UBS Liquid Assets Government Fund - US Money Market … Assets... · UBS Liquid Assets Government...

UBS Liquid Assets Government FundProspectus | August 28, 2017

This prospectus offers shares of a money market fund primarily to eligible benefit plans that participate incertain UBS Financial Services Inc. investment programs. In addition, the fund is available to (i) qualifiedbenefit plans with pooled account structures and (ii) Wilmington Trust Fiduciary Services (formerly UBSFiduciary Trust Company) Collective Investment Trust Portfolios for Employee Benefit Plans.

As with all mutual funds, the Securities and Exchange Commission has not approved or disapproved thefund’s shares or determined whether this prospectus is complete or accurate. To state otherwise is a crime.

Not FDIC Insured. May lose value. No bank guarantee.

Contents

The fundWhat every investor should know about the fund

Fund summary 3

More information about the fund 8

Your investmentInformation for managing your fund accountManaging your fund account 12—Buying shares—Selling shares—Additional information about your account—Market timing—Pricing and valuation

Additional informationAdditional important information about the fundManagement 17Dividends and taxes 18Disclosure of portfolio holdings and other information 19Financial highlights 21Where to learn more about the fund Back cover

Please find the UBS family of funds privacy notice on page 22. Please find the UBS Asset Managementbusiness continuity planning overview on page 24.

The fund is not a complete or balanced investment program.

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UBS Liquid Assets Government FundFund summary

Investment objectiveTo provide as high a level of current interest income as is consistent with maintaining liquidity and stabilityof principal.

Fees and expenses of the fundThese tables describe the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder fees (fees paid directly from your investment)

Maximum front-end sales charge (load) imposed on purchases None

Maximum deferred sales charge (load) None

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)

Management fees* 0.06%

Distribution and/or service (12b-1) fees None

Other expenses 0.05

Total annual fund operating expenses* 0.11

* Under its agreement with UBS Asset Management (Americas) Inc. (“UBS AM”), the fund reimburses UBS AM for its direct costs and expenses incurred inmanaging the fund’s portfolio, which are included in “Management fees” above. The fund also reimburses UBS AM for its direct costs and expenses inadministering the fund. UBS AM’s direct costs for management and administration services exclude any costs attributable to overhead or any profitcharge.

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ExampleThis example is intended to help you compare the cost of investing in the fund with the cost of investing inother mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeemall of your shares at the end of those periods. The example also assumes that your investment has a 5%return each year and that the fund’s operating expenses remain the same.

Although your actual costs may be higher or lower, based on these assumptions your costs would be:

1 year 3 years 5 years 10 years

UBS Liquid Assets Government Fund $11 $35 $62 $141

Principal strategiesPrincipal investmentsThe fund is a money market fund and seeks to maintain a stable price of $1.00 per share. To do this, thefund invests in a diversified portfolio of high quality, US government money market instruments and inrelated repurchase agreements.

Money market instruments generally are short-term debt obligations and similar securities. They also mayinclude longer-term bonds that have variable interest rates or other special features that give them thefinancial characteristics of short-term debt. The fund has adopted a policy to invest 99.5% or more of itstotal assets in cash, government securities, and/or repurchase agreements that are collateralized fully(i.e., collateralized by cash and/or government securities) in order to qualify as a “government money mar-ket fund” under federal regulations. By operating as a government money market fund, the fund isexempt from requirements that permit the imposition of a liquidity fee and/or temporary redemptiongates. While the fund’s board may elect to subject the fund to liquidity fee and gate requirements in thefuture, the board has not elected to do so at this time. Many US government money market instrumentspay income that is generally exempt from state and local income tax, although they may be subject to cor-porate franchise tax in some states. In addition, under normal circumstances, the fund invests at least 80%of its net assets in US government securities, including government securities subject to repurchaseagreements.

The fund may invest a significant percentage of its assets in repurchase agreements. Repurchase agree-ments are transactions in which the fund purchases government securities and simultaneously commits toresell them to the same counterparty at a future time and at a price reflecting a market rate of interest.Income from repurchase agreements may not be exempt from state and local income taxation. Repur-chase agreements often offer a higher yield than investments directly in government securities. In decidingwhether an investment in a repurchase agreement is more attractive than a direct investment in govern-ment securities, the fund considers the possible loss of this tax advantage.

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Management processUBS Asset Management (Americas) Inc. (“UBS AM”) acts as the investment advisor. As investment advisor,UBS AM makes the fund’s investment decisions. UBS AM selects money market instruments for the fundbased on its assessment of relative values and changes in market and economic conditions.

UBS AM considers safety of principal and liquidity in selecting securities for the fund and thus may not buysecurities that pay the highest yield.

Principal risksAll investments carry a certain amount of risk, and the fund cannot guarantee that it will achieve its invest-ment objective.

You could lose money by investing in the fund. Although the fund seeks to preserve the value of yourinvestment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insuredor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’ssponsor has no legal obligation to provide financial support to the fund, and you should not expect thatthe sponsor will provide financial support to the fund at any time.

Money market instruments generally have a low risk of loss, but they are not risk-free. The principal riskspresented by an investment in the fund are:

Credit risk: Issuers of money market instruments may fail to make payments when due, or they maybecome less willing or less able to do so.

US Government securities risk: There are different types of US government securities with different lev-els of credit risk, including the risk of default, depending on the nature of the particular government sup-port for that security. For example, a US government-sponsored entity, such as Federal National MortgageAssociation (“Fannie Mae”) or Federal Home Loan Mortgage Corporation (“Freddie Mac”), although char-tered or sponsored by an Act of Congress, may issue securities that are neither insured nor guaranteed bythe US Treasury and are therefore riskier than those that are.

Interest rate risk: The value of the fund’s investments generally will fall when interest rates rise, and itsyield will tend to lag behind prevailing rates. The risks associated with rising interest rates may be morepronounced going forward due to the end of an extended period of historically low rates.

Market risk: The risk that the market value of the fund’s investments may fluctuate, sometimes rapidly orunpredictably, as the markets fluctuate, which may affect the fund’s ability to maintain a $1.00 shareprice. Market risk may affect a single issuer, industry, or sector of the economy, or it may affect the mar-ket as a whole. Moreover, changing market, economic and political conditions in one country or geo-graphic region could adversely impact market, economic and political conditions in other countries orregions.

