UBS PRIVATE INVESTOR FUNDS INC, N-30D, 1997-03-05

UBS PRIVATE INVESTOR FUNDS INC
N-30D, 1997-03-05

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UBS
Bond
Fund

________

UBS
Private Investor
Funds, Inc.

Annual Report
December 31, 1996

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

Dear Shareholder,

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

We are pleased to provide you with the Fund's annual report for the period ended
December 31, 1996. This report contains a letter from the portfolio manager
discussing the performance of the Fund during the period April 2, 1996
(commencement of operations) through December 31, 1996 including an economic
overview. In addition, it includes a complete set of audited 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

Global investment perspective and knowledge

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 a 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 annual report must be accompanied or preceded by the Fund's prospectus.

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

FUND PERFORMANCE

The U.S. bond market generated unimpressive returns for 1996, beginning the
year on a very weak note but improving noticeably as the year progressed. After
posting slightly negative returns for the first six months of the year, the
Fund's benchmark, the Lehman Brothers Intermediate Government/Corporate Index
managed to post a 4.1% total return the full year period.

For the period April 2, 1996 (commencement of operations) through December
31, 1996, the Fund's performance was as follows:

GROWTH OF A $10,000 INVESTMENT
(HYPOTHETICAL -- PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RESULTS.)

This chart provides a comparison of the Fund's performance to that of the Lehman
Brothers Intermediate Government/Corporate Bond Index. This chart compares total
returns (which include changes in share price and reinvestment of all dividends
and capital gains) of a hypothetical $10,000 investment made on April 2, 1996
and held through December 31, 1996.

[PERFORMANCE GRAPH]

UBS LEHMAN BROTHERS
BOND INTERMEDIATE GOVERNMENT
FUND CORPORATE BOND INDEX
---- -----------------------

4/2/96 10000 10000
4/30/96 9935 9958
5/31/96 9930 9950
6/30/96 10031 10056
7/31/96 10057 10086
8/31/96 10072 10094
9/30/96 10199 10234
10/31/96 10378 10415
11/30/96 10512 10553
12/31/96 10436 10485

AVERAGE ANNUAL TOTAL RETURN (AS OF DECEMBER 31, 1996)

<TABLE>
<CAPTION>
LEHMAN BROTHERS
INTERMEDIATE
UBS BOND GOVT./CORP.
FUND BOND INDEX
-------- ---------------

<S> <C> <C>
Since inception (April 2, 1996).......................................... 4.36% 4.85%
</TABLE>

The Fund's performance benefited somewhat from the timing of its start-up in
April by avoiding the quite weak first quarter.

ECONOMIC OVERVIEW

The market suffered early in the year as renewed economic vigor combined with
low unemployment and relatively tight estimates of economic capacity presented a
worrisome picture as to increases in inflation. The market was encouraged as
economic growth eased in the third quarter, but even more importantly inflation
remained quite benign. In fact, if one excludes the volatile food and energy
sectors, core inflation as measured by the (core) Consumer Price Index continued
to improve from 3.0% in 1995 to 2.6% in 1996.

<PAGE>
<PAGE>
UBS Private Investor Funds, Inc.
Fund Commentary
- --------------------------------------------------------------------------------

While the market finished with a strong second half of the year, new worries
developed in the month of December. The December sell-off came amid tentative
signs of somewhat stronger economic growth in the form of slightly stronger
retail sales and employment growth.

ECONOMIC FORECAST

While Christmas sales were ultimately reported to be below initial
expectations we believe that consumer spending has entered the first quarter
with good momentum. As a result, we expect GDP to begin the year on a relatively
strong note of between 2.5% and 3.0% before slowing moderately later in the
year.

If this forecast were to come to fruition, we believe it would create
modest near term pressure on bond prices. Accordingly, we have adjusted our
duration to a level slightly below that of the benchmark pending the release of
additional economic data.

STRATEGY

As for our core corporate bond investments, the continued strong market
environment for corporate bonds continues to have both a positive and negative
impact. Strong market technicals have enabled our current holdings to perform
well but at the same time have made it difficult to add new positions due to
very limited attractive supply. This has led to a lower concentration of
corporate securities than we would have expected at this point. We, of course,
continue to search the markets for additional attractive opportunities.

Louis Cohen
Portfolio Manager
- ------------------------

The Fund is not insured by the FDIC and is not a deposit, 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 Signature Broker-Dealer Services, 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
Bond Portfolio (the 'Portfolio') which is a separate fund with an identical
investment objective.

Union Bank of Switzerland is voluntarily waiving all shareholder servicing fees
for the Fund and reimbursing a portion of the Fund's expenses. Union Bank of
Switzerland is also waiving all 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 Lehman Brothers Intermediate Government/Corporate Index is an unmanaged
composite of intermediate duration consisting of publicly issued, fixed rate,
non-convertible domestic bonds.

UBS Bond Fund
Statement of Assets and Liabilities
December 31, 1996
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investment in UBS Investor Portfolios Trust -- UBS Bond
Portfolio, at value................................................................ $7,554,365
Receivable from Adviser.............................................................. 6,387
Deferred organization expenses and other assets...................................... 63,262
----------
Total Assets............................................................... 7,624,014
----------

LIABILITIES:
Administrative services fees payable................................................. 294
Directors' fees payable.............................................................. 2,490
Dividends payable.................................................................... 33,772
Organization expenses payable........................................................ 32,742
Other accrued expenses............................................................... 54,426
----------
Total Liabilities.......................................................... 123,724
----------

NET ASSETS........................................................................... $7,500,290
----------
----------

SHARES OUTSTANDING ($0.001 par value, 10 million shares authorized).................. 74,906
----------
----------

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE....................... $100.13
----------
----------
COMPOSITION OF NET ASSETS:
Shares of common stock, at par....................................................... $ 75
Additional paid-in capital........................................................... 7,495,002
Net unrealized appreciation of investments, foreign currency contracts and foreign
currency translations.............................................................. 621
Accumulated net investment loss...................................................... (4,086)
Accumulated undistributed net realized gains on securities and foreign currency
transactions....................................................................... 8,678
----------
Net Assets................................................................. $7,500,290
----------
----------
</TABLE>

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

<PAGE>
<PAGE>
UBS Bond Fund
Statement of Operations
For the Period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Investment Income and Expenses allocated from UBS Investor Portfolios
Trust -- UBS Bond Portfolio
Interest............................................................. $195,583
Total expenses....................................................... $ 28,341
Less: Fee waiver..................................................... (13,889)
--------
Net expenses......................................................... 14,452
--------
Net Investment Income from UBS Investor Portfolios Trust -- UBS Bond
Portfolio............................................................... 181,131

EXPENSES
Shareholder service fees.................................................. 7,632
Administrative services fees.............................................. 1,526
Reports to shareholders expense........................................... 22,333
Transfer agent fees....................................................... 15,763
Audit fees................................................................ 11,259
Amortization of organization expenses..................................... 10,886
Fund accounting fees...................................................... 8,006
Legal fees................................................................ 7,508
Directors' fees........................................................... 6,006
Registration fees......................................................... 3,065
Miscellaneous expenses.................................................... 3,669
--------
Total expenses....................................................... 97,653
Less: Fee waiver and expense reimbursements.......................... (87,682)
--------
Net expenses......................................................... 9,971
--------
Net investment income..................................................... 171,160
--------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS FROM UBS INVESTOR
PORTFOLIOS TRUST -- UBS BOND PORTFOLIO
Net realized gain on securities transactions.............................. 9,932
Net realized loss on foreign currency transactions........................ (6,025)
Net change in unrealized depreciation of investments...................... (13,586)
Net change in unrealized appreciation of foreign currency contracts and
translations............................................................ 14,207
--------
Net realized and unrealized gain on investments from UBS Investor
Portfolios Trust -- UBS Bond Portfolio.................................. 4,528
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................... $175,688
--------
--------
</TABLE>

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

<PAGE>
<PAGE>
UBS Bond Fund
Statement of Changes in Net Assets
For the Period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income.................................................................. $ 171,160
Net realized gain on securities and foreign currency transactions...................... 3,907
Net change in unrealized appreciation of investments, foreign currency contracts and
foreign currency translations........................................................ 621
----------
Net increase in net assets resulting from operations................................... 175,688
----------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................................................................. (170,408)
Net realized gains on investments...................................................... (1,273)
----------
Total dividends and distributions to shareholders...................................... (171,681)
----------

TRANSACTIONS IN SHARES OF COMMON STOCK:
Net proceeds from sale of shares....................................................... 10,846,978
Net asset value of shares issued to shareholders in reinvestment of dividends and
distributions........................................................................ 127,366
Cost of shares redeemed................................................................ (3,503,061)
----------
Net increase in net assets from transactions in shares of common stock................. 7,471,283
----------

NET INCREASE IN NET ASSETS............................................................. 7,475,290
NET ASSETS:
Beginning of period.................................................................... 25,000
----------
End of period (including net investment loss of $4,086)................................ $7,500,290
----------
----------
</TABLE>

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

<PAGE>
<PAGE>
UBS Bond Fund
Financial Highlights
For the Period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<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...................................................... 4.12
Net realized and unrealized gain on investments, foreign currency contracts
and foreign currency translations........................................ 0.14
-------
Total income from investment operations.................................... 4.26
-------

Less Dividends and Distributions to Shareholders:
Dividends from net investment income....................................... (4.11)
Distributions from net realized gains...................................... (0.02)
-------
Total dividends and distributions.......................................... (4.13)
-------

Net asset value, end of period.................................................. $100.13
-------
-------
Total Return.................................................................... 4.36%(1)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted)................................... $ 7,500
Ratio of expenses to average net assets(2)................................. 0.80%(3)
Ratio of net investment income to average net assets(2).................... 5.61%(3)
</TABLE>

- ------------------------
(1) Not annualized.
(2) Includes the Fund's share of UBS Investor Portfolio Trust -- UBS Bond
Portfolio expenses and net of fee waivers and expense reimbursements. Such
fee waivers 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 3.33% (annualized).
(3) Annualized.

See notes to financial statements.

UBS Bond Fund
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------

1. GENERAL
UBS Bond 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 December 31, 1996, the Company
included two other funds, UBS U.S. Equity Fund and UBS International Equity
Fund. These financial statements relate only to the Fund.

The Fund had no operations prior to April 2, 1996 other than the sale to
Signature Financial Group, Inc. of 250 shares of common stock for $25,000.

The Fund seeks to achieve its investment objective by investing substantially
all of its investable assets in the UBS Bond 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.

Signature Broker-Dealer Services, Inc. ('Signature'), a wholly-owned subsidiary
of Signature Financial Group, Inc., serves as the Fund's administrator and
distributor. Union Bank of Switzerland, New York Branch ('UBS') serves as the
fund 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
(14.3% at December 31, 1996). 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.

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 daily and paid monthly. 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

<PAGE>
<PAGE>
UBS Bond Fund
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------
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. For
the fiscal year ended December 31, 1996, the Fund increased accumulated
undistributed net realized gains by $6,044, reduced accumulated undistributed
net investment income by $4,838 and decreased paid-in capital by $1,206. Net
investment income, net realized gains and net assets were not affected by this
change.

E. DEFERRED ORGANIZATION EXPENSES -- Expenses incurred by the Fund in connection
with its organization in the amount of $72,500 have been deferred and are being
amortized on a straight line basis over five years from the Fund's commencement
of operations (April 2, 1996).

