<PAGE>
<PAGE>
UBS Bond Portfolio
Schedule of Investments June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE COUPON MATURITY
VALUE SECURITY DESCRIPTION RATE DATE VALUE
- ---------- ---------------------------------------------------------------- ------ -------- -----------
<C> <S> <C> <C> <C>
U.S. TREASURY & U.S. GOVERNMENT AGENCY OBLIGATIONS -- 74.8%
U.S. TREASURY OBLIGATIONS -- 65.6%
$ 150,000 U.S. Treasury Note.............................................. 6.25 % 1/31/97 $ 150,587
25,000 U.S. Treasury Note.............................................. 6.125 % 5/31/97 25,078
50,000 U.S. Treasury Note.............................................. 6.375 % 6/30/97 50,274
395,000 U.S. Treasury Note.............................................. 6.50 % 8/15/97 397,591
3,000,000 U.S. Treasury Note.............................................. 6.00 % 8/31/97 3,002,340
1,125,000 U.S. Treasury Note.............................................. 6.125 % 5/15/98 1,125,000
1,070,000 U.S. Treasury Note.............................................. 5.125 % 6/30/98 1,050,109
1,290,000 U.S. Treasury Note.............................................. 5.25 % 7/31/98 1,267,631
100,000 U.S. Treasury Note.............................................. 7.00 % 4/15/99 101,797
545,000 U.S. Treasury Note.............................................. 6.75 % 5/31/99 551,300
3,700,000 U.S. Treasury Note.............................................. 6.375 % 7/15/99 3,706,364
155,000 U.S. Treasury Note.............................................. 6.875 % 8/31/99 157,204
145,000 U.S. Treasury Note.............................................. 7.125 % 9/30/99 148,171
1,103,000 U.S. Treasury Bond.............................................. 7.75 % 1/31/00 1,149,701
3,200,000 U.S. Treasury Note.............................................. 7.125 % 2/29/00 3,272,512
505,000 U.S. Treasury Note.............................................. 6.75 % 4/30/00 510,287
20,000 U.S. Treasury Note.............................................. 6.25 % 5/31/00 19,872
2,500,000 U.S. Treasury Note.............................................. 6.125 % 7/31/00 2,472,275
1,950,000 U.S. Treasury Note.............................................. 6.125 % 9/30/00 1,927,146
100,000 U.S. Treasury Note.............................................. 7.50 % 5/15/02 104,687
645,000 U.S. Treasury Note.............................................. 6.375 % 8/15/02 639,859
637,000 U.S. Treasury Note.............................................. 6.25 % 2/15/03 625,751
419,000 U.S. Treasury Note.............................................. 7.25 % 5/15/04 434,122
100,000 U.S. Treasury Note.............................................. 7.25 % 8/15/04 103,578
-----------
22,993,236
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 9.2%
1,295,000 Federal Home Loan Mortgage Corp................................. 5.96 % 10/20/00 1,263,842
1,010,000 Federal National Mortgage Assc., Pool #346053................... 7.50 % 6/1/26 997,217
1,009,999 Federal National Mortgage Assc., Pool #250576................... 7.00 % 6/1/26 971,963
-----------
3,233,022
-----------
TOTAL U.S. TREASURY & U.S. GOVERNMENT AGENCY
OBLIGATIONS (COST $26,317,024)................................ 26,226,258
-----------
CORPORATE OBLIGATIONS -- 17.9%
CORPORATE OBLIGATIONS -- DOMESTIC -- 14.4%
850,000 Associates Corp N.A............................................. 8.50 % 1/10/00 899,904
500,000 BanPonce Corp................................................... 6.75 % 4/26/00 496,235
500,000 Capital One Bank................................................ 6.83 % 5/17/99 498,890
245,000 General Electric Capital Corp................................... 6.88 % 4/15/00 247,906
655,000 J.P. Morgan & Co................................................ 8.50 % 8/15/03 702,900
500,000 Lockheed Martin................................................. 6.55 % 5/15/99 499,475
450,000 MGM Grand Hotel Finance Corp.................................... 11.75 % 5/1/99 475,875
250,000 Praxair......................................................... 6.70 % 4/15/01 247,875
400,000 Salomon Inc..................................................... 7.25 % 5/1/01 399,100
600,000 Sears Roebuck Acceptance Corp................................... 5.59 % 2/16/01 569,586
-----------
5,037,746
-----------
CORPORATE OBLIGATIONS -- FOREIGN -- 3.0%
500,000 Canadian Pacific Forest......................................... 10.25 % 1/15/03 551,550
500,000 MEPC Finance Inc................................................ 7.50 % 5/1/03 501,506
-----------
1,053,056
-----------
</TABLE>
- ------------------------
See notes to financial statements.
