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PAINEWEBBER PACE SELECT ADVISORS TRUST
Supplement to Prospectus dated December 1, 1998
Effective June 1, 1999
The following is added to the end of the second paragraph of the section
entitled "PACE International Equity Investments" on page 19 of the Prospectus
under the caption entitled "Investment Objectives and Policies of the Portfolios
and Risk Factors":
The Portfolio may also invest in convertible securities that are rated below
investment grade but no lower than B by Moody's or S&P or, if unrated,
determined to be of comparable quality by the Adviser, except that these
investments in lower-rated convertible securities, together with the Portfolio's
investments in emerging markets, may not exceed 10% of the Portfolio's total
assets.
In addition, the following replaces the first paragraph of the section entitled
"Lower Rated Convertible Securities" on page 30 of the Prospectus under the
caption entitled "Other Investment Policies and Risk Factors":
PACE Large Company Value Equity Investments may invest up to 10% of its total
assets in convertible securities that are rated below investment grade but no
lower than Ba by Moody's or BB by S&P, or if not rated by a NRSRO, determined by
its Adviser to be of comparable quality. PACE Strategic Fixed Income Investments
may invest up to 20% of its total assets in convertible securities that are
rated below investment grade but no lower than B by Moody's or S&P, or if not
rated by a NRSRO, determined by its Adviser to be of comparable quality. PACE
International Emerging Markets Equity Investments may invest up to 10% of its
total assets in convertible securities that are rated below investment grade but
no lower than C by S&P, or if not rated by a NRSRO, determined by its Adviser to
be of comparable quality. PACE International Equity Investments may invest up to
10% of its total assets, together with its investments in emerging markets, in
convertible securities that are rated below investment grade but no lower than B
by Moody's or S&P, or if not rated by a NRSRO, determined by its Adviser to be
of comparable quality. Convertible securities rated below investment grade are
commonly referred to as "junk bonds" and are deemed by the NRSROs to be
predominantly speculative and may involve significant risk exposure to adverse
conditions.
