UBS PRIVATE INVESTOR FUNDS INC, N-30D, 1997-09-04

UBS PRIVATE INVESTOR FUNDS INC
N-30D, 1997-09-04

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UBS
INSTITUTIONAL
INTERNATIONAL
EQUITY
FUND

- -----------

UBS
Private Investor
Funds, Inc.

Semi-Annual Report
June 30, 1997

UBS Private Investor Funds, Inc.
Chairman's Letter
- --------------------------------------------------------------------------------

Dear Shareholder,

Thank you for your investment in the UBS Institutional International Equity
Fund, which is part of the UBS Private Investor Funds.

We are pleased to provide you with the Fund's semi-annual report for the six
months ended June 30, 1997. This report contains a letter from the portfolio
manager discussing the performance of the Fund for the six months ended June 30,
1997 including a market overview. In addition, it includes a complete set of
financial statements as well as a schedule of investments.

The UBS Private Investor Funds are an integral part of the asset allocation
service provided by The Private Bank* of Union Bank of Switzerland, the largest
bank in Switzerland. The Funds provide investment opportunities in U.S. and
international securities markets to enhance investment performance, diversify
risk and preserve capital within your investment objectives.

The UBS Private Investor Funds:

Bring you the expertise of The Private Bank's professional money managers

Make available global investment perspective and knowledge

Place a high priority on financial stability and preservation of wealth

To learn more about the other UBS Private Investor Funds, please call (888)
UBS-FUND. You will be provided with a copy of the prospectus which contains more
complete information including charges and expenses. Please read it carefully
before investing.

We appreciate your confidence in the UBS Private Investor Funds.

Sincerely,

DR. HANSPETER LOCHMEIER
Dr. HansPeter Lochmeier
Chairman of the Board
UBS Private Investor Funds, Inc.

- ------------------------
* 'The Private Bank', as used in this document, refers to Union Bank of
Switzerland, New York Branch.

This semi-annual report must be accompanied or preceded by the Fund's
prospectus.

UBS Private Investor Funds, Inc.
Fund Commentary
- --------------------------------------------------------------------------------

FUND PERFORMANCE

The Fund underperformed its benchmark by 1.81% in the period from April 14,
1997 (commencement of operations) through June 30, 1997. The main reason for
this was asset allocation. Underweight Japan and overweight France as well as
holding cash in the hope of investing at lower levels was all negative. Stock
selection, on the other hand, was positive with good gains seen in France,
Germany and Sweden where corporate restructuring is working as well as Japan
where our exposure to exporting companies continues to pay off.

Growth of a $10,000 Investment
(Hypothetical -- Past performance is not an indication of future results.)

The chart provides a comparison of the Fund's performance to that of the MSCI
EAFE Index. This chart compares total returns (which includes changes in share
price and reinvestment of all dividends and capital gains) of a hypothetical
$10,000 investment made on April 14, 1997 (commencement of operations) and held
through June 30, 1997.

[GRAPH]

UBS
INSTITUTIONAL MSCI
INTERNATIONAL EAFE
DATE EQUITY FUND INDEX
------ ------------- -----
4/14/97 $10,000 $10,000
4/30/97 10,248 10,307
5/31/97 10,767 10,981
6/30/97 11,403 11,584

Average Annual Total Return

<TABLE>
<CAPTION>
UBS
INSTITUTIONAL MSCI
INTERNATIONAL EAFE
EQUITY FUND INDEX
------------- -----
<S> <C> <C>
April 14, 1997 (commencement of operations)
through June 30, 1997......................................................... 14.03% 15.84%
</TABLE>

MARKET OVERVIEW

US economic growth continues to be robust with little evidence of incipient
inflation. This, together with a strong dollar, has provided a reasonable
background for modest, export led, growth in both Europe and Japan. Growth has
been at its fastest in the UK fueled by the stimulatory policies followed by the
previous administration and Switzerland where the currency has been particularly
weak. In Japan, the period leading up to an increase in consumption tax in April
saw strong consumer demand followed by a 'blip' which is now showing signs of
recovery.

This environment has proved to be positive for corporate earnings and markets
have generally been very strong, offset somewhat by currency losses when
translated into US dollars. Most of Europe is up 20/30% in local currency terms.
Even the election of a socialist administration in France hit the market only
temporarily. Once in power and with EMU restrictions in place M. Jospin has had
to become

UBS Private Investor Funds, Inc.
Fund Commentary
- --------------------------------------------------------------------------------
rather more pragmatic than his pre-election rhetoric would have suggested. The
UK was the 'oddman out' with the market up only 9.2% in US dollars terms. This
was because of fears of higher short-term interest rates to cool the economy and
the expectation that the tax credit enjoyed by domestic pension funds would be
taken away in the July budget. Both worries were subsequently proved correct.

The Japanese market continued on from 1996 at the start of the year hit by
worries about the relatively depressed domestic economy and the outlook for
non-performing loans and the banking system. In the second quarter these worries
subsided a little, overwhelmed by the strength of corporate earnings,
particularly in the export sector. The market returned 9.2% in the period.

The real problem area was Southeast Asia where slowing exports and massive
capacity coming on stream reduced economic growth and corporate margins at the
same time. Devaluation is seen as the way out of the problem by financial market
operators if not by domestic politicians who have invested so much capital in
stable exchange rates. Thus far both Thailand and the Philippines have succumbed
with Malaysia and Indonesia in the firing line. Market returns have been poor
with Thailand - 37.3%, the Philippines - 11.9%, Singapore - 7.5% and Malaysia
- 11.7% all in US dollars.

Hong Kong continued to prosper in the run up to the handover with property and
equity markets remaining strong.

ECONOMIC FORECAST

The outlook for growth continues to be favourable although some doubts must be
expressed. The UK is overheating; Japan cannot continue a regime of very low
real interest rates in a period of stronger growth and problems will continue to
ripple around Southeast Asia. Overall, however, corporate profits should remain
robust given top line growth and the focus on shareholder value which has become
generally accepted management practice.

