Update: UBS Global AM US Money Market Funds
In light of recent events surrounding Lehman Brothers and the financial services sector, the following is intended to address concerns some clients may have about UBS Global Asset Management's Taxable US Money Market Funds (collectively referred to herein as the "Funds").1
As of September 15, 2008, the Funds had:
No (0%) exposure to securities of Lehman Brothers Inc. or other Lehman affiliates
No (0%) exposure to securities of AIG or other AIG affiliates
As of September 15, 2008, the Funds had 0% exposure to securities issued by Morgan Stanley, Merrill Lynch, Goldman Sachs or Washington Mutual
The Taxable US Money Market Funds continue to utilize Merrill Lynch, Morgan Stanley and Goldman Sachs as overnight repo counterparties (collateralized by 102% with US Treasury and US government agency securities). Repurchase agreements are essentially contracts in which the seller of a security, here US Treasury and US government agency securities, agrees to buy the security back at a predetermined price and time, or upon demand
The above is intended to assist shareholders in understanding the Funds. The views and opinions expressed herein were current as of September 16, 2008. 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 Funds' future investment intent.
For more information
Please contact the UBS Global Asset Management Shareholder Service Center at 800-647 1568.
For all of the UBS Global Asset Management US Money Market Funds, investors should read and carefully consider the investment objectives, risks, charges and expenses before investing. The Money Market Funds' prospectuses contain this and other information about the Funds. Contact the UBS Global Asset Management National Sales Desk at 888-793 8637 for a current Fund prospectus. An investment in the UBS Money Market Funds is only one component of a balanced investment plan.
An investment in the UBS US Money Market Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Funds.
UBS Global Asset Management (US) Inc. is each Fund's principal underwriter. UBS Global Asset Management (Americas) Inc. is each Fund's advisor or sub-advisor.
Not FDIC insured. May lose value. No bank guarantee.
1"UBS Taxable US Money Market Funds" collectively refers to UBS Cashfund, UBS Liquid Assets Fund, UBS Money Market Fund, UBS PACE Money Market Investments, UBS RMA Money Market Portfolio, UBS Retirement Money Fund, UBS Cash Reserves Fund and Master Trust-Prime Master Fund. UBS Select Prime Institutional Fund, UBS Select Prime Preferred Fund and UBS Select Prime Investor Fund are "feeder funds" that invest in securities via Master Trust-Prime Master Fund. For some of these funds, UBS Financial Services Inc. serves as the investment advisor and UBS Global Asset Management is the sub-advisor responsible for day-to-day portfolio management. UBS Global Asset Management offers other taxable money market funds that invest primarily in US Treasury and/or US government securities and related instruments. As such, they are not impacted to the same degree by the current turmoil in the credit markets, and are not referenced in this discussion.