1
<PAGE>
<PAGE>
UBS Bond Portfolio
Schedule of Investments June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE COUPON MATURITY
VALUE SECURITY DESCRIPTION RATE DATE VALUE
- ---------- ---------------------------------------------------------------- ------ -------- -----------
<C> <S> <C> <C> <C>
CORPORATE OBLIGATIONS -- EURODOLLAR -- 0.5%
$ 50,000 BP America Inc.................................................. 9.75 % 3/1/99 $ 53,656
40,000 Ford Capital BV................................................. 9.75 % 6/5/97 41,225
80,000 Unilever Capital................................................ 9.25 % 3/29/00 86,250
-----------
181,131
-----------
TOTAL CORPORATE OBLIGATIONS (COST $6,288,246)................... 6,271,933
-----------
FOREIGN GOVERNMENT OBLIGATIONS -- 4.0%
673,926 Canada Govt..................................................... 7.75 % 9/1/99 695,770
20,000 Italy (Euro Bond)............................................... 9.38 % 4/3/97 20,538
325,000 Japan Finance Corp.............................................. 9.13 % 10/11/00 349,837
250,000 Japan Finance Corp. Muni. Ent................................... 6.85 % 4/15/06 245,300
50,000 Province of Ontario............................................. 7.38 % 1/27/03 51,104
50,000 Province of Quebec.............................................. 9.13 % 8/22/01 54,281
-----------
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (COST $1,426,687).......... 1,416,830
-----------
ASSET BACKED SECURITIES -- 1.3%
440,000 First Omni Bank Credit Card Trust
(Cost $439,244)............................................... 6.65 % 9/15/03 437,658
-----------
TOTAL INVESTMENTS AT MARKET VALUE -- 98.0%
(COST $34,471,201)......................................................... 34,352,679
OTHER ASSETS IN EXCESS OF LIABILITIES -- 2.0%................................ 719,749
-----------
TOTAL NET ASSETS -- 100.0%................................................... $35,072,428
-----------
-----------
</TABLE>
- ------------------------
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/
PURCHASED/SOLD COST/PROCEEDS JUNE 30, 1996 (DEPRECIATION)
-------------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
PURCHASE CONTRACTS
Canadian Dollar, expiring July 2, 1996.................. 972,501 $ 714,812 $ 712,384 ($ 2,428)
SALE CONTRACTS
Canadian Dollar, expiring September 27, 1996............ 977,500 719,716 717,393 2,323
-------
NET UNREALIZED DEPRECIATION ON FORWARD FOREIGN CURRENCY
CONTRACTS............................................. ($ 105)
-------
-------
</TABLE>
- ------------------------
Note: Based on the cost of investments of $34,471,201 for Federal Income Tax
purposes at June 30, 1996, the aggregate gross unrealized appreciation and
depreciation was $42,104 and $160,626, respectively, resulting in net
unrealized depreciation of $118,522.
See notes to financial statements.
2
<PAGE>
<PAGE>
UBS Bond Portfolio
Statement of Assets and Liabilities June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $34,471,201)......................................... $34,352,679
Cash............................................................................. 72,139
Receivable for investment securities sold........................................ 718,094
Interest receivable.............................................................. 672,618
Deferred organization expenses and other assets.................................. 52,417
-----------
Total Assets................................................................ 35,867,947
-----------
LIABILITIES:
Administrative services fees payable............................................. 3,709
Trustees' fees payable........................................................... 466
Payable for investment securities purchased...................................... 712,325
Forward foreign currency contracts............................................... 105
Organization expenses payable.................................................... 48,754
Other accrued expenses........................................................... 30,160
-----------
Total Liabilities........................................................... 795,519
-----------
NET ASSETS....................................................................... $35,072,428
-----------
-----------
NET ASSETS CONSIST OF:
Paid-in capital for beneficial interests......................................... $35,072,428
-----------
-----------
</TABLE>
- ------------------------
See notes to financial statements.