Many new opportunities are being presented by the short-term problems in the
smaller Asian markets.

A feature of markets over the last couple of years has been the outperformance
of both 'growth' and 'large' companies shares. We believe there are considerable
opportunities amongst 'value' and 'medium to small' size companies and will look
to increase exposure in these areas.

Robin Apps
Portfolio Manager
- ------------------------

The Fund is not insured by the FDIC and is not a deposit with, an obligation of,
or guaranteed by Union Bank of Switzerland. The Fund is subject to investment
risks, including possible loss of principal amount invested.

Shares of the Fund are distributed by First Fund Distributors, Inc. which is not
affiliated with Union Bank of Switzerland.

Unlike other mutual funds, the Fund seeks to achieve its investment objective by
investing all of its investable assets in UBS Investor Portfolios Trust -- UBS
International Equity Portfolio (the 'Portfolio') which is a separate fund with
an identical investment objective.

Union Bank of Switzerland is voluntarily reimbursing a portion of the Fund's
expenses. Union Bank of Switzerland is also waiving a portion of its advisory
fees for the Portfolio. If Union Bank of Switzerland had not waived fees and
reimbursed expenses, total return would have been lower. Past performance is not
a guarantee of future results. Investment 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.

The MSCI EAFE Index (Morgan Stanley Capital International -- Europe, Australia,
Far East Index) is an unmanaged index used to portray the pattern of common
stock price movement in Europe, Australia and the Far East.

UBS Institutional International Equity Fund
Statement of Assets and Liabilities
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investment in UBS Investor Portfolios Trust -- UBS International Equity Portfolio,
at value.......................................................................... $14,403,554
Tax reclaims receivable............................................................. 26,870
Receivable from funds services agent................................................ 8,852
Deferred organization expenses and other assets..................................... 26,972
-----------
Total Assets.............................................................. 14,466,248
-----------

LIABILITIES:
Administrative services fees payable................................................ 1,871
Organization expenses payable....................................................... 19,478
Other accrued expenses.............................................................. 13,996
-----------
Total Liabilities......................................................... 35,345
-----------

NET ASSETS.......................................................................... $14,430,903
-----------
-----------

SHARES OUTSTANDING ($0.001 par value, 10 million shares authorized)................. 126,547
-----------
-----------

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE...................... $114.04
-----------
-----------
COMPOSITION OF NET ASSETS:
Shares of common stock, at par...................................................... $ 127
Additional paid-in capital.......................................................... 12,654,565
Net unrealized appreciation of investments, foreign currency contracts and foreign
currency translations............................................................. 1,618,725
Accumulated undistributed net investment income..................................... 112,497
Accumulated undistributed net realized gains on securities and foreign currency
transactions...................................................................... 44,989
-----------
Net Assets................................................................ $14,430,903
-----------
-----------
</TABLE>

- ------------------------
See notes to financial statements.

UBS Institutional International Equity Fund
Statement of Operations
For the Period April 14, 1997 (Commencement of Operations) through June 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Investment Income and Expenses allocated from UBS Investor Portfolios
Trust -- UBS International Equity Portfolio
Dividends (net of foreign withholding tax of $1,262)................ $118,756
Interest............................................................ 21,086
--------
Investment income................................................... $ 139,842
Total expenses...................................................... 38,563
Less: Fee waiver.................................................... (11,218)
--------
Net expenses........................................................ 27,345
----------
Net Investment Income from UBS Investor Portfolios Trust --
UBS International Equity Portfolio..................................... 112,497

EXPENSES
Administrative services fees............................................. 1,871
Reports to shareholders expense.......................................... 7,376
Audit fees............................................................... 3,334
Transfer agent fees...................................................... 3,165
Registration fees........................................................ 2,459
Fund accounting fees..................................................... 1,898
Legal fees............................................................... 1,582
Amortization of organization expenses.................................... 1,139
Directors' fees.......................................................... 664
Miscellaneous expenses................................................... 1,055
--------
Total expenses...................................................... 24,543
Less: Expense reimbursements........................................ (24,543)
--------
Net expenses........................................................ --
----------
Net investment income.................................................... 112,497
----------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS FROM UBS INVESTOR
PORTFOLIOS TRUST -- UBS INTERNATIONAL EQUITY PORTFOLIO
Net realized gain on securities transactions............................. 47,180
Net realized loss on foreign currency transactions....................... (2,191)
Net change in unrealized appreciation of investments..................... 1,617,012
Net change in unrealized appreciation of foreign currency contracts and
translations........................................................... 1,713
----------
Net realized and unrealized gain on investments from UBS Investor
Portfolios Trust -- UBS International Equity Portfolio................ 1,663,714
----------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $1,776,211
----------
----------
</TABLE>

- ------------------------
See notes to financial statements.

UBS Institutional International Equity Fund
Statement of Changes in Net Assets
For the Period April 14, 1997 (Commencement of Operations) through June 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income................................................................ $ 112,497
Net realized gain on securities and foreign currency transactions.................... 44,989
Net change in unrealized appreciation of investments, foreign currency contracts and
foreign currency translations...................................................... 1,618,725
-----------
Net increase in net assets resulting from operations................................. 1,776,211
-----------

TRANSACTIONS IN SHARES OF COMMON STOCK:
Net proceeds from sale of shares..................................................... 12,654,692
-----------

NET INCREASE IN NET ASSETS........................................................... 14,430,903

NET ASSETS:
Beginning of period.................................................................. --
-----------
End of period (including undistributed net investment income of $112,497)............ $14,430,903
-----------
-----------
</TABLE>

- ------------------------
See notes to financial statements.

