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PAINEWEBBER EUROPE GROWTH FUND
PAINEWEBBER GLOBAL GROWTH AND INCOME FUND
SUPPLEMENT TO PROSPECTUS DATED MARCH 1, 1995
The following amends the information appearing under the caption
"Management" on page 36 of the Prospectus:
GE Investment Management Incorporated ("GEIM") now serves as sub-
adviser for PaineWebber Europe Growth ("Europe Growth Fund") and for the
equity securities portion of the portfolio of PaineWebber Global Growth
and Income Fund ("Global Growth and Income Fund") pursuant to an interim
sub-advisory agreement ("Interim Agreement") between Mitchell Hutchins
Asset Management Inc. ("Mitchell Hutchins") and GEIM that was approved by
the board of trustees of PaineWebber Investment Series ("Trust"). Under
the Interim Agreement, GEIM makes and implements all investment decisions
with respect to the securities held in Europe Growth Fund's portfolio and
the equity securities held in Global Growth and Income Fund's portfolio.
Under its existing Investment Advisory and Administration Contract with
respect to the two Funds, Mitchell Hutchins supervises the activities of
GEIM with respect to each Fund and continues to supervise all other
aspects of that Fund's operations. Mitchell Hutchins also continues to
make all decisions concerning the allocation of the Global Growth and
Income Fund's portfolio between debt and equity securities and to
implement all investment decisions with respect to the non-equity
securities portion of that Fund's portfolio. With respect to Europe
Growth Fund, Mitchell Hutchins (not the Fund) pays GEIM for its services
under the Interim Agreement at the annual rate of 0.31% of Europe Growth
Fund's average daily net assets up to $500 million, 0.29% of the Fund's
average daily net assets in excess of $500 million to $1 billion and
0.265% of the Fund's average daily net assets in excess of $1 billion.
Europe Growth Fund had approximately $105.7 million in net assets as of
February 28, 1995. With respect to Global Growth and Income Fund,
Mitchell Hutchins (not the Fund) pays GEIM for its services under the
Interim Agreement at the annual rate of 0.29% of Global Growth and Income
Fund's average daily net assets attributable to the equity securities
portion of that Fund's portfolio. The Interim Agreement will continue in
effect with respect to each Fund for the shorter of 120 days from March
23, 1995 (the date of the Interim Agreement) or the date that a new sub-
advisory agreement is approved by that Fund's shareholders.
GEIM is located at 3003 Summer Street, P.O. Box 7900, Stamford
Connecticut 06904 and is a wholly owned subsidiary of General Electric
Company. GEIM is a registered investment adviser, and its principal
officers and directors serve in similar capacities with respect to General
Electric Investment Corporation ("GEIC"), also a registered investment
adviser and a wholly owned subsidiary of General Electric Company. GEIM
and GEIC together provide investment management services to various
institutional accounts with total assets of approximately $45.8 billion as
of February 28, 1995.
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The Trust's board of trustees expects to call a special meeting
of shareholders of each Fund prior to the termination of the Interim
Agreement.
The following replaces the fourth and fifth paragraphs appearing under the
caption "Management" on page 37 of the Prospectus.
Effective March 23, 1995, Ralph R. Layman became the individual
primarily responsible for the day-to-day management of Europe Growth
Fund's portfolio and the equity securities portion of Global Growth and
Income Fund's portfolio. Mr. Layman is an executive vice president and a
senior investment manager of GEIM and GEIC. From 1989 to 1991, Mr. Layman
served as executive vice president, partner and portfolio manager of
Northern Capital Management Co. and, prior thereto, served as vice
president and portfolio manager of Templeton Investment Counsel. Stuart
Waugh, a vice president of the Trust and a managing director of global
fixed income investments of Mitchell Hutchins, continues to be responsible
for the day-to-day management of the debt securities portion of Global
Growth and Income Fund's portfolio. Mr. Waugh has been employed by
Mitchell Hutchins as a portfolio manager for the last eight years.
Dated: March 23, 1995
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