N-CSRS 1 a16-2908_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)

Tammie Lee, Esq. UBS 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, 2015

Item 1. Reports to Stockholders.

UBS Funds

December 31, 2015

The UBS Funds

Semiannual Report

Table of contents
President's letter					1
Market commentary					3
UBS Funds
UBS Dynamic Alpha Fund					5
UBS Global Allocation Fund					24
UBS Asset Growth Fund					37
UBS International Sustainable Equity Fund (formerly, UBS Global Sustainable Equity Fund)					43
UBS U.S. Large Cap Equity Fund					51
UBS U.S. Small Cap Growth Fund					59
UBS U.S. Equity Opportunity Fund					67
UBS Fixed Income Opportunities Fund					75
UBS Core Plus Bond Fund					92
UBS Municipal Bond Fund					109
Explanation of expense disclosure					118
Statement of assets and liabilities					124
Statement of operations					132
Statement of changes in net assets					136
Financial highlights					142
Notes to financial statements					161

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President's letter

February 12, 2016

Dear Shareholder,

In my last correspondence, I wrote about some of the problems challenging the global recovery. In recent months, the slowing of the Chinese economy has taken center stage, commodity prices have continued to decline and global markets remain volatile. In this letter, I would like to take a closer look at some of the changes happening in the global markets—a China in transition, our high hopes for the Eurozone and concerns about Japan, and the relative strength of the US economy—and their subsequent impact on the investment landscape.

In 2015, signs that China could be slowing faster than anticipated gave investors heightened concern. The slowing of China's economy comes as President Xi Jinping seeks to transition the country from a reliance on exports to a more balanced consumption-oriented economy, and from an economy dominated by state-sponsored firms to one that is increasingly driven by the free market. The slowdown put pressure on the prospects of commodity-producing economies such as Brazil and Russia. For years, commodity-producing countries thrived by providing the natural resources—iron ore, copper, aluminum, coal and oil—that powered China's economic boom. Many of these economies are now contracting as a result of China's transition from a manufacturing to a consumption-led economic growth model.

The Eurozone and Japanese equity markets have seen relatively strong performance in the past year, with riskier assets in both being supported by fairly similar conditions—continued monetary easing, currency weakness providing a boost to exporters, as well as the low price of oil, which has left consumers with more disposable income. On the economic front, however, there are tentative signs of divergence: Eurozone economic growth in the coming quarters could surprise on the upside, while Japan's growth prospects look likely to remain broadly stagnant. While there have been no major changes in the fortunes of either economy, investor sentiment on the Eurozone is likely to have taken a turn for the better due to clearer signs of improvement in underlying fundamentals. In particular, the convergence in economic conditions between the peripheral and core Eurozone countries represents a positive trend that has recently strengthened. The influx of migrants to the currency bloc—while bringing with it new risks—also has the potential to boost GDP, if new workers can be successfully integrated into the Eurozone labor force.

Turning to the United States, in December the Federal Reserve (the "Fed") raised interest rates for the first time in almost 10 years. The market widely expected the increase, so the focus was on the language of the announcement and the projections for future rate increases. Both of these were more dovish than expected, with the Fed using the term "gradual" to describe the likely path of monetary policy. This tightening of monetary policy is a positive move since it signals the Fed's confidence in the domestic economic recovery. The effects of the Fed tightening will also reverberate through the global economy and financial markets. Emerging markets economies are likely to be negatively impacted, particularly those with US dollar-denominated debt loads that stand to become more expensive to finance as their currencies depreciate against a strengthening US dollar.

While many changes are impacting the global economy—and much of the news flow over the past few months has struck a negative tone—you can be confident that as a shareholder of a UBS Fund with UBS Asset Management, our team of investment professionals around the world is constantly monitoring changes in the investment landscape to seek to produce successful long-term outcomes for you. As changes in the global markets continue to evolve, we believe it benefits investors to work with a knowledgeable and trusted partner. At UBS

President's letter

Asset Management, we embrace the responsibility of helping our clients meet their financial objectives and thank you for your continued trust in our skill and commitment to serve you.

Sincerely,

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

The markets in review

Generally moderate global growth

The US economy continued to expand, but the pace was uneven during the six months ended December 31, 2015. The US Commerce Department reported that gross domestic product ("GDP") expanded at a 3.9% seasonally adjusted annualized rate during the second quarter of 2015. GDP growth then slowed to a 2.0% rate for the third quarter of the year. Finally, the Commerce Department's initial estimate for fourth-quarter GDP growth was 0.7%.¹

The US Federal Reserve Board (the "Fed") took its initial step toward normalizing monetary policy during the reporting period. In December 2015, the Fed raised the fed funds rates for the first time in nearly a decade. The US central bank boosted the fed funds rate from a range of 0% to 0.25% to a range between 0.25% and 0.50%.² In its official statement the Fed said, "The stance of monetary policy remains accommodative after this increase, thereby supporting further improvement in labor market conditions and a return to 2% inflation...The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run."

Growth outside the US was mixed during the reporting period. In its January 2016 World Economic Outlook Update—released after the reporting period had ended—the International Monetary Fund ("IMF") said, "In advanced economies, a modest and uneven recovery is expected to continue, with a gradual further narrowing of output gaps. The picture for emerging market and developing economies is diverse but in many cases challenging." From a regional perspective, the IMF estimated that 2015 growth in the eurozone was 1.5%, versus 0.9% in 2014. Japan's economy was believed to have expanded 0.6% in 2015, versus 0.0% in 2014. Elsewhere, the IMF estimated that overall growth in emerging market countries moderated in 2015, with growth of 4.0% versus 4.6% in 2014.

Global equities post overall weak results

The global equity market experienced several periods of heightened volatility during the reporting period. Investor sentiment fluctuated given mixed economic data and corporate earnings reports, uncertainties regarding future monetary policy and numerous geopolitical issues. Risk aversion peaked during the third quarter of 2015, as the global equity market experienced its first correction (a decline of at least 10%) since 2011. The market then rallied sharply in October 2015, but ended the year on a weak note. All told, the US stock market, as measured by the S&P 500 Index, gained 0.15% for the six months ended December 31, 2015.³ International equities produced very poor results, as they were negatively impacted by moderating growth, fears of a "hard landing" for China's economy and sharply falling commodity prices. International developed equities, as measured by the MSCI EAFE Index (net), declined 6.01% during the period.⁴ Emerging market equities, as measured by the MSCI Emerging Markets Index (net), fell 17.35% over the same period.⁵

¹ Based on the Commerce Department's initial estimate announced on January 29, 2016, after the reporting period had ended.

² The federal funds rate or the "fed funds rate," is the rate banks charge one another for funds they borrow on an overnight basis.

³ 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.

⁴ The MSCI EAFE Index (net) is an index of stocks designed to measure the investment returns of developed economies outside of North America. Net total return indices reinvest dividends after the deduction of withholding taxes, using a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. 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.

⁵ The MSCI Emerging Markets Index (net) is a market capitalization-weighted index composed of different emerging market countries in Europe, Latin America and the Pacific Basin. Net total return indices reinvest dividends after the deduction of withholding taxes, using a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. 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.

The markets in review

Mixed returns in the fixed income market

The global fixed income markets were not immune from periodic bouts of risk aversion during the reporting period. Mixed signals from the Fed regarding the timing for interest rate "liftoff" was just one of the factors impacting fixed income prices. The yield on the US 10-year Treasury fell from 2.35% to 2.27% during the reporting period, and the overall US bond market, as measured by the Barclays US Aggregate Index, gained 0.65%.⁶ Returns of riskier fixed income securities were even weaker for the six months ended December 31, 2015. High yield bonds, as measured by the BofA Merrill Lynch US High Yield Cash Pay Constrained Index, declined 6.84%, while emerging markets debt, as measured by the J.P. Morgan Emerging Markets Bond Index Global (EMBI Global), fell 0.52% during the reporting period.^7,8

⁶ The Barclays US Aggregate Index is an unmanaged broad based index designed to measure the US dollar-denominated, investment-grade, taxable bond market. The index includes bonds from the Treasury, government-related, corporate, mortgage-backed, asset-backed and commercial mortgage-backed sectors. Investors should note that indices do not reflect the deduction of fees and expenses.

⁷ 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 capitalization 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. The index is not leveraged. Investors should note that indices do not reflect the deduction of fees and expenses.

⁸ 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, 2015, Class A shares of UBS Dynamic Alpha Fund (the "Fund") returned -6.99% (Class A shares returned -12.05% after the deduction of the maximum sales charge), while Class P shares returned -6.74%. For purposes of comparison, the BofA Merrill Lynch US Treasury 1-5 Year Index returned 0.03% during the same time period, the MSCI World Free Index (net) returned -3.41% and the Citigroup One-Month US Treasury Bill Index returned 0.01%. (Class P shares have lower expenses than other share classes of the Fund.

Returns for all share classes over various time periods are shown on page 7; 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 negative absolute return during the reporting period. Performance was due to asset allocation decisions.

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 active currency strategy, utilizing currency forwards had a direct positive impact on Fund performance. We used a variety of equity and fixed income options, futures and swaps to implement our market allocation strategy. Derivatives were just one tool, among others, that we used to implement our market allocation strategy. These derivatives, in aggregate, detracted from performance during the reporting period.

Portfolio performance summary¹

What worked:

• Certain equity positions added value over the reporting period.

– The Fund's relative value trade of long German equities versus Swedish equities contributed to results after a sustained performance gap between the two markets narrowed.

– The Fund's relative value trade of long North Asian equities versus emerging markets contributed to performance. North Asian countries are net importers of oil and are experiencing healthier current account balances.

• Certain fixed income positions were positive for performance.

– The Fund benefited from a sustained long position in Australian government bonds, which served as a source of yield pick-up within the fixed income holdings.

– The Fund's long positions in Italian and Spanish government bonds added value, as yields in these periphery countries declined during the reporting period.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 3.

UBS Dynamic Alpha Fund

• Overall, the Fund's active currency strategy was beneficial for results.

– The Fund's long position in the euro over the Swiss franc contributed to results. The removal of the 1.20 euro/Swiss franc floor earlier in the year resulted in an immediate appreciation of the Swiss franc and the currency appearing significantly overvalued, which had negative consequences for the Swiss economy.

– The Fund's trade of long Mexican peso versus the Malaysian ringgit added to performance. Chinese trading partners such as Malaysia suffered amid heightened growth concerns.

What didn't work:

• Overall, the Fund's equity positioning was negative for returns.

– The Fund's long exposure to developed ex-US equities—particularly the eurozone and Japan—detracted from performance given concerns surrounding a global growth slowdown and economic linkages with China.

– The Fund's relative value trade of long US small cap equities versus US large cap equities detracted from performance. Third-quarter earnings were disappointing and merger and acquisition (M&A) activity remained concentrated in the large cap space.

• Overall, the Fund's fixed income positioning slightly detracted from results.

– The Fund's long position in investment grade bonds versus global sovereigns was negative for results, as spreads widened on corporate debt during the reporting period.

– The Fund's performance was negatively impacted by a short US duration position as US yields were flat to slightly down across the curve during the reporting period.

• Certain currency trades performed poorly during the reporting period.

– The Fund's overweight in the Swedish krona over the euro was negative for results. The Swedish Riksbank cut rates and expanded their quantitative easing program, and the euro rebounded from its lows, causing this trade to detract from results.

– The Fund's trade of long New Zealand dollar versus the US dollar detracted from performance. Even though the Reserve Bank of New Zealand reduced interest rates late in the year, the market interpreted this move as hawkish given the lack of additional forward guidance around future monetary policy easing.

This letter is intended to assist shareholders in understanding how the Fund performed during the six months ended December 31, 2015. The views and opinions in the letter were current as of February 16, 2016. 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 Dynamic Alpha Fund

Average annual total returns for periods ended 12/31/15 (unaudited)

	6 months			1 year			5 years			10 years
Before deducting maximum sales charge
Class A¹		(6.99	)%		(6.86	)%		2.65	%		1.76	%
Class C²		(7.31	)		(7.58	)		1.88			1.00
Class P³		(6.74	)		(6.61	)		2.94			2.06
After deducting maximum sales charge
Class A¹		(12.05	)%		(11.93	)%		1.48	%		1.19	%
Class C²		(8.21	)		(8.48	)		1.88			1.00
BofA Merrill Lynch US Treasury 1-5 Year Index⁴		0.03	%		0.98	%		1.25	%		3.04	%
MSCI World Free Index (net)⁵		(3.41	)		(0.87	)		7.59			4.98
Citigroup One-Month US Treasury Bill Index⁶		0.01			0.02			0.04			1.09

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2015 prospectuses were as follows: Class A—1.44% and 1.36%; Class C—2.20% and 2.11%; Class P—1.21% and 1.11%. 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 Asset Management (Americas) Inc. (formerly, UBS Global Asset Management (Americas) Inc.), the Fund's investment advisor ("UBS 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, 2016, do not exceed 1.35% for Class A shares, 2.10% for Class C shares and 1.10% for Class P 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. The fee waiver/expense reimbursement agreement may be terminated by the Fund's Board of Trustees at any time and also will terminate automatically upon the expiration or termination of the Fund's advisory contract with the Advisor. Upon termination of the fee waiver/expense reimbursement agreement, however, the UBS AM (Americas)'s three year recoupment rights will survive.

¹ Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

² 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 distribution and service fees.

³ Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

⁴ 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.

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. Net total return indices reinvest dividends after the deduction of withholding taxes, using a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. 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 Citigroup One-Month US Treasury Bill Index is an unmanaged index representing monthly return equivalents of yield averages of the last one month Treasury Bill issue. Investors should note that indices do not reflect the deduction of fees and expenses.

Prior to February 17, 2015, if an investor sold or exchanged shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged was deducted at the time of the transaction, except as noted otherwise in the prospectus. For sales or exchanges taking place on or after February 17, 2015 but prior to August 3, 2015, there is a reduction in the redemption holding period from 90 days to 30 days. Effective August 3, 2015, the 1.00% redemption fee imposed on sales or exchanges of any class of shares of the funds made during the holding periods specified in the prospectus will be eliminated. Please refer to the prospectus for further information.

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 www.ubs.com/us-mutualfundperformance.

UBS Dynamic Alpha Fund

Top ten long-term fixed income holdings (unaudited)

As of December 31, 2015

	Percentage of net assets
Commonwealth of Australia, 4.500%, due 04/15/20		2.2	%
Commonwealth of Australia, 4.250%, due 07/21/17		2.1
Commonwealth of Australia, 4.750%, due 06/15/16		1.8
JPMorgan Chase & Co., 3.200%, due 01/25/23		1.2
Buoni Poliennali Del Tesoro, 3.250%, due 09/01/46		1.1
Kingdom of Spain, 5.150%, due 10/31/44		1.0
Morgan Stanley, 2.375%, due 07/23/19		0.6
Goldman Sachs Group, Inc., 1.375%, due 07/26/22		0.6
Wachovia Corp., 5.750%, due 02/01/18		0.6
NBCUniversal Media LLC, 4.375%, due 04/01/21		0.5
Total		11.7	%

Country exposure by issuer, top five (unaudited)

As of December 31, 2015

	Percentage of net assets
United States		29.8	%
Australia		9.9
United Kingdom		9.2
Netherlands		5.9
France		2.6
Total		57.4	%

UBS Dynamic Alpha Fund

Industry diversification (unaudited)

As a percentage of net assets as of December 31, 2015

Bonds
Corporate bonds
Aerospace & defense	0.13	%
Airlines	0.11
Automobiles	0.17
Banks	13.44
Beverages	1.57
Biotechnology	0.60
Capital markets	2.28
Chemicals	0.84
Commercial services & supplies	0.60
Communications equipment	0.31
Construction & engineering	0.63
Consumer finance	1.62
Diversified financial services	3.09
Diversified telecommunication services	2.93
Electric utilities	3.00
Energy equipment & services	0.80
Food & staples retailing	0.50
Food products	0.82
Gas utilities	1.08
Health care equipment & supplies	0.58
Health care providers & services	0.59
Hotels, restaurants & leisure	0.12
Independent power and renewable electricity producers	0.32
Industrial conglomerates	0.42
Insurance	7.69
Internet & catalog retail	0.13
Internet software & services	0.17
IT services	0.21
Life sciences tools & services	0.13
Machinery	0.22
Marine	0.29
Media	2.53
Metals & mining	0.93
Multi-utilities	0.87
Oil, gas & consumable fuels	7.57
Pharmaceuticals	1.49
Real estate investment trust (REIT)	0.45
Real estate management & development	0.28
Road & rail	0.77
Semiconductors & semiconductor equipment	0.20
Software	0.33
Specialty retail	0.35
Thrifts & mortgage finance	0.19
Tobacco	1.64
Transportation infrastructure	1.02
Water utilities	0.65
Wireless telecommunication services	0.97
Total corporate bonds	65.63	%

Collateralized debt obligation	0.00	%¹
Mortgage & agency debt security	0.01
Non-US government obligations	8.22
Total bonds	73.86	%
Short-term investments	14.80
Options purchased	2.17
Investment of cash collateral from securities loaned	0.77
Total investments	91.60	%
Cash and other assets, less liabilities	8.40
Net assets	100.00	%

¹ Amount represents less than 0.005%.

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds: 73.86%
Corporate bonds: 65.63%
Australia: 3.79%
Adani Abbot Point Terminal Pty Ltd., 5.750%, due 11/01/18	AUD	1,025,000	$	745,318
APT Pipelines Ltd., 4.200%, due 03/23/25¹	$	910,000		855,091
Aurizon Network Pty Ltd., 2.000%, due 09/18/24	EUR	500,000		522,131
Australia & New Zealand Banking Group Ltd., 4.500%, due 03/19/24²	$	250,000		250,916
Australia Pacific Airports Melbourne Pty Ltd., 1.750%, due 10/15/24	EUR	450,000		481,193
BHP Billiton Finance USA Ltd., 5.000%, due 09/30/43	$	280,000		253,731
Commonwealth Bank of Australia, 1.125%, due 03/13/17		370,000		369,140
2.250%, due 03/16/17¹		380,000		383,950
2.250%, due 03/16/17²		250,000		252,599
National Australia Bank Ltd., 2.000%, due 11/12/24³	EUR	550,000		594,262
2.750%, due 03/09/17	$	650,000		660,917
Origin Energy Finance Ltd., 2.500%, due 10/23/20²	EUR	775,000		792,445
5.450%, due 10/14/21²	$	345,000		335,712
QBE Insurance Group Ltd., 2.400%, due 05/01/18²		405,000		405,363
6.750%, due 12/02/44³		795,000		828,787
Santos Finance Ltd., 8.250%, due 09/22/70³	EUR	380,000		414,024
Scentre Group Trust 1, 1.500%, due 07/16/20		250,000		275,556
SGSP Australia Assets Pty Ltd., 2.000%, due 06/30/22		350,000		379,041
Suncorp-Metway Ltd., 1.700%, due 03/28/17²	$	460,000		459,153
Telstra Corp. Ltd., 4.800%, due 10/12/21²		350,000		382,421
Transurban Finance Co. Pty Ltd., 1.875%, due 09/16/24	EUR	400,000		425,552
Total Australia corporate bonds				10,067,302
Belgium: 0.30%
AG Insurance SA, 3.500%, due 06/30/47³		800,000		794,806
Bermuda: 0.20%
Bacardi Ltd., 2.750%, due 07/03/23²		470,000		540,965

	Face amount		Value
Brazil: 0.50%
Petrobras Global Finance BV, 3.250%, due 04/01/19²	EUR	610,000	$	477,300
3.875%, due 01/27/16	$	440,000		439,669
Vale SA, 5.625%, due 09/11/42		630,000		417,136
Total Brazil corporate bonds				1,334,105
Canada: 1.90%
Bank of Montreal, 6.020%, due 05/02/18	CAD	470,000		374,832
Bank of Nova Scotia, 4.100%, due 06/08/17		695,000		522,383
Canadian Imperial Bank of Commerce, 1.350%, due 07/18/16	$	445,000		445,968
3.400%, due 01/14/16	CAD	515,000		372,512
Canadian Natural Resources Ltd., 3.900%, due 02/01/25	$	150,000		130,930
Hydro One, Inc., 5.360%, due 05/20/36	CAD	335,000		289,540
Nexen Energy ULC, 6.400%, due 05/15/37	$	500,000		572,500
Royal Bank of Canada, 2.980%, due 05/07/19	CAD	475,000		357,467
Suncor Energy, Inc., 6.500%, due 06/15/38	$	505,000		540,272
Talisman Energy, Inc., 3.750%, due 02/01/21		480,000		435,408
TELUS Corp., 3.750%, due 01/17/25	CAD	165,000		121,365
Thomson Reuters Corp., 1.300%, due 02/23/17	$	480,000		477,731
Yamana Gold, Inc., 4.950%, due 07/15/24		470,000		398,820
Total Canada corporate bonds				5,039,728
Cayman Islands: 0.94%
Hutchison Whampoa International 09 Ltd., 7.625%, due 04/09/19¹		300,000		348,672
7.625%, due 04/09/19²		125,000		145,280
Noble Holding International Ltd., 5.950%, due 04/01/25		245,000		169,073
Principal Financial Global Funding II LLC, 4.500%, due 01/26/17	EUR	650,000		735,654
Tencent Holdings Ltd., 3.375%, due 05/02/19¹	$	450,000		457,113

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
Cayman Islands—(Concluded)
Thames Water Utilities Cayman Finance Ltd., 5.375%, due 07/21/25³	GBP	190,000	$	292,204
Yorkshire Water Services Bradford Finance Ltd., 6.000%, due 04/24/25³		230,000		354,951
Total Cayman Islands corporate bonds				2,502,947
China: 0.48%
AIA Group Ltd., 1.750%, due 03/13/18²	$	510,000		504,277
1.750%, due 03/13/18²		560,000		553,716
Bao-trans Enterprises Ltd., 1.625%, due 02/23/18	EUR	200,000		216,597
Total China corporate bonds				1,274,590
Czech Republic: 0.24%
NET4GAS sro, 2.500%, due 07/28/21		560,000		627,461
Denmark: 0.40%
AP Moeller - Maersk A/S, 3.375%, due 08/28/19²		650,000		768,023
DONG Energy A/S, 3.000%, due 11/06/15³		290,000		302,967
Total Denmark corporate bonds				1,070,990
Finland: 0.66%
Elenia Finance Oyj, 2.875%, due 12/17/20		550,000		635,240
Sampo Oyj, 1.500%, due 09/16/21		250,000		273,376
Teollisuuden Voima Oyj, 2.500%, due 03/17/21		425,000		456,504
4.625%, due 02/04/19²		335,000		393,746
Total Finland corporate bonds				1,758,866
France: 2.58%
Arkema SA, 1.500%, due 01/20/25		200,000		208,815
AXA SA, 6.667%, due 07/06/16^3,4	GBP	425,000		635,783
Banque Federative du Credit Mutuel SA, 3.000%, due 09/11/25	EUR	200,000		223,069
BNP Paribas SA, 2.700%, due 08/20/18	$	500,000		507,178
2.875%, due 03/20/26³	EUR	350,000		389,221

	Face amount		Value
Credit Logement SA, 1.021%, due 03/16/16^2,3,4	EUR	300,000	$	264,895
Electricite de France SA, 4.125%, due 01/22/22^3,4		300,000		317,956
5.625%, due 01/22/24^1,3,4	$	280,000		266,280
6.950%, due 01/26/39¹		200,000		245,688
Engie SA, 4.750%, due 07/10/21^3,4	EUR	600,000		688,402
Infra Park SAS, 1.250%, due 10/16/20		200,000		218,990
Orange SA, 5.875%, due 02/07/22^3,4	GBP	300,000		437,625
Societe Des Autoroutes Paris-Rhin-Rhone, 2.250%, due 01/16/20	EUR	600,000		689,369
Total Capital International SA, 1.550%, due 06/28/17	$	1,170,000		1,173,040
TOTAL SA, 2.625%, due 02/26/25^3,4	EUR	265,000		253,790
Transport et Infrastructures Gaz France SA, 2.200%, due 08/05/25		300,000		326,995
Total France corporate bonds				6,847,096
Germany: 0.18%
Allianz SE, 4.750%, due 10/24/23^3,4		200,000		234,412
RWE AG, 2.750%, due 04/21/75³		270,000		251,668
Total Germany corporate bonds				486,080
Guernsey: 0.16%
Credit Suisse Group Guernsey I Ltd., 7.875%, due 02/24/41^2,3	$	415,000		427,450
Ireland: 1.60%
Aquarius & Investments PLC for Swiss Reinsurance Co. Ltd., 6.375%, due 09/01/24³		200,000		207,995
Cloverie PLC for Zurich Insurance Co., Ltd., 1.750%, due 09/16/24	EUR	130,000		142,622
FGA Capital Ireland PLC, 2.625%, due 04/17/19		435,000		489,075
GE Capital International Funding Co., 0.964%, due 04/15/16¹	$	480,000		480,213
2.342%, due 11/15/20¹		574,000		569,794
4.418%, due 11/15/35¹		1,229,000		1,254,615
Perrigo Co. PLC, 4.000%, due 11/15/23		200,000		195,699

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
Ireland—(Concluded)
PGH Capital Ltd., 5.750%, due 07/07/21	GBP	280,000	$	443,735
XL Group PLC, 4.450%, due 03/31/25	$	270,000		264,643
4.450%, due 03/31/25		5,000		4,896
5.250%, due 12/15/43		195,000		201,658
Total Ireland corporate bonds				4,254,945
Israel: 0.08%
Teva Pharmaceutical Finance IV BV, 3.650%, due 11/10/21		200,000		202,950
Italy: 1.14%
2i Rete Gas SpA, 1.125%, due 01/02/20	EUR	200,000		217,584
CDP Reti SpA, 1.875%, due 05/29/22		405,000		440,122
Ei Towers SpA, 3.875%, due 04/26/18		400,000		461,405
Intesa Sanpaolo SpA, 3.875%, due 01/16/18	$	320,000		328,153
4.375%, due 10/15/19²	EUR	400,000		490,089
Snam SpA, 3.875%, due 03/19/18²		334,000		391,207
UniCredit SpA, 3.250%, due 01/14/21		295,000		347,249
6.375%, due 05/02/23^2,3	$	340,000		349,250
Total Italy corporate bonds				3,025,059
Japan: 0.22%
Bank of Tokyo-Mitsubishi UFJ Ltd., 2.350%, due 09/08/19¹		380,000		378,165
2.350%, due 09/08/19²		200,000		199,035
Total Japan corporate bonds				577,200
Jersey, Channel Islands: 1.09%
AA Bond Co., Ltd., 4.720%, due 07/31/18²	GBP	275,000		421,036
Gatwick Funding Ltd., 5.250%, due 01/23/24²		250,000		418,481
Heathrow Funding Ltd., 1.500%, due 02/11/30	EUR	425,000		409,922
4.600%, due 02/15/18²		590,000		695,883
HSBC Bank Capital Funding Sterling 2 LP, 5.862%, due 04/07/20^3,4	GBP	180,000		277,297

	Face amount		Value
HSBC Capital Funding LP, 5.130%, due 03/29/16^3,4	EUR	170,000	$	186,133
QBE Capital Funding III Ltd., 7.250%, due 05/24/41^2,3	$	430,000		473,555
Total Jersey, Channel Islands corporate bonds				2,882,307
Luxembourg: 0.21%
Belfius Financing Co., 1.276%, due 02/09/17³	GBP	375,000		544,533
Mexico: 0.42%
America Movil SAB de CV, 5.000%, due 03/30/20	$	435,000		469,930
5.125%, due 09/06/73³	EUR	145,000		164,079
Coca-Cola Femsa SAB de CV, 2.375%, due 11/26/18	$	490,000		493,979
Total Mexico corporate bonds				1,127,988
Netherlands: 5.94%
ABN AMRO Bank NV, 2.875%, due 06/30/25³	EUR	200,000		222,870
4.875%, due 01/16/19²	GBP	350,000		560,299
6.250%, due 09/13/22³	$	370,000		388,054
Achmea BV, 2.500%, due 11/19/20	EUR	960,000		1,106,523
4.250%, due 02/04/25^3,4		350,000		353,718
Allianz Finance II BV, 4.375%, due 02/17/17^3,4		435,000		486,918
BAT Netherlands Finance BV, 2.375%, due 01/19/23²		550,000		631,567
Bharti Airtel International Netherlands BV, 4.000%, due 12/10/18		750,000		870,079
Coca-Cola HBC Finance BV, 2.375%, due 06/18/20²		560,000		641,925
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, 1.700%, due 03/19/18	$	830,000		829,662
2.500%, due 05/26/26³	EUR	745,000		816,146
5.500%, due 06/29/20^3,4		850,000		933,899
Deutsche Telekom International Finance BV, 6.500%, due 04/08/22	GBP	170,000		304,056
E.ON International Finance BV, 6.650%, due 04/30/38¹	$	145,000		162,974
EDP Finance BV, 2.000%, due 04/22/25	EUR	255,000		252,942
4.625%, due 06/13/16		405,000		447,951
Heineken NV, 2.125%, due 08/04/20²		645,000		739,065

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
Netherlands—(Concluded)
Koninklijke KPN NV, 6.500%, due 01/15/16	EUR	257,000	$	279,989
LYB International Finance BV, 5.250%, due 07/15/43	$	285,000		273,450
Nomura Europe Finance NV, 1.500%, due 05/12/21	EUR	300,000		325,187
Redexis Gas Finance BV, 1.875%, due 04/27/27		650,000		610,491
2.750%, due 04/08/21		450,000		516,935
REN Finance BV, 2.500%, due 02/12/25		300,000		320,445
4.750%, due 10/16/20		345,000		429,410
Repsol International Finance BV, 4.250%, due 02/12/16²		200,000		218,302
Shell International Finance BV, 1.250%, due 11/10/17	$	710,000		706,308
4.375%, due 05/11/45		815,000		769,465
Siemens Financieringsmaatschappij NV, 5.125%, due 02/20/17	EUR	335,000		384,833
6.125%, due 09/14/66³	GBP	225,000		338,204
Swiss Reinsurance Co. via ELM BV, 2.600%, due 09/01/25^3,4	EUR	230,000		229,915
TenneT Holding BV, 6.655%, due 06/01/17^3,4		250,000		287,880
Vonovia Finance BV, 4.000%, due 12/17/21^3,4		300,000		316,244
Total Netherlands corporate bonds				15,755,706
Norway: 0.47%
DNB Bank ASA, 3.200%, due 04/03/17¹	$	450,000		458,712
Statoil ASA, 3.125%, due 08/17/17		430,000		441,071
4.800%, due 11/08/43		355,000		359,765
Total Norway corporate bonds				1,259,548
Portugal: 0.09%
Caixa Geral de Depositos SA, 3.750%, due 01/18/18	EUR	200,000		232,400
Singapore: 0.10%
United Overseas Bank Ltd., 3.750%, due 09/19/24³	$	250,000		252,910
South Korea: 0.12%
GS Caltex Corp., 5.500%, due 04/24/17²		300,000		311,945

	Face amount		Value
Spain: 1.48%
Aigues de Barcelona Finance SAU, 1.944%, due 09/15/21	EUR	430,000	$	466,023
BBVA Senior Finance SAU, 3.250%, due 03/21/16		200,000		218,741
Canal de Isabel II Gestion SA, 1.680%, due 02/26/25		300,000		310,546
Inmobiliaria Colonial SA, 1.863%, due 06/05/19		400,000		437,826
Santander Consumer Finance SA, 0.900%, due 02/18/20²		800,000		857,597
Santander International Debt SAU, 1.375%, due 03/25/17		700,000		770,439
Telefonica Emisiones SAU, 4.710%, due 01/20/20²		700,000		870,873
Total Spain corporate bonds				3,932,045
Sweden: 0.89%
PGE Sweden AB, 1.625%, due 06/09/19		200,000		218,066
Svenska Handelsbanken AB, 5.125%, due 03/30/20¹	$	475,000		525,893
5.125%, due 03/30/20²		115,000		127,321
5.250%, due 03/01/21^3,4		475,000		457,188
Swedbank AB, 5.500%, due 03/17/20^3,4		400,000		398,453
Swedbank Hypotek AB, 2.375%, due 04/05/17¹		440,000		445,133
2.375%, due 04/05/17²		200,000		202,331
Total Sweden corporate bonds				2,374,385
Switzerland: 0.35%
Credit Suisse AG, 3.000%, due 10/29/21		380,000		378,688
Demeter Investments BV for Swiss Life AG, 4.375%, due 06/16/25^3,4	EUR	515,000		550,593
Total Switzerland corporate bonds				929,281
United Kingdom: 9.22%
Abbey National Treasury Services PLC, 4.000%, due 03/13/24⁵	$	490,000		511,372
Anglian Water Services Financing PLC, 4.500%, due 02/22/26²	GBP	200,000		313,393
Aon PLC, 2.875%, due 05/14/26	EUR	155,000		175,890
4.750%, due 05/15/45	$	470,000		464,560
Arqiva Financing PLC, 4.040%, due 06/30/20²	GBP	525,000		802,584
4.882%, due 12/31/32²		250,000		394,816

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
United Kingdom—(Concluded)
Aviva PLC, 5.125%, due 06/04/50³	GBP	380,000	$	528,832
Barclays Bank PLC, 2.250%, due 05/10/17^1,5	$	360,000		363,832
2.250%, due 05/10/17²		200,000		202,129
4.375%, due 09/11/24		960,000		938,708
5.750%, due 08/17/21²	GBP	255,000		440,401
6.625%, due 03/30/22²	EUR	260,000		354,822
BP Capital Markets PLC, 1.375%, due 05/10/18	$	390,000		384,435
2.750%, due 05/10/23		220,000		206,660
British Telecommunications PLC, 8.500%, due 12/07/16²	GBP	395,000		620,808
BUPA Finance PLC, 3.375%, due 06/17/21		210,000		317,301
6.125%, due 09/16/20^3,4		250,000		392,506
Centrica PLC, 5.250%, due 04/10/75³		225,000		317,622
5.375%, due 10/16/43¹	$	200,000		199,718
Diageo Capital PLC, 3.875%, due 04/29/43		305,000		283,600
EE Finance PLC, 4.375%, due 03/28/19²	GBP	345,000		540,857
GlaxoSmithKline Capital PLC, 1.500%, due 05/08/17	$	330,000		331,391
1.500%, due 05/08/17		230,000		230,978
HSBC Holdings PLC, 5.100%, due 04/05/21		940,000		1,045,091
Imperial Tobacco Finance PLC, 2.050%, due 02/11/18¹		420,000		418,127
2.950%, due 07/21/20¹		305,000		305,694
9.000%, due 02/17/22²	GBP	190,000		370,532
Liverpool Victoria Friendly Society Ltd., 6.500%, due 05/22/43^2,3		610,000		885,886
Lloyds Bank PLC, 1.375%, due 09/08/22	EUR	1,040,000		1,139,090
11.875%, due 12/16/21^2,3		300,000		359,625
Manchester Airport Group Funding PLC, 4.750%, due 03/31/34	GBP	120,000		194,528
National Grid Electricity Transmission PLC, 4.000%, due 06/08/27²		230,000		367,436
Nationwide Building Society, 2.250%, due 04/29/22		190,000		275,542
Northern Gas Networks Finance PLC, 5.875%, due 07/08/19		225,000		373,161

	Face amount		Value
Prudential PLC, 1.375%, due 01/19/18 GBP		470,000	$	690,008
5.000%, due 07/20/55³		300,000		412,501
Royal Bank of Scotland Group PLC, 1.500%, due 11/28/16	EUR	250,000		274,344
Royal Bank of Scotland PLC, 6.934%, due 04/09/18		690,000		839,636
Scottish Widows PLC, 5.500%, due 06/16/23	GBP	400,000		615,136
Sinopec Capital 2013 Ltd., 3.125%, due 04/24/23²	$	230,000		218,842
3.125%, due 04/24/23¹		680,000		647,011
Sky PLC, 2.500%, due 09/15/26	EUR	250,000		275,623
Southern Gas Networks PLC, 2.500%, due 02/03/25	GBP	115,000		161,343
SSE PLC, 3.875%, due 09/10/20^3,4		200,000		282,987
Standard Chartered PLC, 4.000%, due 07/12/22^2,3	$	950,000		956,527
State Grid Europe Development 2014 PLC, Series A, Class , 1.500%, due 01/26/22	EUR	325,000		343,481
Tesco Property Finance 4 PLC, 5.801%, due 10/13/40²	GBP	246,819		317,000
Thames Water Utilities Finance Ltd., 5.125%, due 09/28/37		460,000		793,809
Wales & West Utilities Finance PLC, 5.125%, due 12/02/16²		710,000		1,083,701
6.750%, due 12/17/36³		100,000		163,429
Western Power Distribution West Midlands PLC, 5.750%, due 04/16/32²		200,000		364,248
WPP Finance 2010, 3.750%, due 09/19/24	$	365,000		363,306
WPP Finance 2013, 0.430%, due 03/23/18	EUR	410,000		444,373
Yorkshire Building Society, 4.125%, due 11/20/24³	GBP	115,000		169,980
Total United Kingdom corporate bonds				24,469,212
United States: 29.79%
21st Century Fox America, Inc., 6.200%, due 12/15/34	$	730,000		828,441
ABB Finance USA, Inc., 2.875%, due 05/08/22		520,000		512,816
AbbVie, Inc., 2.900%, due 11/06/22		805,000		779,352
4.400%, due 11/06/42		330,000		308,175

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
United States—(Continued)
Actavis Funding SCS, 1.300%, due 06/15/17	$	220,000	$	217,917
3.450%, due 03/15/22		350,000		350,559
4.750%, due 03/15/45		295,000		287,584
Aetna, Inc., 3.500%, due 11/15/24		535,000		534,445
Albemarle Corp., 1.875%, due 12/08/21	EUR	720,000		753,339
Alltel Corp., 7.875%, due 07/01/32	$	435,000		534,956
Altria Group, Inc., 4.250%, due 08/09/42		1,145,000		1,050,517
American Airlines Pass Through Trust, Series 2014-1, Class B, 4.375%, due 10/01/22		59,069		58,774
American Express Credit Corp., 1.300%, due 07/29/16		275,000		275,510
2.375%, due 05/26/20		230,000		228,326
American International Group, Inc., 3.375%, due 08/15/20		645,000		663,444
3.875%, due 01/15/35		250,000		220,479
4.500%, due 07/16/44		260,000		240,460
Anadarko Petroleum Corp., 3.450%, due 07/15/24⁵		210,000		186,652
6.375%, due 09/15/17		1,025,000		1,074,816
Apache Corp., 4.750%, due 04/15/43		825,000		708,734
AT&T, Inc., 3.000%, due 02/15/22		410,000		402,135
4.750%, due 05/15/46		575,000		526,369
5.550%, due 08/15/41		550,000		552,263
Bank of America Corp., 1.375%, due 09/10/21	EUR	775,000		846,608
3.875%, due 08/01/25	$	770,000		781,723
5.875%, due 02/07/42		350,000		408,370
Berkshire Hathaway Finance Corp., 1.300%, due 05/15/18		310,000		307,435
Biogen, Inc., 4.050%, due 09/15/25		630,000		633,269
Branch Banking & Trust Co., 1.350%, due 10/01/17		265,000		264,532
Burlington Northern Santa Fe LLC, 3.000%, due 03/15/23		590,000		581,540
5.400%, due 06/01/41		345,000		375,106
Caterpillar, Inc., 4.750%, due 05/15/64		345,000		332,261
CCO Safari II LLC, 4.464%, due 07/23/22¹		450,000		448,434

	Face amount		Value
CF Industries, Inc., 5.150%, due 03/15/34	$	430,000	$	378,042
Chevron Corp., 2.355%, due 12/05/22		410,000		391,767
Citigroup, Inc., 0.538%, due 05/31/17³	EUR	625,000		677,351
3.875%, due 10/25/23	$	500,000		516,767
Coca-Cola Co., 1.800%, due 09/01/16		530,000		533,387
1.875%, due 09/22/26	EUR	305,000		339,092
Comcast Corp., 4.750%, due 03/01/44	$	165,000		171,260
ConocoPhillips Co., 2.200%, due 05/15/20		740,000		716,284
CVS Health Corp., 5.125%, due 07/20/45		555,000		584,655
Daimler Finance North America LLC, 2.450%, due 05/18/20¹		450,000		441,450
Delta Air Lines Pass Through Trust, Series 2007-1, Class A, 6.821%, due 08/10/22		40,678		46,853
DIRECTV Holdings LLC, 5.000%, due 03/01/21		870,000		938,512
Duke Energy Corp., 3.050%, due 08/15/22		545,000		537,389
Enable Midstream Partners LP, 3.900%, due 05/15/24		335,000		256,262
Energy Transfer Partners LP, 6.050%, due 06/01/41		580,000		452,555
Enterprise Products Operating LLC, 4.850%, due 03/15/44		415,000		335,759
5.200%, due 09/01/20		325,000		341,002
ERAC USA Finance LLC, 5.625%, due 03/15/42¹		315,000		338,101
ERP Operating LP, 3.375%, due 06/01/25		470,000		465,176
Express Scripts Holding Co., 2.250%, due 06/15/19		465,000		462,310
Exxon Mobil Corp., 1.819%, due 03/15/19		320,000		320,303
3.567%, due 03/06/45		190,000		178,584
Fifth Third Bank, 2.875%, due 10/01/21		545,000		543,090
Five Corners Funding Trust, 4.419%, due 11/15/23¹		590,000		616,017
Ford Motor Credit Co. LLC, 3.000%, due 06/12/17		1,380,000		1,393,472
Freeport-McMoRan, Inc., 3.550%, due 03/01/22		650,000		377,000
3.875%, due 03/15/23		365,000		208,050

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
United States—(Continued)
General Electric Capital Corp., Series A, Class , 4.375%, due 09/16/20	$	242,000	$	262,821
6.750%, due 03/15/32		357,000		466,469
General Electric Co., 1.875%, due 05/28/27	EUR	320,000		354,035
4.125%, due 10/09/42	$	285,000		278,385
General Motors Financial Co., Inc., 3.500%, due 07/10/19		505,000		506,788
Georgia Power Co., 5.400%, due 06/01/40		350,000		368,808
Gilead Sciences, Inc., 2.050%, due 04/01/19		280,000		280,558
3.650%, due 03/01/26		85,000		85,756
4.750%, due 03/01/46		210,000		212,387
4.800%, due 04/01/44		380,000		381,199
Glencore Funding LLC, 2.500%, due 01/15/19^1,5		500,000		417,500
3.125%, due 04/29/19¹		230,000		192,050
Goldman Sachs Group, Inc., 1.375%, due 07/26/22	EUR	1,360,000		1,470,472
5.150%, due 05/22/45	$	395,000		383,429
Halliburton Co., 3.800%, due 11/15/25		160,000		155,895
5.000%, due 11/15/45		210,000		207,444
Hartford Financial Services Group, Inc., 4.300%, due 04/15/43		305,000		283,853
HCP, Inc., 3.875%, due 08/15/24		460,000		445,840
Illinois Tool Works, Inc., 3.000%, due 05/19/34	EUR	215,000		242,964
Intel Corp., 3.100%, due 07/29/22	$	510,000		520,361
International Business Machines Corp., 3.375%, due 08/01/23		560,000		568,856
Jefferies Group LLC, 2.375%, due 05/20/20	EUR	175,000		183,568
JPMorgan Chase & Co., 3.200%, due 01/25/23	$	3,235,000		3,226,210
3.875%, due 09/10/24		250,000		248,813
Juniper Networks, Inc., 4.500%, due 03/15/24		370,000		368,438
Kellogg Co., 1.875%, due 11/17/16		380,000		382,476
Kinder Morgan Energy Partners LP, 5.000%, due 10/01/21		320,000		302,129
5.000%, due 03/01/43		575,000		425,939

	Face amount		Value
Kinder Morgan, Inc., 5.625%, due 11/15/23¹	$	220,000	$	201,239
Kraft Foods Group, Inc., 5.000%, due 06/04/42		465,000		468,191
Kraft Heinz Foods Co., 4.875%, due 02/15/25¹		340,000		361,428
Liberty Mutual Group, Inc., 4.250%, due 06/15/23¹		600,000		610,084
Lincoln National Corp., 4.200%, due 03/15/22		740,000		773,774
Lowe's Cos., Inc., 4.250%, due 09/15/44		505,000		502,190
Marathon Oil Corp., 3.850%, due 06/01/25		370,000		297,841
Marathon Petroleum Corp., 3.625%, due 09/15/24		515,000		480,156
McDonald's Corp., 2.750%, due 12/09/20		310,000		309,847
Medtronic, Inc., 3.150%, due 03/15/22		500,000		505,544
4.000%, due 04/01/43		305,000		283,052
Mellon Capital III, 6.369%, due 09/05/66³	GBP	300,000		446,683
Merck & Co., Inc., 1.875%, due 10/15/26	EUR	325,000		362,670
3.700%, due 02/10/45	$	160,000		148,765
Metropolitan Life Global Funding I, 1.250%, due 09/17/21	EUR	1,130,000		1,242,211
Microsoft Corp., 2.625%, due 05/02/33		440,000		508,017
3.500%, due 11/15/42	$	420,000		372,823
Mondelez International, Inc., 2.375%, due 01/26/21	EUR	830,000		954,591
Monongahela Power Co., 5.400%, due 12/15/43¹	$	260,000		289,579
Monsanto Co., 4.200%, due 07/15/34		380,000		326,895
Morgan Stanley, 2.375%, due 07/23/19		1,550,000		1,545,153
2.650%, due 01/27/20		620,000		618,531
4.350%, due 09/08/26		450,000		451,738
6.375%, due 07/24/42		210,000		259,496
Mosaic Co., 5.450%, due 11/15/33		295,000		298,096
Navient Corp., 6.250%, due 01/25/16		270,000		270,415
NBCUniversal Media LLC, 4.375%, due 04/01/21		1,315,000		1,429,007
Noble Energy, Inc., 5.050%, due 11/15/44		205,000		165,513
Occidental Petroleum Corp., 4.625%, due 06/15/45		205,000		198,700

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Concluded)
United States—(Concluded)
Oncor Electric Delivery Co. LLC, 7.000%, due 05/01/32	$	196,000	$	243,562
PacifiCorp, 6.000%, due 01/15/39		495,000		600,595
Petroleos Mexicanos, 5.500%, due 02/24/25²	EUR	355,000		394,862
Pfizer, Inc., 5.200%, due 08/12/20	$	485,000		543,278
Philip Morris International, Inc., 4.250%, due 11/10/44		485,000		468,522
Phillips 66, 4.650%, due 11/15/34		235,000		220,148
Phillips 66 Partners LP, 4.680%, due 02/15/45		170,000		125,670
PNC Funding Corp., 2.700%, due 09/19/16		395,000		398,870
PPL Capital Funding, Inc., 4.700%, due 06/01/43		285,000		283,743
Priceline Group, Inc., 2.375%, due 09/23/24	EUR	320,000		342,509
Prudential Financial, Inc., 4.600%, due 05/15/44	$	690,000		686,522
Republic Services, Inc., 5.250%, due 11/15/21		830,000		918,061
Reynolds American, Inc., 3.750%, due 05/20/23		155,000		154,744
4.000%, due 06/12/22		185,000		192,447
5.700%, due 08/15/35		125,000		136,951
6.750%, due 06/15/17		595,000		635,191
SABMiller Holdings, Inc., 3.750%, due 01/15/22¹		590,000		606,844
Schlumberger Holdings Corp., 3.000%, due 12/21/20¹		380,000		375,147
Sempra Energy, 6.000%, due 10/15/39		430,000		482,175
Southwestern Electric Power Co., 6.200%, due 03/15/40		565,000		665,466
SunTrust Banks, Inc., 1.350%, due 02/15/17		790,000		788,350
2.350%, due 11/01/18		520,000		522,784
Swiss Re Treasury US Corp., 4.250%, due 12/06/42¹		250,000		235,939
Teachers Insurance & Annuity Association of America, 4.900%, due 09/15/44¹		295,000		297,966
Thermo Fisher Scientific, Inc., 3.300%, due 02/15/22		155,000		154,709
5.300%, due 02/01/44		175,000		186,825

	Face amount		Value
Time Warner Cable, Inc., 4.500%, due 09/15/42	$	315,000	$	247,192
5.000%, due 02/01/20		1,030,000		1,090,282
Transocean, Inc., 6.500%, due 11/15/20⁵		1,505,000		1,038,450
6.800%, due 03/15/38⁵		320,000		172,251
Union Pacific Corp., 4.050%, due 11/15/45		240,000		232,201
United Technologies Corp., 1.250%, due 05/22/23	EUR	310,000		334,731
UnitedHealth Group, Inc., 2.700%, due 07/15/20	$	250,000		252,717
US Bancorp, 1.650%, due 05/15/17		365,000		366,116
Valero Energy Corp., 6.625%, due 06/15/37		550,000		552,633
Verizon Communications, Inc., 2.625%, due 02/21/20		1,062,000		1,065,897
3.000%, due 11/01/21		240,000		239,410
4.500%, due 09/15/20		525,000		564,142
6.550%, due 09/15/43		1,180,000		1,400,869
Virginia Electric & Power Co., Series A, Class , 6.000%, due 05/15/37		280,000		342,913
Wachovia Corp., 5.750%, due 02/01/18		1,360,000		1,468,884
Walgreens Boots Alliance, Inc., 3.800%, due 11/18/24		450,000		436,918
Waste Management, Inc., 4.100%, due 03/01/45		495,000		460,054
Williams Partners LP, 4.300%, due 03/04/24		495,000		392,437
Xcel Energy, Inc., 4.800%, due 09/15/41		260,000		261,203
Zimmer Biomet Holdings, Inc., 3.150%, due 04/01/22		350,000		344,093
4.450%, due 08/15/45		435,000		399,843
Total United States corporate bonds				79,066,619
Virgin Islands, British: 0.09%
CNPC General Capital Ltd., 3.400%, due 04/16/23¹		250,000		241,915
Total corporate bonds (cost $185,631,183)				174,213,334
Collateralized debt obligation: 0.00%⁶
Cayman Islands: 0.00%⁶
LNR CDO Ltd., Series 2006-1A, Class FFX, 7.592%, due 05/28/43⁷(cost $8,103,500)		8,000,000		0

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Concluded)
Mortgage & agency debt security: 0.01%
United States: 0.01%
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-7, Class B11, 2.648%, due 04/25/35³(cost $56,946)	$	464,731	$	25,895
Non-US government obligations: 8.22%
Australia: 6.10%
Commonwealth of Australia, 4.250%, due 07/21/17	AUD	7,482,000		5,634,965
4.500%, due 04/15/20		7,276,000		5,810,522
4.750%, due 06/15/16		6,440,000		4,750,868
				16,196,355
Italy: 1.08%
Buoni Poliennali Del Tesoro, 3.250%, due 09/01/46¹	EUR	2,350,000		2,853,318
Spain: 1.04%
Kingdom of Spain, 5.150%, due 10/31/44¹		1,800,000		2,770,652
Total Non-US government obligations (cost $25,581,364)				21,820,325
Total bonds (cost $219,372,993)				196,059,554
	Shares
Short-term investments: 14.80%
Investment company: 5.95%
JPMorgan U.S. Government Money Market Fund, Capital Shares (cost $15,780,691)		15,780,691		15,780,691

	Face amount		Value
US government obligations: 8.85%
US Treasury Bills 0.095%, due 02/04/16^5,8	$	14,000,000	$	13,998,023
0.225%, due 03/31/16^5,8		9,500,000		9,495,991
Total US government obligations (cost 23,493,400)				23,494,014
Total short-term investments (cost $39,274,091)				39,274,705
	Number of contracts
Options purchased: 2.17%
Call options: 1.49%
EURO STOXX 50 Index, strike @ EUR 3,700.00, expires December 2016		1,612		1,313,880
NIKKEI 225 Index, strike @ JPY 21,000.00, expires December 2016		368		1,867,632
S&P 500 Index, strike @ USD 2,200.00, expires December 2016		139		774,925
				3,956,437
Put options: 0.68%
S&P 500 Index, strike @ USD 1,800.00, expires December 2017		139		1,807,000
Total options purchased (cost $7,954,323)				5,763,437
	Shares
Investment of cash collateral from securities loaned: 0.77%
UBS Private Money Market Fund LLC⁹(cost $2,051,165)		2,051,165		2,051,165
Total investments: 91.60% (cost $268,652,572)				243,148,861
Cash and other assets, less liabilities: 8.40%				22,290,904
Net assets: 100.00%			$	265,439,765

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	$	630,448
Gross unrealized depreciation		(26,134,159	)
Net unrealized depreciation of investments	$	(25,503,711	)

For a listing of defined portfolio acronyms, counterparty abbreviations and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 117. Portfolio footnotes begin on page 22.