3
<PAGE>
<PAGE>
UBS Bond Portfolio
Statement of Operations
For the Period April 2, 1996 (Commencement of Operations) through June 30, 1996
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest............................................................... $ 465,880
EXPENSES:
Investment advisory fees............................................... $ 33,379
Administrative services fees........................................... 3,709
Audit fees............................................................. 12,928
Custodian fees and expenses............................................ 11,146
Fund accounting fees................................................... 7,808
Legal fees............................................................. 6,164
Trustees' fees......................................................... 2,466
Amortization of organization expenses.................................. 2,466
Miscellaneous expenses................................................. 3,298
--------
Total expenses.................................................... 83,364
Less: Fee waiver.................................................. (33,379)
--------
Net expenses...................................................... 49,985
---------
Net investment income.................................................. 415,895
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on securities transactions........................... (68,956)
Net change in unrealized depreciation of investments................... (118,522)
Net change in unrealized appreciation of foreign currency contracts and
translations......................................................... 2,808
---------
Net realized and unrealized loss on investments........................ (184,670)
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... $ 231,225
---------
---------
</TABLE>
- ------------------------
See notes to financial statements.
4
<PAGE>
<PAGE>
UBS Bond Portfolio
Statement of Changes in Net Assets
For the Period April 2, 1996 (Commencement of Operations) through June 30, 1996
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income............................................................... $ 415,895
Net realized loss on securities transactions........................................ (68,956)
Net change in unrealized depreciation of investments, foreign currency contracts and
foreign currency translations..................................................... (115,714)
-----------
Net increase in net assets resulting from operations................................ 231,225
-----------
CAPITAL TRANSACTIONS:
Proceeds from contributions......................................................... 40,645,819
Value of withdrawals................................................................ (5,804,616)
-----------
Net increase in net assets from capital transactions................................ 34,841,203
-----------
NET INCREASE IN NET ASSETS.......................................................... 35,072,428
NET ASSETS:
Beginning of period................................................................. --
-----------
End of period....................................................................... $35,072,428
-----------
-----------
</TABLE>
- ------------------------
See notes to financial statements.
5
<PAGE>
<PAGE>
UBS Bond Portfolio
Financial Highlights
For the Period April 2, 1996 (Commencement of Operations) through June 30, 1996
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted)...................................... $35,072
Ratio of expenses to average net assets(1)..................................... 0.67%(2)
Ratio of net investment income to average net assets(1)........................ 5.61%(2)
Portfolio turnover............................................................. 49%(3)
</TABLE>
- ------------------------
(1) Net of fee waiver which 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.
(3) Not annualized.
See notes to financial statements.
6
<PAGE>
<PAGE>
UBS Bond Portfolio
Notes to Financial Statements June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
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 Portfolio
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 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. 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.
If market quotations for the securities of the Portfolio are not readily
available, such securities will be valued at 'fair value' as determined in good
faith by the Trustees.
B. FOREIGN CURRENCY TRANSLATION -- The accounting records of the Portfolio are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars at the current rate of exchange to determine the value of investments,
assets and liabilities. 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.
C. FORWARD FOREIGN CURRENCY CONTRACTS -- The Portfolio may enter into forward
foreign currency contracts in connection with planned purchases or sales of
securities or to hedge the U.S. dollar value of portfolio securities denominated
in a particular currency. The Portfolio could be exposed to risks if the
counterparties to the contracts are unable to meet the terms of their contracts
and from unanticipated movements in the value of a foreign currency relative to
the U.S. dollar. The forward foreign currency contracts are marked-to-market
daily using the daily exchange rate of the underlying currency and any resulting
gains or losses are recorded for financial statement purposes as unrealized
gains or losses until the contract settlement date.
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. Interest income, adjusted for amortization of
premiums and accretion of discounts on investments, is accrued daily.
7
<PAGE>
<PAGE>
UBS Bond Portfolio
Notes to Financial Statements June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
E. 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 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 June 30, 1996, the investment advisory fee
amounted to $33,379, all of which was waived.
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 June 30, 1996, the administrative services
fee amounted to $3,709.
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.
4. PURCHASES AND SALES OF INVESTMENTS
For the period April 2, 1996 (commencement of operations) through June 30, 1996,
purchases and sales of investment securities, other than short-term investments,
aggregated $49,606,601 and $14,911,922, respectively.
8