F. OTHER -- The Fund bears all costs of its operations other than expenses
specifically assumed by Signature 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. ADMINISTRATIVE SERVICES AGREEMENT -- Under the terms of an Administrative
Services Agreement with the Company, Signature provides overall administrative
services and general office facilities. As compensation for such services, the
Company has agreed to pay Signature a fee, accrued daily and payable monthly, at
an annual rate of 0.05% of the Fund's first $100 million average daily net
assets and 0.025% of the next $100 million average daily net assets. Signature
does not receive a fee on average daily net assets in excess of $200 million.
For the period April 2, 1996 (commencement of operations) through December 31,
1996, the administrative services fee amounted to $1,526.

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

C. SHAREHOLDER SERVICES AGREEMENT -- The Fund has entered into a Shareholder
Services Agreement with UBS pursuant to which UBS provides certain services to
shareholders of the Fund. The Fund has agreed to pay UBS a fee for these
services, accrued daily and payable monthly, at an annual rate of 0.25% of the
average daily net assets of the Fund. For the period April 2, 1996 (commencement
of operations) through December 31, 1996, the shareholder service fee amounted
to $7,632, all of which was waived.

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

E. 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, to an annual rate of 0.80% of the Fund's
average daily net assets. For the period April 2, 1996 (commencement of
operations) through December 31, 1996, UBS reimbursed the Fund for expenses
totaling $80,050 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.

<PAGE>
<PAGE>
UBS Bond Fund
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------

4. CAPITAL SHARE TRANSACTIONS
At December 31, 1996 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. Transactions in shares of the Fund for the period April 2, 1996
(commencement of operations) through December 31, 1996 were as follows:

<TABLE>
<S> <C>
Shares subscribed............................ 108,567
Shares issued in reinvestment of dividends
and distributions.......................... 1,278
Shares redeemed.............................. (35,189)
-------
Net increase in shares outstanding........... 74,656
-------
-------
</TABLE>

<PAGE>
<PAGE>
UBS Bond Fund
Report of Independent Accountants
- --------------------------------------------------------------------------------

To the Board of Directors and
Shareholders of UBS Private Investor Funds, Inc.

In our opinion, the accompanying statement of assets and liabilities, and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
the UBS Bond Fund (the 'Fund') (one of the funds constituting the UBS Private
Investor Funds, Inc.) at December 31, 1996, and the results of its operations,
the changes in its net assets and the financial highlights for the period April
2, 1996 (commencement of operations) through December 31, 1996, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as 'financial statements') are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audit. We conducted our audit
of these financial statements in accordance with generally accepted auditing
standards which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for the opinion expressed above.

PRICE WATERHOUSE LLP

1177 Avenue of the Americas
New York, New York
February 21, 1997

UBS Bond Portfolio
Schedule of Investments
December 31, 1996
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FACE COUPON MATURITY
VALUE SECURITY DESCRIPTION RATE DATE VALUE
- ---------- ------------------------------------------------------------------ ------ -------- -----------
<C> <S> <C> <C> <C>
U.S. TREASURY & U.S. GOVERNMENT AGENCY OBLIGATIONS -- 60.7%
U.S. TREASURY OBLIGATIONS -- 56.3%
$ 150,000 U.S. Treasury Note................................................ 6.25 % 1/31/97 $ 150,070
25,000 U.S. Treasury Note................................................ 6.125 % 5/31/97 25,070
50,000 U.S. Treasury Note................................................ 6.375 % 6/30/97 50,258
1,000,000 U.S. Treasury Note................................................ 6.00 % 8/31/97 1,002,810
1,170,000 U.S. Treasury Note................................................ 5.125 % 6/30/98 1,159,400
1,290,000 U.S. Treasury Note................................................ 5.25 % 7/31/98 1,279,319
100,000 U.S. Treasury Note................................................ 7.00 % 4/15/99 102,234
150,000 U.S. Treasury Note................................................ 6.75 % 5/31/99 152,555
5,200,000 U.S. Treasury Note................................................ 6.375 % 7/15/99 5,247,112
155,000 U.S. Treasury Note................................................ 6.875 % 8/31/99 158,246
145,000 U.S. Treasury Note................................................ 7.125 % 9/30/99 149,010
1,500,000 U.S. Treasury Bond................................................ 5.875 % 11/15/99 1,494,135
1,203,000 U.S. Treasury Bond................................................ 7.75 % 1/31/00 1,258,831
2,600,000 U.S. Treasury Note................................................ 7.125 % 2/29/00 2,676,778
505,000 U.S. Treasury Note................................................ 6.75 % 4/30/00 514,550
1,344,000 U.S. Treasury Note................................................ 6.25 % 5/31/00 1,349,457
1,700,000 U.S. Treasury Note................................................ 6.125 % 7/31/00 1,700,000
650,000 U.S. Treasury Note................................................ 6.125 % 9/30/00 649,590
2,250,000 U.S. Treasury Note................................................ 5.75 % 10/31/00 2,220,120
1,000,000 U.S. Treasury Note................................................ 5.50 % 12/31/00 976,870
775,000 U.S. Treasury Bond................................................ 6.25 % 4/30/01 776,697
1,500,000 U.S. Treasury Note................................................ 6.625 % 7/31/01 1,523,910
1,200,000 U.S. Treasury Note................................................ 6.25 % 10/31/01 1,201,128
500,000 U.S. Treasury Note................................................ 7.50 % 11/15/01 526,330
170,000 U.S. Treasury Note................................................ 7.50 % 5/15/02 179,748
800,000 U.S. Treasury Note................................................ 6.375 % 8/15/02 805,248
70,000 U.S. Treasury Note................................................ 6.25 % 2/15/03 69,913
450,000 U.S. Treasury Note................................................ 5.75 % 8/15/03 436,500
419,000 U.S. Treasury Note................................................ 7.25 % 5/15/04 440,868
100,000 U.S. Treasury Note................................................ 7.25 % 8/15/04 105,250
1,450,000 U.S. Treasury Note................................................ 6.50 % 10/15/06 1,457,932
-----------
29,839,939
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 4.4%
1,400,000 Federal Home Loan Mortgage Corp................................... 5.96 % 10/20/00 1,385,342
995,400 Federal National Mortgage Assc., Pool #250576..................... 7.00 % 6/01/26 973,680
-----------
2,359,022
-----------
TOTAL U.S. TREASURY & U.S. GOVERNMENT AGENCY
OBLIGATIONS (COST $32,115,403).................................. 32,198,961
-----------
CORPORATE OBLIGATIONS -- 27.5%

CORPORATE OBLIGATIONS -- DOMESTIC -- 24.5%
AEROSPACE/DEFENSE -- 1.0%
500,000 Lockheed Martin................................................... 6.55 % 5/15/99 502,226
-----------
BANKING -- 3.9%
500,000 BanPonce Corp..................................................... 6.75 % 4/26/00 502,195
500,000 Capital One Bank.................................................. 6.87 % 8/16/99 502,605
250,000 Capital One Bank.................................................. 6.95 % 6/14/00 251,078
720,000 J.P. Morgan & Co.................................................. 8.50 % 8/15/03 785,124
-----------
2,041,002
-----------
</TABLE>

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

<PAGE>
<PAGE>
UBS Bond Portfolio
Schedule of Investments
December 31, 1996
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FACE COUPON MATURITY
VALUE SECURITY DESCRIPTION RATE DATE VALUE
- ---------- ------------------------------------------------------------------ ------ -------- -----------
<C> <S> <C> <C> <C>
BROKERAGE -- 3.2%
$ 500,000 Goldman Sachs..................................................... 6.25 % 2/01/03 $ 486,795
600,000 Lehman Brothers Inc............................................... 7.14 % 9/24/99 606,666
200,000 Lehman Brothers Inc............................................... 7.25 % 4/15/03 201,266
400,000 Salomon Inc....................................................... 7.25 % 5/01/01 403,549
-----------
1,698,276
-----------
CHEMICALS -- 0.5%
250,000 Praxair........................................................... 6.70 % 4/15/01 250,785
-----------
ENERGY -- 0.8%
400,000 Oryx Energy Co.................................................... 10.00 % 4/01/01 439,076
-----------
FINANCING & LEASING -- 4.8%
950,000 Associates Corp N.A............................................... 8.50 % 1/10/00 1,005,347
500,000 CIT Group Holdings................................................ 6.50 % 7/13/98 504,220
750,000 Countrywide Home Loan............................................. 7.45 % 9/16/03 764,663
265,000 General Electric Capital Corp..................................... 6.875 % 4/15/00 270,239
-----------
2,544,469
-----------
INDUSTRIAL -- CAPTIVE FINANCE -- 3.2%
600,000 Caterpillar Financial............................................. 6.77 % 12/29/00 605,274
500,000 Pitney Bowes Credit............................................... 6.54 % 7/15/99 503,590
600,000 Sears Roebuck Acceptance Corp..................................... 5.59 % 2/16/01 578,790
-----------
1,687,654
-----------
MEDIA/CABLE -- 2.8%
600,000 News America Holdings............................................. 7.50 % 3/01/00 613,716
200,000 Paramount Communications.......................................... 7.50 % 1/15/02 199,834
650,000 Tele-Communications Inc........................................... 7.375 % 2/15/00 646,503
-----------
1,460,053
-----------
NATURAL GAS -- 1.1%
600,000 Kern River Funding (a)............................................ 6.72 % 9/30/01 599,172
-----------
REAL ESTATE -- 1.4%
650,000 Franchise Finance................................................. 7.02 % 2/20/03 638,950
125,000 Susa Partnership LP............................................... 7.125 % 11/01/03 123,581
-----------
762,531
-----------
TECHNOLOGY -- 0.9%
500,000 CSC Enterprises (a)............................................... 6.50 % 11/15/01 496,355
-----------
UTILITIES -- 0.9%
464,000 BVPS II Funding Corp.............................................. 7.38 % 12/01/99 466,320
-----------
TOTAL CORPORATE OBLIGATIONS -- DOMESTIC (COST $12,864,655)........ 12,947,919
-----------
CORPORATE OBLIGATIONS -- FOREIGN -- 2.7%
BANKING -- 1.7%
500,000 Banco Central Hispano............................................. 7.50 % 6/15/05 509,585
400,000 Spintab (a)....................................................... 7.50 % 8/14/49 403,120
-----------
912,705
-----------
PAPER & FOREST PRODUCTS -- 1.0%
500,000 Canadian Pacific Forest........................................... 10.25 % 1/15/03 528,550
-----------
TOTAL CORPORATE OBLIGATIONS -- FOREIGN (COST $1,473,146).......... 1,441,255
-----------
CORPORATE OBLIGATIONS -- EURODOLLAR -- 0.3%
ENERGY -- 0.1%
50,000 BP America Inc.................................................... 9.75 % 3/01/99 53,531
-----------
</TABLE>

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

<PAGE>
<PAGE>
UBS Bond Portfolio
Schedule of Investments
December 31, 1996
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FACE COUPON MATURITY
VALUE SECURITY DESCRIPTION RATE DATE VALUE
- ---------- ------------------------------------------------------------------ ------ -------- -----------
<C> <S> <C> <C> <C>
INDUSTRIAL -- CAPTIVE FINANCE -- 0.2%
$ 40,000 Ford Capital BV................................................... 9.75 % 6/05/97 $ 40,625
80,000 Unilever Capital.................................................. 9.25 % 3/29/00 87,000
-----------
127,625
-----------
TOTAL CORPORATE OBLIGATIONS -- EURODOLLAR (COST $180,661)......... 181,156
-----------
TOTAL CORPORATE OBLIGATIONS (COST $14,518,462).................... 14,570,330
-----------
FOREIGN GOVERNMENT OBLIGATIONS -- 5.5%
CANADA -- 4.2%
1,750,000* Canada Government................................................. 7.50 % 9/01/00 1,376,538
1,000,000* Canada Government................................................. 7.00 % 9/01/01 775,493
50,000 Province of Ontario............................................... 7.375 % 1/27/03 52,107
50,000 Province of Quebec................................................ 9.125 % 8/22/01 54,875
-----------
2,259,013
-----------
ITALY -- 0.1%
20,000 Italy (Euro Bond)................................................. 9.375 % 4/03/97 20,200
-----------
JAPAN -- 1.2%
355,000 Japan Finance Corp................................................ 9.125 % 10/11/00 382,587
250,000 Japan Finance Corp. for Municipal Enterprises..................... 6.85 % 4/15/06 252,145
-----------
634,732
-----------
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (COST $2,922,758)............ 2,913,945
-----------
ASSET BACKED SECURITIES -- 1.8%
CREDIT CARD RECEIVABLES -- 1.8%
440,000 First Omni Bank Credit Card Trust, Series 96-A.................... 6.65 % 9/15/03 443,709
500,000 Sears Credit Account Master Trust Series 96-3..................... 7.00 % 7/16/08 510,000
-----------
TOTAL ASSET BACKED SECURITIES (COST $937,838)..................... 953,709
-----------
TOTAL INVESTMENTS AT MARKET VALUE -- 95.5%
(COST $50,494,461)........................................................... 50,636,945
OTHER ASSETS IN EXCESS OF LIABILITIES -- 4.5%.................................. 2,363,907
-----------
NET ASSETS -- 100.0%........................................................... $53,000,852
-----------
-----------
</TABLE>

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

* Securities denominated in Canadian dollars.