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2015 (unaudited)

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation/ (depreciation)
CIBC	AUD	27,165,000	USD	19,805,730	03/11/16	$	76,689
CIBC	GBP	13,745,000	USD	20,773,643	03/11/16		508,497
CIBC	NZD	25,240,000	USD	16,772,990	03/11/16		(419,031	)
CIBC	USD	1,394,792	EUR	1,265,000	03/11/16		(17,718	)
JPMCB	CAD	4,165,000	USD	3,110,584	03/11/16		99,994
JPMCB	CHF	5,575,000	USD	5,600,499	03/11/16		18,352
JPMCB	EUR	42,545,000	USD	46,535,466	03/11/16		221,151
JPMCB	JPY	359,500,000	USD	2,931,511	03/11/16		(63,993	)
JPMCB	USD	3,122,230	HKD	24,185,000	03/11/16		89
JPMCB	USD	5,950,386	MXN	99,940,000	03/11/16		(179,437	)
JPMCB	USD	955,354	SEK	8,090,000	03/11/16		4,866
SSB	KRW	1,282,000,000	USD	1,099,674	03/11/16		8,006
SSB	MYR	24,943,000	USD	5,907,864	03/11/16		126,067
Net unrealized appreciation on forward foreign currency contracts						$	383,532

Futures contracts

	Expiration date	Cost/ (proceeds)			Value			Unrealized appreciation/ (depreciation)
US Treasury futures sell contracts:
US Ultra Bond, 16 contracts (USD)	March 2016	$	(2,528,727	)	$	(2,539,000	)	$	(10,273	)
5 Year US Treasury Notes, 392 contracts (USD)	March 2016		(46,539,046	)		(46,381,562	)		157,484
10 Year US Treasury Notes, 380 contracts (USD)	March 2016		(48,081,711	)		(47,844,375	)		237,336
Index futures buy contracts:
Amsterdam Exchanges Index, 238 contracts (EUR)	January 2016		22,258,359			22,856,591			598,232
EURO STOXX 50 Index, 113 contracts (EUR)	March 2016		4,002,557			4,030,386			27,829
Hong Kong Hang Seng Index China Ent, 177 contracts (HKD)	January 2016		11,138,122			11,082,412			(55,710	)
STOXX 600 Banks Index, 1,137 contracts (EUR)	March 2016		11,190,120			11,244,276			54,156
TOPIX Index, 111 contracts (JPY)	March 2016		14,550,209			14,291,152			(259,057	)
Index futures sell contracts:
FTSE 100 Index, 148 contracts (GBP)	March 2016		(12,942,548	)		(13,522,895	)		(580,347	)
FTSE China A50 Index, 1,101 contracts (USD)	January 2016		(11,879,434	)		(11,527,470	)		351,964
S&P 500 Index, 28 contracts (USD)	March 2016		(14,285,578	)		(14,247,800	)		37,778
Interest rate futures buy contracts:
Canadian Government 10 Year Bond, 16 contracts (CAD)	March 2016		1,598,973			1,630,296			31,323
Interest rate futures sell contracts:
Euro-Bund, 216 contracts (EUR)	March 2016		(37,215,119	)		(37,069,825	)		145,294
Long Gilt, 208 contracts (GBP)	March 2016		(36,048,278	)		(35,805,605	)		242,673
Net unrealized appreciation on futures contracts								$	978,682

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2015 (unaudited)

Interest rate swap agreements

Counterparty	Notional amount		Termination date	Payments made by the Fund¹⁰	Payments received by the Fund¹⁰	Upfront payments		Value			Unrealized appreciation/ (depreciation)
DB	EUR	32,600,000	11/01/21	2.698%	6 month EURIBOR	$	—	$	(4,754,905	)	$	(4,754,905	)
GSI	EUR	31,200,000	06/21/21	6 month EURIBOR	3.325%		—		5,990,939			5,990,939
						$	—	$	1,236,034		$	1,236,034

Credit default swaps on corporate issues—buy protection¹¹

Counterparty	Referenced obligation¹²	Notional amount		Termination date	Payments made by the Fund¹⁰			Upfront payments received		Value			Unrealized appreciation/ (depreciation)
BB	METRO AG bond, 3.375%, due 03/01/19	EUR	455,000	06/20/20		1.000	%	$	2,557	$	1,153		$	3,710
CITI	HSBC Bank PLC bond, 4.000%, due 01/15/21	EUR	325,000	03/20/20		1.000			8,933		(5,581	)		3,352
JPMCB	Bayer AG bond, 5.625%, due 05/23/18	EUR	585,000	03/20/18		1.000			5,713		(11,190	)		(5,477	)
JPMCB	Pfizer, Inc. bond, 4.650%, due 03/01/18	USD	1,345,000	06/20/20		1.000			47,110		(49,549	)		(2,439	)
								$	64,313	$	(65,167	)	$	(854	)

Credit default swaps on corporate issues—sell protection¹³

Counterparty	Referenced obligation¹²	Notional amount		Termination date	Payments received by the Fund¹⁰			Upfront payments (made)/ received			Value			Unrealized appreciation/ (depreciation)			Credit spread¹⁴
CITI	Glencore International AG bond, 6.500%, due 02/27/19	EUR	355,000	06/20/19		1.000	%	$	16,552		$	(78,372	)	$	(61,820	)		8.205	%
CITI	Standard Chartered Bank PLC bond, 0.000%, due 10/15/14	EUR	325,000	03/20/20		1.000			(1,030	)		(3,632	)		(4,662	)		1.257
GSI	Freeport-McMoRan, Inc. bond, 3.550%, due 03/01/22	USD	420,000	12/20/19		1.000			16,530			(135,258	)		(118,728	)		12.581
JPMCB	Lanxess AG bond, 4.125%, due 05/23/18	EUR	595,000	06/20/19		1.000			6,413			11,321			17,734			0.506
JPMCB	Portugal Telecom International Finance B.V. bond, 4.375%, due 03/24/17	EUR	445,000	09/20/19		5.000			(65,656	)		(205,476	)		(271,132	)		35.512
JPMCB	Teck Resources Ltd. bond, 3.150%, due 01/15/17	USD	420,000	12/20/19		1.000			32,833			(183,559	)		(150,726	)		17.468

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2015 (unaudited)

Credit default swaps on corporate issues—sell protection¹³—(Concluded)

Counterparty	Referenced obligation¹²	Notional amount		Termination date	Payments received by the Fund¹⁰		Upfront payments (made)/ received		Value			Unrealized appreciation/ (depreciation)			Credit spread¹⁴
JPMCB	Teck Resources Ltd. bond, 3.150%, due 01/15/17	USD	90,000	03/20/20		1.000	$	6,115	$	(40,740	)	$	(34,625	)		17.568
							$	11,757	$	(635,716	)	$	(623,959	)

Written options activity for the period ended December 31, 2015 was as follows:

	Number of contracts			Premiums received
Options outstanding at June 30, 2015		1,615		$	1,155,635
Options written		7,490			7,588,688
Options terminated in closing purchase transactions		(9,105	)		(8,744,323	)
Options expired prior to exercise		—			—
Options outstanding at December 31, 2015		—		$	—

The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 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
Assets
Corporate bonds	$	—		$	174,213,334		$	—	$	174,213,334
Collateralized debt obligation		—			—			0		0
Mortgage & agency debt security		—			25,895			—		25,895
Non-US government obligations		—			21,820,325			—		21,820,325
Short-term investments		15,780,691			23,494,014			—		39,274,705
Options purchased		5,763,437			—			—		5,763,437
Investment of cash collateral from securities loaned		—			2,051,165			—		2,051,165
Forward foreign currency contracts		—			1,063,711			—		1,063,711
Futures contracts		1,884,069			—			—		1,884,069
Swap agreements		—			6,003,413			—		6,003,413
Total	$	23,428,197		$	228,671,857		$	0	$	252,100,054
Liabilities
Forward foreign currency contracts	$	—		$	(680,179	)	$	—	$	(680,179	)
Futures contracts		(905,387	)		—			—		(905,387	)
Swap agreements		—			(5,468,262	)		—		(5,468,262	)
Total	$	(905,387	)	$	(6,148,441	)	$	—	$	(7,053,828	)

During the period ended December 31, 2015, there were no transfers between Level 1 and Level 2.

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2015 (unaudited)

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	$	0		$	0
Purchases		—			—
Issuances		—			—
Sales		—			—
Accrued discounts (premiums)		(1,903	)		(1,903	)
Total realized gain (loss)		—			—
Change in net unrealized appreciation/depreciation		1,903			1,903
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 September 30, 2015 was $(1,903).

Portfolio footnotes

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, 2015, the value of these securities amounted to $20,064,338 or 7.56% 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, 2015, the value of these securities amounted to $24,542,491 or 9.25% of net assets.

³ Variable or floating rate security—The interest rate shown is the current rate as of December 31, 2015 and changes periodically.

⁴ Perpetual investment. Date shown reflects the next call date.

⁵ Security, or portion thereof, was on loan at December 31, 2015.

⁶ Amount represents less than 0.005%.

⁷ Illiquid investment as of December 31, 2015.

⁸ Rate shown is the discount rate at the date of purchase.

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 Fund.

Security description	Value 06/30/15		Purchases during the six months ended 12/31/15		Sales during the six months ended 12/31/15		Value 12/31/15		Net income earned from affiliate for the six months ended 12/31/15
UBS Cash Management Prime Relationship Fund	$	26,421,851	$	100,490,025	$	126,911,876	$	—	$	8,639
UBS Private Money Market Fund LLC^a		1,558,438		5,790,635		5,297,908		2,051,165		185
	$	27,980,289	$	106,280,660	$	132,209,784	$	2,051,165	$	8,824

^aThe Advisor earns a management fee from this affiliated fund. Please see the Notes to financial statements for further information.

¹⁰ Payments made or received are based on the notional amount.

¹¹ 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.

UBS Dynamic Alpha Fund

Portfolio of investments

December 31, 2015 (unaudited)

¹² Payments from/to the counterparty will be received/made upon the occurrence of bankruptcy and/or restructuring event with respect to the referenced obligation.

¹³ 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 agreement less the recovery value of the referenced obligation.

¹⁴ 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.

See accompanying notes to financial statements.
23

UBS Global Allocation Fund

Portfolio performance

For the six months ended December 31, 2015, Class A shares of UBS Global Allocation Fund (the "Fund") returned -2.99% (Class A shares returned -8.36% after the deduction of the maximum sales charge), while Class P shares returned -2.81%. In contrast, the Fund's benchmark, the 60% MSCI All Country World Index (net)/40% Citigroup World Government Bond Index (Hedged in USD), returned -2.05% during the same time period. For comparison purposes, the MSCI All Country World Index (net) returned -4.90% and the Citigroup World Government Bond Index (Hedged in USD) returned 1.99% over the same period. (Class P shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 26. 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 negative absolute return during the reporting period and underperformed the benchmark. Negative performance was primarily due to our active market allocation strategy.

Portfolio performance summary¹

What worked:

• Certain active equity positions added to performance.

– The Fund's overweight to North Asian equities relative to broader emerging markets contributed to results over the reporting period. North Asian countries are net importers of oil and are experiencing healthier current account balances.

– The Fund benefited from a relative value trade of long German equities versus Swedish equities, which outperformed after a sustained dislocation between the two markets.

• Certain active fixed income positions were positive for results.

– The Fund's allocation to global corporate bonds added value on a relative basis.

– The Fund held an overweight position in UK government bonds, which served as a source of yield pick-up within the fixed income holdings.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 3.

UBS Global Allocation Fund

• Overall, the Fund's active currency positions were additive for performance.

– The Fund maintained an overweight to the Japanese yen relative to the euro and US dollar. The yen benefited during this volatile time for its perceived safe haven status.

– The Fund maintained an overweight to the Mexican peso relative to the Malaysian ringgit. Chinese trading partners such as Malaysia suffered amid heightened growth concerns.

• Overall, the Fund's bottom-up security selection was positive for results.

– Positive security selection came from within US equities and emerging market equities.

What didn't work:

• Certain equity trades detracted from performance during the reporting period.

– An overweight to non-US developed equities—particularly the eurozone and Japan—detracted from performance given concerns surrounding a global growth slowdown and economic linkages with China.

– The Fund's relative value trade of long Dutch versus UK equities detracted from performance.

• Certain fixed income allocations were headwinds for results.

– The Fund's overall underweight to global ex-US bonds detracted from performance. In particular, the Fund's underweight to European bonds and Japanese bonds detracted from returns as global sovereign bonds benefited from heightened risk aversion and underwhelming global economic developments.

– The Fund's performance was negatively impacted by a short US duration position, as US yields were flat to slightly down across the curve during the reporting period.

• Certain active currency positions were negative for results relative to the benchmark.

– The biggest detractor from performance was the Fund's overweight in the Swedish krona over the euro. The Swedish Riksbank cut rates and expanded their quantitative easing program and the euro rebounded from its lows, causing this trade to detract from results.

UBS Global Allocation Fund

Average annual total returns for periods ended 12/31/15 (unaudited)

	6 months			1 year			5 years			10 years
Before deducting maximum sales charge
Class A¹		(2.99	)%		(1.95	)%		3.56	%		3.20	%
Class C²		(3.26	)		(2.64	)		2.79			2.41
Class P³		(2.81	)		(1.70	)		3.86			3.49
After deducting maximum sales charge
Class A¹		(8.36	)%		(7.35	)%		2.40	%		2.62	%
Class C²		(4.21	)		(3.59	)		2.79			2.41
MSCI All Country World Index (net)⁴		(4.90	)%		(2.36	)%		6.09	%		4.76	%
Citigroup World Government Bond Index (Hedged in USD)⁵		1.99			1.30			3.93			4.19
60% MSCI All Country World Index (net)/40% Citigroup World Government Bond Index (Hedged in USD)⁶		(2.05	)		(0.68	)		5.46			4.94

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2015 prospectuses were as follows: Class A—1.39% and 1.39%; Class C—2.17% and 2.17%; Class P—1.11% and 1.11%. 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 Asset Management (Americas) Inc. (formerly, UBS Global Asset Management (Americas) Inc.), the Fund's investment advisor ("UBS 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, 2016, do not exceed 1.35% for Class A shares, 2.10% for Class C shares and 1.10% for Class P 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. The fee waiver/expense reimbursement agreement may be terminated by the Fund's Board of Trustees at any time and also will terminate automatically upon the expiration or termination of the Fund's advisory contract with the Advisor. Upon termination of the fee waiver/expense reimbursement agreement, however, UBS AM (Americas)'s three year recoupment rights will survive.

¹ Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

² 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 distribution and service fees.

⁴ The MSCI All Country World Index (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. Net total return indices reinvest dividends after the deduction of withholding taxes, using a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. 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.

⁵ The Citigroup World Government Bond Index (Hedged in USD) is an unmanaged market capitalization-weighted index designed to measure the performance of fixed-rate, local currency, investment-grade sovereign bonds with a one-year minimum maturity and is hedged back to the US dollar. Investors should note that indices do not reflect the deduction of fees and expenses.

⁶ The 60% MSCI All Country World Index (net)/40% Citigroup World Government Bond Index (Hedged in USD) is a unmanaged blended index compiled by the Advisor. 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, 2015

	Percentage of net assets
Facebook, Inc., Class A		0.9	%
Amazon.com, Inc.		0.9
Roche Holding AG		0.9
KDDI Corp.		0.7
Apple, Inc.		0.6
Alphabet, Inc., Class A		0.6
AIA Group Ltd.		0.6
Home Depot, Inc.		0.5
Unilever NV CVA		0.5
Sampo Oyj, Class A		0.5
Total		6.7	%

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

As of December 31, 2015

	Percentage of net assets
Buoni Poliennali Del Tesoro, 3.250%, due 09/01/46		1.0	%
Kingdom of Spain, 5.150%, due 10/31/44		0.9
US Treasury Notes, 3.125%, due 04/30/17		0.7
Buoni Poliennali Del Tesoro, 2.500%, due 12/01/24		0.7
New Zealand Government Bond, 4.500%, due 04/15/27		0.7
Bundesobligation, 1.250%, due 10/14/16		0.5
Government of Canada, 1.500%, due 06/01/23		0.5
Kingdom of Spain, 4.800%, due 01/31/24		0.5
Buoni Poliennali Del Tesoro, 2.100%, due 09/15/21		0.4
US Treasury Notes, 1.625%, due 11/15/22		0.4
Total		6.3	%

Country exposure by issuer, top five (unaudited)²

As of December 31, 2015

	Percentage of net assets
United States		26.6	%
Japan		6.1
United Kingdom		5.2
Germany		3.4
Italy		3.4
Total		44.7	%

¹ Figures represent the direct investments of UBS Global Allocation Fund. Figures may be different if a breakdown of the underlying investment companies was included.

²Figures 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: 30.9%, Japan: 6.1%, United Kingdom: 6.6%, Germany: 3.4%, and Italy: 3.4%.

UBS Global Allocation Fund

Industry diversification (unaudited)¹

As a percentage of net assets as of December 31, 2015

Common stocks
Aerospace & defense	0.31	%
Airlines	1.06
Auto components	0.85
Automobiles	1.19
Banks	4.06
Beverages	0.73
Biotechnology	1.58
Capital markets	0.77
Chemicals	1.40
Communications equipment	0.11
Construction materials	0.38
Consumer finance	0.44
Diversified financial services	1.04
Diversified telecommunication services	0.39
Electric utilities	0.19
Electrical equipment	0.78
Electronic equipment, instruments & components	0.51
Energy equipment & services	0.21
Food & staples retailing	0.14
Food products	1.16
Health care equipment & supplies	0.58
Health care providers & services	0.93
Hotels, restaurants & leisure	1.43
Household durables	0.56
Industrial conglomerates	0.91
Insurance	1.88
Internet & catalog retail	1.40
Internet software & services	2.04
IT services	0.76
Life sciences tools & services	0.41
Machinery	1.10
Marine	0.23
Media	0.94
Metals & mining	0.70
Multiline retail	0.26
Multi-utilities	0.14
Oil, gas & consumable fuels	1.80
Personal products	0.81
Pharmaceuticals	3.01
Professional services	0.17
Real estate investment trust (REIT)	0.84
Real estate management & development	0.31
Road & rail	0.57
Semiconductors & semiconductor equipment	1.41
Software	2.11
Specialty retail	0.99
Technology hardware, storage & peripherals	0.71

Textiles, apparel & luxury goods	0.64	%
Tobacco	0.75
Trading companies & distributors	0.42
Wireless telecommunication services	1.27
Total common stocks	47.38	%
Bonds
Mortgage & agency debt securities	0.14
US government obligations	3.70
Non-US government obligations	9.62
Total bonds	13.46	%
Investment companies
iShares JP Morgan USD Emerging Markets Bond ETF	4.56
UBS Global Corporate Bond Relationship Fund	10.39
UBS-HALO Emerging Markets Equity Relationship Fund	5.95
Total investment companies	20.90	%
Short-term investments	14.34
Options purchased	0.35
Investment of cash collateral from securities loaned	5.48
Total investments	101.91	%
Liabilities, in excess of cash and other assets	(1.91	)
Net assets	100.00	%

¹ Figures represent the direct investments of UBS Global Allocation Fund. Figures may be different if a breakdown of the underlying investment companies was included.

UBS Global Allocation Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Shares		Value
Common stocks: 47.38%
Australia: 0.42%
Westfield Corp., REIT		273,291	$	1,893,889
Austria: 0.36%
Erste Group Bank AG^*		50,922		1,599,864
Canada: 1.34%
Canadian Oil Sands Ltd.		104,300		623,373
Canadian Pacific Railway Ltd.		8,717		1,112,289
Husky Energy, Inc.		88,381		914,022
Suncor Energy, Inc.		44,145		1,139,596
Toronto-Dominion Bank		56,100		2,199,078
Total Canada common stocks				5,988,358
China: 0.88%
AIA Group Ltd.		414,517		2,492,435
Jardine Matheson Holdings Ltd.		29,900		1,456,727
Total China common stocks				3,949,162
Denmark: 0.50%
AP Moeller—Maersk A/S, Class B		803		1,049,471
Danske Bank A/S		44,816		1,208,633
Total Denmark common stocks				2,258,104
Finland: 0.51%
Sampo Oyj, Class A		44,516		2,273,755
France: 0.76%
Danone SA		31,065		2,102,566
Schneider Electric SE		22,643		1,293,359
Total France common stocks				3,395,925
Germany: 2.55%
Bayer AG		15,036		1,892,215
Daimler AG		21,960		1,851,449
E.ON SE		62,224		603,931
Fresenius SE & Co. KGaA		26,653		1,910,831
HeidelbergCement AG		15,911		1,307,567
KION Group AG^*		26,845		1,342,578
ThyssenKrupp AG		70,069		1,396,545
TUI AG		61,907		1,105,199
Total Germany common stocks				11,410,315
Ireland: 0.94%
Perrigo Co. PLC		4,420		639,574
Ryanair Holdings PLC ADR		19,792		1,711,216
Shire PLC		26,481		1,834,019
Total Ireland common stocks				4,184,809

	Shares		Value
Israel: 0.80%
Check Point Software Technologies Ltd.^*		26,300	$	2,140,294
Mellanox Technologies Ltd.^*		10,700		450,898
Mobileye NV^*1		9,671		408,890
Teva Pharmaceutical Industries Ltd. ADR		8,916		585,246
Total Israel common stocks				3,585,328
Italy: 0.87%
Autogrill SpA^*		112,267		1,076,094
Banca Mediolanum SpA		145,584		1,156,540
Intesa Sanpaolo SpA		490,368		1,645,618
Total Italy common stocks				3,878,252
Japan: 6.12%
Alps Electric Co., Ltd.		38,800		1,070,111
Hino Motors Ltd.		118,900		1,393,819
Inpex Corp.		123,600		1,219,084
Japan Airlines Co., Ltd.		58,800		2,130,977
KDDI Corp.		117,600		3,085,905
Matsui Securities Co., Ltd.¹		119,600		1,109,480
Mitsubishi UFJ Financial Group, Inc.		313,800		1,976,605
Mitsui Fudosan Co., Ltd.		4,000		101,701
NGK Spark Plug Co., Ltd.		54,200		1,449,753
Nidec Corp.		18,800		1,382,217
ORIX Corp.		134,700		1,922,525
Shin-Etsu Chemical Co., Ltd.		26,500		1,458,883
Sony Corp.		76,200		1,903,177
Sumitomo Electric Industries Ltd.		91,000		1,305,246
Sumitomo Realty & Development Co., Ltd.		45,000		1,301,011
THK Co., Ltd.		68,700		1,290,608
Toyota Industries Corp.		19,300		1,048,538
Toyota Motor Corp.		36,000		2,242,756
Total Japan common stocks				27,392,396
Netherlands: 0.78%
Heineken NV		24,245		2,075,452
Koninklijke DSM NV		19,388		975,115
NXP Semiconductors NV^*		5,062		426,474
Total Netherlands common stocks				3,477,041
Norway: 0.27%
Telenor ASA		72,420		1,213,320
Singapore: 0.28%
Avago Technologies Ltd.		8,540		1,239,581
Spain: 0.90%
Banco Bilbao Vizcaya Argentaria SA		161,809		1,185,026

UBS Global Allocation Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Shares		Value
Common stocks—(Continued)
Spain—(Concluded)
Banco Santander SA		244,705	$	1,212,123
Mediaset Espana Comunicacion SA		148,836		1,622,328
Total Spain common stocks				4,019,477
Switzerland: 1.27%
ACE Ltd.		4,700		549,195
Cie Financiere Richemont SA		18,490		1,330,999
Roche Holding AG		13,796		3,807,123
Total Switzerland common stocks				5,687,317
United Kingdom: 4.95%
Aon PLC		5,800		534,818
ARM Holdings PLC		65,053		996,413
Ashtead Group PLC		113,228		1,867,843
Associated British Foods PLC		35,180		1,733,240
Atlassian Corp. PLC, Class A^*		6,300		189,504
BP PLC		382,850		1,997,967
HSBC Holdings PLC		286,993		2,268,582
Imperial Tobacco Group PLC		40,424		2,137,305
Lloyds Banking Group PLC		1,597,288		1,720,595
London Stock Exchange Group PLC		41,737		1,688,347
Next PLC		10,774		1,157,873
Noble Corp. PLC¹		22,300		235,265
Rio Tinto Ltd.		20,298		661,312
Rio Tinto PLC		37,040		1,080,894
Unilever NV CVA		54,854		2,390,763
Vodafone Group PLC		453,963		1,479,003
Total United Kingdom common stocks				22,139,724
United States: 22.88%
Allergan PLC^*		7,223		2,257,188
Alnylam Pharmaceuticals, Inc.^*		11,223		1,056,533
Alphabet, Inc., Class A^*		3,409		2,652,236
Alphabet, Inc., Class C^*		2,027		1,538,250
Amazon.com, Inc.^*		5,948		4,020,194
American Express Co.		7,868		547,219
AMETEK, Inc.		15,424		826,572
Apple, Inc.		25,371		2,670,552
Arista Networks, Inc.^*1		6,191		481,907
Atara Biotherapeutics, Inc.^*		10,435		275,588
Best Buy Co., Inc.		15,583		474,502
Bio-Rad Laboratories, Inc., Class A^*		3,017		418,337
Carnival PLC		27,455		1,564,731
Catalent, Inc.^*		17,792		445,334
Caterpillar, Inc.		9,656		656,222
CBS Corp. (Non-Voting), Class B		17,690		833,730

	Shares		Value
CDW Corp.		9,637	$	405,140
Celgene Corp.^*		11,710		1,402,390
Charles Schwab Corp.		39,795		1,310,449
Chevron Corp.		2,173		195,483
Chimerix, Inc.^*		22,969		205,573
Citigroup, Inc.		25,145		1,301,254
Cobalt International Energy, Inc.^*		49,625		267,975
Colfax Corp.^*		9,995		233,383
Cooper Cos., Inc.		4,409		591,688
Cornerstone OnDemand, Inc.^*		11,932		412,012
Danaher Corp.		15,584		1,447,442
Delta Air Lines, Inc.		17,312		877,545
Digital Realty Trust, Inc., REIT		14,600		1,104,052
Dolby Laboratories, Inc., Class A		11,783		396,498
Dow Chemical Co.		10,229		526,589
Ecolab, Inc.		8,977		1,026,789
Eli Lilly & Co.		7,543		635,573
Envision Healthcare Holdings, Inc.^*		19,864		515,868
EOG Resources, Inc.		6,750		477,833
Estee Lauder Cos., Inc., Class A		14,225		1,252,654
Expedia, Inc.		3,647		453,322
Express Scripts Holding Co.^*		12,538		1,095,947
Facebook, Inc., Class A^*		39,641		4,148,827
First Data Corp., Class A^*1		20,042		321,073
General Electric Co.		37,680		1,173,732
General Motors Co.		35,983		1,223,782
Gilead Sciences, Inc.		12,797		1,294,928
Gulfport Energy Corp.^*		3,931		96,585
Halliburton Co.		9,833		334,715
HeartWare International, Inc.^*1		4,341		218,786
Hertz Global Holdings, Inc.^*		19,523		277,812
Home Depot, Inc.		18,399		2,433,268
Impax Laboratories, Inc.^*		11,858		507,048
Instructure, Inc.^*1		16,945		352,795
Intuitive Surgical, Inc.^*		1,862		1,016,950
Invesco Ltd.		15,300		512,244
Jabil Circuit, Inc.		17,160		399,656
Jarden Corp.^*		10,860		620,323
JPMorgan Chase & Co.		21,321		1,407,826
Lam Research Corp.		6,368		505,747
Laredo Petroleum, Inc.^*1		36,507		291,691
Lexicon Pharmaceuticals, Inc.^*1		88,575		1,178,933
Lincoln National Corp.		15,546		781,342
MacroGenics, Inc.^*		5,025		155,624
Mallinckrodt PLC^*		5,373		400,987
Martin Marietta Materials, Inc.		2,972		405,916
MasterCard, Inc., Class A		11,225		1,092,866
Maxim Integrated Products, Inc.		11,755		446,690
McDermott International, Inc.^*		113,967		381,789
McGraw Hill Financial, Inc.		10,608		1,045,737
Medicines Co.^*		12,144		453,457
MetLife, Inc.		12,878		620,848

UBS Global Allocation Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Shares		Value
Common stocks—(Concluded)
United States—(Concluded)
Micron Technology, Inc.^*		64,137	$	908,180
Microsoft Corp.		39,711		2,203,166
Mondelez International, Inc., Class A		30,319		1,359,504
Monsanto Co.		6,895		679,295
Morgan Stanley		16,066		511,059
NextEra Energy, Inc.		8,228		854,807
NIKE, Inc., Class B		24,514		1,532,125
Norfolk Southern Corp.		6,509		550,596
Oasis Petroleum, Inc.^*1		34,717		255,864
ON Semiconductor Corp.^*		39,770		389,746
PDC Energy, Inc.^*		7,060		376,863
pdvWireless, Inc.^*		8,800		242,000
pdvWireless, Inc.^*2		10,900		299,750
PepsiCo, Inc.		11,808		1,179,855
Philip Morris International, Inc.		13,639		1,199,005
Priceline Group, Inc.^*		615		784,094
Qorvo, Inc.^*		9,194		467,975
Regulus Therapeutics, Inc.^*1		30,807		268,637
salesforce.com, Inc.^*		21,271		1,667,646
SBA Communications Corp., Class A^*		6,171		648,387
ServiceNow, Inc.^*		11,018		953,718
ServiceSource International, Inc.^*		59,825		275,793
Sherwin-Williams Co.		6,091		1,581,224
Simon Property Group, Inc., REIT		4,000		777,760
Skyworks Solutions, Inc.		6,127		470,737
SM Energy Co.¹		9,026		177,451
Starbucks Corp.		27,085		1,625,913
Symantec Corp.		7,441		156,261
Synchrony Financial^*		46,665		1,419,083
Thermo Fisher Scientific, Inc.		10,098		1,432,401
Time Warner, Inc.		9,050		585,264
TJX Cos., Inc.		21,484		1,523,430
T-Mobile US, Inc.^*		11,392		445,655
TransDigm Group, Inc.^*		3,123		713,449
TripAdvisor, Inc.^*		11,561		985,575
Union Pacific Corp.		7,766		607,301
United Technologies Corp.		6,971		669,704
UnitedHealth Group, Inc.		5,520		649,373
US Bancorp		10,643		454,137
Verisk Analytics, Inc.^*		10,019		770,261
Vertex Pharmaceuticals, Inc.^*		9,893		1,244,836
Visa, Inc., Class A		22,063		1,710,986
VMware, Inc., Class A^*1		14,735		833,559
Walgreens Boots Alliance, Inc.		7,436		633,213
Walt Disney Co.		10,925		1,147,999
Western Digital Corp.		8,026		481,961
Workday, Inc., Class A^*		11,130		886,838
Yum! Brands, Inc.		14,258		1,041,546

	Shares		Value
Zimmer Biomet Holdings, Inc.		7,430	$	762,244
Total United States common stocks				102,352,757
Total common stocks (cost $208,316,640)				211,939,374
	Face amount
Bonds: 13.46%
Mortgage & agency debt securities: 0.14%
United States: 0.14%
Federal Home Loan Mortgage Corp. Gold Pools,³# G00194, 7.500%, due 02/01/24	$	19,295		21,189
Government National Mortgage Association, Series 2001-35, Class AZ, 6.500%, due 08/20/31		524,711		611,921
Total mortgage & agency debt securities (cost $720,824)				633,110
US government obligations: 3.70%
US Treasury Bonds, 2.750%, due 11/15/42		1,050,000		999,034
2.875%, due 05/15/43		915,000		890,279
2.875%, due 08/15/45¹		470,000		455,588
5.250%, due 11/15/28		195,000		254,809
5.250%, due 02/15/29		360,000		471,683
8.000%, due 11/15/21		935,000		1,249,271
US Treasury Notes, 0.875%, due 10/15/18¹		810,000		801,156
1.250%, due 11/15/18¹		1,100,000		1,098,430
1.375%, due 10/31/20		1,695,000		1,665,472
1.625%, due 12/31/19¹		830,000		830,208
1.625%, due 11/30/20		1,220,000		1,213,086
1.625%, due 11/15/22		1,945,000		1,889,431
2.125%, due 05/15/25¹		1,420,000		1,401,385
3.125%, due 04/30/17		3,250,000		3,344,624
Total US government obligations (cost $16,620,473)				16,564,456
Non-US government obligations: 9.62%
Australia: 1.14%
Commonwealth of Australia, 4.500%, due 04/15/20	AUD	2,050,000		1,637,104
4.500%, due 04/21/33		2,060,000		1,738,562

UBS Global Allocation Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Concluded)
Non-US government obligations—(Concluded)
Australia—(Concluded)
5.500%, due 04/21/23	AUD	2,000,000	$	1,734,400
				5,110,066
Canada: 0.49%
Government of Canada, 1.500%, due 06/01/23	CAD	2,950,000		2,180,915
France: 0.52%
Republic of France, 3.250%, due 04/25/16	EUR	620,000		681,222
3.750%, due 04/25/21		1,250,000		1,617,348
				2,298,570
Germany: 0.90%
Bundesobligation, 1.250%, due 10/14/16		2,230,000		2,454,027
Bundesrepublik Deutschland, 3.250%, due 07/04/21		1,225,000		1,566,528
				4,020,555
Ireland: 0.38%
Republic of Ireland, 0.800%, due 03/15/22		1,520,000		1,686,262
Italy: 2.54%
Buoni Poliennali Del Tesoro, 2.100%, due 09/15/21^4,5		1,632,323		1,974,150
2.500%, due 12/01/24		2,720,000		3,210,350
2.550%, due 09/15/41⁵		532,958		726,032
3.250%, due 09/01/46²		13,650,000		4,431,749
4.250%, due 02/01/19⁴		840,000		1,026,467
				11,368,748
New Zealand: 1.64%
New Zealand Government Bond, 2.000%, due 09/20/25	NZD	1,345,630		932,201
3.000%, due 04/15/20		2,440,000		1,674,784
4.500%, due 04/15/27		4,100,000		3,037,621
5.500%, due 04/15/23		2,170,000		1,701,889
				7,346,495
Spain: 1.77%
Kingdom of Spain, 3.300%, due 07/30/16	EUR	570,000		631,094
3.750%, due 10/31/18		920,000		1,099,687
4.800%, due 01/31/24²		1,500,000		2,041,637
5.150%, due 10/31/44²		2,700,000		4,155,978
				7,928,396

	Face amount		Value
United Kingdom: 0.24%
UK Gilts, 2.000%, due 01/22/16	GBP	735,000	$	1,084,487
Total Non-US government obligations (cost $45,732,758)				43,024,494
Total bonds (cost $63,074,055)				60,222,060
	Shares
Investment companies: 20.90%
iShares JP Morgan USD Emerging Markets Bond ETF¹		192,600		20,373,228
UBS Global Corporate Bond Relationship Fund^*6		3,518,546		46,496,184
UBS-HALO Emerging Markets Equity Relationship Fund^*6		807,248		26,597,919
Total investment companies (cost $98,148,593)				93,467,331
Short-term investments: 14.34%
Investment company: 13.89%
JPMorgan U.S. Government Money Market Fund, Capital Shares (cost $62,118,938)		62,118,938		62,118,938
	Face amount
US government obligations: 0.45%
US Treasury Bill 0.206%, due 03/31/16⁷(cost $1,998,969)	$	2,000,000		1,999,156
Total short-term investments (cost $64,117,907)				64,118,094
	Number of contracts
Options purchased: 0.35%
Call options: 0.14%
EURO STOXX 50 Index, strike @ EUR 3,500.00, expires March 2016		1,265		560,894
EURO STOXX 50 Index, strike @ EUR 3,775.00, expires March 2016		1,297		71,885
				632,779

UBS Global Allocation Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Number of contracts		Value
Options purchased—(Concluded)
Put options: 0.21%
EURO STOXX 50 Index, strike @ EUR 3,100.00, expires March 2016		1,297	$	952,832
Total options purchased (cost $2,334,297)				1,585,611

	Shares		Value
Investment of cash collateral from securities loaned: 5.48%
UBS Private Money Market Fund LLC⁶(cost $24,501,707)		24,501,707	$	24,501,707
Total investments: 101.91% (cost $460,493,199)				455,834,177
Liabilities, in excess of cash and other assets: (1.91)%				(8,523,346	)
Net assets: 100.00%			$	447,310,831

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	$	20,839,105
Gross unrealized depreciation		(25,498,127	)
Net unrealized depreciation of investments	$	(4,659,022	)

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation/ (depreciation)
BB	USD	7,893,651	MXN	137,760,000	03/18/16	$	57,172
CSI	EUR	29,385,000	USD	32,231,231	03/18/16		236,633
CSI	USD	23,713,076	JPY	2,880,700,000	03/18/16		296,997
GSI	INR	204,950,000	USD	3,018,854	03/18/16		(41,538	)
GSI	MYR	37,785,000	USD	8,748,553	03/18/16		(5,742	)
GSI	RUB	99,409,826	USD	1,388,599	03/18/16		53,284
JPMCB	AUD	1,165,000	USD	836,732	03/18/16		(9,093	)
JPMCB	CAD	895,000	USD	654,881	03/18/16		7,937
JPMCB	CHF	4,385,000	USD	4,452,455	03/18/16		60,499
JPMCB	GBP	4,100,000	USD	6,205,555	03/18/16		160,587
JPMCB	ILS	13,560,000	USD	3,523,103	03/18/16		32,757
JPMCB	NOK	10,910,000	USD	1,252,109	03/18/16		20,446
JPMCB	NZD	24,965,000	USD	16,742,278	03/18/16		(255,352	)
JPMCB	USD	1,089,892	PLN	4,335,000	03/18/16		13,627
JPMCB	USD	3,441,665	SGD	4,865,000	03/18/16		(18,882	)
SSB	JPY	137,100,000	USD	1,139,759	03/18/16		(2,943	)
SSB	SGD	2,555,000	USD	1,809,020	03/18/16		11,443
Net unrealized appreciation on forward foreign currency contracts						$	617,832

UBS Global Allocation Fund

Portfolio of investments

December 31, 2015 (unaudited)

Futures contracts

	Expiration date	Cost/ (proceeds)			Value			Unrealized appreciation/ (depreciation)
US Treasury futures buy contracts:
US Ultra Bond, 58 contracts (USD)	March 2016	$	9,139,933		$	9,203,875		$	63,942
10 Year US Treasury Notes, 665 contracts (USD)	March 2016		83,947,399			83,727,656			(219,743	)
US Treasury futures sell contracts:
2 Year US Treasury Notes, 156 contracts (USD)	March 2016		(33,902,191	)		(33,888,562	)		13,629
Index futures buy contracts:
Amsterdam Exchanges Index, 142 contracts (EUR)	January 2016		13,135,027			13,637,125			502,098
EURO STOXX 50 Index, 686 contracts (EUR)	March 2016		24,008,999			24,467,654			458,655
Hong Kong Hang Seng Index China Ent, 307 contracts (HKD)	January 2016		19,318,663			19,222,037			(96,626	)
KOSPI 200 Index, 93 contracts (KRW)	March 2016		9,525,218			9,535,563			10,345
STOXX 600 Banks Index, 905 contracts (EUR)	March 2016		8,906,824			8,949,930			43,106
TOPIX Index, 111 contracts (JPY)	March 2016		14,664,505			14,291,152			(373,353	)
Index futures sell contracts:
FTSE 100 Index, 190 contracts (GBP)	March 2016		(16,615,433	)		(17,360,473	)		(745,040	)
FTSE China A50 Index, 1,392 contracts (USD)	January 2016		(15,019,229	)		(14,574,240	)		444,989
Mini MSCI Emerging Markets Index, 290 contracts (USD)	March 2016		(11,016,230	)		(11,418,750	)		(402,520	)
Interest rate futures sell contracts:
Long Gilt, 315 contracts (GBP)	March 2016		(54,499,003	)		(54,224,835	)		274,168
Net unrealized depreciation on futures contracts								$	(26,350	)

Centrally cleared credit default swaps on credit indices—sell protection⁸

Referenced index⁹				Notional amount				Termination date				Payments received by the Fund¹⁰				Value				Unrealized depreciation				Credit spread¹¹
CDX.NA.HY. Series 24 Index				USD	26,500,000			06/20/20					5.000	%		$	1,004,243			$	(797,128	)			4.036	%

UBS Global Allocation Fund

Portfolio of investments

December 31, 2015 (unaudited)

The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 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
Assets
Common stocks	$	211,639,624		$	299,750		$	—	$	211,939,374
Mortgage & agency debt securities		—			633,110			—		633,110
US government obligations		—			16,564,456			—		16,564,456
Non-US government obligations		—			43,024,494			—		43,024,494
Investment companies		20,373,228			73,094,103			—		93,467,331
Short-term investments		62,118,938			1,999,156			—		64,118,094
Options purchased		1,585,611			—			—		1,585,611
Investment of cash collateral from securities loaned		—			24,501,707			—		24,501,707
Forward foreign currency contracts		—			951,382			—		951,382
Futures contracts		1,810,932			—			—		1,810,932
Swap agreements, at value		—			1,004,243			—		1,004,243
Total	$	297,528,333		$	162,072,401		$	—	$	459,600,734
Liabilities
Forward foreign currency contracts	$	—		$	(333,550	)	$	—	$	(333,550	)
Futures contracts		(1,837,282	)		—			—		(1,837,282	)
Total	$	(1,837,282	)	$	(333,550	)	$	—	$	(2,170,832	)

During the period ended December 31, 2015, there were no transfers between Level 1 and Level 2.

Portfolio footnotes

^* Non-income producing security.

¹ Security, or portion thereof, was on loan at December 31, 2015.

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, 2015, the value of these securities amounted to $10,929,114 or 2.44% of net assets.

³ 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.

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, 2015, the value of these securities amounted to $3,000,617 or 0.67% of net assets.

⁵ Debt security whose principal and/or interest payments are adjusted for inflation, unlike debt securities that make fixed principal and interest payments. The interest rate paid by the securities is fixed, while the principal value rises or falls based on changes in an index. Thus, if inflation occurs, the principal and interest payments on the securities are adjusted accordingly to protect investors from inflationary loss. During a deflationary period, the principal and interest payments decrease, although the securities' principal amounts will not drop below their face amounts at maturity. In exchange for the inflation protection, the securities generally pay lower interest rates than typical government securities from the issuer's country. Only if inflation occurs will securities offer a higher real yield than a conventional security of the same maturity.

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.

UBS Global Allocation Fund

Portfolio of investments

December 31, 2015 (unaudited)

Security description	Value 06/30/15		Purchases during the six months ended 12/31/15		Sales during the six months ended 12/31/15		Net realized gain during the six months ended 12/31/15		Change in net unrealized appreciation/ (depreciation) during the six months ended 12/31/15			Value 12/31/15		Net income earned from affiliate for the six months ended 12/31/15
UBS Cash Management Prime Relationship Fund	$	92,078,493	$	100,024,288	$	192,102,781	$	—	$	—		$	—	$	32,095
UBS Private Money Market Fund LLC^a		23,131,258		165,048,066		163,677,617							24,501,707		2,586
UBS-HALO Emerging Markets Equity Relationship Fund		30,420,559		—		—		—		(3,822,640	)		26,597,919		—
UBS Global Corporate Bond Relationship Fund		51,629,911		—		5,000,000		409,106		(542,833	)		46,496,184		—
	$	197,260,221	$	265,072,354	$	360,780,398	$	409,106	$	(4,365,473	)	$	97,595,810	$	34,681

^a The Advisor earns a management fee from this affiliated fund. Please see the Notes to financial statements for further information.

⁷ Rate shown is the discount rate at the date of purchase.

⁸ 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 underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the underlying securities comprising the referenced index.

⁹ Payments to the counterparty will be made upon the occurrence of bankruptcy and/or restructuring event with respect to the referenced index.

¹⁰ Payments received are based on the notional amount.

¹¹ 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.

See accompanying notes to financial statements.
36

UBS Asset Growth Fund

Portfolio performance

For the six months ended December 31, 2015, Class A shares of UBS Asset Growth Fund returned -12.84% (Class A shares fell -17.66% after the deduction of the maximum sales charge), while Class P shares returned -12.83%. The Fund's benchmark, the MSCI World Free Index (net) (the "Index") returned -3.41%. (Class P shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 39; 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 negative return during the reporting period and underperformed the benchmark.

During the reporting period, we used derivatives for risk management purposes and as a tool to help enhance returns across various strategies. With respect to our active currency strategy, the utilization of currency futures had a direct negative impact on Fund performance. Various equity and fixed income futures and exchange traded funds (ETFs) were used to implement our market allocation strategy. Derivatives were just one tool, among others, that we used to implement our market allocation strategy. In aggregate, these derivatives detracted from performance relative to the benchmark during the reporting period.

Portfolio performance summary¹

What worked:

• Certain currency positions generated positive absolute returns.

– The Fund's short position in the British pound was positive for performance, as the currency depreciated over the reporting period due to soft UK economic data.

– The Fund's long position in the Japanese yen was additive to performance as the currency benefited from a perceived safe haven currency status during volatile markets over the reporting period.

What didn't work:

• The Fund's position in fixed income securities was negative for results.

– The Fund held positions in US credit, both investment grade and high yield, which negatively impacted performance. Credit spreads widened during the reporting period, creating negative price action on corporate credit.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 3.

UBS Asset Growth Fund

• Certain equity positions detracted from performance.

– The Fund was hurt by a long position in emerging market equities, which underperformed during the period driven primarily by investor fear concerning a slowdown in Chinese growth.

– The Fund's long exposure to developed ex-US equities—particularly the eurozone, UK and Japan—detracted from performance given concerns surrounding a global growth slowdown and economic linkages with China.

• Leverage detracted from the Fund's performance.

– The Fund maintains a volatility target of 15% or less annually. During the reporting period, market volatility and Fund realized volatility was relatively heightened and, therefore, the Fund's leverage was adjusted throughout the period in an attempt to maintain the Fund's target volatility of 15%. The Fund's leverage ranged from unlevered to 170%. Since the Fund maintained leverage throughout a period where some of its market allocations were negative, leverage detracted from performance.

UBS Asset Growth Fund

Average annual total returns for periods ended 12/31/15 (unaudited)

	6 months			1 year			5 years			Inception¹
Before deducting maximum sales charge
Class A²		(12.84	)%		(9.31	)%		1.80	%		(0.38	)%
Class C³		(13.17	)		(10.01	)		1.03			(1.12	)
Class P⁴		(12.83	)		(9.20	)		2.02			(0.14	)
After deducting maximum sales charge
Class A²		(17.66	)%		(14.33	)%		0.66	%		(1.04	)%
Class C³		(14.04	)		(10.91	)		1.03			(1.12	)
MSCI World Free Index (net)⁵		(3.41	)%		(0.87	)%		7.59	%		2.76	%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2015 prospectuses were as follows: Class A—2.49% and 1.61%; Class C—3.27% and 2.36%; Class P—2.26% and 1.36%. 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 Asset Management (Americas) Inc. (formerly, UBS Global Asset Management (Americas) Inc.), the Fund's investment advisor ("UBS 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, 2016, do not exceed 1.40% for Class A shares, 2.15% for Class C shares and 1.15% for Class P 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. The fee waiver/expense reimbursement agreement may be terminated by the Fund's Board of Trustees at any time and also will terminate automatically upon the expiration or termination of the Fund's advisory contract with the Advisor. Upon termination of the fee waiver/expense reimbursement agreement, however, the UBS AM (Americas)'s three year recoupment rights will survive.

¹ Inception date of all share classes of UBS Asset Growth Fund and the index is July 26, 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 distribution and service fees.

⁴ Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

UBS Asset Growth Fund

Industry diversification (unaudited)¹

As a percentage of net assets as of December 31, 2015

Investment companies
iShares Emerging Markets Local Currency Bond ETF	1.34	%
iShares iBoxx $ High Yield Corporate Bond ETF	14.57
iShares iBoxx $ Investment Grade Corporate Bond ETF	12.97
iShares JP Morgan USD Emerging Markets Bond ETF	1.32
iShares MSCI Switzerland Capped ETF	4.47
iShares TIPS Bond ETF	11.55
SPDR Barclays Convertible Securities ETF	2.47
Total investment companies	48.69	%
Short-term investment	49.67
Investment of cash collateral from securities loaned	8.17
Total investments	106.53	%
Liabilities, in excess of cash and other assets	(6.53	)
Net assets	100.00	%

¹ Figures represent the direct investments of UBS Asset Growth Fund. Figures may be different if a breakdown of the underlying investment companies was included.

UBS Asset Growth Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Shares		Value
Investment companies: 48.69%
iShares Emerging Markets Local Currency Bond ETF		7,062	$	284,705
iShares iBoxx $ High Yield Corporate Bond ETF¹		38,486		3,101,202
iShares iBoxx $ Investment Grade Corporate Bond ETF		24,226		2,762,006
iShares JP Morgan USD Emerging Markets Bond ETF¹		2,659		281,269
iShares MSCI Switzerland Capped ETF¹		30,686		952,494
iShares TIPS Bond ETF		22,408		2,457,709
SPDR Barclays Convertible Securities ETF		12,140		525,419
Total investment companies (cost $10,721,665)				10,364,804
Short-term investment: 49.67%
Investment company: 49.67%
JPMorgan US Government Money Market Fund, Capital Shares (cost $10,574,746)		10,574,746		10,574,746

	Shares		Value
Investment of cash collateral from securities loaned: 8.17%
UBS Private Money Market Fund LLC²(cost $1,739,652)		1,739,652	$	1,739,652
Total investments: 106.53% (cost $23,036,063)				22,679,202
Liabilities, in excess of cash and other assets: (6.53)%				(1,388,205	)
Net assets: 100.00%			$	21,290,997

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	$	—
Gross unrealized depreciation		(356,861	)
Net unrealized depreciation of investments	$	(356,861	)

Futures contracts

	Expiration date	Cost/ (proceeds)			Value			Unrealized appreciation/ (depreciation)
Index futures buy contracts:
E-mini S&P 500 Index, 46 contracts (USD)	March 2016	$	4,694,059		$	4,681,421		$	(12,638	)
EURO STOXX 50 Index, 116 contracts (EUR)	March 2016		4,043,262			4,137,387			94,125
FTSE 100 Index, 36 contracts (GBP)	March 2016		3,143,687			3,289,353			145,666
Mini MSCI Emerging Markets Index, 90 contracts (USD)	March 2016		3,513,420			3,543,750			30,330
SPI 200 Index, 17 contracts (AUD)	March 2016		1,523,131			1,628,079			104,948
TOPIX Index, 19 contracts (JPY)	March 2016		2,468,712			2,446,233			(22,479	)
Currency futures buy contracts:
Australian Dollar, 11 contracts (USD)	March 2016		795,100			799,261			4,161
Euro, 12 contracts (USD)	March 2016		1,630,971			1,632,900			1,929
Great Britain Pound, 19 contracts (USD)	March 2016		1,788,646			1,749,662			(38,984	)
Japanese Yen, 4 contracts (USD)	March 2016		406,457			416,625			10,168
Currency futures sell contracts:
Swiss Franc, 6 contracts (USD)	March 2016		(753,814	)		(752,400	)		1,414
Net unrealized appreciation on futures contracts								$	318,640

UBS Asset Growth Fund

Portfolio of investments

December 31, 2015 (unaudited)

The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 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
Assets
Investment companies	$	10,364,804		$	—	$	—	$	10,364,804
Short-term investment		10,574,746			—		—		10,574,746
Investment of cash collateral from securities loaned		—			1,739,652		—		1,739,652
Futures contracts		392,741			—		—		392,741
Total	$	21,332,291		$	1,739,652	$	—	$	23,071,943
Liabilities
Futures contracts	$	(74,101	)	$	—	$	—	$	(74,101	)

During the period ended December 31, 2015, there were no transfers between Level 1 and Level 2.

Portfolio footnotes

¹ Security, or portion thereof, was on loan at December 31, 2015.

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 06/30/15		Purchases during the six months ended 12/31/15		Sales during the six months ended 12/31/15		Value 12/31/15		Net income earned from affiliate for the six months ended 12/31/15
UBS Cash Management Prime Relationship Fund	$	8,911,211	$	19,555,567	$	28,466,778	$	—	$	4,232
UBS Private Money Market Fund LLC^a		4,817,108		20,206,016		23,283,472		1,739,652		246
	$	13,728,319	$	39,761,583	$	51,750,250	$	1,739,652	$	4,478

^a The Advisor earns a management fee from this affiliated fund. Please see the Notes to financial statements for further information.

See accompanying notes to financial statements.
42

UBS International Sustainable Equity Fund (formerly, UBS Global Sustainable Equity Fund)

Please note: Effective on October 28, 2015, UBS Global Sustainable Equity Fund was renamed UBS International Sustainable Equity Fund, with the fund's benchmark changing from the MSCI World Free Index (net) to the MSCI World Free ex USA Index (net). The fund's investment objective and policies as stated in the fund's prospectus remained the same, as did the portfolio management team and the investment process used for security selection.

Portfolio performance

For the six months ended December 31, 2015, Class A shares of UBS International Sustainable Equity Fund (the "Fund") returned -8.84% (Class A shares returned -13.85% after the deduction of the maximum sales charge), while Class P shares returned -8.71%. The Fund's benchmark, the MSCI World Free ex USA Index (net) (the "Index"), returned -7.07%. The Fund's previous benchmark, the MSCI World Free Index (net) returned -3.41%. (Class P shares have lower expenses than other share classes in the series. Returns for all share classes over various time periods are shown on page 46; 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 during the reporting period, primarily due to stock selection. Sector allocation was also a drag on results, albeit to a lesser extent.

Portfolio performance summary¹

What worked

• Several individual stocks had a positive impact on performance.

