<PAGE>
<PAGE>
UBS
LARGE CAP
GROWTH FUND
---------
UBS
Private Investor
Funds, Inc.
Semi-Annual Report
June 30, 1998
<PAGE>
<PAGE>
UBS Private Investor Funds, Inc.
Chairman's Letter
- --------------------------------------------------------------------------------
Dear Shareholder,
Thank you for your investment in the UBS Large Cap Growth Fund, which is part of
the UBS Private Investor Funds.
We are pleased to provide you with the Fund's semi-annual report for the
six-months ended June 30, 1998. This report contains a letter from the portfolio
manager discussing the performance of the Fund for the six months ended June 30,
1998, including a market overview. In addition, it includes a complete set of
financial statements as well as a schedule of investments.
The UBS Private Investor Funds are an integral part of the asset allocation
service provided by The Private Bank* of Union Bank of Switzerland, the largest
bank in Switzerland. The Funds provide investment opportunities in U.S. and
international securities markets to enhance investment performance, diversify
risk and preserve capital within your investment objectives.
The UBS Private Investor Funds bring you:
The expertise of The Private Bank's professional money managers
Global investment perspective and knowledge
A high priority on financial stability and preservation of wealth
As you are aware, in December, 1997, Union Bank of Switzerland and Swiss Bank
Corporation ('SBC') announced their intention to merge. Early in February, 1998,
the shareholders of UBS and SBC overwhelmingly approved the proposed merger. The
merger was completed on Monday June 29, 1998, creating UBS A.G.
UBS A.G. is a top-tier global financial services company which concentrates on
clearly defined core businesses. As private banking and asset management are
core businesses of the bank, shareholders of the UBS Private Investor Funds will
continue to see a commitment to growing and building the mutual fund business.
We will continue to keep you informed of any new developments as they occur.
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 semi-annual report must be accompanied or preceded by the Fund's prospectus.
<PAGE>
<PAGE>
UBS Private Investor Funds, Inc.
Fund Commentary
- --------------------------------------------------------------------------------
FUND PERFORMANCE
During the first half of the year through June 30th, the UBS Large Cap Growth
Fund earned a return of 13.13% compared to a return of 17.71% for the S&P 500
Index. This underperformance all occurred in the first quarter of the year when
the surge in the market was driven by very large cap issues to which we were
underexposed. The second quarter was a much happier experience and the Fund
outperformed the Index by returning 3.6% against 3.3%.
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 distributions) of a
hypothetical $10,000 investment made on October 14, 1997* and held through June
30, 1998.
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
UBS Large Cap Growth Fund S&P 500 Index
- ------------------------- -------------
<S> <C>
$10,000 $10,000
9,570 9,432
9,474 9,868
9,945 10,038
9,871 10,149
10,448 10,881
10,859 11,438
11,071 11,554
10,828 11,355
11,251 11,816
</TABLE>
Average Annual Total Return:
<TABLE>
<CAPTION>
UBS
LARGE CAP
GROWTH S&P 500
FUND INDEX
--------- -------
<S> <C> <C>
Six months ended June 30, 1998..................................... 13.13% 17.71%
Since inception* through June 30, 1998............................. 12.51% 18.16%
</TABLE>
----------------------
* Commencement of operations -- October 14, 1997
2
<PAGE>
<PAGE>
UBS Private Investor Funds, Inc.
Fund Commentary
- --------------------------------------------------------------------------------
MARKET OVERVIEW
In addition to the capitalization size issue which has been hurting fund
managers in general, there were some difficulties in stock selection
particularly in technology, and to a lesser extent in energy where a
concentration in oil service stocks hurt performance. Sector concentrations were
helpful overall in consumer staples (particularly the cable companies),
healthcare, and technology, but were a problem in the consumer cyclical area
where we missed the automobile stocks and were underweighted in retail. As the
first half of the year wore on, however, we corrected some of these problems by
adding major commitments to WalMart, Microsoft, America Online, and continuing
to add to our drug holdings by purchasing Schering Plough and Eli Lilly. In
addition we sold positions in some of the basic industry areas which were being
hurt by the Asian crisis. In the second quarter and so far in the third quarter
these commitments appear to be paying off.
