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)

 

Keith A. Weller, Esq. UBS Asset Management One North Wacker Drive Chicago, IL 60606

(Name and address of agent for service)

Copy to:

Jana L. Cresswell, Esq. Stradley Ronon Stevens & Young, LLP 2500 Market Street, Suite 2600 Philadelphia, PA 19103-7098

 

Registrant’s telephone number, including area code: 888-793 8637

 

Date of fiscal year end: June 30

 

Date of reporting period: December 31, 2023

 

 

 

 

Item 1. Reports to Stockholders.

 

 

The UBS Funds

Semiannual Report | December 31, 2023

Table of contents				Page
President's letter					1
Market commentary					2
UBS All China Equity Fund					4
UBS Global Allocation Fund					10
UBS Emerging Markets Equity Opportunity Fund					23
UBS Engage For Impact Fund					28
UBS International Sustainable Equity Fund					35
UBS US Dividend Ruler Fund					43
UBS US Quality Growth At Reasonable Price Fund					49
UBS U.S. Small Cap Growth Fund					55
UBS Sustainable Development Bank Bond Fund					63
UBS Multi Income Bond Fund					68
Glossary of terms used in the Portfolio of investments					79
Explanation of expense disclosure					80
Statement of assets and liabilities					83
Statement of operations					89
Statement of changes in net assets					93
Financial highlights					97
Notes to financial statements					110
General information					139
Supplemental information (Shareholder meeting results)					140

This page intentionally left blank.

President's letter

February 6, 2024

Dear Shareholder,

The more things change, the more they stay the same. Since the last time we wrote to you, markets continue to be volatile, growth continues to be remarkably resistant in the face of various hurdles and geopolitics have continued to provide a background of global strife.

In perhaps the biggest news for the global economy, after raising US interest rates in June of the previous reporting period to their highest level in over 20 years, the US Federal Reserve (the "Fed") has signaled that it has likely reached the end of the hiking cycle, and the next move, albeit not necessarily soon, will be a cut to the federal funds rate. The term federal funds rate refers to the target interest rate range set by the Federal Open Market Committee (FOMC). This target is the rate at which commercial banks borrow and lend their excess reserves to each other overnight.

Inflation, which had been a major cause for concern, has abated. US consumer price inflation closed 2023 with a 3.4% annual rise vs. a 6.5% rate in December of 2022. This is in sharp contrast to a four-decade high of 9.1% in June of 2021.

The IMF (International Monetary Fund) saw positive growth in the US, the eurozone, the United Kingdom and Japan, with China leading the way with economic expansion roughly in line with authorities' 5% target, after ending its zero-COVID-19 policy earlier in 2023. Growth in emerging markets on average remained remarkably robust given the many headwinds, including higher US rates and a comparative slowdown in China. Meanwhile a number of largely contained bank problems added to volatility in markets.

Investors have grown broadly accustomed to the residual risk of an escalation in global conflicts over the course of the past year, with the Russian war in Ukraine continuing and fighting erupting in the Middle East after the October 7th invasion of Israel by Hamas.

Amid this backdrop, global equities experienced periods of elevated volatility. The S&P 500 closed the year strongly in the US, up about 24% after entering a bull market in June and despite some periods of lackluster trading. However, this was fueled to a large degree by the so-called 'magnificent seven' (Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta Platforms and Tesla) which were up on average 111% in 2023, in particular after artificial intelligence (AI) caught fire following the launch of chat GTP earlier in the year.

Fixed income markets likewise rallied to end the year after a weak start to the period, and the US Treasury 10-year note briefly trading over 5% in late October.

With global macroeconomics continuing to offer a high degree of uncertainty we believe in-depth fundamental research will continue to help active managers identify attractive investment opportunities in different sectors and countries. And, with market volatility still running high, we believe active managers can take advantage of the challenges and opportunities that market mis-pricings present as we seek to add value for our clients.

As always, we thank you for being a part of the UBS family of funds.

Sincerely,

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

The markets in review

The global economy continues to expand

Despite several headwinds, the global economy was resilient and continued to expand during the reporting period. In its October 2023 World Economic Outlook Update, the IMF said, "The global economy continues to recover slowly from the blows of the pandemic, Russia's invasion of Ukraine, and the cost-of-living crisis inflation. In retrospect, the resilience has been remarkable. Despite the disruption in energy and food markets caused by the war, and the unprecedented tightening of global monetary conditions to combat decades-high inflation, the global economy has slowed, but not stalled. Yet growth remains slow and uneven, with growing global divergences." According to the IMF, 2024 GDP growth in the US is projected to be 2.1% (versus an estimated 2.5% in 2023), 0.9% in the eurozone (versus 0.5% in 2023), 0.6% in the UK (versus 0.5% in 2023), and 0.9% in Japan (versus 1.9% in 2023).

A significant factor impacting the global economy and the financial markets was central bank monetary policy. In July 2023, the Fed raised interest rates to a range between 5.25% and 5.50%, a 22-year high. With inflation continuing to moderate, the Fed then remained on hold from September through December 2023. Then in December, the Fed "pivoted," as it indicated the likely end to rate hikes and penciled in three rate cuts in 2024. The European Central Bank (ECB) and the Bank of England (BoE) also appeared to pivot and indicated that rates cuts were possible in 2024. One outlier was the Bank of Japan, as it maintained its accommodative monetary stance.

Global equities end on a high note

Global equities produced weak results over the first four months of the reporting period, as investors were concerned that interest rates would remain "higher for longer" and potentially drag the economy into a recession. Equities then ended the year on a positive note, as they rallied sharply over the last two months of 2023. Central bank pivots were a major factor in the market's turnaround. Signs that the Fed may orchestrate a "soft landing" for the economy also supported the market. For the six-months ended December 31, 2023, the S&P 500 Index¹​ returned 8.04%. Outside the US, international developed equities, as measured by the MSCI EAFE Index (net),²​ gained 5.88%. Elsewhere, emerging markets equities, as measured by the MSCI Emerging Markets Index (net)³​ returned 4.71% during the reporting period.