– Ono Pharmaceutical Co., a Japanese pharmaceutical company, was among the Fund's largest contributors to performance during the reporting period. Its shares rallied sharply as a number of its new products performed well, including Opdivo, a treatment for liver cancer. Against this backdrop, a number of analysts upgraded their outlook for the company.

– Olympus Corp., headquartered in Japan, has a variety of products, including cameras, medical endoscopes and other medical devices. Its shares had been negatively impacted by a corporate scandal, but its new management team has helped to regain confidence in the company. In particular, Olympus has benefited from continued strong results from its endoscopy business and several of its newer cameras have performed well.

– SAP SE is a German multinational software company that makes enterprise software to manage business operations and customer relations. The company offers a full range of cloud computing solutions that have performed well and helped to boost its share price.

– KDDI Corp., one of three of Japan's telecommunications companies, was the Fund's largest contributor to performance during the reporting period. Its shares moved higher, driven by increased profit growth due to a decline in competition and, therefore, diminishing marketing costs and increased pricing power. (For additional details, see "Portfolio Highlights.")

• From a sector allocation perspective, an underweight to energy and an overweight to information technology were the most beneficial to the Fund's relative performance. The Fund's overall sector allocations are a by-product of our bottom-up stock selection process.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 3.

UBS International Sustainable Equity Fund (formerly, UBS Global Sustainable Equity Fund)

What didn't work

• Stock selection drove the Fund's underperformance during the reporting period.

– A.P. Moeller-Maersk is a Danish business conglomerate with activities in a variety of business sectors, primarily within the transportation and energy sectors. It was the Fund's largest detractor from results during the reporting period. (For additional details, see "Portfolio Highlights.")

– Alnylam Pharmaceutical is a US-based biopharmaceutical company that specializes in RNAi therapeutics and gene silencing technology. Its shares were dragged down by negative investor sentiment for the overall biotechnology industry, and we eliminated the Fund's position during the reporting period.

– Mallinckrodt Pub Ltd Co. is a global specialty biopharmaceutical company. Investor sentiment for the firm was weak given concerns regarding its product line and news stories regarding excessive drug prices. Given these issues and its less attractive new product pipeline, we eliminated the position from the portfolio.

– Statoil Asa is a multinational oil and gas company headquartered in Norway. It is a fully integrated petroleum company with operations in 36 countries. Its shares were negatively impacted by falling oil prices, which subsequently resulted in Statoil cancelling a number of projects.

• Sector allocation, overall, was negative for results during the reporting period. An overweight to materials, along with underweights to consumer staples and utilities, were the largest detractors from the Fund's relative performance.

Portfolio highlights

• KDDI Corp., one of three of Japan's telecommunications companies, was among the Fund's largest contributors to performance during the reporting period. The company provides a full range of services, from fixed-line to cellular, primarily in its domestic market. The company has previously grown its market share through competitive measures, such as product differentiation, and was successful in doing so. However, the competitive landscape has changed, as all three Japanese telecommunication companies have turned their focus away from gaining market share to growing profits. As a result, all three now have virtually undifferentiated offerings. Among the three companies, KDDI is currently trading at the most attractive valuation. Furthermore, as the Japanese telecommunication market becomes less competitive and more oligopolistic, we believe KDDI should see the biggest share price gains as its profitability increases.

• A.P. Moeller-Maersk operates primarily in transportation and energy. The company's share price has been weak, as it has been adversely affected by falling oil prices, and its container shipping business is currently suffering from oversupply. Trade demand has been weaker than expected, particularly over the last six months. We continue to hold the stock, as we believe it has many opportunities to improve its efficiency in the long term. However, in light of recent market headwinds we trimmed the position.

UBS International Sustainable Equity Fund (formerly, UBS Global Sustainable Equity Fund)

• Toward the end of the reporting period, we started a new position in Roche, a major pharmaceutical company listed in Switzerland. The company has strong franchises in cancer and diagnostics and has recently started to develop drugs in the area of immune-oncology. Together with Bristol-Myers and Merck, Roche has become the leader in this promising field. Outside of oncology, the company has several promising drugs in development for the treatment of Multiple Sclerosis and Hemophilia, the potential of which we believe is undervalued by the market.

UBS International Sustainable Equity Fund (formerly, UBS Global Sustainable Equity Fund)

Average annual total returns for periods ended 12/31/15 (unaudited)

	6 months			1 year			5 years			10 years
Before deducting maximum sales charge
Class A¹		(8.84	)%		(1.34	)%		3.10	%		3.10	%
Class C²		(9.18	)		(2.10	)		2.33			2.33
Class P³		(8.71	)		(1.12	)		3.36			3.34
After deducting maximum sales charge
Class A¹		(13.85	)%		(6.78	)%		1.95	%		2.52	%
Class C²		(10.08	)		(3.07	)		2.33			2.33
MSCI World Free ex USA Index (net)^4,6		(7.07	)%		(3.04	)%		2.79	%		2.92	%
MSCI World Free Index (net)^5,6		(3.41	)		(0.87	)		7.59			4.98

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2015 prospectuses were as follows: Class A—2.47% and 1.25%; Class C—3.23% and 2.00%; Class P—2.21% 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 Asset Management (Americas) Inc. (formerly, UBS Global Asset Management (Americas) Inc.), the Fund's investment advisor ("UBS 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 C shares and 1.00% for Class P shares. This fee waiver and expense arrangement may only be amended or terminated by shareholders.

¹ Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

² 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 distribution and service fees.

⁴ The MSCI World 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. Net total return indices reinvest dividends after the deduction of withholding taxes, using a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. 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 Effective October 28, 2015, the MSCI World ex USA Index (net) replaced the MSCI World Free Index (net) as the Fund's primary benchmark index because it more closely aligns with the Fund's investment strategy.

UBS International Sustainable Equity Fund (formerly, UBS Global Sustainable Equity Fund)

Top ten equity holdings (unaudited)

As of December 31, 2015

	Percentage of net assets
Next PLC		3.1	%
Toyota Motor Corp.		3.0
Sumitomo Mitsui Financial Group, Inc.		2.8
Statoil ASA		2.7
Zurich Insurance Group AG		2.2
Berkeley Group Holdings PLC		2.1
Mahindra & Mahindra Ltd. GDR		2.1
NXP Semiconductors NV		2.1
KDDI Corp.		2.1
Koninklijke DSM NV		2.1
Total		24.3	%

Country exposure by issuer, top five (unaudited)

As of December 31, 2015

	Percentage of net assets
Japan		23.1	%
United Kingdom		21.1
Germany		6.0
Norway		5.5
Spain		5.3
Total		61.0	%

Industry diversification (unaudited)

As a percentage of net assets as of December 31, 2015

Common stocks
Airlines	1.89	%
Auto components	1.02
Automobiles	6.19
Banks	12.36
Building products	1.05
Capital markets	0.86
Chemicals	5.85
Construction materials	1.09
Diversified telecommunication services	1.10
Electrical equipment	1.18
Electronic equipment, instruments & components	1.06
Food products	0.97
Health care equipment & supplies	2.78
Household durables	3.11
Household products	2.84
Insurance	7.90
IT services	1.44
Machinery	2.70
Marine	0.88
Media	1.95
Metals & mining	1.69
Multiline retail	3.13
Oil, gas & consumable fuels	2.69
Personal products	3.02
Pharmaceuticals	9.14
Professional services	1.80
Real estate investment trust (REIT)	1.55
Real estate management & development	1.23
Semiconductors & semiconductor equipment	5.21
Software	1.60
Specialty retail	2.01
Technology hardware, storage & peripherals	2.00
Trading companies & distributors	1.26
Wireless telecommunication services	2.09
Total common stocks	96.64	%
Short-term investment	2.29
Investment of cash collateral from securities loaned	4.66
Total investments	103.59	%
Liabilities, in excess of cash and other assets	(3.59	)
Net assets	100.00	%

UBS International Sustainable Equity Fund (formerly, UBS Global Sustainable Equity Fund)

Portfolio of investments

December 31, 2015 (unaudited)

	Shares		Value
Common stocks: 96.64%
Australia: 1.55%
Mirvac Group		284,531	$	410,529
China: 1.86%
Industrial & Commercial Bank of China Ltd., H Shares		812,000		490,340
Denmark: 1.95%
AP Moeller - Maersk A/S, Class B		178		232,635
Novo Nordisk A/S, Class B		4,868		283,480
Total Denmark common stocks				516,115
France: 5.13%
AXA SA		9,755		267,469
Ingenico Group SA		2,220		281,066
Sanofi		2,611		223,028
Schneider Electric SE		5,486		313,358
Valeo SA		1,736		268,935
Total France common stocks				1,353,856
Germany: 5.98%
Bayerische Motoren Werke AG		2,546		270,129
Carl Zeiss Meditec AG		11,157		346,165
Deutsche Bank AG		9,287		227,337
Infineon Technologies AG		21,378		313,755
SAP SE		5,310		423,450
Total Germany common stocks				1,580,836
Hong Kong: 1.23%
Sun Hung Kai Properties Ltd.		27,000		326,088
India: 4.90%
ICICI Bank Ltd. ADR		45,300		354,699
Infosys Ltd. ADR		22,700		380,225
Mahindra & Mahindra Ltd. GDR		29,200		560,640
Total India common stocks				1,295,564
Indonesia: 1.09%
Indocement Tunggal Prakarsa Tbk PT		177,400		287,302
Ireland: 0.89%
Shire PLC		3,407		235,962
Italy: 2.05%
Intesa Sanpaolo SpA		161,691		542,616
Japan: 23.11%
Astellas Pharma, Inc.		37,800		544,538
Canon, Inc.¹		17,300		528,953
Fast Retailing Co., Ltd.		1,500		532,135
Kao Corp.		5,300		275,814

	Shares		Value
KDDI Corp.		21,000	$	551,055
Olympus Corp.		9,700		387,370
Ono Pharmaceutical Co., Ltd.		2,000		360,914
Panasonic Corp.		25,000		258,018
Shin-Etsu Chemical Co., Ltd.		4,400		242,230
Sumitomo Mitsui Financial Group, Inc.		19,200		735,764
THK Co., Ltd.		13,700		257,370
Tokio Marine Holdings, Inc.		9,400		368,508
Toyota Motor Corp.		12,900		803,654
Unicharm Corp.		12,600		259,663
Total Japan common stocks				6,105,986
Netherlands: 5.13%
ASML Holding NV		2,820		252,986
Koninklijke DSM NV		10,861		546,252
NXP Semiconductors NV*		6,606		556,555
Total Netherlands common stocks				1,355,793
Norway: 5.48%
Norsk Hydro ASA		119,004		445,408
Statoil ASA¹		50,887		711,136
Telenor ASA		17,334		290,413
Total Norway common stocks				1,446,957
Spain: 5.29%
Banco Bilbao Vizcaya Argentaria SA		61,312		449,025
Banco Santander SA		87,474		433,294
Mediaset Espana Comunicacion SA		47,189		514,365
Total Spain common stocks				1,396,684
Sweden: 2.04%
Assa Abloy AB, Class B		13,161		277,518
Nordea Bank AB		23,640		261,284
Total Sweden common stocks				538,802
Switzerland: 5.06%
Novartis AG		5,270		456,705
Roche Holding AG		1,126		310,729
Zurich Insurance Group AG*		2,210		570,152
Total Switzerland common stocks				1,337,586
Taiwan: 0.97%
Uni-President Enterprises Corp.		153,000		255,722
United Kingdom: 21.05%
ARM Holdings PLC		16,483		252,469
Ashtead Group PLC		20,113		331,790
Aviva PLC		49,238		374,547
Berkeley Group Holdings PLC		10,349		562,660
Capita PLC		26,685		475,215
Croda International PLC		5,827		261,313

UBS International Sustainable Equity Fund (formerly, UBS Global Sustainable Equity Fund)

Portfolio of investments

December 31, 2015 (unaudited)

	Shares		Value
Common stocks—(Concluded)
United Kingdom—(Concluded)
easyJet PLC		19,502	$	500,247
Next PLC		7,689		826,331
Prudential PLC		22,409		505,771
Reckitt Benckiser Group PLC		5,305		491,214
Unilever NV CVA		12,002		523,097
Weir Group PLC		31,014		457,208
Total United Kingdom common stocks				5,561,862
United States: 1.88%
LyondellBasell Industries NV, Class A		5,700		495,330
Total common stocks (cost $26,280,741)				25,533,930

	Shares		Value
Short-term investment: 2.29%
Investment company: 2.29%
JPMorgan U.S. Government Money Market Fund, Capital Shares (cost $604,522)		604,522	$	604,522
Investment of cash collateral from securities loaned: 4.66%
UBS Private Money Market Fund LLC²(cost $1,229,986)		1,229,986		1,229,986
Total investments: 103.59% (cost $28,115,249)				27,368,438
Liabilities, in excess of cash and other assets: (3.59)%				(948,248	)
Net assets: 100.00%			$	26,420,190

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	$	1,162,574
Gross unrealized depreciation		(1,909,385	)
Net unrealized depreciation of investments	$	(746,811	)

The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 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
Assets
Common stocks	$	25,533,930	$	—	$	—	$	25,533,930
Short-term investment		604,522		—		—		604,522
Investment of cash collateral from securities loaned		—		1,229,986		—		1,229,986
Total	$	26,138,452	$	1,229,986	$	—	$	27,368,438

During the period ended December 31, 2015, there were no transfers between Levels 1 and Level 2.

Portfolio footnotes

* Non-income producing security.

¹ Security, or portion thereof, was on loan at December 31, 2015.

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.

UBS International Sustainable Equity Fund (formerly, UBS Global Sustainable Equity Fund)

Portfolio of investments

December 31, 2015 (unaudited)

Security description	Value 6/30/15		Purchases during the six months ended 12/31/15		Sales during the six months ended 12/31/15		Value 12/31/15		Net income earned from affiliate for the six months ended 12/31/15
UBS Cash Management Prime Relationship Fund	$	608,651	$	8,378,569	$	8,987,220	$	—	$	164
UBS Private Money Market Fund LLC^a		785,656		7,719,738		7,275,408		1,229,986		57
	$	1,394,307	$	16,098,307	$	16,262,628	$	1,229,986	$	222

^a The Advisor earns a management fee from this affiliated fund. Please see the Notes to financial statements for further information.

See accompanying notes to financial statements
50

UBS U.S. Large Cap Equity Fund

Portfolio performance

For the six months ended December 31, 2015, Class A shares of UBS U.S. Large Cap Equity Fund (the "Fund") returned -6.50% (Class A shares returned -11.63% after the deduction of the maximum sales charge), while Class P shares returned -6.39%. The Fund's benchmark, the Russell 1000 Index (the "Index"), returned -0.78% over the same time period. (Class P shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 54; 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 underperformed the Index primarily due to stock selection.

Portfolio performance summary¹

What worked

• Amazon.com was the largest positive contributor for the six months ended December 31, 2015, with a gain of 56%. Since the company began disclosing the financial results of its Amazon Web Services segment, it has become clear that Amazon is much more than a web retailer. Amazon dominates the rapidly growing cloud services market. This segment is already profitable for the company and should realize increasing profit margins as it reaches scale.

• Several stock selection decisions made a significant contribution to Fund performance.

– Shares of Lexicon Pharmaceuticals, a biopharmaceutical company, traded higher after Lexicon inked a licensing and collaboration deal with Sanofi for its experimental drug developed for the treatment of type 1 and type 2 diabetes. This news followed Lexicon's announcement that another experimental drug met its primary endpoint in a pivotal late-stage trial as a potential treatment for cancer patients with carcinoid syndrome.

– The Fund was underweight to Apple during the six months. As the stock dropped on concerns over weakness in iPhone orders, it benefited the Fund's relative returns. We gradually reduced the Fund's position in Apple over the course of 2015, fully selling out of the name in the fourth quarter. We believe that exposure to semiconductor component companies is a more attractive way to play the long-term bet on smartphones.

• An overweight to the consumer staples sector, as well as successful stock selection within the sector, contributed positively to Fund returns.

– Philip Morris raised its full-year earnings outlook after reporting third-quarter 2015 results that topped Wall Street estimates. Despite weaker-than-expected sales in the European Union, the cigarette company's organic volume, market share and pricing trends remain robust against the background of an improved macroeconomic environment in the region. (For details, see "Portfolio highlights.")

– The stock price of Mondelez International was up during the six-month period. The snack food giant, which has benefitted from strong category growth in cookies and chocolate worldwide, announced positive progress on its cost reduction initiative and unveiled its strategy to accelerate growth. The company's strengths can be seen in multiple areas, including expanding profit margins and notable return on equity. (For details, see "Portfolio highlights.")

¹ For a detailed commentary on the market environment in general during the reporting period, see page 3.

UBS U.S. Large Cap Equity Fund

• The Fund's overweight to the information technology sector also benefited relative returns.

What didn't work

• The Fund's overweight to health care stocks, as well as certain names within the sector, negatively impacted relative returns. The sector was down overall following a period of heightened volatility, indiscriminate selling and concerns stemming from populist presidential campaign rhetoric.

– Chimerix, Inc. was the largest stock detractor during the six-month period. The development-stage biotechnology company is working to advance an antiviral treatment for double-stranded DNA viruses. Its stock price plunged in the last week of December 2015 on news that a key Phase 3 trial did not meet its primary endpoint. Though our risk models had fully considered the possibility, it was a major setback for the stock. Despite that, we believe there is great value in the franchise, and that the company now presents a potentially attractive takeover target.

– Shares of Envision Healthcare Holdings traded lower during the reporting period. The health-care company, which provides physician-led, outsourced medical services, executed poorly on new emergency department contracts. However, the issues appear to be contained and should be fixable over the next several quarters. In addition, we believe the stock was unfairly penalized by a broader sector-wide rotation away from companies that benefit from improving utilization.

• Several individual stock positions in various industries made a negative contribution to the Fund's returns.

– Colfax Corporation, an industrial manufacturing and engineering firm, traded lower on concerns about emerging market growth, foreign currency exchange and energy/ infrastructure demand. We expect near-term conditions to remain challenging, but are confident that Colfax has a robust long-term opportunity set for margins to improve. In addition, our research indicates that potential merger and acquisition activity could add value to the company.

– The decision not to hold Microsoft Corporation was a top detractor, as the stock rose during the fourth quarter of 2015 on stronger-than-expected earnings. Although the market responded positively when the business software and services giant unveiled a suite of new products and opened its first flagship store in New York City, we believe more attractive long-term price/value opportunities exist elsewhere in the technology sector.

– The stock price of YUM! Brands, the quick-service restaurant company, declined 18% during the six months. We believe the market is undervaluing the long-term franchise value of KFC and Pizza Hut restaurants in China, where unit growth has accelerated in recent years. We continue to hold the stock.

• The decision not to hold any utilities names detracted from Fund performance, as the sector was up 6% within the benchmark during the six months.

UBS U.S. Large Cap Equity Fund

Portfolio highlights

• Philip Morris is a leading player in the global cigarette and tobacco market. We believe the market underappreciates the persistence and predictability of the company's cash flows and its returns to shareholders. Philip Morris's regulatory and consumption risk is well-diversified across 180 markets around the globe. The company has proven its ability to accurately model demand for its products in spite of the complexities surrounding regulation, taxation and demographics.

• Mondelez International manufactures and markets snack food and beverages including cookies, crackers, chocolate, gum, candy, coffee, powdered beverages, and various cheese and grocery products. Cookies and chocolate are experiencing strong category growth in developing markets. We believe Mondelez is well-positioned to benefit from its geographic exposure and strong operations in the BRICS countries (Brazil, Russia, India, China and South Africa) and in next wave markets like Indonesia and the Middle East. In addition, we see potential for restructuring in the company's developed markets business, which represents an attractive opportunity to improve profit margins.

• PepsiCo is a worldwide food and beverage company with a product portfolio that includes more than 20 billion-dollar brands. We believe the market is mispricing the relative attractiveness of PepsiCo's Frito-Lay business in developed and developing countries, and we see potential for improved pricing in the carbonated soft drink category to offer further upside on the stock.

• Alnylam Pharmaceuticals is a biotechnology company developing a unique platform technology based on RNA interference (RNAi) science. This technology has the potential to effectively silence disease-causing genes, and while it is still early in development, there have been significant value-creating advances over the past two years. We believe the value of Alnylam's platform technology will rise substantially as scientists continue to discover disease-causing genes at an increasing rate.

• Praxair produces, sells and distributes atmospheric, process and specialty gases, as well as surface coatings. We believe the company has a high-quality franchise, with local scale and density-based competitive advantages in attractive markets such as North America and Brazil. Praxair's strong management team and culture drive best-in-class operating efficiency and strategic capital deployment. In addition, the company's stable cash-flow profile allows Praxair to issue large amounts of debt cheaply, creating capital deployment arbitrage opportunities.

UBS U.S. Large Cap Equity Fund

Average annual total returns for periods ended 12/31/15 (unaudited)

	6 months			1 year			5 years			10 years
Before deducting maximum sales charge
Class A¹		(6.50	)%		(1.08	)%		10.92	%		5.52	%
Class C²		(6.86	)		(1.83	)		10.09			4.73
Class P³		(6.39	)		(0.83	)		11.21			5.79
After deducting maximum sales charge
Class A¹		(11.63	)%		(6.53	)%		9.68	%		4.92	%
Class C²		(7.79	)		(2.81	)		10.09			4.73
Russell 1000 Index⁴		(0.78	)%		0.92	%		12.44	%		7.40	%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2015 prospectuses were as follows: Class A—1.56% and 1.20%; Class C—2.31% and 1.95%; Class P—1.07% 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 Asset Management (Americas) Inc. (formerly, UBS Global Asset Management (Americas) Inc.), the Fund's investment advisor ("UBS 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, 2016, do not exceed 1.20% for Class A shares, 1.95% for Class C shares and 0.95% for Class P 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. The fee waiver/expense reimbursement agreement may be terminated by the Fund's Board of Trustees at any time and also will terminate automatically upon the expiration or termination of the Fund's advisory contract with the Advisor. Upon termination of the fee waiver/expense reimbursement agreement, however, the UBS AM (Americas)'s three year recoupment rights will survive.

¹ Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

² 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 distribution and service fees.

⁴ 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 1,000 of the largest securities based on a combination of their market cap and current index membership. 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)¹

As of December 31, 2015

	Percentage of net assets
Philip Morris International, Inc.		3.5	%
PepsiCo, Inc.		2.9
JPMorgan Chase & Co.		2.7
Walt Disney Co.		2.6
Citigroup, Inc.		2.3
Mondelez International, Inc., Class A		2.3
Amazon.com, Inc.		2.2
Yum! Brands, Inc.		2.1
US Bancorp		2.0
Walgreens Boots Alliance, Inc.		1.9
Total		24.5	%

Industry diversification (unaudited)¹

As a percentage of net assets as of December 31, 2015

Common stocks
Aerospace & defense	1.21	%
Automobiles	2.31
Banks	7.04
Beverages	2.90
Biotechnology	4.01
Capital markets	2.24
Chemicals	2.55
Communications equipment	0.68
Consumer finance	1.71
Electronic equipment, instruments & components	2.54
Energy equipment & services	1.45
Food & staples retailing	1.90
Food products	2.30
Health care equipment & supplies	0.48
Health care providers & services	2.82
Hotels, restaurants & leisure	2.14
Household durables	0.79
Insurance	5.45
Internet & catalog retail	3.15
Internet software & services	2.55
IT services	3.03
Life sciences tools & services	0.84
Machinery	1.78
Media	4.74
Oil, gas & consumable fuels	3.84
Pharmaceuticals	8.18
Real estate investment trust (REIT)	3.50
Road & rail	2.72
Semiconductors & semiconductor equipment	7.36
Software	3.70
Specialty retail	0.94
Technology hardware, storage & peripherals	0.98
Tobacco	3.51
Wireless telecommunication services	0.92
Total common stocks	96.26	%
Investment company
SPDR S&P 500 ETF Trust	2.35
Short-term investment	1.49
Investment of cash collateral from securities loaned	7.29
Total investments	107.39	%
Liabilities, in excess of cash and other assets	(7.39	)
Net assets	100.00	%

¹ Figures represent the direct investments of UBS U.S. Large Cap Equity Fund. Figures may be different if a breakdown of the underlying investment companies was included.

UBS U.S. Large Cap Equity Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Shares		Value
Common stocks: 96.26%
Aerospace & defense: 1.21%
United Technologies Corp.		4,915	$	472,184
Automobiles: 2.31%
Ford Motor Co.		24,727		348,403
General Motors Co.		16,248		552,595
				900,998
Banks: 7.04%
Citigroup, Inc.		17,706		916,285
JPMorgan Chase & Co.		16,184		1,068,630
US Bancorp		17,901		763,836
				2,748,751
Beverages: 2.90%
PepsiCo, Inc.		11,322		1,131,294
Biotechnology: 4.01%
Alnylam Pharmaceuticals, Inc.*		6,650		626,031
Atara Biotherapeutics, Inc.*¹		5,167		136,460
Chimerix, Inc.*		14,109		126,276
Lexicon Pharmaceuticals, Inc.*¹		40,126		534,077
MacroGenics, Inc.*		1,336		41,376
Regulus Therapeutics, Inc.*¹		6,601		57,561
TG Therapeutics, Inc.*		3,584		42,757
				1,564,538
Capital markets: 2.24%
Invesco Ltd.		11,300		378,324
Morgan Stanley		15,629		497,158
				875,482
Chemicals: 2.55%
Monsanto Co.		5,532		545,013
Praxair, Inc.		4,381		448,614
				993,627
Communications equipment: 0.68%
Arista Networks, Inc.*¹		3,423		266,446
Consumer finance: 1.71%
American Express Co.		9,597		667,471
Electronic equipment, instruments & components: 2.54%
CDW Corp.		8,487		356,793
Dolby Laboratories, Inc., Class A		10,289		346,225
Jabil Circuit, Inc.		12,389		288,540
				991,558

	Shares		Value
Energy equipment & services: 1.45%
Halliburton Co.		7,279	$	247,777
McDermott International, Inc.*¹		46,330		155,206
Noble Corp. PLC¹		15,350		161,942
				564,925
Food & staples retailing: 1.90%
Walgreens Boots Alliance, Inc.		8,696		740,508
Food products: 2.30%
Mondelez International, Inc., Class A		19,989		896,307
Health care equipment & supplies: 0.48%
HeartWare International, Inc.*¹		3,684		185,674
Health care providers & services: 2.82%
Envision Healthcare Holdings, Inc.*		18,492		480,237
UnitedHealth Group, Inc.		5,289		622,198
				1,102,435
Hotels, restaurants & leisure: 2.14%
Yum! Brands, Inc.		11,455		836,788
Household durables: 0.79%
Lennar Corp., Class A¹		6,300		308,133
Insurance: 5.45%
Aflac, Inc.		7,505		449,550
Aon PLC		7,402		682,538
Lincoln National Corp.		8,738		439,172
MetLife, Inc.		11,552		556,922
				2,128,182
Internet & catalog retail: 3.15%
Amazon.com, Inc.*		1,299		877,981
Expedia, Inc.		2,840		353,012
				1,230,993
Internet software & services: 2.55%
Cornerstone OnDemand, Inc.*		8,504		293,643
Facebook, Inc., Class A*		6,718		703,106
				996,749
IT services: 3.03%
First Data Corp., Class A*¹		14,398		230,656
ServiceSource International, Inc.*		48,509		223,627
Visa, Inc., Class A		9,408		729,590
				1,183,873
Life sciences tools & services: 0.84%
Bio-Rad Laboratories, Inc., Class A*		2,349		325,712

UBS U.S. Large Cap Equity Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Shares		Value
Common stocks—(Concluded)
Machinery: 1.78%
Caterpillar, Inc.		7,589	$	515,749
Colfax Corp.*		7,724		180,355
				696,104
Media: 4.74%
CBS Corp. (Non-Voting), Class B		9,577		451,364
Time Warner, Inc.		5,977		386,532
Walt Disney Co.		9,623		1,011,185
				1,849,081
Oil, gas & consumable fuels: 3.84%
Chevron Corp.		3,110		279,776
Cobalt International Energy, Inc.*		30,714		165,856
EOG Resources, Inc.		4,637		328,253
Gulfport Energy Corp.*		4,604		113,120
Laredo Petroleum, Inc.*¹		20,749		165,784
Oasis Petroleum, Inc.*¹		18,345		135,203
PDC Energy, Inc.*		4,690		250,352
SM Energy Co.¹		3,068		60,317
				1,498,661
Pharmaceuticals: 8.18%
Allergan PLC*		1,909		596,563
Catalent, Inc.*		15,756		394,373
Eli Lilly & Co.		6,410		540,107
Impax Laboratories, Inc.*		11,474		490,628
Mallinckrodt PLC*		4,613		344,268
Medicines Co.*		6,251		233,412
Teva Pharmaceutical Industries Ltd. ADR		9,047		593,845
				3,193,196
Real estate investment trust (REIT): 3.50%
Digital Realty Trust, Inc.		8,750		661,675
Simon Property Group, Inc.		3,630		705,817
				1,367,492
Road & rail: 2.72%
Norfolk Southern Corp.		6,129		518,452
Union Pacific Corp.		6,945		543,099
				1,061,551
Semiconductors & semiconductor equipment: 7.36%
Avago Technologies Ltd.		3,180		461,577
Lam Research Corp.		3,818		303,225
Maxim Integrated Products, Inc.		7,316		278,008
Mellanox Technologies Ltd.*		2,200		92,708

	Shares		Value
Micron Technology, Inc.*		35,305	$	499,919
NXP Semiconductors NV*		3,221		271,369
ON Semiconductor Corp.*		24,758		242,628
Qorvo, Inc.*		4,784		243,506
Silicon Laboratories, Inc.*		3,857		187,219
Skyworks Solutions, Inc.		3,823		293,721
				2,873,880
Software: 3.70%
Check Point Software Technologies Ltd.*		6,070		493,977
Symantec Corp.		21,784		457,464
VMware, Inc., Class A*¹		8,725		493,573
				1,445,014
Specialty retail: 0.94%
Best Buy Co., Inc.		11,994		365,217
Technology hardware, storage & peripherals: 0.98%
Western Digital Corp.		6,354		381,558
Tobacco: 3.51%
Philip Morris International, Inc.		15,588		1,370,341
Wireless telecommunication services: 0.92%
T-Mobile US, Inc.*		9,166		358,574
Total common stocks (cost $37,511,444)				37,573,297
Investment company: 2.35%
SPDR S&P 500 ETF Trust (cost $924,720)		4,500		917,505
Short-term investment: 1.49%
Investment company: 1.49%
JPMorgan U.S. Government Money Market Fund, Capital Shares (cost $580,029)		580,029		580,029
Investment of cash collateral from securities loaned: 7.29%
UBS Private Money Market Fund LLC²(cost $2,846,580)		2,846,580		2,846,580
Total investments: 107.39% (cost $41,862,773)				41,917,411
Liabilities, in excess of cash and other assets: (7.39)%				(2,882,782	)
Net assets: 100.00%			$	39,034,629

UBS U.S. Large Cap Equity Fund

Portfolio of investments

December 31, 2015 (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	$	3,861,519
Gross unrealized depreciation		(3,806,881	)
Net unrealized appreciation of investments	$	54,638

The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 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
Assets
Common stock	$	37,573,297	$	—	$	—	$	37,573,297
Investment company		917,505		—		—		917,505
Short-term investment		580,029		—		—		580,029
Investment of cash collateral from securities loaned		—		2,846,580		—		2,846,580
Total	$	39,070,831	$	2,846,580	$	—	$	41,917,411

During the period ended December 31, 2015, there were no transfers between Level 1 and Level 2.

Portfolio footnotes

* Non-income producing security.

¹ Security, or portion thereof, was on loan at December 31, 2015.

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 06/30/15		Purchases during the six months ended 12/31/15		Sales during the six months ended 12/31/15		Value 12/31/15		Net income earned from affiliate for the six months ended 12/31/15
UBS Cash Management Prime Relationship Fund	$	533,330	$	3,713,405	$	4,246,735	$	—	$	144
UBS Private Money Market Fund LLC^a		1,240,202		13,726,798		12,120,420		2,846,580		269
	$	1,773,532	$	17,440,203	$	16,367,155	$	2,846,580	$	413

^a The Advisor earns a management fee from this affiliated fund. Please see the Notes to financial statements for further information.

See accompanying notes to financial statements.
58

UBS U.S. Small Cap Growth Fund

Portfolio performance

For the six months ended December 31, 2015, Class A shares of UBS U.S. Small Cap Growth Fund (the "Fund") returned -11.92% (Class A shares returned -16.75% after the deduction of the maximum sales charge), while Class P shares returned -11.84%. The Fund's benchmark, the Russell 2000 Growth Index (the "Index"), returned -9.31% over the same time period. (Class P shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 62; 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 underperformed the Index primarily due to stock selection decisions.

Portfolio performance summary¹

What worked

• Several information technology stocks made a positive contribution to Fund returns during the six months ended December 31, 2015.

– Ultimate Software Group is a leading developer of unified human capital management software-as-a-service (SaaS) solutions for global businesses. The company posted record sales and earnings during the period, sending its shares higher. Ultimate is benefiting from the transformation of its business from a license model to a subscription model that includes a higher percentage of visible recurring revenues.

– Shares of Integrated Device Technology, a designer, developer and manufacturer of semiconductor products and modules, rose after the company reported earnings that exceeded investor expectations. The announcement that the company would acquire ZDMI, a German component manufacturer, also boosted performance.

– Heartland Payment Systems, a provider of bank card-based payment processing services to small and medium-sized merchants, outperformed following the announcement that Global Payments would acquire the company for a combination of cash and stock valued at $100 per share.

– The Fund's position in Proofpoint contributed to relative returns. The company, a global provider of enterprise software solutions focused on e-mail security, data protection, archiving and governance, is taking advantage of a large market opportunity and a benign competitive landscape. (For details, see "Portfolio highlights.")

• Other individual stock positions were additive for performance over the six-month period.

– 8x8, Inc. was the Fund's strongest performer during the six months. The provider of voice over internet protocol (VoIP) platforms and hosted internet PBX solutions saw its shares rise after reporting better-than-expected quarterly sales and earnings. The company is successfully shifting its focus toward the enterprise market and away from small to mid-sized businesses. (For details, see "Portfolio highlights.")

¹ For a detailed commentary on the market environment in general during the reporting period, see page 3.

UBS U.S. Small Cap Growth Fund

– DexCom is a leading provider of continuous glucose monitoring (CGM) systems for individuals with diabetes. The company saw its shares rise after reporting quarterly revenue that beat consensus estimates by about 10%. In addition, during August 2015, DexCom received FDA approval for its mobile CGM system, which works directly with smartphones. (For details, see "Portfolio highlights.")

What didn't work

• Several health care names detracted from the Fund's relative returns. Stock selection was particularly challenging within the biotechnology industry, which was one of the worst performing industry groups during the reporting period.

– LDR Holding Corp. was the Fund's largest negative contributor for the six months. The medical device company focuses on novel and proprietary surgical technologies for the treatment of patients suffering from spine disorders. Shares fell after the company pre-announced sales and earnings for the third quarter that disappointed investors and raised concerns that the company's overall growth profile was slowing.

– The stock price of Exact Sciences, a molecular diagnostics company focused on the early detection and prevention of colorectal cancer, traded lower during the period. The decline occurred after the U.S. Preventive Services Task Force issued draft recommendations on colon cancer screening that failed to include the company's DNA test.

– Endologix manufactures endovascular aneurism repair (EVAR) devices used in the treatment of abdominal aortic aneurysms. The company's shares fell after it announced plans to acquire TriVascular Technologies for cash and stock. We sold our position in the stock before the end of the reporting period.

• Certain consumer discretionary stocks had a negative impact on Fund performance.

– La Quinta Holdings operates and owns hotels across the US. The company revised its earnings guidance downward during the six-month period. This was followed by the unexpected resignation of La Quinta's CEO. The uncertainty of these developments weighed on the share price, causing the stock to trade lower.

– The Fund's position in Asbury Automotive, an automotive retailer, detracted from returns. The stock suffered from concerns about Asbury's declining gross profit per new vehicle sold.

• An overweight to energy stocks hindered the Fund as the sector was punished by declines in the price of crude oil.

UBS U.S. Small Cap Growth Fund

Portfolio highlights

• 8x8, Inc. is one of the leading providers of unified communications as a service. The company's cloud-based solutions provide communications and collaboration on a unified platform that includes voice, video, contact center and desktop. 8x8's solutions allow enterprises to easily deploy and scale their communications platforms as needed without large upfront expenses.

• Proofpoint is a global provider of enterprise software solutions. The company offers an integrated suite of on-demand solutions that include secure communications, archiving, compliance and cyber security. Proofpoint's software-as-a-service (SaaS) model delivers 95% recurring revenues at greater than 90% renewal rates. The company's main competitor, Postini, was acquired by Google and is in the process of shutting down.

• DexCom is the leader in the move to switch diabetic patients from episodic finger-stick measurements to continuous glucose sensors. Continuous glucose monitoring (CGM) provides alerts, alarms and trend information to help people better manage their diabetes. There are 400 million people worldwide with diabetes, and over 29 million in the US alone. The market is estimated to grow to approximately 600 million people by 2030. We believe there is considerable room for growth, as CGM is used by less than 10% of Type 1 diabetics and less than 1% of Type 2 diabetics.

• Acadia Health Care is one of the country's leading operators of behavioral health centers. The company operates 52 facilities in 21 states, up from just six facilities when the current management team took over the company in early 2011. Pricing trends remain favorable, with increases expected across the company's payer sources. Acadia is benefitting from several demographic trends including the aging population and an increased focus on care for adolescents. Acadia's experienced management team has demonstrated an ability to grow through acquisitions, as well as by adding beds to existing facilities. We expect the company to continue to grow revenues at rates in the high single digits.

UBS U.S. Small Cap Growth Fund

Average annual total returns for periods ended 12/31/15 (unaudited)

	6 months			1 year			5 years			10 years
Before deducting maximum sales charge
Class A¹		(11.92	)%		(2.45	)%		12.15	%		7.51	%
Class C²		(12.25	)		(3.18	)		11.32			6.71
Class P³		(11.84	)		(2.26	)		12.44			7.79
After deducting maximum sales charge
Class A¹		(16.75	)%		(7.81	)%		10.88	%		6.90	%
Class C²		(13.04	)		(4.05	)		11.32			6.71
Russell 2000 Growth Index⁴		(9.31	)%		(1.38	)%		10.67	%		7.95	%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2015 prospectuses were as follows: Class A—1.52% and 1.25%; Class C—2.25% and 2.00%; Class P—1.11% 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. Effective March 27, 2015, the Trust, with respect to the Fund, and UBS Asset Management (Americas) Inc. (formerly, UBS Global Asset Management (Americas) Inc.), the Fund's investment advisor ("UBS 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, 2016, do not exceed 1.24% for Class A shares, 1.99% for Class C shares and 0.99% for Class P shares; prior to March 27, 2015, the fees were not to exceed 1.40% for Class A shares, 2.15% for Class C shares and 1.15% for Class P 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. The fee waiver/expense reimbursement agreement may be terminated by the Fund's Board of Trustees at any time and also will terminate automatically upon the expiration or termination of the Fund's advisory contract with the Advisor. Upon termination of the fee waiver/expense reimbursement agreement, however, the UBS AM (Americas)'s three year recoupment rights will survive.

¹ Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

² 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 distribution and service fees.

⁴ The Russell 2000 Growth Index measures the performance of the small-cap growth segment of the US equity universe. It includes those Russell 2000 Index companies with higher price-to-book 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, 2015

	Percentage of net assets
Imperva, Inc.		3.1	%
Proofpoint, Inc.		3.0
Ultimate Software Group, Inc.		2.2
DexCom, Inc.		2.2
Integrated Device Technology, Inc.		2.1
Heartland Payment Systems, Inc.		1.9
8x8, Inc.		1.9
Fleetmatics Group PLC		1.8
Charles River Laboratories International, Inc.		1.7
Hortonworks, Inc.		1.7
Total		21.6	%

Industry diversification (unaudited)¹

As a percentage of net assets as of December 31, 2015

Common stocks
Airlines	0.68	%
Auto components	1.08
Banks	3.29
Biotechnology	13.41
Building products	0.76
Communications equipment	1.27
Construction & engineering	1.26
Diversified telecommunication services	2.77
Electrical equipment	1.27
Electronic equipment, instruments & components	2.49
Energy equipment & services	0.44
Food products	0.58
Health care equipment & supplies	7.02
Health care providers & services	3.42
Health care technology	0.23
Hotels, restaurants & leisure	5.92
Household durables	1.39
Internet software & services	5.52
IT services	1.94
Life sciences tools & services	1.73
Machinery	0.91
Media	2.76
Metals & mining	0.55
Multiline retail	0.41
Oil, gas & consumable fuels	2.88
Paper & forest products	1.09
Pharmaceuticals	2.31
Professional services	1.19
Real estate investment trust (REIT)	2.10
Road & rail	0.42
Semiconductors & semiconductor equipment	2.06
Software	16.16
Specialty retail	2.93
Thrifts & mortgage finance	1.50
Total common stocks	93.74	%
Investment companies
iShares Russell 2000 Growth ETF	3.88
iShares Russell 2000 Index ETF	0.94
Total investment companies	4.82	%
Short-term investment	2.19
Investment of cash collateral from securities loaned	9.71
Total investments	110.46	%
Liabilities, in excess of cash and other assets	(10.46	)
Net assets	100.00	%

¹ Figures represent the direct investments of UBS U.S. Small Cap Growth Fund. Figures might be different if a breakdown of the underlying investment companies were included.

UBS U.S. Small Cap Growth Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Shares		Value
Common stocks: 93.74%
Airlines: 0.68%
Spirit Airlines, Inc.*		35,046	$	1,396,583
Auto components: 1.08%
Tenneco, Inc.*		47,880		2,198,171
Banks: 3.29%
Columbia Banking System, Inc.		77,967		2,534,707
National Bank Holdings Corp., Class A		71,363		1,525,027
Webster Financial Corp.		71,718		2,667,193
				6,726,927
Biotechnology: 13.41%
Acceleron Pharma, Inc.*		51,300		2,501,388
Adaptimmune Therapeutics PLC ADR*¹		60,955		735,117
Aduro Biotech, Inc.*¹		57,972		1,631,332
Anacor Pharmaceuticals, Inc.*		9,228		1,042,487
Blueprint Medicines Corp.*		36,036		949,188
Cepheid, Inc.*		55,006		2,009,369
Exact Sciences Corp.*¹		66,547		614,229
FibroGen, Inc.*		53,099		1,617,927
Juno Therapeutics, Inc.*¹		34,286		1,507,555
Kite Pharma, Inc.*¹		25,446		1,567,982
Ligand Pharmaceuticals, Inc.*¹		26,121		2,832,039
MacroGenics, Inc.*		56,589		1,752,561
Portola Pharmaceuticals, Inc.*		51,584		2,653,997
REGENXBIO, Inc.*¹		31,485		522,651
Sage Therapeutics, Inc.*		28,052		1,635,432
Sangamo BioSciences, Inc.*¹		78,281		714,706
Seres Therapeutics, Inc.*¹		25,122		881,531
Ultragenyx Pharmaceutical, Inc.*		14,155		1,587,908
vTv Therapeutics, Inc., Class A*¹		95,178		648,162
				27,405,561
Building products: 0.76%
NCI Building Systems, Inc.*		125,195		1,553,670
Communications equipment: 1.27%
Ciena Corp.*		125,156		2,589,478
Construction & engineering: 1.26%
EMCOR Group, Inc.		53,525		2,571,341
Diversified telecommunication services: 2.77%
8x8, Inc.*		332,541		3,807,595
inContact, Inc.*		194,204		1,852,706
				5,660,301
Electrical equipment: 1.27%
EnerSys		46,314		2,590,342

	Shares		Value
Electronic equipment, instruments & components: 2.49%
OSI Systems, Inc.*		30,789	$	2,729,753
Universal Display Corp.*		43,150		2,349,086
				5,078,839
Energy equipment & services: 0.44%
Patterson-UTI Energy, Inc.		59,367		895,254
Food products: 0.58%
Blue Buffalo Pet Products, Inc.*¹		63,794		1,193,586
Health care equipment & supplies: 7.02%
ABIOMED, Inc.*		36,087		3,257,934
DexCom, Inc.*		54,169		4,436,441
K2M Group Holdings, Inc.*		123,177		2,431,514
LDR Holding Corp.*		76,823		1,929,026
Zeltiq Aesthetics, Inc.*¹		80,331		2,291,843
				14,346,758
Health care providers & services: 3.42%
Acadia Healthcare Co., Inc.*		51,467		3,214,629
MEDNAX, Inc.*		22,978		1,646,603
Team Health Holdings, Inc.*		48,477		2,127,656
				6,988,888
Health care technology: 0.23%
Evolent Health, Inc., Class A*¹		39,414		477,303
Hotels, restaurants & leisure: 5.92%
Bloomin' Brands, Inc.		127,086		2,146,483
ClubCorp Holdings, Inc.		125,855		2,299,371
Del Frisco's Restaurant Group, Inc.*		113,124		1,812,246
La Quinta Holdings, Inc.*		124,562		1,695,289
Popeyes Louisiana Kitchen, Inc.*		46,004		2,691,234
Wingstop, Inc.*¹		63,893		1,457,399
				12,102,022
Household durables: 1.39%
CalAtlantic Group, Inc.		75,057		2,846,161
Internet software & services: 5.52%
Apigee Corp.*¹		183,549		1,473,898
Box, Inc., Class A*¹		81,990		1,144,580
Hortonworks, Inc.*¹		154,630		3,386,397
Mimecast Ltd.*		112,118		1,076,333
Shopify, Inc., Class A*¹		44,801		1,155,866
Wix.com Ltd.*		133,582		3,038,991
				11,276,065
IT services: 1.94%
Heartland Payment Systems, Inc.		41,730		3,956,839

UBS U.S. Small Cap Growth Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Shares		Value
Common stocks—(Concluded)
Life sciences tools & services: 1.73%
Charles River Laboratories International, Inc.*		44,063	$	3,542,225
Machinery: 0.91%
Woodward, Inc.		37,544		1,864,435
Media: 2.76%
AMC Entertainment Holdings, Inc., Class A		98,506		2,364,144
IMAX Corp.*¹		92,110		3,273,589
				5,637,733
Metals & mining: 0.55%
Ferroglobe PLC		104,430		1,122,622
Multiline retail: 0.41%
Ollie's Bargain Outlet Holdings, Inc.*¹		49,394		840,192
Oil, gas & consumable fuels: 2.88%
Callon Petroleum Co.*		231,227		1,928,433
Diamondback Energy, Inc.		27,142		1,815,800
Matador Resources Co.*		108,321		2,141,506
				5,885,739
Paper & forest products: 1.09%
Boise Cascade Co.*		87,374		2,230,658
Pharmaceuticals: 2.31%
Intersect ENT, Inc.*		84,374		1,898,415
Pacira Pharmaceuticals, Inc.*		36,757		2,822,570
				4,720,985
Professional services: 1.19%
Kforce, Inc.		96,361		2,436,006
Real estate investment trust (REIT): 2.10%
Cousins Properties, Inc.		200,430		1,890,055
Sovran Self Storage, Inc.		22,341		2,397,413
				4,287,468
Road & rail: 0.42%
Saia, Inc.*		38,362		853,554
Semiconductors & semiconductor equipment: 2.06%
Integrated Device Technology, Inc.*		159,559		4,204,380
Software: 16.16%
CyberArk Software Ltd.*¹		58,222		2,628,141
Fleetmatics Group PLC*		70,437		3,577,495

	Shares		Value
Gigamon, Inc.*		120,229	$	3,194,485
Imperva, Inc.*		99,218		6,281,492
Proofpoint, Inc.*		93,650		6,088,187
Qlik Technologies, Inc.*		52,603		1,665,411
Synchronoss Technologies, Inc.*		70,931		2,498,899
Ultimate Software Group, Inc.*		22,885		4,474,246
Workiva, Inc.*¹		147,990		2,600,184
				33,008,540
Specialty retail: 2.93%
Asbury Automotive Group, Inc.*		39,023		2,631,711
Five Below, Inc.*		46,046		1,478,077
Restoration Hardware Holdings, Inc.*		23,525		1,869,061
				5,978,849
Thrifts & mortgage finance: 1.50%
Essent Group Ltd.*		73,037		1,598,780
EverBank Financial Corp.		91,712		1,465,558
				3,064,338
Total common stocks (cost $175,773,848)				191,531,813
Investment companies: 4.82%
iShares Russell 2000 Growth ETF¹		56,798		7,918,210
iShares Russell 2000 Index ETF		17,000		1,912,670
Total investment companies (cost $9,878,581)				9,830,880
Short-term investment: 2.19%
Investment company: 2.19%
JPMorgan U.S. Government Money Market Fund, Capital Shares (cost $4,477,214)		4,477,214		4,477,214
Investment of cash collateral from securities loaned: 9.71%
UBS Private Money Market Fund LLC²(cost $19,847,673)		19,847,673		19,847,673
Total investments: 110.46% (cost $209,977,316)				225,687,580
Liabilities, in excess of cash and other assets: (10.46)%				(21,363,313	)
Net assets: 100.00%			$	204,324,267

UBS U.S. Small Cap Growth Fund

Portfolio of investments

December 31, 2015 (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	$	28,626,894
Gross unrealized depreciation		(12,916,630	)
Net unrealized appreciation of investments	$	15,710,264

The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 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
Assets
Common stocks	$	191,531,813	$	—	$	—	$	191,531,813
Investment companies		9,830,880		—		—		9,830,880
Short-term investment		4,477,214		—		—		4,477,214
Investment of cash collateral from securities loaned		—		19,847,673		—		19,847,673
Total	$	205,839,907	$	19,847,673	$	—	$	225,687,580

During the period ended December 31, 2015, there were no transfers between Levels 1 and Level 2.

Portfolio footnotes

* Non-income producing security.

¹ Security, or portion thereof, was on loan at December 31, 2015.

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 06/30/15		Purchases during the six months ended 12/31/15		Sales during the six months ended 12/31/15		Value 12/31/15		Net income earned from affiliate for the six months ended 12/31/15
UBS Cash Management Prime Relationship Fund	$	10,433,392	$	45,877,796	$	56,311,188	$	—	$	2,417
UBS Private Money Market Fund LLC^a		17,148,414		116,629,705		113,930,446		19,847,673		2,331
	$	27,581,806	$	162,507,501	$	170,241,634	$	19,847,673	$	4,748

^aThe Advisor earns a management fee from this affiliated fund. Please see the Notes to financial statements for further information.

See accompanying notes to financial statements.
66

UBS U.S. Equity Opportunity Fund

Portfolio performance

For the six months ended December 31, 2015, Class A shares of UBS U.S. Equity Opportunity Fund (the "Fund") returned -6.40% (Class A shares returned -11.56% after the deduction of the maximum sales charge), while Class P shares returned -6.29%. The Fund's benchmark, the Russell 1000 Index (the "Index"), returned -0.78% over the same time period. (Class P shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 70; 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 underperformed the Index primarily due to stock selection decisions.

Portfolio performance summary¹

What worked

• Amazon.com was the largest positive contributor for the six months ended December 31, 2015, with a gain of 53%. Since the company began disclosing the financial results of its Amazon Web Services segment, it has become clear that Amazon is much more than a web retailer. Amazon dominates the rapidly growing cloud services market. This segment is already profitable for the company and should realize increasing profit margins as it reaches scale. We continue to have a favorable view of the company, but sold the stock in December to focus on companies that we find more attractive.

• Several stock selection decisions made a significant contribution to Fund performance.

– Holding Digital Realty Trust, a real estate investment trust (REIT) specializing in technology-related properties, was positive for performance. The company has been aggressively improving its global datacenter portfolio through new developments and acquisitions, particularly in higher-margin overseas markets. We believe Digital Realty Trust will benefit from improved occupancy levels at higher rents as existing contracts expire and are replaced with more profitable leases.

• An overweight to the consumer staples sector, as well as successful stock selection within the sector, contributed positively to Fund returns.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 3.

UBS U.S. Equity Opportunity Fund

• The Fund's overweight to the information technology sector also benefited relative returns.

What didn't work

– Alnylam Pharmaceuticals is the leader in RNA interference (RNAi) science. The company's shares declined 21% during the six-month period, detracting from Fund returns. We believe the field of gene therapy shows considerable promise for treating a wide array of diseases, and that Alnylam is well-positioned within the space. We continue to hold the stock.

• Several individual stock positions in various industries made negative contributions to the Fund's returns.

– pdvWireless began as a private placement that was intended to fund the potential acquisition of Sprint's wireless spectrum. The goal of the acquisition was to build a nationwide push-to-talk type wireless network and ultimately consolidate non-contiguous spectrum to allow for 4G usage. The original investment was contingent on the deal closing and receiving approval from the Federal Communications Commission (FCC). We continue to hold the stock following the company's IPO.

– Shares of Laredo Petroleum were down 36% as the energy sector suffered from collapsing oil prices. We believe the long-term outlook for Laredo is strong, as the company is completing excellent wells in the core of the Midland basin and operating in largely contiguous acreage that fits the footprint of larger players in the oil and gas space.

