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PAINEWEBBER/KIDDER, PEABODY
CALIFORNIA TAX EXEMPT MONEY FUND
Supplement to Prospectus Dated November 28, 1994
The board of trustees of PaineWebber/Kidder, Peabody California Tax Exempt
Money Fund ('Fund') has approved a Plan of Reorganization and Termination
('Reorganization') for submission to the shareholders, at a special meeting to
be held December 4, 1995. If the proposed Reorganization is approved and
implemented, all the Fund's assets will be acquired and its liabilities assumed
by PaineWebber RMA California Municipal Money Fund ('PW Fund') in a tax-free
reorganization. As a result of the Reorganization, the two funds' assets would
be combined and each Fund shareholder would, on the closing date of the
transaction, receive a number of full and fractional shares of PW Fund having an
aggregate value equal to the value of the shareholder's holdings in the Fund. PW
Fund is a series of PaineWebber Managed Municipal Trust, an open-end management
investment company organized as a Massachusetts business trust. There can be no
assurance that the Fund's shareholders will approve the Reorganization.
The meeting of Fund shareholders to consider the proposed Reorganization
will be held on December 4, 1995. Sales of Fund shares will cease as of 12:00
noon, Eastern time, on December 8, 1995, so that Fund shares will no longer be
available for purchase or exchange thereafter. Redemptions of Fund shares and
exchanges of Fund shares for shares of another PaineWebber/Kidder, Peabody money
market fund may be effected through the closing of the Reorganization, which is
scheduled to take place as of 12:00 noon, Eastern time, on December 11, 1995.
Supplement Dated: October 3, 1995
THIS SUPPLEMENT DOES NOT SUPERSEDE ANY PREVIOUS SUPPLEMENTS
TO THE PROSPECTUS.
