrealized gain (loss) from investment activities		(1.62	)		2.54			1.09			(3.43	)		(2.00	)		2.43
Total income (loss) from investment operations		(1.63	)		2.48			1.05			(3.41	)		(1.98	)		2.44
Less dividends/distributions:
From net investment income		—			(0.18	)		(0.19	)		(0.50	)		—			(0.02	)
Net asset value, end of period	$	10.75		$	12.38		$	10.08		$	9.22		$	13.13		$	15.11
Total investment return²		(13.17	)%		24.59	%		11.27	%		(25.39	)%		(13.10	)%		19.25	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement/recoupment		2.25	%³		2.20	%		2.27	%		2.25	%		2.05	%		2.17	%
Expenses after fee waivers and/or expense reimbursement/recoupment		2.25	%³		2.23	%⁴		2.25	%		2.00	%		2.00	%		2.00	%
Net investment income (loss)		(0.26	)%³		(0.49	)%		(0.34	)%		0.26	%		0.17	%		0.10	%
Supplemental data:
Net assets, end of period (000's)	$	469		$	598		$	733		$	1,254		$	3,814		$	7,439
Portfolio turnover rate		45	%		83	%		83	%		76	%		66	%		32	%

¹ Calculated using the average shares method.

UBS Global Equity Fund

Financial highlights

	Class C
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	12.15		$	9.94		$	9.13		$	13.05		$	15.02		$	12.65
Income (loss) from investment operations:
Net investment income (loss)¹		(0.01	)		(0.06	)		(0.03	)		0.03			0.03			0.02
Net realized and unrealized gain (loss) from investment activities		(1.59	)		2.50			1.07			(3.44	)		(2.00	)		2.42
Total income (loss) from investment operations		(1.60	)		2.44			1.04			(3.41	)		(1.97	)		2.44
Less dividends/distributions:
From net investment income		—			(0.23	)		(0.23	)		(0.51	)		—			(0.07	)
Net asset value, end of period	$	10.55		$	12.15		$	9.94		$	9.13		$	13.05		$	15.02
Total investment return²		(13.17	)%		24.48	%		11.29	%		(25.46	)%		(13.12	)%		19.28	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.39	%³		2.32	%		2.34	%		2.30	%		2.11	%		2.14	%
Expenses after fee waivers and/or expense reimbursement		2.25	%³		2.25	%		2.25	%		2.00	%		2.00	%		2.00	%
Net investment income (loss)		(0.26	)%³		(0.49	)%		(0.28	)%		0.34	%		0.23	%		0.16	%
Supplemental data:
Net assets, end of period (000's)	$	16,889		$	20,863		$	20,499		$	22,519		$	35,900		$	52,378
Portfolio turnover rate		45	%		83	%		83	%		76	%		66	%		32	%
	Class Y
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	13.04		$	10.65		$	9.69		$	13.84		$	15.78		$	13.23
Income (loss) from investment operations:
Net investment income (loss)¹		0.05			0.08			0.08			0.13			0.19			0.17
Net realized and unrealized gain (loss) from investment activities		(1.72	)		2.68			1.16			(3.63	)		(2.13	)		2.52
Total income (loss) from investment operations		(1.67	)		2.76			1.24			(3.50	)		(1.94	)		2.69
Less dividends/distributions:
From net investment income		(0.06	)		(0.37	)		(0.28	)		(0.65	)		—			(0.14	)
Net asset value, end of period	$	11.31		$	13.04		$	10.65		$	9.69		$	13.84		$	15.78
Total investment return²		(12.78	)%		25.98	%		12.51	%		(24.52	)%		(12.29	)%		20.44	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement/recoupment		1.21	%³		1.15	%		1.15	%		1.08	%		0.96	%		0.99	%
Expenses after fee waivers and/or expense reimbursement/recoupment		1.21	%³		1.15	%		1.15	%		1.00	%		1.00	%⁴		0.99	%
Net investment income (loss)		0.78	%³		0.62	%		0.67	%		1.27	%		1.29	%		1.16	%
Supplemental data:
Net assets, end of period (000's)	$	18,932		$	23,230		$	25,227		$	66,646		$	164,307		$	180,027
Portfolio turnover rate		45	%		83	%		83	%		76	%		66	%		32	%

³ Annualized

⁴ The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Fund, not to exceed the expense cap.

See accompanying notes to financial statements.
89

UBS International Equity Fund

Financial highlights

The table below sets forth financial data for one share of beneficial interest outstanding throughout each period presented.

	Class A
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	8.21		$	6.62		$	6.48		$	9.97		$	12.99		$	10.98
Income (loss) from investment operations:
Net investment income (loss)¹		0.01			0.07			0.06			0.10			0.17			0.17
Net realized and unrealized gain (loss) from investment activities		(1.58	)		1.78			0.54			(2.89	)		(1.83	)		2.47
Total income (loss) from investment operations		(1.57	)		1.85			0.60			(2.79	)		(1.66	)		2.64
Less dividends/distributions:
From net investment income		(0.14	)		(0.26	)		(0.46	)		(0.16	)		(0.20	)		(0.11	)
From net realized gains		—			—			—			(0.54	)		(1.16	)		(0.52	)
Total dividends/distributions		(0.14	)		(0.26	)		(0.46	)		(0.70	)		(1.36	)		(0.63	)
Net asset value, end of period	$	6.50		$	8.21		$	6.62		$	6.48		$	9.97		$	12.99
Total investment return²		(19.11	)%		28.14	%		8.65	%		(26.75	)%		(13.93	)%		24.84	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.29	%³		2.04	%		1.76	%		1.57	%		1.32	%		1.38	%⁴
Expenses after fee waivers and/or expense reimbursement		1.25	%³		1.25	%		1.25	%		1.25	%		1.25	%		1.26	%⁴
Net investment income (loss)		0.40	%³		0.93	%		0.83	%		1.50	%		1.43	%		1.42	%
Supplemental data:
Net assets, end of period (000's)	$	6,354		$	9,207		$	6,875		$	7,809		$	17,023		$	26,564
Portfolio turnover rate		23	%		76	%		71	%		124	%		55	%		72	%
	Class B
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	8.40		$	6.60		$	6.49		$	9.79		$	12.81		$	10.82
Income (loss) from investment operations:
Net investment income (loss)¹		(0.01	)		(0.01	)		0.01			0.06			0.08			0.06
Net realized and unrealized gain (loss) from investment activities		(1.62	)		1.81			0.54			(2.82	)		(1.79	)		2.46
Total income (loss) from investment operations		(1.63	)		1.80			0.55			(2.76	)		(1.71	)		2.52
Less dividends/distributions:
From net investment income		—			—			(0.44	)		—			(0.15	)		(0.01	)
From net realized gains		—			—			—			(0.54	)		(1.16	)		(0.52	)
Total dividends/distributions		—			—			(0.44	)		(0.54	)		(1.31	)		(0.53	)
Net asset value, end of period	$	6.77		$	8.40		$	6.60		$	6.49		$	9.79		$	12.81
Total investment return²		(19.40	)%		27.27	%		7.85	%		(27.30	)%		(14.55	)%		23.97	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		3.55	%³		2.87	%		2.56	%		2.52	%		2.25	%		2.25	%⁴
Expenses after fee waivers and/or expense reimbursement		2.00	%³		2.00	%		2.00	%		2.00	%		2.00	%		2.01	%⁴
Net investment income (loss)		(0.31	)%³		(0.09	)%		0.08	%		0.93	%		0.67	%		0.51	%
Supplemental data:
Net assets, end of period (000's)	$	21		$	40		$	208		$	218		$	324		$	555
Portfolio turnover rate		23	%		76	%		71	%		124	%		55	%		72	%

¹ Calculated using the average shares method.

UBS International Equity Fund

Financial highlights

	Class C
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	8.02		$	6.47		$	6.34		$	9.69		$	12.71		$	10.76
Income (loss) from investment operations:
Net investment income (loss)¹		(0.01	)		0.03			0.01			0.05			0.09			0.08
Net realized and unrealized gain (loss) from investment activities		(1.54	)		1.72			0.53			(2.80	)		(1.79	)		2.42
Total income (loss) from investment operations		(1.55	)		1.75			0.54			(2.75	)		(1.70	)		2.50
Less dividends/distributions:
From net investment income		(0.06	)		(0.20	)		(0.41	)		(0.06	)		(0.16	)		(0.03	)
From net realized gains		—			—			—			(0.54	)		(1.16	)		(0.52	)
Total dividends/distributions		(0.06	)		(0.20	)		(0.41	)		(0.60	)		(1.32	)		(0.55	)
Net asset value, end of period	$	6.41		$	8.02		$	6.47		$	6.34		$	9.69		$	12.71
Total investment return²		(19.36	)%		27.14	%		7.86	%		(27.33	)%		(14.51	)%		23.85	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		3.08	%³		2.82	%		2.56	%		2.38	%		2.13	%		2.16	%⁴
Expenses after fee waivers and/or expense reimbursement		2.00	%³		2.00	%		2.00	%		2.00	%		2.00	%		2.01	%⁴
Net investment income (loss)		(0.32	)%³		0.32	%		0.10	%		0.75	%		0.75	%		0.66	%
Supplemental data:
Net assets, end of period (000's)	$	738		$	1,405		$	866		$	914		$	1,949		$	2,576
Portfolio turnover rate		23	%		76	%		71	%		124	%		55	%		72	%
	Class Y
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	8.25		$	6.65		$	6.51		$	10.05		$	13.07		$	11.04
Income (loss) from investment operations:
Net investment income (loss)¹		0.02			0.09			0.06			0.12			0.21			0.20
Net realized and unrealized gain (loss) from investment activities		(1.59	)		1.79			0.57			(2.91	)		(1.85	)		2.49
Total income (loss) from investment operations		(1.57	)		1.88			0.63			(2.79	)		(1.64	)		2.69
Less dividends/distributions:
From net investment income		(0.16	)		(0.28	)		(0.49	)		(0.21	)		(0.22	)		(0.14	)
From net realized gains		—			—			—			(0.54	)		(1.16	)		(0.52	)
Total dividends/distributions		(0.16	)		(0.28	)		(0.49	)		(0.75	)		(1.38	)		(0.66	)
Net asset value, end of period	$	6.52		$	8.25		$	6.65		$	6.51		$	10.05		$	13.07
Total investment return²		(18.98	)%		28.46	%		8.94	%		(26.62	)%		(13.63	)%		24.83	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.07	%³		1.78	%		1.55	%		1.42	%		1.13	%		1.16	%⁴
Expenses after fee waivers and/or expense reimbursement		1.00	%³		1.00	%		1.00	%		1.00	%		1.00	%		1.01	%⁴
Net investment income (loss)		0.65	%³		1.13	%		0.84	%		1.81	%		1.79	%		1.63	%
Supplemental data:
Net assets, end of period (000's)	$	13,401		$	17,829		$	18,724		$	66,665		$	129,573		$	172,150
Portfolio turnover rate		23	%		76	%		71	%		124	%		55	%		72	%

³ Annualized.

⁴ Includes interest expense of 0.01%.

See accompanying notes to financial statements.
91

UBS Market Neutral Multi-Strategy Fund

Financial highlights

The table below sets forth financial data for one share of beneficial interest outstanding throughout each period presented.

	Class A						Class C
	Six months ended December 31, 2011 (unaudited)			Year ended June 30, 2011			Six months ended December 31, 2011 (unaudited)			Year ended June 30, 2011
Net asset value, beginning of period	$	9.70		$	10.00		$	9.63		$	10.00
Income (loss) from investment operations:
Net investment loss¹		(0.11	)		(0.20	)		(0.15	)		(0.28	)
Net realized and unrealized gain (loss) from investment activities		0.00³			(0.12	)		0.02			(0.09	)
Total loss from investment operations		(0.11	)		(0.32	)		(0.13	)		(0.37	)
Redemption fees		0.00³			0.02			0.00³			0.00³
Less dividends/distributions:
From net realized gains		(0.01	)		—			(0.01	)		—
Net asset value, end of period	$	9.58		$	9.70		$	9.49		$	9.63
Total investment return²		(1.08	)%		(3.00	)%		(1.50	)%		(3.60	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		5.18	%⁴		5.26	%		5.77	%⁴		5.94	%
Expenses after fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		3.86	%⁴		4.13	%		4.60	%⁴		4.94	%
Expenses after fee waivers and/or expense reimbursement and before dividend expense and security loan fees for securities sold short		1.75	%⁴		1.75	%		2.50	%⁴		2.50	%
Net investment loss		(2.35	)%⁴		(2.07	)%		(3.11	)%⁴		(2.84	)%
Supplemental data:
Net assets, end of period (000's)	$	2,988		$	4,466		$	660		$	904
Portfolio turnover rate		144	%		460	%		144	%		460	%

	Class Y
	Six months ended December 31, 2011 (unaudited)			Year ended June 30, 2011
Net asset value, beginning of period	$	9.72		$	10.00
Income (loss) from investment operations:
Net investment loss¹		(0.10	)		(0.18	)
Net realized and unrealized gain (loss) from investment activities		0.02			(0.10	)
Total loss from investment operations		(0.08	)		(0.28	)
Less dividends/distributions:
From net realized gains		(0.01	)		—
Net asset value, end of period	$	9.63		$	9.72
Total investment return²		(0.97	)%		(2.70	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		4.77	%⁴		4.83	%
Expenses after fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		3.60	%⁴		3.82	%
Expenses after fee waivers and/or expense reimbursement and before dividend expense and security loan fees for securities sold short		1.50	%⁴		1.50	%
Net investment loss		(2.09	)%⁴		(1.81	)%
Supplemental data:
Net assets, end of period (000's)	$	14,435		$	14,583
Portfolio turnover rate		144	%		460	%

¹ Calculated using the average shares method.

³ Amount represents less than $0.005 per share.

⁴ Annualized.

See accompanying notes to financial statements.
92

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UBS U.S. Equity Alpha Fund

Financial highlights

The table below sets forth financial data for one share of beneficial interest outstanding throughout each period presented.

	Class A
	Six months ended December 31, 2011			Year ended June 30,												For the period ended
	(unaudited)			2011			2010			2009			2008			June 30, 2007³
Net asset value, beginning of period	$	8.94		$	7.01		$	6.31		$	8.82		$	11.55		$	10.00
Income (loss) from investment operations:
Net investment income (loss)¹		0.01			0.02			(0.01	)		0.04			0.05			0.02
Net realized and unrealized gain (loss) from investment activities		(0.66	)		1.91			0.71			(2.48	)		(2.10	)		1.55
Total income (loss) from investment operations		(0.65	)		1.93			0.70			(2.44	)		(2.05	)		1.57
Less dividends/distributions:
From net investment income		(0.01	)		—			—			(0.07	)		(0.03	)		(0.01	)
From net realized gains		—			—			—			—			(0.65	)		(0.01	)
Total dividends/distributions		(0.01	)		—			—			(0.07	)		(0.68	)		(0.02	)
Net asset value, end of period	$	8.28		$	8.94		$	7.01		$	6.31		$	8.82		$	11.55
Total investment return²		(7.28	)%		27.53	%		11.09	%		(27.52	)%		(18.49	)%		15.73	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		2.91	%⁴		2.54	%		2.44	%		2.47	%		1.93	%		1.93	%⁴
Expenses after fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		2.10	%⁴		2.03	%		2.24	%		2.24	%		1.93	%		1.88	%⁴
Expenses after fee waivers and/or expense reimbursement and before dividend expense and security loan fees for securities sold short		1.50	%⁴		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%⁴
Net investment income (loss)		0.36	%⁴		0.24	%		(0.10	)%		0.63	%		0.47	%		0.30	%⁴
Supplemental data:
Net assets, end of period (000's)	$	11,073		$	16,726		$	22,938		$	33,137		$	93,344		$	187,444
Portfolio turnover rate		48	%		85	%		130	%		154	%		72	%		81	%
	Class Y

	Six months ended December 31, 2011			Year ended June 30,												For the period ended
	(unaudited)			2011			2010			2009			2008			June 30, 2007³
Net asset value, beginning of period	$	8.94		$	7.01		$	6.30		$	8.82		$	11.55		$	10.00
Income (loss) from investment operations:
Net investment income¹		0.02			0.04			0.01			0.00⁵			0.08			0.04
Net realized and unrealized gain (loss) from investment activities		(0.66	)		1.92			0.70			(2.41	)		(2.10	)		1.54
Total income (loss) from investment operations		(0.64	)		1.96			0.71			(2.41	)		(2.02	)		1.58
Less dividends/distributions:
From net investment income		(0.04	)		(0.03	)		—			(0.11	)		(0.06	)		(0.02	)
From net realized gains		—			—			—			—			(0.65	)		(0.01	)
Total dividends/distributions		(0.04	)		(0.03	)		—			(0.11	)		(0.71	)		(0.03	)
Net asset value, end of period	$	8.26		$	8.94		$	7.01		$	6.30		$	8.82		$	11.55
Total investment return²		(7.19	)%		27.91	%		11.27	%		(27.22	)%		(18.34	)%		15.88	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		2.61	%⁴		2.26	%		2.16	%		2.33	%		1.70	%		1.67	%⁴
Expenses after fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		1.86	%⁴		1.78	%		2.00	%		2.25	%		1.70	%		1.67	%⁴
Expenses after fee waivers and/or expense reimbursement and before dividend expense and security loan fees for securities sold short		1.25	%⁴		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%⁴
Net investment income		0.57	%⁴		0.48	%		0.12	%		0.07	%		0.74	%		0.43	%⁴
Supplemental data:
Net assets, end of period (000's)	$	4,291		$	10,764		$	12,132		$	95,804		$	9,121		$	5,405
Portfolio turnover rate		48	%		85	%		130	%		154	%		72	%		81	%

¹ Calculated using the average shares method.

UBS U.S. Equity Alpha Fund

Financial highlights

	Class C
	Six months ended December 31, 2011			Year ended June 30,												For the period ended
	(unaudited)			2011			2010			2009			2008			June 30, 2007³
Net asset value, beginning of period	$	8.78		$	6.93		$	6.29		$	8.74		$	11.50		$	10.00
Income (loss) from investment operations:
Net investment income (loss)¹		(0.02	)		(0.04	)		(0.06	)		(0.01	)		(0.03	)		(0.04	)
Net realized and unrealized gain (loss) from investment activities		(0.66	)		1.89			0.70			(2.44	)		(2.08	)		1.55
Total income (loss) from investment operations		(0.68	)		1.85			0.64			(2.45	)		(2.11	)		1.51
Less dividends/distributions:
From net investment income		—			—			—			—			—			—
From net realized gains		—			—			—			—			(0.65	)		(0.01	)
Total dividends/distributions		—			—			—			—			(0.65	)		(0.01	)
Net asset value, end of period	$	8.10		$	8.78		$	6.93		$	6.29		$	8.74		$	11.50
Total investment return²		(7.75	)%		26.70	%		10.18	%		(28.03	)%		(19.11	)%		15.12	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		3.77	%⁴		3.36	%		3.27	%		3.30	%		2.74	%		2.72	%⁴
Expenses after fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		2.86	%⁴		2.78	%		2.98	%		2.99	%		2.68	%		2.64	%⁴
Expenses after fee waivers and/or expense reimbursement and before dividend expense and security loan fees for securities sold short		2.25	%⁴		2.25	%		2.25	%		2.25	%		2.25	%		2.25	%⁴
Net investment income (loss)		(0.38	)%⁴		(0.52	)%		(0.85	)%		(0.12	)%		(0.28	)%		(0.44	)%⁴
Supplemental data:
Net assets, end of period (000's)	$	3,723		$	5,029		$	6,810		$	9,003		$	22,823		$	42,750
Portfolio turnover rate		48	%		85	%		130	%		154	%		72	%		81	%

³ For the period September 26, 2006 (commencement of operations) through June 30, 2007.

⁴ Annualized.

⁵ Amount represents less that $0.005 per share.

See accompanying notes to financial statements.
95

UBS U.S. Equity Opportunity Fund

Financial highlights

The table below sets forth financial data for one share of beneficial interest outstanding throughout each period presented.

	Class A
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	6.74		$	5.33		$	4.94		$	8.42		$	11.66		$	10.54
Income (loss) from investment operations:
Net investment income¹		0.03			0.06			0.05			0.11			0.14			0.13
Net realized and unrealized gain (loss) from investment activities		(0.74	)		1.41			0.46			(2.66	)		(2.25	)		2.03
Total income (loss) from investment operations		(0.71	)		1.47			0.51			(2.55	)		(2.11	)		2.16
Less dividends/distributions:
From net investment income		(0.06	)		(0.06	)		(0.12	)		(0.06	)		(0.14	)		(0.11	)
From net realized gains		—			—			—			(0.87	)		(0.99	)		(0.93	)
Total dividends/distributions		(0.06	)		(0.06	)		(0.12	)		(0.93	)		(1.13	)		(1.04	)
Net asset value, end of period	$	5.97		$	6.74		$	5.33		$	4.94		$	8.42		$	11.66
Total investment return²		(10.43	)%		27.57	%		10.16	%		(29.74	)%		(19.38	)%		21.20	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.70	%⁴		1.61	%		1.61	%		1.52	%		1.32	%		1.29	%
Expenses after fee waivers and/or expense reimbursement		1.20	%⁴		1.20	%		1.20	%		1.10	%		1.10	%		1.10	%
Net investment income		1.06	%⁴		0.88	%		0.83	%		1.89	%		1.35	%		1.12	%
Supplemental data:
Net assets, end of period (000's)	$	36,105		$	43,766		$	41,012		$	43,951		$	78,989		$	113,213
Portfolio turnover rate		84	%		85	%		70	%		67	%		52	%		27	%
	Class B
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	6.71		$	5.29		$	4.87		$	8.33		$	11.50		$	10.39
Income (loss) from investment operations:
Net investment income¹		0.01			0.00³			0.00³			0.06			0.06			0.04
Net realized and unrealized gain (loss) from investment activities		(0.74	)		1.42			0.45			(2.62	)		(2.21	)		2.00
Total income (loss) from investment operations		(0.73	)		1.42			0.45			(2.56	)		(2.15	)		2.04
Less dividends/distributions:
From net investment income		—			—			(0.03	)		(0.03	)		(0.03	)		—
From net realized gains		—			—			—			(0.87	)		(0.99	)		(0.93	)
Total dividends/distributions		—			—			(0.03	)		(0.90	)		(1.02	)		(0.93	)
Net asset value, end of period	$	5.98		$	6.71		$	5.29		$	4.87		$	8.33		$	11.50
Total investment return²		(10.88	)%		26.84	%		9.18	%		(30.23	)%		(19.92	)%		20.21	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.94	%⁴		2.48	%		2.62	%		2.48	%		2.17	%		2.19	%
Expenses after fee waivers and/or expense reimbursement		1.95	%⁴		1.95	%		1.95	%		1.85	%		1.85	%		1.85	%
Net investment income		0.28	%⁴		0.08	%		0.09	%		1.14	%		0.59	%		0.39	%
Supplemental data:
Net assets, end of period (000's)	$	21		$	35		$	94		$	247		$	471		$	1,061
Portfolio turnover rate		84	%		85	%		70	%		67	%		52	%		27	%

¹ Calculated using the average shares method.

UBS U.S. Equity Opportunity Fund

Financial highlights

	Class C
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	6.59		$	5.20		$	4.83		$	8.26		$	11.42		$	10.34
Income (loss) from investment operations:
Net investment income¹		0.01			0.01			0.00³			0.06			0.06			0.04
Net realized and unrealized gain (loss) from investment activities		(0.73	)		1.39			0.45			(2.60	)		(2.18	)		1.99
Total income (loss) from investment operations		(0.72	)		1.40			0.45			(2.54	)		(2.12	)		2.03
Less dividends/distributions:
From net investment income		(0.01	)		(0.01	)		(0.08	)		(0.02	)		(0.05	)		(0.02	)
From net realized gains		—			—			—			(0.87	)		(0.99	)		(0.93	)
Total dividends/distributions		(0.01	)		(0.01	)		(0.08	)		(0.89	)		(1.04	)		(0.95	)
Net asset value, end of period	$	5.86		$	6.59		$	5.20		$	4.83		$	8.26		$	11.42
Total investment return²		(10.78	)%		26.87	%		9.08	%		(30.25	)%		(19.83	)%		20.24	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.50	%⁴		2.40	%		2.41	%		2.33	%		2.10	%		2.06	%
Expenses after fee waivers and/or expense reimbursement		1.95	%⁴		1.95	%		1.95	%		1.85	%		1.85	%		1.85	%
Net investment income		0.31	%⁴		0.13	%		0.08	%		1.13	%		0.60	%		0.37	%
Supplemental data:
Net assets, end of period (000's)	$	4,207		$	4,992		$	4,889		$	5,429		$	9,795		$	15,919
Portfolio turnover rate		84	%		85	%		70	%		67	%		52	%		27	%
	Class Y
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	6.79		$	5.36		$	4.97		$	8.46		$	11.71		$	10.58
Income (loss) from investment operations:
Net investment income¹		0.04			0.07			0.06			0.12			0.16			0.15
Net realized and unrealized gain (loss) from investment activities		(0.75	)		1.43			0.47			(2.67	)		(2.25	)		2.05
Total income (loss) from investment operations		(0.71	)		1.50			0.53			(2.55	)		(2.09	)		2.20
Less dividends/distributions:
From net investment income		(0.08	)		(0.07	)		(0.14	)		(0.07	)		(0.17	)		(0.14	)
From net realized gains		—			—			—			(0.87	)		(0.99	)		(0.93	)
Total dividends/distributions		(0.08	)		(0.07	)		(0.14	)		(0.94	)		(1.16	)		(1.07	)
Net asset value, end of period	$	6.00		$	6.79		$	5.36		$	4.97		$	8.46		$	11.71
Total investment return²		(10.37	)%		28.13	%		10.39	%		(29.53	)%		(19.15	)%		21.52	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.56	%⁴		1.48	%		1.50	%		1.45	%		1.13	%		1.06	%
Expenses after fee waivers and/or expense reimbursement		0.95	%⁴		0.95	%		0.95	%		0.85	%		0.85	%		0.85	%
Net investment income		1.33	%⁴		1.13	%		1.07	%		2.08	%		1.60	%		1.36	%
Supplemental data:
Net assets, end of period (000's)	$	1,629		$	1,576		$	1,515		$	2,174		$	5,694		$	9,074
Portfolio turnover rate		84	%		85	%		70	%		67	%		52	%		27	%

³ Amount represents less that $0.005 per share.

⁴ Annualized.

See accompanying notes to financial statements.
97

UBS U.S. Large Cap Equity Fund

Financial highlights

The table below sets forth financial data for one share of beneficial interest outstanding throughout each period presented.

	Class A
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	16.46		$	12.79		$	11.48		$	16.63		$	21.19		$	18.24
Income (loss) from investment operations:
Net investment income (loss)¹		0.05			0.09			0.06			0.13			0.16			0.15
Net realized and unrealized gain (loss) from investment activities		(1.30	)		3.65			1.54			(4.84	)		(3.68	)		3.52
Total income (loss) from investment operations		(1.25	)		3.74			1.60			(4.71	)		(3.52	)		3.67
Less dividends/distributions:
From net investment income		(0.09	)		(0.07	)		(0.29	)		(0.07	)		(0.16	)		(0.10	)
From net realized gains		—			—			—			(0.37	)		(0.88	)		(0.62	)
Total dividends/distributions		(0.09	)		(0.07	)		(0.29	)		(0.44	)		(1.04	)		(0.72	)
Net asset value, end of period	$	15.12		$	16.46		$	12.79		$	11.48		$	16.63		$	21.19
Total investment return²		(7.60	)%		29.28	%		13.75	%		(28.04	)%		(17.17	)%		20.39	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement/recoupment		1.27	%⁴		1.19	%		1.33	%		1.28	%		1.16	%		1.18	%
Expenses after fee waivers and/or expense reimbursement/recoupment		1.20	%⁴		1.20	%⁵		1.20	%		1.28	%		1.16	%		1.18	%
Net investment income (loss)		0.64	%⁴		0.57	%		0.47	%		1.05	%		0.83	%		0.75	%
Supplemental data:
Net assets, end of period (000's)	$	14,920		$	19,832		$	23,164		$	34,406		$	90,558		$	158,138
Portfolio turnover rate		29	%		60	%		50	%		62	%		47	%		34	%
	Class B
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	16.04		$	12.50		$	11.14		$	16.20		$	20.66		$	17.84
Income (loss) from investment operations:
Net investment income (loss)¹		(0.01	)		(0.02	)		(0.04	)		0.04			0.01			0.00³
Net realized and unrealized gain (loss) from investment activities		(1.27	)		3.56			1.49			(4.71	)		(3.58	)		3.44
Total income (loss) from investment operations		(1.28	)		3.54			1.45			(4.67	)		(3.57	)		3.44
Less dividends/distributions:
From net investment income		—			—			(0.09	)		(0.02	)		(0.01	)		—
From net realized gains		—			—			—			(0.37	)		(0.88	)		(0.62	)
Total dividends/distributions		—			—			(0.09	)		(0.39	)		(0.89	)		(0.62	)
Net asset value, end of period	$	14.76		$	16.04		$	12.50		$	11.14		$	16.20		$	20.66
Total investment return²		(7.98	)%		28.32	%		12.96	%		(28.61	)%		(17.79	)%		19.50	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement/recoupment		2.17	%⁴		2.06	%		2.10	%		2.02	%		1.93	%		1.95	%
Expenses after fee waivers and/or expense reimbursement/recoupment		1.95	%⁴		1.95	%		1.95	%		2.02	%		1.93	%		1.95	%
Net investment income (loss)		(0.11	)%⁴		(0.17	)%		(0.28	)%		0.33	%		0.07	%		(0.01	)%
Supplemental data:
Net assets, end of period (000's)	$	82		$	144		$	170		$	265		$	635		$	870
Portfolio turnover rate		29	%		60	%		50	%		62	%		47	%		34	%

¹ Calculated using the average shares method.