UBS Institutional International Equity Fund
Financial Highlights
For the Period April 14, 1997 (Commencement of Operations) through June 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
FOR A SHARE OUTSTANDING FOR THE PERIOD

Net asset value, beginning of period........................................... $100.00
-------
Income from investment operations:
Net investment income..................................................... 0.89
Net realized and unrealized gain on investments, foreign currency
contracts and foreign currency translations............................. 13.15
-------
Total income from investment operations................................... 14.04
-------

Net asset value, end of period................................................. $114.04
-------
-------
Total return................................................................... 14.03%(1)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted).................................. $14,431
Ratio of expenses to average net assets(2)................................ 0.95%(3)
Ratio of net investment income to average net assets(2)................... 3.91%(3)
</TABLE>

- ------------------------
(1) Not annualized.
(2) Includes the Fund's share of UBS Investor Portfolios Trust -- UBS
International Equity Portfolio expenses and net of fee waiver and expense
reimbursements. Such fee waiver and expense reimbursements had the effect of
reducing the ratio of expenses to average net assets and increasing the
ratio of net investment income to average net assets by 1.24% (annualized).
(3) Annualized.

See notes to financial statements.

UBS Institutional International Equity Fund
Notes to Financial Statements
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------

1. GENERAL
UBS Institutional International Equity Fund (the 'Fund') is a diversified,
no-load mutual fund registered under the Investment Company Act of 1940. The
Fund is a series of UBS Private Investor Funds, Inc. (the 'Company'), an
open-end management investment company organized as a corporation under Maryland
law. At June 30, 1997, the Company included three other funds, UBS Bond Fund,
UBS U.S. Equity Fund and UBS International Equity Fund. These financial
statements relate only to the Fund.

The Fund seeks to achieve its investment objective by investing substantially
all of its investable assets in the UBS International Equity Portfolio of UBS
Investor Portfolios Trust (the 'Portfolio'), an open-end management investment
company that has the same investment objective as that of the Fund.

Investors Bank & Trust Company ('IBT') serves as the Fund's administrator and
First Fund Distributors, Inc. ('FFDI') serves as the Fund's distributor. Union
Bank of Switzerland, New York Branch ('UBS') serves as the funds services agent
to the Fund.

The financial statements of the Portfolio, including its Schedule of
Investments, are included elsewhere within this report and should be read in
conjunction with the Fund's financial statements.

2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates. Significant accounting policies
followed by the Fund are as follows:

A. INVESTMENT VALUATION -- The value of the Fund's investment in the Portfolio
included in the accompanying Statement of Assets and Liabilities reflects the
Fund's proportionate beneficial interest in the net assets of the Portfolio
(27.2% at June 30, 1997). Valuation of securities by the Portfolio is discussed
in Note 2A of the Portfolio's Notes to Financial Statements which are included
elsewhere in this report.

B. INVESTMENT INCOME, EXPENSES AND REALIZED AND UNREALIZED GAINS AND
LOSSES -- The Fund records its share of the investment income, expenses and
realized and unrealized gains and losses recorded by the Portfolio on a daily
basis. The investment income, expenses and realized and unrealized gains and
losses are allocated daily to investors of the Portfolio based upon the amount
of their investment in the Portfolio. The amount of foreign withholding taxes
deducted from the dividend income allocated to the Fund from the Portfolio is
net of amounts the Fund expects to recover from foreign tax authorities.

C. FEDERAL TAXES -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies, including
the requirement to distribute substantially all of its taxable income, including
any net realized capital gains on investment transactions, to its shareholders.
Accordingly, no provision for federal income or excise taxes is necessary.

D. DIVIDENDS AND DISTRIBUTIONS -- The Fund declares dividends from net
investment income to shareholders of record on the day of declaration. Such
dividends are declared and paid annually. Net realized gains, if any, will be
distributed at least annually. However, to the extent that net realized gains of
the Fund can be reduced by capital loss carryovers, such gains will not be
distributed. Dividends and distributions are recorded on the ex-dividend date.

The amounts of dividends from net investment income and distributions from net
realized gains are determined in accordance with federal income tax regulations
which may differ from generally accepted accounting principles. These 'book/tax'
differences are either considered temporary or permanent in

UBS Institutional International Equity Fund
Notes to Financial Statements
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the composition of net assets based upon their federal
tax-basis treatment; temporary differences do not require reclassification.

E. DEFERRED ORGANIZATION EXPENSES -- Expenses incurred by the Fund in connection
with its organization in the amount of approximately $27,000 have been deferred
and are being amortized on a straight line basis over five years from the Fund's
commencement of operations (April 14, 1997).

F. OTHER -- The Fund bears all costs of its operations other than expenses
specifically assumed by IBT, FFDI and UBS. Expenses incurred by the Company on
behalf of any two or more funds are allocated in proportion to the net assets of
each fund, except when allocations of direct expenses to each fund can otherwise
be made fairly. Expenses directly attributable to the Fund are charged directly
to the Fund.

3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
A. ADMINISTRATION AGREEMENT -- Under the terms of an Administration Agreement
with the Company effective March 13, 1997, IBT provides overall administrative
services and general office facilities. As compensation for such services, the
Company has agreed to pay IBT a fee, accrued daily and payable monthly, at an
annual rate of 0.065% of the Fund's first $100 million average daily net assets
and 0.025% of the next $100 million average daily net assets. IBT does not
receive a fee on average daily net assets in excess of $200 million. For the
period April 14, 1997 (commencement of operations) through June 30, 1997, the
administrative services fee amounted to $1,871.

B. DISTRIBUTION AGREEMENT -- Under the terms of a Distribution Agreement with
the Company, FFDI serves as the distributor of Fund shares. FFDI does not
receive any fees from the Fund for services provided pursuant to this agreement.

C. FUNDS SERVICES AGREEMENT -- Under the terms of a Funds Services Agreement
with the Company, UBS has agreed to provide certain administrative services to
the Fund. UBS is not entitled to any compensation pursuant to this agreement.

D. EXPENSE REIMBURSEMENTS -- UBS has voluntarily agreed to limit the total
operating expenses of the Fund, including its share of the Portfolio's expenses
and excluding extraordinary expenses. For the period April 14, 1997
(commencement of operations) through June 30, 1997, the Fund's total operating
expenses were limited to an annual rate of 0.95% of the Fund's average daily net
assets. During this period, UBS reimbursed the Fund for expenses totaling
$24,543 in connection with this voluntary limitation. UBS may modify or
discontinue this voluntary expense limitation at any time with 30 days' advance
notice to the Fund.