For ten of the twelve weeks in the second quarter, stock prices traded sideways
to downward. By mid June, however, the Dow Jones average had bounced off the
8600 level and moved smartly up to close near 9000, thereby earning a small gain
for the quarter. The S&P 500 did a bit better as investors decided that with
interest rates having moved down to new lows in the 5.60% area, stocks again
looked attractive for purchase. The ensuing rally has been and continues today
to be narrow in scope and breadth with primarily the larger, more well known
stocks leading the way. Smaller capitalization stocks have languished and are
presently almost unchanged as a group from year end 1997 levels.
Economies around the world are slipping and we believe that the biggest
unanswered question looking ahead is whether the U.S. eventually gets pulled
downward or the U.S., Europe and hopefully Japan, pulls the rest of the world
ahead. Regarding the U.S. economy, most economists have recently lowered their
GDP expectations for the present spring quarter that has just ended from the 3%
range down into the 2% area, but overall consumption appears to be remaining
strong enough to keep the U.S. economy in a growth mode at least into next year.
Growth in the U.S. economy has clearly peaked (probably last quarter) as cheaper
foreign imported goods have now begun to land on our shores. Manufacturing
should slow rapidly for the next few quarters as U.S. made goods are beginning
to experience the price pressures that have been forecast to occur since the
fall of 1997. The rest of the world's troubles have, so far, served to lower
interest rates, kept inflation well under control and propelled consumer
confidence numbers to all time highs.
The stock market, as noted earlier, has corrected the oversold conditions that
drove prices downward in mid June and may have already discounted less than
satisfactory corporate earnings which may be announced in coming days. Worries
over Asia may also have peaked for awhile, especially if Japan can come up with
a credible plan to stimulate consumer spending and write off some more bad bank
loans -- as they have promised. We have entered the summer rally phase that has
been typically seen in recent years and prices may indeed move higher in coming
weeks as investors celebrate the lower interest rates that entered the
investment scene in June. There is no fear that the Federal Reserve Bank may
become more active, at least until the fall months. At that time they may even
be thinking of reducing short term interest rates rather than raising them, for
world economic pressures seem to be pushing growth downward instead of upward
these days. We feel that some upward room may indeed be available for the stock
market to rally this summer, but while monetary conditions may be favorable for
stocks, the developing earnings slowdown will not be easy to reverse and will
keep the market from making much more than marginal new highs. Worse, the
downward pressure on commodity, and now many retail prices, may become more
intense as the year progresses, all of which may present new hurdles for
investors who have never witnessed deflation in their lifetimes.
3
<PAGE>
<PAGE>
UBS Private Investor Funds, Inc.
Fund Commentary
- --------------------------------------------------------------------------------
In this economic environment, the best equity investments are those companies
that show fairly assured growth and are large enough to weather most economic
storms if they should develop. The major issue becomes one of valuation and what
price does one pay for this assurance. There is no question that companies which
disappoint these days are severely penalized in the market so one buys anything
today, except after careful examination. We believe that the Large Cap Growth
Portfolio is well positioned to deliver superior results over time by
emphasizing large companies with reasonably assured growth prospects which also
sell at relatively attractive prices.
Wayne Thornbrough
Portfolio Manager
- ------------------------
The Fund is not insured by the FDIC and is not a deposit with, an obligation of,
or guaranteed by Union Bank of Switzerland. The Fund is subject to investment
risks, including possible loss of principal amount invested.
Shares of the Fund are distributed by First Fund Distributors, Inc. which is not
affiliated with Union Bank of Switzerland.
Unlike other mutual funds, the Fund seeks to achieve its investment objective by
investing all of its investable assets in UBS Investor Portfolios Trust -- UBS
Large Cap Growth 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.