UBS U.S. Large Cap Equity Fund

Financial highlights

	Class C
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	15.88		$	12.37		$	11.14		$	16.21		$	20.66		$	17.83
Income (loss) from investment operations:
Net investment income (loss)¹		(0.01	)		(0.03	)		(0.04	)		0.04			0.02			0.00³
Net realized and unrealized gain (loss) from investment activities		(1.26	)		3.54			1.50			(4.71	)		(3.59	)		3.45
Total income (loss) from investment operations		(1.27	)		3.51			1.46			(4.67	)		(3.57	)		3.45
Less dividends/distributions:
From net investment income		—			—			(0.23	)		(0.03	)		—			—
From net realized gains		—			—			—			(0.37	)		(0.88	)		(0.62	)
Total dividends/distributions		—			—			(0.23	)		(0.40	)		(0.88	)		(0.62	)
Net asset value, end of period	$	14.61		$	15.88		$	12.37		$	11.14		$	16.21		$	20.66
Total investment return²		(8.00	)%		28.38	%		12.92	%		(28.57	)%		(17.76	)%		19.56	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement/recoupment		2.03	%⁴		2.00	%		2.01	%		1.96	%		1.91	%		1.92	%
Expenses after fee waivers and/or expense reimbursement/recoupment		1.95	%⁴		1.95	%		1.95	%		1.96	%		1.91	%		1.92	%
Net investment income (loss)		(0.10	)%⁴		(0.18	)%		(0.28	)%		0.35	%		0.09	%		0.01	%
Supplemental data:
Net assets, end of period (000's)	$	3,171		$	3,467		$	3,539		$	4,719		$	6,382		$	10,591
Portfolio turnover rate		29	%		60	%		50	%		62	%		47	%		34	%
	Class Y
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	16.60		$	12.91		$	11.62		$	16.85		$	21.44		$	18.43
Income (loss) from investment operations:
Net investment income (loss)¹		0.07			0.13			0.10			0.17			0.22			0.21
Net realized and unrealized gain (loss) from investment activities		(1.31	)		3.68			1.56			(4.91	)		(3.72	)		3.56
Total income (loss) from investment operations		(1.24	)		3.81			1.66			(4.74	)		(3.50	)		3.77
Less dividends/distributions:
From net investment income		(0.15	)		(0.12	)		(0.37	)		(0.12	)		(0.21	)		(0.14	)
From net realized gains		—			—			—			(0.37	)		(0.88	)		(0.62	)
Total dividends/distributions		(0.15	)		(0.12	)		(0.37	)		(0.49	)		(1.09	)		(0.76	)
Net asset value, end of period	$	15.21		$	16.60		$	12.91		$	11.62		$	16.85		$	21.44
Total investment return²		(7.46	)%		29.57	%		14.04	%		(27.85	)%		(16.87	)%		20.73	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement/recoupment		0.99	%⁴		0.94	%		0.99	%		0.96	%		0.87	%		0.89	%
Expenses after fee waivers and/or expense reimbursement/recoupment		0.95	%⁴		0.95	%⁵		0.95	%		0.96	%		0.87	%		0.89	%
Net investment income (loss)		0.90	%⁴		0.82	%		0.72	%		1.39	%		1.13	%		1.04	%
Supplemental data:
Net assets, end of period (000's)	$	184,154		$	206,555		$	188,636		$	217,821		$	645,803		$	833,023
Portfolio turnover rate		29	%		60	%		50	%		62	%		47	%		34	%

³ Amount represents less than $0.005 per share.

⁴ Annualized.

⁵ The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Fund, not to exceed the expense cap.

See accompanying notes to financial statements.
99

UBS U.S. Small Cap Growth Fund

Financial highlights

The table below sets forth financial data for one share of beneficial interest outstanding throughout each period presented.

	Class A
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	16.00		$	10.60		$	8.56		$	13.31		$	15.94		$	14.41
Income (loss) from investment operations:
Net investment loss¹		(0.06	)		(0.13	)		(0.10	)		(0.06	)		(0.12	)		(0.14	)
Net realized and unrealized gain (loss) from investment activities		(1.48	)		5.53			2.14			(4.69	)		(1.47	)		2.14
Total income (loss) from investment operations		(1.54	)		5.40			2.04			(4.75	)		(1.59	)		2.00
Less dividends/distributions:
From net realized gains		—			—			—			(0.00	)³		(1.04	)		(0.47	)
Net asset value, end of period	$	14.46		$	16.00		$	10.60		$	8.56		$	13.31		$	15.94
Total investment return²		(9.63	)%		50.94	%		23.83	%		(35.68	)%		(10.25	)%		14.18	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.63	%⁴		1.54	%		1.60	%		1.67	%		1.47	%		1.65	%
Expenses after fee waivers and/or expense reimbursement		1.40	%⁴		1.40	%		1.40	%		1.28	%		1.28	%		1.28	%
Net investment loss		(0.89	)%⁴		(0.95	)%		(1.00	)%		(0.60	)%		(0.81	)%		(0.93	)%
Supplemental data:
Net assets, end of period (000's)	$	29,635		$	38,319		$	28,586		$	41,141		$	92,759		$	149,362
Portfolio turnover rate		25	%		55	%		72	%		73	%		51	%		34	%
	Class B
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	14.81		$	9.89		$	8.05		$	12.59		$	15.25		$	13.91
Income (loss) from investment operations:
Net investment loss¹		(0.11	)		(0.21	)		(0.17	)		(0.12	)		(0.22	)		(0.24	)
Net realized and unrealized gain (loss) from investment activities		(1.36	)		5.13			2.01			(4.42	)		(1.40	)		2.05
Total income (loss) from investment operations		(1.47	)		4.92			1.84			(4.54	)		(1.62	)		1.81
Less dividends/distributions:
From net realized gains		—			—			—			(0.00	)³		(1.04	)		(0.47	)
Net asset value, end of period	$	13.34		$	14.81		$	9.89		$	8.05		$	12.59		$	15.25
Total investment return²		(9.93	)%		49.75	%		22.86	%		(36.06	)%		(10.94	)%		13.32	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement/recoupment		2.92	%⁴		2.25	%		2.91	%		2.55	%		2.20	%		2.29	%
Expenses after fee waivers and/or expense reimbursement/recoupment		2.15	%⁴		2.15	%		2.15	%		2.03	%		2.03	%		2.03	%
Net investment loss		(1.64	)%⁴		(1.68	)%		(1.75	)%		(1.38	)%		(1.58	)%		(1.69	)%
Supplemental data:
Net assets, end of period (000's)	$	20		$	31		$	74		$	177		$	661		$	1,798
Portfolio turnover rate		25	%		55	%		72	%		73	%		51	%		34	%

¹ Calculated using the average shares method.

³ Amount represents less than $0.005 per share.

⁴ Annualized.

100

UBS U.S. Small Cap Growth Fund

Financial highlights

	Class C
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	14.78		$	9.87		$	8.03		$	12.57		$	15.23		$	13.89
Income (loss) from investment operations:
Net investment loss¹		(0.11	)		(0.22	)		(0.17	)		(0.12	)		(0.21	)		(0.24	)
Net realized and unrealized gain (loss) from investment activities		(1.36	)		5.13			2.01			(4.42	)		(1.41	)		2.05
Total income (loss) from investment operations		(1.47	)		4.91			1.84			(4.54	)		(1.62	)		1.81
Less dividends/distributions:
From net realized gains		—			—			—			(0.00	)³		(1.04	)		(0.47	)
Net asset value, end of period	$	13.31		$	14.78		$	9.87		$	8.03		$	12.57		$	15.23
Total investment return²		(9.95	)%		49.75	%		22.91	%		(36.11	)%		(10.95	)%		13.33	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.41	%⁴		2.37	%		2.50	%		2.45	%		2.25	%		2.28	%
Expenses after fee waivers and/or expense reimbursement		2.15	%⁴		2.15	%		2.15	%		2.03	%		2.03	%		2.03	%
Net investment loss		(1.64	)%⁴		(1.70	)%		(1.75	)%		(1.38	)%		(1.55	)%		(1.68	)%
Supplemental data:
Net assets, end of period (000's)	$	2,261		$	2,961		$	2,336		$	2,471		$	6,042		$	7,877
Portfolio turnover rate		25	%		55	%		72	%		73	%		51	%		34	%
	Class Y
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	16.64		$	11.00		$	8.86		$	13.74		$	16.38		$	14.75
Income (loss) from investment operations:
Net investment loss¹		(0.05	)		(0.10	)		(0.08	)		(0.03	)		(0.08	)		(0.10	)
Net realized and unrealized gain (loss) from investment activities		(1.53	)		5.74			2.22			(4.85	)		(1.52	)		2.20
Total income (loss) from investment operations		(1.58	)		5.64			2.14			(4.88	)		(1.60	)		2.10
Less dividends/distributions:
From net realized gains		—			—			—			(0.00	)³		(1.04	)		(0.47	)
Net asset value, end of period	$	15.06		$	16.64		$	11.00		$	8.86		$	13.74		$	16.38
Total investment return²		(9.50	)%		51.27	%		24.15	%		(35.51	)%		(10.03	)%		14.54	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement/recoupment		1.15	%⁴		1.13	%		1.21	%		1.25	%		1.12	%		1.18	%
Expenses after fee waivers and/or expense reimbursement/recoupment		1.15	%⁴		1.15	%⁵		1.15	%		1.03	%		1.03	%		1.03	%
Net investment loss		(0.63	)%⁴		(0.70	)%		(0.74	)%		(0.36	)%		(0.55	)%		(0.68	)%
Supplemental data:
Net assets, end of period (000's)	$	99,850		$	112,186		$	94,725		$	134,378		$	272,666		$	303,029
Portfolio turnover rate		25	%		55	%		72	%		73	%		51	%		34	%

⁵ The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Fund, not to exceed the expense cap.

See accompanying notes to financial statements.
101

The UBS Funds

Notes to financial statements (unaudited)

1. Organization and significant accounting policies

The Trust has 14 Funds available for investment, each having its own investment objectives and policies. The following seven funds are covered in this report: UBS Global Equity Fund, UBS International Equity Fund, UBS Market Neutral Multi-Strategy Fund, UBS U.S. Equity Alpha Fund, UBS U.S. Equity Opportunity Fund (formerly known as UBS U.S. Large Cap Value Equity Fund), UBS U.S. Large Cap Equity Fund, and UBS U.S. Small Cap Growth Fund (each a "Fund", and collectively, the "Funds").

Each of the Funds is classified as a "diversified" investment company for purposes of the 1940 Act. Each Fund currently offers Class A, Class C and Class Y shares. For each Fund, except UBS U.S. Equity Alpha Fund and UBS Market Neutral Multi-Strategy Fund, Class B shares are offered only to existing Class B shareholders with respect to the reinvestment of dividends and distributions and exchanges of Class B shares of the Funds for Class B shares of other series of the UBS Family of Funds. "UBS Family of Funds" include other UBS Funds, PACE Select Advisor Trust and other funds for which UBS Global Asset Management (US) Inc. ("UBS Global AM (US)") serves as principal underwriter. UBS U.S. Equity Alpha Fund and UBS Market Neutral Multi-Strategy Fund do not offer Class B shares. 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 after issuance which varies depending upon the amount invested. Effective on or about March 1, 2012, all outstanding Class B shares will be converted to Class A shares of the same Fund. 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.

A: Valuation of investments: Each Fund calculates its net asset value based on the current market value, where available, for its portfolio securities. The Funds normally obtain market values for their securities and other instruments from independent pricing sources and broker-dealers. Independent pricing sources may use reported last sale prices, official market closing prices, current market quotations or valuations from computerized "evaluation" systems

102

The UBS Funds

Notes to financial statements (unaudited)

that derive values based on comparable securities or instruments. An evaluation system incorporates parameters such as security quality, maturity and coupon, and/or research and evaluations by its staff, including review of broker-dealer market price quotations, if available, in determining the valuation of the portfolio securities or instruments. Securities and other instruments also may be valued based on appraisals derived from information concerning the security or instrument or similar securities or instruments received from recognized dealers in those holdings. Securities and instruments 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 on the valuation date available prior to valuation. Securities and instruments which are listed on US and foreign stock exchanges normally are valued at the market closing price, the last sale price on the day the securities are valued or, lacking any sales on such day, at the last available bid price. In cases where securities or instruments are traded on more than one exchange, the securities or instruments are valued on the exchange designated as the primary market by UBS Global Asset Management (Americas) Inc. ("UBS Global AM" or the "Advisor"), the investment advisor 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 or instrument, that security or instrument 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 or instrument'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 or instruments; and the evaluation of forces which influence the market in which the securities or instruments are purchased and sold. Foreign currency exchange rates are generally determined as of the close of the New York Stock Exchange ("NYSE").

Certain securities or instruments 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 net asset value. 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 or instruments, the Fund may adjust the previous closing prices to reflect what the Board believes to be the fair value of these securities or instruments as of 4:00 p.m., Eastern time.

The amortized cost method of valuation, which approximates market value, generally is used to value short-term debt instruments with 60 days or less remaining to maturity, unless the Board determines that this does not represent fair value. Investments in open-end investment companies are valued at the daily closing net asset value of the respective investment company. Pursuant to the use of the practical expedient within ASC Topic 820, investments in non-registered investment companies are also valued at the daily net asset value. All investments quoted in foreign currencies will be valued daily in US dollars on the basis of the foreign currency exchange rates prevailing at the time such valuation is determined by the Funds' custodian.

103

The UBS Funds

Notes to financial statements (unaudited)

GAAP requires disclosure regarding the various inputs that are used in determining the value of the Funds' investments.

These inputs are summarized into the three broad levels listed below:

Level 1—Unadjusted quoted prices in active markets for identical investments.

Level 2—Other significant observable inputs, including but not limited to, quoted prices for similar investments, interest rates, prepayment speeds and credit risk.

Level 3—Unobservable inputs inclusive of the Funds' own assumptions in determining the fair value of investments.

A fair value hierarchy has been included near the end of each Fund's Portfolio of investments.

104

The UBS Funds

Notes to financial statements (unaudited)

January 1, 2013, and interim periods within those annual periods. At this time, management is evaluating the implications of ASU 2011-11 and its impact on the Funds' financial statement disclosures.

The provisions of ASC Topic 815 "Derivatives and Hedging" ("ASC Topic 815") require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk related contingent features in derivative agreements. Since investment companies value their derivatives at fair value and recognize changes in fair value through the Statement of operations, they do not qualify for hedge accounting under ASC Topic 815. Accordingly, even though a fund's investments in derivatives may represent economic hedges, they are considered to be non-hedge transactions for purposes of disclosure under ASC Topic 815. ASC Topic 815 requires that (1) objectives for using derivative instruments be disclosed in terms of underlying risk and accounting designation, (2) the fair values of derivative instruments and their gains and losses be disclosed in a tabular format, and (3) information be disclosed about credit-risk contingent features of derivatives contracts. Details of this disclosure can be found in the Portfolio of investments. Certain derivative contracts entered into by the Funds may contain credit-risk related contingent features that could be triggered subject to certain circumstances. Such circumstances include agreed upon net asset value thresholds. If triggered, the derivative counterparty could request additional cash margin and/or terminate the derivative contract. The aggregate fair value of the derivative contracts that are in a net liability position that contain these triggers can be found in the Portfolio of investments. The aggregate fair value of assets that are already posted as collateral as of December 31, 2011 is reflected in the Statement of assets and liabilities. If the applicable credit-risk related contingent features were triggered as of December 31, 2011, the Fund would be required to post additional collateral or may be required to terminate the contract and settle any amounts outstanding. The volume of derivatives as disclosed in each Fund's Portfolio of investments is representative of the volume of derivatives outstanding during the period ended December 31, 2011, except for forward foreign currency contracts for UBS Global Equity Fund, UBS International Equity Fund and UBS Market Neutral Multi-Strategy Fund, for which the average volume during the period was greater than at period end.

Disclosure of derivatives by underlying risk for the Fund as of and for the period ended December 31, 2011 is as follows:

Asset derivatives

	Equity risk		Foreign exchange risk		Total
UBS Market Neutral Multi-Strategy Fund
Forward contracts¹	$	—	$	22,440	$	22,440
Futures contracts²		17,684		—		17,684
Total value	$	17,684	$	22,440	$	40,124

¹ Statement of assets and liabilities location: Unrealized appreciation on forward foreign currency contracts.

Liability derivatives

	Equity risk			Foreign exchange risk			Total
UBS Market Neutral Multi-Strategy Fund
Forward contracts¹	$	—		$	(19,262	)	$	(19,262	)
Futures contracts²		(8,559	)		—			(8,559	)
Total value	$	(8,559	)	$	(19,262	)	$	(27,821	)

¹ Statement of assets and liabilities location: Unrealized depreciation on forward foreign currency contracts.

105

The UBS Funds

Notes to financial statements (unaudited)

Activities in derivative instruments during the period ended December 31, 2011, were as follows:

	Equity risk			Foreign exchange risk			Total
UBS Market Neutral Multi-Strategy Fund
Net realized gain (loss)¹
Forward contracts	$	—		$	(8,142	)	$	(8,142	)
Futures contracts		(220,551	)		—			(220,551	)
Total net realized gain (loss)	$	(220,551	)	$	(8,142	)	$	(228,693	)
Change in net unrealized appreciation/depreciation²
Forward contracts	$	—		$	(3,253	)	$	(3,253	)
Futures contracts		(9,950	)		—			(9,950	)
Total change in net unrealized appreciation/depreciation	$	(9,950	)	$	(3,253	)	$	(13,203	)

¹ Statement of operations location: Net realized gain (loss) on futures contracts and forward foreign currency contracts.

² Statement of operations location: Change in net unrealized appreciation/depreciation on futures contracts and forward foreign currency contracts.

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, if any, is included in each Fund's Notes to portfolio of investments.

C. Investment transactions, investment income and expenses: Investment transactions are recorded on the trade date. Realized gains and losses from investment and foreign exchange transactions are calculated using the identified cost method. Dividend income and expense are 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.

106

The UBS Funds

Notes to financial statements (unaudited)

F. Futures contracts: Each Fund may purchase or sell financial futures contracts. The Funds may purchase or sell futures contracts to increase or reduce their exposure to an asset class without purchasing or selling the underlying securities, either as a hedge or to enhance income or gains. Using financial futures contracts involves various market risks, including equity risk. 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. To the extent that market prices move in an unexpected direction, there is a risk that a Fund will not achieve the anticipated benefits of the futures contract or may realize a loss.

G. Short sales: UBS U.S. Equity Alpha Fund, UBS U.S. Small Cap Growth Fund and UBS Market Neutral Multi-Strategy Fund may each enter 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 a Fund shorts a security while 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. A Fund will realize a gain or loss upon closing of the short sale (returning the security to the lender by way of purchase or delivery of a long position owned). A Fund is liable to the lender for any dividends payable on securities while those securities are in a short position. These dividends are

107

The UBS Funds

Notes to financial statements (unaudited)

booked as an expense or liability of the Fund. Each Fund segregates collateral consisting of cash, US government securities or other liquid assets sufficient to collateralize the market value of short positions. Each Fund is charged a securities loan fee in connection with short sale transactions. Due to the independence of portfolio management teams that manage the various Fund components, it is likely that UBS Market Neutral Multi-Strategy Fund will, at times, hold the same security both long and short (which may technically result in a "short against the box").

H. Dividends and distributions: It is the Funds' policy to distribute their respective net investment income and net capital gains, if any, annually. Dividends and distributions to shareholders are recorded on the ex-distribution date. The amount of dividends from net investment income and distributions from net realized capital gains and/or return of capital is determined in accordance with US federal income tax regulations, which may differ from GAAP. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require reclassification.

I. Concentration of risk: Investing in securities of foreign issuers and currency transactions may involve certain considerations and risks not typically associated with investments in the United States. These risks include revaluation of currencies, adverse fluctuations in foreign currency values and possible adverse political, social and economic developments, including those particular to a specific industry, country or region, which could cause the securities and their markets to be less liquid and prices more volatile than those of comparable US companies and US government securities. These risks are greater with respect to securities of issuers located in emerging market countries in which the Funds 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. 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 a Fund to meet their obligations may be affected by economic and political developments particular to a specific industry, country, state or region.

J. Commission recapture program: The Funds participate in a brokerage commission recapture program, whereby the 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. For the period ended December 31, 2011, the following Funds recorded recaptured commissions which are reflected on the Statement of operations within the net realized gains (losses) on investments in unaffiliated issuers:

Fund	Amount
UBS Global Equity Fund	$	1,181
UBS U.S. Equity Alpha Fund		2,194
UBS U.S. Equity Opportunity Fund		4,698
UBS U.S. Large Cap Equity Fund		16,639

K. Redemption fees: 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. This amount is paid to the applicable Fund, not the Advisor or UBS Global AM (US). The redemption fees retained by the Funds are disclosed in the Statement of changes in net assets.

108

The UBS Funds

Notes to financial statements (unaudited)

2. Investment advisory fees and other transactions with affiliates

Fund	$0 to $500 mm			$500 mm to $1.0 billion			$1.0 billion to $1.5 billion			$1.5 billion to $2.0 billion			$2.0 billion and over
UBS International Equity Fund		0.800	%		0.750	%		0.700	%		0.675	%		0.650	%
UBS U.S. Equity Alpha Fund		1.000			0.900			0.850			0.850			0.850
UBS U.S. Equity Opportunity Fund		0.700			0.650			0.600			0.575			0.550
UBS U.S. Large Cap Equity Fund		0.700			0.650			0.600			0.575			0.550
UBS U.S. Small Cap Growth Fund		0.850			0.850			0.825			0.825			0.825

Fund	$0 to $250 mm			$250 mm to $500 mm			$500 mm to $1.0 billion			$1.0 billion and over
UBS Global Equity Fund		0.750	%		0.700	%		0.680	%		0.650	%
UBS Market Neutral Multi-Strategy Fund		1.250			1.250			1.250			1.250

For UBS Global Equity Fund, UBS International Equity Fund, UBS U.S. Equity Opportunity Fund and UBS U.S. Large Cap Equity Fund, the Advisor has agreed to waive its fees and/or reimburse expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) to the extent necessary so that the Fund's operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) do not exceed the expense limit of each Fund as indicated in the following table. For UBS Market Neutral Multi-Strategy Fund, UBS U.S. Equity Alpha Fund and UBS U.S. Small Cap Growth Fund, the Advisor has agreed to waive its fees and/or reimburse expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and securities loan fees for securities sold short) to the extent necessary so that each Fund's operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and securities loan fees for securities sold short) do not exceed the expense limit of each Fund as indicated in the following table. Investment advisory fees, including the dollar amount waived or reimbursed, for the period ended December 31, 2011, 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 Global Equity Fund		1.50	%		2.25	%		2.25	%		1.25	%	$	361,226	$	36,609
UBS International Equity Fund		1.25			2.00			2.00			1.00			93,046		123,373
UBS Market Neutral Multi-Strategy Fund		1.75			N/A*			2.50			1.50			120,030		114,670
UBS U.S. Equity Alpha Fund		1.50			N/A*			2.25			1.25			132,401		106,761
UBS U.S. Equity Opportunity Fund		1.20			1.95			1.95			0.95			152,904		110,578
UBS U.S. Large Cap Equity Fund		1.20			1.95			1.95			0.95			726,152		40,838
UBS U.S. Small Cap Growth Fund		1.40			2.15			2.15			1.15			577,103		41,332

* UBS Market Neutral Multi-Strategy Fund and UBS U.S. Equity Alpha 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, provided that the reimbursement by a Fund of the Advisor will not cause the total operating expense ratio to exceed the contractual limit as then may be in effect for the Fund. The expenses waived for the period ended December 31, 2011 are subject to repayment through

109

The UBS Funds

Notes to financial statements (unaudited)

June 30, 2015. At December 31, 2011, 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, 2012		Expires June 30, 2013		Expires June 30, 2014		Expires June 30, 2015
UBS Global Equity Fund—Class A	$	262,962	$	183,038	$	35,216	$	20,895	$	23,813
UBS Global Equity Fund—Class B		5,661		5,646		15		—		—
UBS Global Equity Fund—Class C		121,158		71,037		22,469		14,856		12,796
UBS Global Equity Fund—Class Y		76,072		76,072		—		—		—
UBS Market Neutral Multi-Strategy Fund—Class A		74,095		—		—		48,384		25,711
UBS Market Neutral Multi-Strategy Fund—Class C		11,920		—		—		7,708		4,212
UBS Market Neutral Multi-Strategy Fund—Class Y		283,925		—		—		199,178		84,747
UBS U.S. Equity Alpha Fund—Class A		341,286		117,100		65,041		104,994		54,151
UBS U.S. Equity Alpha Fund—Class C		120,854		40,859		25,435		35,648		18,912
UBS U.S. Equity Alpha Fund—Class Y		191,113		23,783		76,513		57,119		33,698
UBS U.S. Equity Opportunity Fund—Class A		698,409		224,763		196,379		183,453		93,814
UBS U.S. Equity Opportunity Fund—Class B		3,786		2,049		1,215		412		110
UBS U.S. Equity Opportunity Fund—Class C		93,303		30,998		26,604		23,692		12,009
UBS U.S. Equity Opportunity Fund—Class Y		42,113		16,498		11,994		8,976		4,645
UBS U.S. Large Cap Equity Fund—Class A		44,617		—		38,849		—		5,768
UBS U.S. Large Cap Equity Fund—Class B		610		—		318		169		123
UBS U.S. Large Cap Equity Fund—Class C		5,856		—		2,660		1,932		1,264
UBS U.S. Large Cap Equity Fund—Class Y		102,918		—		69,235		—		33,683
UBS U.S. Small Cap Growth Fund—Class A		376,815		218,473		74,652		47,545		36,145
UBS U.S. Small Cap Growth Fund—Class B		2,759		1,681		940		51		87
UBS U.S. Small Cap Growth Fund—Class C		32,913		14,437		8,898		6,270		3,308
UBS U.S. Small Cap Growth Fund—Class Y		420,740		356,380		62,568		—		1,792

Fund	Administrative fees owed		Administrative fees incurred
UBS Global Equity Fund	$	5,747	$	36,026
UBS International Equity Fund		1,317		8,694
UBS Market Neutral Multi-Strategy Fund		1,175		7,191
UBS U.S. Equity Alpha Fund		1,455		9,903
UBS U.S. Equity Opportunity Fund		2,676		16,338
UBS U.S. Large Cap Equity Fund		12,814		77,644
UBS U.S. Small Cap Growth Fund		8,444		50,808

110

The UBS Funds

Notes to financial statements (unaudited)

The following Funds have incurred brokerage commissions with UBS AG, an affiliated broker-dealer. Amounts relating to those transactions for the period ended December 31, 2011, were as follows:

Fund	UBS AG
UBS International Equity Fund	$	243
UBS Market Neutral Multi-Strategy Fund		6,204
UBS U.S. Equity Alpha Fund		165
UBS U.S. Equity Opportunity Fund		89
UBS U.S. Small Cap Growth Fund		183

3. Service and distribution plans

Fund	Class A			Class B			Class C
UBS Global Equity Fund		0.25	%		1.00	%		1.00	%
UBS International Equity Fund		0.25			1.00			1.00
UBS Market Neutral Multi-Strategy Fund		0.25			N/A*			1.00
UBS U.S. Equity Alpha Fund		0.25			N/A*			1.00
UBS U.S. Equity Opportunity Fund		0.25			1.00			1.00
UBS U.S. Large Cap Equity Fund		0.25			1.00			1.00
UBS U.S. Small Cap Growth Fund		0.25			1.00			1.00

* UBS Market Neutral Multi-Strategy Fund and UBS U.S. Equity Alpha Fund do not offer Class B shares.

UBS Global AM (US) also receives the proceeds of the initial sales charges paid upon purchases of Class A shares and the contingent deferred sales charges paid by shareholders upon certain redemptions of Class A, Class B and Class C. At December 31, 2011, certain Funds owed UBS Global AM (US) service and distribution fees, and for the

111

The UBS Funds

Notes to financial statements (unaudited)

period ended December 31, 2011, 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 Global Equity Fund—Class A	$	11,550	$	1,467
UBS Global Equity Fund—Class B		401		17
UBS Global Equity Fund—Class C		14,476		—
UBS International Equity Fund—Class A		1,382		57
UBS International Equity Fund—Class B		18		138
UBS International Equity Fund—Class C		620		—
UBS Market Neutral Multi-Strategy Fund—Class A		712		123
UBS Market Neutral Multi-Strategy Fund—Class C		536		628
UBS U.S. Equity Alpha Fund—Class A		2,550		50
UBS U.S. Equity Alpha Fund—Class C		3,205		13
UBS U.S. Equity Opportunity Fund—Class A		7,745		226
UBS U.S. Equity Opportunity Fund—Class B		18		120
UBS U.S. Equity Opportunity Fund—Class C		3,598		—
UBS U.S. Large Cap Equity Fund—Class A		3,224		2,343
UBS U.S. Large Cap Equity Fund—Class B		71		—
UBS U.S. Large Cap Equity Fund—Class C		2,650		—
UBS U.S. Small Cap Growth Fund—Class A		6,434		110
UBS U.S. Small Cap Growth Fund—Class B		17		—
UBS U.S. Small Cap Growth Fund—Class C		1,971		1,117

4. Transfer agency and related services fees

For the period ended December 31, 2011, UBS Financial Services Inc. received from BNY Mellon, not the Funds, total service fees as follows:

Fund	Amount paid
UBS Global Equity Fund	$	30,033
UBS International Equity Fund		1,484
UBS Market Neutral Multi-Strategy Fund		1,551
UBS U.S. Equity Alpha Fund		4,194
UBS U.S. Equity Opportunity Fund		8,935
UBS U.S. Large Cap Equity Fund		2,061
UBS U.S. Small Cap Growth Fund		5,648

5. Securities lending

112

The UBS Funds

Notes to financial statements (unaudited)

UBS Global Equity Fund, UBS International Equity Fund, UBS U.S. Equity Opportunity Fund, UBS U.S. Large Cap Equity Fund and UBS U.S. Small Cap Growth Fund loaned securities to certain qualified broker dealers, with the Funds' custodian acting as the Funds' lending agent. Cash collateral received is invested in Private Money Market, which is included in the Fund's Portfolio of investments. The value of loaned securities and related collateral outstanding at December 31, 2011, were as follows:

Fund	Market value of securities loaned		Market value of collateral received from securities loaned		Market value of investments of cash collateral received
UBS Global Equity Fund	$	2,460,742	$	2,536,840	$	2,536,840
UBS International Equity Fund		616,076		644,154		644,154
UBS U.S. Equity Opportunity Fund		423,482		887,661		887,661
UBS U.S. Large Cap Equity Fund		1,268,472		1,291,012		1,291,012
UBS U.S. Small Cap Growth Fund		7,497,705		7,707,904		7,707,904

6. Purchases and sales of securities

For the period ended December 31, 2011, aggregate purchases and sales of portfolio securities, excluding short term investments and US Government and agency securities, were as follows:

Fund	Purchases		Sales proceeds
UBS Global Equity Fund	$	42,937,418	$	53,261,176
UBS International Equity Fund		5,178,005		7,348,539
UBS Market Neutral Multi-Strategy Fund		42,738,762		42,688,584
UBS U.S. Equity Alpha Fund		18,621,572		29,298,263
UBS U.S. Equity Opportunity Fund		36,860,316		40,445,856
UBS U.S. Large Cap Equity Fund		59,632,556		72,122,559
UBS U.S. Small Cap Growth Fund		34,212,782		40,384,533

7. Federal income taxes

113

The UBS Funds

Notes to financial statements (unaudited)

The tax character of distributions paid during the fiscal year ended June 30, 2011 were as follows:

	2011
Fund	Distributions paid from ordinary income
UBS Global Equity Fund	$	3,119,145
UBS International Equity Fund		958,768
UBS U.S. Equity Alpha Fund		35,347
UBS U.S. Equity Opportunity Fund		425,326
UBS U.S. Large Cap Equity Fund		1,698,152

At June 30, 2011, 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, 2017			June 30, 2018
UBS Global Equity Fund	$	—		$	(28,073,690	)
UBS International Equity Fund		(407,480	)		(12,259,376	)
UBS U.S. Equity Alpha Fund		(10,000,522	)		(12,503,688	)
UBS U.S. Equity Opportunity Fund		(246,302	)		(20,216,588	)
UBS U.S. Large Cap Equity Fund		(21,228,626	)		(167,517,489	)
UBS U.S. Small Cap Growth Fund		—			(41,811,793	)

Each of the tax years in the four year period ended June 30, 2011, remains subject to examination by the Internal Revenue Service and state taxing authorities.

