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MITCHELL HUTCHINS SERIES TRUST
SUPPLEMENT TO PROSPECTUS DATED MAY 1, 1998
AS SUPPLEMENTED AUGUST 5, 1998
September 25, 1998
Dear Investor,
This is a supplement to the Prospectus of Mitchell Hutchins Series Trust.
The purpose of the supplement is to inform investors in Strategic Income
Portfolio, High Income Portfolio, Small Cap Portfolio and Tactical Allocation
Portfolio (collectively, "Portfolios") about how those Portfolios will be
invested during their initial period of operations.
Until the assets of Strategic Income, High Income and Small Cap Portfolios
reach a level that permits investments directly in the securities and strategies
described in the Prospectus under the captions "Investment Objectives and
Policies" and "Description of Securities, Related Risks and Investment
Techniques" at pages MH 8 through MH 23, each of these Portfolios will be
invested in cash or money market instruments, as described on page MH 14 of the
Prospectus. This asset level is $10 million for Strategic Income and High
Income Portfolios and $3 million for Small Cap Portfolio. During this initial
period, the Portfolios will not seek to achieve their investment objectives.
Tactical Allocation Portfolio will invest in cash and money market
instruments, as described on page MH 14 of the Prospectus, until it reaches
$10 million in assets. When the Portfolio's assets are over $10 million but
less than $20 million, which is the amount the Portfolio needs to invest its
stock portion directly in approximately 450 of the 500 stocks in the S&P 500
Index, the Portfolio's stock portion will be invested in a smaller number of
stocks. Investors should be aware that while the Portfolio is invested in a
smaller number of stocks, the short-term deviation of the Portfolio's
performance from that of the S&P 500 Stock Index (tracking error) will be
somewhat greater than when it owns 450 or more stocks.
