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SUPPLEMENT TO THE PROSPECTUSES AND
STATEMENT OF ADDITIONAL INFORMATION
UBS PRIVATE INVESTOR FUNDS, INC.
UBS Bond Fund
UBS High Yield Bond Fund
UBS Value Equity Fund (formerly UBS U.S. Equity Fund)
UBS Large Cap Growth Fund
UBS Small Cap Fund
UBS International Equity Fund
(Each dated May 1, 1998)
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Union Bank of Switzerland ("UBS"), UBS Asset Management (New York) Inc.
("UBSAM-NY") and UBS International Investment London Limited ("UBSII") served as
investment adviser or investment sub-adviser, as applicable, to the portfolios
(collectively, the "Portfolios") of UBS Investor Portfolios Trust (the "Trust")
pursuant to agreements entered into at the inception of each Portfolio (the
"Former Agreements"). Each of the above-captioned series (collectively, the
"Funds") of UBS Private Investor Funds, Inc. (the "Corporation") operates as a
feeder fund in a master-feeder fund arrangement with the Trust and its
Portfolios. As feeder funds, the Funds seek to achieve their respective
investment objectives by investing all of their investable assets in a
corresponding Portfolio of the Trust with the same investment objectives and
policies. On June 29, 1998, UBS' business was combined with Swiss Bank
Corporation ("SBC") to form UBS A.G. ("UBS A.G.") and, in a related transaction,
UBSAM-NY's business was combined with SBC Brinson, Inc. to form UBS Brinson,
Inc. ("UBS Brinson") (collectively, the "Merger").
Each of the Former Agreements provided for automatic termination in the event of
its "assignment," which includes consummation of the Merger. Accordingly, new
advisory agreements (the "New Agreements"), identical in material respects with
the Former Agreements, were approved by the governing Boards of the Corporation
and the Trust at meetings held on May 12, 1998, each to take effect after the
Merger. The following table lists the investment adviser and/or investment
sub-adviser of each Portfolio prior to and after the Merger.
<TABLE>
<CAPTION>
UNDER FORMER AGREEMENTS UNDER NEW AGREEMENTS
APPLICABLE PORTFOLIOS
OF THE TRUST Adviser Sub-Adviser Adviser Sub-Adviser
- ------------------------------ ---------- ----------------- ----------- --------------
<S> <C> <C> <C> <C>
Bond Portfolio UBS N/A UBS A.G. N/A
- ------------------------------ ---------- ----------------- ----------- ---------------
High Yield Bond Portfolio UBS UBSAM-NY UBS A.G. UBS Brinson
- ------------------------------ ---------- ----------------- ----------- ---------------
Value Equity Portfolio UBS N/A UBS A.G. N/A
- ------------------------------ ---------- ----------------- ----------- ---------------
Large Cap Growth Portfolio UBS UBSAM-NY UBS A.G. UBS Brinson
- ------------------------------ ---------- ----------------- ----------- ---------------
Small Cap Portfolio UBS UBSAM-NY UBS A.G. UBS Brinson
- ------------------------------ ---------- ----------------- ----------- ---------------
International Equity Portfolio UBS UBSII UBS A.G. UBSII
- ------------------------------ ---------- ----------------- ----------- ---------------
</TABLE>
On June 16, 1998, the Securities and Exchange Commission granted an exemptive
order (the "Order") pursuant to which the New Agreements were permitted to be
implemented without prior shareholder approval beginning on June 29, 1998 and
continuing, for a period of up to 150 days, through the date on which each of
the New Agreements are approved or disapproved by the respective shareholders of
the Funds. Under the terms of the Order, UBS A.G., UBS Brinson and UBSII may
receive advisory fees pursuant to the New Agreements, provided that such fees
are held in escrow pending shareholder approval of the New Agreements. A special
meeting of shareholders to consider approval of the New Agreements is intended
to be held in the Fall of 1998 before December 4, 1998. There can be no
assurance that the New Agreements will be approved by the Funds' respective
shareholders. If a New Agreement is not approved, the escrowed fees accrued
thereunder will be returned to the applicable Portfolio and the governing Boards
of the Corporation and the Trust will consider other appropriate action.
June 30, 1998
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