<PAGE>
PAINEWEBBER INVESTMENT GRADE INCOME FUND
SUPPLEMENT TO PROSPECTUS DATED APRIL 1, 1995
The following replaces the fifth paragraph on page 35 of the Prospectus in the
section captioned "Management":
Mary B. King and Julieanna Berry are responsible for the day-to-day management
of Investment Grade Income Fund's portfolio. Mrs. King has held her Fund
responsibilities since February 1991 and was joined by Mrs. Berry in June 1995.
Mrs. King is a vice president of the Trust and also a first vice president of
Mitchell Hutchins. Mrs. King has been employed by Mitchell Hutchins since 1985.
Mrs. Berry is a vice president of Mitchell Hutchins and has been employed by
Mitchell Hutchins as a portfolio manager since 1989.
Dated: July 26, 1995
