UBS Asset Management in the United States

This website contains general information about UBS Asset Management (Americas), Inc. The information contained on this website does not constitute investment advice or a recommendation to purchase or sell any securities or other financial instrument or any particular strategy or fund. Market commentary, product information and related performance data available on this website has been compiled from sources believed to be reliable and is provided in good faith for informational purposes only. UBS Asset Management does not guarantee the accuracy, suitability or completeness of information contained on this website, and all such information, including but not limited to performance data and related metrics, is subject to change without notice. Certain content on this website is intended for institutional investors and their financial representatives only, and should not be relied upon by retail investors or members of the general public.

Market commentary and similar statements contained herein are based on current expectations and may be considered “forward-looking statements.” Actual future results, however, may prove to be different from expectations. The opinions expressed are a reflection of UBS Asset Management’s best judgment at the time of posting, and any obligation to update or alter any forward-looking statement as a result of new information, future events, or otherwise is disclaimed.

Investments involve risks, are not guaranteed and may not return the original principal amount invested. Past performance is no guarantee of future results. Investors should read all available product information carefully before making an investment decision, including information about applicable risks, fees and expenses. This website does not address the investment objectives, risk tolerance or financial needs of any particular investor. In addition, any statements regarding investment performance expectations, risk and/or return targets do not constitute a representation or warranty that such expectations or targets will be achieved.

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Mutual Fund Prices

Please read "IMPORTANT DISCLOSURES" below relating to fund performance and important information contained in the fund prospectuses.

UBS Funds - Asset Allocation - UBS Dynamic Alpha Fund

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 12.20.2016 ST Cap Gain As of: 12.20.2016 LT Cap Gain As of: 12.20.2016

A

42,336,235.38

BNAAX

6.61

6.61

0.00

0.0000

0.0000

0.0000

C

16,335,664.90

BNACX

6.13

6.13

0.00

0.0000

0.0000

0.0000

P

96,001,358.37

BNAYX

6.75

6.75

0.00

0.0000

0.0000

0.0000

UBS Funds - Asset Allocation - UBS Global Allocation Fund

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 12.20.2016 ST Cap Gain As of: 12.20.2016 LT Cap Gain As of: 12.20.2016

A

176,058,482.42

BNGLX

12.09

12.08

0.01

0.2284

0.0000

0.0000

C

97,040,387.77

BNPCX

11.73

11.72

0.01

0.1235

0.0000

0.0000

P

67,982,398.15

BPGLX

12.36

12.36

0.00

0.2608

0.0000

0.0000

UBS Funds - Asset Allocation - UBS U.S. Allocation Fund

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 12.20.2016 ST Cap Gain As of: 12.20.2016 LT Cap Gain As of: 12.20.2016

A

168,263,747.14

PWTAX

48.63

48.64

(0.01)

0.1839

0.0000

0.0000

C

61,493,817.99

KPAAX

46.72

46.74

(0.02)

0.0000

0.0000

0.0000

P

28,721,616.65

PWTYX

49.54

49.55

(0.01)

0.3011

0.0000

0.0000

UBS Funds - Equity - UBS U.S. Large Cap Equity Fund

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 12.20.2016 ST Cap Gain As of: 12.20.2016 LT Cap Gain As of: 12.20.2016

A

11,793,517.19

BNEQX

32.63

32.67

(0.04)

0.2811

0.0000

0.0000

C

1,926,410.82

BNQCX

31.16

31.19

(0.03)

0.0672

0.0000

0.0000

P

17,355,779.54

BPEQX

32.80

32.83

(0.03)

0.3490

0.0000

0.0000

UBS Funds - Equity - UBS International Sustainable Equity Fund

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 12.20.2016 ST Cap Gain As of: 12.20.2016 LT Cap Gain As of: 12.20.2016