4. CAPITAL SHARE TRANSACTIONS
At June 30, 1997 there were 500 million shares of the Company's common stock
authorized, of which 10 million shares were classified as common stock of the
Fund. For the period April 14, 1997 (commencement of operations) through June
30, 1997 there were 126,547 shares subscribed.

UBS International Equity Portfolio
Schedule of Investments
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- ----------- -------------------------------------------------------------------------------------- -----------
<S> <C> <C>
COMMON STOCK -- 86.0%
AUSTRALIA -- 5.3%
32,000 Australia & New Zealand Bank Group (Banking & Finance)................................ $ 239,976
15,800 Australian National Industries (Metals & Mining)...................................... 19,389
254,362 Burns Philp & Co. (Food).............................................................. 473,991
62,500 Coles Myer Ltd. (Retail).............................................................. 326,198
138,400 Fosters Brewing Group (Beverages)..................................................... 257,901
189,100 Goodman Fielder Limited (Food)........................................................ 279,324
570,029 MIM Holdings (Metals & Mining)........................................................ 846,322
89,000 Pacific Dunlop Ltd. (Diversified)..................................................... 264,277
50,000 Pasminco Limited (Metals & Mining).................................................... 101,884
-----------
2,809,262
-----------
DENMARK -- 1.3%
2,700 BG Bank A/S (Banking & Finance)....................................................... 149,378
10,500 Tele Danmark -- B Shares (Telecommunications)......................................... 546,092
-----------
695,470
-----------
FRANCE -- 15.2%
3,060 AXA Company (Banking & Finance)....................................................... 190,420
8,800 Alcatel Alsthom SA (Electrical & Electronics)......................................... 1,102,718
15,900 Banque Nationale de Paris (Banking & Finance)......................................... 655,653
4,500 Casino-Guichard-PE (Etabl Econ) (Food)................................................ 222,874
3,100 Compagnie de Saint Gobain (Building Materials)........................................ 452,320
84,000 Compagnie Financiere de Suez (Banking & Finance)...................................... 206,657
9,620 Groupe Danone (Food).................................................................. 1,590,367
27,120 Moulinex (Household Appliances)*...................................................... 743,393
7,800 Pechiney SA -- A Shares (Metals & Mining)............................................. 307,432
2,050 Peugeot SA (Automotive)............................................................... 198,246
1,460 Sefimeg (Societe Francaise d'Investissements Immobiliers et de Gestion)
(Real Estate)....................................................................... 93,215
10,100 Societe Nationale Elf-Aquitaine (Energy Sources)...................................... 1,090,219
18,300 Thomson CSF (Defense Electronics)..................................................... 471,715
6,970 Total Cie Francaise des Petroles -- B Shares (Energy Sources)......................... 704,891
-----------
8,030,120
-----------
GERMANY -- 6.9%
34,300 Bayer AG (Chemicals).................................................................. 1,319,057
1,500 MAN AG (Automotive & Heavy Machinery)................................................. 462,201
3,000 Schering AG (Pharmaceuticals)......................................................... 320,786
2,000 Volkswagen AG (Automotive)............................................................ 1,534,357
-----------
3,636,401
-----------
GREAT BRITAIN -- 13.5%
135,420 Allied Domecq PLC (Food & Beverages).................................................. 972,951
81,900 B.A.T. Industries (Tobacco)........................................................... 732,976
247,200 BG PLC (Natural Gas).................................................................. 909,637
330,000 BTR Limited (Diversified)............................................................. 1,129,154
15,840 Bass PLC (Beverages).................................................................. 193,324
247,200 Centrica (Energy Sources)............................................................. 301,497
113,000 Coats Viyella (Apparel & Textiles).................................................... 239,892
53,000 MEPC British Registered (Real Estate)................................................. 435,061
178,000 Marley PLC (Building Materials)....................................................... 370,474
123,550 Northern Foods PLC (Food)............................................................. 409,377
43,950 Peninsular & Orient Steam (Transportation)............................................ 439,074
17,700 South West Water PLC (Utilities)...................................................... 207,773
209,750 Tarmac PLC (Building Materials)....................................................... 436,555
30,040 Thames Water PLC (Utilities).......................................................... 346,876
-----------
7,124,621
-----------
</TABLE>

- ------------------------
See notes to financial statements.