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Liquidity risk: Although the fund invests in a diversified portfolio of high quality instruments, the fund’sinvestments may become less liquid as a result of market developments or adverse investor perception.

Management risk: The risk that the investment strategies, techniques and risk analyses employed by theadvisor may not produce the desired results.

PerformanceRisk/return bar chart and tableThe following bar chart and table provide information about the fund’s performance and thus give someindication of the risks of an investment in the fund.

The bar chart shows how the fund’s performance has varied from year to year. The table that follows thebar chart shows the average annual returns over various time periods for the fund’s shares.

The fund’s past performance does not necessarily indicate how the fund will perform in the future.

Prior to April 15, 2016, the fund was named UBS Liquid Assets Fund, and the fund operated under certaindifferent investment policies. The fund’s preceding historical performance does not represent its currentinvestment policies.

Total return

UBS Liquid Assets Government Fund Annual Total Returns

0

6%

2

1

4

3

5

2016

0.32%

2007 2008 2009 2010 2011 2012 2013 2014 2015

5.22%

0.21% 0.16% 0.13% 0.13% 0.08% 0.11%

2.73%

0.48%

Total return January 1 to June 30, 2017: 0.33%Best quarter during years shown—3Q 2007: 1.32%Worst quarter during years shown—3Q 2013; 1Q, 2Q, 3Q, & 4Q 2014; 1Q & 2Q 2015: 0.02%

Updated performance information is available by contacting your Financial Advisor or by calling1-888-793 8637 (Option #1).

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Average annual total returns (for the periods ended December 31, 2016)

One year 0.32%Five years 0.15Ten years 0.94

Investment advisorUBS AM serves as the investment advisor to the fund.

Purchase & sale of fund sharesThe fund offers its shares primarily to eligible benefit plans, including individual retirement accounts andcollective investment trusts. You must be a client of UBS Financial Services Inc. or a client of certain affili-ated firms to purchase fund shares. You may purchase or sell fund shares by contacting your FinancialAdvisor. The fund has a $5,000 minimum investment requirement for investors purchasing shares of thefund by withdrawing from certain deposit account sweep arrangements. The fund has no minimum to addto an account. Your fund shares will be sold automatically to settle any outstanding securities purchases ordebits to your brokerage account. Shares may be purchased and redeemed on any business day on whichthe Boston offices of the fund’s custodian and the New York City offices of UBS Financial Services Inc. andits bank are all open for business.

Tax informationThe dividends and distributions you receive from the fund are taxable and will generally be taxed as ordi-nary income, capital gains or some combination of both, unless you hold shares through a tax-exemptaccount or plan, such as an individual retirement account or 401(k) plan, in which case dividends and dis-tributions on your shares generally will be taxed when withdrawn from the tax-exempt account or plan.

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UBS Liquid Assets Government Fund

More information about the fund

Additional information about the investmentobjectiveThe fund’s investment objective may not bechanged without shareholder approval.

Additional information about investmentstrategiesThe fund seeks to achieve its investment objectiveby investing in a diversified portfolio of high quality,US government money market instruments and inrelated repurchase agreements, which generally areshort-term debt obligations and similar securities.They also may include longer-term bonds that havevariable interest rates or other special features thatgive them the financial characteristics of short-termdebt. Many US government money market instru-ments pay income that is generally exempt fromstate and local income tax, although they may besubject to corporate franchise tax in some states.The fund may invest a significant percentage of itsassets in repurchase agreements. Repurchaseagreements are transactions in which the fund pur-chases government securities and simultaneouslycommits to resell them to the same counterparty ata future time and at a price reflecting a market rateof interest. Income from repurchase agreementsmay not be exempt from state and local incometaxation. Repurchase agreements often offer ahigher yield than investments directly in govern-ment securities. In deciding whether an investmentin a repurchase agreement is more attractive than adirect investment in government securities, thefund considers the possible loss of this taxadvantage.

The fund’s board has determined that the fund willoperate as a “government money market fund”pursuant to Rule 2a-7 under the Investment Com-pany Act of 1940, as amended (“Rule 2a-7”).

Therefore, the fund has adopted a policy to invest99.5% or more of its total assets in cash, govern-ment securities, and/or repurchase agreements thatare collateralized fully (i.e., collateralized with cashand/or government securities). As a “governmentmoney market fund,” the fund (1) is permitted touse the amortized cost method of valuation to seekto maintain a $1.00 share price, and (2) is not sub-ject to a liquidity fee and/or a redemption gate onfund redemptions which might apply to other typesof funds should certain triggering events specifiedin Rule 2a-7 occur. (In conformance with Rule 2a-7,the fund’s board has reserved its ability to changethis policy with respect to liquidity fees and/orredemption gates, but such change would onlybecome effective after shareholders were providedwith specific advance notice of a change in thefund’s policy and have the opportunity to redeemtheir shares in accordance with Rule 2a-7 beforethe policy change became effective.)

In addition, under normal circumstances, the fundinvests at least 80% of its net assets in US govern-ment securities, including government securitiessubject to repurchase agreements. The fund’s 80%policy is a “non-fundamental” policy. This meansthat this investment policy may be changed by thefund’s board without shareholder approval. How-ever, the fund has also adopted a policy to provideits shareholders with at least 60 days’ prior writtennotice of any change to the 80% investmentpolicy.

Like all money market funds, the fund is subject tomaturity, quality, diversification and liquidityrequirements under Rule 2a-7. The fund’s invest-ment strategies are designed to comply with theserequirements. The fund may invest in high quality,

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short-term, US dollar-denominated money marketinstruments paying a fixed, variable or floatinginterest rate.

UBS AM may use a number of professional moneymanagement techniques to respond to changingeconomic and money market conditions and toshifts in fiscal and monetary policy. These tech-niques include varying the fund’s composition andweighted average maturity based upon UBS AM’sassessment of the relative values of various moneymarket instruments and future interest rate pat-terns. UBS AM also may buy or sell money marketinstruments to take advantage of yield differences.

