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July 12, 1999
Supplement to the PaineWebber Tax-Managed Equity Fund
Statement of Additional Information Dated October 4, 1998
(as revised October 23, 1998)
Dear Investor,
This is a supplement to the Statement of Additional Information of PaineWebber
Tax-Managed Equity Fund ("Fund"). The principal purpose of the supplement is to
notify shareholders and prospective investors of a change to the Fund's
description of its investment policies.
The following replaces the second sentence in the first paragraph on the cover
page:
The Fund's investment objective is to seek to maximize after-tax total return by
investing primarily in a diversified portfolio of equity securities believed by
Mitchell Hutchins to have reasonable valuations and favorable earnings
forecasts.
