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PAINWEBBER MUTUAL FUNDS
CLASS Y SHARES
PROSPECTUS SUPPLEMENT
December 23, 1997
Dear Investor,
This is a supplement to the Prospectuses of the PaineWebber Mutual Funds
listed on the reverse side ('Funds'). The purpose of this supplement is to
notify prospective investors of an additional group that will be eligible to
purchase Class Y shares. The following paragraph is added under the caption
'How to Buy Shares':
a participant in PACE Multi-Advisor Program when Class Y shares are
purchased through that program.
In addition, the following revises the information under the caption 'How to Buy
Shares' preceding the subheading 'INSIGHT':
PACE MULTI-ADVISOR PROGRAM. PaineWebber offers an advisory program that provides
comprehensive investment services including investor profiling, a
personalized asset allocation strategy using an appropriate combination of
funds, and a quarterly investment performance review. PACE Multi-Advisor Program
will commence operations in early 1998. Participants in this program are
eligible to purchase Class Y shares of the PaineWebber mutual funds in the
Flexible Pricing System.
Participation in the PACE Multi-Advisor Program is subject to payment of an
advisory fee at the maximum annual rate of 1.75% of assets (generally,
charged quarterly in advance). Employees of PaineWebber and its affiliates are
entitled to a waiver of the fee otherwise payable for participation in this
program. Program clients may elect to have their program fees charged to their
PaineWebber accounts (by the automatic redmeption of money market or other
mutual fund shares) or if a qualified plan, invoiced.
Please contract your PaineWebber investment executive or PaineWebber's
correspondent firms for more information concerning mutual funds that are
available to the PACE Multi-Advisor Program.
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THE PROSPECTUSES OF THE FOLLOWING PAINEWEBBER MUTUAL FUNDS ARE HEREBY
SUPPLEMENTED:
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PaineWebber Global Equity Fund Prospectus dated March 1, 1997
PaineWebber Global Income Fund Prospectus dated March 1, 1997
PaineWebber Emerging Markets Equity Fund Prospectus dated March 1, 1997
PaineWebber Balanced Fund Prospectus dated January 1, 1997
PaineWebber Tactical Allocation Fund Prospectus dated January 1, 1997
PaineWebber U.S. Government Income Fund Prospectus dated April 1, 1997
(revised July 31, 1997)
PaineWebber Investment Grade Income Fund Prospectus dated April 1, 1997
(revised July 31, 1997)
PaineWebber High Income Fund Prospectus dated April 1, 1997
(revised July 31, 1997)
PaineWebber Low Duration U.S. Government Prospectus dated April 1, 1997
Income Fund (revised July 31, 1997)
PaineWebber Strategic Income Fund Prospectus dated April 1, 1997
(revised July 31, 1997)
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THIS PROSPECTUS SUPPLEMENT DOES NOT REPLACE ANY PRIOR SUPPLEMENTS TO THE
PROSPECTUSES LISTED ABOVE.
If you have any questions regarding the availability of Class Y Shares,
please call your Investment Executive at PaineWebber or one of its correspondent
firms.