Although not a principal strategy of the fund, thefund may invest to a limited extent in shares of sim-ilar money market funds. The fund’s investments inother money market funds that comply with thedefinition of a “government money market fund”under Rule 2a-7 will be treated as investments inthe underlying securities held by such money mar-ket funds for the purposes of the fund’s policy toinvest 99.5% or more of its total assets in cash,government securities, and/or repurchase agree-ments that are collateralized fully (i.e., collateralizedby cash and/or government securities).

Additional information about principal risksThe main risks of investing in the fund aredescribed below.

Other risks of investing in the fund, along with fur-ther details about some of the risks describedbelow, are discussed in the fund’s Statement ofAdditional Information (“SAI”). Information on howyou can obtain the SAI can be found on the backcover of this prospectus.

Credit risk. Credit risk is the risk that the issuer ofa money market instrument will not make principal

or interest payments when they are due. Even if anissuer does not default on a payment, a moneymarket instrument’s value may decline if the marketbelieves that the issuer has become less able, or lesswilling, to make payments on time. Even the high-est quality money market instruments are subject tosome credit risk. The credit quality of an issuer canchange rapidly due to market developments andmay affect the fund’s ability to maintain a $1.00share price.

US Government securities risk. Credit risk is therisk that the issuer will not make principal or inter-est payments when they are due. There are differ-ent types of US government securities withdifferent relative levels of credit risk depending onthe nature of the particular government support forthat security. US government securities may be sup-ported by (1) the full faith and credit of the US;(2) the ability of the issuer to borrow from the USTreasury; (3) the credit of the issuing agency, instru-mentality or government-sponsored entity; (4) poolsof assets (e.g., mortgage-backed securities); or(5) the US in some other way. In some cases, thereis even the risk of default. For example, for asset-backed securities there is the risk those assets willdecrease in value below the face value of the secu-rity. Similarly, for certain agency issued securitiesthere is no guarantee the US government will sup-port the agency if it is unable to meet its obliga-tions. Further, the US government and its agenciesand instrumentalities do not guarantee the marketvalue of their securities; consequently, the value ofsuch securities will fluctuate. This may be the caseespecially when there is any controversy or ongoinguncertainty regarding the status of negotiations inthe US Congress to increase the statutory debt ceil-ing. If the US Congress is unable to negotiate anadjustment to the statutory debt ceiling, there isalso the risk that the US government may defaulton payments on certain US government securities,

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including those held by the fund, which could havea material negative impact on the fund.

Interest rate risk. The value of money marketinstruments generally can be expected to fall whenshort-term interest rates rise and to rise whenshort-term interest rates fall. Interest rate risk is therisk that interest rates will rise, so that the value ofthe fund’s investments will fall. Also, the fund’syield will tend to lag behind changes in prevailingshort-term interest rates. This means that thefund’s income will tend to rise more slowly thanincreases in short-term interest rates. Similarly,when short-term interest rates are falling, thefund’s income generally will tend to fall moreslowly.

The historically low interest rate environmentincreases the risk associated with rising interestrates, including the potential for periods of volatilityand increased redemptions. The fund may face aheightened level of interest rate risk since the USFederal Reserve Board has ended its quantitativeeasing program and may continue to raise rates.

Market risk. The market value of the fund’s invest-ments may fluctuate as the markets fluctuate. Mar-ket fluctuation may affect the fund’s ability tomaintain a $1.00 share price. Market risk, some-times dramatically or unpredictably, may affect asingle issuer, industry, section of the economy orgeographic region, or it may affect the market as awhole. Volatility of financial markets can expose thefund to greater market risk, possibly resulting ingreater illiquidity and valuation risks. Moreover,market, economic and political conditions in onecountry or geographic region could adverselyimpact market, economic and political conditions inother countries or regions, including countries andregions in which the fund invests, due to increas-ingly interconnected global economies and financial

markets. Additionally, market conditions and legis-lative, regulatory, or tax developments may affectthe investment techniques available to the advisorin connection with managing the fund and mayresult in increased regulation of the fund or itsinvestments, and, in turn, may adversely affect theability of the fund to achieve its investment objec-tive and the fund’s performance.

Liquidity risk. The fund’s investments may becomeless liquid due to market developments or adverseinvestor perception. When there is no willing buyerand investments cannot be readily sold at thedesired time or price, the fund may have to accepta lower price or may not be able to sell an instru-ment at all. The inability to sell an instrument couldadversely affect the fund’s ability to maintain a$1.00 share price or prevent the fund from beingable to take advantage of other investment oppor-tunities. This risk may increase during an unusuallyhigh volume of redemption requests by even a fewlarge investors or unusual market conditions.

Management risk. There is the risk that the invest-ment strategies, techniques and risk analysesemployed by the advisor may not produce thedesired results. The advisor may be incorrect in itsassessment of a particular security or assessment ofmarket, interest rate or other trends, which canresult in losses to the fund.

Additional (non-principal) risksSecurities lending risk. Securities lending involvesthe lending of portfolio securities owned by thefund to qualified broker-dealers and financial insti-tutions. When lending portfolio securities, the fundinitially will require the borrower to provide thefund with collateral, most commonly cash, whichthe fund will invest. Although the fund invests thiscollateral in a conservative manner, it is possiblethat it could lose money from such an investment

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or fail to earn sufficient income from its investmentto cover the fee or rebate that it has agreed to paythe borrower. Loans of securities also involve a riskthat the borrower may fail to return the securitiesor deliver the proper amount of collateral, whichmay result in a loss to the fund. In addition, in theevent of bankruptcy of the borrower, the fundcould experience losses or delays in recovering theloaned securities. In some cases, these risks may bemitigated by an indemnification provided by thefund’s lending agent.

Temporary defensive positioning. Duringadverse market conditions or when the advisorbelieves there is an insufficient supply of appropri-ate money market securities in which to invest, thefund may temporarily hold uninvested cash in lieuof such investments. During periods when suchtemporary or defensive positions are held, the fundmay not be able to fully pursue its investmentobjective. Such positions may also subject the fundto additional costs and risks, such as increasedexposure to cash held at a custodian bank.

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Managing your fund account

Buying sharesThe fund offers its shares primarily to eligible bene-fit plans, including individual retirement accounts,through brokerage accounts established as eligiblebenefit plan sweep accounts at UBS Financial Ser-vices Inc. or certain other financial services firms.The types of eligible benefit plans that are permit-ted to buy fund shares are described below. The listbelow is not exhaustive, and the fund reserves theright to offer its shares to other similar types of eli-gible benefit plans. You can open an eligible bene-fit plan sweep account by contacting your FinancialAdvisor.