UBS International Equity Portfolio
Schedule of Investments
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- ----------- -------------------------------------------------------------------------------------- -----------
<S> <C> <C>
HONG KONG -- 0.2%
548,000 Yizheng Chemical Fibre Co. (Chemicals)................................................ $ 97,613
-----------
ITALY -- 1.3%
89,800 Eni S.p.A. (Energy Sources)........................................................... 507,626
31,500 La Rinascente S.p.A. (Food)........................................................... 174,766
-----------
682,392
-----------
JAPAN -- 21.5%
11,000 Dai Nippon Printing Co. (Printing).................................................... 248,832
11,000 Fuji Photo Film Co. (Photographic Equipment & Supplies)............................... 442,901
80,000 Hitachi Ltd. (Hit. Seisakusho) (Electrical & Electronics)............................. 894,362
96,000 Ishikawajima Harima Heavy Industries (Machinery)...................................... 377,309
28,000 JGC Engineering & Constructuction Corp. (Engineering)................................. 193,196
68 Japan Tobacco Inc. (Tobacco).......................................................... 537,491
49,000 Japan Wool Textile Co. (Apparel & Textiles)........................................... 345,797
45,000 Kajima Corp. (Building & Construction)................................................ 263,723
49,000 Kansai Paint Co. (Chemicals).......................................................... 202,856
14,000 Kao Corp. (Household Products)........................................................ 194,419
33,000 Koito Manufacturing Co., Ltd. (Automotive -- Parts & Equipment)....................... 252,483
36,000 Marudai Food Co., Ltd. (Food)......................................................... 158,470
33,000 Matsushita Electric Industries (Electrical & Electronics)............................. 665,793
150,000 Mitsubishi Chemical Corp. (Chemicals)................................................. 489,978
47,000 Mitsubishi Estate Co. (Real Estate)................................................... 681,427
27,000 Mitsubishi Heavy Industries (Aerospace/Defense Equipment)............................. 207,284
45,000 Nihon Cement Co. (Building Materials)................................................. 215,381
34,000 Nikko Securities Co. (Investment Banking)............................................. 209,354
111,000 Nippon Yusen Kabushiki Kaish (Shipping)............................................... 431,416
47,250 Nissan Fire & Marine Insurance (Insurance)............................................ 259,990
58,000 Nisshinbo Industries Inc. (Apparel & Textiles)........................................ 526,835
16,000 Sanwa Bank Ltd. (Banking & Finance)................................................... 237,565
3,900 Sony Corp. (Electrical & Electronics)................................................. 340,286
53,000 Sumitomo Marine & Fire (Insurance).................................................... 435,128
77,000 Tokyo Gas (Energy Sources)............................................................ 213,861
69,000 Toray Industries Inc. (Chemicals)..................................................... 492,362
9,000 Tostem Corporation (Building & Construction).......................................... 249,181
10,000 Uny Co. (Retail)...................................................................... 195,642
115 West Japan Railway (Transportation)................................................... 450,980
35,000 Yamaha Motor Co. (Automotive)......................................................... 348,487
23,000 Yamanouchi Pharmaceutical (Pharmaceuticals)........................................... 618,717
-----------
11,381,506
-----------
NETHERLANDS -- 4.7%
6,800 Akzo Nobel (Chemicals)................................................................ 932,552
12,587 Internationale Nederlanden Groep NV (Banking & Finance)............................... 580,741
18,700 Koninklijke Papierfabrieken BT NV (Paper & Forest Products)........................... 426,148
4,800 Philips Electronics NV (Electronics).................................................. 344,063
5,040 Royal PTT Nederland (Telecommunications).............................................. 197,849
-----------
2,481,353
-----------
NEW ZEALAND -- 0.7%
10,300 Ceramco Corp. Ltd. (Diversified)...................................................... 10,216
43,840 Fletcher Challenge Forestry Shares (Forest Products).................................. 63,735
116,000 Fletcher Challenge Paper Shares (Paper & Forest Products)............................. 281,332
-----------
355,283
-----------
</TABLE>

- ------------------------
See notes to financial statements.

UBS International Equity Portfolio
Schedule of Investments
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- ----------- -------------------------------------------------------------------------------------- -----------
<S> <C> <C>
NORWAY -- 0.1%
3,600 Bergesen D.Y. ASA (Transportation).................................................... $ 85,521
-----------
SINGAPORE -- 2.1%
280,579 Dairy Farm International Holdings (Food).............................................. 210,434
125,696 Hong Kong Land Holdings (Real Estate)................................................. 334,351
29,765 Jardine Matheson Holdings (Diversified)............................................... 211,332
46,000 Keppel Corp. Ltd. (Diversified)....................................................... 204,309
7,250 Keppel Corp. Ltd. -- A Shares (Diversified)........................................... 31,440
110,000 United Overseas Land Ltd. (Real Estate)............................................... 149,262
-----------
1,141,128
-----------
SOUTH KOREA -- 1.8%
22,000 Hyundai Motor Co. GDR (Automotive).................................................... 226,050
1,870 Hyundai Motor Co., Ltd. (Automotive).................................................. 56,016
1,360 Korea Housing Bank (Banking & Finance)................................................ 25,897
220 Korea Mobile Telecom Corp. (Telecommunications)....................................... 166,434
8,720 Korean Air (Airlines)*................................................................ 178,750
11,310 Shinhan Bank (Banking & Finance)...................................................... 166,020
5,600 Yukong Ltd. (Energy Sources).......................................................... 135,586
-----------
954,753
-----------
SPAIN -- 1.0%
46,530 Uralita (Building Materials).......................................................... 519,668
-----------
SWEDEN -- 3.1%
13,050 Electrolux (Household Appliances)..................................................... 941,958
10,000 Granges AB (Metals & Mining).......................................................... 132,590
6,000 Sparbanken Sverige (Banking & Finance)................................................ 133,495
26,000 Stora Kopparbergs -- A Shares (Paper & Forest Products)............................... 420,407
-----------
1,628,450
-----------
SWITZERLAND -- 6.1%
41 Bobst AG (Machinery).................................................................. 69,677
600 Forbo Holding (Building Materials).................................................... 259,028
1,330 Nestle SA (Food & Beverages).......................................................... 1,755,348
555 Novartis (Pharmaceuticals)............................................................ 887,665
210 Schindler Holding AG (Machinery)...................................................... 262,626
-----------
3,234,344
-----------
THAILAND -- 1.2%
14,000 Bangkok Bank Public Company, Ltd. (Banking & Finance)................................. 100,080
15,000 Italian-Thai Development PLC (Building & Construction)................................ 35,241
45,000 Shinawatra Computer Company (Technology).............................................. 323,494
23,000 Thai Farmers Bank Public Co. Ltd. (Banking & Finance)................................. 101,606
58,000 Thai Military Bank, Ltd. (Banking & Finance).......................................... 67,550
-----------
627,971
-----------

TOTAL COMMON STOCK (COST $40,708,713)................................................. 45,485,856
-----------

CONVERTIBLE PREFERRED STOCK -- 0.7%
JAPAN -- 0.7%
42,000,000 Sakura Finance, Series II, 0.75%, due 10/01/01** (Banking & Finance)
(Cost $376,462)..................................................................... 371,414
-----------
</TABLE>

- ------------------------
See notes to financial statements.

