Rule 425 Filing for UBS Funds
Filing by The UBS Funds pursuant
to Rule 425 under the Secutities
Act of 1933, as amended.
Subject Company: UBS Managed
Investments Trust
IC File No.: 811-04040
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UBS
UBS Global Asset Management (US) Inc.
51 West 52nd Street
New York, NY
10019
www.ubs.com
Brian M. Storms
President, UBS Funds
Tel: 212-882 5000
December 18, 2002
Dear Shareholder,
In our ongoing effort to ensure that you receive the highest quality investment
management expertise, we are proposing to merge the UBS Strategy Fund (Strategy
Fund) into the UBS Global Equity Fund (Global Equity Fund). The enclosed
supplement to the Strategy Fund prospectus provides more details about the
proposed merger.
Why are we proposing this merger?
When the Strategy Fund was launched, the Fund's investment adviser, then known
as Mitchell Hutchins Asset Management ("Mitchell Hutchins"), had no affiliation
with UBS AG. Approximately eighteen months later, Mitchell Hutchins became part
of UBS AG's asset management division and began offering UBS's vast investment
management capabilities.
The Global Equity Fund, managed by UBS Global Asset Management, and the Strategy
Fund are both global in scope and have similar investment objectives. However,
the Global Equity Fund is an actively managed portfolio that currently holds
more than 160 securities across 12 global sectors and provides greater
diversification than the Strategy Fund. Additionally, the Global Equity Fund has
more investment flexibility since its investments are not limited to only those
stocks that are included in UBS Warburg's Global 50 Highlighted StocksSM list,
which is a requirement imposed on the Strategy Fund by its prospectus. Given
these benefits, we believe that the merger is in your best interest.
Performance1
The Global Equity Fund has outperformed the Strategy Fund over the Strategy
Fund's three-year lifespan with an average annual return of -7.38% versus
-24.74%, respectively (December 2, 1999 to December 2, 2002). Below you will
find additional performance information with respect to both Funds and their
benchmarks, as of October 31, 2002.
As of October 31, 2002
YTD 1 Yr. 3 Yrs. 5 Yrs. Life
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UBS Global Equity Fund Class A Shares -17.11% -10.89% -6.57% -0.66% -1.18%
After maximum sales charge -21.70% -15.82% -8.31% -1.78% -2.22%
MSCI World Equity (Free) Index -19.80% -14.50% -13.46% -1.24% --
UBS Strategy Fund Class A Shares -20.00% -6.78% -- -- -24.57%
After maximum sales charge -24.40% -11.82% -- -- -25.97%
Dow Jones World Index -20.34% -14.64% -13.80% -2.66% --
S&P 500 Index -21.83% -15.10% -12.22% 0.73% --
UBS Global Asset Management (US) Inc. is a subsidiary of UBS AG
What additional benefits will the proposed merger provide to you?
We believe the proposed merger also offers the following benefits:
• Access to an experienced portfolio management team with an average of more
than 20 years of investment experience in both up and down markets.
• A disciplined investment style. UBS Global Equity Fund is based on the
Global Equity Strategy, which has been available to institutional investors
for more than 20 years using a disciplined investment process.
What are the advantages of active management by UBS Global Asset Management?
• A truly integrated global investment platform that is supported by 86
analysts located in 12 countries, who follow more than 3,000 individual
companies.
• An investment philosophy focused on intrinsic value. Our investment
management teams employ an investment research process that looks to
identify discrepancies between security prices and values arising from
market behavior that they believe indicate a likelihood that a security
will outperform the market.
• A leader in risk management and asset allocation. We have a dedicated team
of 49 asset allocation and risk management professionals who use a
state-of-the-art, proprietary risk management system to help our portfolio
managers minimize risk and maximize return potential.
• A commitment to exceptional research. We strive to look at things in an
unconventional manner and identify emerging trends before critical shifts
take place in the markets.
What happens next?
In a few weeks, you will be receiving a proxy statement that explains in detail
the proposed merger of the UBS Strategy Fund into the UBS Global Equity Fund. If
you have any questions about the proposed merger, please contact your financial
advisor or UBS Global Asset Management Client Services at 800-647 1568.
Yours sincerely,
Brian M. Storms
President and Chief Executive Officer
UBS Global Asset Management (US) Inc.
Enclosure
For more complete information about UBS Strategy Fund or UBS Global Equity Fund,
including information regarding sales charges and expenses, please contact your
financial advisor for a prospectus for either Fund. Please read the prospectus
carefully before investing.
A Proxy Statement on Form N-14 will be filed with Securities and Exchange
Commission (SEC) and will be mailed to shareholders at no cost. This Proxy
Statement will contain important information about the proposed merger,
including information about the expenses, investment objectives and policies of
UBS Strategy Fund and UBS Global Equity Fund. The Proxy Statement will contain
important information. Please read it carefully.
You may review and copy information about the Fund, including the Proxy
Statement, when available, shareholder reports and the SAI, at the Public
Reference Room of the SEC. You may obtain information about the operations of
the SEC's Public Reference Room by calling the SEC at 202-942 8090. You can get
copies of reports and other information about the Fund:
• For a fee, by electronic request at publicinfo@sec.gov or by writing the
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SEC's Public Reference Section, Washington, D.C. 20549-0102; or
• Free from the EDGAR Database on the SEC's Web Site at http://www.sec.gov.
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1 Performance is for Class A shares after deducting maximum sales charge. The
performance for the period 12/2/99 - 12/2/02, prior to deducting sales charges,
was -5.62% for Global Equity Fund and -23.31% for Strategy Fund. Other share
classes are offered and their returns will vary depending on expenses and sales
charges. Performance is historical and does not represent future performance.
UBS Strategy Fund Class A shares commenced operations on December 2, 1999. UBS
Global Equity Fund Class A shares commenced operations on June 30, 1997. Class A
shares are subject to a maximum initial sales charge of 5.50% and ongoing 12b-1
service fees. Purchases of $1 million or more are not subject to an initial
sales charge; however, there is a 1% contingent-deferred sales charge for
redemptions of purchases made within one year. The MSCI World Equity (free)
Index is a broad-based index that represents the U.S. and developed non-U.S.
equity markets in terms of capitalization and performance. It is designed to
provide a representative total return for all major stock exchanges located
inside and outside the U.S. The S&P 500 Index is an unmanaged, weighted index
comprising 500 widely held common stocks varying in composition and is
unavailable for investment. The Dow Jones World Index is a broad market
benchmark that covers 34 countries and the 10 economic sectors, 18 market
sectors, 51 industry groups and 89 subgroups.