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

²​  The MSCI EAFE Index (net) is an index of stocks 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.

³​  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

The overall fixed income market moves higher

As was the case with equities, the overall global fixed income market was initially weak and then rallied to end the year. Central bank pivots were again the driver of the fixed income market's reversal of fortune. In the US, the yield on the 10-year Treasury briefly breached 5% in October 2023—the first time in 16 years—and then fell sharply, ending the reporting period at 3.88%. For the six-month reporting period, the overall US bond market, as measured by the Bloomberg US Aggregate Index,⁴​ returned 3.37%. Riskier fixed income securities generated even better results. High yield bonds, as measured by the ICE BofAML US High Yield Index,⁵​ gained 7.63%. Elsewhere, emerging markets debt, as measured by the J.P. Morgan Emerging Markets Bond Index Global (EMBI Global),⁶​ rose 6.40% during the reporting period.

⁴​  The Bloomberg 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.

⁵​  The ICE BofAML US High Yield Index is an unmanaged index that tracks the performance of US dollar denominated, below investment-grade rated corporate debt publicly issued in the US domestic market.

⁶​  The J.P. Morgan Emerging Markets Bond Index Global (EMBI Global) is an unmanaged index which is designed to track total returns for US dollar denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans and Eurobonds. Investors should note that indices do not reflect the deduction of fees and expenses.

UBS All China Equity Fund

Portfolio performance

For the six-months ended December 31, 2023 (the "reporting period"), Class P shares of UBS All China Equity Fund (the "Fund") returned -9.46% while Class P2 shares returned -8.99%. The Fund's benchmark, the MSCI China All Shares Index (net) (the "Index"), returned -6.52% over the same time period. (Returns for all share classes over various time periods are shown on page 6; 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 benchmark during the reporting period. Stock selection was negative in financials and consumer discretionary. However, stock selection was positive in consumer staples and communication services. An underweight in industrials also boosted relative performance. On the stock level, not holding PDD Holdings and overweight in Ping An Insurance and China Merchants Bank were the main detractors, while TAL Education, Kweichow Moutai and CSPC Pharmaceutical were the main contributors.

Portfolio performance summary¹​

What worked:

  – In terms of stock selection, TAL Education was the top contributor to performance. We expect key structural growth drivers will be from rising market demand and increasing attention to non-academic AST (after-school tutoring) from parents, leading to increased capital spending. The market is highly fragmented, and we expect large institutions like TAL Education to gain market share by leveraging visible and consistent tutoring quality, appeal to high-quality tutors, and brand recognition.

  – Shares of Kweichow Moutai outperformed as the company announced a 20% price hike on the ex-factory price of its Feitian Moutai series, which was unexpected in the current environment. Apart from improving profitability, we believe that this is directionally positive for the company as its growth outlook remains strong versus other peers in the consumer sector.

  – CSPC Pharmaceutical was additive for performance. The company's first half of 2023 fiscal results showed positive revenue growth from a recovery in generic drugs, though profit growth remained pressured by challenges in the application segment. After a two-month anti-corruption campaign, the industry is recovering gradually with lighter news flow and some positive signals.

What didn't work:

•  Certain stock selection decisions detracted from performance during the reporting period.

  – Not owning shares of PDD Holdings detracted as the stock rallied over the period. The company reported better-than-expected results, where it saw strong revenue growth underpinned by higher market share gain, as well as improvement in profitability via higher take-rates. PDD Holdings' overseas expansion efforts continue to gain traction, and the robust momentum behind their shopping app, Temu, remains sustainable. We continue to own the stock.

  – Shares of Ping An Insurance slid on the back of rumors that the company has been asked by Chinese authorities to take a controlling stake in Country Garden. Ping An Insurance has formally denied the claim and currently does not hold any shares in the embattled property developer, though investor sentiments on life insurers remained weak over the period. We continue to own the stock.

  – Shares of China Merchants Bank underperformed amid a delay in policy stimulus rollout, weak macro data and continued concerns about the economy. The company reported weaker-than-expected earnings for the second quarter of 2023, with net interest income remaining under pressure amid weakening risk appetite and muted investment interest by customers. We continue to own the stock.     

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

UBS All China Equity Fund

Portfolio highlights

•  Kweichow Moutai is the market leader in ultra-premium Baijiu (local spirit) in China. Its key drivers are its strong brand, distribution, and pricing. It enjoys double-digit growth for premium Baijiu demand in China, aided by favorable demographics for their segment and rising incomes. Kweichow Moutai also has high barriers to entry, given deep linkages to local "heritage" sourcing requirements and long maturity period for premium spirit.

•  Tencent is the leading company in China's PC/mobile internet market, engaged in the provision of services such as instant messaging, online gaming, social community, news and online music. Tencent has established several powerful online service platforms and accumulated a huge number of loyal customers. We believe the company is well-positioned in China Internet and will benefit from "2B" (services to businesses) business growth and game expansion to overseas markets.

•  Netease is a leading online game company in China. It has a good track record for delivering blockbuster games and has had healthy growth for more than 10 years. We believe that the company continues to have a strong moat in the China gaming industry, supported by its large research and development (R&D) capacity, streamlined process, as well as shared supporting platforms.

•  We invest in Alibaba on the back of attractive valuations, normalization of sector regulations, and a stabilizing outlook on discretionary spending. We believe Alibaba's core commerce could see some stabilization with e-commerce industry recovery. On top of that, Alibaba is restructuring into six units, and some are scheduled to be spun off in initial public offerings (IPOs).

•  CSPC is an integrated pharmaceutical company in China, with generic drug and active pharmaceutical ingredient bulk business, vitamin C and caffeine. The company has transformed itself step-by-step to upgrade the business line with the basis of sustainable earning growth and healthy cashflow. CSPC is a solid company in key business areas and has high ESG criteria within the drug industry. Its core business in neurology and oncology are expected to be the big drivers for growth.