(a) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At December 31,
1996, the total value of such securities amounted to $1,498,647 or 2.8% of
net assets.

SUMMARY OF OPEN FORWARD FOREIGN CURRENCY CONTRACTS

<TABLE>
<CAPTION>
U.S. DOLLAR
FOREIGN U.S. DOLLAR NET UNREALIZED
CURRENCY UNITS U.S. DOLLAR VALUE AT APPRECIATION/
CURRENCY AND SETTLEMENT DATE PURCHASED/SOLD COST/PROCEEDS DECEMBER 31, 1996 (DEPRECIATION)
- --------------------------------------------------- -------------- ------------- ------------------ --------------
<S> <C> <C> <C> <C>
PURCHASE CONTRACT
German Deutsche Mark, 1/14/97...................... 1,342,000 $ 863,578 $ 873,102 $ 9,524
SALE CONTRACTS
Canadian Dollar, 1/13/97........................... 2,145,000 1,617,464 1,567,696 49,768
Canadian Dollar, 1/13/97........................... 874,767 646,539 639,333 7,206
German Deutsche Mark, 1/14/97...................... 1,342,000 892,198 873,102 19,096
-------
$ 85,594
-------
-------
</TABLE>

Note: Based on the cost of investments of $50,516,946 for Federal Income Tax
purposes at December 31, 1996, the aggregate gross unrealized appreciation
and depreciation was $246,232 and $126,233, respectively, resulting in net
unrealized appreciation of $119,999.

See notes to financial statements.

UBS Bond Portfolio
Statement of Assets and Liabilities
December 31, 1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investment, at value (cost $50,494,461).......................................... $50,636,945
Cash............................................................................. 1,443,320
Interest receivable.............................................................. 905,546
Unrealized appreciation on open forward foreign currency contracts............... 85,594
Deferred organization expenses and other assets.................................. 44,038
-----------
Total Assets................................................................ 53,115,443
-----------
LIABILITIES:
Administrative services fees payable............................................. 2,061
Trustees' fees payable........................................................... 877
Organization expenses payable.................................................... 42,733
Other accrued expenses........................................................... 68,920
-----------
Total Liabilities........................................................... 114,591
-----------

NET ASSETS....................................................................... $53,000,852
-----------
-----------

COMPOSITION OF NET ASSETS:
Paid-in capital for beneficial interests......................................... $53,000,852
-----------
-----------
</TABLE>

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

<PAGE>
<PAGE>
UBS Bond Portfolio
Statement of Operations
For the Period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest............................................................ $ 1,848,040

EXPENSES:
Investment advisory fees............................................ $ 131,348
Administrative services fees........................................ 14,594
Audit fees.......................................................... 39,357
Custodian fees and expenses......................................... 27,616
Fund accounting fees................................................ 19,348
Legal fees.......................................................... 18,766
Amortization of organization expenses............................... 7,508
Trustees' fees...................................................... 7,508
Insurance expense................................................... 4,151
Miscellaneous expenses.............................................. 6,110
---------
Total expenses................................................. 276,306
Less: Fee waiver............................................... (131,348)
---------
Net expenses................................................... 144,958
-----------
Net investment income............................................... 1,703,082
-----------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities transactions........................ 113,360
Net realized loss on foreign currency transactions.................. (68,736)
Net change in unrealized appreciation of investments................ 142,484
Net change in unrealized appreciation of foreign currency contracts
and translations.................................................. 84,921
-----------
Net realized and unrealized gain on investments..................... 272,029
-----------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ $ 1,975,111
-----------
-----------
</TABLE>

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

<PAGE>
<PAGE>
UBS Bond Portfolio
Statement of Changes in Net Assets
For the period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income............................................................... $ 1,703,082
Net realized gain on securities and foreign currency transactions................... 44,624
Net change in unrealized appreciation of investments, foreign currency contracts and
foreign currency translations..................................................... 227,405
-----------
Net increase in net assets resulting from operations................................ 1,975,111
-----------

CAPITAL TRANSACTIONS:
Proceeds from contributions......................................................... 59,142,218
Value of withdrawals................................................................ (8,116,477)
-----------
Net increase in net assets from capital transactions................................ 51,025,741
-----------

NET INCREASE IN NET ASSETS.......................................................... 53,000,852

NET ASSETS:
Beginning of period................................................................. --
-----------
End of period....................................................................... $53,000,852
-----------
-----------
</TABLE>

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

<PAGE>
<PAGE>
UBS Bond Portfolio
Financial Highlights
For the Period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted)...................................... $53,001
Ratio of expenses to average net assets(1)..................................... 0.50%(2)
Ratio of net investment income to average net assets(1)........................ 5.83%(2)
Portfolio turnover............................................................. 100%
</TABLE>

- ------------------------
(1) 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 0.45% (annualized).
(2) Annualized.

See notes to financial statements.

UBS Bond Portfolio
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------

1. GENERAL
UBS Bond 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'). Signature Financial Group (Grand Cayman), Ltd. ('SFG'), a
wholly-owned subsidiary of Signature Financial Group, Inc., acts as the
Portfolio's administrator and placement agent.

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 -- Debt securities with a remaining maturity of more
than 60 days are normally valued by a pricing service approved by the Board of
Trustees (the 'Trustees'). Such pricing service will consider various factors
when arriving at a valuation for a security. Such factors include yields and
prices of comparable securities, indications as to values from dealers in such
securities and general market conditions. In the event a pricing service is
unable to price a security, the security will be valued by taking the average of
the bid and ask prices as provided by a dealer in such security.

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.

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 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 year 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 year. 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 held at year-end are not separately presented. 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

<PAGE>
<PAGE>
UBS Bond Portfolio
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------
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 year end to credit loss in the event of a counterparty's
failure to perform its obligations.

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 $50,000 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 and SFG. Expenses incurred by the Trust on behalf of
any two or more portfolios are allocated in proportion to the 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. UBS 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. 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 0.45% of
the Portfolio's average daily net assets. For the period April 2, 1996
(commencement of operations) through December 31, 1996, UBS voluntarily agreed
to waive the entire investment advisory fee. Such waiver amounted to $131,348.

B. ADMINISTRATIVE SERVICES AGREEMENT -- Under the terms of an Administrative
Services Agreement with the Trust, SFG 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 SFG an administrative
services fee, accrued daily and payable monthly, at an annual rate of 0.05% of
the Portfolio's average daily net assets. For the period from April 2, 1996
(commencement of operations) through December 31, 1996, the administrative
services fee amounted to $14,594.

C. EXCLUSIVE PLACEMENT AGENT AGREEMENT -- Under the terms of an Exclusive
Placement Agent Agreement with the Trust, SFG has agreed to act as the Trust's
placement agent. SFG does not receive any additional fees for services provided
pursuant to this agreement.

<PAGE>
<PAGE>
UBS Bond Portfolio
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------

4. PURCHASES AND SALES OF INVESTMENTS
For the period April 2, 1996 (commencement of operations) through December 31,
1996, purchases and sales of investment securities, excluding short-term
investments, were as follows:

<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------

<S> <C> <C>
U.S. Government Securities............................................... $60,905,077 $30,940,595
Corporate obligations.................................................... 28,583,638 7,953,111
----------- -----------
Total.......................................................... $89,488,715 $38,893,706
----------- -----------
----------- -----------
</TABLE>

<PAGE>
<PAGE>
UBS Bond Portfolio
Report of Independent Accountants
- --------------------------------------------------------------------------------

To the Board of Trustees and
Investors of UBS Investor Portfolios Trust

In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the UBS Bond Portfolio (the
'Portfolio') (one of the portfolios constituting the UBS Investor Portfolios
Trust) at December 31, 1996, and the results of its operations, the changes in
its net assets and the financial highlights for the period April 2, 1996
(commencement of operations) through December 31, 1996, in conformity with
generally accepted accounting principles in the United States. These financial
statements and financial highlights (hereafter referred to as 'financial
statements') are the responsibility of the Portfolio's management; our
responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit of these financial statements in accordance
with generally accepted auditing standards in the United States which require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audit, which included confirmation
of securities at December 31, 1996 by correspondence with the custodian,
provides a reasonable basis for the opinion expressed above.

PRICE WATERHOUSE
Chartered Accountants

Toronto, Ontario
February 21, 1997

UBS Bond Fund
6 St. James Avenue
Boston, Massachusetts 02116

Investment Adviser Union Bank of Switzerland,
New York Branch
1345 Avenue of the Americas
New York, NY 10105

Administrator and Distributor Signature Broker-Dealer Services, Inc.
6 St. James Avenue
Boston, Massachusetts 02116

Custodian and Transfer Agent Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02111

UBS
International
Equity
Fund

________

UBS
Private Investor
Funds, Inc.

Annual Report
December 31, 1996

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

Dear Shareholder,

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

We are pleased to provide you with the Fund's annual report for the period ended
December 31, 1996. This report contains a letter from the portfolio manager
discussing the performance of the Fund during the period April 2, 1996
(commencement of operations) through December 31, 1996 including a market
overview. In addition, it includes a complete set of audited financial
statements as well as a schedule of investments.

The UBS Private Investor Funds bring you:

The expertise of The Private Bank's professional money managers

Global investment perspective and knowledge

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.

The annual report must be accompanied or preceded by the Fund's prospectus.

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

FUND PERFORMANCE

The UBS International Equity Fund achieved a total return of 4.65% for the
period April 2, 1996 (commencement of operations) through December 31, 1996,
compared to the 3.27% rise in the MSCI EAFE Index for the same period.

GROWTH OF A $10,000 INVESTMENT
(HYPOTHETICAL -- PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RESULTS.)

This 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 2, 1996 and held through December 31, 1996.

[PERFORMANCE GRAPH]

UBS MSCI
INTERNATIONAL EAFE
EQUITY FUND INDEX
------------ -----
4/2/96 10000 10000
10205 10310
5/31/96 10061 10120
10132 10177
7/31/96 9898 9880
10008 9902
9/30/96 10122 10165
10126 10061
11/30/96 10500 10462
10465 10327

The major reason for the outperformance was the underweight position we held in
Japanese equities. Having started 23.3% light of the Japanese benchmark, we
began to reduce the underweighting as the market underperformed, ending the
period 10.6% light. In addition, stock selection was a major positive in Japan,
when exporters which we held did particularly well and in Germany where
restructuring proved beneficial for a number of holdings. Offsetting these
positive trends was stock selection in France and the UK where growth stocks,
such as pharmaceuticals, which we did not hold, performed particularly well.