A

7,131,295.54

BNIEX

10.34

10.33

0.01

0.1675

0.0000

0.0000

C

2,557,547.88

BNICX

10.07

10.06

0.01

0.0986

0.0000

0.0000

P

26,370,607.89

BNUEX

10.38

10.38

0.00

0.1907

0.0000

0.0000

UBS Funds - Equity - UBS U.S. Small Cap Growth Fund

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 12.20.2016 ST Cap Gain As of: 12.20.2016 LT Cap Gain As of: 12.20.2016

A

27,012,866.86

BNSCX

22.08

22.01

0.07

0.0000

0.0261

0.6495

C

3,800,327.49

BNMCX

18.57

18.50

0.07

0.0000

0.0261

0.6495

P

75,061,779.46

BISCX

23.82

23.74

0.08

0.0000

0.0261

0.6495

PACE Funds - Alternative - PACE Alternative Strategies Investments

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 12.19.2016 ST Cap Gain As of: 12.19.2016 LT Cap Gain As of: 12.19.2016

A

8,544,326.11

PASIX

10.81

10.79

0.02

0.0000

0.0000

0.0000

C

8,886,128.13

PASOX

10.14

10.12

0.02

0.0000

0.0000

0.0000

P

650,790,236.82

PASPX

10.72

10.70

0.02

0.0000

0.0000

0.0000

Y

627,993.44

PASYX

10.76

10.74

0.02

0.0000

0.0000

0.0000

PACE Funds - Equity - PACE International Emerging Markets Equity Investments

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 12.19.2016 ST Cap Gain As of: 12.19.2016 LT Cap Gain As of: 12.19.2016

A

4,225,424.63

PWEAX

14.24

14.24

0.00

0.0923

0.0000

0.0000

C

1,356,669.83

PWECX

13.10

13.10

0.00

0.0101

0.0000

0.0000

P

471,171,840.98

PCEMX

14.29

14.29

0.00

0.1196

0.0000

0.0000

Y

8,121,481.05

PWEYX

14.36

14.36

0.00

0.1236

0.0000

0.0000

PACE Funds - Equity - PACE International Equity Investments

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 12.19.2016 ST Cap Gain As of: 12.19.2016 LT Cap Gain As of: 12.19.2016

A

32,212,907.07

PWGAX

16.93

16.89

0.04

0.2823

0.0000

0.0000

C

2,146,291.32

PWGCX

16.55

16.51

0.04

0.1541

0.0000

0.0000

P

1,147,133,423.43

PCIEX

16.85

16.80

0.05

0.3228

0.0000

0.0000

Y

15,162,126.70

PWIYX

16.89

16.84

0.05

0.3230

0.0000

0.0000

PACE Funds - Equity - PACE Large Co Growth Equity Investments

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 12.19.2016 ST Cap Gain As of: 12.19.2016 LT Cap Gain As of: 12.19.2016

A

46,481,339.45

PLAAX

26.27

26.28

(0.01)

0.0285

0.0000

0.7164

C

2,873,151.30

PLACX

21.66

21.67

(0.01)

0.0000

0.0000

0.7164

P

1,290,589,395.25

PCLCX

27.08

27.08

0.00

0.0829

0.0000

0.7164

Y

14,822,039.50

PLAYX

27.27

27.28

(0.01)

0.0855

0.0000

0.7164

PACE Funds - Equity - PACE Small/Medium Co Growth Equity Investments

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 12.19.2016 ST Cap Gain As of: 12.19.2016 LT Cap Gain As of: 12.19.2016

A

22,775,794.56

PQUAX

17.27

17.20

0.07

0.0000

0.0000

0.0000

C

2,679,225.69

PUMCX

13.45

13.39

0.06

0.0000

0.0000

0.0000

P

472,990,126.76

PCSGX

18.34

18.26

0.08

0.0000

0.0000

0.0000

Y

102,644.25

PUMYX

18.61

18.53

0.08

0.0000

0.0000

0.0000

PACE Funds - Equity - PACE Global Real Estate Securities Investments

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 12.19.2016 ST Cap Gain As of: 12.19.2016 LT Cap Gain As of: 12.19.2016