Fund shares are available primarily to eligible bene-fit plans that participate in certain investment pro-grams offered by UBS Financial Services Inc. or anaffiliate. The eligible investment programs include,but are not limited to:

• UBS Financial Services Inc. ACCESSSM;

• UBS Financial Services Inc. Managed AccountsConsulting (MAC) Wrap;

• UBS Financial Services Inc. Portfolio ManagementProgram (PMP);

• UBS Financial Services Inc. SELECTIONSSM; and

• Private Wealth SolutionsSM.

The fund may be made available to other programs.(ACCESS and SELECTIONS are servicemarks of UBSFinancial Services Inc. Private Wealth Solutions is aservicemark of UBS AM.)

The fund is designed primarily for eligible benefitplans that participate in these programs and other

similar programs. In addition to the programsnamed above, fund shares are available for pur-chase by (i) qualified benefit plans with pooledaccount structures and (ii) Wilmington Trust Fidu-ciary Services (formerly UBS Fiduciary Trust Com-pany) Collective Investment Trust Portfolios forEmployee Benefit Plans.

The terms of your securities account are more fullydescribed in separate materials your Financial Advi-sor can provide you (the “UBS AccountAgreements”). Not all correspondent firms havearrangements with UBS Financial Services Inc. tomake fund shares available to their customers.

Automatic sweep programs. UBS Financial Ser-vices Inc. administers bank deposit sweep programsunder which free cash balances in certain clientsecurities accounts are automatically swept intointerest-bearing deposit accounts (the “Bank SweepPrograms”). The terms and eligibility requirementsfor the Bank Sweep Programs are described in theUBS Bank Sweep Programs Disclosure Statement(the “Disclosure Statement”), which is part of theUBS Account Agreements.

Investors who are eligible to participate in the BankSweep Programs are referred to as “eligible partici-pants” below to distinguish them from other inves-tors in the fund.

Free cash balances (that is, immediately availablefunds) of certain eligible participants automaticallydefault to an interest-bearing deposit account(based on account type) as a primary sweep option.

Accounts participating in the Bank Sweep Programsare generally subject to an automatic dollar limit or“cap” of $250,000 per securities account owner,

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which will apply to the amount that can be sweptinto bank deposit accounts under the applicableBank Sweep Program. Available balances in excessof the cap will be automatically invested in a “sec-ondary sweep option,” which will be an availablemoney market fund, including this fund.

Certain non-eligible participants may be eligible tohave free cash balances in their securities accountsautomatically invested in shares of this fund as their“primary sweep option.” For example, a qualifiedplan with a pooled account structure is a non-eligible participant and will have free cash balancesautomatically invested in shares of this fund as theprimary sweep option. Please refer to the UBSAccount Agreements for more information.

Selecting and changing your sweep option.Please refer to the UBS Account Agreements forinformation on available sweep options, includingrestrictions and eligibility requirements. If youwould like to change your sweep option, pleasecontact your Financial Advisor at UBS Financial Ser-vices Inc.

Eligible participants in the Bank Sweep Programsmay also purchase shares of the fund from theiravailable balances. See “Buying shares of the fundby eligible participants” below.

Background information. Your purchase of fundshares will be priced at the next determination ofnet asset value on any business day after federalfunds become available to the fund. Federal fundsare funds deposited by a commercial bank in anaccount at a Federal Reserve bank that can betransferred to a similar account of another bank inone day and thus can be made immediately avail-able to the fund. A business day is any day that theBoston offices of the fund’s custodian and the NewYork City offices of UBS Financial Services Inc. and

its bank are all open for business. One or more ofthese institutions will be closed on the observanceof the following holidays: New Year’s Day, MartinLuther King, Jr. Day, President’s Day, Good Friday,Memorial Day, Independence Day, Labor Day,Columbus Day, Veteran’s Day, Thanksgiving Dayand Christmas Day.

The fund, UBS AM and UBS Asset Management(US) Inc., the fund’s distributor (“UBS AM (US)”),have the right to reject a purchase order and tosuspend the offering of fund shares for a period oftime or permanently.

The fund pays no sales commission, sales load or dis-tribution fees to its principal underwriter, UBS AM(US), and its affiliates, or any other person, in connec-tion with the sale of fund shares. Neither UBS AM(US) nor any affiliate exercises any discretion withrespect to the timing or frequency of the automaticinvestment of free cash balances.

Please consult your Financial Advisor for more infor-mation about the automatic purchase feature.

All free cash balances in securities accounts of$1.00 or more (or for IRAs, of $0.01 or more),including proceeds from the securities you havesold, are automatically invested in your sweepoption on a daily basis for settlement the same day.There is no sales charge or commission paid for theautomatic purchase of shares.

Eligible participants for the Bank Sweep Pro-grams. Please refer to the Disclosure Statement formore information about eligible participants in theBank Sweep Programs.

Buying shares of the fund by eligible partici-pants. Eligible participants may withdraw availablebalances in the Bank Sweep Programs in order todirectly purchase shares of the fund. The fund has a

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$5,000 minimum investment requirement for suchpurchases. For more information, please contactyour Financial Advisor at UBS Financial Services Inc.

Minimum investmentsExcept as noted above with respect to buyingshares of the fund by eligible participants, the fundhas no minimum for initial investments or to add toan account, but reserves the right to establish mini-mum investment requirements at any time.

Benefit plans eligible to buy fund sharesEligible benefit plans that may buy fund sharesinclude:

• individual retirement accounts (e.g., traditional,rollover and “SIMPLE” IRAs);

• simplified employee pension plans;

• cash or deferred arrangements (i.e., 401(k) plans,including SIMPLE 401(k) plans);

• profit sharing plans;

• money purchase plans;

• defined benefit plans;

• target benefit plans;

• church plans;

• government plans; and

• self-employed plans (i.e., “Keoghs”).

Other benefit plans may be eligible to buy fundshares. Contact your Financial Advisor for moreinformation regarding these benefit plans.