MARKET OVERVIEW

The economic trend seen in 1995 of reasonable growth in the US offset by a very
slow recovery in Japan and Continental Europe continued throughout 1996. This
was despite interest rates at 0.5% in Japan and very low levels in Europe.

In Japan, indications are that the economy remains in extremely fragile shape.
Third quarter GDP was unchanged quarter on quarter, the TANKAN survey was very
weak and inflation remains subdued. In addition, the budget drafted in December
for the year starting April 1997 amounts to a tax rise of 7trn /Y/en, including
the rise in consumption tax from 3% to 5%. This has been brought about by the
fiscal handouts of the past two years which have led to a serious deterioration
in government finances. Given

<PAGE>
<PAGE>
UBS Private Investor Funds, Inc.
Fund Commentary
- --------------------------------------------------------------------------------
this background the market was weak, falling 5% in local currency, which was
exacerbated by /Y/en weakness to give a return of - 15% in US$. The banking
sector was particularly soft as further bad news on non-performing loans emerged
and the supply of new equity took its toll.

In Europe, as the 1997 deadline for meeting the criteria set at Maastricht to
participate in the new single currency draws even closer, political and economic
debate across the continent has been dominated by this single issue. Efforts
have focused on two areas, reducing government deficits and encouraging either a
more relaxed interpretation of the rules or finding ways of fulfilling the
letter, if not the spirit, of the agreement. This has led to considerable
friction, both internally and externally. At a time of high and rising
unemployment across Europe (over 12.5% in France, 10.6% in Germany) people are
in no mood to accept government spending cuts. Events culminated with the Dublin
summit where some limited progress was made in establishing the mechanisms
required when the single currency is introduced, but could not mask the
fundamental differences that still exist between many countries on this issue.

Despite the problems, with bond markets converging to the lower yield levels,
stock markets performed well. A major contributory factor was that corporate
manangements continue to embrace the concept of `shareholder value' with ever
increasing zeal. Most markets were up anywhere from 20% to 30%. This was offset
a little by the strength of the US$, the area as a whole returning 21.6% in US$.

Asian economies have suffered this year from lower than expected global growth.
This has been exacerbated by the collapse in semi-conductor pricing and a
decline in corporate profitability as productivity fails to keep pace with wage
inflation. The star performer marketwise was Hong Kong, up 33.3% in local terms,
where property prices appear to be on the increase again, encouraged by the
performance of US financial markets. In smaller markets it was rather more
mixed, with Thailand and Korea falling over 40% in US$ terms.

ECONOMIC FORECAST

We believe economies will continue to expand, with Japan and Continental Europe
speeding up a little. If anything, this means somewhat higher inflation and
interest rates.

With this relatively benign background, equity markets should do moderately
well. European markets look best placed to benefit as valuations are lowest in
this area and restructuring should substantially increase profitability.

Problems remain in the financial system in Japan which should depress returns
from banks. The outlook is better for exporters given the more competitive /Y/en
and domestic cyclicals represent reasonable relative value.

The Liberal government in Australia will continue to promote a `pro-business'
culture which will encourage further corporate activity in that market. The
outlook in Hong Kong becomes less clear as the handover draws nearer and could
cause weakness. The smaller markets are cheaper after last year's
disappointments and other increased opportunities.

In all areas we expect `growth' stocks to do less well as valuations have risen
above fair value.

Robin Apps
Portfolio Manager

<PAGE>
<PAGE>
UBS Private Investor Funds, Inc.
Fund Commentary
- --------------------------------------------------------------------------------

Shares of the Fund are distributed by Signature Broker-Dealer Services, 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 waiving all shareholder servicing fees
for the Fund and 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 International Equity Fund
Statement of Assets and Liabilities
December 31, 1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investment in UBS Investor Portfolios Trust -- UBS International Equity Portfolio,
at value.......................................................................... $26,610,544
Receivable from Adviser............................................................. 7,091
Tax reclaim receivable.............................................................. 29,290
Deferred organization expenses and other assets..................................... 63,600
-----------
Total Assets.............................................................. 26,710,525
-----------
LIABILITIES:
Administrative services fees payable................................................ 568
Directors' fees payable............................................................. 341
Organization expenses payable....................................................... 32,509
Other accrued expenses.............................................................. 53,378
-----------
Total Liabilities......................................................... 86,796
-----------
NET ASSETS.......................................................................... $26,623,729
-----------
-----------
SHARES OUTSTANDING ($0.001 par value, 10 million shares authorized)................. 258,877
-----------
-----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE...................... $102.84
-----------
-----------
COMPOSITION OF NET ASSETS:
Shares of common stock, at par...................................................... $ 259
Additional paid-in capital.......................................................... 26,227,022
Net unrealized appreciation of investments, foreign currency contracts and foreign
currency translations............................................................. 340,608
Accumulated undistributed net investment income..................................... 18,022
Accumulated undistributed net realized gains on securities and foreign currency
translations...................................................................... 37,818
-----------
Net Assets................................................................ $26,623,729
-----------
-----------
</TABLE>

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

<PAGE>
<PAGE>
UBS International Equity Fund
Statement of Operations
For the Period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<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 $14,285)............... $194,621
Interest............................................................ 66,737
--------
Investment income................................................... 261,358
Total expenses...................................................... $137,406
Less: Fee waiver.................................................... (63,711)
--------
Net expenses........................................................ 73,695
--------
Net Investment Income from UBS Investor Portfolios Trust -- UBS
International Equity Portfolio......................................... 187,663

EXPENSES
Shareholder service fees............................................ 20,658
Administrative services fees........................................ 4,131
Reports to shareholders expense..................................... 22,333
Transfer agent fees................................................. 15,763
Audit fees.......................................................... 11,259
Amortization of organization expenses............................... 10,886
Fund accounting fees................................................ 8,006
Legal fees.......................................................... . 7,508
Directors' fees..................................................... 6,006
Registration fees................................................... 2,944
Miscellaneous expenses.............................................. 4,849
--------
Total expenses................................................. 114,343
Less: Fee waiver and expense reimbursements.................... (73,557)
--------
Net expenses................................................... 40,786
--------
Net investment income.................................................... 146,877
--------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS FROM UBS INVESTOR
PORTFOLIOS TRUST -- UBS INTERNATIONAL EQUITY PORTFOLIO
Net realized gain on securities transactions............................. 132,573
Net realized gain on foreign currency transactions....................... 2,984
Net change in unrealized appreciation of investments..................... 342,866
Net change in unrealized depreciation of foreign currency contracts and
translations........................................................... (2,258)
--------
Net realized and unrealized gain on investments from UBS Investor
Portfolios Trust -- UBS International Equity Portfolio................. 476,165
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $623,042
--------
--------
</TABLE>

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

UBS International Equity Fund
Statement of Changes in Net Assets
For the period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income.................................................................. $ 146,877
Net realized gain on securities and foreign currency transactions...................... 135,557
Net change in unrealized appreciation of investments, foreign currency contracts and
foreign currency translations........................................................ 340,608
-----------
Net increase in net assets resulting from operations................................... 623,042
-----------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................................................................. (136,578)
Net realized gains on investments...................................................... (94,755)
-----------
Total dividends and distributions to shareholders...................................... (231,333)
-----------

TRANSACTIONS IN SHARES OF COMMON STOCK:
Net proceeds from sale of shares....................................................... 30,851,057
Net asset value of shares issued to shareholders in reinvestment of dividends and
distributions........................................................................ 229,580
Cost of shares redeemed................................................................ (4,873,617)
-----------
Net increase in net assets from transactions in shares of common stock................. 26,207,020
-----------

NET INCREASE IN NET ASSETS............................................................. 26,598,729

NET ASSETS:
Beginning of period.................................................................... 25,000
-----------
End of period (including undistributed net investment income of $18,022)............... $26,623,729
-----------
-----------
</TABLE>

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

<PAGE>
<PAGE>
UBS International Equity Fund
Financial Highlights
For the period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING FOR THE PERIOD

<S> <C>
Net asset value, beginning of period.......................................... $100.00
-------
Income from Investment Operations:
Net investment income.................................................... 1.08
Net realized and unrealized gain on investments, foreign currency
contracts and foreign currency translations............................ 3.54
-------
Total income from investment operations.................................. 4.62
-------

Less Dividends and Distributions to Shareholders:
Dividends from net investment income..................................... (1.05)
Distributions from net realized gains.................................... (0.73)
-------
Total dividends and distributions........................................ (1.78)
-------
Net asset value, end of period................................................ $102.84
-------
-------
Total Return.................................................................. 4.65%(1)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted)................................. $26,624
Ratio of expenses to average net assets(2)............................... 1.39%(3)
Ratio of net investment income to average net assets(2).................. 1.78%(3)
</TABLE>

- ------------------------
(1) Not annualized.
(2) Includes the Fund's share of UBS Investor Portfolio Trust -- UBS
International Equity Portfolio expenses and net of fee waivers and expense
reimbursements. Such fee waivers 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 1.66% (annualized).
(3) Annualized.

See notes to financial statements.

UBS International Equity Fund
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------

1. GENERAL
UBS 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 December 31, 1996, the
Company included two other funds, UBS Bond Fund and UBS U.S. Equity Fund. These
financial statements relate only to the Fund.

The Fund had no operations prior to April 2, 1996 other than the sale to
Signature Financial Group, Inc. of 250 shares of common stock for $25,000.

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.

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.

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
(64.0% at December 31, 1996). 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.

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.

<PAGE>
<PAGE>
UBS International Equity Fund
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------
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. For
the fiscal year ended December 31, 1996, the Fund increased accumulated
undistributed net investment income by $7,723, decreased accumulated
undistributed net realized gains by $2,984 and decreased paid-in capital by
$4,739. Net investment income, net realized gains and net assets were not
affected by this change.

3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
A. ADMINISTRATIVE SERVICES AGREEMENT -- Under the terms of an Administrative
Services Agreement with the Company, Signature provides overall administrative
services and general office facilities. As compensation for such services, the
Company has agreed to pay Signature a fee, accrued daily and payable monthly, at
an annual rate of 0.05% of the Fund's first $100 million average daily net
assets and 0.025% of the next $100 million average daily net assets. Signature
does not receive a fee on average daily net assets in excess of $200 million.
For the period April 2, 1996 (commencement of operations) through December 31,
1996, the administrative services fee amounted to $4,131.

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

E. 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 2, 1996 (commencement
of operations) through December 26, 1996, the Fund's total operating expenses
were limited to an annual rate of 1.40%. Effective December 27, 1996, this
expense limitation was reduced to an annual rate of 0.95% of the Fund's average
daily net assets. For the period April 2, 1996 (commencement of operations)
through December 31, 1996, UBS reimbursed the Fund for expenses totaling $52,899
in connection with this voluntary limitation. The Adviser may modify or
discontinue this voluntary expense limitation at any time with 30 days' advance
notice to the Fund.

<PAGE>
<PAGE>
UBS International Equity Fund
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Shares subscribed........................................... 304,954
Shares issued to shareholders in reinvestment
of dividends and distributions............................ 2,281
Shares redeemed............................................. (48,608)
-------
Net increase in shares outstanding.......................... 258,627
-------
-------
</TABLE>

UBS International Equity Fund
Report of Independent Accountants
- --------------------------------------------------------------------------------

To the Board of Directors
and Shareholders of
UBS PRIVATE INVESTOR FUNDS, INC.

In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
the UBS International Equity Fund (the 'Fund') (one of the funds constituting
UBS Private Investor Funds, Inc.) at December 31, 1996, and the results of its
operations, the changes in its net assets and the financial highlights for the
period April 2, 1996 (commencement of operations) through December 31, 1996, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as 'financial
statements') are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audit. We
conducted our audit of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for the opinion expressed above.

PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, NY
February 21, 1997

UBS International Equity Portfolio
Schedule of Investments
December 31, 1996
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- ----------- -------------------------------------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK -- 83.1%
AUSTRALIA -- 6.2%
32,000 Australia & New Zealand Bank Group (Banking & Finance)................................ $ 201,701
15,800 Australian National Industries (Metals & Mining)...................................... 15,698
249,171 Burns Philp & Co. (Food).............................................................. 443,640
62,500 Coles Myer Ltd. (Retail).............................................................. 257,333
159,400 Fosters Brewing Group (Beverages)..................................................... 323,083
189,100 Goodman Fielder Limited (Food)........................................................ 234,478
565,638 MIM Holdings (Metals & Mining)........................................................ 791,291
89,000 Pacific Dunlop Ltd. (Diversified)..................................................... 226,373
50,000 Pasminco Limited (Metals & Mining).................................................... 78,690
-----------
2,572,287
-----------
DENMARK -- 1.7%
2,700 BG Bank A/S (Banking & Finance)....................................................... 126,541
10,500 Tele Danmark -- B shares (Telecommunications)......................................... 579,470
-----------
706,011
-----------
FRANCE -- 14.2%
8,800 Alcatel Alsthom SA (Electrical & Electronics)......................................... 708,009
3,060 AXA Company (Banking & Finance)....................................................... 194,923
5,358 Banque Nationale de Paris (Banking & Finance)......................................... 207,680
4,500 Casino-Guichard-PE (Etabl Econ) (Food)................................................ 209,864
4,200 Compagnie Financiere de Suez (Banking & Finance)...................................... 178,848
6,130 Groupe Danone (Food).................................................................. 855,514
22,600 Moulinex (Household Appliances)*...................................................... 521,320
5,100 Pechiney SA -- A Shares (Metals & Mining)............................................. 214,022
4,300 Pernod-Ricard SA (Beverages).......................................................... 238,220
2,050 Peugeot SA (Automotive)............................................................... 231,097
1,460 Sefimeg (Societe Francaise d'Investissements Immobiliers et de Gestion) (Real
Estate)............................................................................. 105,967
10,000 Societe Nationale Elf-Aquitaine (Energy Sources)...................................... 911,688
18,300 Thomson CSF (Defense Electronics)..................................................... 594,516
9,070 Total Cie Francaise des Petroles -- B shares (Energy Sources)......................... 738,836
-----------
5,910,504
-----------
GERMANY -- 8.1%
26,000 Bayer AG (Chemicals).................................................................. 1,061,294
13,500 Deutsche Bank AG (Banking & Finance).................................................. 630,907
770 Schmalbach-Lubeca AG (Packaging)*..................................................... 189,184
11,500 Veba AG (Diversified)................................................................. 665,258
2,000 Volkswagen AG (Automotive)............................................................ 831,979
-----------
3,378,622
-----------
GREAT BRITAIN -- 13.9%
86,320 Allied Domecq PLC (Food & Beverages).................................................. 675,630
81,900 B.A.T. Industries (Tobacco)........................................................... 680,310
115,700 BTR Limited (Diversified)............................................................. 562,773
15,840 Bass PLC (Beverages).................................................................. 222,731
247,200 British Gas Corp. (Energy Sources).................................................... 952,604
16,800 British Petroleum Co. PLC (Energy Sources)............................................ 201,557
53,000 MEPC British Registered (Real Estate)................................................. 393,955
178,000 Marley PLC (Building Materials)....................................................... 385,649
123,550 Northern Foods PLC (Food)............................................................. 427,440
43,950 Peninsular & Orient Steam (Transportation)............................................ 444,112
17,700 South West Water PLC (Utilities)...................................................... 182,798
209,750 Tarmac PLC (Building Materials)....................................................... 352,054
30,040 Thames Water PLC (Utilities).......................................................... 316,415
-----------
5,798,028
-----------
</TABLE>

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

<PAGE>
<PAGE>
UBS International Equity Portfolio
Schedule of Investments
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- ----------- -------------------------------------------------------------------------------------- -----------
<C> <S> <C>
HONG KONG -- 0.3%
548,000 Yizheng Chemical Fibre Co. (Chemicals)................................................ $ 133,201
-----------
INDONESIA -- 0.3%
47,000 PT Astra International (Automotive)................................................... 129,340
-----------
JAPAN -- 21.1%
11,000 Dai Nippon Printing Co. (Printing).................................................... 192,816
13,000 Fuji Photo Film Co. (Photographic Equipment & Supplies)............................... 428,806
80,000 Hitachi Ltd. (Hit. Seisakusho) (Electrical & Electronics)............................. 746,050
96,000 Ishikawajima Harima Heavy Industries (Machinery)...................................... 426,906
20,000 JGC Engineering & Construction Corp. (Engineering).................................... 150,073
68 Japan Tobacco Inc. (Tobacco).......................................................... 460,927
41,000 Japan Wool Textile Co. (Apparel & Textiles)........................................... 338,451
49,000 Kansai Paint Co. (Chemicals).......................................................... 220,016
14,000 Kao Corp. (Household Products)........................................................ 163,198
33,000 Koito Manufacturing Co., Ltd. (Automotive -- Parts & Equipment)....................... 220,836
36,000 Marudai Food Co., Ltd. (Food)......................................................... 192,419
22,000 Matsushita Electric Industries (Electrical & Electronics)............................. 359,036
105,000 Mitsubishi Chemical Corp. (Chemicals)*................................................ 339,997
38,000 Mitsubishi Estate Co. (Real Estate)................................................... 390,467
27,000 Mitsubishi Heavy Industries (Aerospace/Defense Equipment)............................. 214,489
38,000 Nihon Cement Co. (Building Materials)................................................. 193,921
77,000 Nippon Yusen Kabushiki Kaish (Shipping)............................................... 348,398
36,000 Nissan Fire & Marine Insurance (Insurance)............................................ 198,947
47,000 Nisshinbo Industries Inc. (Apparel & Textiles)........................................ 366,065
3,900 Sony Corp. (Electrical & Electronics)................................................. 255,600
53,000 Sumitomo Marine & Fire (Insurance).................................................... 329,505
1,000 Takashimaya Co. (Retail).............................................................. 12,002
69,000 Toray Industries Inc. (Chemicals)..................................................... 425,999
13,000 Uny Co. (Retail)...................................................................... 237,976
115 West Japan Railway (Transportation)................................................... 372,377
35,000 Yamaha Motor Co. (Automotive)......................................................... 314,308
42,000 Yamanouchi Pharmaceutical (Pharmaceuticals)........................................... 863,138
-----------
8,762,723
-----------
NETHERLANDS -- 2.3%
12,400 Internationale Nederlanden Groep NV (Banking & Finance)............................... 446,730
14,500 Koninklijke Papierfabrieken BT NV (Paper & Forest Product)............................ 316,623
5,040 Royal PTT Nederland (Telecommunications).............................................. 192,375
-----------
955,728
-----------
NEW ZEALAND -- 0.8%
10,300 Ceramco Corp. Ltd. (Diversified)...................................................... 9,830
116,000 Fletcher Challenge Paper Shares (Paper & Forest Products)............................. 238,638
39,200 Fletcher Challenge Forestry Shares (Forest Products).................................. 65,679
-----------
314,147
-----------
NORWAY -- 0.5%
8,100 Bergesen D.Y. ASA (Transportation).................................................... 196,117
-----------
SINGAPORE -- 1.9%
280,579 Dairy Farm International Holdings (Food).............................................. 225,866
121,898 Hong Kong Land Holdings (Real Estate)................................................. 338,876
34,965 Jardine Matheson Holdings (Diversified)............................................... 230,769
-----------
795,511
-----------
</TABLE>

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

TOTAL COMMON STOCK (COST $34,119,162)................................................. 34,507,979
-----------

CONVERTIBLE PREFERRED STOCK -- 0.6%
JAPAN -- 0.6%
30,000,000 Sakura Finance, Series II, 0.75%, due 10/01/01** (Banking & Finance)
(Cost $282,056)..................................................................... 267,140
-----------

CONTINGENT VALUE RIGHTS -- 0.0%
FRANCE -- 0.0%
3,060 AXA Company (Banking & Finance) (Cost $0)***.......................................... 0
-----------
TOTAL INVESTMENTS AT MARKET VALUE -- 83.7%
(COST $34,401,218)............................................................................... 34,775,119
OTHER ASSETS IN EXCESS OF LIABILITIES -- 16.3%..................................................... 6,771,460
-----------
NET ASSETS -- 100.0%............................................................................... $41,546,579
-----------
-----------
</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 December 31, 1996, the value
of this security amounted to $267,140 or 0.6% of net assets.
*** This security did not commence trading until January 14, 1997. At December
31, 1996 there was no market for this security.
Note: Based on the cost of investments of $34,401,218 for Federal Income Tax
purposes at December 31, 1996, the aggregate gross unrealized appreciation
and depreciation was $1,866,903 and $1,493,002, respectively, resulting in
net unrealized appreciation of $373,901.

See notes to financial statements.

UBS International Equity Portfolio
Schedule of Investments
December 31, 1996
- --------------------------------------------------------------------------------

SUMMARY OF INDUSTRY DIVERSIFICATION

<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY DIVERSIFICATION (UNAUDITED) NET ASSETS
- ----------------------------------------------------------------------------------------------------- -----------

<S> <C>
Energy Sources....................................................................................... 6.8%
Food................................................................................................. 6.2%
Banking & Finance.................................................................................... 5.4%
Chemicals............................................................................................ 5.2%
Electrical & Electronics............................................................................. 5.0%
Food & Beverages..................................................................................... 4.5%
Pharmaceuticals...................................................................................... 4.1%
Diversified.......................................................................................... 4.1%
Automotive........................................................................................... 4.0%
Building Materials................................................................................... 3.7%
Real Estate.......................................................................................... 3.0%
Paper & Forest Products.............................................................................. 2.9%
Household Appliances................................................................................. 2.8%
Tobacco.............................................................................................. 2.7%
Metals & Mining...................................................................................... 2.6%
Transportation....................................................................................... 2.4%
Insurance............................................................................................ 2.1%
Beverages............................................................................................ 1.9%
Telecommunications................................................................................... 1.9%
Apparel & Textiles................................................................................... 1.7%
Defense Electronics.................................................................................. 1.4%
Retail............................................................................................... 1.2%
Utilities............................................................................................ 1.2%
Photographic Equipment & Supplies.................................................................... 1.0%
Machinery............................................................................................ 1.0%
Shipping............................................................................................. 0.8%
Manufacturing........................................................................................ 0.7%
Automotive -- Parts & Equipment...................................................................... 0.5%
Aerospace / Defense Equipment........................................................................ 0.5%
Packaging............................................................................................ 0.5%
Printing............................................................................................. 0.5%
Household Products................................................................................... 0.4%
Engineering.......................................................................................... 0.4%
Technology........................................................................................... 0.4%
Forest Products...................................................................................... 0.2%
-----------
Total Portfolio Holdings............................................................................. 83.7%
Other assets in excess of liabilities................................................................ 16.3%
-----------
Total Net Assets..................................................................................... 100.0%
-----------
-----------
</TABLE>

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

<PAGE>
<PAGE>
UBS International Equity Portfolio
Schedule of Investments
December 31, 1996
- --------------------------------------------------------------------------------