• The decision not to hold any utilities names detracted from Fund performance, as the sector was up 6% within the benchmark during the six months.

UBS U.S. Equity Opportunity Fund

Portfolio highlights

• Mondelez International manufactures and markets snack food and beverages including cookies, crackers, chocolate, gum, candy, coffee, powdered beverages, and various cheese and grocery products. We believe Mondelez is well-positioned for growth due to its significant exposure to developing markets. We think there is an opportunity for margin expansion from a rebound in Europe and by leveraging synergies across distribution platforms.

• Philip Morris is a leading player in the global cigarette and tobacco market. We believe the market underappreciates the persistence and predictability of the company's cash flows and its returns to shareholders. Philip Morris's regulatory and consumption risk is well-diversified across 180 markets around the globe. While governments have an interest in reducing tobacco consumption, they have become reliant on steady tobacco tax flows. Many governments are working with Philip Morris to encourage steady but slow declines in consumption while growing taxation and price revenues.

• We believe credit services firm American Express is in a strong position to take advantage of improving consumer spending volume and credit card loan growth over the next several years. Positive factors include solid global economic growth, improving business travel expenditures, increasing merchant acceptance and increasing share of the underserved market. As a result, American Express should experience strong profitability, earnings growth and cash-flow generation, which will be driven by solid revenue growth, improving operating leverage, manageable credit quality and aggressive capital management.

UBS U.S. Equity Opportunity Fund

Average annual total returns for periods ended 12/31/15 (unaudited)

	6 months			1 year			5 years			10 years
Before deducting maximum sales charge
Class A¹		(6.40	)%		(3.92	)%		9.28	%		4.10	%
Class C²		(6.81	)		(4.65	)		8.48			3.33
Class P³		(6.29	)		(3.64	)		9.55			4.39
After deducting maximum sales charge
Class A¹		(11.56	)%		(9.18	)%		8.07	%		3.51	%
Class C²		(7.74	)		(5.60	)		8.48			3.33
Russell 1000 Index⁴		(0.78	)%		0.92	%		12.44	%		7.40	%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2015 prospectuses were as follows: Class A—1.73% and 1.21%; Class C—2.51% and 1.96%; Class P—1.53% 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 Asset Management (Americas) Inc. (formerly, UBS Global Asset Management (Americas) Inc.), the Fund's investment advisor ("UBS 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, 2016, do not exceed 1.20% for Class A shares, 1.95% for Class C shares and 0.95% for Class P 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. The fee waiver/expense reimbursement agreement may be terminated by the Fund's Board of Trustees at any time and also will terminate automatically upon the expiration or termination of the Fund's advisory contract with the Advisor. Upon termination of the fee waiver/expense reimbursement agreement, however, the UBS AM (Americas)'s three year recoupment rights will survive.

¹ Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

² 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 distribution and service fees.

UBS U.S. Equity Opportunity Fund

Top ten equity holdings (unaudited)

As of December 31, 2015

	Percentage of net assets
Philip Morris International, Inc.		4.9	%
Walgreens Boots Alliance, Inc.		4.8
Digital Realty Trust, Inc.		4.6
Citigroup, Inc.		3.8
American Express Co.		3.7
Mondelez International, Inc., Class A		3.6
Union Pacific Corp.		3.5
MetLife, Inc.		3.2
Facebook, Inc., Class A		3.1
Walt Disney Co.		3.1
Total		38.3	%

Industry diversification (unaudited)

As a percentage of net assets as of December 31, 2015

Common stocks
Automobiles	3.59	%
Banks	3.83
Beverages	3.02
Biotechnology	5.71
Capital markets	1.58
Consumer finance	3.71
Diversified telecommunication services	1.19
Electronic equipment, instruments & components	1.95
Energy equipment & services	1.24
Food & staples retailing	4.80
Food products	3.56
Health care equipment & supplies	0.63
Health care providers & services	2.47
Insurance	5.98
Internet software & services	3.15
IT services	2.18
Life sciences tools & services	2.28
Machinery	3.49
Media	4.34
Oil, gas & consumable fuels	3.67
Pharmaceuticals	6.61
Real estate investment trust (REIT)	4.65
Road & rail	3.47
Semiconductors & semiconductor equipment	4.87
Software	7.35
Specialty retail	1.63
Technology hardware, storage & peripherals	1.17
Tobacco	4.94
Total common stocks	97.06	%
Short-term investment	2.95
Investment of cash collateral from securities loaned	6.67
Total investments	106.68	%
Liabilities, in excess of cash and other assets	(6.68	)
Net assets	100.00	%

UBS U.S. Equity Opportunity Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Shares		Value
Common stocks: 97.06%
Automobiles: 3.59%
Ford Motor Co.		59,842	$	843,174
General Motors Co.		17,837		606,636
				1,449,810
Banks: 3.83%
Citigroup, Inc.		29,881		1,546,342
Beverages: 3.02%
PepsiCo, Inc.		12,173		1,216,326
Biotechnology: 5.71%
Alnylam Pharmaceuticals, Inc.*		10,584		996,378
Atara Biotherapeutics, Inc.*¹		8,283		218,754
Chimerix, Inc.*		26,087		233,479
Lexicon Pharmaceuticals, Inc.*¹		54,249		722,054
MacroGenics, Inc.*		4,318		133,728
				2,304,393
Capital markets: 1.58%
Morgan Stanley		19,999		636,168
Consumer finance: 3.71%
American Express Co.		21,508		1,495,881
Diversified telecommunication services: 1.19%
pdvWireless, Inc.*²		17,518		481,745
Electronic equipment, instruments & components: 1.95%
Dolby Laboratories, Inc., Class A		23,425		788,251
Energy equipment & services: 1.24%
McDermott International, Inc.*¹		149,414		500,537
Food & staples retailing: 4.80%
Walgreens Boots Alliance, Inc.		22,724		1,935,062
Food products: 3.56%
Mondelez International, Inc., Class A		32,065		1,437,795
Health care equipment & supplies: 0.63%
HeartWare International, Inc.*¹		5,064		255,226
Health care providers & services: 2.47%
Envision Healthcare Holdings, Inc.*		38,293		994,469
Insurance: 5.98%
Lincoln National Corp.		22,429		1,127,282
MetLife, Inc.		26,678		1,286,146
				2,413,428

	Shares		Value
Internet software & services: 3.15%
Facebook, Inc., Class A*		12,133	$	1,269,840
IT services: 2.18%
Visa, Inc., Class A		11,335		879,029
Life sciences tools & services: 2.28%
Bio-Rad Laboratories, Inc., Class A*		6,634		919,871
Machinery: 3.49%
Caterpillar, Inc.		11,518		782,763
Colfax Corp.*		26,829		626,457
				1,409,220
Media: 4.34%
CBS Corp. (Non-Voting), Class B		10,240		482,611
Walt Disney Co.		12,049		1,266,109
				1,748,720
Oil, gas & consumable fuels: 3.67%
Cobalt International Energy, Inc.*		81,324		439,150
Laredo Petroleum, Inc.*¹		69,406		554,554
Oasis Petroleum, Inc.*¹		66,273		488,432
				1,482,136
Pharmaceuticals: 6.61%
Allergan PLC*		2,753		860,313
Impax Laboratories, Inc.*		21,661		926,224
Mallinckrodt PLC*		11,783		879,365
				2,665,902
Real estate investment trust (REIT): 4.65%
Digital Realty Trust, Inc.		24,800		1,875,376
Road & rail: 3.47%
Union Pacific Corp.		17,908		1,400,406
Semiconductors & semiconductor equipment: 4.87%
Avago Technologies Ltd.		8,025		1,164,829
Micron Technology, Inc.*		56,567		800,989
				1,965,818
Software: 7.35%
Check Point Software Technologies Ltd.*		15,300		1,245,114
Symantec Corp.		25,186		528,906
VMware, Inc., Class A*¹		21,048		1,190,685
				2,964,705
Specialty retail: 1.63%
Best Buy Co., Inc.		21,567		656,715

UBS U.S. Equity Opportunity Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Shares		Value
Common stocks—(Concluded)
Technology hardware, storage & peripherals: 1.17%
Western Digital Corp.		7,862	$	472,113
Tobacco: 4.94%
Philip Morris International, Inc.		22,673		1,993,183
Total common stocks (cost $38,924,545)				39,158,467
Short-term investment: 2.95%
Investment company: 2.95%
JPMorgan U.S. Government Money Market Fund, Capital Shares (cost $1,192,120)		1,192,120		1,192,120

	Shares		Value
Investment of cash collateral from securities loaned: 6.67%
UBS Private Money Market Fund LLC³(cost $2,692,994)		2,692,994	$	2,692,994
Total investments: 106.68% (cost $42,809,659)				43,043,581
Liabilities, in excess of cash and other assets: (6.68)%				(2,694,327	)
Net assets: 100.00%			$	40,349,254

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	$	3,718,794
Gross unrealized depreciation		(3,484,872	)
Net unrealized appreciation of investments	$	233,922

The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 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
Assets
Common stocks	$	38,676,722	$	481,745	$	—	$	39,158,467
Short-term investment		1,192,120		—		—		1,192,120
Investment of cash collateral from securities loaned		—		2,692,994		—		2,692,994
Total	$	39,868,842	$	3,174,739	$	—	$	43,043,581

During the period ended December 31, 2015, there were no transfers between Levels 1 and Level 2.

Portfolio footnotes

* Non-income producing security.

¹ Security, or portion thereof, was on loan at December 31, 2015.

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, 2015, the value of this security amounted to $481,745 or 1.19% 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 Fund.

UBS U.S. Equity Opportunity Fund

Portfolio of investments

December 31, 2015 (unaudited)

Security description	Value 06/30/15		Purchases during the six months ended 12/31/15		Sales during the six months ended 12/31/15		Value 12/31/15		Net income earned from affiliate for the six months ended 12/31/15
UBS Cash Management Prime Relationship Fund	$	398,780	$	5,016,757	$	5,415,537	$	—	$	424
UBS Private Money Market Fund LLC^a		1,331,642		18,651,145		17,289,793		2,692,994		244
	$	1,730,422	$	23,667,902	$	22,705,330	$	2,692,994	$	668

^a The Advisor earns a management fee from this affiliated fund. Please see the Notes to financial statements for further information.

See accompanying notes to financial statements.
74

UBS Fixed Income Opportunities Fund

Portfolio performance

For the six months ended December 31, 2015, Class A shares of UBS Fixed Income Opportunities Fund (the "Fund") returned -4.33% (Class A shares returned -8.65% after the deduction of the maximum sales charge), while Class P shares returned -4.21%. For comparison purposes, The BofA Merrill Lynch US Dollar 3-Month Deposit Offered Rate Constant Maturity Index (the "Index") returned 0.10% over the same time period. (Class P shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 77; 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 negative return during the reporting period was driven by a number of factors, including corporate credit, government-related debt, emerging markets debt and duration positioning. These negatives more than offset the positive impact of the Fund's active currency exposure and allocation to collateralized loan obligations ("CLO").

The Fund extensively uses 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, credit default swaptions and, to a more limited extent, total return swaps 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 derivatives such as currency forwards, swaps and options as part of its currency management strategy.

While derivatives play a role in the overall portfolio construction process, they are just one of the tools we utilize to manage the Fund's overall risk exposure and to implement the aforementioned strategies. The Fund's active interest rate strategies detracted from performance during the reporting period. Spread management was negative overall for performance, but some spread products contributed to results. "Spread" is the difference between yields paid on a government bond (such as US Treasuries) and a security of a different quality, but with the same or similar maturity. When spreads widen, it implies that the market is factoring in greater risk of default for the lower-rated security; conversely, when spreads tighten, the market is factoring in less risk. Such movements in spreads generally result in changes in market prices for such securities. Currency positioning contributed to results during the reporting period.

Portfolio performance summary¹

What worked:

• The Fund's active currency exposure was positive for results during the reporting period.

• The Fund's active currency positioning for both developed market currencies and emerging market currencies added to performance. The Fund generally held a long exposure to the US dollar but diversified both long and short currency exposures during the reporting period. Other long exposures included the Swedish krona, Norwegian krone, Japanese yen and Indian rupee. Short currency exposures held at times during the reporting period included the Australian dollar, Singapore dollar, euro, Swiss franc, Chinese yuan, Canadian dollar and Japanese yen.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 3.

UBS Fixed Income Opportunities Fund

• Collateralized debt contributed to performance.

• The Fund's holdings of CLOs was beneficial for results as they outperformed other spread products.

• Credit beta hedging also contributed to performance.

• Credit spreads in most sectors widened during the reporting period. Against this backdrop, the Fund's utilization of beta hedging for spread management was additive to performance.

What didn't work:

• The Fund's allocation to corporate credit was negative for performance.

• The Fund's allocation to both investment grade and high yield corporate debt was negative for performance, as corporate spreads widened during the reporting period.

• Security selection of commodity-related credit detracted from results as the continued decline in commodity prices led to weak results. Security selection in high yield corporate credit, in particular, underperformed due to the further declines in the price of oil. The negative performance from security selection was partially offset by beta index hedging.

• The Fund's allocation to emerging markets debt detracted from performance.

• Security selection in emerging market debt was also a negative for performance during the reporting period, driven by the declines in commodity prices and concerns over global growth.

• Interest rate strategies were negative for performance during the reporting period.

• The Fund was generally positioned for higher US interest rates and higher volatility in US interest rate markets. The Fund also at times had long exposures to the Australian and New Zealand interest rate markets, which were headwinds for performance.

• Interest rate strategies were negative for results for the first half of the reporting period as interest rates in the US declined. However, interest rate strategies were additive to performance during the second half of the period as interest rates in the US increased leading up to the December US Federal Reserve meeting and the first rate hike by the US central bank since 2006.

UBS Fixed Income Opportunities Fund

Average annual total returns for periods ended 12/31/15 (unaudited)

	6 months			1 year			5 years			Inception¹
Before deducting maximum sales charge
Class A²		(4.33	)%		(2.48	)%		(0.12	)%		0.32	%
Class C³		(4.48	)		(2.90	)		(0.61	)		(0.19	)
Class P⁴		(4.21	)		(2.23	)		0.12			0.58
After deducting maximum sales charge
Class A²		(8.65	)%		(6.85	)%		(1.03	)%		(0.58	)%
Class C³		(5.20	)		(3.62	)		(0.61	)		(0.19	)
BofA Merrill Lynch US Dollar 3-Month Deposit Offered Rate Constant Maturity Index⁵		0.10	%		0.23	%		0.31	%		0.31	%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2015 prospectuses were as follows: Class A—1.90% and 1.01%; Class C—2.48% and 1.51%; Class P—1.70% and 0.76%. 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 Asset Management (Americas) Inc. (formerly, UBS Global Asset Management (Americas) Inc.), the Fund's investment advisor ("UBS 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, 2016, do not exceed 0.95% for Class A shares, 1.45% for Class C shares and 0.70% for Class P 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. The fee waiver/expense reimbursement agreement may be terminated by the Fund's Board of Trustees at any time and also will terminate automatically upon the expiration or termination of the Fund's advisory contract with the Advisor. Upon termination of the fee waiver/expense reimbursement agreement, however, the UBS AM (Americas)'s three year recoupment rights will survive.

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 4.5%. 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 distribution and service fees.

⁵ The BofA Merrill Lynch US Dollar 3-Month Deposit Offered Rate Constant Maturity Index (formerly 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.

UBS Fixed Income Opportunities Fund

Top ten long-term fixed income holdings (unaudited)

As of December 31, 2015

	Percentage of net assets
US Treasury Notes, 1.750%, due 05/15/22		12.4	%
US Treasury Inflation Indexed Note (TIPS), 0.125%, due 04/15/20		4.9
US Treasury Notes, 2.125%, due 05/15/25		4.7
US Treasury Notes, 1.625%, due 11/30/20		2.4
Citigroup, Inc., 6.300%, due 05/15/24		2.1
Royal Bank of Scotland Group PLC, 6.100%, due 06/10/23		2.1
US Treasury Inflation Indexed Bond (TIPS), 0.750%, due 02/15/45		2.1
Barclays Bank PLC, 4.375%, due 09/11/24		2.0
Lloyds Bank PLC, 6.500%, due 03/24/20		2.0
Republic of Croatia, 6.250%, due 04/27/17		2.0
Total		36.7	%

Country exposure by issuer, top five (unaudited)

As of December 31, 2015

	Percentage of net assets
United States		64.8	%
United Kingdom		6.6
Croatia		2.9
Norway		2.1
Germany		1.8
Total		78.2	%

Industry diversification (unaudited)

As a percentage of net assets as of December 31, 2015

Bonds
Corporate bonds
Banks	16.09	%
Building products	0.31
Capital markets	1.09
Chemicals	1.75
Commercial services & supplies	1.15
Construction materials	1.74
Consumer finance	1.98
Diversified financial services	1.82
Diversified telecommunication services	2.80
Energy equipment & services	0.41
Food & staples retailing	2.08
Gas utilities	0.76
Hotels, restaurants & leisure	1.54
Household durables	1.51
Insurance	6.94
Machinery	1.06
Media	2.41
Metals & mining	0.76
Oil, gas & consumable fuels	4.04
Real estate investment trust (REIT)	0.40
Real estate management & development	0.49
Technology hardware, storage & peripherals	0.32
Thrifts & mortgage finance	0.61
Trading companies & distributors	0.38
Total corporate bonds	52.44	%
Asset-backed securities	0.80
Collateralized debt obligations	2.91
Commercial mortgage-backed security	0.73
Mortgage & agency debt securities	1.32
Municipal bonds	3.41
US government obligations	27.89
Non-US government obligations	3.64
Total bonds	93.14	%
Short-term investments	2.27
Options purchased	1.83
Total investments	97.24	%
Cash and other assets, less liabilities	2.76
Net assets	100.00	%

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds: 93.14%
Corporate bonds: 52.44%
Australia: 1.05%
Crown Group Finance Ltd., 5.750%, due 07/18/17	AUD	370,000	$	277,818
Brazil: 0.93%
Caixa Economica Federal, 2.375%, due 11/06/17¹	$	195,000		178,425
Petrobras Global Finance BV, 5.375%, due 01/27/21		90,000		66,731
Total Brazil corporate bonds				245,156
Canada: 1.16%
NOVA Chemicals Corp., 5.250%, due 08/01/23¹		310,000		306,900
China: 0.76%
China Oil & Gas Group Ltd., 5.250%, due 04/25/18¹		210,000		200,485
Croatia: 0.92%
Agrokor DD, 8.875%, due 02/01/20¹		230,000		243,800
France: 1.35%
Credit Agricole SA, 7.875%, due 01/23/24^1,2,3		350,000		357,875
Germany: 1.77%
HeidelbergCement Finance BV, 8.500%, due 10/31/19⁴	EUR	200,000		270,307
Unitymedia GmbH Kabel BW, 6.125%, due 01/15/25¹	$	200,000		197,630
Total Germany corporate bonds				467,937
Ireland: 1.25%
Bank of Ireland, 10.000%, due 07/30/16	EUR	100,000		112,925
XL Group PLC, Series E, 6.500%, due 04/15/17^2,3	$	300,000		217,875
Total Ireland corporate bonds				330,800
Luxembourg: 1.66%
ArcelorMittal, 6.500%, due 03/01/21		250,000		201,222
Intelsat Jackson Holdings SA, 7.500%, due 04/01/21		275,000		239,250
Total Luxembourg corporate bonds				440,472

	Face amount		Value
Malaysia: 0.75%
SSG Resources Ltd., 4.250%, due 10/04/22⁴	$	200,000	$	200,089
Mexico: 1.22%
Cemex SAB de CV, 5.875%, due 03/25/19¹		200,000		190,000
Petroleos Mexicanos, 6.625%, due 06/15/35		150,000		133,875
Total Mexico corporate bonds				323,875
Netherlands: 0.59%
Basell Finance Co. BV, 8.100%, due 03/15/27¹		125,000		155,992
Norway: 2.05%
Eksportfinans ASA, 5.500%, due 05/25/16		280,000		283,520
5.500%, due 06/26/17		250,000		259,985
Total Norway corporate bonds				543,505
Portugal: 1.07%
EDP Finance BV, 4.900%, due 10/01/19¹		275,000		283,196
Singapore: 0.78%
Olam International Ltd., 5.750%, due 09/20/17		200,000		206,500
Switzerland: 0.75%
Credit Suisse Group AG, 6.250%, due 12/18/24^1,2,3		200,000		199,850
United Kingdom: 6.63%
Barclays Bank PLC, 4.375%, due 09/11/24		550,000		537,801
Lloyds Bank PLC, 6.500%, due 03/24/20⁴	EUR	400,000		525,937
Pension Insurance Corp. PLC, 6.500%, due 07/03/24⁴	GBP	100,000		143,750
Royal Bank of Scotland Group PLC, 6.100%, due 06/10/23	$	510,000		548,211
Total United Kingdom corporate bonds				1,755,699
United States: 27.75%
ADT Corp., 3.500%, due 07/15/22		340,000		304,300
Allstate Corp., 5.750%, due 08/15/53²		400,000		411,200

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Concluded)
United States—(Concluded)
Ally Financial, Inc., 3.500%, due 01/27/19	$	150,000	$	147,938
Bank of America Corp., 4.000%, due 01/22/25		450,000		440,881
CalAtlantic Group, Inc., 6.250%, due 12/15/21		80,000		85,400
6.625%, due 05/01/20		80,000		87,200
Case New Holland Industrial, Inc., 7.875%, due 12/01/17		265,000		280,238
CCO Safari II LLC, 6.484%, due 10/23/45¹		150,000		150,053
Citigroup, Inc., Series M, 6.300%, due 05/15/24^2,3		575,000		560,625
DISH DBS Corp., 7.875%, due 09/01/19		265,000		288,188
DR Horton, Inc., 4.000%, due 02/15/20		119,000		119,678
Frontier Communications Corp., 7.125%, due 01/15/23		250,000		215,625
General Motors Financial Co., Inc., 3.000%, due 09/25/17		140,000		140,475
4.750%, due 08/15/17		150,000		155,473
Host Hotels & Resorts LP, Series E, 4.000%, due 06/15/25		110,000		105,485
International Lease Finance Corp., 5.750%, due 05/15/16		100,000		101,375
Kinder Morgan Finance Co. LLC, 5.700%, due 01/05/16		210,000		210,104
Kinder Morgan, Inc., 7.250%, due 06/01/18		275,000		285,545
Lennar Corp., 4.750%, due 05/30/25		110,000		107,525
MetLife, Inc., 6.400%, due 12/15/36		445,000		486,163
Morgan Stanley, Series J, 5.550%, due 07/15/20^2,3		90,000		90,000
PNC Preferred Funding Trust I, 2.162%, due 03/15/17^1,2,3		400,000		356,000
Prudential Financial, Inc., 5.200%, due 03/15/44²		385,000		371,718
5.875%, due 09/15/42²		200,000		207,900
Quicken Loans, Inc., 5.750%, due 05/01/25¹		170,000		161,925
Realogy Group LLC / Sunshine Group Florida Ltd., 3.375%, due 05/01/16¹		130,000		130,402

	Face amount		Value
Regency Energy Partners LP, 5.500%, due 04/15/23	$	160,000	$	143,867
Sabine Pass Liquefaction LLC, 6.250%, due 03/15/22		250,000		231,250
Schlumberger Holdings Corp., 4.000%, due 12/21/25¹		50,000		49,365
Seagate HDD Cayman, 5.750%, due 12/01/34¹		120,000		83,971
Starwood Hotels & Resorts Worldwide, Inc., 3.750%, due 03/15/25		60,000		58,757
4.500%, due 10/01/34		80,000		72,076
Synchrony Financial, 4.500%, due 07/23/25		80,000		79,853
Transocean, Inc., 6.800%, due 03/15/38		110,000		59,211
USG Corp., 5.875%, due 11/01/21¹		80,000		83,200
Virgin Media Secured Finance PLC, 6.000%, due 04/15/21¹	GBP	189,000		287,735
Wells Fargo & Co., 4.900%, due 11/17/45	$	100,000		100,931
Whole Foods Market, Inc., 5.200%, due 12/03/25¹		100,000		99,909
Total United States corporate bonds				7,351,541
Total corporate bonds (cost $14,485,024)				13,891,490
Asset-backed securities: 0.80%
United States: 0.80%
AmeriCredit Automobile Receivables Trust, Series 2011-5, Class D, 5.050%, due 12/08/17		60,000		60,580
Santander Drive Auto Receivables Trust, Series 2012-2, Class D, 3.870%, due 02/15/18		150,000		151,624
Total asset-backed securities (cost $212,539)				212,204
Collateralized debt obligations: 2.91%
United States: 2.91%
Apidos XIV CLO, Series 2013-14A, Class C1, 3.170%, due 04/15/25^1,2		300,000		293,250
Ares XXVII CLO Ltd., Series 2013-2A, Class C, 3.073%, due 07/28/25^1,2		500,000		478,750
Total collateralized debt obligations (cost $780,382)				772,000

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Concluded)
Commercial mortgage-backed security: 0.73%
United States: 0.73%
BXHTL Mortgage Trust, Series 2015-JWRZ, Class GL2, 4.019%, due 05/15/29^1,2(cost $199,000)	$	200,000	$	193,041
Mortgage & agency debt securities: 1.32%
United States: 1.32%
Federal Home Loan Mortgage Corp. REMIC, IO,⁵3.000%, due 05/15/27		890,286		80,215
Federal National Mortgage Association REMIC, IO,⁵Series 2013-87, Class IW, 2.500%, due 06/25/28		2,943,584		269,722
Total mortgage & agency debt securities (cost $366,946)				349,937
Municipal bonds: 3.41%
City of Chicago, GO Bonds, Series B, 7.750%, due 01/01/42		180,000		178,879
State of California, GO Bonds, 7.300%, due 10/01/39		250,000		349,315
State of Illinois, GO Bonds, 5.665%, due 03/01/18		355,000		374,152
Total municipal bonds (cost $806,335)				902,346
US government obligations: 27.89%
US Treasury Bonds, PO, 3.123%, due 08/15/42		150,000		65,583
US Treasury Inflation Indexed Bond (TIPS), 0.750%, due 02/15/45⁶		625,000		548,054
US Treasury Inflation Indexed Note (TIPS), 0.125%, due 04/15/20⁶		1,300,000		1,302,525
US Treasury Notes, 1.375%, due 09/30/20		300,000		294,889
1.625%, due 11/30/20		650,000		646,316
1.750%, due 05/15/22		3,350,000		3,295,512
2.125%, due 05/15/25⁷		1,250,000		1,233,614
Total US government obligations (cost $7,397,513)				7,386,493
Non-US government obligations: 3.64%
Croatia: 1.96%
Republic of Croatia, 6.250%, due 04/27/17⁴		500,000		518,000

	Face amount		Value
Cyprus: 0.34%
Republic of Cyprus, 3.875%, due 05/06/22	EUR	80,000	$	90,375
Greece: 0.50%
Hellenic Republic, 3.000%, due 02/24/36⁸		100,000		61,237
3.375%, due 07/17/17¹		70,000		71,529
				132,766
United Arab Emirates: 0.84%
Abu Dhabi Government International Bond, 6.750%, due 04/08/19⁴	AUD	280,000		223,688
Total Non-US government obligations (cost $973,535)				964,829
Total bonds (cost $25,221,274)				24,672,340
Short-term investments: 2.27%
Commercial paper: 0.46%
Spectra Energy Partners LP, 0.948%, due 01/05/16^1,9(cost $119,988)		120,000		119,985
	Shares
Investment company: 1.81%
JPMorgan U.S. Government Money Market Fund, Capital Shares (cost $480,542)		480,542		480,542
Total short-term investments (cost $600,530)				600,527
	Face amount covered by contracts
Options purchased: 1.83%
Call options: 0.04%
Foreign Exchange Option, Buy USD/EUR, strike@ EUR 0.95, expires January 2016, counterparty: MSC	$	610,000		418

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount covered by contracts		Value
Options purchased—(Continued)
Call options—(Concluded)
Foreign Exchange Option, Buy USD/EUR, strike@ EUR 0.93, expires March 2016, counterparty: MSC	$	600,000	$	8,947
Foreign Exchange Option, Buy USD/JPY, strike@ JPY 120.94, expires January 2016, counterparty: MSC		600,000		3,150
				12,515
	Number of contracts
Put options: 0.97%
1 Year Euro-Dollar Midcurve, strike@ USD 98.50, expires March 2016,		113		16,950
10 Year US Treasury Notes, strike@ USD 125.50, expires January 2016,		92		35,938
10 Year US Treasury Notes, strike@ USD 127.00, expires January 2016,		44		56,375
3 Year Euro-Dollar Midcurve, strike@ USD 99.00, expires June 2016,		122		12,962
3 Year Euro-Dollar Midcurve, strike@ USD 98.25, expires June 2016,		89		556
30 Year US Treasury Notes, strike@ USD 153.00, expires January 2016,		118		129,063
Foreign Exchange Option, Buy USD/INR, strike@ INR 67.34, expires March 2016, counterparty: MLI		550,000		4,601
				256,445

	Notional Amount		Value
Options purchased on interest rate swaps: 0.66%¹⁰
Expiring 01/17/18. If option exercised the Fund pays semi-annually 4.380% and receives quarterly floating 3 month USD LIBOR. Underlying interest rate swap terminating 01/19/48. European style. Counterparty: JPMCB	$	2,675,000	$	20,211
Expiring 12/07/17. If option exercised the Fund pays semi-annually 3.000% and receives quarterly floating 3 month USD LIBOR. Underlying interest rate swap terminating 12/11/22. European style. Counterparty: BB		8,650,000		72,916
Expiring 12/07/17. If option exercised the Fund pays semi-annually 3.000% and receives quarterly floating 3 month USD LIBOR. Underlying interest rate swap terminating 12/11/22. European style. Counterparty: BB		3,500,000		29,591
Expiring 06/17/16. If option exercised the Fund pays semi-annually 1.078% and receives quarterly floating 3 month USD LIBOR. Underlying interest rate swap terminating 06/21/17. European style. Counterparty: MLI		30,500,000		53,070
				175,788

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Notional Amount		Value
Options purchased—(Concluded)
Options purchased on credit default swaps on credit indices: 0.16%¹⁰
Expiring 01/20/16. If exercised the payment from the counterparty will be made upon the occurrence of a failure to pay, obligation acceleration, repudiation or restructuring of referenced obligation specified in the CDX.NA.IG Series 25 Index and the Fund receive quarterly fixed rate of 1.000% per annum. Underlying credit default swap terminating 12/20/20. European style. Counterparty: JPMCB	$	1,400,000	$	2,139

	Notional Amount		Value
Expiring 06/15/16. If exercised the payment from the counterparty will be made upon the occurrence of a failure to pay, obligation acceleration, repudiation or restructuring of referenced obligation specified in the CDX.NA.IG Series 25 Index and the Fund receive quarterly fixed rate of 1.000% per annum. Underlying credit default swap terminating 12/20/20. European style. Counterparty: BB	$	5,650,000	$	38,875
				41,014
Total options purchased (cost $1,145,684)				485,762
Total investments: 97.24% (cost $26,967,488)				25,758,629
Cash and other assets, less liabilities: 2.76%				730,608
Net assets: 100.00%			$	26,489,237

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	$	290,958
Gross unrealized depreciation		(1,499,817	)
Net unrealized depreciation of investments	$	(1,208,859	)

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2015 (unaudited)

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation/ (depreciation)
BB	BRL	130,000	USD	33,856	03/16/16	$	1,758
BB	PEN	120,000	USD	35,016	03/16/16		280
BB	RUB	2,930,000	USD	41,192	03/16/16		1,814
CIBC	USD	291,389	CAD	405,000	01/11/16		1,306
CSI	BRL	125,000	USD	32,035	03/16/16		1,172
CSI	MYR	140,000	USD	32,579	03/16/16		138
CSI	RUB	2,935,000	USD	41,251	03/16/16		1,805
CSI	TRY	90,000	USD	30,058	03/16/16		(183	)
CSI	USD	17,678	MXN	300,000	03/16/16		(361	)
GSI	MXN	300,000	USD	17,535	03/16/16		218
GSI	USD	86,342	RUB	5,865,000	03/16/16		(7,518	)
JPMCB	AUD	745,000	USD	544,077	01/11/16		1,348
JPMCB	CAD	200,000	USD	149,435	01/11/16		4,894
JPMCB	CHF	150,000	USD	146,056	01/11/16		(3,742	)
JPMCB	EUR	1,165,000	USD	1,232,276	01/11/16		(33,982	)
JPMCB	GBP	390,000	USD	583,498	01/11/16		8,550
JPMCB	NZD	365,000	USD	241,760	01/11/16		(7,788	)
JPMCB	USD	43,565	AUD	60,000	01/11/16		145
JPMCB	USD	173,066	GBP	115,000	01/11/16		(3,531	)
JPMCB	USD	249,828	NZD	365,000	01/11/16		(280	)
JPMCB	USD	303,623	SEK	2,640,000	01/11/16		9,172
MSC	USD	625,000	JPY	75,597,500	01/12/16		4,075
Net unrealized depreciation on forward foreign currency contracts						$	(20,710	)

Futures contracts

	Expiration date	Cost/ (proceeds)			Value			Unrealized appreciation/ (depreciation)
US Treasury futures buy contracts:
US Long Bond, 51 contracts (USD)	March 2016	$	7,900,856		$	7,841,250		$	(59,606	)
5 Year US Treasury Notes, 9 contracts (USD)	March 2016		1,068,599			1,064,883			(3,716	)
10 Year US Treasury Notes, 76 contracts (USD)	March 2016		9,594,354			9,568,875			(25,479	)
US Treasury futures sell contracts:
US Ultra Bond, 10 contracts (USD)	March 2016		(1,588,484	)		(1,586,875	)		1,609
Interest rate futures buy contracts:
Euro-BTP, 3 contracts (EUR)	March 2016		455,606			449,654			(5,952	)
Interest rate futures sell contracts:
Euro-Bobl, 10 contracts (EUR)	March 2016		(1,433,118	)		(1,420,056	)		13,062
Euro-Bund, 2 contracts (EUR)	March 2016		(343,405	)		(343,240	)		165
Long Gilt, 1 contract (GBP)	March 2016		(173,126	)		(172,142	)		984
Net unrealized depreciation on futures contracts								$	(78,933	)

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2015 (unaudited)

Interest rate swap agreements

Counterparty	Notional amount		Termination date	Payments made by the Fund¹¹			Payments received by the Fund¹¹			Upfront payments made			Value			Unrealized appreciation/ (depreciation)
CSI	CAD	5,490,000	02/11/17		3 month BBA			3.500	%	$	(17,141	)	$	162,259		$	145,118
CSI	CAD	1,550,000	02/11/22		4.145	%		3 month BBA			—			(199,654	)		(199,654	)
JPMCB	CAD	5,490,000	02/11/17		3.500			3 month BBA			—			(162,258	)		(162,258	)
JPMCB	CAD	1,550,000	02/11/22		3 month BBA			4.145			—			199,654			199,654
JPMCB	USD	4,500,000	02/18/16		2.532			3 month USD LIBOR			—			(52,751	)		(52,751	)
JPMCB	USD	22,500,000	07/03/42		1 month USD LIBOR			3 month USD LIBOR			—			572,325			572,325
MLI	CAD	9,280,000	04/09/17		3 month BBA			1.978			—			118,736			118,736
MSC	CAD	8,870,000	04/08/17		3.600			3 month BBA			—			(269,405	)		(269,405	)
										$	(17,141	)	$	368,906		$	351,765

Credit default swaps on corporate and sovereign issues—buy protection¹²

Counterparty	Referenced obligation¹³	Notional amount		Termination date	Payments made by the Fund¹¹			Upfront payments (made)/ received			Value			Unrealized appreciation/ (depreciation)
BB	Standard Chartered Bank PLC bond, 0.000%, due 06/25/32	EUR	570,000	09/20/20		1.000	%	$	(2,354	)	$	8,930		$	6,576
BB	Kingdom of Saudi Arabia, 1.000%, due 12/20/20	USD	290,000	12/20/20		1.000			(8,043	)		7,017			(1,026	)
CITI	Volkswagen AG bond, 5.375%, due 05/22/18	EUR	285,000	12/20/20		1.000			(17,351	)		7,549			(9,802	)
CITI	Russian Federation bond, 7.500%, due 03/31/30	USD	600,000	12/20/20		1.000			(53,414	)		55,018			1,604
GSI	State of Qatar bond, 9.750%, due 06/15/30	USD	560,000	12/20/20		1.000			2,115			(3,257	)		(1,142	)
GSI	Government of Abu Dhabi, 6.750%, due 04/08/19	USD	560,000	12/20/20		1.000			2,911			(3,257	)		(346	)
MSC	V.F. Corp. bond, 5.950%, due 11/01/17	USD	500,000	12/20/16		1.000			1,254			(4,722	)		(3,468	)
MSC	International Business Machines Corp. bond, 5.700%, due 09/14/17	USD	300,000	12/20/20		1.000			6,163			(8,190	)		(2,027	)
MSC	McDonald's Corp. bond, 5.800%, due 10/15/17	USD	300,000	12/20/20		1.000			7,188			(9,497	)		(2,309	)
								$	(61,531	)	$	49,591		$	(11,940	)

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2015 (unaudited)

Credit default swaps on credit indices—sell protection¹⁴

Counterparty	Referenced index¹³	Notional amount		Termination date	Payments received by the Fund¹¹			Upfront payments (made)/ received			Value			Unrealized appreciation/ (depreciation)			Credit spread¹⁵
CSI	CMBX.NA.BBB. Series 6 Index	USD	1,050,000	05/11/63		3.000	%	$	42,454		$	(32,477	)	$	9,977			3.480	%
MLI	CMBX.NA.BB. Series 6 Index	USD	700,000	05/11/63		5.000			(21,859	)		(29,994	)		(51,853	)		4.925
MSC	MCDX.NA. Series 24 Index	USD	700,000	06/20/25		1.000			18,042			(20,219	)		(2,177	)		1.448
MSC	CMBX.NA.BB. Series 6 Index	USD	1,000,000	05/11/63		5.000			(31,887	)		(42,848	)		(74,735	)		4.925
								$	6,750		$	(125,538	)	$	(118,788	)

Credit default swaps on sovereign issues—sell protection¹⁴

Counterparty	Referenced obligation¹³	Notional amount		Termination date	Payments received by the Fund¹¹			Upfront Payments received		Value			Unrealized appreciation/ (depreciation)			Credit spread¹⁵
CITI	State of Illinois bond, 5.000%, due 06/01/29	USD	370,000	12/20/23		1.000	%	$	22,790	$	(39,268	)	$	(16,478	)		2.563	%
MSC	Portuguese Republic bond, 4.950%, due 10/25/23	USD	330,000	09/20/20		1.000			9,970		(9,663	)		307			1.662
								$	32,760	$	(48,931	)	$	(16,171	)

Total return swap agreements¹⁰

Counterparty	Notional amount		Termination date	Payments made by the Fund¹¹	Payments received by the Fund¹¹		Upfront payments		Value			Unrealized depreciation
GSI		550,000	06/23/16	3 month EURIBOR		—¹⁶	$	—	$	(6,930	)	$	(6,930	)
JPMCB		450,000	06/20/16	3 month EURIBOR		—¹⁶		—		(4,397	)		(4,397	)
							$	—	$	(11,327	)	$	(11,327	)

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2015 (unaudited)

Centrally cleared interest rate swap agreements

Notional amount		Termination date	Payments made by the Fund¹¹			Payments received by the Fund¹¹			Value			Unrealized appreciation/ (depreciation)
GBP	5,320,000	06/17/17		6 month GBP LIBOR			2.190	%	$	144,734		$	144,734
GBP	1,400,000	06/17/25		3.145	%	6 month GBP LIBOR				(216,791	)		(216,791	)
USD	975,000	12/31/17		1.193		3 month USD LIBOR				850			850
USD	2,885,000	12/21/18		1.627		3 month USD LIBOR				(19,180	)		(19,180	)
USD	3,150,000	09/24/19		2.347		3 month USD LIBOR				(111,397	)		(111,397	)
USD	900,000	10/23/20		1.401		3 month USD LIBOR				11,233			11,233
USD	4,250,000	11/30/22		1.985		3 month USD LIBOR				9,026			9,026
USD	8,250,000	12/12/23		3.200		3 month USD LIBOR				(713,238	)		(713,238	)
USD	850,000	08/06/32		2.711		3 month USD LIBOR				(15,315	)		(15,315	)
									$	(910,078	)	$	(910,078	)

Centrally cleared credit default swaps on credit indices—buy protection¹²

Referenced index¹³	Notional amount		Termination date	Payments made by the Fund¹¹			Value			Unrealized appreciation/ (depreciation)
CDX.NA.IG. Series 24 Index	USD	4,100,000	06/20/25		1.000	%	$	85,491		$	73,740
CDX.NA.HY. Series 25 Index	USD	5,980,000	12/20/20		5.000			(81,028	)		(6,067	)
CDX.NA.IG. Series 25 Index	USD	11,050,000	12/20/20		1.000			(63,742	)		11,922
							$	(59,279	)	$	79,595

Options written

	Expiration date	Premiums received		Value
Call options
1 Year Euro-Dollar Midcurve, 113 contracts, strike @ USD 99.00	March 2016	$	12,317	$	(2,825	)
Put options
Foreign Exchange Option, Sell USD/CNY, 610,000 contracts, strike @ CNY 6.53, counterparty: MLI	February 2016		11,187		(2,338	)
Foreign Exchange Option, Sell USD/CNY, 610,000 contracts, strike @ CNY 6.50, counterparty: MLI	February 2016		8,519		(2,040	)
Foreign Exchange Option, Sell USD/CNY, 550,000 contracts, strike @ CNY 6.65, counterparty: MLI	March 2016		7,224		(6,993	)
Foreign Exchange Option, Sell USD/EUR, 610,000 contracts, strike @ EUR 0.89, counterparty: MSC	May 2016		7,198		(7,689	)
Foreign Exchange Option, Sell USD/EUR, 600,000 contracts, strike @ EUR 0.87, counterparty: MLI	June 2016		5,314		(4,791	)
Foreign Exchange Option, Sell USD/JPY, 900,000 contracts, strike @ JPY 118.00, counterparty: MSC	April 2016		13,122		(11,148	)

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2015 (unaudited)

Options written (Concluded)

	Expiration date	Premiums received		Value
Options written on interest rate swaps¹⁰
If option exercised the Fund receives semi-annually 4.320% and pays quarterly floating 3 month USD LIBOR. Underlying interest rate swap terminating 01/19/20. European style. Counterparty: JPMCB, Notional Amount USD 23,000,000	January 2018	$	250,495	$	(14,118	)
If option exercised the Fund receives semi-annually 5.000% and pays quarterly floating 3 month USD LIBOR. Underlying interest rate swap terminating 12/11/22. European style. Counterparty: BB, Notional Amount USD 3,500,000	December 2017		74,375		(2,722	)
If option exercised the Fund receives semi-annually 5.000% and pays quarterly floating 3 month USD LIBOR. Underlying interest rate swap terminating 12/11/22. European style. Counterparty: BB, Notional Amount USD 8,650,000	December 2017		97,313		(6,700	)
Options written on credit default swaps on credit indices¹⁰
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 25 Index and the Fund pays quarterly fixed rate of 5.000% per annum. Underlying credit default swap terminating 12/20/20. European style. Counterparty: BB, Notional Amount USD 1,400,000	April 2016		28,980		(19,859	)
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 25 Index and the Fund pays quarterly fixed rate of 5.000% per annum. Underlying credit default swap terminating 12/20/20. European style. Counterparty: BB, Notional Amount USD 880,000	February 2016		5,456		(1,251	)
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 25 Index and the Fund pays quarterly fixed rate of 5.000% per annum. Underlying credit default swap terminating 12/20/20. European style. Counterparty: DB, Notional Amount USD 1,500,000	February 2016		7,050		(2,133	)
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 25 Index and the Fund pays quarterly fixed rate of 1.000% per annum. Underlying credit default swap terminating 12/20/20. European style. Counterparty: BB, Notional Amount USD 5,650,000	June 2016		26,273		(17,766	)
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 25 Index and the Fund pays quarterly fixed rate of 1.000% per annum. Underlying credit default swap terminating 12/20/20. European style. Counterparty: MLI, Notional Amount USD 6,100,000	March 2016		13,725		(10,557	)
Total options written		$	568,548	$	(112,930	)

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2015 (unaudited)

Written options activity for the period ended December 31, 2015 was as follows:

	Number of contracts			Premiums received
Options outstanding at June 30, 2015		213		$	211,156
Options written		555			180,200
Options terminated in closing purchase transactions		(655	)		(379,039	)
Options expired prior to exercise		—
Options outstanding at December 31, 2015		113		$	12,317

Written swaptions & foreign exchange options activity for the period ended December 31, 2015 was as follows:

Swaptions and foreign exchange options outstanding at June 30, 2015	$	645,279
Swaptions and foreign exchange options written		261,903
Swaptions and foreign exchange options terminated in closing purchase transactions		(350,951	)
Swaptions and foreign exchange options expired prior to exercise		—
Swaptions and foreign exchange options outstanding at December 31, 2015	$	556,231

The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 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
Assets
Corporate bonds	$	—		$	13,891,490		$	—	$	13,891,490
Asset-backed securities		—			212,204			—		212,204
Collateralized debt obligations		—			772,000			—		772,000
Commercial mortgage-backed security		—			193,041			—		193,041
Mortgage & agency debt securities		—			349,937			—		349,937
Municipal bonds		—			902,346			—		902,346
US government obligations		—			7,386,493			—		7,386,493
Non-US government obligations		—			964,829			—		964,829
Short-term investments		480,542			119,985			—		600,527
Options purchased		251,844			233,918			—		485,762
Forward foreign currency contracts		—			36,675			—		36,675
Futures contracts		15,820			—			—		15,820
Swap agreements, at value		—			1,382,822			—		1,382,822
Total	$	748,206		$	26,445,740		$	—	$	27,193,946
Liabilities
Forward foreign currency contracts	$	—		$	(57,385	)	$	—	$	(57,385	)
Futures contracts		(94,753	)		—			—		(94,753	)
Swap agreements, at value		—			(2,119,478	)		—		(2,119,478	)
Options written		(2,825	)		(110,105	)		—		(112,930	)
Total	$	(97,578	)	$	(2,286,968	)	$	—	$	(2,384,546	)

During the period ended December 31, 2015, there were no transfers between Level 1 and Level 2.

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Commercial Mortgage-backed Security			Total
Assets
Beginning balance	$	198,000		$	198,000
Purchases		—			—
Issuances		—			—
Sales		—			—
Accrued discounts (premiums)		—			—
Total realized gain (loss)		—			—
Change in net unrealized appreciation/depreciation		(4,959	)		(4,959	)
Transfers into Level 3		—			—
Transfers out of Level 3¹⁷		(193,041	)		(193,041	)
Ending balance	$	—		$	—

Portfolio footnotes

² Variable or floating rate security—The interest rate shown is the current rate as of December 31, 2015 and changes periodically.

³ Perpetual investment. Date shown reflects the next call date.

⁵ 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.

⁶ Debt security whose principal and/or interest payments are adjusted for inflation, unlike debt securities that make fixed principal and interest payments. The interest rate paid by the securities is fixed, while the principal value rises or falls based on changes in an index. Thus, if inflation occurs, the principal and interest payments on the securities are adjusted accordingly to protect investors from inflationary loss. During a deflationary period, the principal and interest payments decrease, although the securities' principal amounts will not drop below their face amounts at maturity. In exchange for the inflation protection, the securities generally pay lower interest rates than typical government securities from the issuer's country. Only if inflation occurs will securities offer a higher real yield than a conventional security of the same maturity.

⁷ All or a portion of these securities have been designated as collateral for open swap agreements.

⁸ Step bond—Coupon rate increases in increments to maturity. Rate disclosed is as of December 31, 2015. Maturity date disclosed is the ultimate maturity date.

⁹ Security exempt from registration under Section 4(2) of the Securities Act of 1933. These securities are considered liquid, unless otherwise noted, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2015, the value of these securities amounted to $119,985, or 0.45% of net assets.

¹⁰ Illiquid investment as of December 31, 2015.

¹¹ Payments made or received are based on the notional amount.

¹² 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/obligation, or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index/obligation.

¹³ Payments from/to the counterparty will be received/made upon the occurrence of bankruptcy and/or restructuring event with respect to the referenced index/obligation.

UBS Fixed Income Opportunities Fund

Portfolio of investments

December 31, 2015 (unaudited)

¹⁴ 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/obligation or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index/obligation.

¹⁵ 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.

¹⁶ Payment is based on the performance of the underlying Markit iBoxx EUR Liquid High Yield Index.

¹⁷ Transfers out of Level 3 represent the value at the end of period. At December 31, 2015, securities were also transferred from Level 3 to level 2 as the valuations are based primarily an observable inputs from an established pricing source.

The table below details the Fund's investment in a fund 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 06/30/15				Purchases during the six months ended 12/31/15				Sales during the six months ended 12/31/15				Value 12/31/15				Net income earned from affiliate for the six months ended 12/31/15
UBS Cash Management Prime Relationship Fund				$	1,533,682			$	10,602,941			$	12,136,623			$	—			$	434

See accompanying notes to financial statements.
91

UBS Core Plus Bond Fund

Portfolio performance

For the six months ended December 31, 2015, Class A shares of UBS Core Plus Bond Fund (the "Fund") returned 0.05% (Class A shares returned -4.49% after the deduction of the maximum sales charge), while Class P shares returned 0.16%. The Fund's benchmark, the Barclays US Aggregate Index (the "Index"), returned 0.65% over the same time period. (Class P shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 94; 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 return was about flat during the reporting period and underperformed the Barclays Aggregate, primarily due to its exposure to energy-related companies.

The Fund used derivatives during the reporting period. Certain interest rate derivatives were utilized to facilitate specific duration and yield curve strategies. Credit derivatives (such as credit default swaps and options on credit default swaps) were used to implement specific credit-related investment strategies as part of the Fund's sector allocation and security selection. Throughout the period, the Fund engaged in foreign exchange forwards to help implement its active currency positions. While derivatives play a role in the overall portfolio construction process, they are just one of the tools we use to manage the Fund's overall risk exposure and to implement the aforementioned strategies.

Portfolio performance summary¹

What worked:

• Currency positioning was additive to performance during the reporting period. The Fund's exposure to the US dollar against a basket of developed market currencies contributed to performance. At various times during the period, the Fund was long the US dollar versus short the New Zealand dollar, Australian dollar and Canadian dollar, which benefited returns as all three currencies underperformed the US dollar during the period.

• Yield curve positioning was additive to performance. The Fund was positioned to benefit from a flattening of the yield curve during the reporting period. (When the yield curve flattens, yields on shorter maturity bonds rise more than yields on longer maturity bonds.) This played out during the reporting period, as shorter-term yields increased as investors started to price in the likelihood of rate hikes by the Federal Reserve Board, while longer-term yields declined given strong overseas demand.

What didn't work:

• The Fund's allocation to corporate credit detracted from performance during the reporting period. The Fund's allocation to both investment grade and high yield corporate debt was negative for performance, as corporate spreads widened during the reporting period. Security selection of commodity-related credit detracted from performance, as the continued declines in commodity prices led to weak results. Security selection in high yield corporate credit, in particular, underperformed due to the further declines in the price of oil. The negative performance from security selection was partially offset by beta index hedging.

• The Fund's mortgage-backed securities positioning detracted from performance. Both sector allocation and security selection within the agency mortgage-backed security sector detracted from results during the reporting period.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 3.

UBS Core Plus Bond Fund

Average annual total returns for periods ended 12/31/15 (unaudited)

	6 months			1 year			5 years			10 years
Before deducting maximum sales charge
Class A¹		0.05	%		(0.45	)%		3.48	%		2.52	%
Class C²		(0.21	)		(0.85	)		2.97			2.00
Class P³		0.16			(0.22	)		3.74			2.76
After deducting maximum sales charge
Class A¹		(4.49	)%		(4.91	)%		2.52	%		2.06	%
Class C²		(0.95	)		(1.58	)		2.97			2.00
Barclays US Aggregate Index⁴		0.65	%		0.55	%		3.25	%		4.51	%

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2015 prospectuses were as follows: Class A—1.75% and 0.66%; Class C—2.38% and 1.16%; Class P—1.45% and 0.41%. 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 Asset Management (Americas) Inc. (formerly, UBS Global Asset Management (Americas) Inc.), the Fund's investment advisor ("UBS 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, 2016, do not exceed 0.64% for Class A shares, 1.14% for Class C shares and 0.39% for Class P 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. The fee waiver/expense reimbursement agreement may be terminated by the Fund's Board of Trustees at any time and also will terminate automatically upon the expiration or termination of the Fund's advisory contract with the Advisor. Upon termination of the fee waiver/expense reimbursement agreement, however, the UBS AM (Americas)'s three year recoupment rights will survive.

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 C shares is 0.75% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 distribution and service fees.

⁴ The Barclays US Aggregate Index is an unmanaged broad based index designed to measure the US dollar-denominated, investment-grade, taxable bond market. The index includes bonds from the Treasury, government-related, corporate, mortgage-backed, asset-backed and commercial mortgage-backed sectors. Investors should note that indices do not reflect the deduction of fees and expenses.