114

The UBS Funds

Notes to financial statements (unaudited)

8. Line of credit

The Trust has entered into an agreement with JPMorgan Chase Bank to provide a $50 million committed line of credit to the Funds ("Committed Credit Facility") to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of each Fund at the request of shareholders and other temporary or emergency purposes. Interest on amounts borrowed is calculated based on the prevailing rates in effect at the time of borrowing. 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 period ended December 31, 2011, were as follows:

Fund				Average daily borrowings				Number of days outstanding				Interest expense				Weighted average annualized interest rate
UBS Global Equity Fund				$	4,327,758				5			$	524				0.87	%

There were no borrowings from the Committed Credit Facility outstanding as of December 31, 2011.

9. Shares of beneficial interest

For the period ended December 31, 2011, transactions in shares of beneficial interest for each of the Funds were as follows:

UBS Global Equity Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		46,230		$	500,333			—		$	—
Shares repurchased		(492,084	)		(5,494,181	)		(3,140	)		(37,250	)
Shares converted from Class B to Class A		1,487			17,714			(1,523	)		(17,714	)
Dividends reinvested		4,482			47,824			—			—
Redemption fees		—			3,246			—			—
Net decrease		(439,885	)	$	(4,925,064	)		(4,663	)	$	(54,964	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		23,979		$	253,506			41,042		$	523,756
Shares repurchased		(139,861	)		(1,491,978	)		(158,263	)		(1,816,413	)
Dividends reinvested		—			—			9,318			102,029
Redemption fees		—			146			—			—
Net decrease		(115,882	)	$	(1,238,326	)		(107,903	)	$	(1,190,628	)

115

The UBS Funds

Notes to financial statements (unaudited)

UBS International Equity Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		98,551		$	748,272			—		$	—
Shares repurchased		(263,648	)		(1,824,538	)		(1,559	)		(11,410	)
Shares converted from Class B to Class A		147			1,224			(144	)		(1,224	)
Dividends reinvested		20,534			129,572			—			—
Redemption fees		—			1,746			—			—
Net decrease		(144,416	)	$	(943,724	)		(1,703	)	$	(12,634	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		9,176		$	61,893			75,943		$	534,210
Shares repurchased		(70,256	)		(462,371	)		(231,577	)		(1,597,505	)
Dividends reinvested		972			6,045			49,750			314,916
Redemption fees		—			—			—			840
Net decrease		(60,108	)	$	(394,433	)		(105,884	)	$	(747,539	)

UBS Market Neutral Multi-Strategy Fund

	Class A						Class C						Class Y
	Shares			Amount			Shares			Amount			Shares		Amount
Shares sold		31,836		$	306,645			9,372		$	89,046			—	$	—
Shares repurchased		(180,908	)		(1,739,138	)		(33,709	)		(321,614	)		—		—
Dividends reinvested		179			1,717			30			285			7		69
Redemption fees		—			283			—			—			—		—
Net increase (decrease)		(148,893	)	$	(1,430,493	)		(24,307	)	$	(232,283	)		7	$	69

UBS U.S. Equity Alpha Fund

	Class A						Class C						Class Y
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		9,114		$	73,649			10,270		$	75,742			30,814		$	243,861
Shares repurchased		(543,346	)		(4,422,109	)		(123,826	)		(979,400	)		(719,503	)		(5,837,551	)
Dividends reinvested		1,501			12,070			—			—			4,845			38,859
Redemption fees		—			921			—			4			—			563
Net decrease		(532,731	)	$	(4,335,469	)		(113,556	)	$	(903,654	)		(683,844	)	$	(5,554,268	)

UBS U.S. Equity Opportunity Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		5,168		$	30,070			—		$	—
Shares repurchased		(505,332	)		(3,065,581	)		(1,692	)		(10,997	)
Dividends reinvested		59,439			343,560			—			—
Redemption fees		—			189			—			—
Net decrease		(440,725	)	$	(2,691,762	)		(1,692	)	$	(10,997	)

116

The UBS Funds

Notes to financial statements (unaudited)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		8,306		$	48,773			47,950		$	271,499
Shares repurchased		(49,722	)		(295,935	)		(12,224	)		(74,752	)
Dividends reinvested		1,046			5,940			3,779			21,955
Net increase (decrease)		(40,370	)	$	(241,222	)		39,505		$	218,702

UBS U.S. Large Cap Equity Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		43,606		$	647,628			—		$	—
Shares repurchased		(269,894	)		(4,047,907	)		(562	)		(9,133	)
Shares converted from Class B to Class A		2,808			41,096			(2,890	)		(41,096	)
Dividends reinvested		5,482			80,315			—			—
Redemption fees		—			597			—			—
Net decrease		(217,998	)	$	(3,278,271	)		(3,452	)	$	(50,229	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		25,845		$	369,504			706,516		$	10,849,952
Shares repurchased		(27,190	)		(395,821	)		(1,157,070	)		(17,368,093	)
Dividends reinvested		—			—			119,424			1,759,121
Redemption fees		—			—			—			11,054
Net decrease		(1,345	)	$	(26,317	)		(331,130	)	$	(4,747,966	)

UBS U.S. Small Cap Growth Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		169,172		$	2,454,829			—		$	—
Shares repurchased		(515,632	)		(7,510,291	)		—			—
Shares converted from Class B to Class A		534			7,827			(578	)		(7,827	)
Redemption fees		—			1,266			—			—
Net decrease		(345,926	)	$	(5,046,369	)		(578	)	$	(7,827	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		5,836		$	83,783			638,011		$	9,583,453
Shares repurchased		(36,317	)		(467,723	)		(749,776	)		(11,227,209	)
Redemption fees		—			419			—			11,871
Net decrease		(30,481	)	$	(383,521	)		(111,765	)	$	(1,631,885	)

117

The UBS Funds

Notes to financial statements (unaudited)

For the year ended June 30, 2011, transactions in shares of beneficial interest for each of the Funds were as follows:

UBS Global Equity Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		149,340		$	1,920,017			325		$	3,955
Shares repurchased		(1,272,205	)		(15,817,784	)		(9,813	)		(116,256	)
Shares converted from Class B to Class A		14,757			175,773			(15,153	)		(175,773	)
Dividends reinvested		137,883			1,709,749			234			2,843
Redemption fees		—			611			—			—
Net decrease		(970,225	)	$	(12,011,634	)		(24,407	)	$	(285,231	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		16,431		$	197,648			96,980		$	1,251,685
Shares repurchased		(394,695	)		(4,714,816	)		(746,159	)		(9,509,898	)
Dividends reinvested		33,701			402,393			61,666			785,010
Redemption fees		—			26			—			84
Net decrease		(344,563	)	$	(4,114,749	)		(587,513	)	$	(7,473,119	)

UBS International Equity Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		249,435		$	2,003,310			—		$	—
Shares repurchased		(202,651	)		(1,587,735	)		(23,771	)		(189,375	)
Shares converted from Class B to Class A		2,906			20,748			(2,898	)		(20,748	)
Dividends reinvested		34,276			272,493			—			—
Redemption fees		—			1,407			—			—
Net increase (decrease)		83,966		$	710,223			(26,669	)	$	(210,123	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		69,592		$	553,419			124,651		$	994,876
Shares repurchased		(31,259	)		(237,769	)		(856,335	)		(6,607,896	)
Dividends reinvested		3,173			24,751			79,234			632,293
Redemption fees		—			173			—			667
Net increase (decrease)		41,506		$	340,574			(652,450	)	$	(4,980,060	)

UBS Market Neutral Multi-Strategy Fund

	Class A						Class C						Class Y
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		777,025		$	7,714,287			101,962		$	1,010,977			2,012,541		$	20,131,307
Shares repurchased		(316,440	)		(3,117,135	)		(8,065	)		(78,956	)		(512,820	)		(5,000,000	)
Redemption fees		—			6,897			—			199			—			—
Net increase		460,585		$	4,604,049			93,897		$	932,220			1,499,721		$	15,131,307

118

The UBS Funds

Notes to financial statements (unaudited)

UBS U.S. Equity Alpha Fund

	Class A						Class C						Class Y
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		179,920		$	1,500,075			2,316		$	18,343			40,956		$	336,170
Shares repurchased		(1,583,001	)		(13,094,969	)		(412,009	)		(3,366,542	)		(571,800	)		(4,656,964	)
Dividends reinvested		—			—			—			—			4,203			35,347
Redemption fees		—			1,189			—			70			—			913
Net decrease		(1,403,081	)	$	(11,593,705	)		(409,693	)	$	(3,348,129	)		(526,641	)	$	(4,284,534	)

UBS U.S. Equity Opportunity Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		34,230		$	218,247			—		$	—
Shares repurchased		(1,310,446	)		(8,274,037	)		(2,132	)		(13,071	)
Shares converted from Class B to Class A		10,412			69,198			(10,460	)		(69,198	)
Dividends reinvested		55,116			348,885			—			—
Redemption fees		—			756			—			—
Net decrease		(1,210,688	)	$	(7,636,951	)		(12,592	)	$	(82,269	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		24,844		$	155,122			4,632		$	29,422
Shares repurchased		(207,858	)		(1,310,763	)		(57,989	)		(376,431	)
Dividends reinvested		878			5,453			3,007			19,154
Redemption fees		—			160			—			11
Net decrease		(182,136	)	$	(1,150,028	)		(50,350	)	$	(327,844	)

UBS U.S. Large Cap Equity Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		213,632		$	3,246,905			—		$	—
Shares repurchased		(827,199	)		(12,817,491	)		(3,733	)		(50,295	)
Shares converted from Class B to Class A		866			13,311			(887	)		(13,311	)
Dividends reinvested		6,676			103,343			—			—
Redemption fees		—			2,579			—			—
Net decrease		(606,025	)	$	(9,451,353	)		(4,620	)	$	(63,606	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		11,660		$	172,260			2,464,964		$	37,044,986
Shares repurchased		(79,289	)		(1,160,430	)		(4,738,066	)		(71,656,774	)
Dividends reinvested		—			—			—			1,579,780
Redemption fees		—			90			101,333			16,648
Net decrease		(67,629	)	$	(988,080	)		(2,171,769	)	$	(33,015,360	)

119

The UBS Funds

Notes to financial statements (unaudited)

UBS U.S. Small Cap Growth Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		571,513		$	8,030,544			—		$	—
Shares repurchased		(876,247	)		(11,899,215	)		(1,360	)		(15,253	)
Shares converted from Class B to Class A		3,726			50,744			(4,007	)		(50,744	)
Redemption fees		—			3,633			—			—
Net decrease		(301,008	)	$	(3,814,294	)		(5,367	)	$	(65,997	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		20,977		$	283,069			1,835,735		$	26,999,341
Shares repurchased		(57,351	)		(744,060	)		(3,705,564	)		(52,481,542	)
Redemption fees		—			9			—			16,664
Net decrease		(36,374	)	$	(460,982	)		(1,869,829	)	$	(25,465,537	)

120

The UBS Funds

General information (unaudited)

Quarterly Form N-Q portfolio schedule

Proxy voting policies, procedures and record

121

PRESORTED
STANDARD
U.S. POSTAGE
PAID
COMPUTERSHARE

UBS Global Asset Management (Americas) Inc.

1285 Avenue of the Americas
New York, NY 10019

S1174

UBS Asset
Allocation Funds

December 31, 2011

The UBS Funds—Asset Allocation

Semiannual Report

Table of contents

President's letter					1

Market commentary					2

Asset Allocation

UBS Dynamic Alpha Fund					4

UBS Global Allocation Fund					21

UBS Global Frontier Fund					34

Explanation of expense disclosure					45

Statement of assets and liabilities					47

Statement of operations					49

Statement of changes in net assets					50

Financial highlights					52

Notes to financial statements					58

General information					78

This page intentionally left blank.

President's letter

February 15, 2012

Dear Shareholder,

As always, we remain firmly dedicated to your investment success. Thank you for your continued support.

Sincerely,

Mark E. Carver
President
The UBS Funds
Managing Director
UBS Global Asset Management (Americas) Inc.

The markets in review

Moderating growth in many countries

Global equities declined

The markets in review

Riskier fixed income securities produced mixed results

The US taxable spread sectors (non-US Treasury fixed income securities) were a study in contrasts during the reporting period. Over the first half of the period, investor risk aversion was often elevated due to concerns about the European sovereign debt crisis, signs of decelerating global growth and the downgrade of US long-term debt. Against this backdrop, US Treasury yields fell sharply. Risk appetite then increased at times during the second half of the period, given signs that the US economy was gaining some traction. All told, during the six months ended December 31, 2011, spread sectors typically underperformed Treasuries, and the overall US bond market, as measured by the Barclays Capital US Aggregate Index,⁴ returned 4.98%.

Looking more closely at lower-rated fixed-income securities, the BofA Merrill Lynch US High Yield Cash Pay Constrained Index⁵ declined 0.39% during the reporting period. In contrast, emerging markets debt, as measured by the J.P. Morgan Emerging Markets Bond Index Global (EMBI Global),⁶ rose 3.21%. The emerging markets debt asset class was supported by continued solid growth in developing countries and generally solid demand from investors seeking to generate incremental yield in the low interest rate environment.

⁴ The Barclays Capital US Aggregate Index is an unmanaged broad based index designed to measure the US-dollar-denominated, investment-grade, fixed rate taxable bond market. The index includes bonds from the Treasury, government-related, corporate, mortgage-backed, asset-backed and commercial mortgage-backed sectors. US agency hybrid adjustable rate mortgage (ARM) securities were added to the Index on April 1, 2007. Investors should note that indices do not reflect the deduction of fees and expenses.

⁵ The BofA Merrill Lynch US High Yield Cash Pay Constrained Index is an unmanaged index of publicly placed non-convertible, coupon-bearing US dollar denominated below investment grade corporate 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. Investors should note that indices do not reflect the deduction of fees and expenses.

⁶ The J.P. Morgan Emerging Markets Bond Index Global (EMBI Global) is an unmanaged index which is designed to track total returns for US-dollar denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans and Eurobonds. Investors should note that indices do not reflect the deduction of fees and expenses.

UBS Dynamic Alpha Fund

Portfolio performance

For the six months ended December 31, 2011, Class A shares of UBS Dynamic Alpha Fund (the "Fund") returned 0.83% (Class A shares declined 4.73% after the deduction of the maximum sales charge), while Class Y shares returned 0.99%. For purposes of comparison, the BofA Merrill Lynch US Treasury 1-5 Year Index returned 1.82% over the same time period, the MSCI World Free Index (net) declined 10.29% and the US Consumer Price Index (CPI) declined 0.02%. (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 6; 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 the Index returns do not reflect the deduction of fees and expenses.)

The Fund produced a modest gain during the reporting period, primarily due to currency positioning and security selection.

During the review period, we used derivatives for risk management purposes and as a tool to help enhance returns across various strategies. With respect to our currency strategy, derivatives had a direct positive impact on Fund performance. At the market level, derivatives were just one tool among others that we used to implement our market allocation strategy. Having said that, overall, our market allocation strategy detracted from Fund performance during the period.

Portfolio performance summary¹

What worked

• Currency strategies, overall, were positive for performance.

– The Fund's long position in the Swiss franc was beneficial. The currency appreciated as its economic fundamentals were relatively solid during the reporting period.

– Underweighting the euro was a modest contributor to performance, especially during the fourth quarter when the European sovereign debt crisis escalated and the euro depreciated.

• Relative value strategies, overall, were positive for performance.

– The Fund's long position in investment grade credit relative to treasuries was beneficial as investor appetite for yield caused bond prices to rise, and narrowed credit spreads.

– An overweight to US large caps vs. US small caps contributed to the Fund's performance. In general, we believed, and continue to believe, that expectations for higher growth globally favors large caps with a global business, while, in our view, small caps face more difficulty as stimulus is withdrawn.

• Security selection in several sleeves made a positive contribution to performance during the period. Security selection within the US Equity Market Neutral sleeve and US Core Bond sleeve modestly contributed to results.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 2.

UBS Dynamic Alpha Fund

What didn't work

• The Fund's positioning among risk assets detracted from results.

– When the reporting period began, the Fund had a 30% equity market exposure. However, given a host of macro issues, including the European sovereign debt crisis and slowing global growth, we took a more conservative approach for the portfolio and moved to a net short allocation to equities in early August and September. While this was positive for performance when equities sold off sharply mid-period, it later detracted from performance when equities rebounded in the second half of the review period.

– Within equities, a preference for international stocks was not rewarded, as they significantly lagged their US counterparts.

• Overall, currency strategies contributed to the Fund's performance, yet we did have some detractors during the period.

– The Fund's long position in the Mexican peso was not rewarded, as it performed poorly.

– Having an overweight to the Polish zloty had a negative impact on the Fund's performance.

UBS Dynamic Alpha Fund

Average annual total returns for periods ended 12/31/11 (unaudited)

	6 months			1 year			5 years			Inception¹
Before deducting maximum sales charge
Class A²		0.83	%		(1.63	)%		(0.87	)%		1.64	%
Class B³		0.53			(2.38	)		(1.63	)		0.98⁶
Class C⁴		0.53			(2.38	)		(1.63	)		0.87
Class Y⁵		0.99			(1.28	)		(0.56	)		1.95
After deducting maximum sales charge
Class A²		(4.73	)%		(7.08	)%		(1.98	)%		0.82	%
Class B³		(4.47	)		(7.26	)		(1.84	)		0.98⁶
Class C⁴		(0.47	)		(3.36	)		(1.63	)		0.87
BofA Merrill Lynch US Treasury 1-5 Year Index⁷		1.82	%		3.36	%		4.77	%		4.20	%
MSCI World Free Index (net)⁸		(10.29	)		(5.54	)		(2.37	)		2.58
US Consumer Price Index (CPI)⁹		(0.02	)		2.96			2.26			2.46

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2011 prospectuses were as follows: Class A—1.84% and 1.81%; Class B—2.68% and 2.55%; Class C—2.60% and 2.56%; Class Y—1.54% and 1.54%. 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 UBS Global Asset Management (Americas) Inc., the Fund's investment advisor ("UBS Global AM (Americas)" or 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 expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and security loan fees for securities sold short) to the extent necessary so that the Fund's ordinary operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and security loan fees for securities sold short), through the period ending October 27, 2012, do not exceed 1.35% for Class A shares, 2.10% for Class B shares, 2.10% for Class C shares and 1.10% for Class Y shares. 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 January 27, 2005. Inception date of the indices, for the purpose of this illustration, is January 31, 2005.

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

⁶ Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁷ The BofA Merrill Lynch US Treasury 1-5 Year Index is an unmanaged index designed to track US Treasury securities with maturities between 1 and 5 years. Investors should note that indices do not reflect the deduction of fees and expenses.

⁸ The MSCI World Free Index (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of May 2011, the index consisted of 24 developed market country indices. Dividends are reinvested after deduction of withholding tax, using tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates. Had US tax rates been applied, the performance of the index would be different. The index is constructed and managed with a view to being fully investable from the perspective of international institutional investors. Investors should note that indices do not reflect the deduction of fees and expenses.

⁹ The US 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. Investors should note that indices do not reflect the deduction of fees and expenses.

UBS Dynamic Alpha Fund

Top ten long-term fixed income holdings (unaudited)

As of December 31, 2011

	Percentage of net assets
JPMorgan Chase & Co., 4.950%, due 03/25/20		2.1	%
Citigroup, Inc., 6.000%, due 08/15/17		2.1
UK Gilts, 1.750%, due 01/22/17		1.6
Morgan Stanley, 5.950%, due 12/28/17		1.5
AT&T, Inc., 5.550%, due 08/15/41		1.5
Bank of America Corp., 5.650%, due 05/01/18		1.4
Anheuser-Busch InBev Worldwide, Inc., 5.000%, due 04/15/20		1.3
General Electric Capital Corp., Series A, 3.750%, due 11/14/14		1.3
Comcast Corp., 6.300%, due 11/15/17		1.3
Kraft Foods, Inc., 5.375%, due 02/10/20		1.2
Total		15.3	%

Country exposure by issuer, top five (unaudited)¹

As of December 31, 2011

	Percentage of net assets
United States		43.1	%
United Kingdom		15.3
Netherlands		4.0
Canada		3.6
France		2.8
Total		68.8	%

¹ This table includes long and short positions.

UBS Dynamic Alpha Fund

Industry diversification (unaudited)²

As a percentage of net assets as of December 31, 2011

Common stocks
Household products	0.00	%³
Bonds
Corporate bonds
Automobiles	0.41
Beverages	2.09
Building materials	0.25
Capital markets	4.26
Chemicals	0.18
Commercial banks	14.11
Commercial services & supplies	1.78
Communications equipment	0.22
Computers & peripherals	0.63
Consumer finance	0.83
Diversified financial services	11.00
Diversified operations	0.64
Diversified telecommunication services	5.90
Electric utilities	4.40
Energy equipment & services	0.68
Engineering & construction	0.74
Food & staples retailing	0.95
Food products	1.53
Gas utilities	0.98
Health care equipment & supplies	0.38
Health care providers & services	0.04
Independent power producers & energy traders	0.33
Insurance	4.67
Leisure equipment & products	0.27
Media	4.36
Metals & mining	3.61
Multi-utilities	1.32
Oil, gas & consumable fuels	6.92
Pharmaceuticals	1.61	%
Real estate investment trust (REIT)	0.12
Real estate management & development	0.25
Road & rail	0.78
Specialty retail	0.28
Tobacco	2.54
Transportation	0.24
Water utilities	0.35
Wireless telecommunication services	1.32
Total corporate bonds	80.97	%
Collateralized debt obligation	0.00³
Mortgage & agency debt securities	0.01
US government obligation	0.13
Non-US government obligations	3.10
Total bonds	84.21	%
Short-term investment	6.31
Investment of cash collateral from securities loaned	0.53
Total investments before investments sold short	91.05	%
Investments sold short
Common stocks
Household products	(0.00	)³
Oil, gas & consumable fuels	(0.00	)³
Total investments sold short	(0.00	)%³
Total investments, net of investments sold short	91.05
Cash and other assets, less liabilities	8.95
Net assets	100.00	%

² Figures represent the industry breakdown of direct investments of UBS Dynamic Alpha Fund. Figures would be different if a breakdown of derivatives exposure was included.

³ Amount represents less than 0.005%.

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks: 0.00%¹
United States—0.00%¹
Procter & Gamble Co (cost $6,279)		100	$	6,672
	Face amount
Bonds: 84.21%
Corporate bonds: 80.97%
Australia: 2.54%
Commonwealth Bank of Australia, 3.500%, due 03/19/15²	$	1,200,000		1,225,272
National Australia Bank Ltd., 4.000%, due 07/13/20	EUR	1,200,000		1,566,777
Rio Tinto Finance USA Ltd., 4.125%, due 05/20/21	$	2,600,000		2,794,966
Telstra Corp. Ltd., 4.800%, due 10/12/21²		300,000		318,166
Westpac Banking Corp., 4.125%, due 05/25/18	EUR	900,000		1,192,121
Total Australia corporate bonds				7,097,302
Brazil: 0.07%
Petrobras International Finance Co., 5.375%, due 01/27/21	$	200,000		209,538
Canada: 3.63%
Bank of Montreal, 6.020%, due 05/02/18	CAD	750,000		870,081
Bank of Nova Scotia, 4.100%, due 06/08/17		1,100,000		1,159,613
Barrick Gold Corp., 2.900%, due 05/30/16	$	700,000		718,440
Canadian Imperial Bank of Commerce, 3.400%, due 01/14/16	CAD	750,000		766,093
Canadian Natural Resources Ltd., 3.450%, due 11/15/21³	$	500,000		521,119
Greater Toronto Airports Authority, 6.980%, due 10/15/32	CAD	500,000		676,363
Hydro One, Inc., 5.360%, due 05/20/36		700,000		826,663
Rogers Communications, Inc., 5.340%, due 03/22/21		200,000		211,661
Royal Bank of Canada, 3.360%, due 01/11/16		250,000		254,991
3.660%, due 01/25/17		1,000,000		1,033,257
Suncor Energy, Inc., 6.500%, due 06/15/38	$	1,250,000		1,574,320
Teck Resources Ltd., 3.150%, due 01/15/17		600,000		612,958

	Face amount		Value
Toronto-Dominion Bank, 3.367%, due 11/02/20⁴	CAD	900,000	$	897,456
Total Canada corporate bonds				10,123,015
Cayman Islands: 2.43%
Hutchison Whampoa International Ltd., 7.625%, due 04/09/19²	$	1,450,000		1,786,307
New York Life Funding, 5.125%, due 02/03/15	GBP	500,000		840,882
Principal Financial Global Funding II LLC, 4.500%, due 01/26/17	EUR	550,000		718,028
Transocean, Inc., 6.000%, due 03/15/18	$	1,150,000		1,175,324
Vale Overseas Ltd., 5.625%, due 09/15/19		2,050,000		2,258,282
Total Cayman Islands corporate bonds				6,778,823
China: 0.14%
Standard Chartered Bank Hong Kong Ltd., 0.648%, due 04/13/17⁴		400,000		389,171
France: 2.80%
Autoroutes du Sud de la France SA, 5.625%, due 07/04/22	EUR	750,000		1,036,620
AXA SA, 5.250%, due 04/16/40⁴		1,400,000		1,322,279
Banque PSA Finance SA, 3.875%, due 01/18/13		1,000,000		1,286,239
BNP Paribas SA, 3.500%, due 12/07/16	GBP	350,000		518,886
Casino Guichard Perrachon SA, 5.500%, due 01/30/15	EUR	900,000		1,216,893
EDF SA, 6.950%, due 01/26/39²	$	350,000		411,919
France Telecom SA, 7.250%, due 01/28/13	EUR	350,000		478,403
Societe Generale SA, 2.200%, due 09/14/13²	$	1,180,000		1,108,702
5.400%, due 01/30/18	GBP	350,000		424,720
Total France corporate bonds				7,804,661
Germany: 0.24%
Muenchener Rueckversicherungs AG, 6.000%, due 05/26/41⁴	EUR	200,000		240,138
RWE AG, 4.625%, due 09/28/15^4,5		350,000		419,013
Total Germany corporate bonds				659,151

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
Ireland: 0.80%
CRH Finance Ltd., 7.375%, due 05/28/14	EUR	500,000	$	706,615
GE Capital European Funding, 6.025%, due 03/01/38		1,100,000		1,535,576
Total Ireland corporate bonds				2,242,191
Italy: 0.40%
Banco Popolare SC, 4.125%, due 10/22/14		300,000		345,869
Telecom Italia SpA, 7.000%, due 01/20/17		350,000		451,108
7.375%, due 12/15/17	GBP	200,000		309,482
Total Italy corporate bonds				1,106,459
Luxembourg: 1.08%
ArcelorMittal, 9.000%, due 02/15/15	$	1,300,000		1,437,262
Enel Finance International SA, 6.000%, due 10/07/39²		450,000		362,181
GAZ Capital SA for Gazprom, 6.580%, due 10/31/13	GBP	750,000		1,208,428
Total Luxembourg corporate bonds				3,007,871
Mexico: 0.57%
America Movil SAB de CV, 3.625%, due 03/30/15	$	1,150,000		1,205,052
5.000%, due 03/30/20		350,000		386,670
Total Mexico corporate bonds				1,591,722
Netherlands: 3.99%
Alliander NV, 5.500%, due 04/20/16	EUR	240,000		353,939
Allianz Finance II BV, 5.750%, due 07/08/41⁴		1,300,000		1,431,553
Daimler International Finance BV, 7.875%, due 01/16/14		800,000		1,153,645
Deutsche Telekom International Finance BV, 6.500%, due 04/08/22	GBP	350,000		637,926
E.ON International Finance BV, 6.000%, due 10/30/19		500,000		913,459
HIT Finance BV, 5.750%, due 03/09/18	EUR	200,000		254,837
ING Bank NV, 6.125%, due 05/29/23⁴		90,000		100,150
Koninklijke KPN NV, 3.750%, due 09/21/20		1,500,000		1,940,777
Linde Finance BV, 7.375%, due 07/14/66⁴		350,000		486,957

	Face amount		Value
Rabobank Nederland NV, 5.875%, due 05/20/19	EUR	550,000	$	739,363
Repsol International Finance BV, 4.250%, due 02/12/16		500,000		652,809
4.750%, due 02/16/17		350,000		465,839
RWE Finance BV, 5.625%, due 12/06/23	GBP	400,000		711,330
Scotland International Finance BV, 4.250%, due 05/23/13²	$	800,000		712,000
TenneT Holding BV, 6.655%, due 06/01/17^4,5	EUR	450,000		580,997
Total Netherlands corporate bonds				11,135,581
Netherlands Antilles: 0.35%
Teva Pharmaceutical Finance Co. BV, 3.650%, due 11/10/21	$	300,000		305,140
Teva Pharmaceutical Finance IV BV, 3.650%, due 11/10/21		650,000		661,138
Total Netherlands Antilles corporate bonds				966,278
Portugal: 0.33%
EDP Finance BV, 4.900%, due 10/01/19²		600,000		457,680
5.375%, due 11/02/12²		457,000		451,351
Total Portugal corporate bonds				909,031
Qatar: 0.41%
Qtel International Finance Ltd., 6.500%, due 06/10/14²		1,050,000		1,142,925
South Korea: 0.27%
GS Caltex Corp., 5.500%, due 10/15/15⁶		700,000		750,400
Spain: 2.26%
Banco Santander SA, 4.375%, due 03/16/15	EUR	900,000		1,164,289
BBVA US Senior SAU, 3.250%, due 05/16/14	$	850,000		805,141
Gas Natural Capital Markets SA, 5.250%, due 07/09/14	EUR	900,000		1,190,533
Santander International Debt SAU, 3.381%, due 12/01/15		700,000		845,416
Telefonica Emisiones SAU, 4.693%, due 11/11/19		500,000		607,702
5.375%, due 02/02/18	GBP	1,100,000		1,687,288
Total Spain corporate bonds				6,300,369
Sweden: 1.08%
Nordea Bank AB, 4.000%, due 06/29/20	EUR	850,000		1,105,008
6.250%, due 09/10/18⁴		450,000		598,135