SUMMARY OF OPEN FORWARD FOREIGN CURRENCY CONTRACTS

<S> <C> <C> <C> <C>
PURCHASE CONTRACTS
Australian Dollar, 1/07/97......................... 562,647 $ 448,711 $ 447,175 ($ 1,536)
Australian Dollar, 1/08/97......................... 111,016 88,480 88,231 (249)
Swiss Franc, 1/06/97............................... 1,219,183 903,098 911,436 8,338
German Deutsche Mark, 1/06/97...................... 1,692,482 1,088,973 1,100,531 11,558
Danish Krone, 1/06/97.............................. 1,399,769 235,810 237,770 1,960
Spanish Peseta, 1/09/97............................ 15,642,120 119,615 120,457 842
French Franc, 1/31/97.............................. 9,045,738 1,728,711 1,749,415 20,704
British Pound, 1/07/97............................. 866,020 1,468,935 1,483,015 14,080
Hong Kong Dollar, 1/03/97.......................... 275,087 35,564 35,567 3
Japanese Yen, 1/08/97.............................. 362,927,155 3,129,155 3,137,482 8,327
Dutch Guilder, 1/06/97............................. 534,289 306,587 309,590 3,003
Norwegian Krone, 1/06/97........................... 419,630 65,252 65,148 (104)
New Zealand Dollar, 1/08/97........................ 89,738 63,534 63,407 (127)
Swedish Krona, 1/07/97............................. 3,675,096 534,249 539,855 5,606
Thai Baht, 1/06/97................................. 938,788 36,628 36,606 (22)

SALE CONTRACTS
Japanese Yen, 1/07/97.............................. 60,000 517 519 (2)
--------------
$ 72,381
--------------
--------------
</TABLE>

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

UBS International Equity Portfolio
Statement of Assets and Liabilities
December 31, 1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $34,401,218).......................................... $34,775,119
Cash.............................................................................. 17,165,268
Foreign currency (cost $1,237).................................................... 1,247
Dividends receivable.............................................................. 73,763
Interest receivable............................................................... 25,636
Unrealized appreciation on open forward foreign currency contracts................ 72,381
Deferred organization expenses and other assets................................... 44,063
-----------
Total Assets................................................................. 52,157,477
-----------

LIABILITIES:
Advisory fees payable............................................................. 13,839
Administrative services fees payable.............................................. 1,151
Trustees' fees payable............................................................ 582
Payable for investment securities purchased....................................... 10,476,488
Organization expenses payable..................................................... 32,933
Other accrued expenses............................................................ 85,905
-----------
Total Liabilities............................................................ 10,610,898
-----------

NET ASSETS........................................................................ $41,546,579
-----------
-----------

COMPOSITION OF NET ASSETS:
Paid-in capital for beneficial interests.......................................... $41,546,579
-----------
-----------
</TABLE>

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

<PAGE>
<PAGE>
UBS International Equity Portfolio
Statement of Operations
For the Period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax of $141,935).................... $500,868
Interest.................................................................. 189,623
--------
Investment income.................................................... $ 690,491

EXPENSES:
Investment advisory fees.................................................. 199,112
Administrative services fees.............................................. 11,712
Custodian fees and expenses............................................... 60,563
Audit fees................................................................ 39,357
Fund accounting fees...................................................... 35,843
Legal fees................................................................ 18,766
Amortization of organization expenses..................................... 7,508
Trustees' fees............................................................ 7,508
Insurance expense......................................................... 4,053
Miscellaneous expenses.................................................... 7,508
--------
Total expenses....................................................... 391,930
Less: Fee waiver..................................................... (185,273)
--------
Net expenses......................................................... 206,657
----------
Net investment income..................................................... 483,834
----------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on securities transactions.............................. 361,151
Net realized gain on foreign currency transactions........................ 11,064
Net change in unrealized appreciation of investments...................... 373,901
Net change in unrealized depreciation of foreign currency contracts and
translations............................................................ (6,329)
----------
Net realized and unrealized gain on investments........................... 739,787
----------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................... $1,223,621
----------
----------
</TABLE>

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

<PAGE>
<PAGE>
UBS International Equity Portfolio
Statement of Changes in Net Assets
For the Period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income................................................................ $ 483,834
Net realized gain on securities and foreign currency transactions.................... 372,215
Net change in unrealized appreciation of investments, foreign currency contracts and
foreign currency translations...................................................... 367,572
-----------
Net increase in net assets resulting from operations................................. 1,223,621
-----------

CAPITAL TRANSACTIONS:
Proceeds from contributions.......................................................... 60,373,286
Value of withdrawals................................................................. (20,050,328)
-----------
Net increase in net assets from capital transactions................................. 40,322,958
-----------

NET INCREASE IN NET ASSETS........................................................... 41,546,579

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

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

<PAGE>
<PAGE>
UBS International Equity Portfolio
Financial Highlights
For the Period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000's omitted)...................................... $41,547
Average commission rate per share(1)........................................... $ 0.02
Ratio of expenses to average net assets(2)..................................... 0.88%(3)
Ratio of net investment income to average net assets(2)........................ 2.07%(3)
Portfolio turnover............................................................. 42%
</TABLE>

- ------------------------
(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 0.79% (annualized).
(3) Annualized.

See notes to financial statements.

UBS International Equity Portfolio
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------

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. Signature Financial Group (Grand Cayman), Ltd.
('SFG'), a wholly-owned subsidiary of Signature Financial Group, Inc., acts as
the Portfolio's administrator and placement agent.

A. INVESTMENT VALUATION -- Equity securities in the portfolio 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.

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.

The assets and liabilities are presented at the exchange rates and market values
at the close of the year. 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 year end are not separately presented. However, gains
and losses from certain foreign currency transactions are treated as ordinary
income for U.S. Federal income tax purposes.

<PAGE>
<PAGE>
UBS International Equity Portfolio
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------

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.

G. OTHER -- The Portfolio bears all costs of its operations other than expenses
specifically assumed by UBS and SFG. 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 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 period April 2, 1996 (commencement
of operations) through December 31, 1996, the

<PAGE>
<PAGE>
UBS International Equity Portfolio
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------
investment advisory fee amounted to $199,112. UBS voluntarily agreed to waive
$185,273 of this amount.

B. ADMINISTRATIVE SERVICES AGREEMENT -- Under the terms of an Administrative
Services Agreement with the Trust, SFG 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 SFG an administrative
services fee, accrued daily and payable monthly, at an annual rate of 0.05% of
the Portfolio's average daily net assets. For the period April 2, 1996
(commencement of operations) through December 31, 1996, the administrative
services fee amounted to $11,712.

UBS International Equity Portfolio
Report of Independent Accountants
- --------------------------------------------------------------------------------

To the Board of Trustees
and Investors of
UBS INVESTOR PORTFOLIOS TRUST

In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the UBS International Equity
Portfolio (the 'Portfolio') (one of the portfolios constituting the UBS Investor
Portfolios Trust) at December 31, 1996, and the results of its operations, the
changes in its net assets and the financial highlights for the period April 2,
1996 (commencement of operations) through December 31, 1996, in conformity with
generally accepted accounting principles in the United States. These financial
statements and financial highlights (hereafter referred to as 'financial
statements') are the responsibility of the Portfolio's management; our
responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit of these financial statements in accordance
with generally accepted auditing standards in the United States which require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audit, which included confirmation
of securities at December 31, 1996 by correspondence with the custodian and
brokers, and the application of alternative auditing procedures where
confirmations from brokers were not received provides a reasonable basis for the
opinion expressed above.

PRICE WATERHOUSE
Chartered Accountants
Toronto, Ontario
February 21, 1997

UBS International Equity Fund
6 St. James Avenue
Boston, Massachusetts 02116

Investment Adviser Union Bank of Switzerland,
New York Branch
1345 Avenue of the Americas
New York, NY 10105

Administrator and Distributor Signature Broker-Dealer Services, Inc.
6 St. James Avenue
Boston, Massachusetts 02116

Custodian and Transfer Agent Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02111

UBS
U.S. Equity
Fund

________

UBS
Private Investor
Funds, Inc.

Annual Report
December 31, 1996

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

Dear Shareholder,

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

The UBS Private Investor Funds bring you:

The expertise of The Private Bank's professional money managers

Global investment perspective and knowledge

A high priority on financial stability and preservation of wealth

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

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

Dear Shareholder:

1996 IN REVIEW

Investors began 1996 with modest expectations for the equity markets after an
unexpectedly strong 1995. But after 12 months, periodic worries over Fed
tightening, a presidential election, volatility galore and significant rotation
among groups -- the S&P 500 posted a 22.96% return and the Dow Jones Industrial
Average 28.70%. Far from modest.

For the second year in a row it paid to be invested in the high technology and
financial sectors -- two of the best performing groups in the S&P 500. But it
was a year that may be noted more for the narrowness of the strength than for
anything else. Analysis of the S&P's return shows that 2% of the stocks in the
index accounted for 25% of the index's overall performance; most other stocks in
the index posted significantly lower returns.

Another notable occurrence for the market in 1996 was the growth in dividends.
Dividend increases in the Dow Jones Industrial Average (DJIA) were 12.5%.
Despite that hefty increase in dividends the yield dropped to 2.03% -- an all
time low due to the strong performance of the DJIA. It should also be noted that
dividend growth for the S&P 500 kept pace with earnings, perhaps signaling that
the low S&P 500 payout ratio may have leveled off.

Investors rarely pay attention to something as mundane as dividends when their
capital change in stocks is as high as it has been in recent years. However,
when the market slows down we expect to see investors turn to strong companies
that provide a stable portion of the total return up front via the dividend. It
is also important to note that if managements are increasing the dividend in
line with earnings, they probably believe that these earnings levels are
sustainable.

Finally, we reported to you at the end of the third quarter about our
performance to date which was lagging the S&P 500 by a significant amount. We
explained that this is not uncommon for value investing (and our experience in
particular) and shared with you the rewards which we expect will come from
sticking with our discipline during difficult short term periods of
underperformance. We remain committed to our approach and began to see some
recovery during the fourth quarter when we approximated a very strong market
performance.

It is a volatile and uncertain time in the markets, but we still find promising
opportunities. As measured by our Relative Dividend Yield methodology, the
number of undervalued securities in the S&P 500 actually increased during the
fourth quarter to 138 (from 120 at the end of the third quarter of 1996) despite
very strong returns.

High quality, stable growing companies characterize the opportunities being
presented to value investors and we continue to take advantage by purchasing
those stocks that are attractive on a Relative Dividend Yield (RDY) basis -- but
most importantly meet our fundamental tests from a research standpoint. As we
have stated before, one of the biggest challenges to value investors is to avoid
the purchase of terminally cheap stocks. RDY identifies the 'cheap' part of the
equation and research tackles the 'terminal' issue. In 1996 some of the best
work we did was eliminating 'terminally cheap' holdings. Deluxe Checks,
Tambrands and Northeast Utilities were removed since they no longer met our
qualifications as outlined in the 12 Fundamental Factors. In each case the
stocks subsequently deteriorated from the levels at which we sold them.

<PAGE>
<PAGE>
UBS Private Investor Funds, Inc.
Fund Commentary
- --------------------------------------------------------------------------------

FUND PERFORMANCE

For the quarter ending December 31, 1996, the UBS U.S. Equity Fund returned
7.83%, slightly trailing the S&P 500's very strong performance of 8.34%. For the
period from April 2, 1996 (commencement of operations) through December 31, 1996
(the Fund's initial operating period), however, the Fund returned 8.74% lagging
the S&P 500 which returned 15.27%.

GROWTH OF A $10,000 INVESTMENT
(HYPOTHETICAL -- PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RESULTS.)

This chart provides a comparison of the Fund's performance to that of the S&P
500 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 2, 1996 and held through December 31, 1996.