UBS Core Plus Bond Fund

Top ten long-term fixed income holdings (unaudited)

As of December 31, 2015

	Percentage of net assets
Federal National Mortgage Association Pools, 3.500%, TBA		10.3	%
Federal National Mortgage Association Pools, 4.000%, TBA		3.6
US Treasury Notes, 2.250%, due 11/15/25		3.1
Federal National Mortgage Association Pools, 4.500%, TBA		3.0
US Treasury Inflation Indexed Notes (TIPS), 2.000%, due 01/15/16		3.0
Federal Home Loan Mortgage Corp. Gold Pools, 4.000%, TBA		2.8
Government National Mortgage Association Pools, 3.500%, TBA		2.3
US Treasury Inflation Indexed Notes (TIPS), 0.125%, due 04/15/20		2.3
US Treasury Bonds, 2.875%, due 05/15/43		1.7
Federal National Mortgage Association Pools, 4.000%, TBA		1.6
Total		33.7	%

UBS Core Plus Bond Fund

Industry diversification (unaudited)

As a percentage of net assets as of December 31, 2015

Bonds
Corporate bonds
Air freight & logistics	0.13	%
Automobiles	0.11
Banks	5.69
Beverages	0.06
Biotechnology	0.36
Building products	0.38
Capital markets	1.35
Chemicals	0.36
Commercial services & supplies	0.26
Communications equipment	0.07
Consumer finance	1.33
Diversified financial services	1.08
Diversified telecommunication services	1.55
Electric utilities	2.01
Electronic equipment, instruments & components	0.24
Energy equipment & services	0.15
Food & staples retailing	0.45
Food products	0.15
Health care equipment & supplies	0.37
Health care providers & services	0.24
Hotels, restaurants & leisure	0.56
Household products	0.09
Independent power and renewable electricity producers	0.42
Insurance	1.46
Internet & catalog retail	0.16
IT services	0.12
Machinery	0.38
Media	1.90
Metals & mining	0.46
Multiline retail	0.14
Multi-utilities	0.51
Oil, gas & consumable fuels	3.74

Paper & forest products	0.12	%
Pharmaceuticals	0.80
Real estate investment trust (REIT)	0.59
Real estate management & development	0.04
Road & rail	0.66
Semiconductors & semiconductor equipment	0.06
Software	0.50
Specialty retail	0.33
Technology hardware, storage & peripherals	0.21
Tobacco	0.56
Trading companies & distributors	0.29
Total corporate bonds	30.44	%
Asset-backed securities	9.51
Commercial mortgage-backed securities	6.73
Mortgage & agency debt securities	32.30
Municipal bonds	1.62
US government obligations	15.14
Non-US government obligations	3.41
Total bonds	99.15	%
Short-term investment	26.72
Options purchased	0.06
Investment of cash collateral from securities loaned	0.03
Total investments	125.96	%
Liabilities, in excess of cash and other assets	(25.96	)
Net assets	100.00	%

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds: 99.15%
Corporate bonds: 30.44%
Australia: 0.09%
Australia & New Zealand Banking Group Ltd., 2.700%, due 11/16/20	$	30,000	$	30,102
Brazil: 0.42%
Petrobras Global Finance BV, 3.250%, due 03/17/17		110,000		101,574
Vale Overseas Ltd., 4.375%, due 01/11/22¹		55,000		41,555
Total Brazil corporate bonds				143,129
Canada: 0.70%
Anadarko Finance Co., Series B, 7.500%, due 05/01/31		70,000		74,384
NOVA Chemicals Corp., 5.250%, due 08/01/23²		70,000		69,300
Petro-Canada, 6.050%, due 05/15/18		50,000		53,600
Talisman Energy, Inc., 3.750%, due 02/01/21		50,000		45,355
Total Canada corporate bonds				242,639
China: 0.58%
Sinopec Group Overseas Development 2013 Ltd., 2.500%, due 10/17/18²		200,000		200,271
France: 0.24%
Total Capital International SA, 3.750%, due 04/10/24¹		80,000		81,298
Germany: 0.58%
Unitymedia Hessen GmbH & Co. KG, 5.500%, due 01/15/23²		200,000		199,500
Ireland: 0.07%
XL Group PLC, 6.375%, due 11/15/24		21,000		24,489
Israel: 0.31%
Teva Pharmaceutical Finance Co. BV, 2.400%, due 11/10/16		70,000		70,306
Teva Pharmaceutical Finance IV BV, 3.650%, due 11/10/21		34,000		34,502
Total Israel corporate bonds				104,808
Luxembourg: 0.29%
ArcelorMittal, 6.500%, due 03/01/21		61,000		49,098

	Face amount		Value
Intelsat Jackson Holdings SA, 7.500%, due 04/01/21	$	60,000	$	52,200
Total Luxembourg corporate bonds				101,298
Mexico: 0.47%
Petroleos Mexicanos, 4.875%, due 01/24/22		125,000		120,313
6.375%, due 01/23/45		50,000		42,375
Total Mexico corporate bonds				162,688
Netherlands: 0.27%
LYB International Finance BV, 4.875%, due 03/15/44		60,000		54,788
Shell International Finance BV, 2.250%, due 11/10/20		40,000		39,400
Total Netherlands corporate bonds				94,188
Norway: 0.51%
Eksportfinans ASA, 5.500%, due 06/26/17		140,000		145,591
Statoil ASA, 4.800%, due 11/08/43		30,000		30,403
Total Norway corporate bonds				175,994
Spain: 0.44%
Telefonica Emisiones SAU, 3.192%, due 04/27/18		150,000		152,927
United Kingdom: 1.13%
BP Capital Markets PLC, 3.062%, due 03/17/22		70,000		68,639
HSBC Holdings PLC, 6.500%, due 09/15/37		100,000		119,981
Lloyds Bank PLC, 6.500%, due 09/14/20²		100,000		114,028
Royal Bank of Scotland Group PLC, 6.100%, due 06/10/23		80,000		85,994
Total United Kingdom corporate bonds				388,642
United States: 24.34%
AbbVie, Inc., 2.500%, due 05/14/20		70,000		69,308
Actavis Funding SCS, 3.800%, due 03/15/25		20,000		19,900
ADT Corp., 3.500%, due 07/15/22		100,000		89,500
Alabama Power Co., 6.000%, due 03/01/39		20,000		23,771
Ally Financial, Inc., 6.250%, due 12/01/17		60,000		62,925

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
United States—(Continued)
Altria Group, Inc., 5.375%, due 01/31/44	$	65,000	$	69,904
9.950%, due 11/10/38		18,000		28,856
American Express Credit Corp., Series F, 2.600%, due 09/14/20		60,000		60,169
Apple, Inc., 3.850%, due 05/04/43		50,000		46,069
AvalonBay Communities, Inc., REIT, 3.450%, due 06/01/25		40,000		39,513
Bank of America Corp., Series L, 2.650%, due 04/01/19		70,000		70,155
4.200%, due 08/26/24		70,000		70,102
6.110%, due 01/29/37		100,000		113,470
BB&T Corp., 2.625%, due 06/29/20		120,000		120,739
Berkshire Hathaway Energy Co., 5.150%, due 11/15/43		30,000		31,657
Biogen, Inc., 4.050%, due 09/15/25		30,000		30,156
Boston Properties LP, REIT, 3.800%, due 02/01/24		110,000		111,902
Burlington Northern Santa Fe LLC, 5.150%, due 09/01/43		120,000		126,469
Capital One Financial Corp., 4.200%, due 10/29/25		40,000		39,515
Case New Holland Industrial, Inc., 7.875%, due 12/01/17		85,000		89,887
CCO Safari II LLC, 3.579%, due 07/23/20²		80,000		79,542
Celgene Corp., 5.000%, due 08/15/45		30,000		30,115
Chevron Corp., 3.191%, due 06/24/23		60,000		60,324
Cisco Systems, Inc., 5.900%, due 02/15/39		20,000		24,395
CIT Group, Inc., 5.500%, due 02/15/19²		70,000		73,150
Citigroup, Inc., 1.750%, due 05/01/18		85,000		84,286
5.500%, due 09/13/25		190,000		206,381
Comcast Corp., 6.950%, due 08/15/37		20,000		26,198
ConocoPhillips Holding Co., 6.950%, due 04/15/29		55,000		63,049
Consolidated Edison Co. of New York, Inc., 5.850%, due 03/15/36		45,000		53,434
CVS Health Corp., 5.125%, due 07/20/45		13,000		13,695

	Face amount		Value
DIRECTV Holdings LLC, 6.000%, due 08/15/40	$	40,000	$	40,904
DISH DBS Corp., 7.875%, due 09/01/19		70,000		76,125
Dollar General Corp., 3.250%, due 04/15/23		50,000		47,620
DPL, Inc., 7.250%, due 10/15/21		85,000		80,750
DTE Electric Co., 3.700%, due 03/15/45		25,000		22,971
Duke Energy Indiana, Inc., 6.350%, due 08/15/38		20,000		25,507
Duke Energy Progress LLC, 3.000%, due 09/15/21		160,000		163,180
Energy Transfer Partners LP, 9.000%, due 04/15/19		130,000		143,056
ERAC USA Finance LLC, 2.800%, due 11/01/18²		80,000		80,538
ERP Operating LP, 4.500%, due 06/01/45		15,000		15,235
4.750%, due 07/15/20		35,000		37,822
Exelon Generation Co. LLC, 2.950%, due 01/15/20		135,000		134,557
FedEx Corp., 3.875%, due 08/01/42		50,000		43,239
FirstEnergy Transmission LLC, 5.450%, due 07/15/44²		40,000		40,272
Flextronics International Ltd., 5.000%, due 02/15/23		80,000		81,100
Florida Power & Light Co., 5.950%, due 02/01/38		40,000		49,815
Ford Motor Co., 7.450%, due 07/16/31		30,000		37,003
Ford Motor Credit Co. LLC, 8.125%, due 01/15/20		125,000		147,278
Frontier Communications Corp., 8.500%, due 04/15/20		80,000		80,200
General Electric Capital Corp., 4.650%, due 10/17/21		55,000		60,817
Series A, 6.750%, due 03/15/32		40,000		52,265
General Motors Financial Co., Inc., 3.100%, due 01/15/19		40,000		39,950
3.700%, due 11/24/20		40,000		40,126
Georgia-Pacific LLC, 8.000%, due 01/15/24		10,000		12,652
Gilead Sciences, Inc., 4.750%, due 03/01/46		60,000		60,682
Goldman Sachs Group, Inc., 5.150%, due 05/22/45		30,000		29,121
5.750%, due 01/24/22		80,000		90,986
6.150%, due 04/01/18		100,000		108,593

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Continued)
United States—(Continued)
Hartford Financial Services Group, Inc., 5.950%, due 10/15/36	$	80,000	$	91,743
Home Depot, Inc., 3.350%, due 09/15/25		60,000		61,349
Illinois Tool Works, Inc., 3.500%, due 03/01/24		40,000		41,124
Intercontinental Exchange, Inc., 2.750%, due 12/01/20		40,000		40,007
International Lease Finance Corp., 7.125%, due 09/01/18²		90,000		98,662
International Paper Co., 3.800%, due 01/15/26¹		30,000		29,575
John Deere Capital Corp., 2.450%, due 09/11/20		30,000		29,949
JPMorgan Chase & Co., 3.875%, due 09/10/24		180,000		179,145
4.625%, due 05/10/21		90,000		97,264
Kimberly-Clark Corp., 3.625%, due 08/01/20		30,000		31,757
Kinder Morgan Energy Partners LP, 5.000%, due 10/01/21		80,000		75,532
6.500%, due 09/01/39		45,000		37,109
Kraft Heinz Foods Co., 5.200%, due 07/15/45²		50,000		52,210
Kroger Co., 3.850%, due 08/01/23		90,000		92,797
Lincoln National Corp., 7.000%, due 06/15/40		70,000		87,798
Lowe's Cos., Inc., 4.650%, due 04/15/42		50,000		52,850
Masco Corp., 4.450%, due 04/01/25		40,000		39,200
McDonald's Corp., 2.100%, due 12/07/18		30,000		30,024
Medtronic, Inc., 4.375%, due 03/15/35		70,000		70,721
MetLife, Inc., 4.125%, due 08/13/42		60,000		56,890
Microsoft Corp., 2.375%, due 02/12/22		50,000		49,368
4.450%, due 11/03/45		30,000		30,939
Morgan Stanley, 4.350%, due 09/08/26		60,000		60,232
Series J, 5.550%, due 07/15/20^3,4		70,000		70,000
5.625%, due 09/23/19		100,000		110,397
National Rural Utilities Cooperative Finance Corp., 2.300%, due 11/01/20		30,000		29,723

	Face amount		Value
NBCUniversal Media LLC, 4.375%, due 04/01/21	$	30,000	$	32,601
NRG Energy, Inc., 8.250%, due 09/01/20		10,000		9,700
Oracle Corp., 2.500%, due 05/15/22		50,000		49,106
5.375%, due 07/15/40		40,000		44,495
Pacific Gas & Electric Co., 5.800%, due 03/01/37		25,000		29,078
PacifiCorp, 6.000%, due 01/15/39		40,000		48,533
PepsiCo, Inc., 4.875%, due 11/01/40		20,000		21,380
Pfizer, Inc., 7.200%, due 03/15/39		60,000		82,627
Philip Morris International, Inc., 2.900%, due 11/15/21		60,000		60,714
PNC Funding Corp., 3.300%, due 03/08/22		100,000		102,397
PNC Preferred Funding Trust I, 2.162%, due 03/15/17^2,3,4		100,000		89,000
PPL Capital Funding, Inc., 3.950%, due 03/15/24		80,000		81,888
Principal Financial Group, Inc., 8.875%, due 05/15/19		90,000		107,723
Private Export Funding Corp., Series MM, 2.300%, due 09/15/20		150,000		150,968
Prudential Financial, Inc., 5.200%, due 03/15/44³		95,000		91,722
6.625%, due 12/01/37		34,000		41,627
QVC, Inc., 4.450%, due 02/15/25		60,000		55,653
Realogy Group LLC, 5.250%, due 12/01/21²		15,000		15,375
Regions Financial Corp., 2.000%, due 05/15/18		70,000		69,510
Reynolds American, Inc., 3.250%, due 11/01/22		30,000		29,679
Seagate HDD Cayman, 5.750%, due 12/01/34²		40,000		27,990
Sempra Energy, 9.800%, due 02/15/19		75,000		90,781
Southwestern Electric Power Co., 3.550%, due 02/15/22		85,000		86,280
Sprint Capital Corp., 6.900%, due 05/01/19		70,000		57,050
Starwood Hotels & Resorts Worldwide, Inc., 4.500%, due 10/01/34		50,000		45,047
SunTrust Bank, 7.250%, due 03/15/18		100,000		110,572

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Continued)
Corporate bonds—(Concluded)
United States—(Concluded)
Synchrony Financial, 4.500%, due 07/23/25	$	40,000	$	39,927
TCI Communications, Inc., 7.875%, due 02/15/26		50,000		67,606
Tenet Healthcare Corp., 6.000%, due 10/01/20		10,000		10,525
Texas Instruments, Inc., 1.650%, due 08/03/19		20,000		19,805
Time Warner Cable, Inc., 6.550%, due 05/01/37		35,000		35,400
Time Warner Entertainment Co. LP, 8.375%, due 03/15/23		110,000		135,176
Transocean, Inc., 4.300%, due 10/15/22		95,000		50,350
Union Pacific Corp., 4.050%, due 11/15/45		20,000		19,350
UnitedHealth Group, Inc., 4.625%, due 07/15/35		70,000		72,657
USG Corp., 5.875%, due 11/01/21²		50,000		52,000
6.300%, due 11/15/16		40,000		41,324
Valero Energy Corp., 6.625%, due 06/15/37		50,000		50,239
Verizon Communications, Inc., 2.252%, due 09/14/18³		50,000		51,197
4.522%, due 09/15/48		147,000		131,449
6.400%, due 09/15/33		7,000		7,975
Virginia Electric & Power Co., 3.450%, due 09/01/22		40,000		41,118
Visa, Inc., 4.150%, due 12/14/35		40,000		40,380
Walt Disney Co., 2.150%, due 09/17/20		30,000		29,996
Wells Fargo & Co., 5.375%, due 11/02/43		75,000		80,208
Whole Foods Market, Inc., 5.200%, due 12/03/25²		50,000		49,954
Williams Partners LP, 4.300%, due 03/04/24		50,000		39,640
Wyndham Worldwide Corp., 5.625%, due 03/01/21		110,000		118,308
Zimmer Biomet Holdings, Inc., 4.450%, due 08/15/45		60,000		55,151
Total United States corporate bonds				8,388,496
Total corporate bonds (cost $10,802,183)				10,490,469

	Face amount		Value
Asset-backed securities: 9.51%
United States: 9.51%
AmeriCredit Automobile Receivables Trust, Series 2015-4, Class A1, 0.500%, due 11/08/16	$	240,647	$	240,647
Series 2012-3, Class C, 2.420%, due 05/08/18		120,912		121,303
Series 2014-1, Class D, 2.540%, due 06/08/20		125,000		124,798
Series 2013-5, Class D, 2.860%, due 12/09/19		125,000		125,754
Capital Auto Receivables Asset Trust, Series 2013-3, Class B, 2.320%, due 07/20/18		150,000		150,647
Drive Auto Receivables Trust, Series 2015-BA, Class D, 3.840%, due 07/15/21²		200,000		196,239
Series 2015-DA, Class D, 4.590%, due 01/17/23²		125,000		124,552
Fifth Third Auto Trust, Series 2015-1, Class A1, 0.430%, due 11/15/16		547,464		547,465
Ford Credit Auto Owner Trust, Series 2014-A, Class C, 1.900%, due 09/15/19		175,000		175,197
Nissan Auto Lease Trust, Series 2015-B, Class A1, 0.420%, due 11/15/16		389,207		388,785
Renaissance Home Equity Loan Trust, Series 2006-4, Class AF1, 5.545%, due 01/25/37⁵		38,699		22,012
Santander Drive Auto Receivables Trust, Series 2013-2, Class B, 1.330%, due 03/15/18		94,501		94,500
Series 2014-1, Class C, 2.360%, due 04/15/20		155,000		155,236
Series 2014-2, Class D, 2.760%, due 02/18/20		175,000		174,216
Series 2015-3, Class D, 3.490%, due 05/17/21		150,000		148,683
Series 2012-1, Class D, 4.560%, due 11/15/17		255,000		257,746
Synchrony Credit Card Master Note Trust, Series 2012-6, Class A, 1.360%, due 08/17/20		230,000		228,850
Total asset-backed securities (cost $3,299,363)				3,276,630

100

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Continued)
Commercial mortgage-backed securities: 6.73%
United States: 6.73%
Americold 2010 LLC Trust, Series 2010-ARTA, Class C, 6.811%, due 01/14/29²	$	100,000	$	112,759
Boca Hotel Portfolio Trust, Series 2013-BOCA, Class D, 3.381%, due 08/15/26^2,3		150,000		149,737
CDGJ Commercial Mortgage Trust, Series 2014-BXCH, Class DPA, 3.331%, due 12/15/27^2,3		100,000		98,181
CG-CCRE Commercial Mortgage Trust, Series 2014-FL1, Class C, 2.081%, due 06/15/31^2,3		125,000		122,041
Citigroup Commercial Mortgage Trust, Series 2015-GC33, Class AS, 4.114%, due 09/10/58		150,000		153,295
Commercial Mortgage Loan Trust, Series 2015-DC1, Class C, 4.353%, due 02/10/48³		100,000		96,320
Series 2015-CR26, Class C, 4.496%, due 10/10/48³		147,000		138,883
Series 2014-CR19, Class C, 4.720%, due 08/10/47³		150,000		148,976
Commercial Mortgage Pass Through Certificates, Series 2013-GAM, Class B, 3.417%, due 02/10/28^2,3		200,000		198,506
CSMC Trust, Series 2015-DEAL, Class D, 3.431%, due 04/15/29^2,3		200,000		197,448
FDIC Guaranteed Notes Trust, Series 2010-C1, Class A, 2.980%, due 12/06/20²		82,738		84,072
GAHR Commercial Mortgage Trust, Series 2015-NRF, Class CFX, 3.382%, due 12/15/19^2,3		150,000		146,433
GS Mortgage Securities Trust, Series 2014-GSFL, Class D, 4.231%, due 07/15/31^2,3		175,000		173,845
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-CBM, Class D, 2.831%, due 10/15/29^2,3		125,000		123,367
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C10, Class C, 4.081%, due 07/15/46³		100,000		97,247
Series 2013-C13, Class C, 4.894%, due 11/15/46³		50,000		50,953

	Face amount		Value
Starwood Retail Property Trust, Series 2014-STAR, Class C, 2.831%, due 11/15/27^2,3	$	150,000	$	149,163
WFCG Commercial Mortgage Trust, Series 2015-BXRP, Class D, 2.901%, due 11/15/29^2,3		80,343		79,423
Total commercial mortgage-backed securities (cost $2,344,269)				2,320,649
Mortgage & agency debt securities: 32.30%
United States: 32.30%
Federal Home Loan Mortgage Corp. Gold Pools,⁶3.500%, TBA		125,000		128,633
4.000%, TBA		900,000		950,515
#A96140, 4.000%, due 01/01/41		76,973		81,552
#C63008, 6.000%, due 01/01/32		39,237		44,101
#G01717, 6.500%, due 11/01/29		35,446		40,553
Federal National Mortgage Association Pools,⁶2.500%, TBA		500,000		503,845
3.000%, TBA		350,000		349,878
3.500%, TBA		3,450,000		3,558,317
4.000%, TBA		1,175,000		1,243,045
4.000%, TBA		525,000		554,378
4.500%, TBA		950,000		1,025,707
#AT2725, 3.000%, due 05/01/43		375,608		376,289
#AP6056, 3.000%, due 07/01/43		64,615		64,726
#AS0302, 3.000%, due 08/01/43		22,802		22,840
#AU3735, 3.000%, due 08/01/43		87,746		87,895
#AV1735, 3.000%, due 11/01/43		67,409		67,539
#AH4568, 4.000%, due 03/01/41		91,438		96,975
#AS5669, 4.000%, due 08/01/45		198,399		210,937
#AE0106, 4.500%, due 06/01/40		896		970
#890209, 5.000%, due 05/01/40		131,013		144,493
#688066, 5.500%, due 03/01/33		79,320		90,108
#688314, 5.500%, due 03/01/33		74,786		83,607

101

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Continued)
Mortgage & agency debt securities—(Concluded)
United States—(Concluded)
#802481, 5.500%, due 11/01/34	$	134,798	$	150,410
#408267, 6.000%, due 03/01/28		11,466		13,098
#323715, 6.000%, due 05/01/29		6,408		7,309
#676733, 6.000%, due 01/01/33		51,563		58,380
#831730, 6.500%, due 09/01/36		54,469		62,247
First Horizon Asset Securities, Inc., Series 2004-FL1, Class 1A1, 0.692%, due 02/25/35³		20,473		18,417
Government National Mortgage Association Pools, #G2 AB2784, 3.500%, due 08/20/42,		74,142		77,707
3.500%, TBA		775,000		807,639
4.500%, TBA		25,000		26,855
#G2 779425, 4.000%, due 06/20/42,		78,429		84,285
#G2 2687, 6.000%, due 12/20/28		13,434		15,131
#G2 2794, 6.000%, due 08/20/29		41,987		47,245
#G2 4245, 6.000%, due 09/20/38		31,205		34,914
Total mortgage & agency debt securities (cost $11,053,417)				11,130,540
Municipal bonds: 1.62%
Chicago Transit Authority, Series 2008-A, 6.899%, due 12/01/40		50,000		57,703
Los Angeles Unified School District, 6.758%, due 07/01/34		70,000		92,226
Metropolitan Transportation Authority Revenue Bonds, 6.668%, due 11/15/39		30,000		39,324
State of California, GO Bonds, 7.300%, due 10/01/39		125,000		174,657
State of Illinois, GO Bonds, 5.877%, due 03/01/19		180,000		192,598
Total municipal bonds (cost $499,450)				556,508

	Face amount		Value
US government obligations: 15.14%
Tennessee Valley Authority, 2.875%, due 09/15/24	$	70,000	$	70,388
US Treasury Bonds, 2.750%, due 11/15/42		400,000		380,584
2.875%, due 05/15/43		600,000		583,789
2.875%, due 08/15/45¹		115,000		111,474
3.750%, due 11/15/43		75,000		86,220
US Treasury Inflation Indexed Notes (TIPS), 0.125%, due 04/15/20⁷		800,000		801,554
0.375%, due 07/15/25⁷		544,000		527,327
2.000%, due 01/15/16⁷		850,000		1,018,564
US Treasury Notes, 1.000%, due 08/15/18		275,000		273,247
2.000%, due 08/15/25¹		300,000		292,496
2.250%, due 11/15/25¹		1,075,000		1,072,594
Total US government obligations (cost $5,270,417)				5,218,237
Non-US government obligations: 3.41%
Brazil: 0.58%
Banco Nacional de Desenvolvimento Economico e Social, 3.375%, due 09/26/16²		200,000		198,000
Chile: 0.30%
Republic of Chile, 3.250%, due 09/14/21		100,000		103,250
Colombia: 0.26%
Republic of Colombia, 8.125%, due 05/21/24		75,000		90,375
Germany: 0.07%
KFW, 3.008%, due 04/18/36⁸		45,000		23,597
Israel: 0.47%
Israel Government AID Bond, 5.500%, due 09/18/33		125,000		161,392
Mexico: 0.49%
United Mexican States, 4.000%, due 10/02/23		150,000		151,950
6.750%, due 09/27/34		15,000		18,000
				169,950

102

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Bonds—(Concluded)
Non-US government obligations—(Concluded)
Peru: 0.53%
Peruvian Government International Bond, 7.125%, due 03/30/19	$	50,000	$	56,925
7.350%, due 07/21/25		100,000		125,250
				182,175
Philippines: 0.32%
Republic of the Philippines, 10.625%, due 03/16/25		70,000		110,425
Poland: 0.08%
Republic of Poland, 5.000%, due 03/23/22		25,000		27,601
Turkey: 0.31%
Republic of Turkey, 6.750%, due 04/03/18		100,000		107,650
Total Non-US government obligations (cost $1,197,078)				1,174,415
Total bonds (cost $34,466,177)				34,167,448
	Shares
Short-term investment: 26.72%
Investment company: 26.72%
JPMorgan U.S. Government Money Market Fund, Capital Shares (cost $9,209,679)		9,209,679		9,209,679
	Face amount covered by contracts
Options purchased: 0.06%
Call options: 0.05%
Foreign Exchange Option, Buy USD/EUR, strike@ EUR 0.95, expires January 2016, counterparty: MSC	$	690,000		472

	Face amount covered by contracts		Value
Foreign Exchange Option, Buy USD/EUR, strike@ EUR 0.93, expires March 2016, counterparty: MSC	$	705,000	$	10,513
Foreign Exchange Option, Buy USD/INR, strike@ INR 67.34, expires March 2016, counterparty: MLI		345,000		2,886
Foreign Exchange Option, Buy USD/JPY, strike@ JPY 120.94, expires January 2016, counterparty: MSC		700,000		3,676
				17,547
	Number of contracts
Put options: 0.00%⁹
3 Year Euro-Dollar Midcurve, strike@ USD 97.75, expires June 2016,		26		162
	Notional Amount
Options purchased on credit default swaps on credit indices: 0.01%¹⁰
Expiring 01/20/16. If exercised the payment from the counterparty will be made upon the occurrence of a failure to pay, obligation acceleration, repudiation or restructuring of referenced obligation specified in the CDX.NA.IG Series 25 Index and the Fund receives quarterly fixed rate of 1.000% per annum. Underlying credit default swap terminating 12/20/20. European style. Counterparty: JPMCB	$	1,750,000		2,674
Total options purchased (cost $83,552)				20,383

103

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Shares		Value
Investment of cash collateral from securities loaned: 0.03%
UBS Private Money Market Fund LLC¹¹(cost $9,480)		9,480	$	9,480
Total investments: 125.96% (cost $43,768,888)				43,406,990
Liabilities, in excess of cash and other assets: (25.96%)				(8,944,213	)
Net assets: 100.00%			$	34,462,777

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	$	230,457
Gross unrealized depreciation		(592,355	)
Net unrealized depreciation of investments	$	(361,898	)

Forward foreign currency contracts

Counterparty

Contracts
to deliver

In
exchange for

Maturity
date

Unrealized
appreciation

CIBC

USD

330,960

CAD

460,000

01/11/16

1,484

JPMCB

CAD

460,000

USD

343,700

01/11/16

11,256

MSC

USD

695,000

JPY

84,064,420

01/12/16

4,531

Net unrealized appreciation on forward foreign currency contracts

17,271

Futures contracts

	Expiration date	Cost/ (proceeds)			Value			Unrealized appreciation/ (depreciation)
US Treasury futures buy contracts:
10 Year US Treasury Notes, 22 contracts (USD)	March 2016	$	2,783,423		$	2,769,938		$	(13,485	)
US Treasury futures sell contracts:
2 Year US Treasury Notes, 9 contracts (USD)	March 2016		(1,958,893	)		(1,955,110	)		3,783
5 Year US Treasury Notes, 1 contract (USD)	March 2016		(118,451	)		(118,320	)		131
Net unrealized depreciation on futures contracts								$	(9,571	)

104

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2015 (unaudited)

Credit default swaps on corporate and sovereign issues—buy protection¹²

Counterparty				Referenced obligation¹³				Notional amount				Termination date				Payments made by the Fund¹⁴				Upfront payments made				Value				Unrealized appreciation
JPMCB				Russian Federation bond, 7.500%, due 03/31/30				USD	260,000			12/20/20					1.000	%		$	(23,146	)		$	23,874			$	728

Credit default swaps on corporate and sovereign issues—sell protection¹⁵

Counterparty				Referenced obligation¹³				Notional amount				Termination date				Payments received by the Fund¹⁴				Upfront Payments received				Value				Unrealized appreciation				Credit spread¹⁶
MSC				Portuguese Republic bond, 4.950%, due 10/25/23				USD	320,000			09/20/20					1.000	%		$	9,668			$	(9,369	)		$	299				1.671	%

Credit default swaps on credit indices—sell protection¹⁵

Counterparty	Referenced index¹³	Notional amount		Termination date	Payments received by the Fund¹⁴			Upfront payments (made)/ received			Value			Unrealized depreciation			Credit spread¹⁶
MLI	CMBX.NA.BB. Series 6 Index	USD	325,000	05/11/63		5.000	%	$	(858	)	$	(13,926	)	$	(14,784	)		4.93	%
MLI	CMBX.NA.BB. Series 6 Index	USD	300,000	05/11/63		5.000			(9,368	)		(12,854	)		(22,222	)		4.93
MSC	CMBX.NA.BB. Series 6 Index	USD	300,000	05/11/63		5.000			2,809			(12,855	)		(10,046	)		4.93
								$	(7,417	)	$	(39,635	)	$	(47,052	)

Centrally cleared interest rate swap agreements

Notional amount				Termination date				Payments made by the Fund¹⁴				Payments received by the Fund¹⁴				Value				Unrealized appreciation
USD	1,050,000			11/30/22					1.902	%			3 month USD LIBOR			$	7,741			$	7,741

Centrally cleared credit default swaps on credit indices—buy protection¹²

Referenced index¹³				Notional amount				Termination date				Payments made by the Fund¹⁴				Value				Unrealized appreciation
CDX.NA.IG. Series 25 Index				USD	2,400,000			12/20/20					1.000	%		$	(13,844	)		$	3,071

105

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2015 (unaudited)

Options written

	Expiration date	Premiums received		Value
Call options
3 Year Euro-Dollar Midcurve, 26 contracts, strike @ USD 98.75	June 2016	$	21,034	$	(23,075	)
Foreign Exchange Option, Sell USD/CNY, 345,000 face amount covered by contracts, strike @ CNY 6.65 counterparty: MLI	March 2016		4,531		(4,387	)
Put options
3 Year Euro-Dollar Midcurve, 26 contracts, strike @ USD 96.75	June 2016		21,034		(163	)
Foreign Exchange Option, Sell USD/EUR, 690,000 face amount covered by contracts, strike @ EUR 0.89, counterparty: MSC	May 2016		8,143		(8,697	)
Foreign Exchange Option, Sell USD/EUR, 705,000 face amount covered by contracts, strike @ EUR 0.87, counterparty: MLI	June 2016		6,243		(5,629	)
Foreign Exchange Option, Sell USD/JPY, 1,000,000 face amount covered by contracts, strike @ JPY 118.00, counterparty: MSC	April 2016		14,580		(12,387	)
Options written on credit default swaps on credit indices¹⁰
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 25 Index and the Fund pays quarterly fixed rate of 5.000% per annum. Underlying credit default swap terminating 12/20/20. European style. Counterparty: BB, Notional Amount USD 1,040,000	February 2016		6,448		(1,479	)
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 25 Index and the Fund pays quarterly fixed rate of 5.000% per annum. Underlying credit default swap terminating 12/20/20. European style. Counterparty: BB, Notional Amount USD 350,000	April 2016		7,245		(4,965	)
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 25 Index and the Fund pays quarterly fixed rate of 5.000% per annum. Underlying credit default swap terminating 12/20/20. European style. Counterparty: DB, Notional Amount USD 700,000	February 2016		3,290		(995	)
Total options written		$	92,548	$	(61,777	)

Written options activity for the period ended December 31, 2015 was as follows:

	Number of contracts		Premiums received
Options outstanding at June 30, 2015		52	$	42,068
Options written		—		—
Options terminated in closing purchase transactions		—		—
Options expired prior to exercise		—		—
Options outstanding at December 31, 2015		52	$	42,068

106

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2015 (unaudited)

Written swaptions and foreign exchange options activity for the period ended December 31, 2015 was as follows:

Swaptions & foreign exchange options outstanding at June 30, 2015	$	8,222
Swaptions & foreign exchange options written		112,120
Swaptions & foreign exchange options terminated in closing purchase transactions		(69,862	)
Swaptions & foreign exchange options expired prior to exercise		—
Swaptions & foreign exchange options outstanding at December 31, 2015	$	50,480

The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 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
Assets
Corporate bonds	$	—		$	10,490,469		$	—	$	10,490,469
Asset-backed securities		—			3,276,630			—		3,276,630
Commercial mortgage-backed securities		—			2,320,649			—		2,320,649
Mortgage & agency debt securities		—			11,130,540			—		11,130,540
Municipal bonds		—			556,508			—		556,508
US government obligations		—			5,218,237			—		5,218,237
Non-US government obligations		—			1,174,415			—		1,174,415
Short-term investment		9,209,679			—			—		9,209,679
Options purchased		162			20,221			—		20,383
Investment of cash collateral from securities loaned		—			9,480			—		9,480
Forward foreign currency contracts		—			17,271			—		17,271
Futures contracts		3,914			—			—		3,914
Swap agreements, at value		—			31,615			—		31,615
Total	$	9,213,755		$	34,246,035		$	—	$	43,459,790
Liabilities
Futures contracts	$	(13,485	)	$	—		$	—	$	(13,485	)
Options written		(23,238	)		(38,539	)		—		(61,777	)
Swap agreements, at value		—			(62,848	)		—		(62,848	)
Total	$	(36,723	)	$	(101,387	)	$	—	$	(138,110	)

During the period ended December 31, 2015, there were no transfers between Level 1 and Level 2.

Portfolio footnotes

¹ Security, or portion thereof, was on loan at December 31, 2015.

³ Variable or floating rate security—The interest rate shown is the current rate as of December 31, 2015 and changes periodically.

⁴ Perpetual investment. Date shown reflects the next call date.

⁵ Step bond—Coupon rate increases in increments to maturity. Rate disclosed is as of December 31, 2015. Maturity date disclosed is the ultimate maturity date.

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.

107

UBS Core Plus Bond Fund

Portfolio of investments

December 31, 2015 (unaudited)

⁷ Debt security whose principal and/or interest payments are adjusted for inflation, unlike debt securities that make fixed principal and interest payments. The interest rate paid by the securities is fixed, while the principal value rises or falls based on changes in an index. Thus, if inflation occurs, the principal and interest payments on the securities are adjusted accordingly to protect investors from inflationary loss. During a deflationary period, the principal and interest payments decrease, although the securities' principal amounts will not drop below their face amounts at maturity. In exchange for the inflation protection, the securities generally pay lower interest rates than typical government securities from the issuer's country. Only if inflation occurs will securities offer a higher real yield than a conventional security of the same maturity.

⁸ Rate shown is the discount rate at the date of purchase.

⁹ Amount represents less than 0.005%.

¹⁰ Illiquid investment as of December 31, 2015.

¹¹ 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 06/30/15		Purchases during the six months ended 12/31/15		Sales during the six months ended 12/31/15		Net realized gain (loss) during the six months ended 12/31/15		Change in net unrealized appreciation/ (depreciation) during the six months ended 12/31/15		Value 12/31/15		Net income earned from affiliate for the six months ended 12/31/15
UBS Cash Management Prime Relationship Fund	$	8,382,243	$	18,092,817	$	26,475,060	$	—	$	—	$	—	$	2,397
UBS Private Money Market Fund LLC^a		159,900		1,817,522		1,967,942		—		—		9,480		9
	$	8,542,143	$	19,910,339	$	28,443,002	$	—	$	—	$	9,480	$	2,406

^a The Advisor earns a management fee from this affiliated fund. Please see the Notes to financial statements for further information.

¹³ Payments from/to the counterparty will be received/made upon the occurrence of bankruptcy and/or restructuring event with respect to the referenced index/obligation.

¹⁴ Payments made or received are based on the notional amount.

¹⁵ 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/obligation or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index/obligation.

¹⁶ 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.

See accompanying notes to financial statements.
108

UBS Municipal Bond Fund

Portfolio performance

For the six months ended December 31, 2015, Class A shares of UBS Municipal Bond Fund (the "Fund") gained 3.53% (Class A shares returned 1.18% after the deduction of the maximum sales charge), while Class P shares rose 3.56%. For comparison purposes, the Fund's benchmark, the Barclays Municipal Bond Index (the "Index"), returned 3.18%, and the Barclays Municipal Managed Money Intermediate (1-17) Index advanced 3.40% over the same time period. (Class P shares have lower expenses than other share classes of the Fund. Returns for all share classes over various time periods are shown on page 111; please note that the Fund's returns do not reflect the deduction of taxes that a shareholder could 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 used US Treasury futures during the reporting period to adjust its duration positioning. Overall, the use of Treasury futures detracted from performance.

Portfolio performance summary¹

What worked

• Positioning in several parts of the municipal yield curve was additive for performance. The Fund's overweights to the 7-10 year and 15-20 year portions of the municipal curve were beneficial given their outperformance versus the Index. (The yield curve plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates.)

• The Fund's sector positioning, overall, was positive for performance. Security selection drove the Fund's outperformance among sectors, overall. In addition, an underweight to the housing sector was additive for results.

• An underweight to AAA-rated municipal bonds was beneficial as they lagged the Index.

What didn't work

• An underweight to the long end of the municipal yield curve was detrimental to results as it outperformed the Index.

• An underweight to BBB-rated municipal securities was not rewarded as they outperformed the Index.

• The Fund's positioning in certain sectors was negative for results. In particular, an overweight to state general obligation bonds was negative for returns as they lagged the Index. An underweight to transportation detracted from results as this was the top performing sector in the Index.

¹ For a detailed commentary on the market environment in general during the reporting period, see page 3.

109

UBS Municipal Bond Fund

110

UBS Municipal Bond Fund

Average annual total returns for periods ended 12/31/15 (unaudited)

	6 months			1 year			Inception¹
Before deducting maximum sales charge
Class A²		3.53	%		2.94	%		3.36	%
Class C³		3.17			2.35			2.80
Class P⁴		3.56			3.10			3.52
After deducting maximum sales charge
Class A²		1.18	%		0.64	%		1.32	%
Class C³		2.42			1.60			2.80
Barclays Municipal Bond Index⁵		3.18	%		3.30	%		3.74	%
Barclays Municipal Managed Money Intermediate (1-17) Index⁶		3.40			3.40			3.69

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 28, 2015 prospectuses were as follows: Class A—1.46% and 0.65%; Class C—1.98% and 1.15%; Class P—1.23% 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 Asset Management (Americas) Inc. (formerly, UBS Global Asset Management (Americas) Inc.), the Fund's investment advisor ("UBS 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, 2016, do not exceed 0.65% for Class A shares, 1.15% for Class C shares and 0.40% for Class P 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. The fee waiver/expense reimbursement agreement may be terminated by the Fund's Board of Trustees at any time and also will terminate automatically upon the expiration or termination of the Fund's advisory contract with the Advisor. Upon termination of the fee waiver/expense reimbursement agreement, however, the UBS AM (Americas)'s three year recoupment rights will survive.

¹ Inception date of all shares of UBS Municipal Bond Fund and the indices is November 10, 2014.

² Maximum sales charge for Class A shares is 2.25%. 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 distribution and service fees.

⁵ The Barclays Municipal Bond Index is an unmanaged index designed to measure the total return of the US dollar denominated tax exempt bond market. Investors should note that indices do not reflect the deduction of fees and expenses.

⁶ The Barclays Municipal Managed Money Intermediate (1-17) Index is an unmanaged sub-index of the Barclays Municipal Managed Money Index, which is a rules-based, market-value-weighted index designed to track the performance of municipal securities issued by state and local municipalities whose interest is exempt from federal income tax and the federal alternative minimum tax. 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 could 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 www.ubs.com/us-mutualfundperformance.

111

UBS Municipal Bond Fund

Summary of municipal securities by state (unaudited)

As a percentage of net assets as of December 31, 2015

Long-term municipal bonds
California	5.57	%
Florida	15.29
Illinois	9.38
Maryland	1.56
Massachusetts	1.59
Michigan	5.51
Minnesota	1.54
Nebraska	3.49
Nevada	3.27
New Jersey	10.02
New York	12.28
Pennsylvania	12.94
Rhode Island	3.00
South Carolina	1.77
Texas	6.24
Washington	3.28
Total long-term municipal bonds	96.73	%
Short-term investment	1.94
Total investments	98.67	%
Cash and other assets, less liabilities	1.33
Net assets	100.00	%

112

UBS Municipal Bond Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Long-term municipal bonds: 96.73%
California: 5.57%
California State Public Works Board Revenue Bonds, Series F, 5.000%, due 05/01/26	$	1,500,000	$	1,852,650
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement, Asset-Backed Revenue Bonds, Series A, 5.000%, due 06/01/32		1,000,000		1,175,550
5.000%, due 06/01/33		650,000		761,176
				3,789,376
Florida: 15.29%
School District of St. Lucie County, Sales Tax Revenue Bonds, AGC, 5.000%, due 10/01/26		1,020,000		1,229,590
The School Board of Lake County, COP, Series A, AMBAC, 5.000%, due 06/01/16¹		1,000,000		1,019,110
The School Board of Broward County, COP, Series B, 5.000%, due 07/01/30		2,000,000		2,348,400
The School Board of Miami-Dade County, COP, Series A, 5.000%, due 05/01/31		1,000,000		1,152,920
Series D, 5.000%, due 02/01/23		1,000,000		1,179,690
5.000%, due 11/01/31		1,000,000		1,145,790
The School Board of Palm Beach County, COP, Series B, 5.000%, due 08/01/31		1,000,000		1,166,390
School Board of Volusia County, Certificates Refunding, Master Lease Program, COP, Series B, 5.000%, due 08/01/31		1,000,000		1,157,710
				10,399,600

	Face amount		Value
Illinois: 9.38%
City of Chicago O'Hare International Airport, Senior Lien Revenue Bonds, Series B, 5.000%, due 01/01/30	$	1,000,000	$	1,156,730
5.000%, due 01/01/31		1,050,000		1,210,986
5.250%, due 01/01/29		500,000		583,605
Illinois Finance Authority, Sherman Health Systems Revenue Bonds, Series A, 5.500%, due 08/01/17¹		1,000,000		1,073,160
State of Illinois Revenue Bonds, 5.000%, due 06/15/22		1,105,000		1,303,237
State of Illinois, GO Bonds, Series B, 5.250%, due 01/01/18		1,000,000		1,057,140
				6,384,858
Maryland: 1.56%
State of Maryland, GO Bonds, Series B, 4.500%, due 08/01/17		1,000,000		1,059,280
Massachusetts: 1.59%
The Commonwealth of Massachusetts, Consolidated Loan of 2002, GO Bonds, Series C, NATL-RE, 5.500%, due 11/01/17		1,000,000		1,084,830
Michigan: 5.51%
Michigan Finance Authority Revenue Bonds, Q-SBLF, 5.000%, due 06/01/20		1,150,000		1,264,183
Michigan Municipal Bond Authority, Clean Water Revolving Fund Revenue Bonds, 5.000%, due 10/01/17		1,160,000		1,244,796
State Building Authority of Michigan, Facilities Program Revenue Bonds, Series I, 5.000%, due 04/15/21		1,060,000		1,240,794
				3,749,773

113

UBS Municipal Bond Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Long-term municipal bonds—(Continued)
Minnesota: 1.54%
State of Minnesota, Trunk Highway, GO Bonds, Series B, 4.000%, due 08/01/17	$	1,000,000	$	1,051,590
Nebraska: 3.49%
Public Power Generation Agency, Whelan Energy Center Unit-2 Revenue Bonds, Series A, 5.000%, due 01/01/24		2,000,000		2,371,660
Nevada: 3.27%
Clark County, Las Vegas-Mccarran International Airport Revenue Bonds, Series C, 5.000%, due 07/01/27		1,815,000		2,224,355
New Jersey: 10.02%
New Jersey Economic Development Authority, School Facilities Construction Revenue Bonds, Series II, 5.000%, due 03/01/22		750,000		827,947
Series XX, 5.000%, due 06/15/22		1,000,000		1,105,850
New Jersey Turnpike Authority Revenue Bonds, 5.000%, due 01/01/34		860,000		998,460
Series A, 5.000%, due 01/01/27		1,000,000		1,197,140
State of New Jersey, GO Bonds, 5.000%, due 06/01/16		1,000,000		1,019,250
State of New Jersey, Various Purpose, GO Bonds, 5.000%, due 06/01/18		500,000		540,340
5.000%, due 06/01/20		1,000,000		1,128,000
				6,816,987
New York: 12.28%
City of New York, Tax Exempt, GO Bonds, Series I, 5.000%, due 08/01/17		1,040,000		1,108,463
County of Nassau, GO Bonds, Series A, TAN 2.000%, due 09/15/16		3,500,000		3,533,250

	Face amount		Value
New York City Transitional Finance Authority Revenue Bonds, Series I, 5.000%, due 05/01/34	$	1,250,000	$	1,459,987
Subseries B-1, 5.000%, due 08/01/33		1,000,000		1,185,240
Port Authority of New York and New Jersey Revenue Bonds, Series 194, 5.000%, due 10/15/30		875,000		1,064,718
				8,351,658
Pennsylvania: 12.94%
Allegheny County, Sanitary Authority Sewer Revenue Bonds, 5.000%, due 12/01/20		1,000,000		1,158,630
City of Philadelphia, GO Bonds, Series A, 5.000%, due 08/01/22		1,000,000		1,175,970
City of Philadelphia, Water and Wastewater Revenue Bonds, Series B, 5.000%, due 11/01/21		1,400,000		1,661,338
Commonwealth of Pennsylvania, GO Bonds, 5.000%, due 08/15/21		1,700,000		2,002,005
Pennsylvania Turnpike Commission Revenue Bonds, Series A-1, 5.000%, due 12/01/24		1,500,000		1,830,075
Philadelphia Municipal Authority, City Agreement Revenue Bonds, 5.000%, due 11/15/17		910,000		976,330
				8,804,348
Rhode Island: 3.00%
Tobacco Settlement Fing Corp., Asset-Backed Revenue Bonds, Series A, 4.000%, due 06/01/17		850,000		887,171
5.000%, due 06/01/21		1,000,000		1,156,060
				2,043,231
South Carolina: 1.77%
South Carolina State Public Service Authority Revenue Bonds, Series C, 5.000%, due 12/01/22		1,000,000		1,205,590

114

UBS Municipal Bond Fund

Portfolio of investments

December 31, 2015 (unaudited)

	Face amount		Value
Long-term municipal bonds—(Concluded)
Texas: 6.24%
Austin Community College District Public Facility Corp., Round Rock Campus Revenue Bonds, 5.000%, due 08/01/24	$	1,000,000	$	1,205,890
North Texas Tollway Authority System Revenue Bonds, Series A, 5.000%, due 01/01/25		1,000,000		1,198,690
Texas Transportation Commission, GO Bonds, Series A, 5.000%, due 10/01/29		1,500,000		1,837,920
				4,242,500
Washington: 3.28%
State of Washington, Motor Vehicle Fuel Tax, GO Bonds, Series 5D, 4.000%, due 07/01/17		1,000,000		1,048,230

	Face amount		Value
State of Washington, Various Purpose, GO Bonds, Series A-1, 5.000%, due 08/01/36	$	1,000,000	$	1,182,850
				2,231,080
Total long-term municipal bonds (cost $64,779,400)				65,810,716
	Shares
Short-term investment: 1.94%
Investment company: 1.94%
JPMorgan U.S. Government Money Market Fund, Capital Shares (cost $1,316,882)		1,316,882		1,316,882
Total investments: 98.67% (cost $66,096,282)				67,127,598
Cash and other assets, less liabilities: 1.33%				903,140
Net assets: 100.00%			$	68,030,738

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	$	1,062,815
Gross unrealized depreciation		(31,499	)
Net unrealized appreciation of investments	$	1,031,316

The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 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
Assets
Long-term municipal bonds	$	—	$	65,810,716	$	—	$	65,810,716
Short-term investment		1,316,882		—		—		1,316,882
Total	$	1,316,882	$	65,810,716	$	—	$	67,127,598

During the period ended December 31, 2015, there were no transfers between Level 1 and Level 2.

115

The UBS Funds

December 31, 2015 (unaudited)

Portfolio footnotes

¹ Security is prerefunded or escrowed to maturity. The maturity date shown is the earlier reset date or the date of the prerefunded call.

The table below details the Fund's investment in a fund 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 06/30/15				Purchases during the six months ended 12/31/15				Sales during the six months ended 12/31/15				Value 12/31/15				Net income earned from affiliate for the six months ended 12/31/15
UBS Cash Management Prime Relationship Fund				$	399,871			$	36,892,158			$	37,292,029			$	—			$	773

See accompanying notes to financial statements.
116

The UBS Funds

December 31, 2015 (unaudited)

Portfolio acronyms

ADR American Depositary Receipt

AGC Assured Guaranty Corp.

AMBAC American Municipal Bond Assurance Corp.

BBA British Bankers' Association

CDO Collateralized Debt Obligations

CLO Collateralized Loan Obligations

COP Certificate of Participation

CVA Dutch Certification—Depository Certificate

ETF Exchange Traded Fund

EURIBOR Euro Interbank Offered Rate

GDR Global Depositary Receipt

GO General Obligation

IO Interest only—This security entitles the holder to receive interest payments from an underlying pool of mortgages. The risk associated with this security is related to the speed of the principal paydowns. High prepayments would result in a smaller amount of interest being received and cause the yield to decrease. Low prepayments would result in a greater amount of interest being received and cause the yield to increase.

LIBOR London Interbank Offered Rate

MSCI Morgan Stanley & Co. International PLC

NATL Insured by National Public Finance Guarantee Corp.

PO Principal only security—This security entitles the holder to receive principal payments from an underlying pool of assetsor 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.

Q-SBLF Qualified School Bond Loan Fund

RE Reinsured

REIT Real Estate Investment Trust

REMIC Real Estate Mortgage Investment Conduit

SPDR Standard & Poor's Depository Receipts

TAN Tax Anticipation Note

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

TIPS Treasury inflation protected securities ("TIPS") are debt securities issued by the US Treasury whose principal and/or interest payments are adjusted for inflation, unlike debt securities that make fixed principal and interest payments. The interest rate paid by the TIPS is fixed, while the principal value rises or falls based on changes in a published Consumer Price Index ("CPI"). Thus, if inflation occurs, the principal and interest payments on the TIPS are adjusted accordingly to protect investors from inflationary loss. During a deflationary period, the principal and interest payments decrease, although the TIPS principal amounts will not drop below their face amounts at maturity. In exchange for the inflation protection, the TIPS generally pay lower interest rates than typical US Treasury securities. Only if inflation occurs will TIPS offer a higher real yield than a conventional Treasury security of the same maturity.

Counterparty abbreviations

BB Barclays Bank PLC

CIBC Canadian Imperial Bank of Commerce

CITI Citibank NA

CSI Credit Suisse International

DB Deutsche Bank AG

GSI Goldman Sachs International

JPMCB JPMorgan Chase Bank

MLI Merrill Lynch International

MSC Morgan Stanley & Co.

SSB State Street Bank

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

ILS Israel New Shekel

INR Indian Rupee

JPY Japanese Yen

KRW Korean Won

MXN Mexican Peso

MYR Malaysian Ringgit

NOK Norwegian Krone

NZD New Zealand Dollar

PEN Peru Nuevo Sol

PLN Polish Zloty

RUB Russian Ruble

SEK Swedish Krona

SGD Singapore Dollar

TRY Turkish Lira

USD United States Dollar

See accompanying notes to financial statements.
117

The UBS Funds

December 31, 2015 (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, 2015 to December 31, 2015.