A

464,435.67

PREAX

7.82

7.80

0.02

0.3033

0.0000

0.0000

C

170,812.59

PREEX

7.46

7.44

0.02

0.2475

0.0000

0.0000

P

140,807,917.28

PREQX

7.55

7.53

0.02

0.3180

0.0000

0.0000

Y

30,800.58

PREYX

7.58

7.56

0.02

0.3020

0.0000

0.0000

PACE Funds - Equity - PACE Large Co Value Equity Investments

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 12.19.2016 ST Cap Gain As of: 12.19.2016 LT Cap Gain As of: 12.19.2016

A

118,564,374.71

PCPAX

24.49

24.45

0.04

0.3519

0.0000

0.6162

C

12,184,202.04

PLVCX

24.46

24.42

0.04

0.1644

0.0000

0.6162

P

1,213,143,872.67

PCLVX

24.45

24.41

0.04

0.4028

0.0000

0.6162

Y

17,716,672.63

PLVYX

24.57

24.53

0.04

0.4069

0.0000

0.6162

PACE Funds - Equity - PACE Small/Medium Co Value Equity Investments

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 12.19.2016 ST Cap Gain As of: 12.19.2016 LT Cap Gain As of: 12.19.2016

A

17,902,531.43

PEVAX

21.58

21.54

0.04

0.2768

0.3499

0.2055

C

4,267,678.44

PEVCX

18.12

18.08

0.04

0.1492

0.3499

0.2055

P

509,959,133.71

PCSVX

22.17

22.13

0.04

0.3001

0.3499

0.2055

Y

303,399.59

PVEYX

22.42

22.37

0.05

0.2795

0.3499

0.2055

UBS Funds - Fixed Income - UBS Total Return Bond Fund

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 09.21.2017 ST Cap Gain As of: 09.21.2017 LT Cap Gain As of: 09.21.2017

A

4,578.55

UTBAX

15.03

15.05

(0.02)

0.0257

0.0000

0.0000

C

43,803.95

UTBCX

15.03

15.05

(0.02)

0.0194

0.0000

0.0000

P

47,959,325.30

UTBPX

15.04

15.06

(0.02)

0.0287

0.0000

0.0000

UBS Funds - Fixed Income - UBS Municipal Bond Fund

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 09.21.2017 ST Cap Gain As of: 09.21.2017 LT Cap Gain As of: 09.21.2017

A

16,727,153.43

UMBAX

10.32

10.33

(0.01)

0.0134

0.0000

0.0000

C

5,858,792.96

UMBCX

10.32

10.32

0.00

0.0092

0.0000

0.0000

P

107,740,284.06

UMBPX

10.32

10.32

0.00

0.0156

0.0000

0.0000

PACE Funds - Fixed Income - PACE Global Fixed Income Investments

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 09.21.2017 ST Cap Gain As of: 09.21.2017 LT Cap Gain As of: 09.21.2017

A

37,557,194.44

PWFAX

10.01

10.02

(0.01)

0.0103

0.0000

0.0000

C

2,603,774.05

PWFCX

10.02

10.02

0.00

0.0063

0.0000

0.0000

P

395,870,823.67

PCGLX

10.01

10.02

(0.01)

0.0118

0.0000

0.0000

Y

2,578,409.22

PWFYX

9.98

9.99

(0.01)

0.0115

0.0000

0.0000

PACE Funds - Fixed Income - PACE High Yield Investments

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 09.21.2017 ST Cap Gain As of: 09.21.2017 LT Cap Gain As of: 09.21.2017

A

4,296,754.79

PHIAX

10.15

10.15

0.00

0.0442

0.0000

0.0000

C

2,733,053.12

PHYCX

10.14

10.13

0.01

0.0401

0.0000

0.0000

P

375,439,072.03

PHYPX

10.18

10.17

0.01

0.0453

0.0000

0.0000

Y

527,727.78

PHDYX

10.19

10.19

0.00

0.0457

0.0000

0.0000

PACE Funds - Fixed Income - PACE Municipal Fixed Income Investments

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 09.21.2017 ST Cap Gain As of: 09.21.2017 LT Cap Gain As of: 09.21.2017