[PERFORMANCE GRAPH]

UBS S & P
US EQUITY 500
FUND INDEX
--------- -----
4/2/96 10000 10000
9813 10024
5/31/96 9957 10281
9971 10320
7/31/96 9609 9864
9651 10072
9/30/96 10084 10639
10273 10933
11/30/96 10962 11759
10874 11527

During the year, the ten largest holdings outperformed the total portfolio. We
are pleased that the quality of our research and portfolio construction has been
correct but believe that we should continue to be more aggressive in holding
these high quality securities.

<TABLE>
<CAPTION>
% OF TOTAL
PORTFOLIO RETURN
--------- ------

<S> <C> <C>
Bristol-Myers Squibb Co....................................................................... 3.6 2.34
General Mills Co.............................................................................. 4.6 1.25
Philip Morris Companies, Inc.................................................................. 4.6 3.22
Weyerhaeuser Co............................................................................... 4.7 0.63
Minnesota Mining & Manufacturing.............................................................. 3.9 2.52
Mellon Bank Corp.............................................................................. 4.0 2.77
J.C. Penney Company, Inc...................................................................... 4.2 -0.04
J.P. Morgan & Co. Inc. ....................................................................... 4.0 1.72
Bell Atlantic Corp............................................................................ 4.0 0.57
GTE Corporation............................................................................... 4.1 0.42
--------- ------
41.7 15.4
</TABLE>

<PAGE>
<PAGE>
UBS Private Investor Funds, Inc.
Fund Commentary
- --------------------------------------------------------------------------------

We are continuing to move toward greater holdings in these stocks approaching
our maximum of 5% in any individual stock.

Well, if the ten largest holdings did so well, why did the portfolio on the
whole underperform the ten largest holdings and the market?

INDUSTRY WEIGHTINGS AND THEIR PORTFOLIO IMPACT

One of the greatest negative contributors to our 1996 performance were the
Regional Bell Operating companies (RBOCs) and GTE. In 1995 the telephones
provided strong excess return relative to the market. During 1996, the Fund
accumulated positions in these companies that were overweighted to the market.
Until the fourth quarter this proved to be a major drag on results as the
investment community tended to overlook solid and improving telephone company
fundamentals, instead focusing on regulatory and legislative uncertainties which
were perceived as major negatives.

During the fourth quarter, the industry had a regulatory victory when a St.
Louis court stayed the FCC interpretation of the 1996 Telecommunications Act
that was creating so much of the confusion. At that time Wall Street began to
awaken to the fact that these companies were capable of producing double digit
earnings increases and share prices rebounded slightly.

Nevertheless, the group underperformed the market by approximately 12% for the
Fund's initial operating period. We used the weakness to add to holdings as we
are convinced that the 1996 Telecommunications Act is good for the RBOCs and
GTE, as dividend growth and double digit earnings growth are reported and as the
valuations -- by any measure -- reach levels that cannot be overlooked.

On the positive side, bank, pharmaceutical and oil stocks performed well during
the period. Within these categories, Fund holdings such as Mellon Bank, J.P.
Morgan, American Home Products, Bristol-Myers, Chevron and Texaco all fared well
and contributed to the Fund's positive total return.

INDIVIDUAL STOCK WEIGHTINGS AND THEIR IMPACT

We also saw very strong performance from two of our ten largest holdings, Philip
Morris and Minnesota Mining & Manufacturing. Both of these stocks outperformed
the market turning in 29% and 27% respectively. Negative contributors were
Reader's Digest and H&R Block which significantly underperformed the market and,
although relatively small holdings, managed to impact the total return of our
Fund by approximately 1%. Our research did influence the weightings resulting in
owning small positions in these stocks, but certainly the question to ask now is
should we own them at all.

Lastly, we would like to remind you of another factor that can from time to time
have a periodic negative impact on the performance of a disciplined value
approach (and did in 1996). That is the cost of building positions in companies
and industries which represent longer term opportunities but which are presently
out of favor. Since it is not possible to consistently determine the exact point
at which investors will decide that a company has shifted from unattractive to
undervalued, it is necessary to accumulate holdings over time and be patient.
This can hurt results in the short term as we wait for perceptions to catch up
to fundamentals; however, the longer term rewards make this exercise worthwhile.

Examples in the portfolio include food stocks (which began to pay off in the
fourth quarter) and the forest products group which we began accumulating early
in 1996. We would expect to continue accumulating the forest product stocks over
the next six to twelve months.

<PAGE>
<PAGE>
UBS Private Investor Funds, Inc.
Fund Commentary
- --------------------------------------------------------------------------------

Our investment technique has typically resulted in an average holding period of
3-5 years. We currently anticipate building holdings over 2-3 years while stocks
underperform. Experience has shown that doing what is right for the portfolio
for the long term can sometimes be a little painful in the short term. Having a
disciplined approach to both buying and selling stocks combined with a focused
research process ensures that we will continue to take advantage of these
anomalies in the marketplace.

Nancy Tengler
Portfolio Manager

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

Shares of the Fund are distributed by Signature Broker-Dealer Services, 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
U.S. Equity Portfolio (the 'Portfolio') which is a separate fund with an
identical investment objective.

Union Bank of Switzerland is voluntarily waiving all shareholder servicing fees
for the Fund and reimbursing a portion of the Fund's expenses. Union Bank of
Switzerland is also waiving all 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 S&P 500 Index is an unmanaged index broadly representative of the U.S. stock
market.

UBS U.S. Equity Fund
Statement of Assets and Liabilities
December 31, 1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investment in UBS Investor Portfolios Trust -- UBS U.S. Equity Portfolio, at value... $9,486,697
Receivable from Adviser.............................................................. 6,340
Deferred organization expenses and other assets...................................... 63,344
----------
Total Assets............................................................... 9,556,381
----------
LIABILITIES:
Administrative services fees payable................................................. 341
Directors' fees payable.............................................................. 1,688
Organization expenses payable........................................................ 32,538
Other accrued expenses............................................................... 56,118
----------
Total Liabilities.......................................................... 90,685
----------
NET ASSETS........................................................................... $9,465,696
----------
----------

SHARES OUTSTANDING ($0.001 par value, 10 million shares authorized).................. 88,712
----------
----------

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE....................... $106.70
----------
----------
COMPOSITION OF NET ASSETS:
Shares of common stock, at par....................................................... $ 89
Additional paid-in capital........................................................... 8,765,869
Net unrealized appreciation of investments........................................... 684,896
Accumulated undistributed net investment income...................................... 1,157
Accumulated undistributed net realized gains on investments.......................... 13,685
----------
Net Assets................................................................. $9,465,696
----------
----------
</TABLE>

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

<PAGE>
<PAGE>
UBS U.S. Equity Fund
Statement of Operations
For the Period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Investment Income and Expenses from UBS Investor Portfolios Trust -- UBS
U.S. Equity Portfolio
Dividends.......................................................... $191,173
Interest........................................................... 13,296
--------
Investment income.................................................. 204,469
Total expenses..................................................... $ 77,806
Less: Fee waiver................................................... (31,133)
---------
Net expenses....................................................... 46,673
--------
Net Investment Income from UBS Investor Portfolios Trust -- UBS U.S.
Equity Portfolio...................................................... 157,796
EXPENSES
Shareholder service fees................................................ 12,965
Administrative services fees............................................ 2,593
Reports to shareholders expense......................................... 22,333
Transfer agent fees..................................................... 15,763
Audit fees.............................................................. 11,259
Amortization of organization expenses................................... 10,886
Fund accounting fees.................................................... 8,006
Legal fees.............................................................. 7,508
Directors' fees......................................................... 6,006
Registration fees....................................................... 4,939
Miscellaneous expenses.................................................. 4,218
---------
Total expenses..................................................... 106,476
Less: Fee waiver and expense reimbursements........................ (106,476)
---------
Net expenses....................................................... --
--------
Net investment income................................................... 157,796
--------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS FROM UBS INVESTOR
PORTFOLIOS TRUST -- UBS U.S. EQUITY PORTFOLIO
Net realized gain on securities transactions............................ 13,685
Net change in unrealized appreciation of investments.................... 684,896
--------
Net realized and unrealized gain on investments from UBS Investor
Portfolios Trust -- UBS U.S. Equity Portfolio......................... 698,581
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................... $856,377
--------
--------
</TABLE>

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

<PAGE>
<PAGE>
UBS U.S. Equity Fund
Statement of Changes in Net Assets
For the Period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income.................................................................. $ 157,796
Net realized gain on securities transactions........................................... 13,685
Net change in unrealized appreciation of investments................................... 684,896
-----------
Net increase in net assets resulting from operations................................... 856,377
-----------

DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income.................................................................. (156,639)
-----------

TRANSACTIONS IN SHARES OF COMMON STOCK:
Net proceeds from sale of shares....................................................... 13,752,890
Net asset value of shares issued to shareholders in reinvestment of dividends.......... 156,639
Cost of shares redeemed................................................................ (5,168,571)
-----------
Net increase in net assets from transactions in shares of common stock................. 8,740,958
-----------

NET INCREASE IN NET ASSETS............................................................. 9,440,696

NET ASSETS:
Beginning of period.................................................................... 25,000
-----------
End of period (including undistributed net investment income of $1,157)................ $ 9,465,696
-----------
-----------
</TABLE>

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

<PAGE>
<PAGE>
UBS U.S. Equity Fund
Financial Highlights
For the Period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<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..................................................... 2.05
Net realized and unrealized gain on investments........................... 6.69
-------
Total income from investment operations................................... 8.74
-------

Less dividends to shareholders:
Dividends from net investment income...................................... (2.04)
-------

Net asset value, end of period................................................. $106.70
-------
-------
Total return................................................................... 8.74%(1)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted)................................. $ 9,466
Ratio of expenses to average net assets(2)................................ 0.90%(3)
Ratio of net investment income to average net assets(2)................... 3.04%(3)
</TABLE>

- ------------------------
(1) Not annualized.
(2) Includes the Fund's share of UBS Investor Portfolio Trust -- UBS U.S. Equity
Portfolio expenses and net of fee waivers and expense reimbursements. Such
fee waivers 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 2.65% (annualized).
(3) Annualized.

See notes to financial statements.

UBS U.S. Equity Fund
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------

1. GENERAL
UBS U.S. 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 December 31, 1996, the
Company included two other funds, UBS Bond Fund and UBS International Equity
Fund. These financial statements relate only to the Fund.

The Fund had no operations prior to April 2, 1996 other than the sale to
Signature Financial Group, Inc. of 250 shares of common stock for $25,000.

The Fund seeks to achieve its investment objective by investing substantially
all of its investable assets in the UBS U.S. 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.

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.

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
(37.3% at December 31, 1996). 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.

<PAGE>
<PAGE>
UBS U.S. Equity Fund
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------
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.

F. OTHER -- The Fund bears all cost of its operations other than expenses
specifically assumed by UBS and Signature. 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. ADMINISTRATIVE SERVICES AGREEMENT -- Under the terms of an Administrative
Services Agreement with the Company, Signature provides overall administrative
services and general office facilities. As compensation for such services, the
Company has agreed to pay Signature a fee, accrued daily and payable monthly, at
an annual rate of 0.05% of the Fund's first $100 million average daily net
assets and 0.025% of the next $100 million average daily net assets. Signature
does not receive a fee on average net assets in excess of $200 million. For the
period April 2, 1996 (commencement of operations) through December 31, 1996, the
administrative services fee amounted to $2,593.

E. 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, to an annual rate of 0.90% of the Fund's
average daily net assets. For the period April 2, 1996 (commencement of
operations) through December 31, 1996, UBS reimbursed the Fund for expenses
totaling $93,511 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.

<PAGE>
<PAGE>
UBS U.S. Equity Fund
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Shares subscribed................................. 137,339
Shares issued to shareholders in reinvestment of
dividends....................................... 1,465
Shares redeemed................................... (50,342)
-------
Net increase in shares outstanding................ 88,462
-------
-------
</TABLE>

<PAGE>
<PAGE>
UBS U.S. Equity Fund
Report of Independent Accountants
- --------------------------------------------------------------------------------

To the Board of Directors and
Shareholders of UBS Private Investor Funds, Inc.

