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PaineWebber Premier Tax-Free Income Fund Inc.
doing business as
INVESTMENT GRADE MUNICIPAL INCOME FUND
SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 1, 1995
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Effective August 14, 1995, the Fund commenced conducting business under the
name "Investment Grade Municipal Income Fund."
THE FOLLOWING IS ADDED TO THE END OF THE SECOND FOOTNOTE TO THE TABLE APPEARING
AT THE TOP OF PAGE 2 OF THE PROSPECTUS UNDER THE CAPTION "FUND EXPENSES":
Mitchell Hutchins is currently waiving 0.25% of its 0.90% investment advisory
and administration fees. While Mitchell Hutchins may discontinue this fee
waiver at any time, this waiver is estimated to reduce the Fund's investment
advisory and administration fees and total annual expenses (each expressed as a
percentage of net assets attributable to Common Stock) for the current fiscal
year to 1.00% and 1.36%, respectively.
AS A RESULT OF THIS FEE WAIVER, THE FOLLOWING SENTENCE IS ADDED AFTER THE TABLE
APPEARING IN THE MIDDLE OF PAGE 2 OF THE PROSPECTUS UNDER THE CAPTION "EXAMPLE"
WHICH IS ALSO A PART OF THE SECTION TITLED "FUND EXPENSES":
After giving effect to the 0.25% fee waiver referred to above, the amounts that
would be paid by an investor during the one-year, three-year, five-year and ten-
year periods reflected in the table would be $14, $43, $74 and $164,
respectively.
Dated: August 21, 1995