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
Sweden—(Concluded)
Svenska Handelsbanken AB, 5.125%, due 03/30/20²	$	1,200,000	$	1,300,637
Total Sweden corporate bonds				3,003,780
Switzerland: 0.89%
Credit Suisse AG, 5.400%, due 01/14/20		1,100,000		1,037,482
Credit Suisse/London, 5.125%, due 09/18/17	EUR	1,050,000		1,451,358
Total Switzerland corporate bonds				2,488,840
United Kingdom: 13.74%
Abbey National Treasury Services PLC, 3.875%, due 11/10/14²	$	650,000		610,030
Aviva PLC, 5.250%, due 10/02/23⁴	EUR	1,400,000		1,721,352
B.A.T. International Finance PLC, 9.500%, due 11/15/18²	$	750,000		1,018,410
BAA Funding Ltd., 6.750%, due 12/03/26	GBP	1,150,000		2,078,049
Barclays Bank PLC, 0.740%, due 09/11/17⁴	$	900,000		783,063
5.750%, due 08/17/21	GBP	450,000		701,274
BP Capital Markets PLC, 3.561%, due 11/01/21	$	280,000		291,503
3.875%, due 03/10/15		700,000		747,465
Brambles Finance PLC, 4.625%, due 04/20/18	EUR	400,000		546,712
British Sky Broadcasting Group PLC, 9.500%, due 11/15/18²	$	600,000		776,522
British Telecommunications PLC, 8.500%, due 12/07/16	GBP	925,000		1,755,540
Friends Life Group PLC, 8.250%, due 04/21/22		800,000		1,096,438
HSBC Capital Funding LP, 5.369%, due 03/24/14^4,5	EUR	400,000		445,222
HSBC Holdings PLC, 5.100%, due 04/05/21	$	850,000		903,204
6.250%, due 03/19/18	EUR	900,000		1,197,479
6.500%, due 09/15/37	$	2,450,000		2,418,373
Imperial Tobacco Finance PLC, 4.500%, due 07/05/18	EUR	1,200,000		1,595,826
9.000%, due 02/17/22	GBP	650,000		1,358,457
Lloyds Banking Group PLC, 5.875%, due 07/08/14	EUR	1,300,000		1,584,086
Lloyds TSB Bank PLC, 6.500%, due 03/24/20		750,000		761,553
National Express Group PLC, 6.250%, due 01/13/17	GBP	350,000		584,030

	Face amount		Value
Old Mutual PLC, 4.500%, due 01/18/17⁴	EUR	200,000	$	259,038
Royal Bank of Scotland PLC, 3.400%, due 08/23/13	$	1,550,000		1,507,936
4.875%, due 03/16/15		750,000		717,137
4.875%, due 01/20/17	EUR	550,000		672,437
SABMiller PLC, 4.500%, due 01/20/15		600,000		824,368
Scottish & Southern Energy PLC, 5.453%, due 10/01/15^4,5	GBP	550,000		831,942
Standard Chartered PLC, 3.850%, due 04/27/15²	$	1,650,000		1,660,664
Tesco PLC, 6.125%, due 02/24/22	GBP	450,000		824,992
Tesco Property Finance 4 PLC, 5.801%, due 10/13/40⁶		348,306		588,621
Thames Water Utilities Finance Ltd., 5.125%, due 09/28/37		600,000		980,186
Vodafone Group PLC, 5.625%, due 02/27/17	$	1,600,000		1,857,814
Wales & West Utilities Finance PLC, 5.125%, due 12/02/16	GBP	900,000		1,541,481
Western Power Distribution East Midlands PLC, 5.250%, due 01/17/23		450,000		765,526
Western Power Distribution West Midlands PLC, 5.750%, due 04/16/32		400,000		690,608
WPP PLC, 6.000%, due 04/04/17		350,000		601,922
6.625%, due 05/12/16	EUR	700,000		1,004,500
Total United Kingdom corporate bonds				38,303,760
United States: 42.95%
Abbott Laboratories, 6.000%, due 04/01/39	$	550,000		698,746
Alcoa, Inc., 6.150%, due 08/15/20		2,150,000		2,233,798
Allegheny Energy Supply Co. LLC, 5.750%, due 10/15/19²		850,000		909,075
Alltel Corp., 7.875%, due 07/01/32		550,000		786,070
Altria Group, Inc., 4.750%, due 05/05/21		2,800,000		3,082,906
American Honda Finance Corp., 3.875%, due 09/16/14	EUR	450,000		615,494
American International Group, Inc., 5.850%, due 01/16/18	$	1,850,000		1,809,328
Anadarko Petroleum Corp., 6.375%, due 09/15/17		2,150,000		2,492,138
7.625%, due 03/15/14		100,000		111,086

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
United States—(Continued)
Anheuser-Busch InBev Worldwide, Inc., 5.000%, due 04/15/20	$	3,100,000	$	3,553,189
AT&T, Inc., 3.875%, due 08/15/21		1,225,000		1,295,745
5.550%, due 08/15/41		3,450,000		4,062,089
Bank of America Corp., 5.250%, due 11/09/16	GBP	400,000		546,134
5.650%, due 05/01/18	$	4,000,000		3,811,012
7.375%, due 05/15/14		2,250,000		2,332,933
Boston Scientific Corp., 6.000%, due 01/15/20		950,000		1,060,522
Burlington Northern Santa Fe LLC, 3.450%, due 09/15/21		1,550,000		1,597,568
Cameron International Corp., 6.375%, due 07/15/18		600,000		710,567
Cargill, Inc., 3.250%, due 11/15/21²		200,000		201,289
CBS Corp., 8.875%, due 05/15/19		400,000		513,757
Citigroup, Inc., 6.000%, due 08/15/17⁷		5,500,000		5,763,791
Comcast Corp., 6.300%, due 11/15/17		2,950,000		3,489,254
ConocoPhillips, 4.600%, due 01/15/15		300,000		331,798
Dell, Inc., 5.400%, due 09/10/40		650,000		730,757
DirecTV Holdings LLC, 5.000%, due 03/01/21		2,400,000		2,568,526
Dow Chemical Co., 5.900%, due 02/15/15		450,000		500,724
Duke Energy Corp., 2.150%, due 11/15/16		500,000		501,421
5.050%, due 09/15/19		250,000		283,639
Energy Transfer Partners LP, 6.050%, due 06/01/41		350,000		343,192
9.700%, due 03/15/19		1,250,000		1,531,438
Enterprise Products Operating LLC, 3.200%, due 02/01/16		1,520,000		1,573,626
ERAC USA Finance LLC, 5.250%, due 10/01/20²		350,000		377,351
ERP Operating LP, REIT, 5.750%, due 06/15/17		300,000		332,621
FirstEnergy Solutions Corp., 6.050%, due 08/15/21		700,000		776,787
General Electric Capital Corp., Series A, 3.750%, due 11/14/14		3,350,000		3,531,128
6.000%, due 08/07/19		800,000		918,903
Series A, 6.750%, due 03/15/32⁷		2,300,000		2,693,164

	Face amount		Value
Georgia Power Co., 5.400%, due 06/01/40	$	600,000	$	722,840
GlaxoSmithKline Capital, Inc., 6.375%, due 05/15/38		1,100,000		1,471,857
Goldman Sachs Group, Inc., 4.375%, due 03/16/17	EUR	2,250,000		2,726,815
6.150%, due 04/01/18	$	1,700,000		1,754,551
Hasbro, Inc., 6.350%, due 03/15/40		700,000		756,755
Hewlett-Packard Co., 2.625%, due 12/09/14		1,010,000		1,018,899
Home Depot, Inc., 4.400%, due 04/01/21		700,000		789,219
Indiana Michigan Power Co., 7.000%, due 03/15/19		350,000		430,498
JPMorgan Chase & Co., 4.950%, due 03/25/20		5,500,000		5,845,780
Kellogg Co., 1.875%, due 11/17/16		600,000		602,419
Kinder Morgan Energy Partners LP, 4.150%, due 03/01/22³		1,700,000		1,729,131
Kraft Foods, Inc., 5.375%, due 02/10/20		3,000,000		3,461,553
Merck & Co., Inc., 6.550%, due 09/15/37		950,000		1,324,386
MetLife, Inc., 7.717%, due 02/15/19		1,500,000		1,880,919
Morgan Stanley, 5.450%, due 01/09/17		1,000,000		962,764
5.950%, due 12/28/17		4,400,000		4,192,038
Motorola Solutions, Inc., 6.000%, due 11/15/17		550,000		616,476
NBCUniversal Media LLC, 4.375%, due 04/01/21		250,000		263,837
News America, Inc., 6.900%, due 03/01/19		450,000		528,883
NuStar Logistics LP, 4.800%, due 09/01/20		1,150,000		1,197,642
Oncor Electric Delivery Co. LLC, 7.000%, due 05/01/32		150,000		198,053
ONEOK Partners LP, 8.625%, due 03/01/19		200,000		256,738
Pacific Gas & Electric Co., 6.050%, due 03/01/34		650,000		804,595
PacifiCorp, 6.000%, due 01/15/39		1,200,000		1,532,357
Pemex Project Funding Master Trust, 5.500%, due 02/24/25⁶	EUR	950,000		1,141,011
PepsiCo, Inc., 3.125%, due 11/01/20	$	1,400,000		1,455,014
Philip Morris International, Inc., 2.900%, due 11/15/21		300,000		305,865

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Concluded)
United States—(Concluded)
PNC Funding Corp., 5.125%, due 02/08/20	$	200,000	$	225,994
Principal Financial Group, Inc., 8.875%, due 05/15/19		600,000		747,026
Progress Energy, Inc., 4.400%, due 01/15/21		400,000		440,914
Prudential Financial, Inc., 4.500%, due 11/15/20		1,800,000		1,809,985
Republic Services, Inc., 5.250%, due 11/15/21		1,750,000		1,984,304
Reynolds American, Inc., 6.750%, due 06/15/17		1,150,000		1,307,122
Sempra Energy, 6.000%, due 10/15/39		750,000		925,394
SLM Corp., 6.250%, due 01/25/16		1,750,000		1,701,838
Southwestern Electric Power Co., 6.200%, due 03/15/40		250,000		305,356
Time Warner Cable, Inc., 6.750%, due 06/15/39		300,000		354,515
8.250%, due 04/01/19		1,650,000		2,072,420
Valero Energy Corp., 6.625%, due 06/15/37		1,400,000		1,501,132
10.500%, due 03/15/39		500,000		737,606
Verizon Communications, Inc., 6.350%, due 04/01/19		1,350,000		1,644,984
Virginia Electric and Power Co., 8.875%, due 11/15/38		250,000		413,056
Wachovia Corp., 5.750%, due 02/01/18		2,000,000		2,272,044
Waste Management, Inc., 7.375%, due 03/11/19		900,000		1,133,330
WEA Finance LLC, 5.750%, due 09/02/15²		650,000		690,893
WellPoint, Inc., 4.350%, due 08/15/20		100,000		108,024
Wells Fargo & Co., 2.625%, due 12/15/16		1,450,000		1,449,116
Xcel Energy, Inc., 4.700%, due 05/15/20		1,150,000		1,296,075
Total United States corporate bonds				119,763,589
Total corporate bonds (cost $228,566,209)				225,774,457

	Face amount		Value
Collateralized debt obligation: 0.00%
Cayman Islands: 0.00%
LNR CDO Ltd., Series 2006-1A, Class FFX, 7.592%, due 05/28/43^†2,8,9(cost $8,118,607)	$	8,000,000	$	0
Mortgage & agency debt securities: 0.01%
United States: 0.01%
Credit Suisse Mortgage Capital Certificates, Series 2006-4, Class CB1, 4.748%, due 05/25/36⁴		181,088		2
GSR Mortgage Loan Trust, Series 2006-5F, Class B1, 5.933%, due 06/25/36⁴		172,152		1
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-7, Class B11, 2.915%, due 04/25/35⁴		1,405,785		35,821
WaMu Mortgage Pass-Through Certificates, Series 2006-AR16, Class 3B1, 1.820%, due 12/25/36⁴		178,718		36
Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR12, Class 2B1, 5.843%, due 09/25/36⁴		36,842		46
Series 2006-18, Class B1, 6.000%, due 12/26/36		393,338		197
Total mortgage & agency debt securities (cost $440,978)				36,103
US government obligation: 0.13%
US Treasury Notes, 0.875%, due 11/30/16 (cost $350,313)		350,000		351,066
Non-US government obligations: 3.10%
Germany: 1.51%
Bundesrepublik Deutschland, 4.000%, due 07/04/16	EUR	1,600,000		2,373,095
Kreditanstalt fuer Wiederaufbau, 2.050%, due 02/16/26	JPY	132,000,000		1,835,152
				4,208,247

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Concluded)
Non-US government obligations—(Concluded)
United Kingdom: 1.59%
UK Gilts, 1.750%, due 01/22/17	GBP	2,750,000	$	4,419,030
Total Non-US government obligations (cost $8,711,321)				8,627,277
Total bonds (cost $246,187,428)				234,788,903
	Shares
Short-term investment: 6.31%
Investment company: 6.31%
UBS Cash Management Prime Relationship Fund¹⁰(cost $17,594,250)		17,594,250		17,594,250
Investment of cash collateral from securities loaned: 0.53%
UBS Private Money Market Fund LLC¹⁰(cost $1,487,143)		1,487,143		1,487,143
Total investments before investments sold short: 91.05% (cost $265,275,100)				253,876,968

	Shares			Value
Investments sold short: 0.00%¹
Common stocks: 0.00%¹
United Kingdom: 0.00%¹
BP PLC		(23	)	$	(163	)
United States—0.00%¹
Procter & Gamble Co.		(100	)		(6,672	)
Total common stocks and investments sold short (proceeds $6,238)					(6,835	)
Total investments, net of investments sold short: 91.05%					253,870,133
Cash and other assets, less liabilities: 8.95%					24,964,037
Net assets: 100.00%				$	278,834,170

Notes to portfolio of investments

Aggregate cost for federal income tax purposes, before investments sold short, was substantially the same as for book purposes; and net unrealized depreciation consisted of:

Gross unrealized appreciation	$	1,548,989
Gross unrealized depreciation		(12,947,121	)
Net unrealized depreciation of investments	$	(11,398,132	)

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 44.

^† Holding is illiquid. At December 31, 2011, the value of this security amounted to $0 or 0.00% of net assets.

¹ Amount represents less than 0.005%.

² Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities are considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2011, the value of these securities amounted to $15,521,374 or 5.57% of net assets.

³ Security, or portion thereof, was on loan at December 31, 2011.

⁴ Variable or floating rate security. The interest rate shown is the current rate as of December 31, 2011 and changes periodically.

⁵ Perpetual bond security. The maturity date reflects the next call date.

⁶ Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. At December 31, 2011, the value of these securities amounted to $2,480,032 or 0.89% of net assets.

⁷ All or a portion of these securities have been designated as collateral for open short positions.

⁸ Security is in default.

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

⁹ This security, which represents 0.00% of net assets as of December 31, 2011, is considered restricted. (See restricted security table below for more information.)

Restricted security				Acquisition date				Acquisition cost				Acquisition cost as a percentage of net assets				Value 12/31/11				Value as a percentage of net assets
LNR CDO Ltd., Series 2006-1A, Class FFX, 7.592%, due 05/28/43				11/03/06				$	8,138,056				2.92	%		$	0				0.00	%

¹⁰ The table below details the Fund's investments in funds advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Funds.

Security description	Value 06/30/11		Purchases during the six months ended 12/31/11		Sales during the six months ended 12/31/11		Net realized gain during the six months ended 12/31/11			Change in net unrealized appreciation/ (depreciation) during the six months ended 12/31/11			Value 12/31/11		Income earned from affiliate for the six months ended 12/31/11
UBS Cash Management Prime Relationship Fund	$	45,918,039	$	263,451,925	$	291,775,714	$	—		$	—		$	17,594,250	$	35,475
UBS Private Money Market Fund LLC^a		8,124,287		15,918,562		22,555,706		—			—			1,487,143		196
UBS Global Corporate Bond Relationship Fund		—		47,664,000		47,147,023		(516,977	)		—			—		—
UBS Opportunistic Emerging Markets Debt Relationship Fund		7,694,043		—		7,792,467		2,841,883			(2,743,459	)		—		—
UBS U.S. Equity Alpha Relationship Fund		38,923,054		—		38,614,590		11,130,209			(11,438,673	)		—		—
	$	100,659,423	$	327,034,487	$	407,885,500	$	13,455,115		$	(14,182,132	)	$	19,081,393	$	35,671

^a The adviser does earn a management fee from this affiliated fund, and any income earned is net of expenses. Please see the Notes to financial statements for further information.

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation/ (depreciation)
Barclays Bank PLC	USD	23,307,104	MXN	319,890,000	03/07/12	$	(503,059	)
Credit Suisse First Boston	AUD	21,000,000	USD	20,727,000	03/07/12		(597,575	)
Credit Suisse First Boston	CAD	7,255,000	USD	7,012,033	03/07/12		(99,231	)
Credit Suisse First Boston	GBP	17,000,000	USD	26,422,080	03/07/12		37,053
Credit Suisse First Boston	NZD	31,325,000	USD	23,632,833	03/07/12		(646,559	)
Goldman Sachs International	AUD	5,565,318	EUR	4,205,000	03/07/12		(206,129	)
JPMorgan Chase Bank	CNY	14,300,000	USD	2,239,273	03/07/12		(30,310	)
JPMorgan Chase Bank	HUF	1,301,950,000	USD	5,518,042	03/07/12		206,376
JPMorgan Chase Bank	JPY	111,900,000	USD	1,437,136	03/07/12		(18,277	)
JPMorgan Chase Bank	USD	5,940,000	CNY	37,867,500	04/19/12		67,256
JPMorgan Chase Bank	USD	6,191,510	KRW	7,132,000,000	03/07/12		(27,265	)
JPMorgan Chase Bank	USD	6,690,357	MYR	21,369,000	03/07/12		26,128
JPMorgan Chase Bank	USD	2,869,586	NOK	16,790,000	03/07/12		(68,796	)
JPMorgan Chase Bank	USD	5,439,331	PLN	18,635,000	03/07/12		(71,777	)
JPMorgan Chase Bank	USD	2,846,734	SEK	19,650,000	03/07/12		(237	)
State Street Bank & Trust	EUR	59,390,000	USD	79,190,626	03/07/12		2,284,379
Net unrealized appreciation on forward foreign currency contracts						$	351,977

Futures contracts

	Expiration date	Cost/ (proceeds)			Value			Unrealized appreciation/ (depreciation)
US Treasury futures buy contracts:
US Long Bond, 60 contracts (USD)	March 2012	$	8,591,813		$	8,688,750		$	96,937
5 Year US Treasury Notes, 162 contracts (USD)	March 2012		19,874,367			19,967,765			93,398
US Treasury futures sell contracts:
10 Year US Treasury Notes, 290 contracts (USD)	March 2012		(37,665,429	)		(38,026,250	)		(360,821	)
Index futures buy contracts:
Dow Jones EURO STOXX 50 Index, 1,418 contracts (EUR)	March 2012		41,557,262			42,357,489			800,227
NIKKEI 225 Index, 255 contracts (JPY)	March 2012		27,613,824			27,994,673			380,849
Index futures sell contracts:
MSCI Taiwan Index, 1,139 contracts (USD)	January 2012		(28,512,542	)		(28,873,650	)		(361,108	)
Russell 2000 Mini Index, 566 contracts (USD)	March 2012		(42,034,845	)		(41,816,080	)		218,765
Interest rate futures buy contracts:
Euro-Bund, 14 contracts (EUR)	March 2012		2,478,143			2,519,335			41,192
Japanese 10 Year Bond, 2 contracts (JPY)	March 2012		3,698,585			3,700,403			1,818
Interest rate futures sell contracts:
Euro-Buxl, 10 contracts (EUR)	March 2012		(1,545,791	)		(1,655,863	)		(110,072	)
Long Gilt, 24 contracts (GBP)	March 2012		(4,297,542	)		(4,358,960	)		(61,418	)
Net unrealized appreciation on futures contracts								$	739,767

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

Interest rate swap agreements

Counterparty	Notional amount		Termination date	Payments made by the Fund¹			Payments received by the Fund¹			Upfront payments made		Value			Unrealized appreciation/ (depreciation)
Deutsche Bank AG	EUR	32,600,000	11/01/21		2.698	%		1.793	%²	$	—	$	(1,197,499	)	$	(1,197,499	)
Goldman Sachs International	EUR	31,200,000	06/21/21		1.668²			3.325			—		4,046,638			4,046,638
										$	—	$	2,849,139		$	2,849,139

¹ Payments made or received are based on the notional amount.

² Rate based on 6 month EURIBOR.

Credit default swaps on credit indices—buy protection¹

Counterparty	Notional amount		Termination date	Payments made by the Fund²			Payments received by the Fund		Upfront payments (made)/ received			Value			Unrealized appreciation/ (depreciation)
Barclays Bank PLC	EUR	4,675,000	12/20/16		5.000	%		—³	$	(106,704	)	$	13,907		$	(92,797	)
Deutsche Bank AG	EUR	4,675,000	12/20/16		5.000			—³		(94,037	)		13,907			(80,130	)
JPMorgan Chase Bank	USD	29,400,000	12/20/16		5.000			—⁴		3,163,080			(2,566,899	)		596,181
Morgan Stanley & Co., Inc.	EUR	3,780,000	12/20/16		1.000			—⁵		(439,546	)		370,452			(69,094	)
									$	2,522,793		$	(2,168,633	)	$	354,160

¹ If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

² Payments made are based on the notional amount.

⁵ 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 iTraxx Europe Senior Financials Series 16 Index.

Credit default swaps on corporate issues—buy protection¹

Counterparty	Notional amount		Termination date	Payments made by the Fund²			Payments received by the Fund		Upfront payments made			Value		Unrealized appreciation/ (depreciation)
Barclays Bank PLC	EUR	465,000	03/20/17		1.000	%		—³	$	(44,512	)	$	43,655	$	(857	)
JPMorgan Chase Bank	EUR	800,000	12/20/16		3.000			—⁴		(37,690	)		22,875		(14,815	)
JPMorgan Chase Bank	EUR	1,850,000	03/20/17		1.000			—⁵		(115,421	)		131,492		16,071
									$	(197,623	)	$	198,022	$	399

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

² Payments made are based on the notional amount.

³ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Marks & Spencer PLC 5.625% bond, due 03/24/14.

⁴ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Santander International Debt SAU 0.000% bond, due 08/09/13.

⁵ Payment from the counterparty will be received upon the occurrence of bankruptcy and/or restructuring event with respect to the Metro AG 7.625% bond, due 03/05/15.

Credit default swaps on credit indices—sell protection¹

Counterparty	Notional amount		Termination date	Payments made by the Fund		Payments received by the Fund²			Upfront payments (made)/ received			Value			Unrealized appreciation/ (depreciation)			Credit spread³
Barclays Bank PLC	EUR	5,180,000	12/20/16		—⁴		1.000	%	$	601,678		$	(507,656	)	$	94,022			2.752	%
Deutsche Bank AG	EUR	5,180,000	12/20/16		—⁴		1.000			583,983			(507,656	)		76,327			2.752
Goldman Sachs International	USD	43,600,000	06/20/16		—⁵		1.000			(107,789	)		(312,394	)		(420,183	)		1.176
Goldman Sachs International	USD	32,300,000	06/20/16		—⁶		5.000			(856,847	)		(1,391,937	)		(2,248,784	)		6.243
												$	221,025		$	(2,719,643	)	$	(2,498,618	)

¹ If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

² Payments received are based on the notional amount.

⁵ Payment to 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 CDX.NA.IG Series 16 Index.

⁶ Payment to 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 CDX.NA.HY Series 16 Index.

Options written

Call option				Expiration date				Premiums received				Value
S&P 500 Index, 567 contracts, strike @ USD 1,250.00				June 2012				$	5,226,039			$	(4,479,300	)

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

Written option activity for the period ended December 31, 2011 was as follows:

	Number of contracts			Premiums received
Options outstanding at June 30, 2011		5,807		$	2,186,107
Options written		3,353			8,002,494
Options terminated in closing purchase transactions		(8,593	)		(4,962,562	)
Options expired prior to exercise		—			—
Options outstanding at December 31, 2011		567		$	5,226,039

Swaption & Foreign exchange option activity for the period ended December 31, 2011 was as follows:

Swaptions & Foreign exchange options outstanding at June 30, 2011	$	968,439
Swaptions & Foreign exchange options written		32,799
Swaptions & Foreign exchange options terminated in closing purchase transactions		(933,023	)
Swaptions & Foreign exchange options expired prior to exercise		(68,215	)
Swaptions & Foreign exchange options outstanding at December 31, 2011	$	—

The following is a summary of the inputs used as of December 31, 2011 in valuing the Fund's investments:

Description	Unadjusted quoted prices in active markets for identical investments (Level 1)			Other significant observable inputs (Level 2)			Unobservable inputs (Level 3)		Total
Common stock	$	6,672		$	—		$	—	$	6,672
Common stocks sold short		(6,835	)		—			—		(6,835	)
Corporate bonds		—			225,774,457			—		225,774,457
Collateralized debt obligation		—			—			0		0
Mortgage & agency debt securities		—			36,103			—		36,103
US government obligation		—			351,066			—		351,066
Non-US government obligations		—			8,627,277			—		8,627,277
Short-term investment		—			17,594,250			—		17,594,250
Investment of cash collateral from securities loaned		—			1,487,143			—		1,487,143
Forward foreign currency contracts		—			351,977			—		351,977
Futures contracts		739,767			—			—		739,767
Options written		(4,479,300	)		—			—		(4,479,300	)
Swap agreements		—			(1,841,115	)		—		(1,841,115	)
Total	$	(3,739,696	)	$	252,381,158		$	0	$	248,641,462

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2011 (unaudited)

Concluded

Level 3 Rollforward Disclosure

The following is a rollforward of the Fund's investments that were valued using unobservable inputs for the period:

	Common stocks sold short			Asset-backed securities			Collateralized debt obligations			Total
Assets
Beginning balance	$	(3,975	)	$	806,900		$	3,229,737		$	4,032,662
Purchases		246			—			—			246
Issuances		—			—			—			—
Sales		—			(795,000	)		(3,056,398	)		(3,851,398	)
Settlements		—			—			—			—
Accrued discounts (premiums)		—			2,418			(1,903	)		515
Total realized gain (loss)		19,369			62,831			(8,583,792	)		(8,501,592	)
Change in net unrealized appreciation/depreciation		(15,640	)		(77,149	)		8,412,356			8,319,567
Transfers into Level 3		—			—			—			—
Transfers out of Level 3		—			—			—			—
Ending balance	$	—		$	—		$	0		$	0

The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at December 31, 2011 was $1,590.

See accompanying notes to financial statements.
20

UBS Global Allocation Fund

Portfolio performance

For the six months ended December 31, 2011, Class A shares of UBS Global Allocation Fund (the "Fund") declined 10.30% (Class A shares declined 15.26% after the deduction of the maximum sales charge), while Class Y shares declined 10.11%. The Fund's benchmark, the GSMI Mutual Fund Index (the "Index"), declined 6.22% over the same time period. For comparison purposes, the Russell 3000 Index declined 5.01%, the MSCI World Free Index (net) declined 10.29%, and the Citigroup World Government Bond Index returned 2.26% over the same 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 23; 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 the Index returns do not reflect the deduction of fees and expenses.)

The Fund's negative performance was due primarily to security selection and market allocation decisions.

Portfolio performance summary¹

What worked

• Currency strategies, overall, were positive for performance.

– The Fund's overweight to the Swiss franc was beneficial. The currency appreciated as its economic fundamentals were relatively solid during the reporting period.

– An overweight to the US dollar contributed to results. It generally performed well during periods of extreme risk aversion, given its "safe haven" status.

– A short to the euro benefited performance, especially during the fourth quarter when the European sovereign debt crisis escalated and the euro depreciated.

• The Fund's corporate credit overweight enhanced results during the reporting period.

– An overweight to investment-grade corporate bonds was beneficial as they generated strong results given generally strong investor demand from investors looking to generate incremental yield in the low interest rate environment.

– An overweight to high yield bonds was also rewarded, as they outperformed the Index during the reporting period.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 2.

UBS Global Allocation Fund

What didn't work

• Security selection was the major driver of the Fund's poor performance during the reporting period. Notably, holdings in the international all-cap growth component of the portfolio and security selection in the large-cap core/value international equity space detracted from results.

• The Fund's positioning among risk assets detracted from results.

– When the reporting period began, the Fund had a 68% equity market exposure, versus the Index weight of 65%. However, given a host of macro issues, including the European sovereign debt crisis and slowing global growth, we took a more conservative approach for the portfolio and reduced our equity exposure in early August and September. While this generated positive results as the equity markets sold off mid-period, it later detracted from performance when equities rallied in the last three months of the reporting period. At the end of the period, 44% of the portfolio was allocated to equities.

– Within equities, a preference for international stocks was not rewarded, as they significantly lagged their US counterparts.

• Duration positioning was a negative for results. At the beginning of the period, the Fund's fixed income duration component was shorter than the Index, as we felt US yields would move higher as the US economic expansion continued. With economic growth in the US hitting a soft patch, however, we then moved to a neutral duration in August. Overall, duration positioning detracted from results as US Treasury yields moved lower during the reporting period.

• Currency positioning was negative for the period. In particular, the Fund's overweight to the Mexican peso was not rewarded, as it performed poorly.

UBS Global Allocation Fund

Average annual total returns for periods ended 12/31/11 (unaudited)

	6 months			1 year			5 years			10 years
Before deducting maximum sales charge
Class A¹		(10.30	)%		(7.70	)%		(1.33	)%		4.76	%
Class B²		(10.68	)		(8.36	)		(2.15	)		4.24⁵
Class C³		(10.67	)		(8.29	)		(2.09	)		3.94
Class Y⁴		(10.11	)		(7.37	)		(1.05	)		5.02
After deducting maximum sales charge
Class A¹		(15.26	)%		(12.77	)%		(2.44	)%		4.17	%
Class B²		(15.07	)		(12.86	)		(2.43	)		4.24⁵
Class C³		(11.53	)		(9.17	)		(2.09	)		3.94
Russell 3000 Index⁶		(5.01	)%		1.03	%		(0.01	)%		3.52	%
MSCI World Free Index (net)⁷		(10.29	)		(5.54	)		(2.37	)		3.62
Citigroup World Government Bond Index⁸		2.26			6.35			7.13			7.77
GSMI Mutual Fund Index⁹		(6.22	)		(2.14	)		1.56			5.62

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2011 prospectuses were as follows: Class A—1.27% and 1.27%; Class B—2.13% and 2.13%; Class C—2.05% and 2.05%; Class Y—0.98% and 0.98%. 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 UBS Global Asset Management (Americas) Inc., the Fund's investment advisor ("UBS Global AM (Americas)" or 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 expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) to the extent necessary so that the Fund's ordinary operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses), through the period ending October 27, 2012, do not exceed 1.35% for Class A shares, 2.10% for Class B shares, 2.10% for Class C shares and 1.10% for Class Y shares. 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.