4
<PAGE>
<PAGE>
UBS Large Cap Growth Fund
Statement of Assets and Liabilities
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in UBS Investor Portfolios Trust -- UBS Large Cap Growth Portfolio, at
value.............................................................................. $7,138,155
Receivable from sale of capital stock................................................ 9,000
Receivable from funds services agent................................................. 5,937
Deferred organization expenses and other assets...................................... 10,169
----------
Total Assets............................................................... 7,163,261
----------
LIABILITIES:
Payable from purchase of capital stock............................................... 4,637
Administrative services fees payable................................................. 368
Other accrued expenses............................................................... 23,566
----------
Total Liabilities.......................................................... 28,571
----------
NET ASSETS........................................................................... $7,134,690
----------
----------
SHARES OUTSTANDING ($0.001 par value, 10 million shares authorized).................. 63,563
----------
----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE....................... $ 112.25
----------
----------
COMPOSITION OF NET ASSETS:
Shares of common stock, at par....................................................... $ 64
Additional paid-in capital........................................................... 6,362,831
Net unrealized appreciation of investments........................................... 764,430
Accumulated undistributed net investment income...................................... 17,826
Accumulated net realized loss........................................................ (10,461)
----------
Net Assets................................................................. $7,134,690
----------
----------
</TABLE>
- ------------------------
See notes to financial statements.
5
<PAGE>
<PAGE>
UBS Large Cap Growth Fund
Statement of Operations
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Investment Income and Expenses from UBS Investor Portfolios Trust -- UBS
Large Cap Growth Portfolio
Dividends.......................................................... $ 35,477
Interest........................................................... 12,087
--------
Investment income............................................. 47,564
Total expenses..................................................... $ 36,745
Less: Fee waiver and expense reimbursements........................ (18,141)
--------
Net expenses....................................................... 18,604
--------
Net Investment Income from UBS Investor Portfolios Trust -- UBS Large
Cap Growth Portfolio.................................................. 28,960
EXPENSES:
Shareholder service fees................................................ 7,509
Administrative services fees............................................ 1,953
Registration fees....................................................... 12,772
Reports to shareholders expense......................................... 10,855
Transfer agent fees..................................................... 7,438
Legal fees.............................................................. 5,411
Audit fees.............................................................. 5,112
Fund accounting fees.................................................... 4,463
Directors' fees......................................................... 1,700
Miscellaneous expenses.................................................. 4,292
--------
Total expenses..................................................... 61,505
Less: Fee waiver and expense reimbursements........................ (50,071)
--------
Net expenses....................................................... 11,434
--------
Net investment income................................................... 17,526
--------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS FROM UBS INVESTOR
PORTFOLIOS TRUST -- UBS LARGE CAP GROWTH PORTFOLIO
Net realized gain on securities transactions............................ 4,084
Net change in unrealized appreciation of investments.................... 730,609
--------
Net realized and unrealized gain on investments from UBS Investor
Portfolios Trust -- UBS Large Cap Growth Portfolio.................... 734,693
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................... $752,219
--------
--------
</TABLE>
- ------------------------
See notes to financial statements.
6
<PAGE>
<PAGE>
UBS Large Cap Growth Fund
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED OCTOBER 14, 1997*
JUNE 30, 1998 THROUGH
(UNAUDITED) DECEMBER 31, 1997
------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income........................................... $ 17,526 $ 9,350
Net realized gain (loss) on securities transactions............. 4,084 (14,545)
Net change in unrealized appreciation of investments............ 730,609 33,821
------------- -----------------
Net increase in net assets resulting from operations............ 752,219 28,626
------------- -----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income........................................... -- (9,050)
------------- -----------------
TRANSACTIONS IN SHARES OF COMMON STOCK:
Net proceeds from sale of shares................................ 4,662,313 4,108,844
Net asset value of shares issued to shareholders from
reinvestment of dividends..................................... -- 9,050
Cost of shares redeemed......................................... (2,416,956) (356)
------------- -----------------
Net increase in net assets from transactions in shares of common
stock......................................................... 2,245,357 4,117,538
------------- -----------------
NET INCREASE IN NET ASSETS...................................... 2,997,576 4,137,114
NET ASSETS:
Beginning of period............................................. 4,137,114 --
------------- -----------------
End of period (including undistributed net investment income of
$17,826 and $300, respectively)............................... $ 7,134,690 $ 4,137,114
------------- -----------------
------------- -----------------
</TABLE>
- ------------------------
* Commencement of operations.