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, 2015 to December 31, 2015.

118

The UBS Funds

December 31, 2015 (unaudited)

		Beginning account value July 1, 2015		Ending account value December 31, 2015		Expenses paid during period* 07/01/15 – 12/31/15		Expense ratio during period
UBS Dynamic Alpha Fund
Class A	Actual	$	1,000.00	$	930.10	$	6.55		1.35	%
	Hypothetical (5% annual return before expenses)		1,000.00		1,018.35		6.85		1.35
Class C	Actual		1,000.00		926.90		10.17		2.10
	Hypothetical (5% annual return before expenses)		1,000.00		1,014.58		10.63		2.10
Class P	Actual		1,000.00		932.60		5.34		1.10
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.61		5.58		1.10
UBS Global Allocation Fund
Class A	Actual		1,000.00		970.10		6.64		1.34
	Hypothetical (5% annual return before expenses)		1,000.00		1,018.40		6.80		1.34
Class C	Actual		1,000.00		967.40		10.39		2.10
	Hypothetical (5% annual return before expenses)		1,000.00		1,014.58		10.63		2.10
Class P	Actual		1,000.00		971.90		5.30		1.07
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.76		5.43		1.07
UBS Asset Growth Fund
Class A	Actual		1,000.00		871.60		6.59		1.40
	Hypothetical (5% annual return before expenses)		1,000.00		1,018.10		7.10		1.40
Class C	Actual		1,000.00		868.30		10.10		2.15
	Hypothetical (5% annual return before expenses)		1,000.00		1,014.33		10.89		2.15
Class P	Actual		1,000.00		871.70		5.41		1.15
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.36		5.84		1.15

* Expenses are equal to each 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).

119

The UBS Funds

December 31, 2015 (unaudited)

		Beginning account value July 1, 2015		Ending account value December 31, 2015		Expenses paid during period* 07/01/15 – 12/31/15		Expense ratio during period
UBS International Sustainable Equity Fund
Class A	Actual	$	1,000.00	$	911.60	$	6.01		1.25	%
	Hypothetical (5% annual return before expenses)		1,000.00		1,018.85		6.34		1.25
Class C	Actual		1,000.00		908.20		9.59		2.00
	Hypothetical (5% annual return before expenses)		1,000.00		1,015.08		10.13		2.00
Class P	Actual		1,000.00		912.90		4.81		1.00
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.11		5.08		1.00
UBS U.S. Large Cap Equity Fund
Class A	Actual		1,000.00		935.00		5.84		1.20
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.10		6.09		1.20
Class C	Actual		1,000.00		931.40		9.47		1.95
	Hypothetical (5% annual return before expenses)		1,000.00		1,015.33		9.88		1.95
Class P	Actual		1,000.00		936.10		4.62		0.95
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.36		4.82		0.95
UBS U.S. Small Cap Growth Fund
Class A	Actual		1,000.00		880.80		5.86		1.24
	Hypothetical (5% annual return before expenses)		1,000.00		1,018.90		6.29		1.24
Class C	Actual		1,000.00		877.50		9.39		1.99
	Hypothetical (5% annual return before expenses)		1,000.00		1,015.13		10.08		1.99
Class P	Actual		1,000.00		881.60		4.68		0.99
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.16		5.03		0.99

* Expenses are equal to each 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).

120

The UBS Funds

December 31, 2015 (unaudited)

		Beginning account value July 1, 2015		Ending account value December 31, 2015		Expenses paid during period* 07/01/15 – 12/31/15		Expense ratio during period
UBS U.S. Equity Opportunity Fund
Class A	Actual	$	1,000.00	$	936.00	$	5.84		1.20	%
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.10		6.09		1.20
Class C	Actual		1,000.00		931.90		9.47		1.95
	Hypothetical (5% annual return before expenses)		1,000.00		1,015.33		9.88		1.95
Class P	Actual		1,000.00		937.10		4.63		0.95
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.36		4.82		0.95
UBS Fixed Income Opportunities Fund
Class A	Actual		1,000.00		956.70		4.67		0.95
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.36		4.82		0.95
Class C	Actual		1,000.00		955.20		7.13		1.45
	Hypothetical (5% annual return before expenses)		1,000.00		1,017.85		7.35		1.45
Class P	Actual		1,000.00		957.90		3.45		0.70
	Hypothetical (5% annual return before expenses)		1,000.00		1,021.62		3.56		0.70
UBS Core Plus Bond Fund
Class A	Actual		1,000.00		1,000.50		3.22		0.64
	Hypothetical (5% annual return before expenses)		1,000.00		1,021.92		3.25		0.64
Class C	Actual		1,000.00		997.90		5.73		1.14
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.41		5.79		1.14
Class P	Actual		1,000.00		1,001.60		1.96		0.39
	Hypothetical (5% annual return before expenses)		1,000.00		1,023.18		1.98		0.39

* Expenses are equal to each 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).

121

The UBS Funds

December 31, 2015 (unaudited)

		Beginning account value July 1, 2015		Ending account value December 31, 2015		Expenses paid during period* 07/01/15 – 12/31/15		Expense ratio during period
UBS Municipal Bond Fund
Class A	Actual	$	1,000.00	$	1,035.30	$	3.33		0.65	%
	Hypothetical (5% annual return before expenses)		1,000.00		1,021.87		3.30		0.65
Class C	Actual		1,000.00		1,031.70		5.87		1.15
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.36		5.84		1.15
Class P	Actual		1,000.00		1,035.60		2.05		0.40
	Hypothetical (5% annual return before expenses)		1,000.00		1,023.13		2.03		0.40

* Expenses are equal to each 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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123

The UBS Funds

Financial statements

Statement of assets and liabilities
December 31, 2015 (unaudited)

	UBS Dynamic Alpha Fund		UBS Global Allocation Fund		UBS Asset Growth Fund		UBS International Sustainable Equity Fund
Assets:
Investments, at cost:
Unaffiliated issuers	$	266,601,407	$	360,116,783	$	21,296,411	$	26,885,263
Affiliated issuers		—		75,874,709		—		—
Investment of cash collateral in an affiliated issuer received from securities loaned¹		2,051,165		24,501,707		1,739,652		1,229,986
Foreign currency		3,926,153		2,262,567		4		37,365
	$	272,578,725	$	462,755,766	$	23,036,067	$	28,152,614
Investments, at value:
Unaffiliated issuers	$	241,097,696	$	358,238,367	$	20,939,550	$	26,138,452
Affiliated issuers		—		73,094,103		—		—
Investment of cash collateral in an affiliated issuer received from securities loaned¹		2,051,165		24,501,707		1,739,652		1,229,986
Foreign currency		3,857,827		2,256,035		3		36,654
Cash		—		—		—		—
Receivables:
Investment securities sold		435,707		87,129		—		—
Interest		2,481,809		482,667		735		93
Fund shares sold		200,007		97,209		51,265		254,209
Foreign tax reclaims		1,674		176,415		—		8,329
Due from Advisor		—		—		1,949		2,648
Dividends		900		146,817		26,285		35,837
Variation margin on futures contracts		972,409		—		318,106		—
Variation margin on centrally cleared swap agreements		—		603,952		—		—
Due from broker		1,586,269		128,748		—		—
Cash collateral for futures contracts		10,632,163		12,848,869		1,229,378		—
Cash collateral for swap agreements		5,521,000		1,553,129		—		—
Outstanding swap agreements, at value²		6,003,413		—		—		—
Unrealized appreciation on forward foreign currency contracts		1,063,711		951,382		—		—
Other assets		58,847		54,613		23,355		27,344
Total assets		275,964,597		475,221,142		24,330,278		27,733,552
Liabilities:
Payables:
Cash collateral from securities loaned		2,051,165		24,501,707		1,739,652		1,229,986
Investment securities purchased		—		486,105		646,431		—
Investment advisory and administration fee		193,715		344,279		—		—
Custody and fund accounting fees		72,850		80,707		21,453		21,639
Fund shares redeemed		1,875,617		1,786,489		174,504		—
Distribution and service fees		47,731		165,883		7,499		3,805
Trustees' fees		18,035		24,937		6,080		6,081
Due to broker		—		—		398,283		—
Variation margin on futures contracts		—		24,856		—		—
Accrued expenses		117,278		161,798		45,379		51,851
Outstanding swap agreements, at value²		5,468,262		—		—		—
Unrealized depreciation on forward foreign currency contracts		680,179		333,550		—		—
Total liabilities		10,524,832		27,910,311		3,039,281		1,313,362
Net assets	$	265,439,765	$	447,310,831	$	21,290,997	$	26,420,190

¹ The market value of securities loaned by UBS Dynamic Alpha Fund, UBS Global Allocation Fund, UBS Asset Growth Fund, UBS International Sustainable Equity Fund, UBS U.S. Large Cap Equity Fund, UBS U.S. Small Cap Growth Fund and UBS U.S. Equity Opportunity Fund as of December 31, 2015 was $19,833,278, $28,466,289, $1,703,003, $1,169,301, $2,768,284, $19,580,597 and $2,667,684, respectively.

² Net upfront payments received by UBS Dynamic Alpha Fund were $76,070.

124

The UBS Funds

Financial statements

	UBS U.S. Large Cap Equity Fund		UBS U.S. Small Cap Growth Fund		UBS U.S. Equity Opportunity Fund
Assets:
Investments, at cost:
Unaffiliated issuers	$	39,016,193	$	190,129,643	$	40,116,665
Affiliated issuers		—		—		—
Investment of cash collateral in an affiliated issuer received from securities loaned¹		2,846,580		19,847,673		2,692,994
Foreign currency		—		—		4,815
	$	41,862,773	$	209,977,316	$	42,814,474
Investments, at value:
Unaffiliated issuers	$	39,070,831	$	205,839,907	$	40,350,587
Affiliated issuers		—		—		—
Investment of cash collateral in an affiliated issuer received from securities loaned¹		2,846,580		19,847,673		2,692,994
Foreign currency		—		—		4,482
Cash		13		—		—
Receivables:
Investment securities sold		54,443		—		41,798
Interest		1,920		22,805		3,233
Fund shares sold		188		30,916,479		—
Foreign tax reclaims		—		—		—
Due from Advisor		—		—		—
Dividends		52,554		14,647		73,938
Variation margin on futures contracts		—		—		—
Variation margin on centrally cleared swap agreements		—		—		—
Due from broker		—		—		—
Cash collateral for futures contracts		—		—		—
Cash collateral for swap agreements		—		—		—
Outstanding swap agreements, at value²		—		—		—
Unrealized appreciation on forward foreign currency contracts		—		—		—
Other assets		26,402		43,146		23,954
Total assets		42,052,931		256,684,657		43,190,986
Liabilities:
Payables:
Cash collateral from securities loaned		2,846,580		19,847,673		2,692,994
Investment securities purchased		71,318		28,525,925		—
Investment advisory and administration fee		9,353		122,042		8,917
Custody and fund accounting fees		17,444		35,342		17,444
Fund shares redeemed		27,453		3,762,221		47,931
Distribution and service fees		4,094		13,668		11,346
Trustees' fees		6,646		13,828		6,873
Due to broker		—		—		—
Variation margin on futures contracts		—		—		—
Accrued expenses		35,414		39,691		56,227
Outstanding swap agreements, at value²		—		—		—
Unrealized depreciation on forward foreign currency contracts		—		—		—
Total liabilities		3,018,302		52,360,390		2,841,732
Net assets	$	39,034,629	$	204,324,267	$	40,349,254

See accompanying notes to financial statements.
125

The UBS Funds

Financial statements

Statement of assets and liabilities (continued)
December 31, 2015 (unaudited)

	UBS Fixed Income Opportunities Fund		UBS Core Plus Bond Fund
Assets:
Investments, at cost:
Unaffiliated issuers	$	26,967,488	$	43,759,408
Investment of cash collateral in an affiliated issuer received from securities loaned¹		—		9,480
Foreign currency		2,153		3,745
	$	26,969,641	$	43,772,633
Investments, at value:
Unaffiliated issuers	$	25,758,629	$	43,397,510
Investment of cash collateral in an affiliated issuer received from securities loaned¹		—		9,480
Foreign currency		2,101		3,733
Cash		1,539		—
Receivables:
Investment securities sold		—		3,808,714
Interest		264,267		196,767
Fund shares sold		—		16,135
Foreign tax reclaims		831		—
Due from Advisor		13,354		10,309
Dividends		26		543
Variation margin on centrally cleared swap agreements		76,400		10,529
Due from broker		5,657		33,229
Cash collateral for futures contracts		149,677		27,240
Cash collateral for swap agreements		908,499		49,732
Outstanding swap agreements, at value²		1,131,488		23,874
Unrealized appreciation on forward foreign currency contracts		36,675		17,271
Other assets		30,487		31,381
Total assets		28,379,630		47,636,447
Liabilities:
Payables:
Cash collateral from securities loaned		—		9,480
Investment securities purchased		1,104		12,969,139
Custody and fund accounting fees		32,329		23,336
Fund shares redeemed		620,433		1,781
Distribution and service fees		3,104		1,894
Trustees' fees		6,397		6,352
Due to custodian		—		2,188
Due to broker		—		—
Variation margin on futures contracts		78,981		9,571
Accrued expenses		78,943		39,147
Options written, at value³		112,930		61,777
Outstanding swap agreements, at value²		898,787		49,005
Unrealized depreciation on forward foreign currency contracts		57,385		—
Total liabilities		1,890,393		13,173,670
Net assets	$	26,489,237	$	34,462,777

¹ The market value of securities loaned by UBS Core Plus Bond Fund as of December 31, 2015 was $1,600,811.

² Net upfront payments made by UBS Fixed Income Opportunities Fund and UBS Core Plus Bond Fund were $39,162 and $20,895 respectively.

³ Premiums received by UBS Fixed Income Opportunities Fund and UBS Core Plus Bond Fund were $568,548 and $92,548 respectively.

126

The UBS Funds

Financial statements

	UBS Municipal Bond Fund
Assets:
Investments, at cost:
Unaffiliated issuers	$	66,096,282
Investment of cash collateral in an affiliated issuer received from securities loaned¹		—
Foreign currency		—
	$	66,096,282
Investments, at value:
Unaffiliated issuers	$	67,127,598
Investment of cash collateral in an affiliated issuer received from securities loaned¹		—
Foreign currency		—
Cash		—
Receivables:
Investment securities sold		—
Interest		723,993
Fund shares sold		230,157
Foreign tax reclaims		—
Due from Advisor		7,255
Dividends		168
Variation margin on centrally cleared swap agreements		—
Due from broker		—
Cash collateral for futures contracts		—
Cash collateral for swap agreements		—
Outstanding swap agreements, at value²		—
Unrealized appreciation on forward foreign currency contracts		—
Other assets		33,824
Total assets		68,122,995
Liabilities:
Payables:
Cash collateral from securities loaned		—
Investment securities purchased		—
Custody and fund accounting fees		19,626
Fund shares redeemed		16
Distribution and service fees		5,535
Trustees' fees		7,611
Due to custodian		—
Due to broker		3
Variation margin on futures contracts		—
Accrued expenses		59,466
Options written, at value³		—
Outstanding swap agreements, at value²		—
Unrealized depreciation on forward foreign currency contracts		—
Total liabilities		92,257
Net assets	$	68,030,738

See accompanying notes to financial statements.
127

The UBS Funds

Financial statements

Statement of assets and liabilities (continued)
December 31, 2015 (unaudited)

	UBS Dynamic Alpha Fund			UBS Global Allocation Fund			UBS Asset Growth Fund			UBS International Sustainable Equity Fund
Net assets consist of:
Beneficial interest	$	671,278,930		$	1,406,885,124		$	49,568,350		$	35,236,639
Accumulated undistributed (distributions in excess of) net investment income (loss)		(1,575,632	)		(1,320,018	)		25,773			93,781
Accumulated net realized gain (loss)		(380,872,776	)		(953,332,073	)		(28,300,586	)		(8,161,650	)
Net unrealized appreciation (depreciation)		(23,390,757	)		(4,922,202	)		(2,540	)		(748,580	)
Net assets	$	265,439,765		$	447,310,831		$	21,290,997		$	26,420,190
Class A:
Net assets	$	74,533,128		$	211,126,296		$	10,990,292		$	6,840,400
Shares outstanding		11,639,017			19,800,411			1,372,514			801,316
Net asset value and redemption proceeds per share	$	6.40		$	10.66		$	8.01		$	8.54
Offering price per share (NAV per share plus maximum sales charge)¹	$	6.77		$	11.28		$	8.48		$	9.04
Class C:
Net assets	$	32,941,657		$	128,910,653		$	5,531,151		$	2,660,663
Shares outstanding		5,468,324			12,412,190			699,512			318,374
Net asset value and offering price per share	$	6.02		$	10.39		$	7.91		$	8.36
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)¹	$	5.96		$	10.29		$	7.83		$	8.28
Class P:
Net assets	$	157,964,980		$	107,273,882		$	4,769,554		$	16,919,127
Shares outstanding		24,238,959			9,857,805			595,820			1,977,355
Net asset value per share, offering price per share, and redemption proceeds per share	$	6.52		$	10.88		$	8.01		$	8.56

¹ For Class A shares of UBS Dynamic Alpha Fund, UBS Global Allocation Fund, UBS Asset Growth Fund, UBS International Sustainable Equity Fund, UBS U.S. Large Cap Equity Fund, UBS U.S. Small Cap Growth Fund, UBS U.S. Equity Opportunity Fund, the maximum sales charge is 5.50%. For Class A shares of UBS Fixed Income Opportunities Fund and UBS Core Plus Bond Fund, the maximum sales charge is 4.50%. For Class A shares of UBS Municipal Bond Fund, the maximum sales charge is 2.25%. Classes C and P 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 sale 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 C shares of UBS Dynamic Alpha Fund, UBS Global Allocation Fund, UBS Asset Growth Fund, UBS International Sustainable Equity Fund, UBS U.S. Large Cap Equity Fund, UBS U.S. Small Cap Growth Fund and UBS U.S. Equity Opportunity Fund, the maximum contingent deferred sales charge is 1.00%. For Class C shares of UBS Fixed Income Opportunities Fund, UBS Core Plus Bond Fund and UBS Municipal Bond Fund, the maximum contingent deferred sales charge is 0.75%. Class P has no contingent deferred sales charge. 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. For sales or exchanges taking place on or after February 17, 2015, there is a reduction in the redemption holding period from 90 days to 30 days. Shares that an investor holds or purchases prior to implementation of this new holding period are subject to preexisting terms for the holding period as outlined in the prospectus. Effective August 3, 2015, the 1.00% redemption fee imposed on sales or exchanges of any class of shares of the funds made during the holding periods specified in the prospectus was eliminated.

128

The UBS Funds

Financial statements

	UBS U.S. Large Cap Equity Fund			UBS U.S. Small Cap Growth Fund			UBS U.S. Equity Opportunity Fund
Net assets consist of:
Beneficial interest	$	119,609,527		$	183,644,925		$	40,625,746
Accumulated undistributed (distributions in excess of) net investment income (loss)		118,217			(610,770	)		97,626
Accumulated net realized gain (loss)		(80,747,753	)		5,579,848			(607,707	)
Net unrealized appreciation (depreciation)		54,638			15,710,264			233,589
Net assets	$	39,034,629		$	204,324,267		$	40,349,254
Class A:
Net assets	$	9,234,977		$	38,065,053		$	34,723,436
Shares outstanding		363,554			2,006,950			3,551,986
Net asset value and redemption proceeds per share	$	25.40		$	18.97		$	9.78
Offering price per share (NAV per share plus maximum sales charge)¹	$	26.88		$	20.07		$	10.35
Class C:
Net assets	$	2,192,146		$	5,169,595		$	3,636,085
Shares outstanding		89,829			317,944			385,226
Net asset value and offering price per share	$	24.40		$	16.26		$	9.44
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)¹	$	24.16		$	16.10		$	9.35
Class P:
Net assets	$	27,607,506		$	161,089,619		$	1,989,733
Shares outstanding		1,083,377			7,925,753			202,505
Net asset value per share, offering price per share, and redemption proceeds per share	$	25.48		$	20.32		$	9.83

See accompanying notes to financial statements.
129

The UBS Funds

Financial statements

Statement of assets and liabilities (continued)
December 31, 2015 (unaudited)

	UBS Fixed Income Opportunities Fund			UBS Core Plus Bond Fund
Net assets consist of:
Beneficial interest	$	34,274,284		$	68,690,515
Accumulated undistributed (distributions in excess of) net investment income		778,762			209,696
Accumulated net realized loss		(7,080,330	)		(34,078,787	)
Net unrealized appreciation (depreciation)		(1,483,479	)		(358,647	)
Net assets	$	26,489,237		$	34,462,777
Class A:
Net assets	$	4,657,039		$	5,016,805
Shares outstanding		523,941			561,923
Net asset value and redemption proceeds per share	$	8.89		$	8.93
Offering price per share (NAV per share plus maximum sales charge)¹	$	9.31		$	9.35
Class C:
Net assets	$	2,855,620		$	1,212,229
Shares outstanding		321,691			136,244
Net asset value and offering price per share	$	8.88		$	8.90
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)¹	$	8.81		$	8.83
Class P:
Net assets	$	18,976,578		$	28,233,743
Shares outstanding		2,134,257			3,166,919
Net asset value per share, offering price per share, and redemption proceeds per share	$	8.89		$	8.92

130

The UBS Funds

Financial statements

	UBS Municipal Bond Fund
Net assets consist of:
Beneficial interest	$	67,235,932
Accumulated undistributed (distributions in excess of) net investment income		(87,594	)
Accumulated net realized loss		(148,916	)
Net unrealized appreciation (depreciation)		1,031,316
Net assets	$	68,030,738
Class A:
Net assets	$	13,159,633
Shares outstanding		1,291,698
Net asset value and redemption proceeds per share	$	10.19
Offering price per share (NAV per share plus maximum sales charge)¹	$	10.42
Class C:
Net assets	$	4,137,032
Shares outstanding		406,251
Net asset value and offering price per share	$	10.18
Redemption proceeds per share (NAV per share less maximum contingent deferred sales charge)¹	$	10.08
Class P:
Net assets	$	50,734,073
Shares outstanding		4,982,068
Net asset value per share, offering price per share, and redemption proceeds per share	$	10.18

See accompanying notes to financial statements.
131

The UBS Funds

Financial statements

Statement of operations
For the six months ended December 31, 2015 (unaudited)

	UBS Dynamic Alpha Fund			UBS Global Allocation Fund			UBS Asset Growth Fund			UBS International Sustainable Equity Fund
Investment income:
Dividends	$	699		$	2,227,074		$	182,047		$	219,699
Interest		3,323,436			516,331			—			—
Affiliated income		8,639			32,095			4,232			164
Securities lending¹		28,090			311,014			18,567			2,717
Foreign tax withheld		—			(86,554	)		—			(13,034	)
Total income		3,360,864			2,999,960			204,846			209,546
Expenses:
Advisory and administration		1,409,907			2,114,217			119,737			113,434
Distribution and service:
Class A		103,369			281,352			15,114			7,878
Class C		195,404			693,525			30,117			13,503
Transfer agency and related services fees:
Class A		21,352			69,271			2,852			2,140
Class C		15,660			65,538			1,906			1,137
Class P		64,494			27,330			1,022			5,868
Custodian and fund accounting		88,771			100,476			26,062			26,795
Federal and state registration		30,667			27,704			19,244			18,969
Professional services		71,064			80,468			51,729			63,282
Shareholder reports		26,032			47,188			4,507			4,847
Trustees		35,464			48,663			11,975			12,074
Other		39,505			52,554			19,343			15,107
Total expenses		2,101,689			3,608,286			303,608			285,034
Fee waivers and/or expense reimbursements by Advisor		(132,805	)		(16,249	)		(124,664	)		(134,506	)
Net expenses		1,968,884			3,592,037			178,944			150,528
Net investment income (loss)		1,391,980			(592,077	)		25,902			59,018
Net realized gain (loss) on:
Investments in unaffiliated issuers		(2,092,580	)		(3,576,191	)		(563,312	)		471,515
Investments in affiliated issuers		—			409,106			—			—
Distribution from affiliated issuer		2,473			14,315			1,230			119
Futures contracts		(16,674,725	)		(1,403,160	)		(3,271,407	)		—
Options written		(6,071,281	)		—			—			—
Swap agreements		(944,794	)		457,279			—			—
Forward foreign currency contracts		5,995,233			3,319,483			—			—
Foreign currency transactions		82,433			(111,730	)		47,443			36,043
Net realized gain (loss)		(19,703,241	)		(890,898	)		(3,786,046	)		507,677
Change in net unrealized appreciation/depreciation on:
Investments		(7,129,729	)		(16,967,106	)		(92,112	)		(2,882,340	)
Futures contracts		2,564,687			3,673,500			585,856			—
Options written		430,590			—			—			—
Swap agreements		292,135			(467,168	)		—			—
Forward foreign currency contracts		(667,172	)		(21,683	)		—			—
Translation of other assets and liabilities denominated in foreign currency		49,313			3,657			18,752			1,174
Change in net unrealized appreciation/depreciation		(4,460,176	)		(13,778,800	)		512,496			(2,881,166	)
Net realized and unrealized loss		(24,163,417	)		(14,669,698	)		(3,273,550	)		(2,373,489	)
Contributions from Advisor		214,280			316,557			—			5,471
Net decrease in net assets resulting from operations	$	(22,557,157	)	$	(14,945,218	)	$	(3,247,648	)	$	(2,309,000	)

¹ Includes affiliated income from UBS Private Money Market Fund LLC of $185, $2,586, $246, $57, $269, $2,331 and $244 for UBS Dynamic Alpha Fund, UBS Global Allocation Fund, UBS Asset Growth Fund, UBS International Sustainable Equity Fund, UBS U.S. Large Cap Equity Fund, UBS U.S. Small Cap Growth Fund and UBS U.S. Equity Opportunity Fund, respectively.

132

The UBS Funds

Financial statements

	UBS U.S. Large Cap Equity Fund			UBS U.S. Small Cap Growth Fund			UBS U.S. Equity Opportunity Fund
Investment income:
Dividends	$	305,734		$	375,871		$	316,836
Interest		—			—			—
Affiliated income		144			2,417			424
Securities lending¹		15,660			271,650			44,381
Foreign tax withheld		—			—			—
Total income		321,538			649,938			361,641
Expenses:
Advisory and administration		150,445			1,048,774			168,093
Distribution and service:
Class A		11,893			55,419			46,648
Class C		12,060			25,103			19,649
Transfer agency and related services fees:
Class A		2,888			33,344			13,587
Class C		1,084			2,926			2,223
Class P		2,988			23,538			1,380
Custodian and fund accounting		21,402			42,991			21,004
Federal and state registration		19,590			20,601			19,419
Professional services		53,889			54,532			55,187
Shareholder reports		5,807			15,454			13,246
Trustees		13,120			27,706			13,569
Other		15,429			24,194			10,734
Total expenses		310,595			1,374,582			384,739
Fee waivers and/or expense reimbursements by Advisor		(102,878	)		(176,118	)		(113,224	)
Net expenses		207,717			1,198,464			271,515
Net investment income (loss)		113,821			(548,526	)		90,126
Net realized gain (loss) on:
Investments in unaffiliated issuers		875,952			6,870,807			4,167,087
Investments in affiliated issuers		—			—			—
Distribution from affiliated issuer		76			1,161			66
Futures contracts		—			—			—
Options written		—			—			—
Swap agreements		—			—			—
Forward foreign currency contracts		—			—			—
Foreign currency transactions		—			—			—
Net realized gain (loss)		876,028			6,871,968			4,167,153
Change in net unrealized appreciation/depreciation on:
Investments		(3,531,709	)		(35,371,656	)		(7,090,822	)
Futures contracts		—			—			—
Options written		—			—			—
Swap agreements		—			—			—
Forward foreign currency contracts		—			—			—
Translation of other assets and liabilities denominated in foreign currency		—			—			(279	)
Change in net unrealized appreciation/depreciation		(3,531,709	)		(35,371,656	)		(7,091,101	)
Net realized and unrealized loss		(2,655,681	)		(28,499,688	)		(2,923,948	)
Contributions from Advisor		—			—			—
Net decrease in net assets resulting from operations	$	(2,541,860	)	$	(29,048,214	)	$	(2,833,822	)

See accompanying notes to financial statements.
133

The UBS Funds

Financial statements

Statement of operations (continued)
For the six months ended December 31, 2015 (unaudited)

	UBS Fixed Income Opportunities Fund			UBS Core Plus Bond Fund
Investment income:
Dividends	$	17		$	459
Interest		610,896			381,710
Affiliated income		434			2,397
Securities lending¹		—			1,892
Foreign tax withheld		(5	)		—
Total income		611,342			386,458
Expenses:
Advisory and administration		113,459			95,405
Distribution and service:
Class A		6,572			4,268
Class C		12,370			4,545
Transfer agency and related services fees:
Class A		1,453			—
Class C		1,189			1,431
Class P		6,442			2,754
Custodian and fund accounting		39,182			27,814
Federal and state registration		18,814			19,958
Professional services		65,956			52,959
Shareholder reports		18,474			5,091
Trustees		12,679			12,599
Amortization of offering costs		—			—
Other		19,338			9,625
Total expenses		315,928			236,449
Fee waivers and/or expense reimbursements by Advisor		(187,032	)		(163,054	)
Net expenses		128,896			73,395
Net investment income		482,446			313,063
Net realized gain (loss) on:
Investments in unaffiliated issuers		(2,782,189	)		(99,647	)
Distribution from affiliated issuer		128			1,064
Futures contracts		1,209,198			23,473
Options written		293,002			39,064
Swap agreements		(1,210,610	)		165,253
Forward foreign currency contracts		43,673			(5,351	)
Foreign currency transactions		74,564			28,778
Net realized gain (loss)		(2,372,234	)		152,634
Change in net unrealized appreciation/depreciation on:
Investments		(146,893	)		(305,027	)
Futures contracts		(39,624	)		1,392
Options written		(36,601	)		14,723
Swap agreements		679,302			(157,789	)
Forward foreign currency contracts		23,460			4,617
Translation of other assets and liabilities denominated in foreign currency		7,416			(325	)
Change in net unrealized appreciation/depreciation		487,060			(442,409	)
Net realized and unrealized gain (loss)		(1,885,174	)		(289,775	)
Net increase (decrease) in net assets resulting from operations	$	(1,402,728	)	$	23,288

¹ Includes affiliated income from UBS Private Money Market Fund LLC of $9 for UBS Core Plus Bond Fund.

134

The UBS Funds

Financial statements

	UBS Municipal Bond Fund
Investment income:
Dividends	$	117
Interest		687,924
Affiliated income		773
Securities lending¹		—
Foreign tax withheld		—
Total income		688,814
Expenses:
Advisory and administration		141,887
Distribution and service:
Class A		14,701
Class C		14,174
Transfer agency and related services fees:
Class A		444
Class C		478
Class P		3,683
Custodian and fund accounting		27,283
Federal and state registration		19,291
Professional services		46,899
Shareholder reports		13,718
Trustees		14,952
Amortization of offering costs		33,878
Other		6,835
Total expenses		338,223
Fee waivers and/or expense reimbursements by Advisor		(190,250	)
Net expenses		147,973
Net investment income		540,841
Net realized gain (loss) on:
Investments in unaffiliated issuers		(37,388	)
Distribution from affiliated issuer		585
Futures contracts		(18,391	)
Options written		—
Swap agreements		—
Forward foreign currency contracts		—
Foreign currency transactions		—
Net realized gain (loss)		(55,194	)
Change in net unrealized appreciation/depreciation on:
Investments		1,702,620
Futures contracts		(93,722	)
Options written		—
Swap agreements		—
Forward foreign currency contracts		—
Translation of other assets and liabilities denominated in foreign currency		—
Change in net unrealized appreciation/depreciation		1,608,898
Net realized and unrealized gain (loss)		1,553,704
Net increase (decrease) in net assets resulting from operations	$	2,094,545

See accompanying notes to financial statements.
135

The UBS Funds

Financial statements

Statement of changes in net assets

	UBS Dynamic Alpha Fund						UBS Global Allocation Fund
	Six months ended December 31, 2015 (unaudited)			Year ended June 30, 2015			Six months ended December 31, 2015 (unaudited)			Year ended June 30, 2015
Operations:
Net investment income (loss)	$	1,391,980		$	1,962,094		$	(592,077	)	$	(901,964	)
Net realized gain (loss)		(19,703,241	)		23,526,473			(890,898	)		61,553,345
Change in net unrealized appreciation/depreciation		(4,460,176	)		(19,331,753	)		(13,778,800	)		(50,112,257	)
Contributions from Advisor		214,280			2,068			316,557			—
Net increase (decrease) in net assets from operations		(22,557,157	)		6,158,882			(14,945,218	)		10,539,124
Dividends and distributions to shareholders by class:
Class A:
Net investment income		(2,678,021	)		(3,213,694	)		(5,354,437	)		—
Total Class A dividends and distributions		(2,678,021	)		(3,213,694	)		(5,354,437	)		—
Class C:
Net investment income		(947,233	)		(1,474,152	)		(2,183,113	)		—
Total Class C dividends and distributions		(947,233	)		(1,474,152	)		(2,183,113	)		—
Class P:
Net investment income		(5,980,500	)		(6,858,469	)		(3,013,026	)		—
Total Class P dividends and distributions		(5,980,500	)		(6,858,469	)		(3,013,026	)		—
Decrease in net assets from dividends and distributions		(9,605,754	)		(11,546,315	)		(10,550,576	)		—
Beneficial interest transactions:
Proceeds from shares sold		23,047,427			167,409,014			5,478,487			78,469,043
Shares issued on reinvestment of dividends and distributions		9,059,509			10,374,472			9,531,747			—
Cost of shares redeemed		(62,573,057	)		(170,803,372	)		(46,561,435	)		(197,453,045	)
Redemption fees		172			3,797			966			11,272
Net increase (decrease) in net assets resulting from beneficial interest transactions		(30,465,949	)		6,983,911			(31,550,235	)		(118,972,730	)
Increase (decrease) in net assets		(62,628,860	)		1,596,478			(57,046,029	)		(108,433,606	)
Net assets, beginning of period		328,068,625			326,472,147			504,356,860			612,790,466
Net assets, end of period	$	265,439,765		$	328,068,625		$	447,310,831		$	504,356,860
Accumulated undistributed (distributions in excess) net investment income (loss)	$	(1,575,632	)	$	6,638,142		$	(1,320,018	)	$	9,822,635

136

The UBS Funds

Financial statements

	UBS Asset Growth Fund						UBS International Sustainable Equity Fund
	Six months ended December 31, 2015 (unaudited)			Year ended June 30, 2015			Six months ended December 31, 2015 (unaudited)			Year ended June 30, 2015
Operations:
Net investment income (loss)	$	25,902		$	94,728		$	59,018		$	285,369
Net realized gain (loss)		(3,786,046	)		722,663			507,677			1,391,726
Change in net unrealized appreciation/depreciation		512,496			(1,229,313	)		(2,881,166	)		(69,149	)
Contributions from Advisor		—			—			5,471			—
Net increase (decrease) in net assets from operations		(3,247,648	)		(411,922	)		(2,309,000	)		1,607,946
Dividends and distributions to shareholders by class:
Class A:
Net investment income		(47,646	)		—			(69,810	)		(66,890	)
Total Class A dividends and distributions		(47,646	)		—			(69,810	)		(66,890	)
Class C:
Net investment income		—			—			(15,558	)		(18,393	)
Total Class C dividends and distributions		—			—			(15,558	)		(18,393	)
Class P:
Net investment income		(38,464	)		—			(218,890	)		(230,480	)
Total Class P dividends and distributions		(38,464	)		—			(218,890	)		(230,480	)
Decrease in net assets from dividends and distributions		(86,110	)		—			(304,258	)		(315,763	)
Beneficial interest transactions:
Proceeds from shares sold		421,999			5,702,511			4,475,474			10,319,936
Shares issued on reinvestment of dividends and distributions		77,878			—			274,911			283,113
Cost of shares redeemed		(1,468,741	)		(11,965,940	)		(1,863,153	)		(7,332,965	)
Redemption fees		20			514			—			1,207
Net increase (decrease) in net assets resulting from beneficial interest transactions		(968,844	)		(6,262,915	)		2,887,232			3,271,291
Increase (decrease) in net assets		(4,302,602	)		(6,674,837	)		273,974			4,563,474
Net assets, beginning of period		25,593,599			32,268,436			26,146,216			21,582,742
Net assets, end of period	$	21,290,997		$	25,593,599		$	26,420,190		$	26,146,216
Accumulated undistributed (distributions in excess) net investment income (loss)	$	25,773		$	85,981		$	93,781		$	339,021

See accompanying notes to financial statements.
137

The UBS Funds

Financial statements

Statement of changes in net assets (continued)

	UBS U.S. Large Cap Equity Fund						UBS U.S. Small Cap Growth Fund
	Six months ended December 31, 2015 (unaudited)			Year ended June 30, 2015			Six months ended December 31, 2015 (unaudited)			Year ended June 30, 2015
Operations:
Net investment income (loss)	$	113,821		$	657,802		$	(548,526	)	$	(1,141,407	)
Net realized gain (loss)		876,028			30,679,774			6,871,968			53,723,523
Change in net unrealized appreciation/depreciation		(3,531,709	)		(22,596,836	)		(35,371,656	)		(20,345,811	)
Net increase (decrease) in net assets from operations		(2,541,860	)		8,740,740			(29,048,214	)		32,236,305
Dividends and distributions to shareholders by class:
Class A:
Net investment income		(132,023	)		(43,281	)		—			—
Net realized gain		—			—			(3,580,313	)		(6,507,157	)
Total Class A dividends and distributions		(132,023	)		(43,281	)		(3,580,313	)		(6,507,157	)
Class C:
Net investment income		(12,163	)		—			—			—
Net realized gain		—			—			(515,022	)		(756,458	)
Total Class C dividends and distributions		(12,163	)		—			(515,022	)		(756,458	)
Class P:
Net investment income		(454,262	)		(991,668	)		—			—
Net realized gain		—			—			(10,977,397	)		(35,905,549	)
Total Class P dividends and distributions		(454,262	)		(991,668	)		(10,977,397	)		(35,905,549	)
Decrease in net assets from dividends and distributions		(598,448	)		(1,034,949	)		(15,072,732	)		(43,169,164	)
Beneficial interest transactions:
Proceeds from shares sold		4,326,301			18,239,780			81,950,107			51,855,914
Shares issued on reinvestment of dividends and distributions		577,488			1,027,205			13,779,443			41,880,585
Cost of shares redeemed		(3,500,518	)		(125,721,205	)		(77,990,728	)		(124,727,853	)
Redemption fees		51			8,053			338			15,649
Net increase (decrease) in net assets resulting from beneficial interest transactions		1,403,322			(106,446,167	)		17,739,160			(30,975,705	)
Decrease in net assets		(1,736,986	)		(98,740,376	)		(26,381,786	)		(41,908,564	)
Net assets, beginning of period		40,771,615			139,511,991			230,706,053			272,614,617
Net assets, end of period	$	39,034,629		$	40,771,615		$	204,324,267		$	230,706,053
Accumulated undistributed (distributions in excess) net investment income (loss)	$	118,217		$	602,844		$	(610,770	)	$	(62,244	)

138

The UBS Funds

Financial statements

	UBS U.S. Equity Opportunity Fund						UBS Fixed Income Opportunities Fund
	Six months ended December 31, 2015 (unaudited)			Year ended June 30, 2015			Six months ended December 31, 2015 (unaudited)			Year ended June 30, 2015
Operations:
Net investment income (loss)	$	90,126		$	33,879		$	482,446		$	1,458,921
Net realized gain (loss)		4,167,153			4,263,243			(2,372,234	)		1,099,444
Change in net unrealized appreciation/depreciation		(7,091,101	)		(727,178	)		487,060			(3,330,547	)
Net increase (decrease) in net assets from operations		(2,833,822	)		3,569,944			(1,402,728	)		(772,182	)
Dividends and distributions to shareholders by class:
Class A:
Net investment income		(4,626	)		(13,899	)		(14,797	)		(133,712	)
Net realized gain		—			—			—			—
Total Class A dividends and distributions		(4,626	)		(13,899	)		(14,797	)		(133,712	)
Class C:
Net investment income		—			—			(1,135	)		(76,913	)
Net realized gain		—			—			—			—
Total Class C dividends and distributions		—			—			(1,135	)		(76,913	)
Class P:
Net investment income		(5,796	)		(6,104	)		(90,893	)		(799,941	)
Net realized gain		—			—			—			—
Total Class P dividends and distributions		(5,796	)		(6,104	)		(90,893	)		(799,941	)
Decrease in net assets from dividends and distributions		(10,422	)		(20,003	)		(106,825	)		(1,010,566	)
Beneficial interest transactions:
Proceeds from shares sold		182,319			1,244,813			701,583			32,213,300
Shares issued on reinvestment of dividends and distributions		9,858			18,587			97,037			780,980
Cost of shares redeemed		(1,941,286	)		(5,573,663	)		(6,279,511	)		(66,092,675	)
Redemption fees		—			1,323			30			932
Net increase (decrease) in net assets resulting from beneficial interest transactions		(1,749,109	)		(4,308,940	)		(5,480,861	)		(33,097,463	)
Decrease in net assets		(4,593,353	)		(758,999	)		(6,990,414	)		(34,880,211	)
Net assets, beginning of period		44,942,607			45,701,606			33,479,651			68,359,862
Net assets, end of period	$	40,349,254		$	44,942,607		$	26,489,237		$	33,479,651
Accumulated undistributed (distributions in excess) net investment income (loss)	$	97,626		$	17,922		$	778,762		$	403,141

See accompanying notes to financial statements.
139

The UBS Funds

Financial statements

Statement of changes in net assets (continued)

	UBS Core Plus Bond Fund
	Six months ended December 31, 2015 (unaudited)			Year ended June 30, 2015
Operations:
Net investment income	$	313,063		$	561,654
Net realized gain (loss)		152,634			648,680
Change in net unrealized appreciation/depreciation		(442,409	)		(675,723	)
Net increase (decrease) in net assets from operations		23,288			534,611
Dividends and distributions to shareholders by class:
Class A:
Net investment income		(56,562	)		(79,804	)
Total Class A dividends and distributions		(56,562	)		(79,804	)
Class C:
Net investment income		(13,700	)		(36,781	)
Total Class C dividends and distributions		(13,700	)		(36,781	)
Class P:
Net investment income		(425,142	)		(917,558	)
Total Class P dividends and distributions		(425,142	)		(917,558	)
Decrease in net assets from dividends and distributions		(495,404	)		(1,034,143	)
Beneficial interest transactions:
Proceeds from shares sold		4,813,769			7,314,727
Shares issued on reinvestment of dividends and distributions		461,001			1,008,220
Cost of shares redeemed		(2,353,992	)		(5,909,702	)
Redemption fees		—			8,338
Net increase in net assets resulting from beneficial interest transactions		2,920,778			2,421,583
Increase in net assets		2,448,662			1,922,051
Net assets, beginning of period		32,014,115			30,092,064
Net assets, end of period	$	34,462,777		$	32,014,115
Accumulated undistributed (distributions in excess) net investment income	$	209,696		$	392,037

¹ For the period November 10, 2014 (commencement of operations) to June 30, 2015

140

The UBS Funds

Financial statements

	UBS Municipal Bond Fund
	Six months ended December 31, 2015 (unaudited)			Period ended June 30, 2015¹
Operations:
Net investment income	$	540,841		$	506,110
Net realized gain (loss)		(55,194	)		(92,930	)
Change in net unrealized appreciation/depreciation		1,608,898			(577,582	)
Net increase (decrease) in net assets from operations		2,094,545			(164,402	)
Dividends and distributions to shareholders by class:
Class A:
Net investment income		(115,579	)		(64,280	)
Total Class A dividends and distributions		(115,579	)		(64,280	)
Class C:
Net investment income		(28,372	)		(13,168	)
Total Class C dividends and distributions		(28,372	)		(13,168	)
Class P:
Net investment income		(494,950	)		(449,970	)
Total Class P dividends and distributions		(494,950	)		(449,970	)
Decrease in net assets from dividends and distributions		(638,901	)		(527,418	)
Beneficial interest transactions:
Proceeds from shares sold		26,513,772			74,538,038
Shares issued on reinvestment of dividends and distributions		519,236			240,583
Cost of shares redeemed		(21,328,312	)		(13,221,852	)
Redemption fees		—			5,449
Net increase in net assets resulting from beneficial interest transactions		5,704,696			61,562,218
Increase in net assets		7,160,340			60,870,398
Net assets, beginning of period		60,870,398			—
Net assets, end of period	$	68,030,738		$	60,870,398
Accumulated undistributed (distributions in excess) net investment income	$	(87,594	)	$	10,466

See accompanying notes to financial statements.
141

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
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	7.13		$	7.24		$	6.82		$	6.36		$	5.98		$	5.92
Income (loss) from investment operations:
Net investment income (loss)¹		0.03			0.04			0.05			0.07			0.08			0.06
Net realized and unrealized gain (loss)		(0.53	)		0.11			0.38			0.50			0.30			0.16
Net increase from payment by Advisor		0.00³			0.00³			—			—			—			—
Total income (loss) from investment operations		(0.50	)		0.15			0.43			0.57			0.38			0.22
Less dividends/distributions:
From net investment income		(0.23	)		(0.26	)		(0.01	)		(0.11	)		—			(0.16	)
Net asset value, end of period	$	6.40		$	7.13		$	7.24		$	6.82		$	6.36		$	5.98
Total investment return²		(6.99	)%⁴		2.03	%⁵		6.31	%		9.05	%		6.18	%		3.58	%
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		1.42	%⁶		1.43	%		1.42	%		1.43	%		1.60	%		1.79	%
Expenses after fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		1.35	%⁶		1.35	%		1.35	%		1.35	%		1.54	%		1.76	%
Expenses after fee waivers and/or expense reimbursement and before dividend expense and security loan fees for securities sold short		1.35	%⁶		1.35	%		1.35	%		1.35	%		1.35	%		1.35	%
Net investment income		0.86	%⁶		0.58	%		0.66	%		0.98	%		1.33	%		0.95	%
Supplemental data:
Net assets, end of period (000's)	$	74,533		$	89,421		$	194,185		$	208,369		$	160,773		$	216,297
Portfolio turnover rate		17	%		54	%		45	%		74	%		164	%		65	%

	Class P
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	7.27		$	7.38		$	6.96		$	6.48		$	6.09		$	6.03
Income (loss) from investment operations:
Net investment income¹		0.04			0.06			0.06			0.09			0.10			0.08
Net realized and unrealized gain (loss)		(0.54	)		0.12			0.39			0.52			0.29			0.16
Net increase from payment by Advisor		0.00³			0.00³			—			—			—			—
Total income (loss) from investment operations		(0.50	)		0.18			0.45			0.61			0.39			0.24
Less dividends/distributions:
From net investment income		(0.25	)		(0.29	)		(0.03	)		(0.13	)		—			(0.18	)
Net asset value, end of period	$	6.52		$	7.27		$	7.38		$	6.96		$	6.48		$	6.09
Total investment return²		(6.74	)%⁴		2.29	%⁵		6.45	%		9.29	%		6.57	%		3.89	%
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		1.19	%⁶		1.20	%		1.15	%		1.12	%		1.28	%		1.49	%
Expenses after fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		1.10	%⁶		1.10	%		1.10	%		1.10	%		1.28	%		1.49	%
Expenses after fee waivers and/or expense reimbursement and before dividend expense and security loan fees for securities sold short		1.10	%⁶		1.10	%		1.10	%		1.10	%		1.10	%		1.07	%
Net investment income		1.11	%⁶		0.84	%		0.87	%		1.25	%		1.56	%		1.25	%
Supplemental data:
Net assets, end of period (000's)	$	157,965		$	192,777		$	81,168		$	48,113		$	51,807		$	87,743
Portfolio turnover rate		17	%		54	%		45	%		74	%		164	%		65	%

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 Fund dividends/distributions or the redemption of Fund shares.

142

UBS Dynamic Alpha Fund

Financial highlights

	Class C
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	6.68		$	6.81		$	6.46		$	6.02		$	5.71		$	5.65
Income (loss) from investment operations:
Net investment income (loss)¹		0.00³			(0.01	)		(0.01	)		0.02			0.03			0.01
Net realized and unrealized gain (loss)		(0.49	)		0.09			0.36			0.48			0.28			0.15
Net increase from payment by Advisor		0.00³			0.00³			—			—			—			—
Total income (loss) from investment operations		(0.49	)		0.08			0.35			0.50			0.31			0.16
Less dividends/distributions:
From net investment income		(0.17	)		(0.21	)		—			(0.06	)		—			(0.10	)
Net asset value, end of period	$	6.02		$	6.68		$	6.81		$	6.46		$	6.02		$	5.71
Total investment return²		(7.31	)%⁴		1.21	%⁵		5.42	%		8.22	%		5.60	%		2.82	%
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		2.20	%⁶		2.19	%		2.18	%		2.19	%		2.36	%		2.55	%
Expenses after fee waivers and/or expense reimbursement and after dividend expense and security loan fees for securities sold short		2.10	%⁶		2.10	%		2.10	%		2.10	%		2.29	%		2.51	%
Expenses after fee waivers and/or expense reimbursement and before dividend expense and security loan fees for securities sold short		2.10	%⁶		2.10	%		2.10	%		2.10	%		2.10	%		2.10	%
Net investment income		0.10	%⁶		(0.17	)%		(0.09	)%		0.24	%		0.58	%		0.20	%
Supplemental data:
Net assets, end of period (000's)	$	32,942		$	45,871		$	51,119		$	53,405		$	49,155		$	66,349
Portfolio turnover rate		17	%		54	%		45	%		74	%		164	%		65	%

³ Amount represents less than $0.005 per share.

⁴ During the period ended December 31, 2015, the Advisor reimbursed the Fund $128,212, which was determined to be the value of the ineligible services paid for from the Fund's dealing commissions, and $86,068 for a trading error, both reimbursements had no impact on the Fund's total return.

⁵ During the year ended June 30, 2015 the advisor reimbursed the fund for a trading error in the amount of $2,068, which had no impact on the Fund's total return.

⁶ Annualized.

See accompanying notes to financial statements.
143

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
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	11.27		$	11.04		$	9.79		$	9.12		$	10.27		$	8.66
Income (loss) from investment operations:
Net investment income (loss)¹		(0.01	)		(0.00	)³		0.02			0.01			(0.00	)³		0.00³
Net realized and unrealized gain (loss)		(0.33	)		0.23			1.36			0.88			(0.72	)		2.05
Total income (loss) from investment operations		(0.34	)		0.23			1.38			0.89			(0.72	)		2.05
Less dividends/distributions:
From net investment income		(0.27	)		—			(0.13	)		(0.22	)		(0.43	)		(0.44	)
Net asset value, end of period	$	10.66		$	11.27		$	11.04		$	9.79		$	9.12		$	10.27
Total investment return²		(2.99	)%⁴		2.08	%		14.20	%		9.86	%		(6.83	)%		23.87	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.34	%⁵		1.32	%		1.30	%		1.28	%		1.25	%		1.21	%
Expenses after fee waivers and/or expense reimbursement		1.34	%⁵		1.32	%		1.30	%		1.28	%		1.25	%		1.21	%
Net investment income (loss)		(0.09	)%⁵		(0.01	)%		0.17	%		0.12	%		(0.03	)%		0.05	%
Supplemental data:
Net assets, end of period (000's)	$	211,126		$	234,665		$	309,296		$	377,781		$	494,604		$	753,750
Portfolio turnover rate		33	%		62	%		49	%		54	%		93	%		68	%

	Class P
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	11.51		$	11.25		$	9.98		$	9.30		$	10.48		$	8.84
Income (loss) from investment operations:
Net investment income¹		0.01			0.03			0.05			0.04			0.03			0.04
Net realized and unrealized gain (loss)		(0.33	)		0.23			1.39			0.90			(0.75	)		2.07
Total income (loss) from investment operations		(0.32	)		0.26			1.44			0.94			(0.72	)		2.11
Less dividends/distributions:
From net investment income		(0.31	)		—			(0.17	)		(0.26	)		(0.46	)		(0.47	)
Net asset value, end of period	$	10.88		$	11.51		$	11.25		$	9.98		$	9.30		$	10.48
Total investment return²		(2.81	)%⁴		2.31	%		14.56	%		10.22	%		(6.59	)%		24.15	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.07	%⁵		1.04	%		1.00	%		0.98	%		0.95	%		0.92	%
Expenses after fee waivers and/or expense reimbursement		1.07	%⁵		1.04	%		1.00	%		0.98	%		0.95	%		0.92	%
Net investment income		0.17	%⁵		0.26	%		0.51	%		0.44	%		0.27	%		0.35	%
Supplemental data:
Net assets, end of period (000's)	$	107,274		$	124,415		$	129,417		$	127,751		$	132,941		$	179,875
Portfolio turnover rate		33	%		62	%		49	%		54	%		93	%		68	%

¹ Calculated using the average shares method.