UBS International Equity Portfolio
Schedule of Investments
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- ----------- -------------------------------------------------------------------------------------- -----------
<S> <C> <C>
CONTINGENT VALUE RIGHTS -- 0.0%
FRANCE -- 0.0%
3,060 AXA Company (Banking & Finance) (Cost $0)............................................. $ 11,878
-----------

COMMON STOCK RIGHTS -- 0.0%
ITALY -- 0.0%
31,500 La Rinascente S.p.A. (Food) (Cost $0)................................................. 5,133
-----------

TOTAL INVESTMENTS AT MARKET VALUE -- 86.7%
(COST $41,085,175)............................................................................... 45,874,281
OTHER ASSETS IN EXCESS OF LIABILITIES -- 13.3%..................................................... 7,032,073
-----------
NET ASSETS -- 100.0%............................................................................... $52,906,354
-----------
-----------
</TABLE>

- ------------------------
GDR -- Global Depository Receipts.
* Non-income producing security.
** Security exempt from registration under Rule 144A of the Securities Act of
1933. This security may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At June 30, 1997, the value of
this security amounted to $371,414 or 0.7% of net assets.
Note: Based upon the cost of investments of $41,085,175 for Federal Income Tax
purposes at June 30, 1997, the aggregate gross unrealized appreciation and
depreciation was $6,178,399 and $1,389,293, respectively, resulting in net
unrealized appreciation of $4,789,106.

SUMMARY OF OPEN FORWARD FOREIGN CURRENCY CONTRACTS

<TABLE>
<CAPTION>
FOREIGN U.S. DOLLAR U.S. DOLLAR
CURRENCY U.S. DOLLAR VALUE AT NET UNREALIZED
CURRENCY AND SETTLEMENT DATE UNITS SOLD PROCEEDS JUNE 30, 1997 APPRECIATION
- -------------------------------------------------- -------------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
SALE CONTRACTS
German Deutsche Mark, 7/01/97 404,586 $ 234,339 $ 232,172 $2,167
Norwegian Krone, 7/02/97 500,195 68,239 66,679 1,560
-------
$3,727
-------
-------
</TABLE>

See notes to financial statements.

UBS International Equity Portfolio
Schedule of Investments
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------

SUMMARY OF INDUSTRY DIVERSIFICATION

<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY DIVERSIFICATION NET ASSETS
- ------------------------------------------------------------------------------------------------------ ----------
<S> <C>
Chemicals............................................................................................. 6.7%
Food.................................................................................................. 6.7%
Banking & Finance..................................................................................... 6.1%
Electrical & Electronics.............................................................................. 5.7%
Food & Beverages...................................................................................... 5.2%
Energy Sources........................................................................................ 4.9%
Building Materials.................................................................................... 4.3%
Automotive............................................................................................ 3.6%
Pharmaceuticals....................................................................................... 3.5%
Real Estate........................................................................................... 3.2%
Household Appliances.................................................................................. 3.2%
Metals & Mining....................................................................................... 3.1%
Diversified........................................................................................... 3.0%
Tobacco............................................................................................... 2.4%
Transportation........................................................................................ 2.2%
Natural Gas........................................................................................... 2.1%
Apparel & Textiles.................................................................................... 2.1%
Paper & Forest Products............................................................................... 2.1%
Telecommunications.................................................................................... 1.7%
Machinery............................................................................................. 1.3%
Insurance............................................................................................. 1.3%
Utilities............................................................................................. 1.0%
Retail................................................................................................ 1.0%
Automotive & Heavy Machinery.......................................................................... 0.9%
Beverages............................................................................................. 0.9%
Defense Electronics................................................................................... 0.9%
Heavy Machinery....................................................................................... 0.9%
Shipping.............................................................................................. 0.8%
Photographic Equipment & Supplies..................................................................... 0.8%
Electronics........................................................................................... 0.7%
Building & Construction............................................................................... 0.6%
Technology............................................................................................ 0.6%
Automotive -- Parts & Equipment....................................................................... 0.5%
Printing.............................................................................................. 0.5%
Household Products.................................................................................... 0.4%
Aerospace/Defense Equipment........................................................................... 0.4%
Investment Banking.................................................................................... 0.4%
Airlines.............................................................................................. 0.3%
Engineering........................................................................................... 0.3%
Oil Refining.......................................................................................... 0.2%
Forest Products....................................................................................... 0.1%
Industrial-Diversified................................................................................ 0.1%
----------
Total Portfolio Holdings.............................................................................. 86.7%
Other assets in excess of liabilities................................................................. 13.3%
----------
Total Net Assets...................................................................................... 100.0%
----------
----------
</TABLE>

- ------------------------
See notes to financial statements.

UBS International Equity Portfolio
Statement of Assets and Liabilities
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $41,085,175).......................................... $45,874,281
Cash.............................................................................. 7,253,197
Foreign currency (cost $916,413).................................................. 901,456
Receivable for investment securities sold......................................... 735,605
Dividends receivable.............................................................. 207,688
Interest receivable............................................................... 33,445
Unrealized appreciation on open forward foreign currency contracts................ 3,727
Deferred organization expenses and other assets................................... 30,728
-----------
Total Assets................................................................. 55,040,127
-----------

LIABILITIES:
Investment advisory fees payable.................................................. 20,832
Administrative services fees payable.............................................. 8,912
Payable for investment securities purchased....................................... 2,030,600
Other accrued expenses............................................................ 73,429
-----------
Total Liabilities............................................................ 2,133,773
-----------

NET ASSETS........................................................................ $52,906,354
-----------
-----------

COMPOSITION OF NET ASSETS:
Paid-in capital for beneficial interests.......................................... $52,906,354
-----------
-----------
</TABLE>

- ------------------------
See notes to financial statements.