See notes to financial statements.
7
<PAGE>
<PAGE>
UBS Large Cap Growth Fund
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED OCTOBER 14, 1997*
JUNE 30, 1998 THROUGH
(UNAUDITED) DECEMBER 31, 1997
------------- -----------------
<S> <C> <C>
FOR A SHARE OUTSTANDING FOR THE PERIOD
Net asset value, beginning of period............................. $ 99.22 $100.00
------------- --------
Income from investment operations:
Net investment income....................................... 0.27 0.23
Net realized and unrealized gain (loss) on investments...... 12.76 (0.79)
------------- --------
Total gain (loss) from investment operations................ 13.03 (0.56)
------------- --------
Less: Total dividends and distributions.......................... -- (0.22)
------------- --------
Net asset value, end of period................................... $112.25 $ 99.22
------------- --------
------------- --------
Total return..................................................... 13.13%(1) (0.55%)(1)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted).................... $ 7,135 $ 4,137
Ratio of expenses to average net assets(2).................. 1.00%(4) 1.00%(3)(4)
Ratio of net investment income to average net assets(2)..... 0.58%(4) 1.35%(3)(4)
</TABLE>
- ------------------------
* Commencement of operations.
(1) Not annualized.
(2) Includes the Fund's share of UBS Investor Portfolios Trust -- UBS Large Cap
Growth Portfolio expenses, 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 2.27% (annualized) and 7.54%
(annualized) for the respective periods.
(3) The annualization of these ratios is affected by the fact that the
Investment Advisory Agreement and Investment Sub-Advisory Agreement were not
ratified by shareholders until December 29, 1997. Prior to this date,
investment advisory services were being provided without compensation.
(4) Annualized.
See notes to financial statements.
8
<PAGE>
<PAGE>
UBS Large Cap Growth Fund
Notes to Financial Statements
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
1. GENERAL
UBS Large Cap Growth Fund (the 'Fund') is a diversified, no-load mutual fund
registered under the Investment Company Act of 1940. The Fund is one of several
series of UBS Private Investor Funds, Inc. (the 'Company'), an open-end
management investment company organized as a corporation under Maryland law. At
June 30, 1998, the Company included six other funds, UBS Bond Fund, UBS Value
Equity Fund, UBS Institutional International Equity Fund, UBS High Yield Bond
Fund, UBS Small Cap Fund and UBS International Equity Fund. These financial
statements relate only to the Fund.
The Fund seeks to achieve its investment objective by investing substantially
all of its investable assets in the UBS Large Cap Growth 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. At June 30,
1998, certain shares of the Fund were held by UBS or its affiliates on behalf of
its clients.
Investors Bank & Trust Company ('IBT') serves as the Fund's administrator and
First Fund Distributors, Inc. ('FFDI') serves as the Fund's distributor. Union
Bank of Switzerland, New York Branch ('UBS') serves as the funds services agent
to the Fund.
The financial statements of the Portfolio, including its Schedule of
Investments, are included elsewhere within this report and should be read in
conjunction with the Fund's financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates. Significant accounting policies
followed by the Fund are as follows:
A. INVESTMENT VALUATION -- The value of the Fund's investment in the Portfolio
included in the accompanying Statement of Assets and Liabilities reflects the
Fund's proportionate beneficial interest in the net assets of the Portfolio
(32.08% at June 30, 1998). Valuation of securities by the Portfolio is discussed
in Note 2A of the Portfolio's Notes to Financial Statements.
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.
C. FEDERAL TAXES -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies, including
the requirement to distribute substantially all of its taxable income, including
any net realized capital gains on investment transactions, to its shareholders.
Accordingly, no provision for federal income or excise taxes is necessary.
D. DIVIDENDS AND DISTRIBUTIONS -- The Fund declares dividends from net
investment income to shareholders of record on the day of declaration. Such
dividends are declared and paid annually. Net realized gains, if any, will be
distributed at least annually. However, to the extent that net realized gains of
the Fund can be reduced by capital loss carryovers, such gains will not be
distributed. Dividends and distributions are recorded on the ex-dividend date.
