Rule 497(e)
33 Act File No. 33-10438
40 Act File No. 811-4919
MITCHELL HUTCHINS SERIES TRUST:
TACTICAL ALLOCATION PORTFOLIO
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION
August 22, 2000
Dear Investor,
The purpose of this supplement is to revise the description of Tactical
Allocation Portfolio on pp. 7-8 of the Statement of Additional Information dated
May 1, 2000, as revised July 24, 2000, to add further disclosure about the
fund's ability to invest in securities issued by government agencies or
repurchase agreements collateralized by U.S. government securities for its cash
investments. The section, as revised, includes the following two new paragraphs
after the third full paragraph on p. 8:
For its bond investments (subject to the Internal Revenue Code
diversification requirements described above), Tactical Allocation
Portfolio seeks to invest in U.S. Treasury notes having five years
remaining until maturity at the beginning of the calendar year when
the investment is made. However, if those instruments are not
available at favorable prices, the fund may invest in U.S. Treasury
notes with either remaining maturities as close as possible to five
years or overall durations that are as close as possible to the
duration of five-year U.S. Treasury notes.
Similarly, for its cash investments (subject to the Internal Revenue
Code diversification requirements described above), Tactical
Allocation Portfolio seeks to invest in U.S. Treasury bills with
remaining maturities of 30 days. However, if those instruments are
not available at favorable prices, the fund may invest in U.S.
Treasury bills that have either remaining maturities as close as
possible to 30 days or overall durations that are as close as
possible to the duration of 30-day U.S. Treasury bills. The fund may
hold U.S. Treasury bills that mature prior to the first business day
of the following month when Mitchell Hutchins determines the monthly
asset allocation of the fund's assets based on the Tactical
Allocation Model's recommendation. If, in Mitchell Hutchins'
judgment, it is not practicable to reinvest the proceeds in U.S.
Treasury bills, Mitchell Hutchins may invest the fund's cash assets
in securities with remaining maturities of 30 days or less that are
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issued or guaranteed by U.S. government agencies or
instrumentalities and in repurchase agreements collateralized by
securities issued or guaranteed by the U.S. government, its agencies
or instrumentalities.