UBS International Equity Portfolio
Statement of Operations
For the Six Months Ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding tax of $146,199).................... $505,077
Interest.................................................................. 145,800
--------
Investment income.................................................... $ 650,877

EXPENSES
Investment advisory fees.................................................. 180,965
Administrative services fees.............................................. 12,963
Custodian fees and expenses............................................... 46,550
Fund accounting fees...................................................... 22,165
Audit fees................................................................ 19,701
Amortization of organization expenses..................................... 4,889
Legal fees................................................................ 4,010
Trustees' fees............................................................ 3,968
Insurance expense......................................................... 3,186
Miscellaneous expenses.................................................... 1,230
--------
Total expenses....................................................... 299,627
Less: Fee waiver..................................................... (74,515)
--------
Net expenses......................................................... 225,112
----------
Net investment income..................................................... 425,765
----------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities transactions.............................. 474,001
Net realized loss on foreign currency transactions........................ (29,098)
Net change in unrealized appreciation of investments...................... 4,415,204
Net change in unrealized depreciation of foreign currency contracts and
translations............................................................ 13,061
----------
Net realized and unrealized gain on investments........................... 4,873,168
----------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................... $5,298,933
----------
----------
</TABLE>

- ------------------------
See notes to financial statements.

UBS International Equity Portfolio
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
SIX MONTHS
ENDED APRIL 2, 1996*
JUNE 30, 1997 THROUGH
(UNAUDITED) DECEMBER 31, 1996
------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income........................................... $ 425,765 $ 483,834
Net realized gain on securities and foreign currency
transactions.................................................. 444,903 372,215
Net change in unrealized appreciation of investments, foreign
currency contracts and foreign currency translations.......... 4,428,265 367,572
------------- -----------------
Net increase in net assets resulting from operations............ 5,298,933 1,223,621
------------- -----------------

CAPITAL TRANSACTIONS:
Proceeds from contributions..................................... 25,766,560 60,373,286
Value of withdrawals............................................ (19,705,718) (20,050,328)
------------- -----------------
Net increase in net assets from capital transactions............ 6,060,842 40,322,958
------------- -----------------

NET INCREASE IN NET ASSETS...................................... 11,359,775 41,546,579

NET ASSETS:
Beginning of period............................................. 41,546,579 --
------------- -----------------
End of period................................................... $ 52,906,354 $ 41,546,579
------------- -----------------
------------- -----------------
</TABLE>

- ------------------------
* Commencement of operations.

See notes to financial statements.

UBS International Equity Portfolio
Financial Highlights
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
SIX MONTHS
ENDED APRIL 2, 1996*
JUNE 30, 1997 THROUGH
(UNAUDITED) DECEMBER 31, 1996
------------- -----------------
<S> <C> <C>
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted)................... $52,906 $41,547
Average commission rate per share(1)........................ $ 0.03 $ 0.02
Ratio of expenses to average net assets(2).................. 1.06%(3) 0.88%(3)
Ratio of net investment income to
average net assets(2)..................................... 2.00%(3) 2.07%(3)
Portfolio turnover.......................................... 15% 42%
</TABLE>

- ------------------------

* Commencement of operations.
(1) Most foreign securities markets do not charge commissions based on a rate
per share but as a percentage of the principal value of the transaction. As
a result, the above rate is not indicative of the commission arrangements
currently in effect.
(2) Net of fee waivers. Such fee waivers had the effect of reducing the ratio of
expenses to average net assets and increasing the ratio of net investment
income to average net assets by 0.35% (annualized) and 0.79% (annualized)
for the respective periods.
(3) Annualized.

See notes to financial statements.

UBS International Equity Portfolio
Notes to Financial Statements
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------

1. GENERAL
UBS International Equity Portfolio (the 'Portfolio'), a separate series of UBS
Investor Portfolios Trust (the 'Trust'), is registered under the Investment
Company Act of 1940, as a diversified, open-end management investment company.
The Trust is organized as a trust under the laws of the State of New York.

The investment adviser of the Portfolio is Union Bank of Switzerland, New York
Branch ('UBS'); UBS International Investment London Limited ('UBSII') is the
sub-adviser of the Portfolio. Investors Fund Services (Ireland) Limited ('IBT
Ireland') acts as the Portfolio's administrator.

2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates. The
following is a summary of significant accounting policies followed by the
Portfolio in the preparation of its financial statements:

A. INVESTMENT VALUATION -- Equity securities are valued at the last sale price
on the exchange on which they are primarily traded, or in the absence of
recorded sales, at the average of readily available closing bid and asked
prices, or at the quoted bid price. Unlisted securities are valued at the
average of the quoted bid and asked prices in the over-the-counter market.

Options on stock indices traded on national securities exchanges are valued at
their last sale price as of the close of options trading on such exchanges.
Stock index futures and related options traded on commodities exchanges are
valued at their last sales price as of the close of trading on such exchanges.

Securities or other assets for which market quotations are not readily available
are valued at fair value in accordance with procedures established by and under
the general supervision of the Portfolio's Board of Trustees (the 'Trustees').

Debt securities that mature in 60 days or less are valued at amortized cost,
which approximates market value. The amortized cost method involves valuing a
security at its cost on the date of purchase or, in the case of securities
purchased with more than 60 days until maturity, at their market value each day
until the 61st day prior to maturity, and thereafter assuming a constant
amortization to maturity of the difference between the principal amount due at
maturity and such valuation.

Trading in securities on most foreign exchanges and over-the-counter markets is
normally completed before the close of the New York Stock Exchange and may also
take place on days on which the New York Stock Exchange is closed. If events
materially affecting the value of foreign securities occur between the time when
the exchange on which they are traded closes and the pricing of the Portfolio,
such securities will be valued at fair value in accordance with procedures
established by and under the general supervision of the Trustees.

B. FOREIGN CURRENCY TRANSLATION -- The accounting records of the Portfolio are
maintained in U.S. dollars. Assets, including investment securities, and
liabilities denominated in foreign currency are translated into U.S. dollars at
the prevailing rate of exchange at period-end. Purchases and sales of
securities, income and expenses are translated at the prevailing rate of
exchange on the respective dates of such transactions. Gain/loss on translation
of foreign currency includes net exchange gains and losses, gains and losses on
disposition of foreign currency and adjustments to the amount of foreign taxes
withheld.

The assets and liabilities are presented at the exchange rates and market values
at the close of the period. The changes in net assets arising from changes in
exchange rates and the changes in net assets resulting from changes in market
prices of securities at period-end are not separately presented.