The amounts of dividends from net investment income and distributions from net
realized gains are determined in accordance with federal income tax regulations
which may differ from generally accepted accounting principles. These 'book/tax'
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified
within the
9
<PAGE>
<PAGE>
UBS Large Cap Growth Fund
Notes to Financial Statements
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
composition of net assets based upon their federal tax-basis treatment;
temporary differences do not require reclassification.
E. OTHER -- The Fund bears all costs of its operations other than expenses
specifically assumed by IBT, FFDI and UBS. Expenses incurred by the Company on
behalf of any two or more funds are allocated in proportion to the net assets of
each fund, except when allocations of direct expenses to each fund can otherwise
be made fairly. Expenses directly attributable to the Fund are charged directly
to the Fund.
3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
A. ADMINISTRATION AGREEMENT -- Under the terms of an Administration Agreement
with the Company, IBT provides overall administrative services and general
office facilities. As compensation for such services, the Company has agreed to
pay IBT a fee, accrued daily and payable monthly, at an annual rate of 0.065% of
the Fund's first $100 million average daily net assets and 0.025% of the next
$100 million average daily net assets. IBT does not receive a fee on average
daily net assets in excess of $200 million. For the six months ended June 30,
1998, the administrative services fee amounted to $1,953.
B. DISTRIBUTION AGREEMENT -- Under the terms of a Distribution Agreement, FFDI
serves as the distributor of Fund shares. FFDI does not receive any fees from
the Fund for services provided pursuant to this agreement.
C. SHAREHOLDER SERVICING AGREEMENT -- The Fund has entered into a Shareholder
Servicing 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 six months ended June 30, 1998,
the shareholder service fee amounted to $7,509, all of which was waived.
D. FUNDS SERVICES AGREEMENT -- Under the terms of a Funds Services Agreement
with the Company, UBS has agreed to provide certain administrative services to
the Fund. UBS is not entitled to any 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 1.00% of the Fund's
average daily net assets. For the six months ended June 30, 1998, UBS reimbursed
the Fund for expenses totaling $42,562 in connection with this voluntary
limitation. UBS may modify or discontinue this voluntary expense limitation at
any time with 30 days' advance notice to the Fund.
4. CAPITAL SHARE TRANSACTIONS
At June 30, 1998 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 were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD FROM OCTOBER 14, 1997
JUNE 30, 1998 (COMMENCEMENT OF OPERATIONS)
(UNAUDITED) THROUGH DECEMBER 31, 1997
------------- -----------------------------
<S> <C> <C>
Shares subscribed.............................. 45,025 41,609
Shares issued in reinvestment of dividends..... 0 92
Shares redeemed................................ (23,159) (4)
------------- -------
Net increase in shares outstanding............. 21,866 41,697
------------- -------
------------- -------
</TABLE>
10
<PAGE>
<PAGE>
UBS Large Cap Growth Portfolio
Schedule of Investments
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- ------- ------------------------------------------------------------------------------------------ -----------
<C> <S> <C>
COMMON STOCK -- 99.7%
AIRLINES -- 1.3%
4,910 Continental Airlines, Inc., Class B*...................................................... $ 298,896
-----------
BANKING & FINANCIAL INSTITUTIONS -- 7.5%
6,740 American Express Company.................................................................. 768,357
5,660 BankAmerica Corp.......................................................................... 489,236
1,090 Wells Fargo & Company..................................................................... 402,210
-----------
1,659,803
-----------
CHEMICALS -- 4.7%
9,000 Du Pont (E.I.) de Nemours................................................................. 671,624
6,530 Monsanto Company.......................................................................... 364,864
-----------
1,036,488
-----------
CONSUMER FOODS -- 2.6%
13,970 PepsiCo, Inc.............................................................................. 575,389
-----------
COSMETICS & TOILETRIES -- 1.8%
8,820 Kimberly-Clark Corporation................................................................ 404,618
-----------
DIVERSIFIED -- 3.2%
7,910 General Electric Company.................................................................. 719,810
-----------
DRUGS & PHARMACEUTICALS -- 12.3%
16,660 Abbott Laboratories....................................................................... 680,978
5,860 Bristol-Myers Squibb Co................................................................... 673,534
3,530 Eli Lilly & Company....................................................................... 233,201
4,640 Johnson & Johnson......................................................................... 342,200
3,450 Merck & Co., Inc.......................................................................... 461,438
3,800 Schering-Plough Corporation............................................................... 348,175