144

UBS Global Allocation Fund

Financial highlights

	Class C
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	10.92		$	10.79		$	9.55		$	8.89		$	10.00		$	8.42
Income (loss) from investment operations:
Net investment income (loss)¹		(0.05	)		(0.09	)		(0.06	)		(0.06	)		(0.07	)		(0.07	)
Net realized and unrealized gain (loss)		(0.31	)		0.22			1.34			0.86			(0.71	)		1.99
Total income (loss) from investment operations		(0.36	)		0.13			1.28			0.80			(0.78	)		1.92
Less dividends/distributions:
From net investment income		(0.17	)		—			(0.04	)		(0.14	)		(0.33	)		(0.34	)
Net asset value, end of period	$	10.39		$	10.92		$	10.79		$	9.55		$	8.89		$	10.00
Total investment return²		(3.26	)%⁴		1.20	%		13.31	%		9.11	%		(7.66	)%		22.90	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.12	%⁵		2.10	%		2.08	%		2.06	%		2.02	%		1.99	%
Expenses after fee waivers and/or expense reimbursement		2.10	%⁵		2.10	%		2.08	%		2.06	%		2.02	%		1.99	%
Net investment income (loss)		(0.85	)%⁵		(0.79	)%		(0.59	)%		(0.65	)%		(0.80	)%		(0.73	)%
Supplemental data:
Net assets, end of period (000's)	$	128,911		$	145,277		$	174,078		$	195,427		$	238,054		$	348,721
Portfolio turnover rate		33	%		62	%		49	%		54	%		93	%		68	%

³ Amount represents less than $0.005 per share.

⁴ During the period ended December 31, 2015, the Advisor reimbursed the Fund $316,557 which was determined to be the value of the ineligible services paid for from the Fund's dealing commissions, which had no impact on the Fund's total return.

⁵ Annualized.

See accompanying notes to financial statements.
145

UBS Asset Growth Fund

Financial highlights

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

	Class A
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	9.23		$	9.34		$	7.90		$	7.08		$	8.36		$	6.32
Income (loss) from investment operations:
Net investment income (loss)¹		0.02			0.05			0.00³			(0.06	)		(0.06	)		(0.09	)
Net realized and unrealized gain (loss)		(1.21	)		(0.16	)		1.48			0.98			(0.84	)		2.38
Total income (loss) from investment operations		(1.19	)		(0.11	)		1.48			0.92			(0.90	)		2.29
Less dividends/distributions:
From net investment income		(0.03	)		—			(0.04	)		(0.10	)		(0.38	)		(0.25	)
Net asset value, end of period	$	8.01		$	9.23		$	9.34		$	7.90		$	7.08		$	8.36
Total investment return²		(12.84	)%		(1.18	)%		18.75	%		12.98	%		(10.38	)%		36.53	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.47	%³		2.28	%		2.19	%		1.90	%		1.73	%		1.64	%
Expenses after fee waivers and/or expense reimbursement		1.40	%³		1.40	%		1.40	%		1.40	%		1.40	%		1.40	%
Net investment income (loss)		0.36	%³		0.52	%		0.05	%		(0.73	)%		(0.78	)%		(1.14	)%
Supplemental data:
Net assets, end of period (000's)	$	10,990		$	13,370		$	22,948		$	25,047		$	31,337		$	50,167
Portfolio turnover rate		101	%		84	%		112	%		49	%		109	%		33	%

	Class P
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	9.25		$	9.34		$	7.90		$	7.09		$	8.36		$	6.32
Income (loss) from investment operations:
Net investment income (loss)¹		0.03			0.06			0.03			(0.04	)		(0.04	)		(0.07	)
Net realized and unrealized gain (loss)		(1.21	)		(0.15	)		1.47			0.97			(0.83	)		2.38
Total income (loss) from investment operations		(1.18	)		(0.09	)		1.50			0.93			(0.87	)		2.31
Less dividends/distributions:
From net investment income		(0.06	)		—			(0.06	)		(0.12	)		(0.40	)		(0.27	)
Net asset value, end of period	$	8.01		$	9.25		$	9.34		$	7.90		$	7.09		$	8.36
Total investment return²		(12.83	)%		(0.96	)%		19.12	%		13.21	%		(10.07	)%		36.66	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.21	%³		2.05	%		1.94	%		1.67	%		1.51	%		1.43	%
Expenses after fee waivers and/or expense reimbursement		1.15	%³		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Net investment income (loss)		0.61	%³		0.61	%		0.30	%		(0.48	)%		(0.54	)%		(0.87	)%
Supplemental data:
Net assets, end of period (000's)	$	4,770		$	5,709		$	1,757		$	1,835		$	1,949		$	1,395
Portfolio turnover rate		101	%		84	%		112	%		49	%		109	%		33	%

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 less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.

³ Annualized.

146

UBS Asset Growth Fund

Financial highlights

	Class C
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	9.11		$	9.29		$	7.88		$	7.05		$	8.34		$	6.31
Income (loss) from investment operations:
Net investment income (loss)¹		(0.02	)		(0.03	)		(0.06	)		(0.11	)		(0.11	)		(0.15	)
Net realized and unrealized gain (loss)		(1.18	)		(0.15	)		1.47			0.97			(0.83	)		2.37
Total income (loss) from investment operations		(1.20	)		(0.18	)		1.41			0.86			(0.94	)		2.22
Less dividends/distributions:
From net investment income		—			—			—			(0.03	)		(0.35	)		(0.19	)
Net asset value, end of period	$	7.91		$	9.11		$	9.29		$	7.88		$	7.05		$	8.34
Total investment return²		(13.17	)%		(1.94	)%		17.89	%		12.15	%		(11.00	)%		35.39	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		3.23	%³		3.06	%		2.96	%		2.67	%		2.51	%		2.41	%
Expenses after fee waivers and/or expense reimbursement		2.15	%³		2.15	%		2.15	%		2.15	%		2.15	%		2.15	%
Net investment income (loss)		(0.39	)%³		(0.27	)%		(0.72	)%		(1.48	)%		(1.53	)%		(1.89	)%
Supplemental data:
Net assets, end of period (000's)	$	5,531		$	6,515		$	7,564		$	8,640		$	9,931		$	14,989
Portfolio turnover rate		101	%		84	%		112	%		49	%		109	%		33	%

See accompanying notes to financial statements.
147

UBS International Sustainable Equity Fund

Financial highlights

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

	Class A
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	9.47		$	8.95		$	7.55		$	6.75		$	8.21		$	6.62
Income (loss) from investment operations:
Net investment income (loss)¹		0.02			0.10			0.08			0.11			0.08			0.07
Net realized and unrealized gain (loss)		(0.86	)		0.53			1.51			0.93			(1.40	)		1.78
Total income (loss) from investment operations		(0.84	)		0.63			1.59			1.04			(1.32	)		1.85
Less dividends/distributions:
From net investment income		(0.09	)		(0.11	)		(0.19	)		(0.24	)		(0.14	)		(0.26	)
Net asset value, end of period	$	8.54		$	9.47		$	8.95		$	7.55		$	6.75		$	8.21
Total investment return²		(8.84	)%³		7.14	%		21.32	%		15.49	%		(15.99	)%		28.14	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.29	%⁴		2.47	%		2.74	%		2.65	%		2.28	%		2.04	%
Expenses after fee waivers and/or expense reimbursement		1.25	%⁴		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%
Net investment income		0.38	%⁴		1.09	%		0.91	%		1.49	%		1.20	%		0.93	%
Supplemental data:
Net assets, end of period (000's)	$	6,840		$	6,371		$	7,541		$	5,433		$	5,576		$	9,207
Portfolio turnover rate		85	%		42	%		137	%		41	%		49	%		76	%

	Class P
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	9.50		$	8.99		$	7.58		$	6.77		$	8.25		$	6.65
Income (loss) from investment operations:
Net investment income¹		0.03			0.13			0.09			0.13			0.11			0.09
Net realized and unrealized gain (loss)		(0.86	)		0.51			1.53			0.94			(1.43	)		1.79
Total income (loss) from investment operations		(0.83	)		0.64			1.62			1.07			(1.32	)		1.88
Less dividends/distributions:
From net investment income		(0.11	)		(0.13	)		(0.21	)		(0.26	)		(0.16	)		(0.28	)
Net asset value, end of period	$	8.56		$	9.50		$	8.99		$	7.58		$	6.77		$	8.25
Total investment return²		(8.71	)%³		7.32	%		21.65	%		15.95	%		(15.88	)%		28.46	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.04	%⁴		2.21	%		2.45	%		2.40	%		2.06	%		1.78	%
Expenses after fee waivers and/or expense reimbursement		1.00	%⁴		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Net investment income		0.62	%⁴		1.40	%		1.10	%		1.69	%		1.52	%		1.13	%
Supplemental data:
Net assets, end of period (000's)	$	16,919		$	17,103		$	12,462		$	11,740		$	12,966		$	17,829
Portfolio turnover rate		85	%		42	%		137	%		41	%		49	%		76	%

¹ Calculated using the average shares method.

148

UBS International Sustainable Equity Fund

Financial highlights

	Class C
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	9.26		$	8.80		$	7.43		$	6.63		$	8.02		$	6.47
Income (loss) from investment operations:
Net investment income (loss)¹		(0.02	)		0.04			0.03			0.05			0.03			0.03
Net realized and unrealized gain (loss)		(0.83	)		0.51			1.47			0.92			(1.36	)		1.72
Total income (loss) from investment operations		(0.85	)		0.55			1.50			0.97			(1.33	)		1.75
Less dividends/distributions:
From net investment income		(0.05	)		(0.09	)		(0.13	)		(0.17	)		(0.06	)		(0.20	)
Net asset value, end of period	$	8.36		$	9.26		$	8.80		$	7.43		$	6.63		$	8.02
Total investment return²		(9.18	)%³		6.36	%		20.32	%		14.72	%		(16.59	)%		27.14	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		3.06	%⁴		3.23	%		3.54	%		3.40	%		3.06	%		2.82	%
Expenses after fee waivers and/or expense reimbursement		2.00	%⁴		2.00	%		2.00	%		2.00	%		2.00	%		2.00	%
Net investment income		(0.38	)%⁴		0.46	%		0.37	%		0.65	%		0.45	%		0.32	%
Supplemental data:
Net assets, end of period (000's)	$	2,661		$	2,672		$	1,579		$	605		$	703		$	1,405
Portfolio turnover rate		85	%		42	%		137	%		41	%		49	%		76	%

³ During the period ended December 31, 2015, the Advisor reimbursed the Fund for a trading error in the amount of $5,471, which had no impact on the Fund's total return.

⁴ Annualized.

See accompanying notes to financial statements.
149

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
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	27.55		$	25.03		$	19.85		$	15.96		$	16.46		$	12.79
Income (loss) from investment operations:
Net investment income (loss)¹		0.06			0.14			0.11			0.11			0.10			0.09
Net realized and unrealized gain (loss)		(1.84	)		2.50			5.23			3.86			(0.51	)		3.65
Total income (loss) from investment operations		(1.78	)		2.64			5.34			3.97			(0.41	)		3.74
Less dividends/distributions:
From net investment income		(0.37	)		(0.12	)		(0.16	)		(0.08	)		(0.09	)		(0.07	)
Net asset value, end of period	$	25.40		$	27.55		$	25.03		$	19.85		$	15.96		$	16.46
Total investment return²		(6.50	)%		10.61	%		27.05	%		24.99	%		(2.47	)%		29.28	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement/recoupment		1.76	%³		1.56	%		1.29	%		1.28	%		1.24	%		1.19	%
Expenses after fee waivers and/or expense reimbursement/recoupment		1.20	%³		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%⁴
Net investment income(loss)		0.46	%³		0.53	%		0.47	%		0.63	%		0.64	%		0.57	%
Supplemental data:
Net assets, end of period (000's)	$	9,235		$	9,784		$	9,478		$	8,534		$	14,113		$	19,832
Portfolio turnover rate		28	%		59	%		55	%		58	%		65	%		60	%

	Class P
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	27.67		$	25.14		$	19.94		$	16.07		$	16.60		$	12.91
Income (loss) from investment operations:
Net investment income¹		0.10			0.20			0.16			0.15			0.14			0.13
Net realized and unrealized gain (loss)		(1.86	)		2.52			5.27			3.88			(0.52	)		3.68
Total income (loss) from investment operations		(1.76	)		2.72			5.43			4.03			(0.38	)		3.81
Less dividends/distributions:
From net investment income		(0.43	)		(0.19	)		(0.23	)		(0.16	)		(0.15	)		(0.12	)
Net asset value, end of period	$	25.48		$	27.67		$	25.14		$	19.94		$	16.07		$	16.60
Total investment return²		(6.39	)%		10.90	%		27.38	%		25.28	%		(2.23	)%		29.57	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement/recoupment		1.47	%³		1.07	%		0.99	%		0.98	%		0.97	%		0.94	%
Expenses after fee waivers and/or expense reimbursement/recoupment		0.95	%³		0.95	%		0.95	%		0.95	%		0.95	%		0.95	%⁴
Net investment income		0.71	%³		0.77	%		0.71	%		0.87	%		0.90	%		0.82	%
Supplemental data:
Net assets, end of period (000's)	$	27,608		$	28,345		$	126,735		$	146,145		$	185,910		$	206,555
Portfolio turnover rate		28	%		59	%		55	%		58	%		65	%		60	%

¹ Calculated using the average shares method.

150

UBS U.S. Large Cap Equity Fund

Financial highlights

	Class C
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	26.34		$	23.99		$	19.06		$	15.36		$	15.88		$	12.37
Income (loss) from investment operations:
Net investment income (loss)¹		(0.04	)		(0.05	)		(0.06	)		(0.02	)		(0.02	)		(0.03	)
Net realized and unrealized gain (loss)		(1.76	)		2.40			5.03			3.72			(0.50	)		3.54
Total income (loss) from investment operations		(1.80	)		2.35			4.97			3.70			(0.52	)		3.51
Less dividends/distributions:
From net investment income		(0.14	)		—			(0.04	)		—			—			—
Net asset value, end of period	$	24.40		$	26.34		$	23.99		$	19.06		$	15.36		$	15.88
Total investment return²		(6.86	)%		9.80	%		26.09	%		24.09	%		(3.28	)%		28.38	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement/recoupment		2.54	%³		2.31	%		2.08	%		2.04	%		2.02	%		2.00	%
Expenses after fee waivers and/or expense reimbursement/recoupment		1.95	%³		1.95	%		1.95	%		1.95	%		1.95	%		1.95	%
Net investment income(loss)		(0.30	)%³		(0.22	)%		(0.27	)%		(0.11	)%		(0.11	)%		(0.18	)%
Supplemental data:
Net assets, end of period (000's)	$	2,192		$	2,643		$	3,299		$	2,617		$	2,873		$	3,467
Portfolio turnover rate		28	%		59	%		55	%		58	%		65	%		60	%

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.
151

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, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	23.60		$	24.76		$	20.10		$	16.19		$	16.00		$	10.60
Income (loss) from investment operations:
Net investment loss¹		(0.07	)		(0.16	)		(0.21	)		(0.11	)		(0.14	)		(0.13	)
Net realized and unrealized gain (loss)		(2.73	)		3.38			5.40			4.02			0.33			5.53
Total income (loss) from investment operations		(2.80	)		3.22			5.19			3.91			0.19			5.40
Less dividends/distributions:
From net realized gains		(1.83	)		(4.38	)		(0.53	)		—			—			—
Net asset value, end of period	$	18.97		$	23.60		$	24.76		$	20.10		$	16.19		$	16.00
Total investment return²		(11.92	)%		15.61	%		26.42	%		23.78	%		1.19	%		50.94	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.49	%³		1.51	%		1.45	%		1.55	%		1.57	%		1.54	%
Expenses after fee waivers and/or expense reimbursement		1.24	%³		1.35	%		1.40	%		1.40	%		1.40	%		1.40	%
Net investment loss		(0.67	)%³		(0.69	)%		(0.92	)%		(0.64	)%		(0.93	)%		(0.95	)%
Supplemental data:
Net assets, end of period (000's)	$	38,065		$	46,813		$	42,552		$	32,848		$	31,015		$	38,319
Portfolio turnover rate		58	%		64	%		57	%		42	%		48	%		55	%

	Class P
	Six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	25.11		$	26.00		$	21.01		$	16.88		$	16.64		$	11.00
Income (loss) from investment operations:
Net investment loss¹		(0.05	)		(0.11	)		(0.15	)		(0.08	)		(0.11	)		(0.10	)
Net realized and unrealized gain (loss)		(2.91	)		3.60			5.67			4.21			0.35			5.74
Total income (loss) from investment operations		(2.96	)		3.49			5.52			4.13			0.24			5.64
Less dividends/distributions:
From net realized gains		(1.83	)		(4.38	)		(0.53	)		—			—			—
Net asset value, end of period	$	20.32		$	25.11		$	26.00		$	21.01		$	16.88		$	16.64
Total investment return²		(11.84	)%		15.93	%		26.79	%		24.17	%		1.44	%		51.27	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement/recoupment		1.12	%³		1.10	%		1.09	%		1.13	%		1.15	%		1.13	%
Expenses after fee waivers and/or expense reimbursement/recoupment		0.99	%³		1.07	%		1.09	%		1.15	%⁴		1.15	%⁴		1.15	%⁴
Net investment loss		(0.41	)%³		(0.43	)%		(0.61	)%		(0.41	)%		(0.68	)%		(0.70	)%
Supplemental data:
Net assets, end of period (000's)	$	161,090		$	178,495		$	226,376		$	172,436		$	107,447		$	112,186
Portfolio turnover rate		58	%		64	%		57	%		42	%		48	%		55	%

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 have not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.

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.

152

UBS U.S. Small Cap Growth Fund

Financial highlights

	Class C
	Six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	20.60		$	22.32		$	18.29		$	14.85		$	14.78		$	9.87
Income (loss) from investment operations:
Net investment loss¹		(0.13	)		(0.29	)		(0.35	)		(0.22	)		(0.23	)		(0.22	)
Net realized and unrealized gain (loss)		(2.38	)		2.95			4.91			3.66			0.30			5.13
Total income (loss) from investment operations		(2.51	)		2.66			4.56			3.44			0.07			4.91
Less dividends/distributions:
From net realized gains		(1.83	)		(4.38	)		(0.53	)		—			—			—
Net asset value, end of period	$	16.26		$	20.60		$	22.32		$	18.29		$	14.85		$	14.78
Total investment return²		(12.25	)%		14.71	%		25.51	%		22.83	%		0.47	%		49.75	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.21	%³		2.24	%		2.24	%		2.32	%		2.35	%		2.37	%
Expenses after fee waivers and/or expense reimbursement		1.99	%³		2.10	%		2.15	%		2.15	%		2.15	%		2.15	%
Net investment loss		(1.42	)%³		(1.44	)%		(1.67	)%		(1.39	)%		(1.68	)%		(1.70	)%
Supplemental data:
Net assets, end of period (000's)	$	5,169		$	5,398		$	3,687		$	2,937		$	2,442		$	2,961
Portfolio turnover rate		58	%		64	%		57	%		42	%		48	%		55	%

See accompanying notes to financial statements.
153

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
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	10.45		$	9.65		$	7.81		$	6.31		$	6.74		$	5.33
Income (loss) from investment operations:
Net investment income/(loss)¹		0.02			0.01			0.01			0.03			0.05			0.06
Net realized and unrealized gain (loss)		(0.69	)		0.79			1.86			1.53			(0.42	)		1.41
Total income (loss) from investment operations		(0.67	)		0.80			1.87			1.56			(0.37	)		1.47
Less dividends/distributions:
From net investment income		0.00³			0.00³			(0.03	)		(0.06	)		(0.06	)		(0.06	)
Net asset value, end of period	$	9.78		$	10.45		$	9.65		$	7.81		$	6.31		$	6.74
Total investment return²		(6.40	)%		8.33	%		24.01	%		24.92	%		(5.33	)%		27.57	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.72	%⁴		1.72	%		1.72	%		1.83	%		1.89	%		1.61	%
Expenses after fee waivers and/or expense reimbursement		1.20	%⁴		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%
Net investment income		0.47	%⁴		0.14	%		0.11	%		0.45	%		0.87	%		0.88	%
Supplemental data:
Net assets, end of period (000's)	$	34,723		$	38,657		$	39,483		$	36,269		$	35,538		$	43,766
Portfolio turnover rate		60	%		48	%		62	%		89	%		138	%		85	%

	Class P
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	10.52		$	9.71		$	7.86		$	6.35		$	6.79		$	5.36
Income (loss) from investment operations:
Net investment income¹		0.04			0.04			0.03			0.05			0.07			0.07
Net realized and unrealized gain (loss)		(0.70	)		0.80			1.87			1.54			(0.43	)		1.43
Total income (loss) from investment operations		(0.66	)		0.84			1.90			1.59			(0.36	)		1.50
Less dividends/distributions:
From net investment income		(0.03	)		(0.03	)		(0.05	)		(0.08	)		(0.08	)		(0.07	)
Net asset value, end of period	$	9.83		$	10.52		$	9.71		$	7.86		$	6.35		$	6.79
Total investment return²		(6.29	)%		8.65	%		24.28	%		25.27	%		(5.14	)%		28.13	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.52	%⁴		1.52	%		1.52	%		1.67	%		1.73	%		1.48	%
Expenses after fee waivers and/or expense reimbursement		0.95	%⁴		0.95	%		0.95	%		0.95	%		0.95	%		0.95	%
Net investment income		0.72	%⁴		0.39	%		0.36	%		0.70	%		1.12	%		1.13	%
Supplemental data:
Net assets, end of period (000's)	$	1,990		$	2,154		$	1,620		$	1,304		$	1,444		$	1,576
Portfolio turnover rate		60	%		48	%		62	%		89	%		138	%		85	%

¹ Calculated using the average shares method.

154

UBS U.S. Equity Opportunity Fund

Financial highlights

	Class C
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	10.13		$	9.42		$	7.65		$	6.18		$	6.59		$	5.20
Income (loss) from investment operations:
Net investment income/(loss)¹		(0.01	)		(0.06	)		(0.05	)		(0.02	)		0.01			0.01
Net realized and unrealized gain (loss)		(0.68	)		0.77			1.82			1.50			(0.41	)		1.39
Total income (loss) from investment operations		(0.69	)		0.71			1.77			1.48			(0.40	)		1.40
Less dividends/distributions:
From net investment income		—			—			—			(0.01	)		(0.01	)		(0.01	)
Net asset value, end of period	$	9.44		$	10.13		$	9.42		$	7.65		$	6.18		$	6.59
Total investment return²		(6.81	)%		7.54	%		23.14	%		23.88	%		(6.07	)%		26.87	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.51	%⁴		2.50	%		2.50	%		2.62	%		2.67	%		2.40	%
Expenses after fee waivers and/or expense reimbursement		1.95	%⁴		1.95	%		1.95	%		1.95	%		1.95	%		1.95	%
Net investment income		(0.28	)%⁴		(0.62	)%		(0.64	)%		(0.30	)%		0.12	%		0.13	%
Supplemental data:
Net assets, end of period (000's)	$	3,636		$	4,132		$	4,599		$	4,026		$	3,978		$	4,992
Portfolio turnover rate		60	%		48	%		62	%		89	%		138	%		85	%

³ Amount represents less than $0.005 per share.

⁴ Annualized.

See accompanying notes to financial statements.
155

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
	For the six months ended December 31, 2015			Year ended June 30,												For the period ended
	(unaudited)			2015			2014			2013			2012			June 30, 2011³
Net asset value, beginning of period	$	9.32		$	9.60		$	9.78		$	9.66		$	9.93		$	10.00
Income (loss) from investment operations:
Net investment income¹		0.13			0.28			0.27			0.28			0.37			0.21
Net realized and unrealized gain (loss)		(0.53	)		(0.37	)		(0.39	)		0.13			(0.05	)		(0.15	)
Total income (loss) from investment operations		(0.40	)		(0.09	)		(0.12	)		0.41			0.32			0.06
Redemption fees		0.00⁴			0.00⁴			0.00⁴			0.00⁴			0.00⁴			0.02
Less dividends/distributions:
From net investment income		(0.03	)		(0.19	)		—			(0.22	)		(0.34	)		(0.05	)
Return of capital		—			—			(0.06	)		(0.07	)		—			(0.10	)
From net realized gains		—			—			—			—			(0.25	)		—
Total dividends/distributions		(0.03	)		(0.19	)		(0.06	)		(0.29	)		(0.59	)		(0.15	)
Net asset value, end of period	$	8.89		$	9.32		$	9.60		$	9.78		$	9.66		$	9.93
Total investment return²		(4.33	)%		(0.91	)%		(1.14	)%		4.15	%		3.33	%		0.76	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.15	%⁵		1.84	%		1.43	%		1.42	%		1.42	%		1.39	%⁵
Expenses after fee waivers and/or expense reimbursement		0.95	%⁵		0.95	%		0.95	%		0.95	%		0.95	%		0.95	%⁵
Net investment income		2.96	%⁵		2.91	%		2.75	%		2.84	%		3.80	%		3.53	%⁵
Supplemental data:
Net assets, end of period (000's)	$	4,657		$	5,756		$	40,366		$	47,140		$	37,935		$	67,314
Portfolio turnover rate		69	%		19	%		38	%		60	%		63	%		48	%

	Class P
	For the six months ended December 31, 2015			Year ended June 30,											For the period ended
	(unaudited)			2015			2014			2013		2012			June 30, 2011³
Net asset value, beginning of period	$	9.32		$	9.61		$	9.79		$	9.67	$	9.94		$	10.00
Income (loss) from investment operations:
Net investment income¹		0.15			0.30			0.29			0.30		0.40			0.23
Net realized and unrealized gain (loss)		(0.54	)		(0.37	)		(0.39	)		0.13		(0.05	)		(0.13	)
Total income (loss) from investment operations		(0.39	)		(0.07	)		(0.10	)		0.43		0.35			0.10
Redemption fees		0.00⁴			0.00⁴			0.00⁴			0.00⁴		0.00⁴			—
Less dividends/distributions:

From net investment income	(0.04	)	(0.22	)	—		(0.24	)	(0.37	)	(0.06	)
Return of capital	—		—		(0.08	)	(0.07	)	—		(0.10	)
From net realized gains	—		—		—		—		(0.25	)	—

Total dividends/distributions		(0.04	)		(0.22	)		(0.08	)		(0.31	)		(0.62	)		(0.16	)
Net asset value, end of period	$	8.89		$	9.32		$	9.61		$	9.79		$	9.67		$	9.94
Total investment return²		(4.21	)%		(0.68	)%		(0.99	)%		4.50	%		3.60	%		0.97	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.90	%⁵		1.64	%		1.14	%		1.13	%		1.14	%		1.29	%⁵
Expenses after fee waivers and/or expense reimbursement		0.70	%⁵		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%⁵
Net investment income		3.21	%⁵		3.18	%		2.99	%		3.06	%		4.06	%		3.91	%⁵
Supplemental data:
Net assets, end of period (000's)	$	18,976		$	24,156		$	21,139		$	36,112		$	26,145		$	25,523
Portfolio turnover rate		69	%		19	%		38	%		60	%		63	%		48	%

¹ Calculated using the average shares method.

156

UBS Fixed Income Opportunities Fund

Financial highlights

	Class C
	For the six months ended December 31, 2015			Year ended June 30,												For the period ended
	(unaudited)			2015			2014			2013			2012			June 30, 2011³
Net asset value, beginning of period	$	9.31		$	9.59		$	9.76		$	9.65		$	9.92		$	10.00
Income (loss) from investment operations:
Net investment income¹		0.11			0.23			0.22			0.23			0.32			0.18
Net realized and unrealized gain (loss)		(0.54	)		(0.36	)		(0.38	)		0.12			(0.05	)		(0.14	)
Total income (loss) from investment operations		(0.43	)		(0.13	)		(0.16	)		0.35			0.27			0.04
Redemption fees		0.00⁴			0.00⁴			0.00⁴			0.00⁴			0.00⁴			0.00⁴
Less dividends/distributions:
From net investment income		0.00⁴			(0.15	)		—			(0.17	)		(0.29	)		(0.02	)
Return of capital		—			—			(0.01	)		(0.07	)		—			(0.10	)
From net realized gains		—			—			—			—			(0.25	)		—
Total dividends/distributions		0.00⁴			(0.15	)		(0.01	)		(0.24	)		(0.54	)		(0.12	)
Net asset value, end of period	$	8.88		$	9.31		$	9.59		$	9.76		$	9.65		$	9.92
Total investment return²		(4.48	)%		(1.48	)%		(1.65	)%		3.65	%		2.82	%		0.43	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.67	%⁵		2.42	%		1.93	%		1.92	%		1.93	%		1.94	%⁵
Expenses after fee waivers and/or expense reimbursement		1.45	%⁵		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%⁵
Net investment income		2.46	%⁵		2.42	%		2.24	%		2.34	%		3.31	%		3.06	%⁵
Supplemental data:
Net assets, end of period (000's)	$	2,856		$	3,568		$	6,855		$	8,808		$	6,519		$	8,116
Portfolio turnover rate		69	%		19	%		38	%		60	%		63	%		48	%

less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.

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.
157

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
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	9.05		$	9.18		$	8.91		$	9.13		$	8.70		$	8.69
Income (loss) from investment operations:
Net investment income¹		0.08			0.15			0.17			0.16			0.20			0.24
Net realized and unrealized gain (loss)		(0.07	)		0.01			0.33			(0.15	)		0.46			0.18
Total income from investment operations		0.01			0.16			0.50			0.01			0.66			0.42
Redemption fees		0.00³			0.00³			0.00³			0.00³			0.00³			0.00³
Less dividends/distributions:
From net investment income		(0.13	)		(0.29	)		(0.23	)		(0.23	)		(0.23	)		(0.41	)
Net asset value, end of period	$	8.93		$	9.05		$	9.18		$	8.91		$	9.13		$	8.70
Total investment return²		0.05	%		1.69	%		5.68	%		0.06	%		7.64	%		5.00	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.59	%⁴		1.73	%		1.69	%		1.58	%		1.45	%		1.45	%
Expenses after fee waivers and/or expense reimbursement		0.64	%⁴		0.64	%		0.64	%		0.64	%		0.64	%		0.64	%
Net investment income		1.70	%⁴		1.60	%		1.89	%		1.77	%		2.18	%		2.76	%
Supplemental data:
Net assets, end of period (000's)	$	5,017		$	2,205		$	3,226		$	6,951		$	7,606		$	5,996
Portfolio turnover rate		430	%		744	%		506	%		374	%		509	%		400	%

	Class P
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	9.03		$	9.17		$	8.89		$	9.11		$	8.69		$	8.68
Income (loss) from investment operations:
Net investment income¹		0.09			0.17			0.19			0.19			0.22			0.26
Net realized and unrealized gain (loss)		(0.06	)		0.00³			0.34			(0.16	)		0.45			0.19
Total income from investment operations		0.03			0.17			0.53			0.03			0.67			0.45
Redemption fees		0.00³			0.00³			0.00³			0.00³			0.00³			0.00³
Less dividends/distributions:
From net investment income		(0.14	)		(0.31	)		(0.25	)		(0.25	)		(0.25	)		(0.44	)
Net asset value, end of period	$	8.92		$	9.03		$	9.17		$	8.89		$	9.11		$	8.69
Total investment return²		0.16	%		1.84	%		6.08	%		0.31	%		7.80	%		5.26	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.37	%⁴		1.43	%		1.38	%		1.20	%		1.12	%		1.12	%
Expenses after fee waivers and/or expense reimbursement		0.39	%⁴		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Net investment income		1.95	%⁴		1.83	%		2.13	%		2.04	%		2.44	%		3.02	%
Supplemental data:
Net assets, end of period (000's)	$	28,234		$	28,541		$	25,431		$	26,425		$	33,501		$	31,047
Portfolio turnover rate		430	%		744	%		506	%		374	%		509	%		400	%

¹ Calculated using the average shares method.

158

UBS Core Plus Bond Fund

Financial highlights

	Class C
	For the six months ended December 31, 2015			Year ended June 30,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	9.02		$	9.15		$	8.88		$	9.10		$	8.68		$	8.66
Income (loss) from investment operations:
Net investment income¹		0.05			0.10			0.12			0.12			0.15			0.20
Net realized and unrealized gain (loss)		(0.07	)		0.01			0.33			(0.16	)		0.45			0.19
Total income from investment operations		(0.02	)		0.11			0.45			(0.04	)		0.60			0.39
Redemption fees		0.00³			0.00³			0.00³			0.00³			0.00³			0.00³
Less dividends/distributions:
From net investment income		(0.10	)		(0.24	)		(0.18	)		(0.18	)		(0.18	)		(0.37	)
Net asset value, end of period	$	8.90		$	9.02		$	9.15		$	8.88		$	9.10		$	8.68
Total investment return²		(0.21	)%		1.19	%		5.30	%		(0.55	)%		7.01	%		4.60	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		2.34	%⁴		2.36	%		2.28	%		2.02	%		1.91	%		1.92	%
Expenses after fee waivers and/or expense reimbursement		1.14	%⁴		1.14	%		1.14	%		1.14	%		1.14	%		1.14	%
Net investment income		1.20	%⁴		1.09	%		1.38	%		1.29	%		1.70	%		2.27	%
Supplemental data:
Net assets, end of period (000's)	$	1,212		$	1,268		$	1,435		$	1,724		$	2,187		$	2,175
Portfolio turnover rate		430	%		744	%		506	%		374	%		509	%		400	%

less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.

³ Amount represents less than $0.005 per share.

⁴ Annualized.

See accompanying notes to financial statements.
159

UBS Municipal Bond 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
	For the six months ended December 31, 2015 (unaudited)			For the period ended June 30, 2015³			For the six months ended December 31, 2015 (unaudited)			For the period ended June 30, 2015³
Net asset value, beginning of period	$	9.94		$	10.00		$	9.94		$	10.00
Income (loss) from investment operations:
Net investment income¹		0.08			0.09			0.06			0.06
Net realized and unrealized gain (loss)		0.27			(0.06	)		0.25			(0.06	)
Total income from investment operations		0.35			0.03			0.31			0.00⁴
Less dividends/distributions:
From net investment income		(0.10	)		(0.09	)		(0.07	)		(0.06	)
Net asset value, end of period	$	10.19		$	9.94		$	10.18		$	9.94
Total investment return²		3.53	%		0.30	%		3.17	%		0.03	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.28	%⁵		1.46	%⁵		1.80	%⁵		1.98	%⁵
Expenses after fee waivers and/or expense reimbursement		0.65	%⁵		0.65	%⁵		1.15	%⁵		1.14	%⁵
Net investment income		1.67	%⁵		1.43	%⁵		1.17	%⁵		0.94	%⁵
Supplemental data:
Net assets, end of period (000's)	$	13,160		$	10,929		$	4,137		$	2,948
Portfolio turnover rate		58	%		72	%		58	%		72	%

	Class P
	For the six months ended December 31, 2015 (unaudited)			For the period ended June 30, 2015³
Net asset value, beginning of period	$	9.94		$	10.00
Income (loss) from investment operations:
Net investment income¹		0.10			0.10
Net realized and unrealized gain (loss)		0.25			(0.05	)
Total income from investment operations		0.35			0.05
Less dividends/distributions:
From net investment income		(0.11	)		(0.11	)
Net asset value, end of period	$	10.18		$	9.94
Total investment return²		3.56	%		0.45	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursement		1.04	%⁵		1.23	%⁵
Expenses after fee waivers and/or expense reimbursement		0.40	%⁵		0.40	%⁵
Net investment income		1.91	%⁵		1.63	%⁵
Supplemental data:
Net assets, end of period (000's)	$	50,734		$	46,993
Portfolio turnover rate		58	%		72	%

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 could pay on Fund distributions or the redemption of Fund shares.

³ For the period November 10, 2014 (commencement of operations) through June 30, 2015.

⁴ Amount represents less than $0.005 per share.

⁵ Annualized.

See accompanying notes to financial statements.
160

The UBS Funds

Notes to financial statements

1. Organization and significant accounting policies

The UBS Funds (the "Trust") is registered with the US 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 10 Funds available for investment, each having its own investment objectives and policies: UBS Dynamic Alpha Fund, UBS Global Allocation Fund, UBS Asset Growth Fund, UBS International Sustainable Equity Fund (formerly, UBS Global Sustainable Equity Fund), UBS U.S. Large Cap Equity Fund, UBS U.S. Small Cap Growth Fund, UBS U.S. Equity Opportunity Fund, UBS Fixed Income Opportunities Fund, UBS Core Plus Bond Fund and UBS Municipal Bond Fund (each a "Fund", and collectively, the "Funds").

Each of the Funds is classified as a "diversified" investment company with the exception of UBS Dynamic Alpha Fund and UBS Municipal Bond Fund which are classified as "non-diversified" for purposes of the 1940 Act. The Funds currently offer Class A, Class C and Class P 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 distribution and service charges and certain transfer agency and related services expenses. All classes of shares have equal voting privileges except that each class has exclusive voting rights with respect to its distribution and/or service plan, if any. Class P shares have no distribution or service plan.

In the normal course of business, the Funds may enter into contracts that contain a variety of representations that provide 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.

Under certain circumstances, shareholders of the Funds may receive payment for redemptions in securities rather than in cash.

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 ("US 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 US GAAP for SEC registrants. The Funds' financial statements are prepared in accordance with US 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:

A. Valuation of investments: Each Fund generally calculates its net asset value on days that the New York Stock Exchange ("NYSE") is open. A Fund calculates net asset value separately for each class as of the close of regular trading on the NYSE (generally, 4:00 p.m., Eastern time). The NYSE normally is not open, and the Funds do not price their shares, on most national holidays and Good Friday. To the extent that a Fund's assets are traded in other markets on days when the NYSE is not open, the value of a Fund's assets may be affected on those days. If trading on the NYSE is halted for the day before 4:00 p.m., Eastern time, a Fund's net asset value per share generally will still be calculated as of the close of regular trading on the NYSE. The time at which a Fund calculates its net asset value and until which purchase, sale or exchange orders are accepted may be changed as permitted by the SEC.

161

The UBS Funds

Notes to financial statements

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 investments 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 investments. 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 investments. Investments also may be valued based on appraisals derived from information concerning the investment or similar investments received from recognized dealers in those holdings. Investments 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. Investments 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. Investments listed on foreign stock exchanges may be fair valued based on significant events that have occurred subsequent to the close of the foreign markets. In cases where investments are traded on more than one exchange, the investments are valued on the exchange designated as the primary market by UBS Asset Management (Americas) Inc. (formerly, UBS Global Asset Management (Americas), Inc.) ("UBS AM" or the "Advisor"), the investment advisor of the Funds. UBS AM is an indirect asset management subsidiary of UBS Group AG. UBS Group AG is an internationally diversified organization with headquarters in Zurich, Switzerland. UBS Group AG operates in many areas of the financial services industry. If a market value is not readily available from an independent pricing source for a particular investment, that investment 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 an investment'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 investment; and the evaluation of forces which influence the market in which the investment is purchased and sold. Foreign currency exchange rates are generally determined as of the close of the NYSE.

Certain investments 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 a 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 investments, the Fund may adjust the previous closing prices to reflect what is believed to be the fair value of these investments 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 investments 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 an investment is valued at "fair value," that value is likely to be different from the last quoted market price for the investment. 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. Transfers between Level 1 and Level 2, if any, are disclosed near the end of each Fund's Portfolio of investments.

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 are 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.

162

The UBS Funds

Notes to financial statements

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.

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.

The Board has delegated to the UBS AM Global Valuation Committee ("GVC") the responsibility for making fair value determinations with respect to the Funds' portfolio holdings. The GVC is comprised of representatives of management.

The GVC provides reports to the Board at each quarterly meeting regarding any investments that have been fair valued, valued pursuant to standing instructions approved by the GVC, or where non-vendor pricing sources had been used to make fair value determinations when sufficient information exists during the prior quarter. Fair valuation determinations are subject to review at least monthly by the GVC during scheduled meetings. Pricing decisions, processes, and controls over fair value determinations are subject to internal and external reviews, including annual internal compliance reviews and periodic internal audit reviews.

The types of investments for which such fair value pricing may be necessary include, but are not limited to: foreign investments under some circumstances, securities of an issuer that has entered into a restructuring; investments whose trading has been halted or suspended; fixed income securities that are in default and for which there is no current market value quotation; and investments that are restricted as to transfer or resale. The need to fair value a Fund's portfolio investments may also result from low trading volume in foreign markets or thinly traded domestic investments, and when a security that is subject to a trading limit or collar on the exchange or market on which it is primarily traded reaches the "limit up" or "limit down" price and no trading has taken place at that price. Various factors may be reviewed in order to make a good faith determination of an investment'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 investment; and the evaluation of forces which influence the market in which the investment is purchased and sold. Valuing investments at fair value involves greater reliance on judgment than valuing investments that have readily available market quotations. Fair value determinations can also involve reliance on quantitative models employed by a fair value pricing service.

US 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 May 2015, FASB issued Accounting Standards Update No. 2015-07, Fair Value Measurement (Topic 820): "Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)" ("ASU 2015-07"). The modification removes the requirement to categorize within the fair value hierarchy all investments

163

The UBS Funds

Notes to financial statements

for which fair value is measured using the NAV per share practical expedient. ASU 2015-07 is effective for annual reporting periods beginning after December 15, 2015 and interim periods within those fiscal periods. Management is currently evaluating the implications of this change and their impact on the financial statements and 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. Swap agreements, forward foreign currency contracts, swaptions and options written entered into by a Fund 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, 2015 is reflected in the Statement of assets and liabilities. If the applicable credit-risk related contingent features were triggered as of December 31, 2015, the Fund would be required to post additional collateral or may be required to terminate the contracts and settle any amounts outstanding. Certain 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 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, 2015.

Disclosure of derivatives by underlying risk for each Fund as of and for the period ended December 31, 2015 is as follows:

Asset derivatives¹

	Interest rate risk		Equity risk		Credit risk		Foreign exchange risk		Total
UBS Dynamic Alpha Fund
Forward foreign currency contracts	$	—	$	—	$	—	$	1,063,711	$	1,063,711
Futures contracts		814,110		1,069,959		—		—		1,884,069
Options purchased		—		5,763,437		—		—		5,763,437
Swap agreements		5,990,939		—		12,474		—		6,003,413
Total value	$	6,805,049	$	6,833,396	$	12,474	$	1,063,711	$	14,714,630

164

The UBS Funds

Notes to financial statements

Liability derivatives²

	Interest rate risk			Equity risk			Credit risk			Foreign exchange risk			Total
UBS Dynamic Alpha Fund
Forward foreign currency contracts	$	—		$	—		$	—		$	(680,179	)	$	(680,179	)
Futures contracts		(10,273	)		(895,114	)		—			—			(905,387	)
Swap agreements		(4,754,905	)		—			(713,357	)		—			(5,468,262	)
Total value	$	(4,765,178	)	$	(895,114	)	$	(713,357	)	$	(680,179	)	$	(7,053,828	)

¹In the Statement of assets and liabilities, options purchased are shown within investments of unaffiliated issuers, at value, outstanding OTC swap agreements are shown within outstanding swap agreements, at value, while forward foreign currency contracts are shown within unrealized appreciation on forward foreign currency contracts. Futures contracts are reported in the table above using 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 Variation margin on futures contracts.

²In the Statement of assets and liabilities, outstanding swap agreements are shown within outstanding OTC swap agreements, at value, while forward foreign currency contracts are shown within unrealized depreciation on forward foreign currency contracts. Futures contracts are reported in the table above using 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 Variation margin on futures contracts.

Activities in derivative instruments during the period ended December 31, 2015, were as follows:

	Interest rate risk			Equity risk			Credit risk			Foreign exchange risk			Total
UBS Dynamic Alpha Fund
Net realized gain (loss)¹
Forward foreign currency contracts	$	—		$	—		$	—		$	5,995,233		$	5,995,233
Futures contracts		(1,223,719	)		(15,451,006	)		—			—			(16,674,725	)
Options purchased²		(5,029	)		(767,755	)		—			—			(772,784	)
Options written		—			(6,071,281	)		—			—			(6,071,281	)
Swap agreements		(964,794	)		—			20,000			—			(944,794	)
Total net realized gain (loss)	$	(2,193,542	)	$	(22,290,042	)	$	20,000		$	5,995,233		$	(18,468,351	)
Change in net unrealized appreciation/depreciation³
Forward foreign currency contracts	$	—		$	—		$	—		$	(667,172	)	$	(667,172	)
Futures contracts		632,968			1,931,719			—			—			2,564,687
Options purchased²		—			(1,789,559	)		—			—			(1,789,559	)
Options written		—			430,590			—			—			430,590
Swap agreements		883,702			—			(591,567	)		—			292,135
Total change in net unrealized appreciation/depreciation	$	1,516,670		$	572,750		$	(591,567	)	$	(667,172	)	$	830,681

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

² Statement of operations location: Realized and unrealized gain (loss) is included in net realized gain (loss) on investments and change in unrealized appreciation/depreciation on investments.

³ Statement of operations location: Change in net unrealized appreciation/depreciation on futures contracts, options written, swap agreements and forward foreign currency contracts, unless otherwise noted.

165

The UBS Funds

Notes to financial statements

Asset derivatives¹

	Interest rate risk		Equity risk		Credit risk		Foreign exchange risk		Total
UBS Global Allocation Fund
Forward foreign currency contracts	$	—	$	—	$	—	$	951,382	$	951,382
Futures contracts		351,739		1,459,193		—		—		1,810,932
Options purchased		—		1,585,611		—		—		1,585,611
Swap agreements		—		—		1,004,243		—		1,004,243
Total value	$	351,739	$	3,044,804	$	1,004,243	$	951,382	$	5,352,168

Liability derivatives²

	Interest rate risk			Equity risk			Foreign exchange risk			Total
UBS Global Allocation Fund
Forward foreign currency contracts	$	—		$	—		$	(333,550	)	$	(333,550	)
Futures contracts		(219,743	)		(1,617,539	)		—			(1,837,282	)
Total value	$	(219,743	)	$	(1,617,539	)	$	(333,550	)	$	(2,170,832	)

²In the Statement of assets and liabilities, forward foreign currency contracts are shown within unrealized depreciation on forward foreign currency contracts. Futures contracts are reported in the table above using 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 Variation margin on futures contracts.

Activities in derivative instruments during the period ended December 31, 2015, were as follows:

	Interest rate risk		Equity risk			Credit risk			Foreign exchange risk			Total
UBS Global Allocation Fund
Net realized gain (loss)¹
Forward foreign currency contracts	$	—	$	—		$	—		$	3,319,483		$	3,319,483
Futures contracts		396,575		(1,799,735	)		—			—			(1,403,160	)
Options purchased²		—		(3,498,754	)		—			—			(3,498,754	)
Swap agreements		—		—			460,070			(2,791	)		457,279
Total net realized gain (loss)	$	396,575	$	(5,298,489	)	$	460,070		$	3,316,692		$	(1,125,152	)
Change in net unrealized appreciation/depreciation³
Forward foreign currency contracts	$	—	$	—		$	—		$	(21,683	)	$	(21,683	)
Futures contracts		610,743		3,062,757			—			—			3,673,500
Options purchased²		—		98,898			—			—			98,898
Swap agreements		—		—			(467,168	)		—			(467,168	)
Total change in net unrealized appreciation/depreciation	$	610,743	$	3,161,655		$	(467,168	)	$	(21,683	)	$	3,283,547

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

² Statement of operations location: Realized and unrealized gain (loss) is included in net realized gain (loss) on investments and change in unrealized appreciation/depreciation on investments.

166

The UBS Funds

Notes to financial statements

³ Statement of operations location: Change in net unrealized appreciation/depreciation on futures contracts, swap agreements and forward foreign currency contracts, unless otherwise noted.

Asset derivatives¹

	Equity risk		Foreign exchange risk		Total
UBS Asset Growth Fund
Futures contracts	$	375,069	$	17,672	$	392,741

Liability derivatives²

	Equity risk			Foreign exchange risk			Total
UBS Asset Growth Fund
Futures contracts	$	(35,117	)	$	(38,984	)	$	(74,101	)

¹In the Statement of assets and liabilities, futures contracts are reported in the table above using 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 Variation margin on futures contracts.

²In the Statement of assets and liabilities, futures contracts are reported in the table above using 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 Variation margin on futures contracts.

Activities in derivative instruments during the period ended December 31, 2015, were as follows:

	Equity risk			Foreign exchange risk			Total
UBS Asset Growth Fund
Net realized gain (loss)¹
Futures contracts	$	(3,202,232	)	$	(69,175	)	$	(3,271,407	)
Total net realized loss	$	(3,202,232	)	$	(69,175	)	$	(3,271,407	)
Change in net unrealized appreciation/depreciation²
Futures contracts	$	619,021		$	(33,165	)	$	585,856
Total change in net unrealized appreciation/depreciation	$	619,021		$	(33,165	)	$	585,856

¹ Statement of operations location: Net realized gain (loss) on futures contracts, unless otherwise noted.

² Statement of operations location: Change in net unrealized appreciation/depreciation on futures contracts.

Asset derivatives¹

	Interest rate risk		Credit risk		Foreign exchange risk		Total
UBS Fixed Income Opportunities Fund
Forward foreign currency contracts	$	—	$	—	$	36,675	$	36,675
Futures contracts		15,820		—		—		15,820
Options purchased		427,632		41,014		17,116		485,762
Swap agreements		1,218,817		164,005		—		1,382,822
Total value	$	1,662,269	$	205,019	$	53,791	$	1,921,079

167

The UBS Funds

Notes to financial statements

Liability derivatives²

	Interest rate risk			Credit risk			Foreign exchange risk			Total
UBS Fixed Income Opportunities Fund
Forward foreign currency contracts	$	—		$	—		$	(57,385	)	$	(57,385	)
Futures contracts		(94,753	)		—			—			(94,753	)
Options written		(26,365	)		(51,566	)		(34,999	)		(112,930	)
Swap agreements		(1,771,316	)		(348,162	)		—			(2,119,478	)
Total value	$	(1,892,434	)	$	(399,728	)	$	(92,384	)	$	(2,384,546	)

¹In the Statement of assets and liabilities, options purchased are shown within investments of unaffiliated issuers, at value, outstanding OTC swap agreements are shown within outstanding swap agreements, at value, while forward foreign currency contracts are shown within unrealized appreciation on forward foreign currency contracts. Futures contracts are reported in the table above using cumulative appreciation of futures contracts and centrally cleared swaps are reported at value, as reported in the futures contracts and centrally cleared swap tables in the Portfolio of investments, but only the unpaid variation margin is reported within the Statement of assets and liabilities within Variation margin on futures contracts and Variation margin on centrally cleared swap agreements.

²In the Statement of assets and liabilities, options written and outstanding OTC swap agreements are shown within options written and outstanding swap agreements, at value, while forward foreign currency contracts are shown within unrealized depreciation on forward foreign currency contracts. Futures contracts are reported in the table above using cumulative depreciation of futures contracts and centrally cleared swaps are reported at value, as reported in the futures contracts and centrally cleared swap tables in the Portfolio of investments, but only the unpaid variation margin is reported within the statement of assets and liabilities within Variation margin on futures contracts and Variation margin on centrally cleared swap agreements.

Activities in derivative instruments during the period ended December 31, 2015, were as follows:

	Interest rate risk			Credit risk			Foreign exchange risk			Total
UBS Fixed Income Opportunities Fund
Net realized gain (loss)¹
Forward foreign currency contracts	$	—		$	—		$	43,673		$	43,673
Futures contracts		1,209,198			—			—			1,209,198
Options purchased²		(1,697,075	)		(28,415	)		(14,924	)		(1,740,414	)
Options written		212,545			76,229			4,228			293,002
Swap agreements		(1,201,304	)		(47,209	)		37,903			(1,210,610	)
Total net realized gain (loss)	$	(1,476,636	)	$	605		$	70,880		$	(1,405,151	)
Change in net unrealized appreciation/depreciation³
Forward foreign currency contracts	$	—		$	—		$	23,460		$	23,460
Futures contracts		(39,624	)		—			—			(39,624	)
Options purchased²		(64,832	)		(14,040	)		(12,484	)		(91,356	)
Options written		(77,309	)		27,673			13,035			(36,601	)
Swap agreements		531,671			171,936			(24,305	)		679,302
Total change in net unrealized appreciation/depreciation	$	349,906		$	185,569		$	(294	)	$	535,181

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

² Statement of operations location: Realized and unrealized gain (loss) is included in net realized gain (loss) on investments and change in unrealized appreciation/depreciation on investments.