A

45,798,120.84

PMUAX

13.12

13.12

0.00

0.0277

0.0000

0.0000

C

8,472,392.22

PMUCX

13.12

13.13

(0.01)

0.0221

0.0000

0.0000

P

325,562,343.59

PCMNX

13.13

13.13

0.00

0.0304

0.0000

0.0000

Y

91,805.09

PMUYX

13.13

13.13

0.00

0.0304

0.0000

0.0000

PACE Funds - Fixed Income - PACE Intermediate Fixed Income Investments

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 09.21.2017 ST Cap Gain As of: 09.21.2017 LT Cap Gain As of: 09.21.2017

A

16,557,685.06

PIFAX

12.34

12.36

(0.02)

0.0200

0.0000

0.0000

C

1,210,543.50

PIICX

12.36

12.38

(0.02)

0.0149

0.0000

0.0000

P

373,255,458.79

PCIFX

12.34

12.36

(0.02)

0.0226

0.0000

0.0000

Y

337,851.65

PIFYX

12.34

12.36

(0.02)

0.0226

0.0000

0.0000

PACE Funds - Fixed Income - PACE Mortgage-Backed Securities Fixed Income Investments

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 09.21.2017 ST Cap Gain As of: 09.21.2017 LT Cap Gain As of: 09.21.2017

A

35,486,599.05

PFXAX

12.87

12.89

(0.02)

0.0290

0.0000

0.0000

C

10,632,289.79

PFXCX

12.88

12.90

(0.02)

0.0236

0.0000

0.0000

P

354,192,553.80

PCGTX

12.87

12.90

(0.03)

0.0317

0.0000

0.0000

Y

41,903,103.69

PFXYX

12.87

12.89

(0.02)

0.0317

0.0000

0.0000

PACE Funds - Fixed Income - PACE Strategic Fixed Income Investments

Information as of 10.18.2017

Class Net Assests NASDAQ NAV Prior Day NAV NAV Change NII Dividend As of: 09.21.2017 ST Cap Gain As of: 09.21.2017 LT Cap Gain As of: 09.21.2017

A

14,881,002.53

PBNAX

13.87

13.90

(0.03)

0.0276

0.0000

0.0000

C

7,943,106.94

PBNCX

13.87

13.90

(0.03)

0.0218

0.0000

0.0000

P

808,709,031.68

PCSIX

13.87

13.89

(0.02)

0.0304

0.0000

0.0000

Y

1,594,786.50

PSFYX

13.85

13.88

(0.03)

0.0304

0.0000

0.0000

 

IMPORTANT DISCLOSURES

Performance, gross and net expense ratios table: http://www.ubs.com/us-mutualfundperformance

1Expense ratios are as of a fund's most recent prospectus. Prospectus dates vary among funds. Unless otherwise indicated, for UBS Funds, expense ratios are as of the October 28, 2016 prospectus, as supplemented from time to time. For UBS U.S. Allocation Fund, expense ratios are as of the December 29, 2016 prospectus, as supplemented from time to time. For PACE® Funds, expense ratios are as of the November 28, 2016 prospectus, as supplemented from time to time. This expense ratio includes dividend expense, borrowing costs and related interest expense attributable to securities sold short, if any, which may vary based on actual investments.

2Net expenses reflect fee waivers and expense reimbursements pursuant to agreements that were in effect, as of a fund's most recent prospectus, to cap the expenses for each fund. In the event a fund's operating expense ratio for the period exceeds its expense cap, these waivers and reimbursements would apply. Current effective fee waivers and expense reimbursement agreements for each fund are listed in the paragraphs below.