The Fund did not invest in derivatives during the reporting period.

This letter is intended to assist shareholders in understanding how the Fund performed during the six-months ended December 31, 2023. The views and opinions in the letter were current as of February 6, 2024. 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 website at www.ubs.com/am-us.

UBS All China Equity Fund

Average annual total returns for periods ended 12/31/23 (unaudited)

				6 months				1 year				Inception
Class P1,2​					(9.46	)%			(16.48	)%			(24.47	)%
Class P22,3​					(8.99	)			(15.72	)			(14.07	)
MSCI China All Shares Index (net)4​					(6.52	)			(11.53	)			(19.31	)

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 27, 2023 prospectuses were as follows: Class P—10.14% and 1.10% and Class P2—9.17% and 0.30%. 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., the Fund's investment advisor and administrator ("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, such as proxy-related 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 28, 2024, do not exceed 1.10% for Class P shares. The Advisor has also entered into a written agreement pursuant to which the Advisor has agreed to waive a portion of its management fees and retained administration fees, and/or to reimburse expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses, such as proxy-related 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, such as proxy related expenses), through the period ending October 28, 2024, do not exceed 0.30% for Class P2 shares. Pursuant to the written agreement, the Advisor is entitled to be reimbursed for any fees it waives and expenses it reimburses to the extent such reimbursement can be made during the three fiscal years following the date on which such fee waivers and expense reimbursements were made, provided that the reimbursement of the Advisor by the Fund will not cause the Fund to exceed the lesser of any applicable expense limit that is in place for the Fund (i) at the time of the waiver or reimbursement or (ii) at the time of the recoupment. 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​  Inception date of Class P is February 24, 2021.

²​  Class P and Class P2 shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but Class P and Class P2 shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

³​  Inception date of Class P2 is April 21, 2022.

⁴​  The MSCI China All Shares 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. Inception return for the Index is shown as of the inception date of the oldest share class: February 24, 2021.

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/en/assetmanagement/funds/mutual-fund-performance.

UBS All China Equity Fund

Portfolio statistics and industry diversification—(unaudited)¹​

As a percentage of net assets as of December 31, 2023

Top ten holdings

NetEase, Inc.					13.5	%
Kweichow Moutai Co. Ltd.					11.3
Tencent Holdings Ltd.					9.9
China Merchants Bank Co. Ltd.					6.9
Hong Kong Exchanges & Clearing Ltd.					4.7
Ping An Insurance Group Co. of China Ltd.					3.5
SSY Group Ltd.					3.3
CSPC Pharmaceutical Group Ltd.					3.2
Ping An Bank Co. Ltd.					3.2
AIA Group Ltd.					2.9
Total					62.4	%

Issuer breakdown by country or territory of origin

China					84.5	%
Hong Kong					10.9
United States					5.1
Total					100.5	%

 

Common stocks
Banks					10.1	%
Beverages					15.0
Broadline retail					2.7
Capital markets					4.7
Chemicals					1.5
Construction materials					0.5
Diversified consumer services					1.4
Entertainment					13.8
Financial services					1.6
Food products					3.6
Hotels, restaurants & leisure					2.1
Household durables					0.6
Insurance					6.4
Interactive media & services					9.9
IT services					1.4
Life sciences tools & services					4.0
Pharmaceuticals					9.7
Real estate management & development					4.3
Semiconductors & semiconductor equipment					1.0
Tobacco					0.3
Trading companies & distributors					0.1
Transportation infrastructure					0.7
Total common stocks					95.4
Short-term investments					5.1
Investment of cash collateral from securities loaned					2.0
Total investments					102.5
Liabilities in excess of other assets					(2.5	)
Net assets					100.0	%

¹  ​The portfolio is actively managed and its composition will vary over time.

UBS All China Equity Fund

Portfolio of investments

December 31, 2023 (unaudited)

				Number of shares				Value
Common stocks: 95.4%
China: 84.5%
Alibaba Group Holding Ltd.					5,400			$	52,282
Anhui Conch Cement Co. Ltd., Class H					6,500				15,017
Anhui Gujing Distillery Co. Ltd., Class B					5,200				79,114
China Jinmao Holdings Group Ltd.					82,000				7,876
China Merchants Bank Co. Ltd., Class H					55,500				193,328
China Resources Land Ltd.					22,000				78,888
Chinasoft International Ltd.					52,000				39,890
Country Garden Services Holdings Co. Ltd.1​					7,000				6,051
CSPC Pharmaceutical Group Ltd.					96,000				89,257
Far East Horizon Ltd.					56,000				44,034
Hainan Meilan International Airport Co. Ltd., Class H*					23,000				20,412
Hangzhou Silan Microelectronics Co. Ltd., Class A					8,500				27,362
Horizon Construction Development Ltd.*					2,074				1,219
Inner Mongolia Yili Industrial Group Co. Ltd., Class A					21,600				81,470
JD.com, Inc., Class A					1,509				21,741
Jiangsu Hengrui Pharmaceuticals Co. Ltd., Class A					7,500				47,831
Joinn Laboratories China Co. Ltd., Class H1,2​					20,272				33,386
Kingsoft Corp. Ltd.					3,000				9,259
Kweichow Moutai Co. Ltd., Class A					1,300				316,376
Longfor Group Holdings Ltd.2​					18,000				28,815
Meituan, Class B*,2​					5,590				58,631
Midea Group Co. Ltd., Class A					2,100				16,176
NetEase, Inc.					21,000				378,126
Ping An Bank Co. Ltd., Class A					67,000				88,707
Ping An Insurance Group Co. of China Ltd., Class H					21,500				97,333
Smoore International Holdings Ltd.1,2​					11,000				9,157
TAL Education Group, ADR*					3,168				40,012
Tencent Holdings Ltd.					7,400				278,240
Wanhua Chemical Group Co. Ltd., Class A					1,400				15,164
Wuliangye Yibin Co. Ltd., Class A					1,300				25,719
WuXi AppTec Co. Ltd., Class H1,2​					5,600				56,979
Wuxi Biologics Cayman, Inc.*,2​					5,500				20,849