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

²Maximum 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. On or about March 1, 2012, the Class B shares of the Fund will be converted into Class A shares of the same Fund and Class B shares will be terminated effective immediately after such conversion.

⁵ Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁶ The Russell 3000 Index is designed to measure the performance of the largest 3,000 US companies representing approximately 98% of the investable US equity market. The Russell 3000 Index is constructed to provide a comprehensive, unbiased, and stable barometer of the broad market and is completely reconstituted annually to ensure new and growing equities are reflected. Investors should note that indices do not reflect the deduction of fees and expenses.

⁷ The MSCI World Free Index (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of May 2011, the index consisted of 24 developed market country indices. Dividends are reinvested after deduction of withholding tax, using tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates. Had US tax rates been applied, the performance of the index would be different. The index is constructed and managed with a view to being fully investable from the perspective of international institutional investors. Investors should note that indices do not reflect the deduction of fees and expenses.

⁸ The Citigroup World Government Bond Index is an unmanaged broad-based, market capitalization-weighted index composed of straight (i.e., not floating rate or index-linked) government bonds with a one-year minimum maturity. The index is designed to track the government bond markets of 23 developed countries. Investors should note that indices do not reflect the deduction of fees and expenses.

⁹ The GSMI Mutual Fund Index is an unmanaged index compiled by the Advisor, constructed as follows: 65% MSCI All Country World Index (net), 15% Citigroup World Government Bond ex US Index, 15% Citigroup US Government Bond Index, 2% J.P. Morgan Emerging Markets Bond Index Global (EMBI Global) and 3% BofA 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% BofA Merrill Lynch US High Yield Cash Pay Constrained Index replaced the 3% BofA Merrill Lynch US High Yield Cash Pay Index. On April 30, 2009, the 65% MSCI All Country World Index (net) replaced the 40% Russell 3000 Index, 22% MSCI World ex USA Index and 3% MSCI Emerging Markets Index (net); the 15% Citigroup World Government Bond ex US Index and 15% Citigroup US Government Bond Index replaced the 9% Citigroup World Government Bond ex US Index and the 21% Citigroup US Broad Investment Grade Index. Investors should note that indices do not reflect the deduction of fees and expenses.

UBS Global Allocation Fund

Top ten equity holdings (unaudited)¹

As of December 31, 2011

	Percentage of net assets
Apple, Inc.		1.4	%
Visa, Inc., Class A		0.7
BP PLC		0.6
Amazon.com, Inc.		0.6
Novartis AG		0.6
Nestle SA		0.5
Google, Inc., Class A		0.5
Imperial Tobacco Group PLC		0.5
Vodafone Group PLC		0.5
Telenor ASA		0.4
Total		6.3	%

Country exposure by issuer, top five (unaudited)²

As of December 31, 2011

	Percentage of net assets
United States		29.5	%
Germany		6.7
United Kingdom		5.6
Japan		2.7
Spain		1.9
Total		46.4	%

Top ten long-term fixed income holdings (unaudited)¹

As of December 31, 2011

	Percentage of net assets
US Treasury Notes, 0.250%, due 10/31/13		1.6	%
Kingdom of Spain, 4.200%, due 01/31/37		1.5
Buoni Poliennali Del Tesoro, 4.000%, due 02/01/37		1.4
Bundesobligation, 4.000%, due 10/11/13		1.4
UK Gilts, 3.750%, due 09/07/21		1.0
US Treasury Notes, 0.250%, due 11/30/13		1.0
US Treasury Notes, 3.125%, due 04/30/17		0.9
Bundesrepublik Deutschland, 3.250%, due 07/04/21		0.8
Bundesschatzanweisungen, 0.500%, due 06/15/12		0.7
US Treasury Bonds, 3.750%, due 08/15/41		0.6
Total		10.9	%

¹Figures represent the direct investments of UBS Global Allocation Fund. Figures would be different if a breakdown of the underlying investment companies was included.

² Figures represent the direct investments of UBS Global Allocation Fund. If a breakdown of the underlying investment companies was included, the country exposure percentages would be as follows: United States 46.9%, United Kingdom 8.7%, Germany 7.2%, Japan 4.1%, China 2.3%.

UBS Global Allocation Fund

Industry diversification (unaudited)¹

As a percentage of net assets as of December 31, 2011

Common stocks
Aerospace & defense	0.71	%
Air freight & logistics	0.48
Airlines	0.14
Auto components	0.03
Automobiles	0.45
Beverages	0.63
Biotechnology	0.41
Building products	0.22
Capital markets	0.47
Chemicals	1.49
Commercial banks	2.60
Communications equipment	0.83
Computers & peripherals	2.02
Construction & engineering	0.27
Construction materials	0.30
Distributors	0.01
Diversified consumer services	0.15
Diversified financial services	1.02
Diversified telecommunication services	0.74
Electric utilities	0.93
Electrical equipment	0.17
Electronic equipment, instruments & components	0.01
Energy equipment & services	1.18
Food & staples retailing	1.14
Food products	1.19
Gas utilities	0.16
Health care equipment & supplies	0.34
Health care providers & services	1.02
Hotels, restaurants & leisure	1.14
Household durables	0.02
Household products	0.28
Independent power producers & energy traders	0.01
Industrial conglomerates	0.53
Insurance	1.34
Internet & catalog retail	1.00
Internet software & services	1.10
IT services	1.05
Leisure equipment & products	0.23
Life sciences tools & services	0.36
Machinery	0.90
Media	1.17
Metals & mining	0.97
Multiline retail	0.34
Oil, gas & consumable fuels	3.24	%
Personal products	0.64
Pharmaceuticals	1.65
Professional services	0.23
Real estate investment trust (REIT)	0.09
Real estate management & development	0.21
Road & rail	0.31
Semiconductors & semiconductor equipment	0.88
Software	1.37
Specialty retail	0.19
Textiles, apparel & luxury goods	0.66
Tobacco	0.84
Trading companies & distributors	0.53
Transportation infrastructure	0.01
Wireless telecommunication services	1.13
Total common stocks	41.53	%
Preferred stock	0.30
Bonds
Corporate bond
Diversified financial services	0.09
Mortgage & agency debt securities	0.13
US government obligations	5.88
Non-US government obligations	10.70
Total bonds	16.80	%
Investment companies
UBS Credit Bond Relationship Fund	10.17
UBS Emerging Markets Equity Relationship Fund	3.36
UBS Global (ex-U.S.) All Cap Growth Relationship Fund	7.96
UBS Global Corporate Bond Relationship Fund	6.54
UBS High Yield Relationship Fund	5.14
UBS Small-Cap Equity Relationship Fund	2.13
Total investment companies	35.30	%
Warrants	0.02
Short-term investment	5.05
Investment of cash collateral from securities loaned	1.49
Total investments	100.49	%
Liabilities, in excess of cash and other assets	(0.49	)
Net assets	100.00	%

¹ Figures represent the industry breakdown of direct investments of UBS Global Allocation Fund. Figures would be different if a breakdown of the underlying investment companies' industry diversification was included.

UBS Global Allocation Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks: 41.53%
Argentina: 0.15%
MercadoLibre, Inc.		18,800	$	1,495,352
Australia: 0.55%
National Australia Bank Ltd.		110,003		2,628,258
Orica Ltd.		108,448		2,688,716
Total Australia common stocks				5,316,974
Belgium: 0.29%
Anheuser-Busch InBev NV		46,409		2,841,368
Brazil: 0.15%
AES Tiete SA, Preference shares		9,800		141,227
Banco Bradesco SA ADR		2,264		37,764
CCR SA NPV		12,000		78,617
Cia de Bebidas das Americas ADR		10,400		375,336
Cia Hering		4,000		69,610
Cosan Ltd., Class A		8,300		90,968
Odontoprev SA		5,000		71,304
Petroleo Brasileiro SA ADR		14,400		357,840
QGEP Participacoes SA		7,000		61,922
Redecard SA		4,200		65,727
Vale SA ADR		4,000		85,800
Total Brazil common stocks				1,436,115
Canada: 1.34%
Canadian Oil Sands Ltd.		89,700		2,047,141
Petrobank Energy & Resources Ltd.*		140,400		1,458,093
Petrominerales Ltd.¹		88,658		1,441,155
Royal Bank of Canada		67,100		3,423,664
Suncor Energy, Inc.¹		85,500		2,465,757
Teck Resources Ltd., Class B		60,100		2,118,470
Total Canada common stocks				12,954,280
Chile: 0.02%
ENTEL Chile SA		11,005		204,424
China: 1.28%
Agile Property Holdings Ltd.¹		166,000		148,760
AIA Group Ltd.		728,317		2,274,056
Baidu, Inc. ADR*		24,100		2,806,927
BBMG Corp., H Shares		170,000		112,945
Brilliance China Automotive Holdings Ltd.*		128,000		138,109
China Liansu Group Holdings Ltd.		375,000		162,716
China Lumena New Materials Corp.¹		664,000		123,112
Chongqing Machinery & Electric Co., Ltd., H Shares		90,000		14,833
CNOOC Ltd.		69,000		120,647
Dongfeng Motor Group Co., Ltd., H Shares		82,000		140,633

	Shares		Value
Haier Electronics Group Co., Ltd.*		104,000	$	93,065
Industrial & Commercial Bank of China, H Shares		246,000		146,017
International Mining Machinery Holdings Ltd.		112,000		123,297
Jardine Matheson Holdings Ltd.		50,800		2,390,140
Melco Crown Entertainment Ltd. ADR*¹		35,400		340,548
MIE Holdings Corp.		223,567		56,708
New World Development Co., Ltd.		1,848,000		1,489,517
PetroChina Co., Ltd., H Shares		116,000		144,429
Sina Corp.*		19,600		1,019,200
Skyworth Digital Holdings Ltd.¹		260,000		91,057
Tencent Holdings Ltd.		11,900		239,177
Xingda International Holdings Ltd.		346,000		155,924
Xinyi Glass Holdings Ltd.		90,000		51,683
Total China common stocks				12,383,500
Cyprus: 0.01%
Globaltrans Investment PLC GDR²		4,331		59,551
Denmark: 0.27%
FLSmidth & Co. A/S		45,345		2,664,659
Finland: 0.29%
Sampo Oyj, Class A		112,413		2,789,053
France: 0.53%
BNP Paribas SA		43,052		1,691,103
Carrefour SA		152,861		3,484,958
Total France common stocks				5,176,061
Germany: 1.79%
Beiersdorf AG		40,376		2,289,886
E.ON AG		103,882		2,241,269
Fresenius Medical Care AG & Co. KGaA		48,553		3,299,085
HeidelbergCement AG		40,573		1,721,856
Infineon Technologies AG		260,243		1,958,942
MAN SE		20,342		1,808,708
Metro AG		43,018		1,570,065
SAP AG		46,889		2,479,027
Total Germany common stocks				17,368,838
India: 0.02%
ICICI Bank Ltd. ADR¹		3,500		92,505
Tata Motors Ltd. ADR¹		7,400		125,060
Total India common stocks				217,565
Indonesia: 0.08%
Alam Sutera Realty Tbk PT		3,569,500		181,083
Astra International Tbk PT		21,000		171,382

UBS Global Allocation Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks—(Continued)
Indonesia—(Concluded)
Bank Bukopin Tbk PT		1,017,000	$	65,052
Bank Rakyat Indonesia Persero Tbk PT		264,000		196,526
Harum Energy Tbk PT		147,500		111,428
Total Indonesia common stocks				725,471
Ireland: 0.14%
Ryanair Holdings PLC ADR*		50,000		1,393,000
Israel: 0.11%
Teva Pharmaceutical Industries Ltd. ADR		25,200		1,017,072
Italy: 0.29%
Fiat Industrial SpA*		332,281		2,849,112
Japan: 2.72%
Asahi Glass Co., Ltd.¹		227,000		1,905,184
ITOCHU Corp.		327,400		3,326,319
KDDI Corp.		272		1,749,253
Mitsubishi Corp.		89,400		1,806,119
Mitsubishi UFJ Financial Group, Inc.		873,900		3,712,684
Nissan Motor Co., Ltd.		197,800		1,778,324
ORIX Corp.		17,970		1,484,854
Sankyo Co., Ltd.		42,900		2,170,917
Shin-Etsu Chemical Co., Ltd.		49,200		2,422,606
THK Co., Ltd.		87,200		1,718,623
Tokio Marine Holdings, Inc.		122,200		2,706,912
Tokyo Gas Co., Ltd.		339,000		1,559,127
Total Japan common stocks				26,340,922
Luxembourg: 0.16%
ArcelorMittal		85,718		1,567,590
Malaysia: 0.05%
Axiata Group Bhd		159,100		257,973
Malayan Banking Bhd		90,700		245,491
Total Malaysia common stocks				503,464
Mexico: 0.06%
America Movil SAB de CV ADR		5,500		124,300
Fomento Economico Mexicano SAB de CV ADR		4,500		313,695
Wal-Mart de Mexico SAB de CV		64,000		175,333
Total Mexico common stocks				613,328
Netherlands: 0.86%
ASML Holding NV		67,704		2,845,651
Heineken NV		56,833		2,631,102
Wolters Kluwer NV		164,465		2,842,730
Total Netherlands common stocks				8,319,483

	Shares		Value
Norway: 0.70%
Statoil ASA		101,215	$	2,597,708
Telenor ASA		253,444		4,157,077
Total Norway common stocks				6,754,785
Philippines: 0.06%
Alliance Global Group, Inc.		1,006,000		238,807
Megaworld Corp.		3,517,000		136,861
Metropolitan Bank & Trust		134,362		209,220
Total Philippines common stocks				584,888
Russia: 0.02%
Gazprom OAO ADR		6,006		64,024
Lukoil OAO ADR		2,275		121,030
Total Russia common stocks				185,054
Singapore: 0.17%
DBS Group Holdings Ltd.		186,089		1,652,785
South Africa: 0.12%
Imperial Holdings Ltd.		4,837		74,000
Life Healthcare Group Holdings Ltd.		44,986		115,021
Mr. Price Group Ltd.		16,542		163,524
MTN Group Ltd.		15,609		277,915
Sasol Ltd.		4,176		199,422
Shoprite Holdings Ltd.		17,850		301,165
Total South Africa common stocks				1,131,047
South Korea: 0.18%
Amorepacific Corp.		147		134,311
Cheil Industries, Inc.		1,815		160,031
Hyundai Department Store Co., Ltd.*		969		137,645
Hyundai Mobis*		521		132,749
Hyundai Motor Co.		2,624		487,666
KB Financial Group, Inc.*		3,965		125,854
KIWOOM Securities Co., Ltd.		3,786		180,562
LG Chem Ltd.		434		120,521
Samsung Electronics Co., Ltd.		282		259,527
Total South Korea common stocks				1,738,866
Spain: 0.40%
Acciona SA		19,411		1,676,437
Banco Santander SA		290,119		2,204,106
Total Spain common stocks				3,880,543
Switzerland: 1.62%
ACE Ltd.		11,200		785,344
Credit Suisse Group AG*		66,986		1,573,918
Nestle SA		90,062		5,177,630
Novartis AG		103,016		5,889,449
SGS SA		1,354		2,241,531
Total Switzerland common stocks				15,667,872

UBS Global Allocation Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks—(Continued)
Taiwan: 0.11%
Catcher Technology Co., Ltd.		17,000	$	78,883
Chinatrust Financial Holding Co., Ltd.		144,804		90,386
Chunghwa Telecom Co., Ltd.		74,000		244,394
Largan Precision Co., Ltd.		7,000		130,850
Taishin Financial Holding Co., Ltd.		278,900		96,716
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		5,100		65,841
Uni-President Enterprises Corp.		255,176		372,916
Total Taiwan common stocks				1,079,986
Thailand: 0.10%
Bangkok Bank PCL		56,900		293,575
CP ALL PCL		81,800		134,173
Italian-Thai Development PCL		292,800		33,595
LPN Development PCL NVDR		83,000		33,674
Sri Trang Agro-Industry PCL		220,300		122,893
Thanachart Capital PCL		153,800		130,401
Tisco Financial Group PCL		171,900		207,043
Total Thailand common stocks				955,354
Turkey: 0.00%³
Turkiye Halk Bankasi AS		8,698		45,471
United Kingdom: 3.37%
Barclays PLC		1,060,460		2,899,358
BP PLC		869,716		6,219,830
Ensco PLC ADR		29,300		1,374,756
Imperial Tobacco Group PLC		123,925		4,686,292
Lloyds Banking Group PLC*		3,652,930		1,469,591
Prudential PLC		219,499		2,176,531
Rio Tinto PLC		41,915		2,034,187
Sage Group PLC		586,675		2,680,475
SSE PLC		99,331		1,991,510
Vodafone Group PLC		1,626,040		4,517,654
Xstrata PLC		173,354		2,632,959
Total United Kingdom common stocks				32,683,143
United States: 23.52%
Acorda Therapeutics, Inc.*		37,400		891,616
Adobe Systems, Inc.*		89,900		2,541,473
Aflac, Inc.		28,700		1,241,562
Agilent Technologies, Inc.*		77,800		2,717,554
Alcoa, Inc.		94,500		817,425
Alexion Pharmaceuticals, Inc.*		16,600		1,186,900
Allergan, Inc.		45,400		3,983,396
Amazon.com, Inc.*		35,100		6,075,810
Amylin Pharmaceuticals, Inc.*		59,300		674,834
Annaly Capital Management, Inc.		51,500		821,940
Apollo Group, Inc., Class A*		26,700		1,438,329

	Shares		Value
Apple, Inc.*		33,300	$	13,486,500
AT&T, Inc.		91,800		2,776,032
Atmel Corp.*		64,300		520,830
Baker Hughes, Inc.		50,600		2,461,184
Baxter International, Inc.		16,300		806,524
Bio-Rad Laboratories, Inc., Class A*		7,600		729,904
Boeing Co.		30,400		2,229,840
Broadcom Corp., Class A*		32,400		951,264
Bunge Ltd.		15,000		858,000
C.H. Robinson Worldwide, Inc.		32,500		2,267,850
Cabot Oil & Gas Corp.		10,900		827,310
Carnival Corp.		38,200		1,246,848
Celanese Corp., Series A		26,300		1,164,301
Chipotle Mexican Grill, Inc.*		4,500		1,519,830
Cisco Systems, Inc.		113,300		2,048,464
Citigroup, Inc.		105,020		2,763,076
CME Group, Inc.		13,600		3,313,912
Coach, Inc.		27,200		1,660,288
Colgate-Palmolive Co.		29,600		2,734,744
Comcast Corp., Class A		116,100		2,752,731
Concho Resources, Inc.*		28,300		2,653,125
CONSOL Energy, Inc.		31,900		1,170,730
Crown Castle International Corp.*		84,900		3,803,520
CVS Caremark Corp.		91,900		3,747,682
Danaher Corp.		51,700		2,431,968
Discovery Communications, Inc., Class A*		40,600		1,663,382
Dollar General Corp.*		35,200		1,448,128
Dow Chemical Co.		63,700		1,832,012
Ecolab, Inc.		22,000		1,271,820
Edison International		41,900		1,734,660
Edwards Lifesciences Corp.*		22,500		1,590,750
EMC Corp.*		120,400		2,593,416
EOG Resources, Inc.		34,100		3,359,191
EQT Corp.		34,400		1,884,776
Estee Lauder Cos., Inc., Class A		33,800		3,796,416
Express Scripts, Inc.*		81,500		3,642,235
FedEx Corp.		29,100		2,430,141
Fidelity National Information Services, Inc.		41,600		1,106,144
FMC Corp.		15,400		1,325,016
FMC Technologies, Inc.*		49,000		2,559,270
GameStop Corp., Class A*		65,600		1,582,928
General Dynamics Corp.		37,200		2,470,452
General Motors Co.*		82,200		1,666,194
Gilead Sciences, Inc.*		29,900		1,223,807
Google, Inc., Class A*		7,900		5,102,610
HCA Holdings, Inc.*		40,900		901,027
Hertz Global Holdings, Inc.*		122,200		1,432,184
Hess Corp.		35,800		2,033,440
Hewlett-Packard Co.		61,700		1,589,392
Hospira, Inc.*		30,900		938,433
Illinois Tool Works, Inc.		48,700		2,274,777

UBS Global Allocation Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks—(Concluded)
United States—(Concluded)
International Game Technology		45,200	$	777,440
Intersil Corp., Class A		82,700		863,388
Invesco Ltd.		49,300		990,437
JPMorgan Chase & Co.		70,500		2,344,125
Kellogg Co.		45,200		2,285,764
Kohl's Corp.		33,400		1,648,290
Kraft Foods, Inc., Class A		70,600		2,637,616
Kroger Co.		64,500		1,562,190
Las Vegas Sands Corp.*		84,500		3,610,685
Lenovo Group Ltd.		48,000		32,014
Martin Marietta Materials, Inc.¹		13,700		1,033,117
McDermott International, Inc.*		185,000		2,129,350
McDonald's Corp.		35,100		3,521,583
Medtronic, Inc.		26,200		1,002,150
Merck & Co., Inc.		50,900		1,918,930
MetLife, Inc.		33,500		1,044,530
Monsanto Co.		13,000		910,910
Morgan Stanley		123,000		1,860,990
NetApp, Inc.*		51,600		1,871,532
NextEra Energy, Inc.		22,100		1,345,448
NIKE, Inc., Class B		23,100		2,226,147
Noble Corp.*		41,900		1,266,218
Oracle Corp.		46,100		1,182,465
Peabody Energy Corp.		29,500		976,745
Philip Morris International, Inc.		44,400		3,484,512
Priceline.com, Inc.*		7,600		3,554,596
QUALCOMM, Inc.		67,200		3,675,840
Ralph Lauren Corp.		18,400		2,540,672
Riverbed Technology, Inc.*		98,000		2,303,000
Roper Industries, Inc.		18,900		1,641,843
Salesforce.com, Inc.*		23,400		2,374,164
Schlumberger Ltd.		25,600		1,748,736
ServiceSource International, Inc.*¹		80,500		1,263,045
Sherwin-Williams Co.		26,600		2,374,582
Skyworks Solutions, Inc.*		58,900		955,358
Symantec Corp.*		131,900		2,064,235
Teradata Corp.*		17,100		829,521
Textron, Inc.		115,000		2,126,350
Time Warner, Inc.		81,000		2,927,340
Ultra Petroleum Corp.*		35,400		1,048,902
Union Pacific Corp.		13,600		1,440,784
UnitedHealth Group, Inc.		35,900		1,819,412
US Bancorp		50,000		1,352,500
Viacom, Inc., Class B		28,100		1,276,021
Visa, Inc., Class A		68,000		6,904,040
Watson Pharmaceuticals, Inc.*		35,600		2,148,104
Wells Fargo & Co.		85,200		2,348,112
Total United States common stocks				228,013,630
Total common stocks (cost $407,907,250)				402,610,606

	Shares		Value
Preferred stock: 0.30%
Germany: 0.30%
Volkswagen AG, Preference shares (cost $2,686,918)		19,428	$	2,910,497
	Face amount
Bonds: 16.80%
Corporate bond: 0.09%
Austria: 0.09%
Oesterreichische Kontrollbank AG, 3.500%, due 04/28/14 (cost $859,913)	EUR	635,000		853,490
Mortgage & agency debt securities: 0.13%
United States: 0.13%
Federal Home Loan Mortgage Corp. Gold Pools, #G00194, 7.500%, due 02/01/24⁴	$	54,453		63,479
Government National Mortgage Association, Series 2001-35, Class AZ, 6.500%, due 08/20/31		1,125,725		1,194,349
Total mortgage & agency debt securities (cost $1,232,797)				1,257,828
US government obligations: 5.88%
US Treasury Bonds, 3.750%, due 08/15/41¹		5,195,000		6,109,808
4.375%, due 05/15/41		1,265,000		1,648,256
5.375%, due 02/15/31¹		2,000,000		2,850,624
6.250%, due 08/15/23		1,500,000		2,146,875
8.000%, due 11/15/21		1,960,000		3,063,419
US Treasury Notes, 0.250%, due 10/31/13		15,375,000		15,377,399
0.250%, due 11/30/13¹		10,060,000		10,061,177
0.875%, due 11/30/16¹		745,000		747,270
1.000%, due 10/31/16¹		745,000		752,218
2.000%, due 11/15/21¹		855,000		864,752
2.500%, due 04/30/15		4,225,000		4,508,869
3.125%, due 04/30/17		8,000,000		8,910,000
Total US government obligations (cost $54,813,295)				57,040,667
Non-US government obligations: 10.70%
Austria: 0.15%
Government of Austria, 4.150%, due 03/15/37⁵	EUR	1,020,000		1,488,452

UBS Global Allocation Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Concluded)
Non-US government obligations—(Concluded)
Finland: 0.45%
Government of Finland, 4.375%, due 07/04/19	EUR	2,892,000	$	4,299,551
Germany: 4.59%
Bundesobligation, 2.250%, due 04/11/14		3,910,000		5,306,205
2.250%, due 04/10/15		830,000		1,137,070
4.000%, due 10/11/13		9,895,000		13,681,295
Bundesrepublik Deutschland, 3.250%, due 07/04/21		5,310,000		7,764,514
4.000%, due 07/04/16		1,595,000		2,365,680
4.000%, due 01/04/37		3,230,000		5,372,894
Bundesschatzanweisungen, 0.500%, due 06/15/12		5,230,000		6,784,496
Kreditanstalt fuer Wiederaufbau, 3.875%, due 07/04/13		970,000		1,311,369
Landwirtschaftliche Rentenbank, 3.250%, due 03/12/14		600,000		811,808
				44,535,331
Italy: 1.42%
Buoni Poliennali Del Tesoro, 4.000%, due 02/01/37		15,210,000		13,750,351
Netherlands: 0.45%
Government of the Netherlands, 3.250%, due 07/15/21		3,090,000		4,351,445
Spain: 1.45%
Kingdom of Spain, 4.200%, due 01/31/37		13,910,000		14,083,256
United Kingdom: 2.19%
UK Gilts, 3.750%, due 09/07/21	GBP	5,640,000		10,130,304
4.000%, due 09/07/16		3,115,000		5,531,790
4.250%, due 12/07/49		1,405,000		2,765,902
4.750%, due 12/07/38		1,345,000		2,789,364
				21,217,360
Total Non-US government obligations (cost $107,694,955)				103,725,746
Total bonds (cost $164,600,960)				162,877,731

	Shares		Value
Investment companies: 35.30%
UBS Credit Bond Relationship Fund*⁶		6,468,762	$	98,633,743
UBS Emerging Markets Equity Relationship Fund*⁶		982,088		32,575,453
UBS Global (ex-U.S.) All Cap Growth Relationship Fund*⁶		6,723,681		77,179,119
UBS Global Corporate Bond Relationship Fund*⁶		5,644,913		63,389,554
UBS High Yield Relationship Fund*⁶		1,834,134		49,815,800
UBS Small-Cap Equity Relationship Fund*⁶		394,633		20,663,869
Total investment companies (cost $287,064,029)				342,257,538
	Number of Warrants
Warrants: 0.02%
Russia: 0.02%
Sberbank of Russia, strike @ USD $0.00001, expires 11/05/12* (cost $361,519)		106,889		240,499
	Shares
Short-term investment: 5.05%
Investment company: 5.05%
UBS Cash Management Prime Relationship Fund⁶(cost $48,986,551)		48,986,551		48,986,551
Investment of cash collateral from securities loaned: 1.49%
UBS Private Money Market Fund LLC⁶(cost $14,458,925)		14,458,925		14,458,925
Total investments: 100.49% (cost $926,066,152)				974,342,347
Liabilities, in excess of cash and other assets: (0.49)%				(4,703,436	)
Net assets: 100.00%			$	969,638,911

UBS Global Allocation Fund

Portfolio of investments

December 31, 2011 (unaudited)

Notes to portfolio of investments

Aggregate cost for federal income tax purposes was substantially the same as for book purposes; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	91,018,539
Gross unrealized depreciation		(42,742,344	)
Net unrealized appreciation of investments	$	48,276,195

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 44.

* Non-income producing security.

¹ Security, or portion thereof, was on loan at December 31, 2011.

² Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. At December 31, 2011, the value of these securities amounted to $59,551 or 0.01% of net assets.

³ Amount represents less than 0.005%.

⁵ Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security is considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2011, the value of this security amounted to $1,488,452 or 0.15% of net assets.

⁶ The table below details the Fund's investments in funds advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Funds.

Security description	Value 06/30/11		Purchases during the six months ended 12/31/11		Sales during the six months ended 12/31/11		Net realized gain during the six months ended 12/31/11		Change in net unrealized appreciation/ (depreciation) during the six months ended 12/31/11			Value 12/31/11		Income earned from affiliate for the six months ended 12/31/11
UBS Cash Management Prime Relationship Fund	$	37,647,079	$	344,921,186	$	333,581,714	$	—	$	—		$	48,986,551	$	29,824
UBS Private Money Market Fund LLC^a		23,289,247		98,609,671		107,439,993		—		—			14,458,925		949
UBS Credit Bond Relationship Fund		51,413,192		51,000,000		7,000,000		1,886,325		1,334,226			98,633,743		—
UBS Emerging Markets Equity Relationship Fund		51,853,695		—		9,500,000		4,158,556		(13,936,798	)		32,575,453		—
UBS Global (ex-U.S.) All Cap Growth Relationship Fund		191,160,516		—		74,000,000		6,373,387		(46,354,784	)		77,179,119		—
UBS Global Corporate Bond Relationship Fund		59,740,923		13,000,000		10,000,000		1,119,636		(471,005	)		63,389,554		—
UBS High Yield Relationship Fund		52,179,801		3,500,000		5,000,000		1,801,324		(2,665,325	)		49,815,800		—
UBS Small-Cap Equity Relationship Fund		30,331,888		—		6,000,000		2,164,873		(5,832,892	)		20,663,869		—
	$	497,616,341	$	511,030,857	$	552,521,707	$	17,504,101	$	(67,926,578	)	$	405,703,014	$	30,773

^a The adviser does earn a management fee from this affiliated fund, and any income earned is net of expenses. Please see the Notes to financial statements for further information.