UBS U.S. Allocation Fund

The Fund and UBS Asset Management (Americas), Inc. ("UBS AM) have entered into a written agreement, separate from UBS AM's investment advisory agreement with the Fund, whereby UBS AM has agreed to permanently reduce its advisory and administration fee based on the Fund's average daily net assets to the following rates: $0 to $250 million: 0.50%; in excess of $250 million up to $500 million: 0.45%; in excess of $500 million up to $2 billion: 0.40%; over $2 billion: 0.35%. Effective December 29, 2016, UBS AM has contractually undertaken to waive fees/reimburse a portion of the fund's expenses, when necessary, so that the ordinary total annual operating expenses of each class through December 31, 2017 (excluding (1) dividend expense, borrowing costs and interest expense relating to short sales, and (2) investments in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses, if any) would not exceed 1.15% for Class A, 1.90% for Class C and 0.90% for Class P.

UBS International Sustainable Equity Fund

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 total operating expenses of the Fund do not exceed 1.25% for Class A shares, 2.00% for Class C shares and 1.00% for Class P shares.

For the following UBS Funds:

The Trust, with respect to each Fund listed below, and the Advisor, UBS AM, 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 and with respect to UBS Dynamic Alpha Fund, and UBS U.S. Small Cap Growth Fund, also excluding dividend expense and security loan fees for securities sold short) to the extent necessary so that a Fund's operating expenses (excluding expenses incurred through investment in other investment companies, interest, taxes, brokerage commissions, and extraordinary expenses and with respect to UBS Dynamic Alpha Fund, and UBS U.S. Small Cap Growth Fund, also excluding dividend expense and security loan fees for securities sold short), through the period ending October 27, 2017, do not exceed the percentages for each Fund listed below. 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 a Fund will not cause a Fund to exceed the applicable expense limit that is in place for each share class of a Fund as follows:

UBS Dynamic Alpha Fund

1.35% for Class A, 2.10% for Class C and 1.10% for Class P.

UBS Global Allocation Fund

Effective October 28, 2016, 1.20% for Class A, 1.95% for Class C and 0.95% for Class P (Prior to October 28, 2016, 1.35% for Class A, 2.10% for Class C and 1.10% for Class P).

UBS U.S. Large Cap Equity Fund

Effective March 23, 2016, 0.95% for Class A, 1.70% for Class C and 0.70% for Class P (Prior to March 23, 2016, 1.20% for Class A, 1.95% for Class C and 0.95% for Class P).

UBS U.S. Small Cap Growth Fund

1.24% for Class A, 1.99% for Class C and 0.99% for Class P.

UBS Municipal Bond Fund

0.65% for Class A, 1.15% for Class C and 0.40% for Class P.

UBS Total Return Bond Fund

0.75% for Class A, 1.25% for Class C and 0.50% for Class P.

PACE® Mortgage-Backed Securities Fixed Income Investments

The fund and UBS Asset Management (Americas) Inc. (“UBS AM”) have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS AM is contractually obligated to: (1) waive its management fees through November 30, 2017 to the extent necessary to reflect the lower sub-advisory fee paid by UBS AM to Pacific Investment Management Company LLC, the fund’s investment advisor; and (2) waive its management fees and/or reimburse expenses so that the fund’s ordinary total operating expenses of each class through November 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed 0.97% for Class A, 1.47% for Class C, 0.72% for Class Y and 0.72% for Class P. The fund has agreed to repay UBS AM for any waived fees/reimbursed expenses (pursuant to item (2)) to the extent that it can do so over the following three fiscal years without causing the fund’s expenses in any of those three years to exceed these expense caps and that UBS AM has not waived the right to do so. The fee waiver/expense reimbursement agreement may be terminated by the fund’s board at any time and also will terminate automatically upon the expiration or termination of the fund’s advisory contract with UBS AM. Upon termination of the agreement, however, UBS AM’s three year recoupment rights will survive.

PACE® Strategic Fixed Income Investments

The fund and UBS AM have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS AM is contractually obligated to waive its management fees and/or reimburse expenses so that the fund’s ordinary total operating expenses of each class through November 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed 0.96% for Class A, 1.46% for Class C, 0.71% for Class Y and 0.71% for Class P. The fund has agreed to repay UBS AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the fund’s expenses in any of those three years to exceed these expense caps and that UBS AM has not waived the right to do so. The fee waiver/expense reimbursement agreement may be terminated by the fund’s board at any time and also will terminate automatically upon the expiration or termination of the fund’s advisory contract with UBS AM. Upon termination of the agreement, however, UBS AM’s three year recoupment rights will survive.