Although the amount that you may contribute toan eligible benefit plan in any one year is subject tocertain limitations, you may invest and reinvestassets already held in an eligible benefit plan in thefund without regard to these limitations. In additionto the programs named above, fund shares areavailable for purchase by (i) qualified benefit planswith pooled account structures and (ii) WilmingtonTrust Fiduciary Services (formerly UBS FiduciaryTrust Company) Collective Investment Trust Portfo-lios for Employee Benefit Plans.

Selling sharesShares of the fund are sold automatically in theorder described in the UBS Account Agreements tosettle any outstanding securities purchases or otherdebits to your UBS Financial Services Inc. securitiesaccount.

Eligible participants who directly purchased sharesof the fund may sell their shares and transfer theproceeds back to the Bank Sweep Programs (pro-vided deposit balances have not reached the cap)by contacting their Financial Advisor in person or bytelephone or mail.

If the proceeds from selling your fund sharesremain in the eligible benefit plan sweep account,certain adverse tax consequences that may other-wise be applicable to eligible benefit plan distribu-tions will not occur.

Your sales proceeds will be paid in federal fundsordinarily on the same day. If you sell all the sharesyou own, dividends accrued for the month to datewill be paid in federal funds and wired on the sameday.

Typically, redemptions of fund shares will be madeby the fund wiring a cash payment . The fund typi-cally expects to meet redemption requests by using

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holdings of cash or cash equivalents and/or pro-ceeds from the sale or maturity of portfolio hold-ings. However, if conditions exist that make cashpayments undesirable, the fund reserves the rightto honor any request for redemption by makingpayments in whole or in part in securities, to theextent permitted under applicable law.

More information regarding “Eligibleparticipants”For eligibility requirements for the Bank Sweep Pro-grams, please refer to the Disclosure Statement.

The list of eligible participants may change at thediscretion of UBS Financial Services Inc.

Temporary sweep option. If you are an eligibleparticipant, in the event that the bank offering theinterest-bearing deposit accounts into which yourfree cash balances are swept elects to stop takingdeposits at its discretion or if it is prohibited fromdoing so by its banking regulators, your free cashbalances will be swept to a temporary sweepoption. The fund will be a temporary sweep optionfor certain eligible participants. Please refer to theDisclosure Statement for more information regard-ing the temporary sweep option and how it may beimplemented.

Additional information about your accountInvestment programs buying or holding shares fortheir client accounts may charge clients for cashmanagement and other services provided in con-nection with their accounts.

You should consider the terms of your investmentprogram before purchasing shares.

You will receive a confirmation of your purchasesand sales of fund shares on periodic account state-ments. These periodic statements may be sent

monthly except that, if your only fund activity in aquarter was reinvestment of dividends, the activitymay be reported on a quarterly rather than amonthly statement.

To help the government fight the funding of terror-ism and money laundering activities, federal lawrequires all financial institutions to obtain, verifyand record information that identifies each personwho opens an account. If you do not provide theinformation requested, the fund may not be able tomaintain your account. If the fund is unable to ver-ify your identity or that of another person(s) autho-rized to act on your behalf, the fund and UBS AM(US) reserve the right to close your account and/ortake such other action they deem reasonable orrequired by law. Fund shares will be redeemed andvalued in accordance with the net asset value nextcalculated after the determination has been madeto close the account.

Upon receipt of a proper redemption request sub-mitted in a timely manner and otherwise in accor-dance with the redemption procedures set forth inthis prospectus, the fund will redeem the requestedshares and make a payment. The fund may post-pone and/or suspend redemption and paymentbeyond one business day (but within seven calendardays) for any period during which there is a non-routine closure of the Fedwire or applicable FederalReserve Banks. In addition, the fund may also post-pone or suspend redemption and payment asfollows: (1) for any period (a) during which theNew York Stock Exchange (“NYSE”) is closed otherthan customary weekend and holiday closings or(b) during which trading on the NYSE is restricted;(2) for any period during which an emergency existsas a result of which (a) disposal by the fund ofsecurities owned by it is not reasonably practicableor (b) it is not reasonably practicable for the fundfairly to determine the net asset value of shares of

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the fund; (3) for any period during which the SEChas, by rule or regulation, deemed that (a) tradingshall be restricted or (b) an emergency exists; (4) forany period that the SEC may by order permit foryour protection; or (5) for any period during whichthe fund, as part of a necessary liquidation of thefund, has properly postponed and/or suspendedredemption of shares and payment in accordancewith federal securities laws.

Market timingFrequent purchases and redemptions of fund sharescould increase the fund’s transaction costs, such asmarket spreads and custodial fees, and may inter-fere with the efficient management of the fund’sportfolio, which could impact the fund’s perfor-mance. However, money market funds are gener-ally used by investors for short-term investments,often in place of bank checking or savings accountsor for cash management purposes. Investors valuethe ability to add and withdraw their funds quickly,without restriction. UBS AM (US) anticipates thatshareholders will purchase and sell fund shares fre-quently because the fund is designed to offer inves-tors a liquid cash option. UBS AM (US) also believesthat money market funds, such as the fund, are nottargets of abusive trading practices. For these rea-sons, the fund’s board has not adopted policies andprocedures, or imposed redemption fees or otherrestrictions such as minimum holding periods, todiscourage excessive or short-term trading of fundshares.

Other UBS funds that are managed by UBS AM thatare not money market funds have approved policiesand procedures designed to discourage and preventabusive trading practices. For more informationabout market timing policies and procedures forthese funds, please see the funds’ prospectuses.

Pricing and valuationThe price of fund shares is based on net asset value.The net asset value per share is equal to the valueof all the assets of the fund, minus the liabilities ofthe fund, divided by the number of shares out-standing. In determining net asset value, the fundvalues its securities at their amortized cost, unlessthe fund’s board (or its delegate) determines thatthis does not represent fair value. The amortizedcost method uses a constant amortization to matu-rity of the difference between the cost of theinstrument to the fund and the amount due atmaturity. The fund’s net asset value per share isexpected to be $1.00, although this value is notguaranteed.

The fund typically calculates net asset value pershare once each business day as of 12:00 noon,Eastern time. Your price for buying or selling shareswill be the net asset value that is next calculatedafter the fund receives your order in good form.

Your Financial Advisor is responsible for makingsure that your order is promptly sent to the fundwhen shares are purchased other than through theautomatic sweep program described above.