In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
the UBS U.S. Equity Fund (the 'Fund') (one of the funds constituting the UBS
Private Investor Funds, Inc.) at December 31, 1996, and the results of its
operations, the changes in its net assets and the financial highlights for the
period April 2, 1996 (commencement of operations) through December 31, 1996, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as 'financial
statements') are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audit. We
conducted our audit of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for the opinion expressed above.

PRICE WATERHOUSE LLP

1177 Avenue of the Americas
New York, New York
February 21, 1997

UBS U.S. Equity Portfolio
Schedule of Investments
December 31, 1996
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- ------ ------------------------------------------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK -- 97.6%
BANKING & FINANCIAL INSTITUTIONS -- 14.4%
1,100 BankAmerica Corp........................................................................... $ 109,725
9,200 Corestates Financial Corp.................................................................. 477,250
13,100 Great Western Financial.................................................................... 379,900
10,050 J. P. Morgan & Co. Inc..................................................................... 981,131
14,000 Mellon Bank Corp........................................................................... 994,000
10,700 U.S. Bancorp............................................................................... 480,831
4,300 Wachovia Corp.............................................................................. 242,950
-----------
3,665,787
-----------
CHEMICALS -- 4.2%
5,690 Dow Chemical Company....................................................................... 445,954
20,800 Witco Corp................................................................................. 634,400
-----------
1,080,354
-----------
CONSUMER FOODS -- 7.4%
17,870 General Mills Co........................................................................... 1,132,511
21,075 H. J. Heinz Co............................................................................. 753,431
-----------
1,885,942
-----------
CONSUMER GOODS & SERVICES -- 4.8%
23,750 H&R Block Inc.............................................................................. 688,750
13,500 Readers Digest Association Inc............................................................. 543,375
-----------
1,232,125
-----------
COSMETICS -- 2.5%
14,010 International Flavors & Fragrances......................................................... 630,450
-----------
DRUGS & PHARMACEUTICALS -- 10.9%
12,960 American Home Products Corp................................................................ 759,780
8,500 Baxter International....................................................................... 348,500
8,300 Bristol-Myers Squibb Co.................................................................... 902,625
18,977 Pharmacia & Upjohn Inc..................................................................... 751,964
-----------
2,762,869
-----------
INSURANCE -- 5.4%
12,600 American General Corp...................................................................... 515,025
4,250 Marsh & McLennan Cos. Inc.................................................................. 442,000
10,700 Safeco Corp................................................................................ 421,981
-----------
1,379,006
-----------
LUMBER, PAPER & BUILDING SUPPLIES -- 7.6%
10,550 Potlatch Corp.............................................................................. 453,650
6,200 Union Camp Corp............................................................................ 296,050
24,800 Weyerhauser Co............................................................................. 1,174,900
-----------
1,924,600
-----------
MANUFACTURING -- 3.7%
11,510 Minnesota Mining & Manufacturing........................................................... 953,891
-----------
NATURAL GAS -- 0.8%
6,000 NICOR Inc.................................................................................. 214,500
-----------
</TABLE>

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

<PAGE>
<PAGE>
UBS U.S. Equity Portfolio
Schedule of Investments
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- ------ ------------------------------------------------------------------------------------------- -----------
<C> <S> <C>
OFFICE EQUIPMENT AND SUPPLIES -- 1.6%
7,250 Pitney Bowes, Inc.......................................................................... $ 395,125
-----------
PETROLEUM PRODUCTION & SALES -- 7.7%
4,700 Amoco Corporation.......................................................................... 378,350
5,650 Atlantic Richfield Co...................................................................... 748,625
7,800 Chevron Corporation........................................................................ 507,000
2,300 Exxon Corporation.......................................................................... 225,400
1,120 Texaco Inc................................................................................. 109,900
-----------
1,969,275
-----------
PRINTING & PUBLISHING -- 0.9%
9,200 Dun & Bradstreet Corporation............................................................... 218,500
-----------
RETAIL -- 4.1%
21,220 J. C. Penney Company, Inc.................................................................. 1,034,475
-----------
TELECOMMUNICATIONS -- 11.0%
15,200 Bell Atlantic Corp......................................................................... 984,200
22,350 GTE Corporation............................................................................ 1,016,925
4,700 SBC Communications......................................................................... 243,225
16,800 US West Inc................................................................................ 541,800
-----------
2,786,150
-----------
TOBACCO -- 8.0%
9,600 American Brands, Inc....................................................................... 476,400
10,150 Philip Morris Companies, Inc............................................................... 1,143,144
12,600 UST, Inc................................................................................... 407,925
-----------
2,027,469
-----------
UTILITIES -- 2.6%
10,750 Baltimore Gas and Electric................................................................. 287,563
5,860 Central & South West Corp.................................................................. 150,163
8,200 Wisconsin Energy Corp...................................................................... 220,375
-----------
658,101
-----------
TOTAL INVESTMENTS AT MARKET VALUE -- 97.6%
(COST $23,144,284)................................................................................ 24,818,619
OTHER ASSETS IN EXCESS OF LIABILITIES -- 2.4%....................................................... 607,114
-----------
NET ASSETS -- 100.0%................................................................................ $25,425,733
-----------
-----------
</TABLE>

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

Note: Based upon the cost of investments of $23,146,237 for Federal Income Tax
purposes at December 31, 1996, the aggregate gross unrealized appreciation
and depreciation was $2,047,624 and $375,242, respectively, resulting in
net unrealized appreciation of $1,672,382.

See notes to financial statements.

UBS U.S. Equity Portfolio
Statement of Assets and Liabilities
December 31, 1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investment, at value (cost $23,144,284)........................................... $24,818,619
Cash.............................................................................. 2,980,844
Dividends and interest receivable................................................. 81,913
Deferred organization expenses and other assets................................... 43,094
-----------
Total Assets................................................................. 27,924,470
-----------

LIABILITIES:
Administrative services fees payable.............................................. 964
Trustees' fees payable............................................................ 1,929
Payable for investment securities purchased....................................... 2,382,507
Organization expenses payable..................................................... 42,733
Other accrued expenses............................................................ 70,604
-----------
Total Liabilities............................................................ 2,498,737
-----------
NET ASSETS........................................................................ $25,425,733
-----------
-----------

NET ASSETS CONSIST OF:
Paid-in capital for beneficial interests.......................................... $25,425,733
-----------
-----------
</TABLE>

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

See notes to financial statements.

<PAGE>
<PAGE>
UBS U.S. Equity Portfolio
Statement of Operations
For the Period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividends................................................................ $524,846
Interest................................................................. 35,449
--------
Investment income................................................... $ 560,295

EXPENSES
Investment advisory fees................................................. 84,435
Administrative services fees............................................. 7,036
Audit fees............................................................... 39,357
Custodian fees and expenses.............................................. 24,387
Fund accounting fees..................................................... 19,348
Legal fees............................................................... 15,273
Amortization of organization expenses.................................... 7,508
Trustees' fees........................................................... 7,508
Insurance expense........................................................ 1,647
Miscellaneous expenses................................................... 6,110
--------
Total expenses...................................................... 212,609
Less: Fee waiver.................................................... (84,435)
--------
Net expenses........................................................ 128,174
----------
Net investment income.................................................... 432,121
----------

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on securities transactions............................. 1,679
Net change in unrealized appreciation of investments..................... 1,674,335
----------
Net realized and unrealized gain on investments.......................... 1,676,014
----------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $2,108,135
----------
----------
</TABLE>

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

See notes to financial statements.

<PAGE>
<PAGE>
UBS U.S. Equity Portfolio
Statement of Changes in Net Assets
For the Period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income.................................................................. $ 432,121
Net realized gain on securities transactions........................................... 1,679
Net change in unrealized appreciation of investments................................... 1,674,335
-----------
Net increase in net assets resulting from operations................................... 2,108,135
-----------

CAPITAL TRANSACTIONS:
Proceeds from contributions............................................................ 30,786,561
Value of withdrawals................................................................... (7,468,963)
-----------
Net increase in net assets from capital transactions................................... 23,317,598
-----------

NET INCREASE IN NET ASSETS............................................................. 25,425,733

NET ASSETS:
Beginning of period.................................................................... --
-----------
End of period.......................................................................... $25,425,733
-----------
-----------
</TABLE>

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

See notes to financial statements.

<PAGE>
<PAGE>
UBS U.S. Equity Portfolio
Financial Highlights
For the Period April 2, 1996 (Commencement of Operations) through December 31,
1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000's omitted)...................................... $25,426
Average commission per share................................................... $ 0.06
Ratio of expenses to average net assets(1)..................................... 0.91%(2)
Ratio of net investment income to average net assets(1)........................ 3.07%(2)
Portfolio turnover............................................................. 19%
</TABLE>

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

See notes to financial statements.

UBS U.S. Equity Portfolio
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------

1. GENERAL
UBS U.S. 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.

A. INVESTMENT VALUATION -- Equity securities in the portfolio are valued at
their 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.

B. 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. Interest income,
adjusted for amortization of premiums and accretion of discounts on investments,
is accrued daily.

C. 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.

D. DEFERRED ORGANIZATION EXPENSES -- Expenses incurred by the Portfolio in
connection with its organization in the amount of $50,000 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).

<PAGE>
<PAGE>
UBS U.S. Equity Portfolio
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------

E. OTHER -- The Portfolio bears all costs of its operations other than expenses
specifically assumed by UBS and SFG. Expenses incurred by the Trust on behalf of
any two or more portfolios are allocated in proportion to the 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. UBS 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. 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 0.60% of
the Portfolio's average daily net assets. For the period April 2, 1996
(commencement of operations) through December 31, 1996, UBS voluntarily agreed
to waive the entire investment advisory fee. Such waiver amounted to $84,435.

B. ADMINISTRATIVE SERVICES AGREEMENT -- Under the terms of an Administrative
Services Agreement with the Trust, SFG 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 SFG an administrative
services fee, accrued daily and payable monthly, at an annual rate of 0.05% of
the Portfolio's average daily net assets. For the period April 2, 1996
(commencement of operations) through December 31, 1996, the administrative
services fee amounted to $7,036.

<PAGE>
<PAGE>
UBS U.S. Equity Portfolio
Report of Independent Accountants
- --------------------------------------------------------------------------------

To the Board of Trustees and
Investors of UBS Investor Portfolios Trust

In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position, of the UBS U.S. Equity Portfolio (the
'Portfolio') (one of the portfolios constituting the UBS Investor Portfolio
Trust) at December 31, 1996, and the results of its operations, the changes in
its net assets and the financial highlights for the period April 2, 1996
(commencement of operations) through December 31, 1996, in conformity with
generally accepted accounting principles in the United States. These financial
statements and financial highlights (hereafter referred to as 'financial
statements') are the responsibility of the Portfolio's management; our
responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit of these financial statements in accordance
with generally accepted auditing standards in the United States which require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audit, which included confirmation
of securities at December 31, 1996 by correspondence with the custodian and
brokers, provides a reasonable basis for the opinion expressed above.

PRICE WATERHOUSE
Chartered Accountants

Toronto, Ontario
February 21, 1997

UBS U.S. Equity Fund
6 St. James Avenue
Boston, Massachusetts 02116

Investment Adviser Union Bank of Switzerland,
New York Branch
1345 Avenue of the Americas
New York, NY 10105

Administrator and Distributor Signature Broker-Dealer Services, Inc.
6 St. James Avenue
Boston, Massachusetts 02116

Custodian and Transfer Agent Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02111