<PAGE>
Supplement to the
Mitchell Hutchins LIR Select Money Fund
Statement of Additional Information dated July 31, 1998
Dear Investor, June 11, 1999
As noted in the Prospectus dated July 31, 1998 (as supplemented May 1, 1999
and June 11, 1999), PaineWebber Incorporated ("PaineWebber"), the
distributor of the Fund, may pay shareholder servicing fees to banks and
broker-dealers that make Institutional shares of the Fund available to their
customers. The annual rate of the shareholder servicing fees will not exceed
five basis points (0.05%) multiplied by the average daily net asset value of
Institutional shares held through the bank or broker-dealer by its institutional
customers, and will be paid monthly. The cost of these shareholder servicing
fees will be borne by PaineWebber or Mitchell Hutchins Asset Management Inc.,
the investment adviser to the Fund, and will not be charged to or reimbursed by
the Fund.