UBS International Equity Portfolio
Notes to Financial Statements
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------

However, gains and losses from certain foreign currency transactions are treated
as ordinary income for U.S. Federal income tax purposes.

C. FORWARD FOREIGN CURRENCY CONTRACTS -- The Portfolio may enter into forward
foreign currency contracts in connection with planned purchases or sales of
securities or to hedge the U.S. dollar value of portfolio securities denominated
in a particular currency. The Portfolio could be exposed to risks if the
counterparties to the contracts are unable to meet the terms of their contracts
and from unanticipated movements in the value of a foreign currency relative to
the U.S. dollar. The forward foreign currency contracts are marked-to-market
daily using the daily exchange rate of the underlying currency and any resulting
gains or losses are recorded for financial statement purposes as unrealized
gains or losses until the contract settlement date.

The Portfolio's use of forward contracts involves, to varying degrees, elements
of market risk in excess of the amount recognized in the statement of assets and
liabilities. The contract or notional amounts reflect the extent of the
Portfolio's involvement in these financial instruments. Risks arise from the
possible movements in the foreign exchange rates underlying these instruments.
The unrealized appreciation/depreciation on forward contracts reflects the
Portfolio's exposure at period-end to credit loss in the event of a
counterparty's failure to perform its obligations.

D. ACCOUNTING FOR INVESTMENTS -- Securities transactions are accounted for on
trade date. Realized gains and losses on security transactions are determined on
the identified cost basis. Dividend income and other distributions from
portfolio securities are recorded on the ex-dividend date, except, if the ex-
dividend date has passed, certain dividends from foreign securities are recorded
as soon as the Portfolio is informed of the ex-dividend date. Dividend income is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured. Withholding taxes on foreign dividends have been provided for in
accordance with the Portfolio's understanding of the applicable countries' tax
rules and rates. Recoveries of foreign taxes withheld from the Portfolio's
income are generally recorded, where applicable, by the funds investing in the
Portfolio. Interest income, adjusted for amortization of premiums and accretion
of discounts on investments, is accrued daily.

E. U.S. FEDERAL INCOME TAXES -- The Portfolio is considered a partnership under
the U.S. Internal Revenue Code (the 'Code'). As such, each investor in the
Portfolio will be taxed on its share of the Portfolio's ordinary income and
capital gains. Accordingly, no provision for federal income taxes is necessary.
It is intended that the Portfolio will be managed in such a way that an investor
will be able to satisfy the requirements of the Code applicable to regulated
investment companies.

F. DEFERRED ORGANIZATION EXPENSES -- Expenses incurred by the Portfolio in
connection with its organization in the amount of approximately $40,000 have
been deferred and are being amortized on a straight line basis over five years
from the Portfolio's commencement of operations (April 2, 1996).

G. OTHER -- The Portfolio bears all costs of its operations other than expenses
specifically assumed by UBS, UBSII and IBT Ireland. Expenses incurred by the
Trust on behalf of any two or more portfolios are allocated in proportion to net
assets of each portfolio, except when allocations of direct expenses to each
portfolio can otherwise be made fairly. Expenses directly attributable to the
Portfolio are charged directly to the Portfolio.

3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
A. INVESTMENT ADVISORY AGREEMENT -- The Portfolio has retained the services of
UBS as investment adviser and UBSII as investment sub-adviser. UBSII makes the
Portfolio's day-to-day investment decisions, arranges for the execution of
portfolio transactions and generally manages the Portfolio's investments and
operations subject to the supervision of UBS and the Trustees. As compensation
for overall investment management services, the Trust has agreed to pay UBS an
investment advisory fee, accrued daily and payable monthly, at an annual rate of
0.85% of the Portfolio's average daily net

UBS International Equity Portfolio
Notes to Financial Statements
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
assets. UBS, in turn, has agreed to pay UBSII a fee, accrued daily and payable
monthly, at an annual rate of 0.75% of the Portfolio's first $20 million average
daily net assets, 0.50% of the next $30 million average daily net assets and
0.40% of the Portfolio's average daily net assets in excess of $50 million. For
the six months ended June 30, 1997, the investment advisory fee amounted to
$180,965. UBS voluntarily agreed to waive $74,515 of this amount.

B. ADMINISTRATION AGREEMENT -- Under the terms of an Administration Agreement
with the Trust, effective March 13, 1997, IBT Ireland provides overall
administrative services and general office facilities to the Portfolio and the
Trust. As compensation for such services, the Portfolio has agreed to pay IBT
Ireland an administrative services fee, accrued daily and payable monthly, at an
annual rate of 0.07% of the Portfolio's first $100 million average daily net
assets and 0.05% of the Portfolio's average daily net assets in excess of $100
million. Prior to March 13, 1997, Signature Financial Group (Grand Cayman), Ltd.
('SFG') provided overall administrative services and general office facilities
to the Portfolio and the Trust. As compensation for such services, the Portfolio
had agreed to pay SFG an administrative services fee, accrued daily and paid
monthly, at an annual rate of 0.05% of the Portfolio's average daily net assets.
For the six months ended June 30, 1997, the administrative services fee amounted
to $12,963.

4. PURCHASES AND SALES OF INVESTMENTS
For the six months ended June 30, 1997, purchases and sales of investment
securities, excluding short-term investments, aggregated $11,178,601 and
$5,662,629, respectively.

UBS Institutional International Equity Fund
200 Clarendon Street
Boston, Massachusetts 02116

<TABLE>
<S> <C>
Investment Adviser Union Bank of Switzerland,
New York Branch
1345 Avenue of the Americas
New York, NY 10105

Administrator Investors Bank & Trust Company
200 Clarendon Street
Boston, Massachusetts 02116

Distributor First Fund Distributors, Inc.
4455 East Camelback Road
Phoenix, Arizona 85018

Custodian and Transfer Agent Investors Bank & Trust Company
200 Clarendon Street
Boston, Massachusetts 02116
</TABLE>

The accompanying financial statements dated as of June 30, 1997 were not audited
and, accordingly, no opinion is expressed on them.