				Number of shares				Value
Common stocks—(concluded)
China—(concluded)
WuXi XDC Cayman, Inc.*					11			$	45
Yihai International Holding Ltd.1​					12,000				19,056
Yunnan Baiyao Group Co. Ltd., Class A					6,020				41,719
Yunnan Energy New Material Co. Ltd., Class A					3,400				27,240
									2,366,761
Hong Kong: 10.9%
AIA Group Ltd.					9,400				81,920
Hong Kong Exchanges & Clearing Ltd.					3,800				130,422
SSY Group Ltd.					148,000				93,631
									305,973
Total common stocks (cost $4,074,761)									2,672,734
Short-term investments: 5.1%
Investment companies: 5.1%
State Street Institutional U.S. Government Money Market Fund, 5.316%3 ​(cost $142,122)					142,122				142,122
Investment of cash collateral from securities loaned: 2.0%
Money market funds: 2.0%
State Street Navigator Securities Lending Government Money Market Portfolio, 5.308%3 ​(cost $57,190)					57,190				57,190
Total investments: 102.5% (cost $4,274,073)									2,872,046
Liabilities in excess of other assets: (2.5%)									(71,413	)
Net assets: 100.0%								$	2,800,633

For a listing of defined portfolio acronyms that are used throughout the Portfolio of investments as well as the tables that follow, please refer to the Glossary of terms used in the Portfolio of investments.

UBS All China Equity Fund

Portfolio of investments

December 31, 2023 (unaudited)

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of December 31, 2023 in valuing the Fund's investments. In the event a fund holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments:

Description				Unadjusted quoted prices in active market for identical investments (Level 1)				Other significant observable inputs (Level 2)				Unobservable inputs (Level 3)				Total
Assets
Common stocks				$	2,672,734			$	—			$	—			$	2,672,734
Short-term investments					—				142,122				—				142,122
Investment of cash collateral from securities loaned					—				57,190				—				57,190
Total				$	2,672,734			$	199,312			$	—			$	2,872,046

At December 31, 2023, there were no transfers in or out of Level 3.

Portfolio footnotes

*  Non-income producing security.

¹​  Security, or portion thereof, was on loan at the period end.

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 registrations, normally to qualified institutional buyers. Securities exempt from registration pursuant to Rule 144A, in the amount of $207,817, represented 7.4% of the Fund's net assets at period end.

³​  Rates shown reflect yield at December 31, 2023.

UBS Global Allocation Fund

Portfolio performance

For the six-months ended December 31, 2023 (the "reporting period"), Class A shares of UBS Global Allocation Fund (the "Fund") returned 4.68% (Class A shares returned -1.04% after the deduction of the maximum sales charge), while Class P shares returned 4.78%. In contrast, the Fund's benchmark, the MSCI All Country World Index (net), returned 7.26% during the same time period. For comparison purposes, the 60% MSCI All Country World Index (net)/40% Citigroup World Government Bond Index (Hedged in USD) returned 5.76% and the FTSE World Government Bond Index (Hedged in USD) returned 3.34%. (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 11; 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 positive total return during the reporting period; however, it lagged its primary benchmark on a relative basis. Tactical asset allocation decisions detracted from performance, whereas security selection contributed to results.

During the review period, we used derivatives for risk management purposes and as a tool to help enhance returns in the portfolio. We used a variety of equity and fixed income options, futures and swaps to implement our tactical asset allocation strategy.

Portfolio performance summary

•  Bottom-up security selection contributed to performance.

  – The US large-cap value and Emerging Markets Equity Opportunity strategies contributed to performance and drove security selection. However, US large-cap growth, PACE High Yield Investments, PACE International Emerging Markets Equity Investments, PACE International Equity Investments, and the International developed equity HALO strategies detracted from performance.

•  Active asset allocation decisions detracted from performance.

  – Overall, tactical asset allocation in equities and fixed income detracted from returns, while currency decisions were flat.

  – Within equities, the largest detractor was our US equity positioning. Specifically, an overweight to US mid-caps over US large-caps detracted from returns given the fact that growth stocks rallied throughout 2023. Furthermore, US sector positioning underperformed as strong oil supply kept energy stock prices depressed. In addition, an underweight to Australian equities detracted from performance as equity markets rallied to their highest level in 20 months led by iron ore stocks. On the upside, overweights to European Union banks, Japanese equities, and emerging markets ex-China contributed to returns.

  – Within fixed income, overall duration positioning detracted from performance over the reporting period, as did an overweight to securitized credit.

  – Within currency, the largest contributor to performance were long positions to various Latin American currencies versus the US dollar. In addition, a long euro versus Great Britain pound contributed to performance.

This letter is intended to assist shareholders in understanding how the Fund performed during the six-months ended December 31, 2023. The views and opinions in the letter were current as of February 6, 2024. 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 website at www.ubs.com/am-us.

UBS Global Allocation Fund

Average annual total returns for periods ended 12/31/23 (unaudited)

				6 months				1 year				5 years				10 years
Before deducting maximum sales charge
Class A1​					4.68	%			9.43	%			5.75	%			4.16	%
Class P2​					4.78				9.68				6.00				4.42
After deducting maximum sales charge
Class A1​					(1.04	)%			3.39	%			4.56	%			3.57	%
MSCI All Country World Index (net)3​					7.26				22.20				11.72				7.93
FTSE World Government Bond Index (Hedged in USD)4​					3.34				6.42				0.68				2.13
60% MSCI All Country World Index (net)/40% FTSE World Government Bond Index (Hedged in USD)5​					5.76				15.81				7.53				5.84

The annualized gross and net expense ratios, respectively, for each class of shares as in the October 27, 2023 prospectuses were as follows: Class A—1.58% and 1.31%; Class P—1.30% and 1.06%. 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., the Fund's investment advisor and administrator ("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, such as proxy-related expenses), through the period ending October 28, 2024, do not exceed 1.20% for Class A 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 to the extent such reimbursement can be made during the three fiscal years following the date on which such fee waivers and expense reimbursements were made, provided that the reimbursement of the Advisor by the Fund will not cause the Fund to exceed the lesser of any applicable expense limit that is in place for the Fund (i) at the time of the waiver or reimbursement or (ii) at the time of the recoupment. 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​  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.