168

The UBS Funds

Notes to financial statements

Asset derivatives¹

	Interest rate risk		Credit risk		Foreign exchange risk		Total
UBS Core Plus Bond Fund
Forward foreign currency contracts	$	—	$	—	$	17,271	$	17,271
Futures contracts		3,914		—		—		3,914
Options purchased		162		2,674		17,547		20,383
Swap agreements		7,741		23,874		—		31,615
Total value	$	11,817	$	26,548	$	34,818	$	73,183

Liability derivatives²

	Interest rate risk			Credit risk			Foreign exchange risk			Total
UBS Core Plus Bond Fund
Futures contracts	$	(13,485	)	$	—		$	—		$	(13,485	)
Options written		(23,238	)		(7,439	)		(31,100	)		(61,777	)
Swap agreements		—			(62,848	)		—			(62,848	)
Total value	$	(36,723	)	$	(70,287	)	$	(31,100	)	$	(138,110	)

¹In the Statement of assets and liabilities, options purchased are shown within investments of unaffiliated issuers, at value, outstanding OTC swap agreements are shown within outstanding swap agreements, at value, while forward foreign currency contracts are shown within unrealized appreciation on forward foreign currency contracts. Futures contracts are reported in the table above using cumulative appreciation of futures contracts and centrally cleared swaps are reported at value, as reported in the futures contracts and centrally cleared swap tables in the Portfolio of investments, but only the unpaid variation margin is reported within the Statement of assets and liabilities within Variation margin on futures contracts and Variation margin on centrally cleared swap agreements.

²In the Statement of assets and liabilities, options written and outstanding OTC swap agreements are shown within options written and outstanding swap agreements, at value. Futures contracts are reported in the table above using cumulative depreciation of futures contracts and centrally cleared swaps are reported at value, as reported in the futures contracts and centrally cleared swap tables in the Portfolio of investments, but only the unpaid variation margin is reported within the Statement of assets and liabilities within Variation margin on futures contracts and Variation margin on centrally cleared swap agreements.

Activities in derivative instruments during the period ended December 31, 2015, were as follows:

	Interest rate risk			Credit risk			Foreign exchange risk			Total
UBS Core Plus Bond Fund
Net realized gain (loss)¹
Forward foreign currency contracts	$	—		$	—		$	(5,351	)	$	(5,351	)
Futures contracts		23,473			—			—			23,473
Options purchased²		109			(12,424	)		28,339			16,024
Options written		—			25,162			13,902			39,064
Swap agreements		132,996			32,257			—			165,253
Total net realized gain	$	156,578		$	44,995		$	36,890		$	238,463
Change in net unrealized appreciation/depreciation³
Forward foreign currency contracts	$	—		$	—		$	4,617		$	4,617
Futures contracts		1,392			—			—			1,392
Options purchased²		(488	)		(3,607	)		(20,229	)		(24,324	)
Options written		4,224			9,567			932			14,723
Swap agreements		(132,788	)		(25,001	)		—			(157,789	)
Total change in net unrealized appreciation/depreciation	$	(127,660	)	$	(19,041	)	$	(14,680	)	$	(161,381	)

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

169

The UBS Funds

Notes to financial statements

² Statement of operations location: Realized and unrealized gain (loss) is included in net realized gain (loss) on investments and change in unrealized appreciation/depreciation on investments.

UBS Municipal Bond Fund had net realized loss of $18,391 on futures contracts related to interest rate risk and net change in unrealized depreciation of $93,722 on futures contracts related to interest rate risk.

The Funds typically enter into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreements") or similar master agreements (collectively, "Master Agreements") with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Funds typically may offset with the counterparty certain derivative financial instrument's payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination.

The provisions of ASC Topic 210 "Disclosures about Offsetting Assets and Liabilities" require disclosure on the offsetting of financial assets and liabilities. The offsetting disclosures are limited to derivatives, repurchase and reverse repurchase agreements, and security lending and borrowing transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement ("MNA") or similar agreement. Tables are not presented below for any funds which only hold derivatives which are not subject to offsetting under ASC Topic 210.

UBS Dynamic Alpha Fund

Derivative financial instruments:	Assets ($)			Liabilities ($)
Forward foreign currency contracts		1,063,711			(680,179	)
Futures contracts¹		1,884,069			(905,387	)
Options purchased		5,763,437			—
Swap agreements		6,003,413			(5,468,262	)
Total gross amount of derivative assets and liabilities in the Statement of assets and liabilities		14,714,630			(7,053,828	)
Derivatives not subject to a master netting agreement or similar agreement ("MNA")		(7,647,506	)		905,387
Total gross amount of assets and liabilities subject to MNA or similar agreements		7,067,124			(6,148,441	)

¹ Includes cumulative appreciation/depreciation of futures contracts as reported in the futures contracts table in the Portfolio of investments, but only the unpaid variation margin is reported with the Statement of assets and liabilities within Variation margin on futures contracts.

The following tables present the Fund's derivative assets and liabilities by counterparty net of amounts available for offset under a MNA and net of the related collateral received/pledged by the Fund as of December 31, 2015.

Counterparty	Gross amount of assets ($)		Financial instruments and derivatives available for offset ($)			Collateral received ($)		Net amount of assets ($)
BB		1,153		—			—		1,153
CIBC		585,186		(436,749	)		—		148,437
GSI		5,990,939		(135,258	)		—		5,855,681
JPMCB		355,773		(355,773	)		—		—
SSB		134,073		—			—		134,073
Total		7,067,124		(927,780	)		—		6,139,344

170

The UBS Funds

Notes to financial statements

Counterparty	Gross amount of liabilities ($)			Financial instruments and derivatives available for offset ($)		Collateral pledged ($)		Net amount of liabilities ($)
CIBC		(436,749	)		436,749		—		—
CITI		(87,585	)		—		—		(87,585	)
DB		(4,754,905	)		—		—		(4,754,905	)
GSI		(135,258	)		135,258		—		—
JPMCB		(733,944	)		355,773		—		(378,171	)
Total		(6,148,441	)		927,780		—		(5,220,661	)

UBS Global Allocation Fund

Derivative financial instruments:	Assets ($)			Liabilities ($)
Forward foreign currency contracts		951,382			(333,550	)
Futures contracts¹		1,810,932			(1,837,282	)
Options purchased		1,585,611			—
Swap agreements¹		1,004,243			—
Total gross amount of derivative assets and liabilities in the Statement of assets and liabilities		5,352,168			(2,170,832	)
Derivatives not subject to a master netting agreement or similar agreement ("MNA")		(4,400,786	)		1,837,282
Total gross amount of assets and liabilities subject to MNA or similar agreements		951,382			(333,550	)

¹ Includes cumulative appreciation/depreciation of futures contracts and centrally cleared swaps as reported in the futures contracts and centrally cleared swaps tables in the Portfolio of investments, but only the unpaid variation margin is reported with the Statement of assets and liabilities within Variation margin on futures contracts and centrally cleared swap agreements, respectively.

Counterparty	Gross amount of assets ($)			Financial instruments and derivatives available for offset ($)			Collateral received ($)		Net amount of assets ($)
BB		57,172			—			—		57,172
CSI		533,630			—			—		533,630
GSI		53,284			(47,280	)		—		6,004
JPMCB		295,853			(283,327	)		—		12,526
SSB		11,443			(2,943	)		—		8,500
Total		951,382			(333,550	)		—		617,832
Counterparty	Gross amount of liabilities ($)			Financial instruments and derivatives available for offset ($)			Collateral pledged ($)		Net amount of liabilities ($)
GSI		(47,280	)		47,280			—		—
JPMCB		(283,327	)		283,327			—		—
SSB		(2,943	)		2,943			—		—
Total		(333,550	)		333,550			—		—

171

The UBS Funds

Notes to financial statements

UBS Fixed Income Opportunities Fund

Derivative financial instruments:	Assets ($)			Liabilities ($)
Forward foreign currency contracts		36,675			(57,385	)
Futures contracts¹		15,820			(94,753	)
Options purchased		485,762			—
Options written		—			(112,930	)
Swap agreements¹		1,382,822			(2,119,478	)
Total gross amount of derivative assets and liabilities in the Statement of assets and liabilities		1,921,079			(2,384,546	)
Derivatives not subject to a master netting agreement or similar agreement ("MNA")		(518,998	)		1,318,269
Total gross amount of assets and liabilities subject to MNA or similar agreements		1,402,081			(1,066,277	)

Counterparty	Gross amount of assets ($)			Financial instruments and derivatives available for offset ($)			Collateral received ($)		Net amount of assets ($)
BB		161,181			(48,298	)		—		112,883
CIBC		1,306			—			—		1,306
CITI		62,567			(39,268	)		—		23,299
CSI		165,374			(165,374	)		—		—
GSI		218			(218	)		—		—
JPMCB		818,438			(282,847	)		—		535,591
MLI		176,407			(56,713	)		—		119,694
MSC		16,590			(16,590	)		—		—
Total		1,402,081			(609,308	)		—		792,773
Counterparty	Gross amount of liabilities ($)			Financial instruments and derivatives available for offset ($)			Collateral pledged ($)		Net amount of liabilities ($)
BB		(48,298	)		48,298			—		—
CITI		(39,268	)		39,268			—		—
CSI		(232,675	)		165,374			—		(67,301	)
DB		(2,133	)		—			—		(2,133	)
GSI		(20,962	)		218			—		(20,744	)
JPMCB		(282,847	)		282,847			—		—
MLI		(56,713	)		56,713			—		—
MSC		(383,381	)		16,590			—		(366,791	)
Total		(1,066,277	)		609,308			—		(456,969	)

172

The UBS Funds

Notes to financial statements

UBS Core Plus Bond Fund

Derivative financial instruments:	Assets ($)			Liabilities ($)
Forward foreign currency contracts		17,271			—
Futures contracts¹		3,914			(13,485	)
Options purchased		20,383			—
Options written		—			(61,777	)
Swap agreements¹		31,615			(62,848	)
Total gross amount of derivative assets and liabilities in the Statement of assets and liabilities		73,183			(138,110	)
Derivatives not subject to a master netting agreement or similar agreement ("MNA")		(11,817	)		50,567
Total gross amount of assets and liabilities subject to MNA or similar agreements		61,366			(87,543	)

Counterparty	Gross amount of assets ($)			Financial instruments and derivatives available for offset ($)			Collateral received ($)		Net amount of assets ($)
CIBC		1,484			—			—		1,484
JPMCB		37,804			—			—		37,804
MLI		2,886			(2,886	)		—		—
MSC		19,192			(19,192	)		—		—
Total		61,366			(22,078	)		—		39,288
Counterparty	Gross amount of liabilities ($)			Financial instruments and derivatives available for offset ($)			Collateral pledged ($)		Net amount of liabilities ($)
BB		(6,444	)		—			—		(6,444	)
DB		(995	)		—			—		(995	)
MLI		(36,796	)		2,886			—		(33,910	)
MSC		(43,308	)		19,192			—		(24,116	)
Total		(87,543	)		22,078			—		(65,465	)

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 expenses, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included in each Fund's Portfolio of investments footnotes.

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

173

The UBS Funds

Notes to financial statements

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 a 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 a Fund's portfolio are presented at the foreign exchange rates at the end of a Fund's fiscal period, a Fund does 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 realized 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 the 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 the 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 a Fund's commitments with respect to such contracts.

The unrealized gain, if any, represents the credit risk to each Fund on a forward foreign currency contract. Fluctuations in the value of the open forward foreign currency contracts are recorded daily for book purposes as net unrealized gains or losses on foreign forward currency contracts by the Funds. Realized gains and losses include net gains and losses recognized by the Funds on contracts which have been sold or matured.

F. Futures contracts: The Funds may purchase or sell 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 realized 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

174

The UBS Funds

Notes to financial statements

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, a 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 a Fund, depending on the daily fluctuations in the value of the underlying futures contracts. Such variation margin is recorded for financial statement purposes on a daily basis as an unrealized gain or loss on futures until the futures contract is closed or expires, at which time the net gain or loss is reclassified to realized gain or loss on futures.

G. Securities traded on to-be-announced basis: Certain Funds may from time to time purchase, or short sell, 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 securities. 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 Fund's 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. At December 31, 2015, the Funds did not hold any TBA 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. A Fund expects 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 the 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 themselves from interest rate fluctuations. This type of swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to a specified interest rate(s) for a specified amount. The payment flows are usually netted against each other, with the difference being paid by one party to the other. 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 in order to receive or pay amounts based on changes in currency exchange rates to protect themselves from or take advantage of exchange rate fluctuations. A 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. Currency swap agreements are subject to general market risk, liquidity risk, counterparty risk, foreign exchange risk and interest rate risk.

Total return swap agreements involve commitments to pay or receive interest in exchange for a market-linked return based on a notional amount. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, a Fund will receive a payment from or make a payment to the counterparty, respectively. Total return swaps are marked-to-market daily, and the change, if any, is recorded as unrealized appreciation or depreciation. Total return swap agreements are subject to general market risk, liquidity risk, counterparty risk, interest risk, credit risk and the risk that there may be unfavorable changes in the underlying investments or instruments.

175

The UBS Funds

Notes to financial statements

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 the 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 the Fund would make payments only upon the occurrence of a credit event. If no credit event occurs, a Fund will retain 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 swap agreements 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 swap agreements 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 the 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, which may exceed the amount of unrealized appreciation or depreciation reflected on the Statement of assets and liabilities. Notional amounts of all credit default swap agreements outstanding as of December 31, 2015 for which a Fund is the seller of protection are disclosed under the section "Credit default swaps on credit indices—sell protection", "Credit default swaps on sovereign issues—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.

Certain clearinghouses currently offer clearing for limited types of derivatives transactions, such as interest and credit derivatives. In a cleared derivative transaction, a Fund typically enters into the transaction with a financial institution counterparty, and performance of the transaction is effectively guaranteed by a central clearinghouse, thereby reducing or eliminating the Fund's exposure to the credit risk of its original counterparty. The Fund will be required to post specified levels of margin with the clearinghouse or at the instruction of the clearinghouse; the margin required by a clearinghouse may be greater than the margin the Fund would be required to post in an uncleared transaction. Only a limited number of transactions are currently eligible for clearing. Centrally cleared swaps, if any, are reported on the Statement of assets and liabilities based on variation margin receivable or payable, if any.

The use of swap agreements involves investment techniques and risks different from those associated with ordinary portfolio security transactions. If UBS 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

176

The UBS Funds

Notes to financial statements

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. 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 in the Statement of operations. Fluctuations in the value of swap agreements are recorded for financial statement purposes as unrealized appreciation or depreciation on 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 a 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 a 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 a 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, a 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 a Fund could result in the Fund selling or buying a derivative instrument, security or currency at a price different from current market value.

In the normal course of trading activities, the Funds trade and hold certain fair valued derivative contracts that constitute guarantees. Such contracts include written put options, where a Fund would be obligated to purchase securities at specified prices (i.e. the options are exercised by the counterparties). The maximum payout for these contracts is limited to the number of put option contracts written and the related strike prices, respectively. Maximum payout amounts could be offset by the subsequent sale, if any, of assets obtained via the execution of a payout event. The maximum payout for UBS Fixed Income Opportunities Fund and UBS Core Plus Bond Fund was $3,826,749 and $2,377,539, respectively, at December 31, 2015.

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.

177

The UBS Funds

Notes to financial statements

k. Short sales: UBS Dynamic Alpha Fund and UBS U.S. Small Cap Growth Fund may each enter into short sales whereby a Fund 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 in 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 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. There were no short sale transactions for UBS Dynamic Alpha Fund and UBS U.S. Small Cap Growth Fund during the period ended December 31, 2015.

L. Dividends and distributions: It is each Fund's (except UBS Core Plus Bond Fund and UBS Municipal Bond Fund) policy is to distribute its respective net investment income, if any, annually. Prior to December 31, 2015, it was UBS Fixed Income Opportunities Fund's policy to distribute its net investment income, if any, quarterly. Effective December 31, 2015, it is UBS Fixed Income Opportunities Fund's policy to distribute its net investment income, if any, annually. It is the policy of UBS Core Plus Bond Fund and UBS Municipal Bond Fund to distribute its respective net investment income, if any, monthly. It is each Fund's policy to distribute net realized 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 US 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 some Funds in the Trust invest.

Small capitalization ("small cap") companies may be more vulnerable than larger capitalization ("large cap") companies to adverse business or economic developments. Small cap companies may also have limited product lines, markets or financial resources, and may be dependent on a relatively small management group. Securities of such companies may be less liquid and more volatile than securities of large cap companies or the market averages in general and therefore may involve greater risk than investing in large cap companies. In addition, small cap companies may not be well-known to the investing public, may not have institutional ownership and may have only cyclical, static or moderated growth prospects.

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

Investments in bonds with ratings of BB (Standard & Poor's Ratings Group) or Ba (Moody's Investors Service, Inc.) or below (commonly referred to as "high yield" bonds), or deemed of equivalent quality, have an increased risk of defaulting or otherwise being unable to honor a financial obligation. These securities are considered to be predom-

178

The UBS Funds

Notes to financial statements

inately speculative with respect to an issuer's capacity to pay interest and repay principal in accordance with the terms of the obligations. Lower-quality bonds are more likely to be subject to an issuer's default or downgrade than investment grade (higher-quality) bonds.

N. Commission recapture program: Certain Funds participate in a brokerage commission recapture program. Certain 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, 2015, the following Funds recorded recaptured commissions which are reflected in the Statement of operations within the net realized gains (losses) on investments in unaffiliated issuers:

Fund	Amount
UBS Global Allocation Fund	$	1,708
UBS Asset Growth Fund		327
UBS U.S. Large Cap Equity Fund		661
UBS U.S. Small Cap Growth Fund		1,602
UBS U.S. Equity Opportunity Fund		2,590

O. Redemption fees: Prior to August 3, 2015, each class of each series of The UBS Funds imposed a 1% redemption fee on shares sold or exchanged within 90 days of their purchase date, subject to limited exceptions. For purchases of shares on or after February 17, 2015, the redemption fee was calculated as a percentage of the amount redeemed within 30 days of purchase, if applicable. For purchases of shares on or after August 3, 2015, the redemption fee was eliminated.

This amount is paid to the applicable Fund, not the Advisor or UBS Asset Management (US) Inc., ("UBS AM (US)"). The redemption fees retained by the Funds are disclosed in the Statement of changes in net assets. For the period ended December 31, 2015, redemption fees for each Fund amounted to less than $0.01 per share and less than 0.01% of average 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:

	$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%
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 Asset Growth Fund		0.950			0.950			0.950			0.950			0.950			0.950			0.950

179

The UBS Funds

Notes to financial statements

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 Sustainable Equity Fund		0.800	%		0.750	%		0.700	%		0.675	%		0.650	%
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
UBS U.S. Equity Opportunity Fund		0.700			0.650			0.600			0.575			0.550
UBS Fixed Income Opportunities Fund		0.650			0.650			0.650			0.650			0.650
UBS Core Plus Bond Fund		0.500			0.475			0.450			0.425			0.400
UBS Municipal Bond Fund		0.400			0.400			0.400			0.400			0.400

For UBS Global Allocation Fund, UBS International Sustainable Equity Fund, UBS U.S. Large Cap Equity Fund, UBS U.S. Equity Opportunity Fund, UBS Core Plus Bond Fund and UBS Municipal 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 Funds' 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, UBS Asset Growth Fund and UBS Fixed Income Opportunities 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 security 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 security 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, 2015, were as follows:

Fund	Class A expense cap			Class C expense cap			Class P expense cap			Amount due to or (due from) advisor			Advisory fees incurred		Fees waived/ expenses reimbursed
UBS Dynamic Alpha Fund		1.35	%		2.10	%		1.10	%	$	175,347		$	1,295,590	$	132,805
UBS Global Allocation Fund		1.35			2.10			1.10			313,511			1,932,978		16,249
UBS Asset Growth Fund		1.40			2.15			1.15			(3,403	)		110,976		124,664
UBS International Sustainable Equity Fund		1.25			2.00			1.00			(4,386	)		103,711		134,506
UBS U.S. Large Cap Equity Fund		1.20			1.95			0.95			6,724			135,886		102,878
UBS U.S. Small Cap Growth Fund		1.24			1.99			0.99			109,072			963,738		176,118
UBS U.S. Equity Opportunity Fund		1.20			1.95			0.95			6,132			151,826		113,224
UBS Fixed Income Opportunities Fund		0.95			1.45			0.70			(15,238	)		101,722		187,032
UBS Core Plus Bond Fund		0.64			1.14			0.39			(12,604	)		82,961		163,054
UBS Municipal Bond Fund		0.65			1.15			0.40			(11,545	)		119,484		190,250

For 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 security loan fees for securities sold short) to the extent necessary so the Fund's operating expenses do not exceed the amounts above. Prior to March 27, 2015, the fees were not to exceed 1.40% for Class A shares, 2.15% for Class C shares and 1.15% for Class P shares.

Each Fund, except for UBS International Sustainable Equity Fund, will reimburse the Advisor for expenses it waives or reimburses for a period of three years following such expense waivers or 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 or reimbursed for the period ended December 31, 2015 are subject to repayment through June 30, 2019.

180

The UBS Funds

Notes to financial statements

At December 31, 2015, 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, 2016		Expires June 30, 2017		Expires June 30, 2018		Expires June 30, 2019
UBS Dynamic Alpha Fund—Class A	$	394,164	$	137,169	$	148,450	$	78,494	$	30,051
UBS Dynamic Alpha Fund—Class C		147,756		43,675		40,482		43,534		20,065
UBS Dynamic Alpha Fund—Class P		285,909		9,404		28,343		165,473		82,689
UBS Global Allocation Fund—Class C		16,249		—		—		—		16,249
UBS Asset Growth Fund—Class A		531,021		142,026		185,685		138,988		64,322
UBS Asset Growth Fund—Class C		208,428		49,000		63,371		63,424		32,633
UBS Asset Growth Fund—Class P		97,321		8,723		13,837		47,052		27,709
UBS U.S. Large Cap Equity Fund—Class A		75,752		8,181		7,993		33,158		26,420
UBS U.S. Large Cap Equity Fund—Class C		22,715		2,443		3,730		9,467		7,075
UBS U.S. Large Cap Equity Fund—Class P		265,761		46,013		55,550		94,815		69,383
UBS U.S. Small Cap Growth Fund—Class A		184,584		48,524		20,513		59,130		56,417
UBS U.S. Small Cap Growth Fund—Class C		18,460		4,478		2,856		5,493		5,633
UBS U.S. Small Cap Growth Fund—Class P		173,182		—		—		59,114		114,068
UBS U.S. Equity Opportunity Fund—Class A		717,046		222,296		198,607		199,968		96,175
UBS U.S. Equity Opportunity Fund—Class C		85,110		26,132		24,001		24,015		10,962
UBS U.S. Equity Opportunity Fund—Class P		35,640		9,566		7,855		12,132		6,087
UBS Fixed Income Opportunities Fund—Class A		551,504		171,521		258,703		89,922		31,358
UBS Fixed Income Opportunities Fund—Class C		143,177		32,820		42,562		47,817		19,978
UBS Fixed Income Opportunities Fund—Class P		754,566		171,285		141,714		305,871		135,696
UBS Core Plus Bond Fund—Class A		155,930		58,776		52,584		28,417		16,153
UBS Core Plus Bond Fund—Class C		59,870		17,658		17,952		17,005		7,255
UBS Core Plus Bond Fund—Class P		925,172		250,241		248,075		287,210		139,646
UBS Municipal Bond Fund—Class A		72,374		—		—		35,220		37,154
UBS Municipal Bond Fund—Class C		22,647		—		—		10,331		12,316
UBS Municipal Bond Fund—Class P		361,134		—		—		220,354		140,780

Each Fund pays UBS 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, 2015, the Funds owed and incurred administrative fees as follows:

Fund	Administrative fees owed		Administrative fees incurred
UBS Dynamic Alpha Fund	$	18,368	$	114,317
UBS Global Allocation Fund		30,768		181,239
UBS Asset Growth Fund		1,454		8,761
UBS International Sustainable Equity Fund		1,738		9,723
UBS U.S. Large Cap Equity Fund		2,629		14,559
UBS U.S. Small Cap Growth Fund		12,970		85,036
UBS U.S. Equity Opportunity Fund		2,785		16,267
UBS Fixed Income Opportunities Fund		1,884		11,737
UBS Core Plus Bond Fund		2,295		12,444
UBS Municipal Bond Fund		4,290		22,403

The Funds may invest in shares of certain affiliated investment companies also advised or managed by the Advisor. Investments in affiliated investment companies for the period ended December 31, 2015 have been included near the end of each Fund's Portfolio of investments.

181

The UBS Funds

Notes to financial statements

During the six months ended December 31, 2015, the Funds could invest in UBS Cash Management Prime Relationship Fund ("Cash Prime"). Cash Prime was offered as a cash management option only to mutual funds and certain other accounts. On November 20, 2015, the Board of Trustees approved changing the Funds' sweep option for uninvested balances from Cash Prime to JPMorgan U.S. Government Money Market Fund; the change went into effect on December 10, 2015. Distributions received from Cash Prime are reflected as affiliated income in the Statement of operations. Amounts relating to those investments for the six months ended December 31, 2015 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 only to mutual funds and certain other accounts managed by the Advisor. UBS AM acts as managing member of Private Money Market 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. UBS AM 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. Amounts relating to those investments for the year ended December 31, 2015 have been included near the end of each Fund's Portfolio of investments.

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, 2015, were as follows:

Fund	UBS AG
UBS Global Allocation Fund	$	593
UBS Asset Growth Fund		192
UBS International Sustainable Equity Fund		2,002
UBS U.S. Large Cap Equity Fund		64
UBS U.S. Small Cap Growth Fund		120
UBS U.S. Equity Opportunity Fund		11

3. Distribution and service plans

UBS AM (US) is the principal underwriter of each Fund's shares. The Trust has adopted distribution and/or service plans (the "Plans") pursuant to Rule 12b-1 under the 1940 Act for Class A and Class C. The Plans govern payments made for the expenses incurred in the service and/or distribution of Class A 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 C
UBS Dynamic Alpha Fund		0.25	%		1.00	%
UBS Global Allocation Fund		0.25			1.00
UBS Asset Growth Fund		0.25			1.00
UBS International Sustainable Equity Fund		0.25			1.00
UBS U.S. Large Cap Equity Fund		0.25			1.00
UBS U.S. Small Cap Growth Fund		0.25			1.00
UBS U.S. Equity Opportunity Fund		0.25			1.00
UBS Fixed Income Opportunities Fund		0.25			0.75
UBS Core Plus Bond Fund		0.25			0.75
UBS Municipal Bond Fund		0.25			0.75

182

The UBS Funds

Notes to financial statements

UBS 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 and Class C. At December 31, 2015, certain Funds owed UBS AM (US) distribution and service fees, and for the period ended December 31, 2015, certain Funds were informed by UBS AM (US) that it had earned sales charges as follows:

Fund	Distribution and service fees owed		Sales charges earned
UBS Dynamic Alpha Fund—Class A	$	17,115	$	552
UBS Dynamic Alpha Fund—Class C		30,616		54
UBS Global Allocation Fund—Class A		47,982		13,678
UBS Global Allocation Fund—Class C		117,901		8
UBS Asset Growth Fund—Class A		2,489		1,263
UBS Asset Growth Fund—Class C		5,010		—
UBS International Sustainable Equity Fund—Class A		1,441		1,897
UBS International Sustainable Equity Fund—Class C		2,364		150
UBS U.S. Large Cap Equity Fund—Class A		2,095		1,217
UBS U.S. Large Cap Equity Fund—Class C		1,999		—
UBS U.S. Small Cap Growth Fund—Class A		9,150		2,621
UBS U.S. Small Cap Growth Fund—Class C		4,518		—
UBS U.S. Equity Opportunity Fund—Class A		7,989		812
UBS U.S. Equity Opportunity Fund—Class C		3,357		—
UBS Fixed Income Opportunities Fund—Class A		1,086		—
UBS Fixed Income Opportunities Fund—Class C		2,018		—
UBS Core Plus Bond Fund—Class A		1,094		—
UBS Core Plus Bond Fund—Class C		800		—
UBS Municipal Bond Fund—Class A		2,822		15,341
UBS Municipal Bond Fund—Class C		2,713		900

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, 2015, UBS Financial Services Inc. received from BNY Mellon, not the Funds, total service fees as follows:

Fund	Amount paid
UBS Dynamic Alpha Fund	$	35,549
UBS Global Allocation Fund		67,463
UBS Asset Growth Fund		2,325
UBS International Sustainable Equity Fund		1,810
UBS U.S. Large Cap Equity Fund		1,137
UBS U.S. Small Cap Growth Fund		4,035
UBS U.S. Equity Opportunity Fund		5,068
UBS Fixed Income Opportunities Fund		4,609
UBS Core Plus Bond Fund		710
UBS Municipal Bond Fund		2,662

183

The UBS Funds

Notes to financial statements

5. Securities lending

Each Fund may lend securities up to 33 1/3% of its total assets to qualified broker-dealers or institutional investors. The loans are secured at all times by cash, 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. A 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.

Cash collateral received is invested in Private Money Market, which is included in each Fund's Portfolio of investments. At December 31, 2015, the following Funds loaned securities to certain qualified broker-dealers, with the Funds' custodian acting as the Funds' lending agent. The value of loaned securities and related collateral at December 31, 2015 was as follows:

Fund	Market value of securities loaned		Market value of collateral recevied from securities loaned		Market value of investments of cash collateral received		Market value of non-cash collateral received		Security type held as non-cash collateral
UBS Dynamic Alpha Fund		$19,833,278		$20,262,206		$ 2,051,165		$18,211,041	US Treasury Securities & Corporate Notes
UBS Global Allocation Fund		28,466,289		29,105,879		24,501,707		4,604,172	US Treasury Securities & Common Stock
UBS Asset Growth Fund		1,703,003		1,739,652		1,739,652		—		—
UBS International Sustainable Equity Fund		1,169,301		1,229,986		1,229,986		—		—
UBS U.S. Large Cap Equity Fund		2,768,284		2,846,580		2,846,580		—		—
UBS U.S. Small Cap Growth Fund		19,580,597		20,101,825		19,847,673		254,152	Common Stock
UBS U.S. Equity Opportunity Fund		2,667,684		2,749,712		2,692,994		56,718	Common Stock
UBS Core Plus Bond Fund		1,600,811		1,633,556		9,480		1,624,076	US Treasury Securities & Corporate Notes

Pursuant to Accounting Standards Update No. 2014-11, Transfers & Servicing (Topic 860), the table below represents the disaggregation at December 31, 2015 of the gross amount of recognized liabilities for securities lending transactions. As the securities loaned are subject to termination by the Funds or the borrower at any time, the remaining contractual maturities of the transactions presented below are considered to be overnight and continuous.

184

The UBS Funds

Notes to financial statements

	Type of securities loaned				Total gross amount of recognized liabilities for
Fund	Equity securities		Corporate notes		securities lending transactions
UBS Dynamic Alpha Fund	$	—	$	2,051,165	$	2,051,165
UBS Global Allocation Fund		24,501,707		—		24,501,707
UBS Asset Growth Fund		1,739,652		—		1,739,652
UBS International Sustainable Equity Fund		1,229,986		—		1,229,986
UBS U.S. Large Cap Equity Fund		2,846,580		—		2,846,580
UBS U.S. Small Cap Growth Fund		19,847,673		—		19,847,673
UBS U.S. Equity Opportunity Fund		2,692,994		—		2,692,994
UBS Core Plus Bond Fund		—		9,480		9,480

6. Purchases and sales of securities

For the period ended December 31, 2015, 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	$	36,729,746	$	33,524,453
UBS Global Allocation Fund		98,630,870		98,876,913
UBS Asset Growth Fund		10,455,904		12,289,179
UBS International Sustainable Equity Fund		23,962,345		21,583,171
UBS U.S. Large Cap Equity Fund		11,322,237		10,700,926
UBS U.S. Small Cap Growth Fund		135,458,552		127,586,185
UBS U.S. Equity Opportunity Fund		25,200,668		27,724,107
UBS Fixed Income Opportunities Fund		8,788,938		14,208,997
UBS Core Plus Bond Fund		105,691,375		99,613,177
UBS Municipal Bond Fund		31,514,324		32,530,924

For the period ended December 31, 2015, aggregate purchases and sales of US Government and agency securities, excluding short-term investments, were as follows:

Fund	Purchases		Sales proceeds
UBS Global Allocation Fund	$	23,675,365	$	29,039,937
UBS Fixed Income Opportunities Fund		10,862,660		10,852,584
UBS Core Plus Bond Fund		33,833,011		37,216,029

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.

185

The UBS Funds

Notes to financial statements

The tax character of distributions paid during the fiscal year ended June 30, 2015 were as follows:

	2015
Fund	Distributions paid from tax-exempt income		Distributions paid from ordinary income		Distributions paid from net long-term gains		Total distributions paid
UBS Dynamic Alpha Fund	$	—	$	11,546,315	$	—	$	11,546,315
UBS Global Allocation Fund		—		—		—		—
UBS Asset Growth Fund		—		—		—		—
UBS International Sustainable Equity Fund		—		315,763		—		315,763
UBS U.S. Large Cap Equity Fund		—		1,034,949		—		1,034,949
UBS U.S. Small Cap Growth Fund		—		11,549,217		31,619,947		43,169,164
UBS U.S. Equity Opportunity Fund		—		20,003		—		20,003
UBS Fixed Income Opportunities Fund		—		1,010,566		—		1,010,566
UBS Core Plus Bond Fund		—		1,034,143		—		1,034,143
UBS Municipal Bond Fund		525,283		1,343		792		527,418

The tax character of distributions paid and components of accumulated earnings (deficit) on a tax basis current fiscal year will be determined after the Trust's fiscal year ending June 30, 2016.

Under the Regulated Investment Company Modernization Act of 2010 (the "Act"), net capital losses recognized by the Funds after December 22, 2010, may be carried forward indefinitely, and retain their character as short-term and/or long-term losses. These carryforwards are available as a reduction, to the extent provided in regulations, of future realized capital gains. To the extent that such losses are used to offset future net realized capital gains, it is probable these gains will not be distributed. The Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

At June 30, 2015, the following Funds had post-enactment net capital losses that will be carried forward indefinitely, as follows:

Fund	Short-term losses		Long-term losses		Net capital losses
UBS Core Plus Bond Fund	$	35,412	$	—	$	35,412
UBS Fixed Income Opportunities Fund		3,770,097		—		3,770,097

At June 30, 2015, the following Funds had pre-enactment 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		June 30, 2019
UBS Dynamic Alpha Fund	$	103,495,364	$	202,927,795	$	46,428,719
UBS Global Allocation Fund		91,445,433		862,762,158		—
UBS Asset Growth Fund		11,720,453		9,543,610		3,269,324
UBS International Sustainable Equity Fund		—		8,647,665		—
UBS U.S. Large Cap Equity Fund		—		81,277,823		—
UBS U.S. Equity Opportunity Fund		—		4,673,695		—
UBS Core Plus Bond Fund		2,127,033		32,070,048		—

186

The UBS Funds

Notes to financial statements

Qualified late year losses are deemed to arise on the first business day of a Fund's next taxable year. For the year ended June 30, 2015, the following Funds incurred and elected to defer qualified late year losses of the following:

			Post October Capital Loss
Fund	Late year ordinary loss		Short-term losses		Long-term losses
UBS Fixed Income Opportunities Fund	$	—	$	998,054	$	—

ASC 740-10 "Income Taxes—Overall" sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken. The Funds have conducted an analysis and concluded, as of December 31, 2015, that there are no significant uncertain tax positions taken or expected to be taken that would require recognition in the financial statements. It is each Fund's policy to record any significant foreign tax exposures in the financial statements. The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of operations. During the period ended December 31, 2015, the Funds did not incur any interest or penalties.

Under the applicable foreign tax laws, gains on certain securities held in certain foreign countries may be subject to taxes that will be paid by the Funds.

Each of the tax years in the four year period ended June 30, 2015, or since inception in the case of UBS Municipal Bond Fund, remains subject to examination by the Internal Revenue Service and state taxing authorities.

8. Line of credit

The Trust and certain other funds managed by UBS AM have entered into an agreement with JPMorgan Chase Bank to provide a $50 million committed line of credit to the Funds and certain other funds managed by UBS AM ("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. For the six months ended December 31, 2015, the following Funds had borrowings as follows:

Fund				Average daily borrowings				Number of days outstanding				Interest expense				Weighted average annualized interest rate
UBS International Sustainable Equity Fund				$	4,850,000				1			$	161				1.19	%

At December 31, 2015, there were no borrowings outstanding.

187

The UBS Funds

Notes to financial statements

9. Shares of beneficial interest

For the period ended December 31, 2015, transactions in shares of beneficial interest for each of the Funds were as follows:

UBS Dynamic Alpha Fund

	Class A						Class C						Class P
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		119,281		$	809,901			41,872		$	260,315			3,108,977		$	21,977,211
Shares repurchased		(1,392,303	)		(9,396,248	)		(1,575,548	)		(9,972,305	)		(6,292,497	)		(43,204,504	)
Dividends reinvested		373,973			2,404,649			139,684			845,085			888,345			5,809,775
Redemption fees		—			46			—			23			—			103
Net increase (decrease)		(899,049	)	$	(6,181,652	)		(1,393,992	)	$	(8,866,882	)		(2,295,175	)	$	(15,417,415	)

UBS Global Allocation Fund

	Class A						Class C						Class P
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		140,321		$	1,527,249			32,458		$	344,865			320,487		$	3,606,373
Shares repurchased		(1,619,991	)		(17,805,052	)		(1,114,040	)		(11,830,177	)		(1,511,409	)		(16,926,206	)
Dividends reinvested		453,933			4,861,626			193,128			2,016,252			242,806			2,653,869
Redemption fees		—			452			—			279			—			235
Net increase (decrease)		(1,025,737	)	$	(11,415,725	)		(888,454	)	$	(9,468,781	)		(948,116	)	$	(10,665,729	)

UBS Asset Growth Fund

	Class A						Class C						Class P
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		26,460		$	232,646			7,773		$	66,502			14,696		$	122,851
Shares repurchased		(108,043	)		(940,195	)		(23,384	)		(193,241	)		(40,290	)		(335,305	)
Dividends reinvested		5,601			44,806			—			—			4,134			33,072
Redemption fees		—			10			—			5			—			5
Net increase		(75,982	)	$	(662,733	)		(15,611	)	$	(126,734	)		(21,460	)	$	(179,377	)

UBS International Sustainable Equity Fund (formerly, UBS Global Sustainable Equity Fund)

	Class A						Class C						Class P
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		152,037		$	1,346,258			52,699		$	459,600			308,143		$	2,669,616
Shares repurchased		(31,027	)		(279,140	)		(24,730	)		(206,646	)		(154,789	)		(1,377,367	)
Dividends reinvested		7,241			61,695			1,731			14,435			23,276			198,781
Redemption fees		—			—			—			—			—			—
Net increase (decrease)		128,251		$	1,128,813			29,700		$	267,389			176,630		$	1,491,030

188

The UBS Funds

Notes to financial statements

UBS U.S. Large Cap Equity Fund

	Class A						Class C						Class P
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		25,093		$	651,516			3,433		$	89,643			135,915		$	3,585,142
Shares repurchased		(21,340	)		(564,482	)		(14,388	)		(360,325	)		(93,862	)		(2,575,711	)
Dividends reinvested		4,705			122,708			431			10,793			16,972			443,987
Redemption fees		—			13			—			3			—			35
Net increase (decrease)		8,458		$	209,755			(10,524	)	$	(259,886	)		59,025		$	1,453,453

UBS U.S. Small Cap Growth Fund

	Class A						Class C						Class P
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		511,234		$	11,028,906			63,955		$	1,155,550			3,191,134		$	69,765,651
Shares repurchased		(647,578	)		(13,476,360	)		(33,213	)		(624,664	)		(2,874,926	)		(63,889,704	)
Dividends reinvested		159,734			3,063,699			25,184			414,279			501,288			10,301,465
Redemption fees		—			66			—			7			—			265
Net increase		23,390		$	616,311			55,926		$	945,172			817,496		$	16,177,677

UBS U.S. Equity Opportunity Fund

	Class A						Class C						Class P
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		5,160		$	51,641			3,109		$	31,237			9,542		$	99,441
Shares repurchased		(153,291	)		(1,554,635	)		(25,942	)		(258,720	)		(12,455	)		(127,931	)
Dividends reinvested		414			4,181			—			—			560			5,677
Redemption fees		—			—			—			—			—			—
Net increase (decrease)		(147,717	)	$	(1,498,813	)		(22,833	)	$	(227,483	)		(2,353	)	$	(22,813	)

UBS Fixed Income Opportunities Fund

	Class A						Class C						Class P
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		1,585		$	14,573									76,486		$	687,010
Shares repurchased		(96,851	)		(873,908	)		(61,765	)	$	(553,517	)		(542,637	)		(4,852,086	)
Dividends reinvested		1,486			13,291			95			850			9,266			82,896
Redemption fees		—			5			—			3			—			22
Net increase (decrease)		(93,780	)	$	(846,039	)		(61,670	)	$	(552,664	)		(456,885	)	$	(4,082,158	)

UBS Core Plus Bond Fund

	Class A						Class C						Class P
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		330,718		$	3,008,957			20,246		$	182,765			179,469		$	1,622,047
Shares repurchased		(15,257	)		(138,117	)		(25,885	)		(233,921	)		(219,334	)		(1,981,954	)
Dividends reinvested		2,747			24,746			1,238			11,113			47,229			425,142
Redemption fees		—			—			—			—			—			—
Net increase		318,208		$	2,895,586			(4,401	)	$	(40,043	)		7,364		$	65,235

189

The UBS Funds

Notes to financial statements

UBS Municipal Bond Fund

	Class A						Class C						Class P
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		484,706		$	4,873,802			127,771		$	1,279,000			2,021,748		$	20,360,970
Shares repurchased		(300,614	)		(3,017,366	)		(20,737	)		(209,003	)		(1,808,772	)		(18,101,943	)
Dividends reinvested		8,429			84,915			2,578			26,001			40,529			408,320
Redemption fees		—			—			—			—			—			—
Net increase (decrease)		192,521		$	1,941,351			109,612		$	1,095,998			253,505		$	2,667,347

For the year ended June 30, 2015, transactions in shares of beneficial interest for each of the Funds were as follows:

UBS Dynamic Alpha Fund

	Class A						Class C						Class P*
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		2,653,702		$	19,233,695			327,387		$	2,236,501			19,709,662		$	145,938,818
Shares repurchased		(17,334,381	)		(125,723,664	)		(1,147,281	)		(7,836,630	)		(5,042,353	)		(37,243,078	)
Dividends reinvested		404,482			2,871,827			176,586			1,179,595			875,769			6,323,050
Redemption fees		—			1,269			—			614			—			1,914
Net increase (decrease)		(14,276,197	)	$	(103,616,873	)		(643,308	)	$	(4,419,920	)		15,543,078		$	115,020,704

UBS Global Allocation Fund

	Class A						Class C						Class P*
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		1,219,630		$	13,777,786			98,989		$	1,087,450			5,659,081		$	63,603,807
Shares repurchased		(8,400,345	)		(93,015,757	)		(2,933,162	)		(31,943,506	)		(6,352,786	)		(72,493,782	)
Redemption fees		—			5,031			—			3,244			—			2,997
Net decrease		(7,180,715	)	$	(79,232,940	)		(2,834,173	)	$	(30,852,812	)		(693,705	)	$	(8,886,978	)

UBS Asset Growth Fund

	Class A						Class C						Class P*
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		34,459		$	319,883			30,223		$	283,110			545,878		$	5,099,518
Shares repurchased		(1,041,774	)		(9,722,330	)		(129,143	)		(1,171,762	)		(116,706	)		(1,071,848	)
Redemption fees		—			299			—			129			—			86
Net increase (decrease)		(1,007,315	)	$	(9,402,148	)		(98,920	)	$	(888,523	)		429,172		$	4,027,756

UBS International Sustainable Equity Fund (formerly, UBS Global Sustainable Equity Fund)

	Class A						Class C						Class P*
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		339,776		$	3,133,639			119,703		$	1,098,968			681,904		$	6,087,329
Shares repurchased		(514,903	)		(4,577,768	)		(12,376	)		(112,538	)		(293,530	)		(2,642,659	)
Dividends reinvested		5,669			48,700			1,925			16,228			25,341			218,185
Redemption fees		—			296			—			100			—			811
Net increase (decrease)		(169,458	)	$	(1,395,133	)		109,252		$	1,002,758			413,715		$	3,663,666

190

The UBS Funds

Notes to financial statements

UBS U.S. Large Cap Equity Fund

	Class A						Class C						Class P*
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		80,813		$	2,085,076			16,194		$	405,505			611,878		$	15,749,199
Shares repurchased		(106,054	)		(2,674,089	)		(53,363	)		(1,287,012	)		(4,667,957	)		(121,760,104	)
Dividends reinvested		1,594			40,255			—			—			38,948			986,950
Redemption fees		—			892			—			238			—			6,923
Net decrease		(23,647	)	$	(547,866	)		(37,169	)	$	(881,269	)		(4,017,131	)	$	(105,017,032	)

UBS U.S. Small Cap Growth Fund

	Class A						Class C						Class P*
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		596,836		$	13,461,409			98,405		$	2,008,231			1,516,069		$	36,386,274
Shares repurchased in-kind		—			—			—			—			(3,163,806	)		(71,312,188	)
Shares repurchased		(599,282	)		(13,845,210	)		(38,574	)		(776,498	)		(1,583,410	)		(38,793,957	)
Dividends reinvested		267,579			5,506,787			36,995			667,385			1,632,666			35,706,413
Redemption fees		—			2,480			—			247			—			12,922
Net increase (decrease)		265,133		$	5,125,466			96,826		$	1,899,365			(1,598,481	)	$	(38,000,536	)

UBS U.S. Equity Opportunity Fund

	Class A						Class C						Class P*
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		39,841		$	389,888			870		$	8,193			88,198		$	846,732
Shares repurchased		(431,799	)		(4,272,910	)		(80,951	)		(784,533	)		(50,710	)		(516,220	)
Dividends reinvested		1,285			12,613			—			—			605			5,974
Redemption fees		—			1,137			—			130			—			56
Net increase (decrease)		(390,673	)	$	(3,869,272	)		(80,081	)	$	(776,210	)		38,093		$	336,542

UBS Fixed Income Opportunities Fund

	Class A						Class C						Class P*
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		74,384		$	704,345			3,857		$	35,946			3,272,676		$	31,473,009
Shares repurchased		(3,673,381	)		(35,211,031	)		(341,661	)		(3,215,822	)		(2,945,907	)		(27,665,822	)
Dividends reinvested		12,759			117,176			6,516			59,460			65,626			604,344
Redemption fees		—			145			—			100			—			687
Net increase (decrease)		(3,586,238	)	$	(34,389,365	)		(331,288	)	$	(3,120,316	)		392,395		$	4,412,218

UBS Core Plus Bond Fund

	Class A						Class C						Class P*
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		20,818		$	192,060			17,059		$	157,313			755,738		$	6,965,354
Shares repurchased		(135,037	)		(1,243,314	)		(36,713	)		(335,472	)		(470,235	)		(4,330,916	)
Dividends reinvested		6,668			61,203			3,420			31,253			99,953			915,764
Redemption fees		—			724			—			385			—			7,229
Net increase (decrease)		(107,551	)	$	(989,327	)		(16,234	)	$	(146,521	)		385,456		$	3,557,431

191

The UBS Funds

Notes to financial statements

UBS Municipal Bond Fund

	Class A						Class C						Class P*
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		1,205,919		$	12,084,838			299,920		$	3,024,270			5,923,033		$	59,428,930
Shares repurchased		(110,335	)		(1,097,096	)		(4,536	)		(45,000	)		(1,213,674	)		(12,079,756	)
Dividends reinvested		3,593			35,972			1,255			12,563			19,204			192,048
Redemption fees					788						229						4,432
Net increase		1,099,177		$	11,024,502			296,639		$	2,992,062			4,728,563		$	47,545,654

* Effective July, 28, 2014, Class Y shares were renamed Class P shares.

10. Contribution from Advisor

During the period ended December 31, 2015, the Advisor reimbursed UBS Dynamic Alpha Fund and UBS International Sustainable Equity Fund for trading errors in the amounts of $86,068 and $5,471, respectively.

During a review, the Financial Conduct Authority, a UK regulator, and the Advisor agreed that the Advisor paid for ineligible services, namely index data and certain market data services, out of equity dealing commissions for trades effected on behalf of the UBS Dynamic Alpha Fund and UBS Global Allocation Fund in the United Kingdom. As a result, during the period ended December 31, 2015, the Advisor reimbursed the UBS Dynamic Alpha Fund and UBS Global Allocation Fund $128,212 and $316,557, respectively, which was determined to be the value of the ineligible services paid for from the Funds' dealing commissions.

11. Subsequent event

On December 3, 2015 the Board of Trustees of The UBS Funds determined that it is in the best interests of the UBS US Equity Opportunity Fund (the "Fund") and its shareholders to liquidate and dissolve the Fund pursuant to a Plan of Liquidation (the "Plan"). The Plan provides that: (a) all the Fund's assets be converted into cash or cash equivalents or be otherwise liquidated and (b) the Fund distribute pro rata to its shareholders all of its existing assets, in a complete liquidation of the Fund. The liquidation is expected to be completed on or about March 16, 2016 (the "Liquidation Date"). On Liquidation Date, all shareholders will have their accounts liquidated and the proceeds will be delivered to them.

In connection with the liquidation, the Board approved, effective January 14, 2016, the closure of each class of the Fund to new investments, including new investors, additional purchases from existing investors and purchases for exchange from other funds. The Board also approved, effective January 14, 2016, the closure of each class of the Fund to reinvestments of dividends and distributions. Therefore, the Fund will no longer offer shares for purchase. The Fund reserves the right to change this policy at any time. Of course, shareholders will continue to be able to exchange or redeem their shares in accordance with the policies in the Prospectus.

Also in connection with the liquidation, effective January 14, 2016, (a) the investment advisory fee of 0.70% of average net assets is waived; (b) the annual Rule 12b-1 distribution fee of 0.75% of average net assets that is charged to the shareholders of Class C shares is waived; and (c) all contingent deferred sales charges (CDSC) assessed on redemptions that are charged on Class A shares (on purchases of $1,000,000 or more) and Class C shares are eliminated. The annual service fee of 0.25% of average net assets that is charged on Class A shares and Class C shares will not be waived. With respect to exchanges of shares of the Fund for shares of another Family Fund, the length of time you held your shares of the Fund will still be considered when determining whether you must pay a CDSC when you sell the shares of the Family Fund acquired in the exchange.

192

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 1-202-551 8090. 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, or on the EDGAR Database on the SEC's Web site http://www.sec.gov).

193

The UBS Funds

Fund's privacy notice

This notice describes the privacy policy of the UBS Family of Funds, the PACE Funds and all closed-end funds managed by UBS AM (collectively, the "Funds"). The Funds are committed to protecting the personal information that they collect about individuals who are prospective, current or former investors.

The Funds collect personal information in order to process requests and transactions and to provide customer service. Personal information, which is obtained from applications and other forms or correspondence submitted to the Funds, may include name(s), address, e-mail address, telephone number, date of birth, social security number or other tax identification number, bank account information, information about your transactions and experiences with the Funds, and any affiliation a client has with UBS Financial Services Inc. or its affiliates ("Personal Information").

The Funds limit access to Personal Information to those individuals who need to know that information in order to process transactions and service accounts. These individuals are required to maintain and protect the confidentiality of Personal Information and to follow established procedures. The Funds maintain physical, electronic and procedural safeguards to protect Personal Information and to comply with applicable laws and regulations. The Funds may share Personal Information with their affiliates to facilitate the servicing of accounts and for other business purposes, or as otherwise required or permitted by applicable law. The Funds may also share Personal Information with non-affiliated third parties that perform services for the Funds, such as vendors that provide data or transaction processing, computer software maintenance and development, and other administrative services. When the Funds share Personal Information with a non-affiliated third party, they will do so pursuant to a contract that includes provisions designed to ensure that the third party will uphold and maintain privacy standards when handling Personal Information. In addition to sharing information with non-affiliated third parties to facilitate the servicing of accounts and for other business purposes, the Funds may disclose Personal Information to non-affiliated third parties as otherwise required or permitted by applicable law. For example, the Funds may disclose Personal Information to credit bureaus or regulatory authorities to facilitate or comply with investigations; to protect against or prevent actual or potential fraud, unauthorized transactions, claims or other liabilities; or to respond to judicial or legal process, such as subpoena requests.

Except as described in this privacy notice, the Funds will not use Personal Information for any other purpose unless the Funds describe how such Personal Information will be used and clients are given an opportunity to decline approval of such use of Personal Information relating to them (or affirmatively approve the use of Personal Information, if required by applicable law). The Funds endeavor to keep their customer files complete and accurate. The Funds should be notified if any Personal Information needs to be corrected or updated. Please call 1-800-647 1568 with any questions or concerns regarding your Personal Information or this privacy notice.

Privacy Notice
This privacy notice is not a part of the shareholder report.

PRESORTED
STANDARD
U.S. POSTAGE
PAID
COMPUTERSHARE

UBS Asset Management (Americas) Inc.

1285 Avenue of the Americas

New York, NY 10019

S1627

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 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.

(c)	Iran related activities disclosure pursuant to Section 13 (r) — From N-CSR disclosure requirement not applicable to this filing of a semi-annual report.

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 10, 2016

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.

The UBS Funds


By:	/s/ Mark E. Carver
	Mark E. Carver
	President

Date:	March 10, 2016


By:	/s/ Thomas Disbrow
	Thomas Disbrow
	Vice President, Treasurer and Principal Accounting Officer

Date:	March 10, 2016