PACE® Municipal Fixed Income Investments

The fund and UBS AM have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS AM is contractually obligated to waive its management fees and/or reimburse expenses so that the fund's ordinary total operating expenses of each class through November 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed 0.82% for Class A, 1.32% for Class C, 0.57% for Class Y and 0.57% for Class P. The fund has agreed to repay UBS AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the fund's expenses in any of those three years to exceed these expense caps and that UBS AM has not waived the right to do so. The fee waiver/expense reimbursement agreement may be terminated by the fund's board at any time and also will terminate automatically upon the expiration or termination of the fund's advisory contract with UBS AM. Upon termination of the agreement, however, UBS AM's three year recoupment rights will survive.

PACE® Global Fixed Income Investments (formerly, PACE® International Fixed Income Investments)

The fund and UBS AM have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS AM is contractually obligated to: (1) waive its management fees through November 30, 2017 to the extent necessary to reflect the lower subadvisory fee paid by UBS AM to Rogge Global Partners plc, the fund's investment advisor; (2) waive its management fees and/or reimburse expenses so that the fund's ordinary total operating expenses of each class through November 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed 1.25% for Class A, 1.75% for Class C, 1.00% for Class Y and 1.00% for Class P; and (3) waive its management fees through November 30, 2017 to reflect a lower management fee paid by the fund to UBS AM. The fund has agreed to repay UBS AM for any waived fees/reimbursed expenses (pursuant to item (2)) to the extent that it can do so over the following three fiscal years without causing the fund's expenses in any of those three years to exceed these expense caps and that UBS AM has not waived the right to do so. The fee waiver/expense reimbursement agreement may be terminated by the fund's board at any time and also will terminate automatically upon the expiration or termination of the fund's advisory contract with UBS AM. Upon termination of the agreement, however, UBS AM's three year recoupment rights will survive.

PACE® High Yield Investments

The fund and UBS AM have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS AM is contractually obligated to: (1) waive its management fees and/or reimburse expenses so that the fund’s ordinary total operating expenses of each class through November 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed 1.28% for Class A, 1.78% for Class C, 1.03% for Class Y and 1.03% for Class P; and (2) waive its management fees through November 30, 2017 to reflect a lower management fee paid by the fund to UBS AM. The fund has agreed to repay UBS AM for any waived fees/reimbursed expenses (pursuant to item (1)) to the extent that it can do so over the following three fiscal years without causing the fund’s expenses in any of those three years to exceed these expense caps and that UBS AM has not waived the right to do so. The fee waiver/expense reimbursement agreement may be terminated by the fund’s board at any time and also will terminate automatically upon the expiration or termination of the fund’s advisory contract with UBS AM. Upon termination of the agreement, however, UBS AM’s three year recoupment rights will survive.

PACE® Alternative Strategies Investments

The fund and UBS AM have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS AM is contractually obligated to: (1) waive its management fees through November 30, 2017 to the extent necessary to offset other unaffiliated pooled investment vehicles and index futures; and (2) waive its management fees and/or reimburse expenses so that the fund's ordinary total operating expenses of each class through November 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed 1.88% for Class A, 2.63% for Class C, 1.63% for Class Y and 1.63% for Class P. The fund has agreed to repay UBS AM for any waived fees/reimbursed expenses (pursuant to item (2)) to the extent that it can do so over the following three fiscal years without causing the fund's expenses in any of those three years to exceed these expense caps and that UBS AM has not waived the right to do so. The fee waiver/expense reimbursement agreement may be terminated by the fund's board at any time and also will terminate automatically upon the expiration or termination of the fund's advisory contract with UBS AM. Upon termination of the agreement, however, UBS AM's three year recoupment rights will survive.