The fund’s board has delegated to a UBS AM valua-tion committee the responsibility for making fairvalue determinations with respect to the fund’sportfolio securities. The types of securities andother instruments for which such fair value pricingmay be necessary include, but are not limited to:securities of an issuer that has entered into arestructuring; fixed-income securities that havegone into default and for which there is no currentmarket value quotation; Section 4(a)(2) commercialpaper; securities or instruments that are restrictedas to transfer or resale; illiquid instruments; andinstruments for which the prices or values availabledo not, in the judgment of UBS AM, represent cur-rent market value. The need to fair value the fund’s

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portfolio securities may also result from low tradingvolume in foreign markets or thinly traded securitiesor instruments. Various factors may be reviewed inorder to make a good faith determination of asecurity’s or instrument’s fair value. These factorsinclude, but are not limited to, fundamental analyti-cal data relating to the investment; the nature andduration of restrictions on disposition of thesecurities or instruments; and the evaluation offorces which influence the market in which thesecurities or instruments are purchased and sold.

Although not a principal strategy of the fund, thefund’s portfolio investments may also consist ofshares of other investment companies in which thefund invests. The value of each such open-endinvestment company will generally be its net assetvalue at the time the fund’s shares are priced. Pur-suant to the fund’s use of the practical expedientwithin ASC Topic 820, investments in non-registered investment companies are also valued atthe daily net asset value. Each investment companygenerally values securities and other instruments ina manner as described in that investment compa-ny’s prospectus or similar document.

ManagementInvestment advisorUBS Asset Management (Americas) Inc. (“UBS AM”)is the fund’s investment advisor and administrator.UBS AM is a Delaware corporation with its principalbusiness offices located at One North Wacker Drive,Chicago, IL 60606 and at 1285 Avenue of theAmericas, New York, New York 10019-6028. UBSAM is an investment advisor registered with the SEC.UBS AM is an indirect, asset management subsidiaryof UBS Group AG (“UBS”). As of June 30, 2017, UBSAM had approximately $155.7 billion in assets undermanagement. UBS AM is a member of the UBS

Asset Management Division, which had approxi-mately $732.2 billion in assets under managementworldwide as of June 30, 2017. UBS is an interna-tionally diversified organization headquartered inZurich, Switzerland and with operations in manyareas of the financial services group of industries.

Advisory and administration feesThe fund has agreed to pay advisory and adminis-tration fees to UBS AM that are limited to reim-bursements for estimated direct costs, excludingany profit or overhead. For the fiscal year endedApril 30, 2017, UBS AM voluntarily waived its entireadvisory and administrative fee. Had UBS AM notdone so, the fund would have paid UBS AM advi-sory and administrative fees at an estimated effec-tive annual rate of 0.06% of its average daily netassets. As of the date of this prospectus, UBS AM iswaiving its entire management fee but may termi-nate this voluntary waiver at any time.

Under the agreement with the fund, UBS AM man-ages the investment operations of the fund andalso administers the fund’s business affairs.

UBS AM is entitled to be reimbursed by the fundfor its direct advisory and administrative costs andexpenses, excluding any profit or overhead,incurred in providing services to the fund. UBSAM’s costs include the following: (i) paying the sal-aries and expenses of the fund’s officers and otherpersonnel engaged in administering the fund’sbusiness; (ii) monitoring financial and shareholderaccounting services provided by the fund’s custo-dian and transfer agent, respectively; (iii) respond-ing to shareholder inquiries and disseminatinginformation to shareholders; (iv) monitoring compli-ance with the fund’s registration statement andother operating documents, with federal and statesecurities laws and rules thereunder and with theInternal Revenue Code; (v) preparing semiannual

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and annual reports to shareholders; (vi) preparingfilings required by the SEC; (vii) assisting in thepreparation of federal, state and local tax returns;(viii) assisting with the payment of notice filing feesunder state securities laws; (ix) organizing annualand special meetings of the fund’s shareholders;and (x) paying any other costs and expenses UBSAM incurs in managing the portfolio of the fund.UBS AM periodically will review fund expenses in aneffort to confirm that only direct costs andexpenses are paid to UBS AM by the fund. The fundwill incur other expenses in its operations.

A discussion regarding the basis for the board’sapproval of the fund’s Investment Advisory andAdministration Contract with UBS AM is available inthe fund’s semiannual report to shareholders for thefiscal period ended October 31, 2016.

Other informationTo the extent authorized by law, the fund reserves theright to discontinue offering shares at any time,merge, reorganize itself or cease operations andliquidate.

Dividends and taxesDividendsThe fund declares dividends daily and pays themmonthly. The fund may distribute all or a portion of itscapital gains (if any) to the extent required to ensurethat the fund maintains its federal tax law status as aregulated investment company. The fund will also dis-tribute all or a portion of its capital gains to the extentnecessary to maintain its share price at $1.00.

You will receive dividends in additional shares ofthe fund. Shares earn dividends on the day they arepurchased but not on the day they are sold.

While the fund declares dividends daily and paysthem monthly, the amounts are rounded to thenearest $0.01 on a daily basis with respect to eachinvestor’s fund account. As a result, investorswhose fund account balances earn daily dividendsthat total less than one half a cent on any given daywill not accrue any dividends on that day.

The fund notifies its shareholders following the endof each calendar year of the amount of all divi-dends paid that year.

TaxesEligible benefit plan participants ordinarily do notpay taxes on dividends their plans receive on fundshares until they withdraw the proceeds from theplan. Generally, withdrawals from an eligible bene-fit plan will be taxable as ordinary income. With-drawals will be subject to an additional tax equal to10% of the amount distributed unless the with-drawals are used to pay certain higher educationexpenses, certain acquisition costs of first-timehome buyers, or in certain situations, are madeafter the participant:

• reaches age 591⁄2;

• becomes permanently disabled; or

• for certain employer-sponsored plans, reaches atleast age 55 and separates from service of theemployer who sponsored the plan.

You should consult your tax adviser concerning thetiming and tax consequences of withdrawals fromyour eligible benefit plan.

The failure of an eligible benefit plan to make suffi-cient distributions to a participant after the partici-pant reaches age 701⁄2 may be subject to an excisetax. Moreover, certain contributions to a benefit

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plan in excess of the amounts permitted by lawmay be subject to an excise tax.

