<PAGE>
PAINEWEBBER PAINEWEBBER
CALIFORNIA TAX-FREE INCOME FUND NATIONAL TAX-FREE INCOME FUND
PAINEWEBBER PAINEWEBBER
MUNICIPAL HIGH INCOME FUND NEW YORK TAX-FREE INCOME FUND
Supplement to Prospectus dated July 1, 1995
THE FOLLOWING AMENDS IN THEIR ENTIRETY THE FOURTH AND FIFTH PARAGRAPHS
APPEARING ON PAGE 31 OF THE PROSPECTUS UNDER THE CAPTION "MANAGEMENT":
Gregory W. Serbe, a vice president of each Trust and a managing
director of Mitchell Hutchins, is the portfolio manager and has
day-to-day responsibility for New York Tax-Free Income Fund. Mr. Serbe
is also a portfolio manager for the other three Funds. Effective
September 1, 1995, William W. Veronda of Mitchell Hutchins became a
portfolio manager and assumed responsibility for the day-to-day
management of Municipal High Income Fund. In the case of California
Tax-Free Income Fund, Cynthia N. Bow, a vice president of Mitchell
Hutchins, is a portfolio manager and has day-to-day responsibility for
the Fund. In the case of National Tax-Free Income Fund, Richard S.
Murphy, a senior vice president of Mitchell Hutchins, is a portfolio
manager and has day-to-day responsibility for the Fund. Mr. Serbe has
held his Fund responsibilities since the Funds' inceptions. Ms. Bow, Mr.
Murphy and Mr. Veronda have held their Fund responsibilities since April
1993, July 1, 1994 and September 1995, respectively.
Mr. Serbe manages or oversees tax-exempt fixed income funds having
aggregate assets of more than $4.4 billion. Mr. Serbe has been with
Mitchell Hutchins since 1983. Ms. Bow has been with Mitchell Hutchins
since 1982. Mr. Murphy has been with Mitchell Hutchins since April 1994.
From 1990 to March 1994, he was a vice president at American
International Group, where he managed the municipal bond portfolio.
Prior to joining Mitchell Hutchins, Mr. Veronda was a senior vice
president and general manager of Invesco Funds Group, where he managed
municipal bond and high yield corporate bond portfolios since 1984.
DATED: SEPTEMBER 7, 1995