For the following PACE® Funds:

The funds and UBS AM have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS AM is contractually obligated to waive its management fees and/or reimburse expenses so that the fund's ordinary total operating expenses of each class through November 30, 2017 (excluding dividend expense, borrowing costs and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed the percentages for each fund listed below. The funds listed below have agreed to repay UBS AM for any waived fees/reimbursed expenses to the extent that they can do so over the following three fiscal years without causing the funds' expenses in any of those three years to exceed the expense caps and that UBS AM has not waived the right to do so for each share class as detailed below. The fee waiver/expense reimbursement agreement may be terminated by the fund's board at any time and also will terminate automatically upon the expiration or termination of the fund's advisory contract with UBS AM. Upon termination of the agreement, however, UBS AM's three year recoupment rights will survive.

PACE® Intermediate Fixed Income Investments

0.93% for Class A, 1.43% for Class C, 0.68% for Class Y and 0.68% for Class P.

PACE® Large Co Value Equity Investments

1.27% for Class A, 2.02% for Class C, 1.02% for Class Y and 1.02% for Class P.

PACE® Large Co Growth Equity Investments

1.30% for Class A, 2.05% for Class C, 1.05% for Class Y and 1.05% for Class P.

PACE® Small/Medium Co Value Equity Investment

1.41% for Class A, 2.16% for Class C, 1.16% for Class Y and 1.16% for Class P.

PACE® Small/Medium Co Growth Equity Investments

1.38% for Class A, 2.13% for Class C, 1.13%, for Class Y and 1.13% for Class P.

PACE® International Equity Investments

1.55% for Class A, 2.30% for Class C, 1.30% for Class Y and 1.30% for Class P.

PACE® International Emerging Markets Equity Investments

1.70% for Class A, 2.45% for Class C, 1.45% for Class Y and 1.45% for Class P.

PACE® Global Real Estate Securities Investments

1.45% for Class A, 2.20% for Class C, 1.20% for Class Y and 1.20% for Class P.

Performance Considerations

Performance results assume the reinvestment of all dividends and capital gains, and are shown both with and without the effect of the maximum applicable sales charges. The investment return and principal value of an investment will fluctuate, and Fund shares, when redeemed may be worth more or less than their original cost. Accordingly, you can lose money investing in a Fund. Performance is historical and no guarantee of future results. Certain Funds were subject to certain fee waivers and/or expense reimbursements for certain reported periods. The performance of such Funds would have been lower if the Fund had borne all the expenses that were waived or reimbursed.

Sales Charge and Expenses

Class A shares: Maximum initial sales charge of 5.50% on equity Funds and asset allocation Funds and 3.75% on fixed income Funds (except for UBS Municipal Bond Fund and PACE Municipal Fixed Income Investments that have an initial sales charge of 2.25%). Ongoing 12b-1 service fees. 1% CDSC for redemptions of purchases of $1 million or more made within one year (for UBS Municipal Bond Fund and PACE Municipal Fixed Income Investments, 0.75% CDSC for redemptions of purchases of $500,000 or more made within one year).

Class C shares: 1% CDSC charged on the sale of shares within one year of the date of purchase for equity Funds and asset allocation Funds and 0.75% CDSC charged on the sale of shares within one year of the date of purchase for fixed income Funds. Ongoing 12b-1 service and distribution fees.

Class Y shares of the PACE Funds are not subject to sales charges and are available for limited groups of eligible investors, including institutional investors. Effective July 28, 2014, Class Y shares are no longer offered for The UBS Funds and the US Allocation Fund; Class Y shares of those Funds have been re-designated as Class "P" shares.

Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance. Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance. Please refer to each Fund's prospectus for further information on the eligibility to purchase Class P shares.

Investment Considerations

Investors should carefully read and consider a mutual Fund's investment objectives, risks, charges and expenses before investing. The prospectus contains this and other information about a mutual Fund. Contact your Financial Advisor, or UBS AM at 888-793 8637 for a current Fund prospectus.

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