UBS Global Allocation Fund

Portfolio of investments

December 31, 2011 (unaudited)

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation/ (depreciation)
Barclays Bank PLC	AUD	9,455,000	EUR	7,169,233	03/05/12	$	(319,637	)
Barclays Bank PLC	EUR	48,510,000	USD	64,951,009	03/05/12		2,135,153
Barclays Bank PLC	USD	11,346,593	GBP	7,290,000	03/05/12		(31,832	)
Barclays Bank PLC	USD	81,782,311	JPY	6,342,300,000	03/05/12		704,203
Barclays Bank PLC	USD	11,197,100	SEK	77,840,000	03/05/12		79,548
Goldman Sachs International	NZD	52,855,000	USD	39,752,246	03/05/12		(1,220,422	)
JPMorgan Chase Bank	EUR	6,670,000	USD	8,933,178	03/05/12		296,159
JPMorgan Chase Bank	HKD	43,660,000	USD	5,604,142	03/05/12		(18,661	)
JPMorgan Chase Bank	USD	5,190,403	BRL	9,800,000	03/05/12		(7,520	)
JPMorgan Chase Bank	USD	10,870,000	CNY	69,296,250	04/19/12		123,077
JPMorgan Chase Bank	USD	9,876,130	EUR	7,475,000	03/05/12		(196,713	)
JPMorgan Chase Bank	USD	17,147,169	KRW	19,883,000,000	03/05/12		39,815
JPMorgan Chase Bank	USD	13,456,883	MYR	43,023,000	03/05/12		66,445
JPMorgan Chase Bank	USD	4,447,021	ZAR	37,700,000	03/05/12		178,117
Morgan Stanley & Co., Inc.	AUD	21,545,000	USD	21,196,510	03/05/12		(685,999	)
Morgan Stanley & Co., Inc.	HUF	2,326,150,000	USD	9,980,050	03/05/12		487,906
Morgan Stanley & Co., Inc.	USD	16,127,006	CAD	16,685,000	03/05/12		228,099
Morgan Stanley & Co., Inc.	USD	44,711,089	MXN	631,410,000	03/05/12		306,477
Morgan Stanley & Co., Inc.	USD	12,338,712	PLN	41,980,000	03/05/12		(244,780	)
Royal Bank of Scotland	GBP	3,453,192	USD	5,411,383	03/05/12		51,707
Net unrealized appreciation on forward foreign currency contracts						$	1,971,142

Futures contracts

	Expiration date	Cost/ (proceeds)			Value			Unrealized appreciation/ (depreciation)
Index futures buy contracts:
Dow Jones EURO STOXX 50 Index, 412 contracts (EUR)	March 2012	$	12,298,155		$	12,306,971		$	8,816
TOPIX Index, 159 contracts (JPY)	March 2012		15,349,791			15,038,586			(311,205	)
Index futures sell contracts:
FTSE 100 Index, 133 contracts (GBP)	March 2012		(11,228,978	)		(11,434,552	)		(205,574	)
Russell 2000 Mini Index, 796 contracts (USD)	March 2012		(59,116,142	)		(58,808,480	)		307,662
E-mini S&P 500 Index, 868 contracts (USD)	March 2012		(54,373,907	)		(54,362,840	)		11,067
Net unrealized depreciation on futures contracts								$	(189,234	)

UBS Global Allocation Fund

Portfolio of investments

December 31, 2011 (unaudited)

Concluded

The following is a summary of the inputs used as of December 31, 2011 in valuing the Fund's investments:

Description	Unadjusted quoted prices in active markets for identical investments (Level 1)			Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	402,610,606		$	—	$	—	$	402,610,606
Preferred stock		2,910,497			—		—		2,910,497
Corporate bond		—			853,490		—		853,490
Mortgage & agency debt securities		—			1,257,828		—		1,257,828
US government obligations		—			57,040,667		—		57,040,667
Non-US government obligations		—			103,725,746		—		103,725,746
Investment companies		—			342,257,538		—		342,257,538
Warrants		—			240,499		—		240,499
Short-term investment		—			48,986,551		—		48,986,551
Investment of cash collateral from securities loaned		—			14,458,925		—		14,458,925
Forward foreign currency contracts		—			1,971,142		—		1,971,142
Futures contracts		(189,234	)		—		—		(189,234	)
Total	$	405,331,869		$	570,792,386	$	—	$	976,124,255

See accompanying notes to financial statements.
33

UBS Global Frontier Fund

Portfolio performance

For the six months ended December 31, 2011, Class A shares of UBS Global Frontier Fund (the "Fund") declined 15.06% (Class A shares declined 19.76% after the deduction of the maximum sales charge), while Class Y shares declined 14.89%. The Fund's benchmark, the GSMI Mutual Fund Index (the "Index"), declined 6.22% over the same time period. For comparison purposes, the MSCI World Free Index (net) declined 10.29%. (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 36; 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 the Index returns do not reflect the deduction of fees and expenses.)

The Fund's negative performance was due primarily to security selection and market allocation decisions.

Portfolio performance summary¹

What worked

• Currency strategies, overall, were positive for performance.

– The Fund's overweight to the Swiss franc was beneficial. The currency appreciated as its economic fundamentals were relatively solid during the reporting period.

– An overweight to the US dollar contributed to results. It generally performed well during periods of extreme risk aversion, given its "safe haven" status.

– A short to the euro benefited performance, especially during the fourth quarter when the European sovereign debt crisis escalated and the euro depreciated.

• The Fund's corporate credit overweight enhanced results during the reporting period.

– An overweight to investment-grade corporate bonds was beneficial as they generated positive results given generally strong demand from investors looking to generate incremental yield in the low interest rate environment.

– An overweight to high yield bonds was also rewarded, as they outperformed the Index during the reporting period.

What didn't work

¹ For a detailed commentary on the market environment in general during the reporting period, see page 2.

UBS Global Frontier Fund

• The Fund's positioning among risk assets detracted from results. When the reporting period began, the Fund's underlying portfolio, including a leverage factor of 50%, was overweight equity market exposure versus its benchmark index. However, given a host of macro issues, including the European sovereign debt crisis and slowing global growth, we took a slightly more conservative approach in the portfolio and reduced our equity exposure in early August and September. While this generated positive results as the equity markets sold off mid-period, it later detracted from performance when equities rallied in the last three months of the reporting period. At period end, the Fund's underlying portfolio, while applying a leverage factor of 50%, still remained overweight to equities based on our forward looking assumptions, with an estimated 66% exposure.

• Duration positioning was a negative for results. At the beginning of the period, the Fund's fixed income duration component in the US was shorter than the Index, as we felt US yields would move higher as the US economic expansion continued. With economic growth in the US hitting a soft patch, however, we then moved to a neutral duration in August. Overall, duration positioning detracted from results as US Treasury yields moved lower during the reporting period.

• Primary currency strategies were detrimental for performance. In particular, the Fund's overweight to the Mexican peso was not rewarded, as it performed poorly.

• Leverage detracted from performance during the period as market allocation generated negative results in the Fund's underlying portfolio. The Fund maintained a leverage factor of approximately 50% throughout the reporting period. Given that leverage magnifies returns on the upside and the downside, the negative impact from market exposure was, therefore, amplified.

UBS Global Frontier Fund

Average annual total returns for periods ended 12/31/11 (unaudited)

	6 months			1 year			Inception¹
Before deducting maximum sales charge
Class A²		(15.06	)%		(10.34	)%		(5.07	)%
Class C³		(15.29	)		(11.02	)		(5.76	)
Class Y⁴		(14.89	)		(10.17	)		(4.82	)
After deducting maximum sales charge
Class A²		(19.76	)%		(15.26	)%		(6.27	)%
Class C³		(16.09	)		(11.87	)		(5.76	)
MSCI World Free Index (net)⁵		(10.29	)%		(5.54	)%		(4.10	)%
GSMI Mutual Fund Index⁶		(6.22	)		(2.14	)		0.67

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2011 prospectuses were as follows: Class A—1.78% and 1.54%; Class C—2.55% and 2.29%; Class Y—1.57% and 1.29%. 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 UBS Global Asset Management (Americas) Inc., the Fund's investment advisor ("UBS Global AM (Americas)" or 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 expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and security loan fees for securities sold short) to the extent necessary so that the Fund's ordinary operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and security loan fees for securities sold short), through the period ending October 27, 2012, do not exceed 1.40% for Class A shares, 2.15% for Class C shares and 1.15% for Class Y shares. 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 Frontier Fund Class A, Class C and Class Y shares is July 26, 2007. Inception date of the indices, for the purpose of this illustration, is July 31, 2007.

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.

⁵ The MSCI World Free Index (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of May 2011, the index consisted of 24 developed market country indices. Dividends are reinvested after deduction of withholding tax, using tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates. Had US tax rates been applied, the performance of the index would be different. The index is constructed and managed with a view to being fully investable from the perspective of international institutional investors. Investors should note that indices do not reflect the deduction of fees and expenses.

⁶ The GSMI Mutual Fund Index is an unmanaged index compiled by the Advisor, constructed as follows: 65% MSCI All Country World Index (net), 15% Citigroup World Government Bond ex US Index, 15% Citigroup US Government Bond Index, 2% J.P. Morgan Emerging Markets Bond Index Global (EMBI Global) and 3% BofA 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% BofA Merrill Lynch US High Yield Cash Pay Constrained Index replaced the 3% BofA Merrill Lynch US High Yield Cash Pay Index. On April 30, 2009, the 65% MSCI All Country World Index replaced the 40% Russell 3000 Index, 22% MSCI World ex USA Index and 3% MSCI Emerging Markets Index (net); the 15% Citigroup World Government Bond ex US Index and 15% Citigroup US Government Bond Index replaced the 9% Citigroup World Government Bond ex US Index and the 21% Citigroup US Broad Investment Grade Index. Investors should note that indices do not reflect the deduction of fees and expenses.

UBS Global Frontier Fund

Top ten equity holdings (unaudited)¹

As of December 31, 2011

	Percentage of net assets
Apple, Inc.		0.5	%
Philip Morris International, Inc.		0.3
Time Warner, Inc.		0.3
Citigroup, Inc.		0.2
AT&T, Inc.		0.2
Comcast Corp., Class A		0.2
Colgate-Palmolive Co.		0.2
Kraft Foods, Inc., Class A		0.2
General Dynamics Corp.		0.2
Adobe Systems, Inc.		0.2
Total		2.5	%

Country exposure by issuer, top five (unaudited)²

As of December 31, 2011

	Percentage of net assets
United States		12.6	%
Germany		6.2
United Kingdom		3.3
Italy		2.1
Spain		2.0
Total		26.2	%

Top ten long-term fixed income holdings (unaudited)¹

As of December 31, 2011

	Percentage of net assets
Buoni Poliennali Del Tesoro, 4.000%, due 02/01/37		2.1	%
Kingdom of Spain, 4.200%, due 01/31/37		2.0
UK Gilts, 3.750%, due 09/07/21		1.6
Bundesschatzanweisungen, 0.500%, due 06/15/12		1.5
Bundesrepublik Deutschland, 3.250%, due 07/04/21		1.1
Bundesobligation, 2.250%, due 04/11/14		1.0
Bundesrepublik Deutschland, 6.250%, due 01/04/24		0.8
US Treasury Notes, 0.250%, due 10/31/13		0.8
UK Gilts, 4.000%, due 09/07/16		0.8
Bundesrepublik Deutschland, 4.000%, due 01/04/37		0.7
Total		12.4	%

¹ Figures represent the direct investments of UBS Global Frontier Fund. Figures would be different if a breakdown of the underlying investment companies was included.

² Figures represent the direct investments of UBS Global Frontier Fund. If a breakdown of the underlying investment companies was included, the country exposure percentages would be as follows: United States 44.8%, United Kingdom 8.9%, Germany 7.8%, Japan 3.0%, Italy 2.8%.

UBS Global Frontier Fund

Industry diversification (unaudited)¹

As a percentage of net assets as of December 31, 2011

Common stocks
Aerospace & defense	0.60	%
Air freight & logistics	0.21
Automobiles	0.14
Biotechnology	0.35
Capital markets	0.24
Chemicals	0.26
Commercial banks	0.33
Communications equipment	0.18
Computers & peripherals	0.65
Construction materials	0.09
Diversified consumer services	0.12
Diversified financial services	0.54
Diversified telecommunication services	0.24
Electric utilities	0.26
Energy equipment & services	0.62
Food & staples retailing	0.14
Food products	0.30
Health care equipment & supplies	0.16
Health care providers & services	0.24
Hotels, restaurants & leisure	0.18
Household products	0.23
Insurance	0.27
Internet & catalog retail	0.14
IT services	0.39
Life sciences tools & services	0.06
Machinery	0.19
Media	0.61
Metals & mining	0.07
Multiline retail	0.14
Oil, gas & consumable fuels	0.63
Pharmaceuticals	0.40
Real estate investment trust (REIT)	0.07
Road & rail	0.12
Semiconductors & semiconductor equipment	0.30	%
Software	0.40
Specialty retail	0.14
Textiles, apparel & luxury goods	0.14
Tobacco	0.29
Wireless telecommunication services	0.07
Total common stocks	10.51	%
Bonds
Corporate bond
Diversified financial services	0.36
US government obligations	2.32
Non-US government obligations	14.84
Total bonds	17.52	%
Investment companies
UBS Credit Bond Relationship Fund	15.15
UBS Emerging Markets Equity Relationship Fund	6.35
UBS Global (ex-U.S.) All Cap Growth Relationship Fund	10.18
UBS Global Corporate Bond Relationship Fund	9.53
UBS High Yield Relationship Fund	7.68
UBS International Equity Relationship Fund	7.31
UBS U.S. Large Cap Growth Equity Relationship Fund	10.02
Total investment companies	66.22	%
Short-term investment	2.25
Investment of cash collateral from securities loaned	0.09
Total investments	96.59	%
Cash and other assets, less liabilities	3.41
Net assets	100.00	%

¹ Figures represent the industry breakdown of direct investments of UBS Global Frontier Fund. Figures would be different if a breakdown of the underlying investment companies' industry diversification was included.

UBS Global Frontier Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Shares		Value
Common stocks: 10.51%
Israel: 0.08%
Teva Pharmaceutical Industries Ltd. ADR		1,000	$	40,360
Switzerland: 0.07%
ACE Ltd.		500		35,060
United Kingdom: 0.12%
Ensco PLC ADR		1,200		56,304
United States: 10.24%
Acorda Therapeutics, Inc.*		1,600		38,144
Adobe Systems, Inc.*		3,700		104,599
Aflac, Inc.		1,200		51,912
Alcoa, Inc.		3,900		33,735
Alexion Pharmaceuticals, Inc.*		700		50,050
Allergan, Inc.		400		35,096
Amazon.com, Inc.*		400		69,240
Amylin Pharmaceuticals, Inc.*		2,400		27,312
Annaly Capital Management, Inc.		2,100		33,516
Apollo Group, Inc., Class A*		1,100		59,257
Apple, Inc.*		600		243,000
AT&T, Inc.		3,800		114,912
Atmel Corp.*		2,700		21,870
Baker Hughes, Inc.		2,100		102,144
Baxter International, Inc.		700		34,636
Bio-Rad Laboratories, Inc., Class A*		300		28,812
Boeing Co.		1,300		95,355
Broadcom Corp., Class A*		1,300		38,168
Bunge Ltd.		600		34,320
Carnival Corp.		1,600		52,224
Celanese Corp., Series A		1,100		48,697
Cisco Systems, Inc.		4,700		84,976
Citigroup, Inc.		4,400		115,764
CME Group, Inc.		200		48,734
Coach, Inc.		1,100		67,144
Colgate-Palmolive Co.		1,200		110,868
Comcast Corp., Class A		4,800		113,808
Crown Castle International Corp.*		800		35,840
Dow Chemical Co.		2,600		74,776
Edison International		1,700		70,380
EOG Resources, Inc.		600		59,106
EQT Corp.		1,400		76,706
FedEx Corp.		1,200		100,212
Fidelity National Information Services, Inc.		1,700		45,203
GameStop Corp., Class A*		2,700		65,151
General Dynamics Corp.		1,600		106,256
General Motors Co.*		3,400		68,918
Gilead Sciences, Inc.*		1,300		53,209
HCA Holdings, Inc.*		1,700		37,451
Hertz Global Holdings, Inc.*		5,100		59,772

	Shares		Value
Hess Corp.		1,500	$	85,200
Hewlett-Packard Co.		2,600		66,976
Hospira, Inc.*		1,300		39,481
Illinois Tool Works, Inc.		2,000		93,420
International Game Technology		1,900		32,680
Intersil Corp., Class A		3,400		35,496
Invesco Ltd.		2,000		40,180
JPMorgan Chase & Co.		2,900		96,425
Kohl's Corp.		1,400		69,090
Kraft Foods, Inc., Class A		2,900		108,344
Kroger Co.		2,700		65,394
Martin Marietta Materials, Inc.¹		600		45,246
McDermott International, Inc.*		7,700		88,627
Medtronic, Inc.		1,100		42,075
Merck & Co., Inc.		2,100		79,170
MetLife, Inc.		1,400		43,652
Morgan Stanley		5,100		77,163
NextEra Energy, Inc.		900		54,792
Noble Corp.*		1,700		51,374
Peabody Energy Corp.		1,200		39,732
Philip Morris International, Inc.		1,800		141,264
ServiceSource International, Inc.*		3,300		51,777
Skyworks Solutions, Inc.*		3,100		50,282
Symantec Corp.*		5,500		86,075
Textron, Inc.		4,800		88,752
Time Warner, Inc.		3,400		122,876
Ultra Petroleum Corp.*		1,500		44,445
UnitedHealth Group, Inc.		1,500		76,020
US Bancorp		2,100		56,805
Viacom, Inc., Class B		1,200		54,492
Visa, Inc., Class A		900		91,377
Wells Fargo & Co.		3,600		99,216
Total United States common stocks				4,929,171
Total common stocks (cost $5,237,121)				5,060,895
	Face amount
Bonds: 17.52%
Corporate bond: 0.36%
Austria: 0.36%
Oesterreichische Kontrollbank AG, 3.500%, due 04/28/14 (cost $176,045)	EUR	130,000		174,730
US government obligations: 2.32%
US Treasury Bonds, 3.750%, due 08/15/41	$	80,000		94,087
4.375%, due 05/15/41		15,000		19,545
6.250%, due 08/15/23		70,000		100,187
6.625%, due 02/15/27		105,000		161,569

UBS Global Frontier Fund

Portfolio of investments

December 31, 2011 (unaudited)

	Face amount		Value
Bonds—(Concluded)
US government obligations—(Concluded)
US Treasury Notes, 0.250%, due 10/31/13	$	390,000	$	390,061
0.250%, due 11/30/13		130,000		130,015
0.875%, due 11/30/16¹		35,000		35,107
1.000%, due 10/31/16¹		5,000		5,048
2.500%, due 04/30/15		170,000		181,422
Total US government obligations (cost $1,054,074)				1,117,041
Non-US government obligations: 14.84%
Austria: 0.09%
Republic of Austria, 4.350%, due 03/15/19²	EUR	30,000		42,846
Finland: 0.62%
Government of Finland, 4.375%, due 07/04/19		200,000		297,341
Germany: 6.20%
Bundesobligation, 2.250%, due 04/11/14		350,000		474,980
Bundesrepublik Deutschland, 3.250%, due 07/04/21		370,000		541,030
4.000%, due 07/04/16		145,000		215,062
4.000%, due 01/04/37		190,000		316,053
6.250%, due 01/04/24		215,000		400,839
Bundesschatzanweisungen, 0.500%, due 06/15/12		560,000		726,447
Kreditanstalt fuer Wiederaufbau, 3.875%, due 07/04/13		160,000		216,308
Landwirtschaftliche Rentenbank, 3.250%, due 03/12/14		70,000		94,711
				2,985,430
Italy: 2.13%
Buoni Poliennali Del Tesoro, 4.000%, due 02/01/37		1,135,000		1,026,078
Netherlands: 0.62%
Government of the Netherlands, 3.250%, due 07/15/21		170,000		239,400
4.000%, due 07/15/18		40,000		58,684
				298,084
Spain: 1.97%
Kingdom of Spain, 4.200%, due 01/31/37		935,000		946,646

	Face amount		Value
United Kingdom: 3.21%
UK Gilts, 3.750%, due 09/07/21	GBP	430,000	$	772,346
4.000%, due 09/07/16		215,000		381,809
4.250%, due 12/07/49		100,000		196,862
4.750%, due 12/07/38		95,000		197,018
				1,548,035
Total non-US government obligations (cost $7,412,068)				7,144,460
Total bonds (cost $8,642,187)				8,436,231
	Shares
Investment companies: 66.22%
UBS Credit Bond Relationship Fund*³		478,394		7,294,403
UBS Emerging Markets Equity Relationship Fund*³		92,101		3,054,963
UBS Global (ex-U.S.) All Cap Growth Relationship Fund*³		426,674		4,897,663
UBS Global Corporate Bond Relationship Fund*³		408,581		4,588,165
UBS High Yield Relationship Fund*³		136,104		3,696,636
UBS International Equity Relationship Fund*³		225,542		3,518,682
UBS U.S. Large Cap Growth Equity Relationship Fund*³		352,581		4,824,608
Total investment companies (cost $29,082,412)				31,875,120
Short-term investment: 2.25%
Investment company: 2.25%
UBS Cash Management Prime Relationship Fund³(cost $1,082,747)		1,082,747		1,082,747
Investment of cash collateral from securities loaned: 0.09%
UBS Private Money Market Fund LLC³(cost $41,445)		41,445		41,445
Total investments: 96.59% (cost $44,085,912)				46,496,438
Cash and other assets, less liabilities: 3.41%				1,639,524
Net assets: 100.00%			$	48,135,962

UBS Global Frontier Fund

Portfolio of investments

December 31, 2011 (unaudited)

Notes to portfolio of investments

Aggregate cost for federal income tax purposes was substantially the same as for book purposes; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	3,151,367
Gross unrealized depreciation		(740,841	)
Net unrealized appreciation of investments	$	2,410,526

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 44.

* Non-income producing security.

¹ Security, or portion thereof, was on loan at December 31, 2011.

² Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security is considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2011, the value of this security amounted to $42,846 or 0.09% of net assets.

³ The table below details the Fund's investments in funds advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Funds.

Security description	Value 6/30/11		Purchases during the six months ended 12/31/11		Sales during the six months ended 12/31/11		Net realized gain during the six months ended 12/31/11		Change in net unrealized appreciation/ (depreciation) during the six months ended 12/31/11			Value 12/31/11		Income earned from affiliate for the six months ended 12/31/11
UBS Cash Management Prime Relationship Fund	$	1,679,454	$	17,106,939	$	17,703,646	$	—	$	—		$	1,082,747	$	985
UBS Private Money Market Fund LLC^a		—		1,003,216		961,771		—		—			41,445		6
UBS Credit Bond Relationship Fund		4,042,507		4,400,000		1,400,000		370,979		(119,083	)		7,294,403		—
UBS Emerging Markets Equity Relationship Fund		8,195,772		—		3,500,000		1,178,200		(2,819,009	)		3,054,963		—
UBS Global (ex-U.S.) All Cap Growth Relationship Fund		7,463,632		—		1,100,000		214,543		(1,680,512	)		4,897,663		—
UBS Global Corporate Bond Relationship Fund		4,423,175		1,100,000		1,000,000		94,585		(29,595	)		4,588,165		—
UBS High Yield Relationship Fund		3,953,787		500,000		700,000		280,193		(337,344	)		3,696,636		—
UBS International Equity Relationship Fund		7,328,307		—		2,500,000		487,672		(1,797,297	)		3,518,682		—
UBS U.S. Large Cap Equity Relationship Fund		11,621,189		—		11,350,330		4,283,854		(4,554,713	)		—		—
UBS U.S. Large Cap Growth Equity Relationship Fund		5,536,738		3,100,000		3,250,000		1,298,772		(1,860,902	)		4,824,608		—
	$	54,244,561	$	27,210,155	$	43,465,747	$	8,208,798	$	(13,198,455	)	$	32,999,312	$	991

^a The adviser does earn a management fee from this affiliated fund, and any income earned is net of expenses. Please see the Notes to financial statements for further information.

UBS Global Frontier Fund

Portfolio of investments

December 31, 2011 (unaudited)

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation/ (depreciation)
Barclays Bank PLC	AUD	765,000	EUR	580,060	03/05/12	$	(25,862	)
JPMorgan Chase Bank	AUD	1,875,000	USD	1,840,793	03/05/12		(63,580	)
JPMorgan Chase Bank	CNY	2,340,000	USD	366,656	04/19/12		(4,559	)
JPMorgan Chase Bank	EUR	3,750,000	USD	5,021,400	03/05/12		165,505
JPMorgan Chase Bank	HUF	173,650,000	USD	743,946	03/05/12		35,346
JPMorgan Chase Bank	NZD	3,945,000	USD	2,958,154	03/05/12		(99,970	)
JPMorgan Chase Bank	USD	1,216,895	CAD	1,260,000	03/05/12		18,192
JPMorgan Chase Bank	USD	463,533	CHF	425,000	03/05/12		(10,511	)
JPMorgan Chase Bank	USD	965,000	CNY	6,171,175	04/19/12		13,988
JPMorgan Chase Bank	USD	646,200	GBP	415,000	03/05/12		(2,081	)
JPMorgan Chase Bank	USD	4,465,703	JPY	346,100,000	03/05/12		35,595
JPMorgan Chase Bank	USD	1,092,665	KRW	1,267,000,000	03/05/12		2,537
JPMorgan Chase Bank	USD	3,210,795	MXN	45,350,000	03/05/12		22,519
JPMorgan Chase Bank	USD	934,910	MYR	2,989,000	03/05/12		4,616
JPMorgan Chase Bank	USD	384,289	NOK	2,260,000	03/05/12		(7,266	)
JPMorgan Chase Bank	USD	1,016,633	PLN	3,465,000	03/05/12		(18,408	)
JPMorgan Chase Bank	USD	601,451	SEK	4,180,000	03/05/12		4,104
JPMorgan Chase Bank	USD	343,258	ZAR	2,910,000	03/05/12		13,749
Net unrealized appreciation on forward foreign currency contracts						$	83,914

Futures contracts

	Expiration date	Cost/ (proceeds)			Value			Unrealized appreciation/ (depreciation)
US Treasury futures buy contracts:
US Ultra Bond Futures, 3 contracts (USD)	March 2012	$	473,724		$	480,563		$	6,839
10 Year US Treasury Notes, 28 contracts (USD)	March 2012		3,627,357			3,671,500			44,143
Index futures buy contracts:
Amsterdam Exchange Index, 2 contracts (EUR)	January 2012		155,518			162,170			6,652
DAX Index, 3 contracts (EUR)	March 2012		556,932			572,705			15,773
Dow Jones Euro STOXX 50 Index, 71 contracts (EUR)	March 2012		2,119,342			2,120,861			1,519
E-mini S&P 500 Index, 51 contracts (USD)	March 2012		3,195,010			3,194,130			(880	)
FTSE 100 Index, 12 contracts (GBP)	March 2012		1,012,497			1,031,689			19,192
Hang Seng Stock Index, 3 contracts (HKD)	January 2012		359,372			356,449			(2,923	)
IBEX 35 Index, 2 contracts (EUR)	January 2012		211,805			219,401			7,596
OMX Stockholm 30 Index, 50 contracts (SEK)	January 2012		690,403			718,536			28,133
S&P Toronto Stock Exchange 60 Index, 8 contracts (CAD)	March 2012		1,061,086			1,066,248			5,162
SPI 200 Index, 9 contracts (AUD)	March 2012		978,650			924,892			(53,758	)
TOPIX Index, 29 contracts (JPY)	March 2012		2,799,648			2,742,887			(56,761	)
Index futures sell contracts:
Russell 2000 Mini Index, 38 contracts (USD)	March 2012		(2,822,127	)		(2,807,440	)		14,687
Net unrealized appreciation on futures contracts								$	35,374

UBS Global Frontier Fund

Portfolio of investments

December 31, 2011 (unaudited)

Concluded

The following is a summary of the inputs used as of December 31, 2011 in valuing the Fund's investments:

Description	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	5,060,895	$	—	$	—	$	5,060,895
Corporate bond		—		174,730		—		174,730
US government obligations		—		1,117,041		—		1,117,041
Non-US government obligations		—		7,144,460		—		7,144,460
Investment companies		—		31,875,120		—		31,875,120
Short-term investment		—		1,082,747		—		1,082,747
Investment of cash collateral from securities loaned		—		41,445		—		41,445
Forward foreign currency contracts		—		83,914		—		83,914
Futures contracts		35,374		—		—		35,374
Total	$	5,096,269	$	41,519,457	$	—	$	46,615,726

See accompanying notes to financial statements.
43

The UBS Funds

Portfolio acronyms

ADR American depositary receipt

CDO Collateralized debt obligations

EURIBOR Euro Interbank Offered Rate

GDR Global depositary receipt

GE General Electric

GSR Goldman Sachs Residential

NVDR Non-voting 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.

REIT Real estate investment trust

Currency abbreviations

AUD Australian Dollar

BRL Brazilian Real

CAD Canadian Dollar

CHF Swiss Franc

CNY Chinese Yuan

EUR Euro

GBP Great Britain Pound

HKD Hong Kong Dollar

HUF Hungarian Forint

JPY Japanese Yen

KRW Korean Won

MXN Mexican Peso

MYR Malaysian Ringgit

NOK Norwegian Krone

NZD New Zealand Dollar

PLN Polish Zloty

SEK Swedish Krona

USD United States Dollar

ZAR South African Rand

See accompanying notes to financial statements.
44

The UBS Funds

December 31, 2011 (unaudited)

Explanation of expense disclosure

The example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2011 to December 31, 2011.

Actual expenses

Hypothetical example for comparison purposes

This projection assumes that annualized expense ratios were in effect during the period July 1, 2011 to December 31, 2011.

The UBS Funds

December 31, 2011 (unaudited)

		Beginning account value July 1, 2011		Ending account value December 31, 2011		Expenses paid during period* 07/01/11 – 12/31/11		Expense ratio during period
UBS Dynamic Alpha Fund
Class A	Actual	$	1,000.00	$	1,008.30	$	8.53		1.69	%
	Hypothetical (5% annual return before expenses)		1,000.00		1,016.64		8.57		1.69
Class B	Actual		1,000.00		1,005.30		12.35		2.45
	Hypothetical (5% annual return before expenses)		1,000.00		1,012.82		12.40		2.45
Class C	Actual		1,000.00		1,005.30		12.30		2.44
	Hypothetical (5% annual return before expenses)		1,000.00		1,012.87		12.35		2.44
Class Y	Actual		1,000.00		1,009.90		7.28		1.44
	Hypothetical (5% annual return before expenses)		1,000.00		1,017.90		7.30		1.44
UBS Global Allocation Fund
Class A	Actual		1,000.00		897.00		5.96		1.25
	Hypothetical (5% annual return before expenses)		1,000.00		1,018.85		6.34		1.25
Class B	Actual		1,000.00		893.20		9.99		2.10
	Hypothetical (5% annual return before expenses)		1,000.00		1,014.58		10.63		2.10
Class C	Actual		1,000.00		893.30		9.66		2.03
	Hypothetical (5% annual return before expenses)		1,000.00		1,014.93		10.28		2.03
Class Y	Actual		1,000.00		898.90		4.53		0.95
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.36		4.82		0.95
UBS Global Frontier Fund
Class A	Actual		1,000.00		849.40		6.51		1.40
	Hypothetical (5% annual return before expenses)		1,000.00		1,018.10		7.10		1.40
Class C	Actual		1,000.00		847.10		9.98		2.15
	Hypothetical (5% annual return before expenses)		1,000.00		1,014.33		10.89		2.15
Class Y	Actual		1,000.00		851.10		5.35		1.15
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.36		5.84		1.15

* Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period).

