In MATLAB 7.14 (R2012a) the base MATLAB optimization related functions were moved from the following location
>> [matlabroot '\toolbox\matlab\funfun\']
>> [matlabroot '\toolbox\matlab\optimfun\']
Since MATLAB copies all the preferences from the previous release to the new preference directory the issue is caused because MATLAB is unable to find these function.
The fix for this issue is to execute the following commands so that the path is restored to default and the toolbox cache is updated:
>> rehash toolboxcache
Since restoring the default path will remove any personal path changes, you can manually fix this by navigating to: