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PAINEWEBBER MUTUAL FUNDS
PROSPECTUS SUPPLEMENT
November 13, 1996
Dear Investor,
This is a supplement to the Prospectuses of the PaineWebber Mutual Funds
listed below ("Funds"). The purpose of this supplement is to notify prospective
investors of an additional sales charge waiver for the Funds' Class A shares.
The Funds' other sales charge waivers are described in the Prospectuses
under the captions "Flexible Pricing," "Purchases" and/or "How to Buy Shares."
Effective immediately, the front-end sales charge will not apply when Class
A shares are acquired through an investment program that is not sponsored by
PaineWebber Incorporated ("PaineWebber") or its affiliates and that charges
participants a fee for program services, provided that the program sponsor has
entered into a written agreement with PaineWebber qualifying the program for
this waiver. For investments made pursuant to this waiver, Mitchell Hutchins
Asset Management Inc., the Funds' investment adviser and distributor, may make
a payment to PaineWebber out of its own resources in an amount not to exceed
1% of the amount invested. For subsequent investments or exchanges made to
implement a rebalancing feature of an investment program that qualifies for
this waiver, the minimum subsequent investment requirement and $5 exchange fee
also are waived.
The Prospectuses of the following PaineWebber Mutual Funds are supplemented by
this supplement:
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Name of Fund Date of Prospectus
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PaineWebber Balanced Fund July 1, 1996, as revised September 3, 1996
PaineWebber California Tax-Free Income Fund July 1, 1996
PaineWebber Capital Appreciation Fund August 1, 1996
PaineWebber Emerging Markets Equity Fund October 31, 1996
PaineWebber Financial Services Growth Fund August 1, 1996
PaineWebber Global Equity Fund October 31, 1996
PaineWebber Global Income Fund October 31, 1996
PaineWebber High Income Fund April 1, 1996, as revised May 3, 1996
PaineWebber Investment Grade Income Fund April 1, 1996, as revised May 3, 1996
PaineWebber Low Duration U.S. Government April 1, 1996, as revised May 3, 1996
Income Fund
PaineWebber Municipal High Income Fund July 1, 1996
PaineWebber National Tax-Free Income Fund July 1, 1996
PaineWebber New York Tax-Free Income Fund July 1, 1996
PaineWebber Strategic Income Fund June 3, 1996
PaineWebber Tactical Allocation Fund July 1, 1996, as revised September 3, 1996
PaineWebber U.S. Government Income Fund April 1, 1996, as revised May 3, 1996
PaineWebber Utility Income Fund August 1, 1996
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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 PaineWebber Mutual Funds listed above,
please call your Investment Executive at PaineWebber or one of its correspondent
firms.