The UBS Funds

Financial statements

Statement of assets and liabilities
December 31, 2011 (unaudited)

	UBS Dynamic Alpha Fund		UBS Global Allocation Fund		UBS Global Frontier Fund
Assets:
Investments, at cost:
Unaffiliated issuers	$	246,193,707	$	575,556,647	$	13,879,308
Affiliated issuers		17,594,250		336,050,580		30,165,159
Investments of cash collateral in affiliated issuers received from securities loaned, at cost¹		1,487,143		14,458,925		41,445
Foreign currency, at cost		11,934,216		1,830,887		271,884
	$	277,209,316	$	927,897,039	$	44,357,796
Investments, at value:
Unaffiliated issuers	$	234,795,575	$	568,639,333	$	13,497,126
Affiliated issuers		17,594,250		391,244,089		32,957,867
Investments of cash collateral in affiliated issuers received from securities loaned, at value¹		1,487,143		14,458,925		41,445
Foreign currency, at value		11,817,096		1,838,144		263,101
Cash		—		182		—
Receivables:
Interest		4,048,316		2,308,293		162,988
Foreign tax reclaims		178,788		229,767		—
Fund shares sold		136,285		175,604		11,594
Dividends		3,654		499,920		8,883
Investment securities sold		—		562,687		32,799
Due from broker		3,420,957		957,034		332,017
Cash collateral for futures contracts		10,770,068		11,183,425		1,167,786
Cash collateral for swap agreements		3,640,000		—		—
Outstanding swap agreements, at value²		4,642,926		—		—
Unrealized appreciation on forward foreign currency contracts		2,621,192		4,696,706		316,151
Other assets		55,186		95,958		25,515
Total assets		295,211,436		996,890,067		48,817,272
Liabilities:
Payables:
Cash collateral from securities loaned		1,487,143		14,458,925		41,445
Investment securities purchased		—		1,467,448		35,826
Investment advisory and administration fee		210,557		724,516		27,703
Fund shares redeemed		1,112,192		7,107,745		258,019
Custody and fund accounting fees		24,604		64,674		8,488
Distribution and service fees		87,202		358,349		17,337
Trustees' fees		9,806		25,027		4,722
Due to custodian		4,732		—		—
Accrued expenses		201,639		318,908		55,533
Options written, at value³		4,479,300		—		—
Securities sold short, at value⁴		6,835		—		—
Outstanding swap agreements, at value²		6,484,041		—		—
Unrealized depreciation on forward foreign currency contracts		2,269,215		2,725,564		232,237
Total liabilities		16,377,266		27,251,156		681,310
Net assets	$	278,834,170	$	969,638,911	$	48,135,962

¹ The market value of securities loaned by UBS Dynamic Alpha Fund, UBS Global Allocation Fund and UBS Global Frontier Fund, as of December 31, 2011 was $1,460,425, $21,031,454 and $80,910, respectively.

² Net upfront payments received by UBS Dynamic Alpha Fund were $2,546,195.

³ Premiums received by UBS Dynamic Alpha Fund were $5,226,039.

⁴ Proceeds from securities sold short by UBS Dynamic Alpha Fund were $6,238.

See accompanying notes to financial statements.
47

The UBS Funds

Financial statements

Statement of assets and liabilities (continued)
December 31, 2011 (unaudited)

	UBS Dynamic Alpha Fund			UBS Global Allocation Fund			UBS Global Frontier Fund¹
Net assets consist of:
Beneficial interest	$	687,211,766		$	2,041,175,210		$	74,548,342
Accumulated undistributed (distributions in excess of) net investment income		2,565,894			(3,450,847	)		(441,034	)
Accumulated net realized loss		(402,152,167	)		(1,118,045,394	)		(28,480,342	)
Net unrealized appreciation (depreciation)		(8,791,323	)		49,959,942			2,508,996
Net assets	$	278,834,170		$	969,638,911		$	48,135,962
Class A:
Net assets	$	176,159,156		$	568,418,181		$	35,603,880
Shares outstanding		29,145,886			64,730,089			5,302,513
Net asset value and redemption proceeds per share	$	6.04		$	8.78		$	6.71
Offering price per share (NAV per share plus maximum sales charge)²	$	6.39		$	9.29		$	7.10
Class B:
Net assets	$	1,198,804		$	3,957,117			N/A
Shares outstanding		208,770			438,932			N/A
Net asset value and offering price per share	$	5.74		$	9.02			N/A
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)²	$	5.45		$	8.57			N/A
Class C:
Net assets	$	54,682,625		$	262,718,863		$	10,896,237
Shares outstanding		9,518,857			30,562,304			1,623,525
Net asset value and offering price per share	$	5.74		$	8.60		$	6.71
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)²	$	5.68		$	8.51		$	6.64
Class Y:
Net assets	$	46,793,585		$	134,544,750		$	1,635,845
Shares outstanding		7,604,144			15,039,316			243,710
Net asset value per share, offering price per share, and redemption proceeds per share²	$	6.15		$	8.95		$	6.71

¹ UBS Global Frontier Fund does not offer Class B shares.

² For Class A, the maximum sales charge is 5.50%. 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%. Class Y has no contingent deferred sales charge.

See accompanying notes to financial statements.
48

The UBS Funds

Financial statements

Statement of operations
For the six months ended December 31, 2011 (unaudited)

	UBS Dynamic Alpha Fund			UBS Global Allocation Fund			UBS Global Frontier Fund
Investment income:
Dividends	$	1,160,211		$	3,959,998		$	53,905
Interest and other		2,041,236			2,316,505			131,856
Affiliated interest		35,475			29,824			985
Securities lending¹		11,571			105,077			188
Foreign tax withheld		(41,505	)		(206,115	)		—
Total income		3,206,988			6,205,289			186,934
Expenses:
Advisory and administration		1,448,596			4,655,194			282,881
Service and distribution:
Class A		244,284			814,246			51,166
Class B		8,172			26,501			—
Class C		305,872			1,492,520			63,082
Transfer agency and related service fees:
Class A		92,451			211,638			9,282
Class B		2,502			7,562			—
Class C		35,353			149,356			4,570
Class Y		6,343			13,863			388
Custodian and fund accounting		70,177			193,204			25,489
Federal and state registration		26,045			28,029			18,982
Professional services		65,750			67,274			44,688
Shareholder reports		17,183			49,506			2,691
Trustees		19,211			49,939			9,385
Dividend expense and security loan fees for securities sold short		536,322			—			—
Other		31,879			77,025			7,787
Total expenses		2,910,140			7,835,857			520,391
Fee waivers and/or expense reimbursements by Advisor		(99,593	)		(3,145	)		(90,505	)
Net expenses		2,810,547			7,832,712			429,886
Net investment income (loss)		396,441			(1,627,423	)		(242,952	)
Net realized gain (loss) on:
Investments in unaffiliated issuers		(5,932,380	)		19,178,174			(454,049	)
Investments in affiliated issuers		13,455,115			17,504,101			8,208,798
Futures contracts		12,831,245			(1,004,633	)		(2,669,392	)
Options written		1,892,293			—			—
Securities sold short		(19,548,863	)		—			—
Swap agreements		(2,164,719	)		—			—
Forward foreign currency contracts		6,445,060			2,995,648			(58,821	)
Foreign currency transactions		(974,275	)		10,800			34,429
Net realized gain		6,003,476			38,684,090			5,060,965
Change in net unrealized appreciation/depreciation on:
Investments		(50,645,451	)		(169,342,069	)		(13,815,725	)
Futures contracts		8,778,329			913,101			(798,988	)
Options written		745,925			—			—
Securities sold short		23,997,082			—			—
Swap agreements		11,797,350			—			—
Forward foreign currency contracts		2,290,555			2,273,697			62,300
Translation of other assets and liabilities denominated in foreign currency		(180,711	)		(199,883	)		(31,341	)
Change in net unrealized appreciation/depreciation		(3,216,921	)		(166,355,154	)		(14,583,754	)
Net realized and unrealized gain (loss)		2,786,555			(127,671,064	)		(9,522,789	)
Net increase (decrease) in net assets resulting from operations	$	3,182,996		$	(129,298,487	)	$	(9,765,741	)

¹ Includes affiliated income from UBS Private Money Market Fund LLC of $196, $949 and $6, for UBS Dynamic Alpha Fund, UBS Global Allocation Fund and UBS Global Frontier Fund, respectively.

See accompanying notes to financial statements.
49

The UBS Funds

Financial statements

Statement of changes in net assets

	UBS Dynamic Alpha Fund						UBS Global Allocation Fund
	Six months 2011 (unaudited)			ended December 31, Year ended June 30, 2011			Six months 2011 (unaudited)			ended December 31, Year ended June 30, 2011
Operations:
Net investment income (loss)	$	396,441		$	4,116,479		$	(1,627,423	)	$	(1,864,654	)
Net realized gain (loss)		6,003,476			(29,681,152	)		38,684,090			171,053,827
Change in net unrealized appreciation/depreciation		(3,216,921	)		47,078,632			(166,355,154	)		133,154,325
Net increase (decrease) in net assets from operations		3,182,996			21,513,959			(129,298,487	)		302,343,498
Dividends and distributions to shareholders by class:
Class A:
Net investment income and net foreign currency gains		—			(7,507,567	)		(27,265,006	)		(35,643,712	)
Class B:
Net investment income and net foreign currency gains		—			(74,697	)		(70,597	)		(271,858	)
Class C:
Net investment income and net foreign currency gains		—			(1,529,009	)		(9,883,866	)		(13,451,079	)
Class Y:
Net investment income and net foreign currency gains		—			(2,642,703	)		(6,688,859	)		(8,188,472	)
Decrease in net assets from dividends and distributions		—			(11,753,976	)		(43,908,328	)		(57,555,121	)
Beneficial interest transactions:
Proceeds from shares sold		5,548,147			38,956,835			11,216,133			77,483,013
Shares issued on reinvestment of dividends and distributions		—			11,063,907			39,684,007			53,431,280
Cost of shares redeemed		(102,292,928	)		(213,836,745	)		(197,894,190	)		(467,500,598	)
Redemption fees		3,935			13,204			9,787			25,304
Net decrease in net assets resulting from beneficial interest transactions		(96,740,846	)		(163,802,799	)		(146,984,263	)		(336,561,001	)
Increase (decrease) in net assets		(93,557,850	)		(154,042,816	)		(320,191,078	)		(91,772,624	)
Net assets, beginning of period		372,392,020			526,434,836			1,289,829,989			1,381,602,613
Net assets, end of period	$	278,834,170		$	372,392,020		$	969,638,911		$	1,289,829,989
Net assets include accumulated undistributed (distributions in excess of) net investment income	$	2,565,894		$	2,169,453		$	(3,450,847	)	$	42,084,904

The UBS Funds

Financial statements

	UBS Global Frontier Fund
	Six months 2011 (unaudited)			ended December 31, Year ended June 30, 2011
Operations:
Net investment income (loss)	$	(242,952	)	$	(905,608	)
Net realized gain (loss)		5,060,965			12,934,617
Change in net unrealized appreciation/depreciation		(14,583,754	)		9,195,277
Net increase (decrease) in net assets from operations		(9,765,741	)		21,224,286
Dividends and distributions to shareholders by class:
Class A:
Net investment income and net foreign currency gains		(1,967,450	)		(1,678,450	)
Class B:
Net investment income and net foreign currency gains		—			—
Class C:
Net investment income and net foreign currency gains		(551,404	)		(361,050	)
Class Y:
Net investment income and net foreign currency gains		(103,964	)		(28,269	)
Decrease in net assets from dividends and distributions		(2,622,818	)		(2,067,769	)
Beneficial interest transactions:
Proceeds from shares sold		2,027,825			11,145,739
Shares issued on reinvestment of dividends and distributions		2,479,555			1,915,760
Cost of shares redeemed		(10,534,224	)		(28,131,068	)
Redemption fees		833			7,126
Net decrease in net assets resulting from beneficial interest transactions		(6,026,011	)		(15,062,443	)
Increase (decrease) in net assets		(18,414,570	)		4,094,074
Net assets, beginning of period		66,550,532			62,456,458
Net assets, end of period	$	48,135,962		$	66,550,532
Net assets include accumulated undistributed (distributions in excess of) net investment income	$	(441,034	)	$	2,424,736

See accompanying notes to financial statements.
51

UBS Dynamic Alpha Fund

Financial highlights

The table below sets forth data for one share of beneficial interest outstanding throughout each period presented.

	Class A
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	5.98		$	5.92		$	5.45		$	9.89		$	11.42		$	11.04
Income (loss) from investment operations:
Net investment income (loss)¹		0.01			0.06			0.02			0.14			0.04			0.01
Net realized and unrealized gain (loss)		0.05			0.16			0.75			(1.84	)		(0.56	)		0.37
Net increase from payment by Advisor		—			—			—			0.00³			—			—
Total income (loss)		0.06			0.22			0.77			(1.70	)		(0.52	)		0.38
Less dividends/distributions:
From net investment income		—			(0.16	)		(0.30	)		—			(0.01	)		(0.00	)³
From net realized gains		—			—			—			(2.74	)		(1.00	)		—
Total dividends/distributions		—			(0.16	)		(0.30	)		(2.74	)		(1.01	)		(0.00	)³
Net asset value, end of period	$	6.04		$	5.98		$	5.92		$	5.45		$	9.89		$	11.42
Total investment return²		0.83	%		3.58	%		14.19	%		(14.31	)%⁴		(4.95	)%		3.44	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		1.76	%⁵		1.79	%		1.74	%		1.54	%		1.20	%		1.17	%
Expenses after fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		1.69	%⁵		1.76	%		1.72	%		1.54	%		1.20	%		1.17	%
Expenses after fee waivers and/or expense reimbursement and before dividend expense and security loan fees for securities sold short		1.35	%⁵		1.35	%		1.35	%		1.30	%		1.20	%		1.17	%
Net investment income (loss)		0.37	%⁵		0.95	%		0.31	%		1.99	%		0.35	%		0.06	%
Supplemental data:
Net assets, end of period (000's)	$	176,159		$	216,297		$	334,131		$	398,321		$	1,178,342		$	2,168,596
Portfolio turnover rate		115	%		65	%		58	%		139	%		39	%		28	%
	Class B
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	5.71		$	5.65		$	5.20		$	9.68		$	11.26		$	10.98
Income (loss) from investment operations:
Net investment income (loss)¹		(0.01	)		0.01			(0.03	)		0.08			(0.04	)		(0.09	)
Net realized and unrealized gain (loss)		0.04			0.16			0.73			(1.82	)		(0.54	)		0.37
Net increase from payment by Advisor		—			—			—			0.00³			—			—
Total income (loss)		0.03			0.17			0.70			(1.74	)		(0.58	)		0.28
Less dividends/distributions:
From net investment income		—			(0.11	)		(0.25	)		—			—			—
From net realized gains		—			—			—			(2.74	)		(1.00	)		—
Total dividends/distributions		—			(0.11	)		(0.25	)		(2.74	)		(1.00	)		—
Net asset value, end of period	$	5.74		$	5.71		$	5.65		$	5.20		$	9.68		$	11.26
Total investment return²		0.53	%		2.86	%		13.11	%		(14.98	)%⁴		(5.62	)%		2.64	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		2.74	%⁵		2.63	%		2.58	%		2.39	%		1.99	%		1.95	%
Expenses after fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		2.45	%⁵		2.50	%		2.47	%		2.36	%		1.99	%		1.95	%
Expenses after fee waivers and/or expense reimbursement and before dividend expense and security loan fees for securities sold short		2.10	%⁵		2.10	%		2.10	%		2.10	%		1.99	%		1.95	%
Net investment income (loss)		(0.48	)%⁵		0.15	%		(0.44	)%		1.23	%		(0.42	)%		(0.78	)%
Supplemental data:
Net assets, end of period (000's)	$	1,199		$	2,003		$	4,597		$	6,733		$	14,905		$	25,790
Portfolio turnover rate		115	%		65	%		58	%		139	%		39	%		28	%

¹ Calculated using the average shares method.

UBS Dynamic Alpha Fund

Financial highlights

	Class C
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	5.71		$	5.65		$	5.21		$	9.68		$	11.26		$	10.97
Income (loss) from investment operations:
Net investment income (loss)¹		(0.01	)		0.01			(0.03	)		0.08			(0.04	)		(0.08	)
Net realized and unrealized gain (loss)		0.04			0.15			0.72			(1.81	)		(0.54	)		0.37
Net increase from payment by Advisor		—			—			—			0.00³			—			—
Total income (loss)		0.03			0.16			0.69			(1.73	)		(0.58	)		0.29
Less dividends/distributions:
From net investment income		—			(0.10	)		(0.25	)		—			—			—
From net realized gains		—			—			—			(2.74	)		(1.00	)		—
Total dividends/distributions		—			(0.10	)		(0.25	)		(2.74	)		(1.00	)		—
Net asset value, end of period	$	5.74		$	5.71		$	5.65		$	5.21		$	9.68		$	11.26
Total investment return²		0.53	%		2.82	%		13.15	%		(14.98	)%⁴		(5.62	)%		2.64	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		2.54	%⁵		2.55	%		2.50	%		2.32	%		1.97	%		1.93	%
Expenses after fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		2.44	%⁵		2.51	%		2.47	%		2.32	%		1.97	%		1.93	%
Expenses after fee waivers and/or expense reimbursement and before dividend expense and security loan fees for securities sold short		2.10	%⁵		2.10	%		2.10	%		2.07	%		1.97	%		1.93	%
Net investment income (loss)		(0.37	)%⁵		0.20	%		(0.44	)%		1.24	%		(0.41	)%		(0.72	)%
Supplemental data:
Net assets, end of period (000's)	$	54,683		$	66,349		$	104,146		$	131,745		$	317,450		$	579,916
Portfolio turnover rate		115	%		65	%		58	%		139	%		39	%		28	%
	Class Y
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	6.09		$	6.03		$	5.54		$	9.96		$	11.48		$	11.07
Income (loss) from investment operations:
Net investment income (loss)¹		0.02			0.08			0.03			0.17			0.08			0.05
Net realized and unrealized gain (loss)		0.04			0.16			0.78			(1.85	)		(0.56	)		0.36
Net increase from payment by Advisor		—			—			—			0.00³			—			—
Total income (loss)		0.06			0.24			0.81			(1.68	)		(0.48	)		0.41
Less dividends/distributions:
From net investment income		—			(0.18	)		(0.32	)		—			(0.04	)		(0.00	)³
From net realized gains		—			—			—			(2.74	)		(1.00	)		—
Total dividends/distributions		—			(0.18	)		(0.32	)		(2.74	)		(1.04	)		(0.00	)³
Net asset value, end of period	$	6.15		$	6.09		$	6.03		$	5.54		$	9.96		$	11.48
Total investment return²		0.99	%		3.89	%		14.49	%		(13.99	)%⁴		(4.64	)%		3.80	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		1.44	%⁵		1.49	%		1.42	%		1.22	%		0.91	%		0.89	%
Expenses after fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		1.44	%⁵		1.49	%		1.42	%		1.22	%		0.91	%		0.89	%
Expenses after fee waivers and/or expense reimbursement and before dividend expense and security loan fees for securities sold short		1.10	%⁵		1.07	%		1.04	%		1.00	%		0.91	%		0.89	%
Net investment income (loss)		0.55	%⁵		1.25	%		0.56	%		2.23	%		0.69	%		0.40	%
Supplemental data:
Net assets, end of period (000's)	$	46,794		$	87,743		$	83,561		$	77,254		$	320,839		$	478,785
Portfolio turnover rate		115	%		65	%		58	%		139	%		39	%		28	%

³ Amount represents less than $0.005 per share.

⁴ During the fiscal year ended June 30, 2009, the Fund's total investment return included a reimbursement by the Investment Advisor for amounts related to a trading error that had an impact on the total return of less than 0.005%.

⁵ Annualized

See accompanying notes to financial statements.
53

UBS Global Allocation Fund

Financial highlights

The table below sets forth data for one share of beneficial interest outstanding throughout each period presented.

	Class A
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	10.27		$	8.66		$	8.18		$	12.59		$	14.81		$	13.86
Income (loss) from investment operations:
Net investment income (loss)¹		(0.01	)		0.00³			0.00³			0.08			0.17			0.19
Net realized and unrealized gain (loss)		(1.05	)		2.05			1.11			(3.08	)		(1.34	)		1.83
Total income (loss)		(1.06	)		2.05			1.11			(3.00	)		(1.17	)		2.02
Less dividends/distributions:
From net investment income		(0.43	)		(0.44	)		(0.63	)		(0.46	)		(0.23	)		(0.27	)
From net realized gains		—			—			—			(0.95	)		(0.82	)		(0.80	)
Total dividends/distributions		(0.43	)		(0.44	)		(0.63	)		(1.41	)		(1.05	)		(1.07	)
Net asset value, end of period	$	8.78		$	10.27		$	8.66		$	8.18		$	12.59		$	14.81
Total investment return²		(10.30	)%		23.87	%		13.11	%		(22.36	)%		(8.43	)%		14.93	%
Ratios to average net assets:
Expenses		1.25	%⁴		1.21	%		1.21	%		1.19	%		1.09	%		1.13	%
Net investment income (loss)		(0.12	)%⁴		0.05	%		0.01	%		0.84	%		1.19	%		1.28	%
Supplemental data:
Net assets, end of period (000's)	$	568,418		$	753,750		$	814,760		$	996,059		$	2,396,937		$	3,094,036
Portfolio turnover rate		51	%		68	%		90	%		122	%		83	%		74	%
	Class B
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	10.28		$	8.56		$	8.00		$	12.35		$	14.52		$	13.60
Income (loss) from investment operations:
Net investment income (loss)¹		(0.05	)		(0.08	)		(0.08	)		0.00³			0.05			0.07
Net realized and unrealized gain (loss)		(1.05	)		2.03			1.08			(3.01	)		(1.31	)		1.79
Total income (loss)		(1.10	)		1.95			1.00			(3.01	)		(1.26	)		1.86
Less dividends/distributions:
From net investment income		(0.16	)		(0.23	)		(0.44	)		(0.39	)		(0.09	)		(0.14	)
From net realized gains		—			—			—			(0.95	)		(0.82	)		(0.80	)
Total dividends/distributions		(0.16	)		(0.23	)		(0.44	)		(1.34	)		(0.91	)		(0.94	)
Net asset value, end of period	$	9.02		$	10.28		$	8.56		$	8.00		$	12.35		$	14.52
Total investment return²		(10.68	)%		22.86	%		12.14	%		(22.98	)%		(9.14	)%		13.96	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.22	%⁴		2.07	%		2.09	%		2.02	%		1.91	%		1.93	%
Expenses after fee waivers and/or expense reimbursement		2.10	%⁴		2.07	%		2.09	%		2.02	%		1.91	%		1.93	%
Net investment income (loss)		(0.97	)%⁴		(0.86	)%		(0.90	)%		0.01	%		0.36	%		0.48	%
Supplemental data:
Net assets, end of period (000's)	$	3,957		$	7,484		$	15,190		$	33,685		$	90,258		$	139,061
Portfolio turnover rate		51	%		68	%		90	%		122	%		83	%		74	%

¹ Calculated using the average shares method.

UBS Global Allocation Fund

Financial highlights

	Class C
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	10.00		$	8.42		$	7.96		$	12.29		$	14.48		$	13.58
Income (loss) from investment operations:
Net investment income (loss)¹		(0.04	)		(0.07	)		(0.07	)		0.00³			0.05			0.07
Net realized and unrealized gain (loss)		(1.03	)		1.99			1.07			(2.99	)		(1.30	)		1.79
Total income (loss)		(1.07	)		1.92			1.00			(2.99	)		(1.25	)		1.86
Less dividends/distributions:
From net investment income		(0.33	)		(0.34	)		(0.54	)		(0.39	)		(0.12	)		(0.16	)
From net realized gains		—			—			—			(0.95	)		(0.82	)		(0.80	)
Total dividends/distributions		(0.33	)		(0.34	)		(0.54	)		(1.34	)		(0.94	)		(0.96	)
Net asset value, end of period	$	8.60		$	10.00		$	8.42		$	7.96		$	12.29		$	14.48
Total investment return²		(10.67	)%		22.90	%		12.29	%		(22.93	)%		(9.15	)%		14.02	%
Ratios to average net assets:
Expenses		2.03	%⁴		1.99	%		2.00	%		1.97	%		1.89	%		1.90	%
Net investment income (loss)		(0.91	)%⁴		(0.73	)%		(0.78	)%		0.06	%		0.40	%		0.51	%
Supplemental data:
Net assets, end of period (000's)	$	262,719		$	348,721		$	381,137		$	456,577		$	985,156		$	1,274,539
Portfolio turnover rate		51	%		68	%		90	%		122	%		83	%		74	%
	Class Y
	Six months ended December 31, 2011			Year ended June 30,
	(unaudited)			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	10.48		$	8.84		$	8.34		$	12.80		$	15.04		$	14.06
Income (loss) from investment operations:
Net investment income (loss)¹		0.01			0.04			0.03			0.10			0.21			0.23
Net realized and unrealized gain (loss)		(1.08	)		2.07			1.14			(3.13	)		(1.37	)		1.85
Total income (loss)		(1.07	)		2.11			1.17			(3.03	)		(1.16	)		2.08
Less dividends/distributions:
From net investment income		(0.46	)		(0.47	)		(0.67	)		(0.48	)		(0.26	)		(0.30	)
From net realized gains		—			—			—			(0.95	)		(0.82	)		(0.80	)
Total dividends/distributions		(0.46	)		(0.47	)		(0.67	)		(1.43	)		(1.08	)		(1.10	)
Net asset value, end of period	$	8.95		$	10.48		$	8.84		$	8.34		$	12.80		$	15.04
Total investment return²		(10.11	)%		24.15	%		13.54	%		(22.12	)%		(8.20	)%		15.18	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		0.95	%⁴		0.92	%		0.93	%		0.90	%		0.82	%		0.88	%
Expenses after fee waivers and/or expense reimbursement		0.95	%⁴		0.92	%		0.93	%		0.90	%		0.82	%		0.88	%
Net investment income (loss)		0.18	%⁴		0.35	%		0.29	%		1.14	%		1.46	%		1.53	%
Supplemental data:
Net assets, end of period (000's)	$	134,545		$	179,875		$	170,517		$	224,281		$	477,603		$	648,479
Portfolio turnover rate		51	%		68	%		90	%		122	%		83	%		74	%

³ Amount represents less than $0.005 per share.

⁴ Annualized.

See accompanying notes to financial statements.
55

UBS Global Frontier Fund

Financial highlights

The table below sets forth data for one share of beneficial interest outstanding throughout each period presented.

	Class A
	Six months ended December 31, 2011			Year ended June 30,									For the period ended
	(unaudited)			2011			2010			2009			June 30, 2008³
Net asset value, beginning of period	$	8.36		$	6.32		$	5.59		$	8.75		$	10.00
Income (loss) from investment operations:
Net investment loss¹		(0.03	)		(0.09	)		(0.07	)		(0.06	)		(0.05	)
Net realized and unrealized gain (loss)		(1.24	)		2.38			1.12			(2.98	)		(1.10	)
Total income (loss)		(1.27	)		2.29			1.05			(3.04	)		(1.15	)
Less dividends/distributions:
From net investment income		(0.38	)		(0.25	)		(0.32	)		(0.12	)		(0.03	)
From net realized gains		—			—			—			—			(0.07	)
Total dividends/distributions		(0.38	)		(0.25	)		(0.32	)		(0.12	)		(0.10	)
Net asset value, end of period	$	6.71		$	8.36		$	6.32		$	5.59		$	8.75
Total investment return²		(15.06	)%		36.53	%		18.30	%		(34.51	)%		(11.60	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.72	%⁵		1.64	%		1.62	%		1.66	%		1.59	%⁵
Expenses after fee waivers and/or expense reimbursement		1.40	%⁵		1.40	%		1.40	%		1.40	%		1.40	%⁵
Net investment loss		(0.72	)%⁵		(1.14	)%		(1.01	)%		(1.01	)%		(0.52	)%⁵
Supplemental data:
Net assets, end of period (000's)	$	35,604		$	50,167		$	48,479		$	48,395		$	79,572
Portfolio turnover rate		54	%		33	%		54	%		148	%		84	%

	Class Y
	Six months ended December 31, 2011			Year ended June 30,									For the period ended
	(unaudited)			2011			2010			2009			June 30, 2008³
Net asset value, beginning of period	$	8.36		$	6.32		$	5.60		$	8.77		$	10.00
Income (loss) from investment operations:
Net investment loss¹		(0.02	)		(0.07	)		(0.05	)		(0.04	)		(0.02	)
Net realized and unrealized gain (loss)		(1.23	)		2.38			1.11			(2.99	)		(1.10	)
Total income (loss)		(1.25	)		2.31			1.06			(3.03	)		(1.12	)
Less dividends/distributions:
From net investment income		(0.40	)		(0.27	)		(0.34	)		(0.14	)		(0.04	)
From net realized gains		—			—			—			—			(0.07	)
Total dividends/distributions		(0.40	)		(0.27	)		(0.34	)		(0.14	)		(0.11	)
Net asset value, end of period	$	6.71		$	8.36		$	6.32		$	5.60		$	8.77
Total investment return²		(14.89	)%		36.66	%		18.54	%		(34.30	)%		(11.33	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.48	%⁵		1.43	%		1.35	%		1.35	%		1.31	%⁵
Expenses after fee waivers and/or expense reimbursement		1.15	%⁵		1.15	%		1.15	%		1.15	%		1.15	%⁵
Net investment loss		(0.46	)%⁵		(0.87	)%		(0.72	)%		(0.73	)%		(0.26	)%⁵
Supplemental data:
Net assets, end of period (000's)	$	1,636		$	1,395		$	185		$	1,699		$	7,395
Portfolio turnover rate		54	%		33	%		54	%		148	%		84	%

¹ Calculated using the average shares method.

UBS Global Frontier Fund

Financial highlights

	Class C
	Six months ended December 31, 2011			Year ended June 30,									For the period ended
	(unaudited)			2011			2010			2009			June 30, 2008³
Net asset value, beginning of period	$	8.34		$	6.31		$	5.58		$	8.71		$	10.00
Income (loss) from investment operations:
Net investment loss¹		(0.05	)		(0.15	)		(0.12	)		(0.10	)		(0.12	)
Net realized and unrealized gain (loss)		(1.23	)		2.37			1.12			(2.96	)		(1.10	)
Total income (loss)		(1.28	)		2.22			1.00			(3.06	)		(1.22	)
Less dividends/distributions:
From net investment income		(0.35	)		(0.19	)		(0.27	)		(0.07	)		(0.00	)⁴
From net realized gains		—			—			—			—			(0.07	)
Total dividends/distributions		(0.35	)		(0.19	)		(0.27	)		(0.07	)		(0.07	)
Net asset value, end of period	$	6.71		$	8.34		$	6.31		$	5.58		$	8.71
Total investment return²		(15.29	)%		35.39	%		17.50	%		(35.03	)%		(12.22	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.50	%⁵		2.41	%		2.41	%		2.48	%		2.40	%⁵
Expenses after fee waivers and/or expense reimbursement		2.15	%⁵		2.15	%		2.15	%		2.15	%		2.15	%⁵
Net investment loss		(1.47	)%⁵		(1.89	)%		(1.76	)%		(1.76	)%		(1.27	)%⁵
Supplemental data:
Net assets, end of period (000's)	$	10,896		$	14,989		$	13,792		$	14,559		$	22,882
Portfolio turnover rate		54	%		33	%		54	%		148	%		84	%

³ For the period July 26, 2007 (commencement of operations) through June 30, 2008.