If you hold fund shares other than through a tax-exempt account or plan such as an IRA or 401(k)plan, the dividends that you receive from the fundgenerally are subject to federal income tax regardlessof whether you receive them in additional fundshares or in cash. For these shareholders, the fundexpects that its dividends will be taxed as ordinaryincome.

Although dividends are generally treated as taxableto you in the year they are paid, dividends declaredin October, November or December but paid inJanuary are taxable as if they were paid inDecember.

An additional 3.8% Medicare tax is imposed oncertain net investment income (including ordinarydividends and capital gain distributions receivedfrom the fund and net gains from redemptions orother taxable dispositions of fund shares) of U.S.individuals, estates and trusts to the extent thatsuch person’s “modified adjusted gross income” (inthe case of an individual) or “adjusted grossincome” (in the case of an estate or trust) exceedscertain threshold amounts.

The fund may be required to withhold a 28%federal tax on all dividends payable to you

• if you fail to provide the fund or UBS Financial Ser-vices Inc. with your correct taxpayer identificationnumber on Form W-9 (for US citizens and residentaliens) or to make required certifications, or

• if you have been notified by the IRS that you aresubject to backup withholding.

Taxable distributions to non-residents will generallybe subject to a 30% withholding tax (or lowerapplicable treaty rate).

The fund is required to withhold US tax (at a 30%rate) on payments of taxable dividends and (effec-tive January 1, 2019) redemption proceeds and cer-tain capital gains dividends made to certain non-USentities that fail to comply (or be deemed compli-ant) with extensive new reporting and withholdingrequirements designed to inform the US Depart-ment of the Treasury of US-owned foreign invest-ment accounts. Shareholders may be requested toprovide additional information to the fund toenable the fund to determine whether withholdingis required.

The above is a general and abbreviated discussionof certain tax considerations, and each investor isadvised to consult with his or her own tax advisor.There is additional information on taxes in thefund’s SAI.

Disclosure of portfolio holdings and otherinformationThe fund will file its complete schedule of portfo-lio holdings with the SEC for the first and third quar-ters of each fiscal year on Form N-Q. The fund’scomplete schedule of portfolio holdings for the sec-ond and fourth quarters of each fiscal year is includedin its semiannual and annual reports to shareholdersand is filed with the SEC on Form N-CSR. The fund’sForms N-Q and Forms N-CSR are available on theSEC’s Web site at http://www.sec.gov. The fund’sForms N-Q and Forms N-CSR may also be reviewedand copied at the SEC’s Public Reference Room inWashington, D.C. Information on the operation ofthe SEC’s Public Reference Room may be obtained bycalling 1-202-551 8090. Additionally, you may obtaincopies of Forms N-Q and semiannual and annualreports to shareholders from the fund upon

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request by calling 1-800-647 1568. The semian-nual and annual reports for the fund will beposted on the fund’s Web site athttps://www.ubs.com/usmoneymarketfunds.

The fund will disclose on UBS AM’s Web site,within five business days after the end of eachmonth, a complete schedule of portfolio holdingsand information regarding the weighted averagematurity and weighted average life of the fund.This information will be posted on the UBS Website at the following internet address:https://www.ubs.com/usmoneymarketfunds.In addition, the fund will file with the SEC onForm N-MFP, within five business days after the endof each month, more detailed portfolio holdingsinformation. The fund’s Forms N-MFP will be avail-able on the SEC’s Web site; UBS AM’s Web site willalso contain a link to these filings. The UBS AMWeb site will also disclose the following information

for the fund as of the end of each business day forthe previous six months: (1) the percentage of thefund’s total assets invested in daily and weeklyliquid assets; (2) the fund’s daily net inflows andoutflows; and (3) the fund’s current market-basednet asset value per share to four decimal places,which is calculated using current market quotations(or an appropriate substitute that reflects currentmarket conditions). (For purposes of transactions inshares of the fund, the price for shares will be thenet asset value per share, calculated using theamortized cost method to two decimal places asfurther described in this prospectus and the relatedSAI.) Investors also may find additional informationabout the fund at the above referenced UBS Website internet address.

Please consult the fund’s SAI for a description ofthe policies and procedures that govern disclosureof the fund’s portfolio holdings.

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Financial highlights

The following financial highlights table is intendedto help you understand the fund’s financial perfor-mance for the past five years. Certain informationreflects financial results for a single fund share. Inthe table, “total investment return” represents therate that an investor would have earned on aninvestment in the fund (assuming reinvestment ofall dividends and distributions).

The information in the financial highlights has beenderived from the financial statements audited byErnst & Young LLP, an independent registered pub-lic accounting firm, whose report, along with thefund’s financial statements, is included in the fund’sannual report to shareholders. The annual reportmay be obtained without charge by calling toll free1-800-647 1568.

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

Years ended April 30,

2017 2016 2015 2014 2013

Net asset value, beginning of year $1.00 $1.00 $1.00 $1.00 $1.00

Net investment income 0.004 0.002 0.001 0.001 0.001

Net realized gain 0.0001 0.0001 0.0001 0.0001 0.0001

Net increase from operations 0.004 0.002 0.001 0.001 0.001

Dividends from net investment income (0.004) (0.002) (0.001) (0.001) (0.001)

Distributions from net realized gains — (0.000)1 — (0.000)1 (0.000)1

Total dividends and distributions (0.004) (0.002) (0.001) (0.001) (0.001)

Net asset value, end of year $1.00 $1.00 $1.00 $1.00 $1.00

Total investment return2 0.42% 0.18%3 0.08% 0.11%4 0.15%

Ratios to average net assets:Expenses before fee waivers 0.11% 0.13% 0.12% 0.11% 0.11%

Expenses after fee waivers 0.05% 0.07% 0.07% 0.07% 0.08%

Net investment income 0.45% 0.19% 0.08% 0.10% 0.14%

Supplemental data:Net assets, end of year (000’s) $1,275,587 $628,919 $427,172 $501,483 $845,206

1 Amount represents less than $0.0005 per share.2 Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distri-

butions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each year reported. Returns do not reflect thededuction of taxes that a shareholder would pay on fund distributions.