-----------
2,739,526
-----------
ELECTRONICS -- 2.6%
3,800 Emerson Electric Company.................................................................. 229,425
5,980 Raytheon Company, Class A................................................................. 344,598
-----------
574,023
-----------
ENTERTAINMENT -- 4.4%
16,950 Tele-Communications TCI Ventures Group, Class A*.......................................... 340,059
7,500 Time Warner Inc........................................................................... 640,781
-----------
980,840
-----------
ENVIRONMENTAL CONTROL -- 1.6%
10,160 Waste Management Inc...................................................................... 355,600
-----------
FOOD -- RETAIL -- 2.2%
9,450 Albertson's, Inc.......................................................................... 489,628
-----------
HEALTH CARE PROVIDERS -- 1.9%
14,170 Columbia/HCA Healthcare Corporation....................................................... 412,701
-----------
INSURANCE -- 6.6%
18,380 AFLAC Incorporated........................................................................ 557,144
5,740 Chubb Corporation......................................................................... 461,353
7,615 Travelers Group, Inc...................................................................... 461,659
-----------
1,480,156
-----------
MEDIA/CABLE -- 3.5%
12,770 CBS Corporation........................................................................... 405,448
9,690 Tele-Communications TCI Group, Class A*................................................... 372,459
-----------
777,907
-----------
</TABLE>
- ------------------------
See notes to financial statements.
11
<PAGE>
<PAGE>
UBS Large Cap Growth Portfolio
Schedule of Investments
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- ------- ------------------------------------------------------------------------------------------ -----------
<C> <S> <C>
MEDICAL SUPPLIES -- 3.1%
10,880 Medtronic, Inc............................................................................ $ 693,600
-----------
OIL SERVICES -- 4.2%
6,580 Baker Hughes Incorporated................................................................. 227,421
4,920 Halliburton Company....................................................................... 219,248
7,050 Schlumberger Ltd.......................................................................... 481,603
-----------
928,272
-----------
PACKAGING -- 1.9%
8,910 Crown Cork & Seal Company, Inc............................................................ 424,339
-----------
PETROLEUM PRODUCTION & SALES -- 2.9%
8,870 Burlington Resources Inc.................................................................. 381,964
3,650 Exxon Corporation......................................................................... 260,291
-----------
642,255
-----------
REAL ESTATE -- 1.8%
12,090 Simon DeBartolo Group, Inc. REIT(a)....................................................... 392,925
-----------
RETAIL -- 9.0%
12,340 Dayton Hudson Corporation................................................................. 598,490
9,060 Lowe's Companies, Inc..................................................................... 367,496
7,960 McDonald's Corporation.................................................................... 549,240
8,150 Wal-Mart Stores, Inc...................................................................... 495,113
-----------
2,010,339
-----------
TECHNOLOGY -- 12.8%
2,100 America Online, Inc....................................................................... 222,600
11,170 Compaq Computer Corporation............................................................... 316,949
7,750 Electronic Data Systems Corporation....................................................... 310,000
7,790 Hewlett-Packard Company................................................................... 466,426
4,370 International Business Machines Corporation............................................... 501,731
2,250 Microsoft Corporation..................................................................... 243,844
10,000 Sun Microsystems, Inc.*................................................................... 434,375
5,980 Texas Instruments Incorporated............................................................ 348,709
-----------
2,844,634
-----------
TELECOMMUNICATIONS -- 5.9%
12,280 Loral Space & Communications Ltd.*........................................................ 346,910
8,100 Lucent Technologies, Inc.................................................................. 673,819
5,230 QUALCOMM, Inc.*........................................................................... 293,861
-----------
1,314,590
-----------
TOBACCO -- 1.9%
10,760 Philip Morris Companies, Inc.............................................................. 423,675
-----------
TOTAL INVESTMENTS AT MARKET VALUE -- 99.7% (COST $19,499,837)...................................... 22,180,014
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.3%...................................................... 72,556
-----------
NET ASSETS -- 100.0%............................................................................... $22,252,570
-----------
-----------
</TABLE>
- ------------------------
(a) REIT -- Real Estate Investment Trust.