³​  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.

⁴​  The FTSE 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.

⁵​  The 60% MSCI All Country World Index (net)/40% FTSE World Government Bond Index (Hedged in USD) is an unmanaged blended benchmark compiled by the Advisor. Investors should note that indices do not reflect the deduction of fees and expenses.

Prior to August 3, 2015, a 1% redemption fee was imposed on sales or exchanges of any class of shares of the Fund made during the specified holding period.

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/en/assetmanagement/funds/mutual-fund-performance.

UBS Global Allocation Fund

Portfolio statistics and industry diversification—(unaudited)¹​

As a percentage of net assets as of December 31, 2023

Top ten fixed income holdings

U.S. Treasury Inflation-Indexed Notes, 1.375% due 07/15/33					3.5	%
New Zealand Government Bonds Inflation-Linked, 2.000% due 09/20/25					1.4
U.S. Treasury Notes, 0.625% due 08/15/30					0.6
Morgan Stanley, 4.889% due 07/20/33					0.6
Wells Fargo & Co., 4.897% due 07/25/33					0.6
Uniform Mortgage-Backed Security, TBA, 5.000%					0.5
Broadcom, Inc., 4.300% due 11/15/32					0.5
General Motors Co., 5.400% due 10/15/29					0.5
Bank of America Corp., 2.299% due 07/21/32					0.5
Oracle Corp., 6.250% due 11/09/32					0.5
Total					9.2	%

Top ten equity holdings

PACE International Equity Investments, Class P2					9.7	%
PACE International Emerging Markets Equity Investments, Class P2					6.5
UBS Emerging Markets Equity Opportunity Fund, Class P2					6.4
PACE High Yield Investments, Class P2					5.5
iShares J.P. Morgan USD Emerging Markets Bond ETF					5.2
SPDR Portfolio High Yield Bond ETF					4.5
iShares MSCI Emerging Markets ex China ETF					2.0
UBS All China Equity Fund, Class P2					1.3
Microsoft Corp.					1.2
Alphabet, Inc., Class A					0.9
Total					43.2	%

Top five issuer breakdown by country or territory of origin

United States					86.1	%
Japan					2.4
United Kingdom					1.6
New Zealand					1.4
Netherlands					1.1
Total					92.6	%

¹​  The portfolio is actively managed and its composition will vary over time.

³​  Figures represent the direct investments of UBS Global Allocation Fund. If a breakdown of the underlying investment companies and exchange traded funds was included, the country or territory of origin breakdown would be as follows: United States: 69.2%, Japan: 3.6%, South Africa: 0.5%, United Kingdom: 8.0% and Canada: 2.3%.

UBS Global Allocation Fund

Portfolio statistics and industry diversification—(unaudited)¹​

As a percentage of net assets as of December 31, 2023

Common stocks
Aerospace & defense					0.1	%
Automobile components					0.5
Automobiles					0.2
Banks					1.4
Beverages					0.6
Biotechnology					0.8
Broadline retail					0.7
Building products					0.1
Capital markets					1.0
Chemicals					0.6
Consumer finance					0.4
Consumer staples distribution & retail					0.5
Diversified consumer services					0.2
Diversified telecommunication services					0.4
Electric utilities					0.2
Electrical equipment					0.3
Electronic equipment, instruments & components					0.6
Entertainment					0.7
Financial services					0.8
Food products					0.6
Ground transportation					0.7
Health care equipment & supplies					0.9
Health care providers & services					0.9
Hotels, restaurants & leisure					0.3
Household durables					0.3
Industrial conglomerates					0.1
Industrial REITs					0.2
Insurance					0.9
Interactive media & services					1.0
IT services					0.1
Leisure products					0.2
Life sciences tools & services					0.6
Machinery					0.6
Media					0.4
Metals & mining					0.2
Oil, gas & consumable fuels					1.2
Passenger airlines					0.1
Personal care products					0.5
Pharmaceuticals					0.7
Professional services					0.2
Semiconductors & semiconductor equipment					1.6
Software					2.2
Specialty retail					0.2
Technology hardware, storage & peripherals					0.9
Textiles, apparel & luxury goods					0.5
Tobacco					0.2
Trading companies & distributors					0.7
Wireless telecommunication services					0.2
Total common stocks					27.3
Exchange traded funds					11.6
Investment companies					29.4

 

Corporate bonds
Auto manufacturers					0.5	%
Banks					3.1
Diversified financial services					1.0
Electric					0.9
Healthcare-services					0.1
Machinery-diversified					0.4
Media					1.4
Oil & gas					0.5
Pipelines					0.5
Semiconductors					0.5
Software					0.5
Telecommunications					0.3
Total corporate bonds					9.7
Asset-backed securities					1.6
Mortgage-backed securities					0.8
Non-U.S. government agency obligations					4.1
U.S. government agency obligations					6.2
U.S. Treasury obligations					7.3
Short-term investments					1.7
Investment of cash collateral from securities loaned					5.9
Total investments					105.6
Liabilities in excess of other assets					(5.6	)
Net assets					100.0	%

UBS Global Allocation Fund

Portfolio of investments

December 31, 2023 (unaudited)