⁴ Amount represents less than $0.005 per share.

⁵ Annualized.

See accompanying notes to financial statements.
57

The UBS Funds

Notes to financial statements (unaudited)

1. Organization and significant accounting policies

The Trust has 14 Funds available for investment, each having its own investment objectives and policies. The following three funds are covered in this report: UBS Dynamic Alpha Fund, UBS Global Allocation Fund, and UBS Global Frontier 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, which is classified as "non-diversified" for purposes of the 1940 Act. Each Fund currently offers Class A, Class C and Class Y shares. For each Fund except UBS Global Frontier Fund, Class B shares are offered only to existing Class B shareholders with respect to the reinvestment of dividends and distributions and exchanges of Class B shares of the Funds for Class B shares of other series of the UBS Family of Funds. "UBS Family of Funds" include other UBS Funds, PACE Select Advisor Trust and other funds for which UBS Global Asset Management (US) Inc. ("UBS Global AM (US)") serves as principal underwriter. UBS Global Frontier Fund does not offer Class B shares. 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 after issuance which varies depending upon the amount invested. Effective on or about March 1, 2012, all outstanding Class B shares will be converted to Class A shares of the same fund. 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.

A. Valuation of investments: Each Fund calculates its net asset value based on the current market value, where available, for its portfolio securities. The Funds normally obtain market values for their securities and other instruments from independent pricing sources and broker-dealers. Independent pricing sources may use reported last sale prices, official market closing prices, current market quotations or valuations from computerized "evaluation" systems that derive values based on comparable securities or instruments. An evaluation system incorporates parameters such as security quality, maturity and coupon, and/or research and evaluations by its staff, including review of broker-dealer market price quotations, if available, in determining the valuation of the portfolio securities or instruments.

The UBS Funds

Notes to financial statements (unaudited)

Securities and other instruments also may be valued based on appraisals derived from information concerning the security or instrument or similar securities or instruments received from recognized dealers in those holdings. Securities and instruments 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 on the valuation date available prior to valuation. Securities and instruments which are listed on US and foreign stock exchanges normally are valued at the market closing price, the last sale price on the day the securities are valued or, lacking any sales on such day, at the last available bid price. In cases where securities or instruments are traded on more than one exchange, the securities or instruments are valued on the exchange designated as the primary market by UBS Global Asset Management (Americas) Inc. ("UBS Global AM" or the "Advisor"), the investment advisor 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 or instrument, that security or instrument 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 or instrument'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 or instruments; and the evaluation of forces which influence the market in which the securities or instruments are purchased and sold. Foreign currency exchange rates are generally determined as of the close of the New York Stock Exchange ("NYSE").

The UBS Funds

Notes to financial statements (unaudited)

GAAP requires disclosure regarding the various inputs that are used in determining the value of the Funds' investments. These inputs are summarized into the three broad levels listed below:

Level 1—Unadjusted quoted prices in active markets for identical investments.

Level 2—Other significant observable inputs, including but not limited to, quoted prices for similar investments, interest rates, prepayment speeds and credit risk.

Level 3—Unobservable inputs inclusive of the Funds' own assumptions in determining the fair value of investments.

A fair value hierarchy has been included near the end of each Fund's Portfolio of investments.

The UBS Funds

Notes to financial statements (unaudited)

In December 2011, FASB issued Accounting Standards Update No. 2011–11 "Disclosures about Offsetting Assets and Liabilities" ("ASU 2011–11"). These disclosure requirements are intended to help investors and other financial statement users to better assess the effect or potential effect of offsetting arrangements on a company's financial position. They also improve transparency in the reporting of how companies mitigate credit risk, including disclosure of related collateral pledged or received. In addition, ASU 2011-11 facilitates comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of IFRS. ASU 2011-11 requires entities to: disclose both gross and net information about both instruments and transactions eligible for offset in the financial statements; and disclose instruments and transactions subject to an agreement similar to a master netting agreement. ASU 2011-11 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. At this time, management is evaluating the implications of ASU 2011-11 and its impact on the Funds' financial statement disclosures.

The provisions of ASC Topic 815 "Derivatives and Hedging" ("ASC Topic 815") require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk related contingent features in derivative agreements. Since investment companies value their derivatives at fair value and recognize changes in fair value through the Statement of operations, they do not qualify for hedge accounting under ASC Topic 815. Accordingly, even though a fund's investments in derivatives may represent economic hedges, they are considered to be non-hedge transactions for purposes of disclosure under ASC Topic 815. ASC Topic 815 requires that (1) objectives for using derivative instruments be disclosed in terms of underlying risk and accounting designation, (2) the fair values of derivative instruments and their gains and losses be disclosed in a tabular format, and (3) information be disclosed about credit-risk contingent features of derivatives contracts. Details of this disclosure can be found below as well as in the Portfolio of investments. Certain derivative contracts entered into by the Funds may contain credit-risk related contingent features that could be triggered subject to certain circumstances. Such circumstances include agreed upon net asset value thresholds. If triggered, the derivative counterparty could request additional cash margin and/or terminate the derivative contract. The aggregate fair value of the derivative contracts that are in a net liability position that contain these triggers can be found in the Portfolio of investments. The aggregate fair value of assets that are already posted as collateral as of December 31, 2011 is reflected in the Statement of assets and liabilities. If the applicable credit-risk related contingent features were triggered as of December 31, 2011, the Fund would be required to post additional collateral or may be required to terminate the contract and settle any amounts outstanding. The volume of derivatives as disclosed in UBS Global Allocation Fund and UBS Global Frontier Fund's Portfolio of investments is representative of the volume of derivatives outstanding during the period ended December 31, 2011, except for forward foreign currency contracts, for which the average volume during the six month period was greater than at period end. The average volume of all derivatives as disclosed in UBS Dynamic Alpha Fund's Portfolio of investments was greater during the six month period than at period end. The Funds may be sellers of protection through credit default swap agreements which are by nature credit-risk contingent (the terms of these agreements can be found within the Portfolio of investments, with further discussion in the Notes to financial statements).

The UBS Funds

Notes to financial statements (unaudited)

Disclosure of derivatives by underlying risk for each Fund as of and for the period ended December 31, 2011 is as follows:

Asset derivatives

	Interest rate risk		Equity risk		Credit risk		Foreign exchange risk		Total
UBS Dynamic Alpha Fund
Forward contracts¹	$	—	$	—	$	—	$	2,621,192	$	2,621,192
Futures contracts²		233,345		1,399,841		—		—		1,633,186
Swap agreements¹		4,046,638		—		596,288		—		4,642,926
Total value	$	4,279,983	$	1,399,841	$	596,288	$	2,621,192	$	8,897,304

¹ Statement of assets and liabilities location: Unrealized appreciation on forward foreign currency contracts and outstanding swap agreements, at value.

Liability derivatives

	Interest rate risk			Equity risk			Credit risk			Foreign exchange risk			Total
UBS Dynamic Alpha Fund
Forward contracts¹	$	—		$	—		$	—		$	(2,269,215	)	$	(2,269,215	)
Futures contracts²		(532,311	)		(361,108	)		—			—			(893,419	)
Options written¹		—			(4,479,300	)		—			—			(4,479,300	)
Swap agreements¹		(1,197,499	)		—			(5,286,542	)		—			(6,484,041	)
Total value	$	(1,729,810	)	$	(4,840,408	)	$	(5,286,542	)	$	(2,269,215	)	$	(14,125,975	)

¹ Statement of assets and liabilities location: Unrealized depreciation on forward foreign currency contracts, outstanding swap agreements, at value and options written, at value.

The UBS Funds

Notes to financial statements (unaudited)

Activities in derivative instruments during the period ended December 31, 2011, were as follows:

	Interest rate risk			Equity risk			Credit risk			Foreign exchange risk			Total
UBS Dynamic Alpha Fund
Net realized gain (loss)¹
Forward contracts	$	—		$	—		$	—		$	6,445,060		$	6,445,060
Futures contracts		8,134,371			4,696,874			—			—			12,831,245
Options purchased³		(1,480,236	)		(12,495,425	)		—			(68,216	)		(14,043,877	)
Options written		266,853			1,259,024			298,200			68,216			1,892,293
Swap agreements		1,364,383			—			(3,586,526	)		57,424			(2,164,719	)
Total net realized gain (loss)	$	8,285,371		$	(6,539,527	)	$	(3,288,326	)	$	6,502,484		$	4,960,002
Change in net unrealized appreciation/depreciation²
Forward contracts	$	—		$	—		$	—		$	2,290,555		$	2,290,555
Futures contracts		1,128,196			7,650,133			—			—			8,778,329
Options purchased³		1,411,098			(3,604,422	)		—			68,215			(2,125,109	)
Options written		(447,020	)		1,320,323			(84,415	)		(42,963	)		745,925
Swap agreements		9,137,067			—			2,698,237			(37,954	)		11,797,350
Total change in net unrealized appreciation/depreciation	$	11,229,341		$	5,366,034		$	2,613,822		$	2,277,853		$	21,487,050

¹ Statement of operations location: Net realized gain (loss) on futures contracts, options written, swap agreements and forward foreign currency contracts.

² Statement of operations location: Change in net unrealized appreciation/depreciation on futures contracts, options written, swap agreements and forward foreign currency contracts.

³ Realized and unrealized gain (loss) is included in net realized gain (loss) on investments and change in net unrealized appreciation/depreciation on investments.

Asset derivatives

	Equity risk		Foreign exchange risk		Total
UBS Global Allocation Fund
Forward contracts¹	$	—	$	4,696,706	$	4,696,706
Futures contracts²		327,545		—		327,545
Total value	$	327,545	$	4,696,706	$	5,024,251

¹ Statement of assets and liabilities location: Unrealized appreciation on forward foreign currency contracts.

Liability derivatives

	Equity risk			Foreign exchange risk			Total
UBS Global Allocation Fund
Forward contracts¹	$	—		$	(2,725,564	)	$	(2,725,564	)
Futures contracts²		(516,779	)		—			(516,779	)
Total value	$	(516,779	)	$	(2,725,564	)	$	(3,242,343	)

¹ Statement of assets and liabilities location: Unrealized depreciation on forward foreign currency contracts.

The UBS Funds

Notes to financial statements (unaudited)

Activities in derivative instruments during the period ended December 31, 2011, were as follows:

	Interest rate risk		Equity risk			Foreign exchange risk		Total
UBS Global Allocation Fund
Net realized gain (loss)¹
Forward contracts	$	—	$	—		$	2,995,648	$	2,995,648
Futures contracts		8,336,843		(9,341,476	)		—		(1,004,633	)
Total net realized gain (loss)	$	8,336,843	$	(9,341,476	)	$	2,995,648	$	1,991,015
Change in net unrealized appreciation/depreciation²
Forward contracts	$	—	$	—		$	2,273,697	$	2,273,697
Futures contracts		122,936		790,165			—		913,101
Total change in net unrealized appreciation/depreciation	$	122,936	$	790,165		$	2,273,697	$	3,186,798

¹ Statement of operations location: Net realized gain (loss) on futures contracts and forward foreign currency contracts.

² Statement of operations location: Change in net unrealized appreciation/depreciation on futures contracts and forward foreign currency contracts.

Asset derivatives

	Interest rate risk		Equity risk		Foreign exchange risk		Total
UBS Global Frontier Fund
Forward contracts¹	$	—	$	—	$	316,151	$	316,151
Futures contracts²		50,982		98,714		—		149,696
Total value	$	50,982	$	98,714	$	316,151	$	465,847

¹ Statement of assets and liabilities location: Unrealized appreciation on forward foreign currency contracts.

Liability derivatives

	Equity risk			Foreign exchange risk			Total
UBS Global Frontier Fund
Forward contracts¹	$	—		$	(232,237	)	$	(232,237	)
Futures contracts²		(114,322	)		—			(114,322	)
Total value	$	(114,322	)	$	(232,237	)	$	(346,559	)

¹ Statement of assets and liabilities location: Unrealized depreciation on forward foreign currency contracts.

The UBS Funds

Notes to financial statements (unaudited)

Activities in derivative instruments during the period ended December 31, 2011, were as follows:

	Interest rate risk		Equity risk			Foreign exchange risk			Total
UBS Global Frontier Fund
Net realized gain (loss)¹
Forward contracts	$	—	$	—		$	(58,821	)	$	(58,821	)
Futures contracts		205,596		(2,874,988	)		—			(2,669,392	)
Total net realized gain (loss)	$	205,596	$	(2,874,988	)	$	(58,821	)	$	(2,728,213	)
Change in net unrealized appreciation/depreciation²
Forward contracts	$	—	$	—		$	62,300		$	62,300
Futures contracts		50,982		(849,970	)		—			(798,988	)
Total change in net unrealized appreciation/depreciation	$	50,982	$	(849,970	)	$	62,300		$	(736,688	)

¹ Statement of operations location: Net realized gain (loss) on futures contracts and forward foreign currency contracts.

² Statement of operations location: Change in net unrealized appreciation/depreciation on futures contracts, and forward foreign currency contracts.

C. Investment transactions, investment income and expenses: Investment transactions are recorded on the trade date. Realized gains and losses from investment and foreign exchange transactions are calculated using the identified cost method. Dividend income and expense are recorded on the ex-dividend date ("ex-date") except in the case of certain dividends for 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.

The UBS Funds

Notes to financial statements (unaudited)

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.

F. Futures contracts: Each Fund may purchase or sell financial futures contracts. The Funds may purchase or sell futures contracts to increase or reduce their exposure to an asset class without purchasing or selling the underlying securities, either as a hedge or to enhance income or gains. Using financial futures contracts involves various market risks, including interest rate and equity risk. 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. To the extent that market prices move in an unexpected direction, there is a risk that a Fund will not achieve the anticipated benefits of the futures contract or may realize a loss.

The UBS Funds

Notes to financial statements (unaudited)

Funds' records 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.

The UBS Funds

Notes to financial statements (unaudited)

agreement. Notional amounts of all credit default swap agreements outstanding as of December 31, 2011 for which a Fund is the seller of protection are disclosed under the section "Credit default swaps on credit indices—sell protection" and "Credit default swaps on corporate and sovereign issues—sell protection" in the Notes to Portfolio of investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into, if any, by a Fund for the same referenced entity or entities.

The UBS Funds

Notes to financial statements (unaudited)

the Statement of assets and liabilities as an investment and subsequently marked-to-market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying futures, security or currency transaction to determine the realized gain or loss.

K. Short sales: UBS Dynamic Alpha Fund may enter 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 the Fund shorts a security while 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. The Fund will realize a gain or loss upon closing of the short sale (returning the security to the lender by way of purchase or delivery of a long position owned). The Fund is liable to the lender for any dividends payable on securities while those securities are in a short position. These dividends are booked as an expense or liability of the Fund. The Fund segregates collateral consisting of cash, US government securities or other liquid assets sufficient to collateralize the market value of short positions. The Fund is charged a securities loan fee in connection with short sale transactions.

L. Dividends and distributions: It is the Funds' policy to distribute their respective net investment income and net capital gains, if any, annually. Dividends and distributions to shareholders are recorded on the ex-distribution date. The amount of dividends from net investment income and distributions from net realized capital gains and/or return of capital is determined in accordance with US federal income tax regulations, which may differ from GAAP. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require reclassification.

N. Commission recapture program: The Funds participate in a brokerage commission recapture program. The 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. For the period ended December 31, 2011, UBS Global Allocation Fund recorded $28,801 recaptured commissions which are reflected on the Statement of operations within the net realized gains (losses) on investments in unaffiliated issuers.

O. Redemption fees: 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. This amount is paid to the applicable Fund, not the Advisor or UBS Global AM (US). The redemption fees retained by the Funds are disclosed in the Statement of changes in net assets.

The UBS Funds

Notes to financial statements (unaudited)

2. Investment advisory fees and other transactions with affiliates

Fund	$0 to $500 mm			$500 mm to $1.0 billion			$1.0 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 Global Allocation Fund		0.800	%		0.750	%		0.700	%		0.675	%		0.650	%		0.630	%		0.610	%
UBS Global Frontier Fund		0.950			0.950			0.950			0.950			0.950			0.950			0.950

				$0 to $500 mm				$500 mm to $1.0 billion				$1.0 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	%

For UBS Global Allocation Fund, the Advisor has agreed to waive its fees and/or reimburse expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) to the extent necessary so that the Fund's operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) do not exceed the expense limit of each class of shares as indicated in the following table. For UBS Dynamic Alpha Fund and UBS Global Frontier Fund, the Advisor has agreed to waive its fees and/or reimburse expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and securities loan fees for securities sold short) to the extent necessary so that the Fund's operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, extraordinary expenses and dividend expense and securities loan fees for securities sold short) do not exceed the expense limit of each class of shares as indicated in the following table. Investment advisory fees, including the dollar amount waived or reimbursed for the period ended December 31, 2011, 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	%	$	1,331,293	$	99,593
UBS Global Allocation Fund		1.35			2.10			2.10			1.10			4,241,951		3,145
UBS Global Frontier Fund		1.40			N/A¹			2.15			1.15			262,225		90,505

¹ UBS Global Frontier Fund does not offer Class B shares.

The UBS Funds

Notes to financial statements (unaudited)

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, 2012		Expires June 30, 2013		Expires June 30, 2014		Expires June 30, 2015
UBS Dynamic Alpha Fund—Class A	$	196,161	$	—	$	51,127	$	76,312	$	68,722
UBS Dynamic Alpha Fund—Class B		15,765		2,654		6,334		4,458		2,319
UBS Dynamic Alpha Fund—Class C		102,398		—		35,483		38,363		28,552
UBS Global Allocation Fund—Class B		3,145		—		—		—		3,145
UBS Global Frontier Fund—Class A		447,910		137,121		118,867		126,291		65,631
UBS Global Frontier Fund—Class C		154,526		50,614		41,974		39,777		22,161
UBS Global Frontier Fund—Class Y		12,226		5,653		1,545		2,315		2,713

Fund	Administrative fees owed		Administrative fees incurred
UBS Dynamic Alpha Fund	$	17,970	$	117,303
UBS Global Allocation Fund		63,319		413,243
UBS Global Frontier Fund		3,139		20,656

Under normal conditions, the Funds invest cash collateral from securities lending activities into an affiliated private money market fund, UBS Private Money Market Fund LLC ("Private Money Market"), which operates in compliance with most of the substantive provisions of Rule 2a-7 of the 1940 Act. Private Money Market 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. UBS Global AM acts as managing member and receives a management fee from Private Money Market payable monthly in arrears at the annual rate of 0.10% of Private Money Market's average daily members' equity, minus the aggregate operating expenses of, and incurred by, Private Money Market during each such related month, not including investment expenses (including brokerage commissions, taxes, interest charges and other costs with respect to transactions in securities) and extraordinary expenses including litigation expenses, if any. The Advisor may, in its sole discretion, waive all or any portion of the management fee to which it may be entitled from time to time in order to maintain operating expenses at a certain level. Distributions received from Private Money Market, net of fee rebates paid to borrowers, are included in securities lending income in the Statement of operations.

The UBS Funds

Notes to financial statements (unaudited)

The following Funds have incurred brokerage commissions with UBS AG, an affiliated broker-dealer. Amounts relating to those transactions for the period ended December 31, 2011, were as follows:

Fund				UBS AG
UBS Dynamic Alpha Fund				$	30,657

3. Service and distribution plans

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 Frontier Fund		0.25			N/A*			1.00

* UBS Global Frontier Fund does not offer Class B shares.

Fund	Service and distribution fees owed		Sales charges earned
UBS Dynamic Alpha Fund—Class A	$	38,102	$	5,160
UBS Dynamic Alpha Fund—Class B		1,054		1,607
UBS Dynamic Alpha Fund—Class C		48,046		531
UBS Global Allocation Fund—Class A		125,332		39,061
UBS Global Allocation Fund—Class B		3,449		9,029
UBS Global Allocation Fund—Class C		229,568		1,858
UBS Global Frontier Fund—Class A		7,760		3,787
UBS Global Frontier Fund—Class C		9,577		468

4. Transfer agency and related services fees

UBS Financial Services Inc. provides certain services pursuant to a delegation of authority from BNY Mellon Investment Servicing ("BNY Mellon") as each Fund's transfer agent, and is compensated for these services by BNY Mellon, not the Funds.

The UBS Funds

Notes to financial statements (unaudited)

For the period ended December 31, 2011, UBS Financial Services Inc. received from BNY Mellon, not the Funds, total fees as follows:

Fund	Amount paid
UBS Dynamic Alpha Fund	$	60,392
UBS Global Allocation Fund		157,637
UBS Global Frontier Fund		6,846

5. Securities lending

UBS Dynamic Alpha Fund, UBS Global Allocation Fund and UBS Global Frontier Fund loaned securities to certain qualified broker-dealers, with the Funds' custodian acting as the Funds' lending agent. Cash collateral received is invested in Private Money Market, which is included in the Fund's Portfolio of investments. In addition, UBS Global Allocation Fund and UBS Global Frontier Fund received US Government Agency securities as collateral amounting to $7,059,046 and $40,931, respectively, which cannot be resold. The value of loaned securities and related collateral outstanding at December 31, 2011, were as follows:

Fund	Market value of securities loaned		Market value of collateral received from securities loaned		Market value of investments of cash collateral received
UBS Dynamic Alpha Fund	$	1,460,425	$	1,487,143	$	1,487,143
UBS Global Allocation Fund		21,031,454		21,517,971		14,458,925
UBS Global Frontier Fund		80,910		82,376		41,445

6. Purchases and sales of securities

For the period ended December 31, 2011, aggregate purchases and sales of portfolio securities, excluding short-term investments and US Government and agency securities, were as follows:

Fund	Purchases		Sales proceeds
UBS Dynamic Alpha Fund	$	340,112,608	$	360,023,973
UBS Global Allocation Fund		407,800,771		580,898,521
UBS Global Frontier Fund		25,567,509		35,788,970

The UBS Funds

Notes to financial statements (unaudited)

For the period ended December 31, 2011, aggregate purchases and sales of US Government and agency securities, excluding short-term investments, were as follows:

Fund	Purchases		Sales proceeds
UBS Dynamic Alpha Fund	$	9,240,967	$	11,000,818
UBS Global Allocation Fund		122,163,742		150,862,199
UBS Global Frontier Fund		2,081,440		2,354,084

7. Federal income taxes

The tax character of distributions paid during the fiscal year ended June 30, 2011 were as follows:

	2011
Fund	Distributions paid from ordinary income
UBS Dynamic Alpha Fund	$	11,753,976
UBS Global Allocation Fund		57,555,121
UBS Global Frontier Fund		2,067,769

At June 30, 2011, the following Funds had net capital loss carryforwards for federal income tax purposes available to offset future capital gains through the indicated expiration dates:

Fund	June 30, 2017		June 30, 2018		June 30, 2019
UBS Dynamic Alpha Fund	$	145,211,340	$	202,927,795	$	46,428,719
UBS Global Allocation Fund		278,395,017		862,762,158		—
UBS Global Frontier Fund		12,841,328		9,543,610		3,241,353

Fund				Net capital losses				Net currency losses
UBS Dynamic Alpha Fund				$	4,902,321			$	3,282,847

The UBS Funds

Notes to financial statements (unaudited)

Each of the tax years in the four year period ended June 30, 2011, remains subject to examination by the Internal Revenue Service and state taxing authorities.

8. Line of credit

The Trust has entered into an agreement with JPMorgan Chase Bank to provide a $50 million committed line of credit to the Funds ("Committed Credit Facility") to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of each Fund at the request of shareholders and other temporary or emergency purposes. Interest on amounts borrowed is calculated based on the prevailing rates in effect at the time of borrowing. 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. There were no borrowings from the Committed Credit Facility during the period ended December 31, 2011.

9. Shares of beneficial interest

For the period ended December 31, 2011, 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		677,761		$	4,069,548			—		$	—
Shares repurchased		(7,757,392	)		(46,863,800	)		(54,001	)		(311,001	)
Shares converted from Class B to Class A		83,934			507,687			(88,142	)		(507,687	)
Redemption fees		—			3,413			—			—
Net decrease		(6,995,697	)	$	(42,283,152	)		(142,143	)	$	(818,688	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		76,188		$	436,536			87,070		$	534,376
Shares repurchased		(2,177,507	)		(12,520,594	)		(6,900,425	)		(42,089,846	)
Redemption fees		—			415			—			107
Net decrease		(2,101,319	)	$	(12,083,643	)		(6,813,355	)	$	(41,555,363	)

The UBS Funds

Notes to financial statements (unaudited)

UBS Global Allocation Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		680,968		$	6,386,956			—		$	—
Shares repurchased		(12,330,821	)		(114,975,488	)		(116,219	)		(1,111,334	)
Shares converted from Class B to Class A		180,110			1,728,485			(180,375	)		(1,728,485	)
Dividends reinvested		2,830,572			24,512,757			7,318			65,060
Redemption fees		—			7,631			—			—
Net decrease		(8,639,171	)	$	(82,339,659	)		(289,276	)	$	(2,774,759	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		167,902		$	1,515,614			165,068		$	1,585,078
Shares repurchased		(5,565,380	)		(50,872,623	)		(2,964,703	)		(29,206,260	)
Dividends reinvested		1,072,315			9,093,234			681,741			6,012,956
Redemption fees		—			877			—			1,279
Net decrease		(4,325,163	)	$	(40,262,898	)		(2,117,894	)	$	(21,606,947	)

UBS Global Frontier Fund

	Class A						Class C						Class Y
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		118,836		$	884,905			52,662		$	376,017			103,975		$	766,903
Shares repurchased		(1,101,000	)		(8,073,468	)		(305,879	)		(2,175,911	)		(42,928	)		(284,845	)
Dividends reinvested		280,785			1,850,374			79,699			525,217			15,800			103,964
Redemption fees		—			225			—			587			—			21
Net increase (decrease)		(701,379	)	$	(5,337,964	)		(173,518	)	$	(1,274,090	)		76,847		$	586,043

For the year ended June 30, 2011, 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		3,877,616		$	23,735,661			1,842		$	10,987
Shares repurchased		(25,525,034	)		(156,780,166	)		(202,120	)		(1,184,499	)
Shares converted from Class B to Class A		262,643			1,628,864			(274,367	)		(1,628,864	)
Dividends reinvested		1,128,708			6,941,554			12,288			72,375
Redemption fees		—			12,034			—			—
Net decrease		(20,256,067	)	$	(124,462,053	)		(462,357	)	$	(2,730,001	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		248,263		$	1,456,605			1,974,534		$	12,124,718
Shares repurchased		(7,303,153	)		(42,802,216	)		(1,838,567	)		(11,441,000	)
Dividends reinvested		244,384			1,439,424			418,358			2,610,554
Redemption fees		—			561			—			609
Net increase (decrease)		(6,810,506	)	$	(39,905,626	)		554,325		$	3,294,881

The UBS Funds

Notes to financial statements (unaudited)

UBS Global Allocation Fund

	Class A						Class B
	Shares			Amount			Shares			Amount
Shares sold		5,496,418		$	54,196,160			6,667		$	66,091
Shares repurchased		(30,247,628	)		(299,917,346	)		(359,847	)		(3,473,824	)
Shares converted from Class B to Class A		714,938			7,085,487			(719,244	)		(7,085,487	)
Dividends reinvested		3,337,041			32,702,995			25,649			252,385
Redemption fees		—			19,046			—			—
Net decrease		(20,699,231	)	$	(205,913,658	)		(1,046,775	)	$	(10,240,835	)

	Class C						Class Y
	Shares			Amount			Shares			Amount
Shares sold		680,165		$	6,577,919			936,573		$	9,557,356
Shares repurchased		(12,339,415	)		(118,547,892	)		(3,881,538	)		(38,476,049	)
Dividends reinvested		1,301,168			12,452,180			803,980			8,023,720
Redemption fees		—			3,791			—			2,467
Net decrease		(10,358,082	)	$	(99,514,002	)		(2,140,985	)	$	(20,892,506	)

UBS Global Frontier Fund

	Class A						Class C						Class Y
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		1,148,039		$	9,053,928			128,727		$	1,018,619			138,711		$	1,073,192
Shares repurchased		(3,015,895	)		(23,741,744	)		(563,344	)		(4,351,462	)		(4,765	)		(37,862	)
Dividends reinvested		199,143			1,539,376			44,976			348,115			3,662			28,269
Redemption fees		—			5,441			—			1,645			—			40
Net increase (decrease)		(1,668,713	)	$	(13,142,999	)		(389,641	)	$	(2,983,083	)		137,608		$	1,063,639

The UBS Funds

General information (unaudited)

Quarterly Form N-Q portfolio schedule

Proxy voting policies, procedures and record

PRESORTED
STANDARD
U.S. POSTAGE
PAID
COMPUTERSHARE

UBS Global Asset Management (Americas) Inc.

1285 Avenue of the Americas
New York, NY 10019

S1172

Item 2. Code of Ethics.

Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report.

Item 3. Audit Committee Financial Expert.

Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report.

Item 4. Principal Accountant Fees and Services.

Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report.

Item 5. Audit Committee of Listed Registrants.

Not applicable to the registrant.

Item 6. Schedule of Investments.

(a) Included as part of the report to shareholders filed under Item 1 of this form.

(b) Not applicable.

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 Trust’s outstanding shares and (ii) has been a shareholder of at least 1/2 of 1% of the Trust’s 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, Ms. Adela Cepeda, care of Mark Kemper, Secretary of The UBS Funds, at UBS Global Asset Management, One North Wacker Drive, Chicago, Illinois 60606, and indicate on the envelope “Nominating Committee.” The Qualifying Fund Shareholder’s letter should include: (i) the name and address 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 nominee’s resume or curriculum vitae. The Qualifying Fund Shareholder’s 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 registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a) (1) Code of Ethics — Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report.

(a) (2) Certifications of principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 is attached hereto as Exhibit EX-99.CERT.

(a) (3) Written solicitation to purchase securities under Rule 23c-1 under the Investment Company Act of 1940 sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons — not applicable to the registrant.

(b) Certifications of principal executive officer and principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is attached hereto as Exhibit EX-99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

The UBS Funds

By:	/s/ Mark E. Carver
	Mark E. Carver
	President

Date:	March 09, 2012

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/ Mark E. Carver
	Mark E. Carver
	President

Date:	March 09, 2012

By:	/s/ Thomas Disbrow
	Thomas Disbrow
	Vice President and Treasurer

Date:	March 09, 2012