* Non-income producing security.
Note: Based upon the cost of investments of $19,499,837 for Federal Income Tax
purposes at June 30, 1998, the aggregate gross unrealized appreciation and
depreciation was $3,192,372 and $512,195, respectively, resulting in net
unrealized appreciation of $2,680,177.
See notes to financial statements.
12
<PAGE>
<PAGE>
UBS Large Cap Growth Portfolio
Statement of Assets and Liabilities
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment, at value (cost $19,499,837).......................................... $22,180,014
Cash............................................................................. 47,035
Dividends and interest receivable................................................ 26,598
Receivable for investment securities sold........................................ 142,625
Deferred organization expenses and other assets.................................. 85
-----------
Total Assets................................................................ 22,396,357
-----------
LIABILITIES:
Administrative services fees payable............................................. 1,279
Payable for investment securities purchased...................................... 105,434
Other accrued expenses........................................................... 37,074
-----------
Total Liabilities........................................................... 143,787
-----------
NET ASSETS....................................................................... $22,252,570
-----------
-----------
</TABLE>
- ------------------------
See notes to financial statements.
13
<PAGE>
<PAGE>
UBS Large Cap Growth Portfolio
Statement of Operations
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends............................................................. $121,117
Interest.............................................................. 42,633
--------
Investment income................................................ $ 163,750
EXPENSES:
Investment advisory fees.............................................. 62,790
Administrative services fees.......................................... 7,325
Audit fees............................................................ 18,608
Fund accounting fees.................................................. 17,356
Custodian fees and expenses........................................... 15,041
Legal fees............................................................ 2,036
Trustees' fees........................................................ 1,984
Insurance expense..................................................... 871
Miscellaneous expenses................................................ 1,548
--------
Total expenses................................................... 127,559
Less: Fee waiver and expense reimbursements...................... (62,790)
--------
Net expenses..................................................... 64,769
----------
Net investment income................................................. 98,981
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on securities transactions.......................... 121,099
Net change in unrealized appreciation of investments.................. 2,377,527
----------
Net realized and unrealized gain on investments....................... 2,498,626
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $2,597,607
----------
----------
</TABLE>
- ------------------------
See notes to financial statements.
14
<PAGE>
<PAGE>
UBS Large Cap Growth Portfolio
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED OCTOBER 14, 1997*
JUNE 30, 1998 THROUGH
(UNAUDITED) DECEMBER 31, 1997
------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income.......................................................... $ 98,981 $ 37,100
Net realized gain (loss) on securities transactions............................ 121,099 (59,628)
Net change in unrealized appreciation of investments........................... 2,377,527 302,651
------------- -----------------
Net increase in net assets resulting from operations........................... 2,597,607 280,123
------------- -----------------
CAPITAL TRANSACTIONS:
Proceeds from contributions.................................................... 7,908,988 18,949,248
Value of withdrawals........................................................... (7,388,153) (95,243)
------------- -----------------
Net increase in net assets from capital transactions........................... 520,835 18,854,005
------------- -----------------
NET INCREASE IN NET ASSETS..................................................... 3,118,442 19,134,128
NET ASSETS:
Beginning of period............................................................ 19,134,128 --
------------- -----------------
End of period.................................................................. $ 22,252,570 $19,134,128
------------- -----------------
------------- -----------------
</TABLE>
- ------------------------
* Commencement of operations.
See notes to financial statements.
