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August 31,1998
Supplement to the PaineWebber Global Equity Fund
Prospectus Dated March 1, 1998
Dear Investor,
This is a supplement to the prospectus of PaineWebber Global Equity
Fund ("Fund"), a series of PaineWebber Investment Trust ("Trust"). At a
meeting held on July 9, 1998, the Board of Trustees approved, subject to
shareholder approval at the Special Meeting of Shareholders scheduled for
September 24, 1998, the following changes to the manner in which the Fund's
assets are managed:
o A proposed amended Investment Advisory and Administration Agreement
between Mitchell Hutchins Asset Management Inc. ("Mitchell Hutchins") and
the Trust under which Mitchell Hutchins would have the enhanced role of
allocating the Fund's assets between U.S. and foreign securities.
Mitchell Hutchins would be responsible for the day-to-day management of
the U.S. securities segment of the Fund.
o A proposed new Sub-Advisory Contract between Mitchell Hutchins and
Invista Capital Management, Inc. ("Invista"), under which Invista would
manage the foreign securities segment of the Fund.
o A policy to permit the Board of Trustees to appoint sub-advisers and to
approve amendments to sub-advisory agreements without shareholder
approval.
The Board of Trustees also approved the termination of the existing
sub-advisory contract between GE Investment Management Inc. ("GEIM") and
Mitchell Hutchins, under which GEIM has managed the total assets of the Fund and
has allocated the assets among U.S. and foreign markets and determined which
securities the Fund purchased and sold. The contract with GEIM will terminate
when the new sub-advisory contract becomes effective.
Further information regarding Invista and the other matters being
submitted for shareholder consideration is contained in a proxy statement
relating to the Special Meeting, which has been sent to the Fund's shareholders
of record on August 7, 1998. If the proposed amended Investment Advisory and
Administration Agreement and new Sub-Advisory Contract are not approved by
shareholders, the Board of Trustees will then consider what measures are
necessary or appropriate to ensure the continuation of advisory services to
the Fund.
If you have any questions regarding the Fund, please call your
investment executive at PaineWebber of one of its correspondent firms.