				Number of shares				Value
Common stocks: 27.3%
Australia: 0.2%
Glencore PLC					62,855			$	378,238
Austria: 0.2%
BAWAG Group AG1​					7,429				393,496
Canada: 0.5%
Canadian Pacific Kansas City Ltd.2​					6,374				504,321
Shopify, Inc., Class A*					3,000				233,700
									738,021
Denmark: 0.2%
Genmab AS*					876				279,559
France: 0.4%
Cie Generale des Etablissements Michelin SCA					6,882				246,611
Pernod Ricard SA					1,541				271,765
Ubisoft Entertainment SA*					4,243				108,248
									626,624
Germany: 0.5%
Infineon Technologies AG					10,553				440,370
Knorr-Bremse AG					6,212				403,235
									843,605
Hong Kong: 0.3%
AIA Group Ltd.					50,817				442,863
India: 0.3%
HDFC Bank Ltd., ADR					6,639				445,543
Ireland: 0.3%
AIB Group PLC					101,669				435,482
Italy: 0.4%
PRADA SpA					58,700				335,654
Wizz Air Holdings PLC*,1​					8,785				247,583
									583,237
Japan: 1.8%
ITOCHU Corp.2​					11,600				474,448
JTOWER, Inc.*,2​					5,100				180,851
Keyence Corp.					800				352,454
Nippon Telegraph & Telephone Corp.					388,000				474,130
Shin-Etsu Chemical Co. Ltd.					10,600				444,824
SoftBank Group Corp.					5,800				258,861
Sony Group Corp.					4,700				447,000
TechnoPro Holdings, Inc.					10,200				268,745
									2,901,313
Netherlands: 1.1%
Heineken Holding NV					3,164				267,556
Koninklijke Philips NV					20,597				479,432
Shell PLC					25,486				835,370
Universal Music Group NV					8,984				255,981
									1,838,339

				Number of shares				Value
Common stocks—(continued)
South Korea: 0.2%
Samsung Electronics Co. Ltd.					5,831			$	355,411
Spain: 0.2%
Banco de Sabadell SA					308,405				378,936
Sweden: 0.2%
Hexpol AB					23,815				288,064
Switzerland: 0.7%
Alcon, Inc.					4,968				387,729
Novartis AG, Registered Shares					5,681				573,267
Sandoz Group AG*					5,799				186,578
									1,147,574
United Kingdom: 1.3%
Ashtead Group PLC					5,989				416,963
British American Tobacco PLC					9,488				277,615
Legal & General Group PLC					93,921				300,608
London Stock Exchange Group PLC					4,161				491,876
Spectris PLC					5,889				283,667
Unilever PLC					6,289				304,474
									2,075,203
United States: 18.5%
AbbVie, Inc.					6,175				956,940
Adobe, Inc.*					457				272,646
Agilent Technologies, Inc.					1,672				232,458
Airbnb, Inc., Class A*					120				16,337
Allstate Corp.					1,958				274,081
Alphabet, Inc., Class A*					9,867				1,378,321
Amazon.com, Inc.*					7,181				1,091,081
American Express Co.					1,251				234,362
Ameriprise Financial, Inc.					1,546				587,217
APA Corp.					8,011				287,435
Apple, Inc.					5,846				1,125,530
Aptiv PLC*					6,074				544,959
Bio-Rad Laboratories, Inc., Class A*					1,673				540,195
BlackRock, Inc.					463				375,863
Broadcom, Inc.					605				675,331
Brunswick Corp.					2,855				276,221
Bunge Global SA					4,917				496,371
Centene Corp.*					4,410				327,266
CF Industries Holdings, Inc.					2,917				231,902
Chegg, Inc.*					24,810				281,842
Chipotle Mexican Grill, Inc.*					107				244,705
Comcast Corp., Class A					10,780				472,703
Constellation Brands, Inc., Class A					945				228,454
Cooper Cos., Inc.					476				180,137
Dexcom, Inc.*					1,466				181,916
Dollar Tree, Inc.*					3,578				508,255
Dynatrace, Inc.*					3,471				189,829
Eli Lilly & Co.					497				289,711
EOG Resources, Inc.					1,101				133,166
Exxon Mobil Corp.					1,542				154,169
Fidelity National Information Services, Inc.					6,061				364,084

UBS Global Allocation Fund

Portfolio of investments

December 31, 2023 (unaudited)

				Number of shares				Value
Common stocks—(concluded)
United States—(concluded)
Haleon PLC					132,260			$	542,254
Hayward Holdings, Inc.*					15,709				213,642
Honeywell International, Inc.					1,136				238,231
HubSpot, Inc.*					425				246,730
Ingersoll Rand, Inc.					6,872				531,481
IQVIA Holdings, Inc.*					850				196,673
Keysight Technologies, Inc.*					2,501				397,884
Laboratory Corp. of America Holdings					1,556				353,663
Las Vegas Sands Corp.					4,549				223,856
LivaNova PLC*					4,432				229,312
Live Nation Entertainment, Inc.*					2,362				221,083
Lululemon Athletica, Inc.*					374				191,222
Lyft, Inc., Class A*					21,901				328,296
Marsh & McLennan Cos., Inc.					1,996				378,182
Marvell Technology, Inc.					2,659				160,364
Mastercard, Inc., Class A					1,376				586,878
Meta Platforms, Inc., Class A*					677				239,631
Micron Technology, Inc.					3,906				333,338
Microsoft Corp.					5,097				1,916,676
Mondelez International, Inc., Class A					6,302				456,454
Monster Beverage Corp.*					2,331				134,289
MSCI, Inc.					226				127,837
NextEra Energy, Inc.					5,002				303,822
NIKE, Inc., Class B					2,404				261,002
NVIDIA Corp.					1,784				883,473
Oracle Corp.					2,846				300,054
Palo Alto Networks, Inc.*					814				240,032
Prologis, Inc.					2,776				370,041
Regal Rexnord Corp.					2,545				376,711
ServiceNow, Inc.*					377				266,347
Shoals Technologies Group, Inc., Class A*					4,141				64,351
SLM Corp.					19,289				368,806
Take-Two Interactive Software, Inc.*					3,219				518,098
Tesla, Inc.*					1,236				307,121
TJX Cos., Inc.					2,822				264,732
Trade Desk, Inc., Class A*					2,648				190,550
TransDigm Group, Inc.					214				216,482
Ulta Beauty, Inc.*					287				140,627
Union Pacific Corp.					922				226,462
United Rentals, Inc.					297				170,306
UnitedHealth Group, Inc.					1,375				723,896
Voya Financial, Inc.					4,322				315,333
Walmart, Inc.					1,554				244,988
Wells Fargo & Co.					11,943				587,835
Williams Cos., Inc.					16,548				576,367
Zoom Video Communications, Inc., Class A*					1,449				104,198
									29,423,097
Total common stocks (cost $35,685,123)									43,574,605