15
<PAGE>
<PAGE>
UBS Large Cap Growth Portfolio
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED OCTOBER 14, 1997*
JUNE 30, 1998 THROUGH
(UNAUDITED) DECEMBER 31, 1997
------------- -----------------
<S> <C> <C>
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted)................................... $22,253 $19,134
Ratio of expenses to average net assets(1)................................. 0.62%(3) 1.14%(2)(3)
Ratio of net investment income to average net assets(1).................... 0.95%(3) 1.22%(2)(3)
Portfolio turnover......................................................... 35% 6%
</TABLE>
- ------------------------
* Commencement of operations.
(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 0.60% (annualized) and 0.42% (annualized)
for the respective periods.
(2) The annualization of these ratios is affected by the fact that the
Investment Advisory Agreement and Investment Sub-Advisory Agreement were not
ratified by shareholders until December 29, 1997. Prior to this date,
investment advisory services were being provided without compensation.
(3) Annualized.
See notes to financial statements.
16
<PAGE>
<PAGE>
UBS Large Cap Growth Portfolio
Notes to Financial Statements
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
1. GENERAL
UBS Large Cap Growth 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. At
June 30, 1998, all of the beneficial interests in the Portfolio were held by UBS
Large Cap Growth Fund and UBS Large Cap Growth Fund, Ltd.
The investment adviser of the Portfolio is Union Bank of Switzerland, New York
Branch ('UBS'); UBS Asset Management (New York) Inc. ('UBSAM') is the
sub-adviser of the portfolio. Investors Fund Services (Ireland) Limited ('IBT
Ireland') acts as the Portfolio's administrator.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates. The
following is a summary of significant accounting policies followed by the
Portfolio in the preparation of its financial statements:
A. INVESTMENT VALUATION -- Equity securities 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.
Securities or other assets for which market quotations are not readily available
are valued at fair value in accordance with procedures established by and under
the general supervision of the Portfolio's Board of Trustees (the 'Trustees').
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. OTHER -- The Portfolio bears all costs of its operations other than expenses
specifically assumed by UBS, UBSAM and IBT Ireland. 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 and UBSAM as investment sub-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 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,
17
<PAGE>
<PAGE>
UBS Large Cap Growth Portfolio
Notes to Financial Statements
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
accrued daily and payable monthly, at an annual rate of 0.60% of the Portfolio's
average daily net assets. UBS, in turn, has agreed to pay UBSAM a fee, accrued
daily and payable monthly, on an annual basis, to 0.30% of the Portfolio's first
$25 million average daily net assets, 0.25% of the Portfolio's next $25 million
average daily net assets and 0.20% of the Portfolio's average daily net assets
in excess of $50 million. For the six months ended June 30, 1998, the investment
advisory fee amounted to $62,790, all of which was waived.
B. ADMINISTRATION AGREEMENT -- Under the terms of an Administration Agreement
with the Trust, IBT Ireland provides overall administrative services and general
office facilities to the Portfolio and the Trust. As compensation for such
services, the Portfolio has agreed to pay IBT Ireland an administrative services
fee, accrued daily and payable monthly, at an annual rate of 0.07% of the
Portfolio's first $100 million average daily net assets and 0.05% of the
Portfolio's average daily net assets in excess of $100 million. For the six
months ended June 30, 1998, the administrative services fee amounted to $7,325.
4. PURCHASE AND SALES OF INVESTMENTS
For the six months ended June 30, 1998, purchases and sales of investment
securities, excluding short-term investments, aggregated to $8,781,646 and
$6,873,335, respectively.
18
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UBS Large Cap Growth Fund
200 Clarendon Street
Boston, Massachusetts 02116
<TABLE>
<S> <C>
Investment Advisor Union Bank of Switzerland,
New York Branch
1345 Avenue of the Americas
New York, NY 10105
Administrator Investors Bank & Trust Company
200 Clarendon Street
Boston, Massachusetts 02116
Distributor First Fund Distributors, Inc.
4455 East Camelback Road
Phoenix, AZ 85018
Custodian and Transfer Agent Investors Bank & Trust Company
200 Clarendon Street
Boston, Massachusetts 02116
</TABLE>
The accompanying financial statements dated as of June 30, 1998 were not audited
and, accordingly, no opinion is expressed on them.
- --------------------------------------------------------------------------------
