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MITCHELL HUTCHINS/KIDDER, PEABODY ADJUSTABLE RATE
GOVERNMENT FUND
SUPPLEMENT TO PROSPECTUS DATED DECEMBER 29, 1994
The board of trustees of Mitchell Hutchins/Kidder, Peabody Investment Trust
('Trust') has approved a Plan of Reorganization and Termination
('Reorganization') for submission to the shareholders of its series, Mitchell
Hutchins/Kidder, Peabody Adjustable Rate Government Fund ('Fund'), at a special
meeting to be held October 19, 1995. If the proposed Reorganization is approved
and implemented, all the Fund's assets will be acquired and its liabilities
assumed by PaineWebber Short-Term U.S. Government Income 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 the
corresponding Class of 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 Investments 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 October 19, 1995. Sales of all Classes of Fund shares will cease
on October 16, 1995, so that Fund shares will no longer be available for
purchase or exchange starting on October 17, 1995 through the closing date of
the Reorganization. Redemptions of Fund shares and exchanges of Fund shares for
shares of another PaineWebber or Mitchell Hutchins/Kidder, Peabody mutual fund
may be effected through the closing date of the Reorganization.
Supplement Dated: August 24, 1995
THIS SUPPLEMENT DOES NOT SUPERSEDE ANY PREVIOUS SUPPLEMENTS
TO THE PROSPECTUS.