				Face amount3​				Value
Asset-backed securities: 1.6%
Cayman Islands: 0.2%
Dryden 60 CLO Ltd., Series 2018-60A, Class A, 3 mo. USD Term SOFR + 1.312%, 6.706%, due 07/15/311,4​					246,471			$	246,423
United States: 1.4%
AmeriCredit Automobile Receivables Trust Series 2019-2, Class D, 2.990%, due 06/18/25					145,287				145,070
Series 2020-2, Class C, 1.480%, due 02/18/26					320,838				315,237
Series 2022-1, Class A3, 2.450%, due 11/18/26					107,853				105,760
DT Auto Owner Trust, Series 2021-1A, Class D, 1.160%, due 11/16/261​					100,000				95,633
Exeter Automobile Receivables Trust Series 2021-1A, Class D, 1.080%, due 11/16/26					125,000				120,924
Series 2022-2A, Class B, 3.650%, due 10/15/26					81,065				80,656
Series 2023-2A, Class A2, 5.870%, due 11/17/25					181,098				181,083
Series 2023-4A, Class A2, 6.070%, due 12/15/25					250,000				250,092
GLS Auto Receivables Issuer Trust, Series 2020-2A, Class C, 4.570%, due 04/15/261​					103,086				102,557
HPEFS Equipment Trust, Series 2022-1A, Class B, 1.790%, due 05/21/291​					200,000				195,407
OneMain Financial Issuance Trust, Series 2020-2A, Class B, 2.210%, due 09/14/351​					100,000				89,405
Santander Drive Auto Receivables Trust Series 2020-2, Class D, 2.220%, due 09/15/26					85,807				84,774
Series 2020-4, Class D, 1.480%, due 01/15/27					198,734				194,359
Series 2023-4, Class A2, 6.180%, due 02/16/27					306,651				307,475
									2,268,432
Total asset-backed securities (cost $2,519,313)									2,514,855
Corporate bonds: 9.7%
Canada: 0.5%
Canadian Imperial Bank of Commerce 3.945%, due 08/04/25					810,000				797,072

UBS Global Allocation Fund

Portfolio of investments

December 31, 2023 (unaudited)

				Face amount3​				Value
Corporate bonds—(concluded)
United States: 9.2%
Air Lease Corp. 5.300%, due 02/01/28					750,000			$	758,260
American Express Co. 3.950%, due 08/01/25					810,000				796,900
Bank of America Corp. (fixed, converts to FRN on 07/21/31), 2.299%, due 07/21/324​					1,000,000				816,537
Broadcom, Inc. 4.300%, due 11/15/32					900,000				863,428
Centene Corp. 2.450%, due 07/15/28					250,000				222,650
Charter Communications Operating LLC/ Charter Communications Operating Capital 4.908%, due 07/23/25					810,000				802,300
Cheniere Energy Partners LP 4.500%, due 10/01/29					810,000				774,738
Citigroup, Inc. (fixed, converts to FRN on 04/24/24), 3.352%, due 04/24/254​					810,000				803,795
Comcast Corp. 5.250%, due 11/07/25					540,000				545,712
Discovery Communications LLC 3.625%, due 05/15/30					900,000				815,756
General Motors Co. 5.400%, due 10/15/29					810,000				824,419
John Deere Capital Corp. 4.800%, due 01/09/26					650,000				653,452
JPMorgan Chase & Co. 3.625%, due 12/01/27					810,000				777,264
Morgan Stanley (fixed, converts to FRN on 07/20/32), 4.889%, due 07/20/334​					900,000				877,562
Oracle Corp. 6.250%, due 11/09/32					750,000				815,914
Pacific Gas & Electric Co. 4.550%, due 07/01/30					750,000				714,283
Southern California Edison Co. 5.850%, due 11/01/27					630,000				657,856
Southwestern Energy Co. 5.375%, due 02/01/29					750,000				731,920
T-Mobile USA, Inc. 3.500%, due 04/15/31					540,000				493,662
Wells Fargo & Co. (fixed, converts to FRN on 07/25/32), 4.897%, due 07/25/334​					900,000				876,757
									14,623,165
Total corporate bonds (cost $15,201,645)									15,420,237

				Face amount3​				Value
Mortgage-backed securities: 0.8%
United States: 0.8%
Bank, Series 2022-BNK39, Class A4, 2.928%, due 02/15/554​					200,000			$	172,286
BWAY Mortgage Trust, Series 2013-1515, Class A2, 3.454%, due 03/10/331​					100,000				93,876
Citigroup Commercial Mortgage Trust, Series 2019-SMRT, Class C, 4.682%, due 01/10/361​					345,000				344,425
Extended Stay America Trust, Series 2021-ESH, Class D, 1 mo. USD Term SOFR + 2.364%, 7.727%, due 07/15/381,4​					140,016				137,554
Flagstar Mortgage Trust, Series 2018-5, Class A2, 4.000%, due 09/25/481,4​					45,735				42,904
Hudson Yards Mortgage Trust, Series 2016-10HY, Class A, 2.835%, due 08/10/381​					100,000				92,931
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2021-2NU, Class D, 2.077%, due 01/05/401,4​					125,000				88,273
MFA Trust Series 2020-NQM3, Class A1, 1.014%, due 01/26/651,4​					20,347				18,221
Series 2021-NQM1, Class A1, 1.153%, due 04/25/651,4​					24,346				22,101
New Residential Mortgage Loan Trust, Series 2021-NQ2R, Class A1, 0.941%, due 10/25/581,4​					48,188				43,830
Residential Mortgage Loan Trust, Series 2020-2, Class A1, 1.654%, due 05/25/601,4​					20,038				19,743
Verus Securitization Trust Series 2019-4, Class A1, 3.642%, due 11/25/591,4​					9,882				9,572
Series 2020-5, Class A1, 1.218%, due 05/25/651,4​					25,900				23,921
Series 2021-R2, Class A1, 0.918%, due 02/25/641,4​					38,931				34,257
Series 2021-R3, Class A1, 1.020%, due 04/25/641,4​					50,650				45,019
Wells Fargo Commercial Mortgage Trust, Series 2018-C45, Class AS, 4.405%, due 06/15/514​					130,000				121,721
Total mortgage-backed securities (cost $1,404,771)									1,310,634
Non-U.S. government agency obligations: 4.1%
Australia: 0.1%
Australia Government Bonds 3.250%, due 04/21/295​				AUD	275,000				183,513