3 Effective April 15, 2016, the fund changed from being a “prime” money market fund able to invest in a wide range of governmental and nongovernmentaldebt securities to being a “government” money market fund focusing its investments in US government securities and related repurchase agreementsbacked by such securities; therefore, performance for prior periods reflects a different investment focus.

4 In August 2013, UBS Asset Management (Americas) Inc. made a voluntary cash payment of $57,843 to the fund in order to address a differential betweenthe number of shares outstanding and the fund’s net assets. The differential was attributed to historical, embedded capital losses that were experienced bythe fund over several years prior to the credit crisis of 2008. Payment from investment advisor had no impact on the Fund’s total investment return andrepresents less than $0.0005 per share.

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Privacy notice

UBS family of funds privacy notice

This notice describes the privacy policy of the UBS Family of Funds and the PACE® Funds managed by UBSAsset Management (collectively, the “Funds”). The Funds are committed to protecting the personal infor-mation that they collect about individuals who are prospective, current or former investors.

The Funds collect personal information in order to process requests and transactions and to provide cus-tomer service. Personal information, which is obtained from applications and other forms or correspon-dence submitted to the Funds, may include name(s), address, e-mail address, telephone number, date ofbirth, social security number or other tax identification number, bank account information, informationabout your transactions and experiences with the Funds, and any affiliation a client has with UBS FinancialServices Inc. or its affiliates (“Personal Information”).

The Funds limit access to Personal Information to those individuals who need to know that information inorder to process transactions and service accounts. These individuals are required to maintain and protectthe confidentiality of Personal Information and to follow established procedures. The Funds maintain phys-ical, electronic and procedural safeguards to protect Personal Information and to comply with applicablelaws and regulations.

The Funds may share Personal Information with their affiliates to facilitate the servicing of accounts and forother business purposes, or as otherwise required or permitted by applicable law. The Funds may alsoshare Personal Information with non-affiliated third parties that perform services for the Funds, such asvendors that provide data or transaction processing, computer software maintenance and development,and other administrative services. When the Funds share Personal Information with a non-affiliated thirdparty, they will do so pursuant to a contract that includes provisions designed to ensure that the thirdparty will uphold and maintain privacy standards when handling Personal Information. In addition to shar-ing information with non-affiliated third parties to facilitate the servicing of accounts and for other busi-ness purposes, the Funds may disclose Personal Information to non-affiliated third parties as otherwiserequired or permitted by applicable law. For example, the Funds may disclose Personal Information tocredit bureaus or regulatory authorities to facilitate or comply with investigations; to protect against orprevent actual or potential fraud, unauthorized transactions, claims or other liabilities; or to respond tojudicial or legal process, such as subpoena requests.

Except as described in this privacy notice, the Funds will not use Personal Information for any other purposeunless the Funds describe how such Personal Information will be used and clients are given an opportunity todecline approval of such use of Personal Information relating to them (or affirmatively approve the use ofPersonal Information, if required by applicable law). The Funds endeavor to keep their customer files

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complete and accurate. The Funds should be notified if any Personal Information needs to be corrected orupdated. Please call 1-800-647-1568 with any questions or concerns regarding your Personal Information orthis privacy notice.

This privacy notice is not a part of the prospectus.

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UBS Asset Management, Americas Region

Business continuity planning overview

UBS Asset Management affiliates UBS Asset Management (US) Inc. and UBS Asset Management(Americas) Inc. protect information assets, processes, and customer data from unpredictable eventsthrough preparation and testing of a comprehensive business continuity capability. This capability seeksrecovery of the technology infrastructure and information, and prevention of the loss of company or cus-tomer information and transactions. In the event of a crisis scenario, we will recover those functionsdeemed to be critical to our business and our clients, and strive to resume processing within predefinedtime frames following a disaster declaration (typically 4-6 hours). Business continuity processes provide usthe ability to continue critical business functions regardless of the type, scope, or duration of a localizedevent. However, these processes are dependent upon various external resources beyond our control, suchas regional telecommunications, transportation networks, and other public utilities.

Essential elements of the business continuity plan include:

• Crisis communication procedures—Action plans for coordinating essential communications for crisismanagement leaders, employees, and key business partners

• Information technology backup and recovery procedures—Comprehensive technology and datamanagement plans designed to protect the integrity and quick recovery of essential technology infra-structure and data

• Disaster recovery site—Alternative dedicated workspace, technology infrastructure, and systems sup-port that is designed to be fully operational within 2-4 hours of a disaster declaration

• Testing regimen—The business continuity plan is reviewed on a quarterly basis and tested on anannual basis, including full activation of the disaster recovery facility. In addition, all IT application recov-ery plans are updated and tested annually.

This business continuity planning overview is not a part of the prospectus.

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If you want more information about the fund, the followingdocuments are available free of charge upon request:

Annual/semiannual reportsAdditional information about the fund’s investments is available inthe fund’s annual and semiannual reports to shareholders.

Statement of Additional Information (SAI)The fund’s SAI provides more detailed information about the fundand is incorporated by reference into this prospectus (i.e., it islegally a part of this prospectus).

You may discuss your questions about the fund by contacting yourFinancial Advisor. You may obtain free copies of the fund’s annualand semiannual reports and its SAI by contacting the fund directlyat 1-800-647 1568. The fund’s annual and semiannual reportsand its SAI will also be posted on the UBS Web site at thefollowing internet address:https://www.ubs.com/usmoneymarketfunds. You may also requestother information about the fund and make shareholder inquiriesvia the telephone number above.

You may review and copy information about the fund, includingshareholder reports and the SAI, at the Public Reference Room ofthe Securities and Exchange Commission. You may obtaininformation about the operations of the SEC’s Public ReferenceRoom by calling the SEC at 1-202-551 8090. You can get copiesof reports and other information about the fund:

• For a fee, by electronic request at [email protected] or bywriting the SEC’s Public Reference Section, Washington, D.C.20549-1520; or

• Free from the EDGAR database on the SEC’s Internet Web siteat: http://www.sec.gov.

UBS Money Series—UBS Liquid Assets Government FundInvestment Company Act File No. 811-08767

©UBS 2017. All rights reserved.I450

UBS Liquid Assets GovernmentFundProspectus | August 28, 2017

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