UBS Global Allocation Fund

Portfolio of investments

December 31, 2023 (unaudited)

				Face amount3​				Value
Non-U.S. government agency obligations—(continued)
Austria: 0.0%†​
Republic of Austria Government Bonds 3.150%, due 06/20/445​				EUR	45,000			$	51,714
Belgium: 0.1%
Kingdom of Belgium Government Bonds 3.750%, due 06/22/455​				EUR	73,000				89,071
Canada: 0.1%
Canada Government Bonds 1.500%, due 09/01/24				CAD	120,000				88,692
2.000%, due 12/01/51				CAD	50,000				30,372
2.500%, due 12/01/32				CAD	100,000				71,934
									190,998
Finland: 0.0%†​
Finland Government Bonds 1.375%, due 04/15/475​				EUR	20,000				16,742
France: 0.5%
French Republic Government Bonds OAT 0.000%, due 11/25/315,6​				EUR	565,000				518,149
0.010%, due 05/25/325,6​				EUR	75,000				67,764
0.500%, due 05/25/405​				EUR	75,000				57,337
3.250%, due 05/25/455​				EUR	81,000				93,274
									736,524
Germany: 0.1%
Bundesrepublik Deutschland Bundesanleihe 2.500%, due 07/04/445​				EUR	116,000				132,261
Ireland: 0.1%
Ireland Government Bonds 1.500%, due 05/15/505​				EUR	240,000				198,763
Italy: 0.3%
Italy Buoni Poliennali Del Tesoro 0.950%, due 12/01/315​				EUR	145,000				133,128
1.650%, due 03/01/325​				EUR	60,000				57,920
3.000%, due 08/01/295​				EUR	140,000				153,969
3.250%, due 09/01/465​				EUR	75,000				71,881
4.000%, due 02/01/375​				EUR	98,000				109,487
									526,385
Japan: 0.6%
Japan Government CPI-Linked Bonds 0.005%, due 03/10/31				JPY	53,670,500				407,668
Japan Government Forty Year Bonds 0.500%, due 03/20/59				JPY	15,000,000				72,620
Japan Government Thirty Year Bonds 0.300%, due 06/20/46				JPY	11,100,000				60,849
Japan Government Twenty Year Bonds 0.400%, due 03/20/36				JPY	70,000,000				470,549
									1,011,686

				Face amount3​				Value
Non-U.S. government agency obligations—(concluded)
New Zealand: 1.4%
New Zealand Government Bonds Inflation-Linked 2.000%, due 09/20/255,7​				NZD	3,544,020			$	2,235,915
Spain: 0.5%
Spain Government Bonds 1.450%, due 10/31/275​				EUR	165,000				175,068
1.500%, due 04/30/275​				EUR	97,000				103,541
3.450%, due 07/30/665​				EUR	10,000				10,293
4.200%, due 01/31/375​				EUR	44,000				53,691
4.800%, due 01/31/245​				EUR	276,000				304,863
5.150%, due 10/31/445​				EUR	59,000				80,986
									728,442
United Kingdom: 0.3%
U.K. Gilts 1.000%, due 01/31/325​				GBP	114,000				120,455
1.250%, due 07/31/515​				GBP	130,000				88,254
1.625%, due 10/22/285​				GBP	94,000				110,958
3.500%, due 01/22/455​				GBP	90,000				104,520
3.750%, due 10/22/535​				GBP	40,000				47,623
									471,810
Total non-U.S. government agency obligations (cost $7,576,315)									6,573,824
U.S. government agency obligations: 6.2%
United States: 6.2%
Federal Home Loan Mortgage Corp. 1.500%, due 10/01/51					307,872				239,929
2.000%, due 02/01/51					863,084				708,913
2.000%, due 01/01/52					317,775				260,923
2.500%, due 11/01/50					199,699				173,570
3.000%, due 01/01/52					123,700				109,390
4.500%, due 08/01/52					206,453				200,174
Federal National Mortgage Association 2.000%, due 03/01/51					569,306				472,014
2.000%, due 04/01/51					238,428				196,789
2.500%, due 08/01/51					382,370				326,423
2.500%, due 08/01/51					231,867				198,970
2.500%, due 11/01/51					472,489				404,553
2.500%, due 02/01/52					237,252				205,000
3.000%, due 08/01/50					453,165				408,354
3.000%, due 03/01/52					372,736				333,962
3.500%, due 02/01/49					430,488				400,572
4.000%, due 05/01/51					409,840				393,772
4.500%, due 01/01/53					430,927				417,820
Government National Mortgage Association 2.000%, due 01/20/52					480,887				406,381
2.500%, due 08/20/51					538,303				471,224
3.000%, due 10/20/45					68,169				62,637
3.000%, due 12/20/45					77,812				71,497
3.000%, due 04/20/52					223,228				201,762
3.500%, due 01/20/50					207,072				194,464