The following is a supplement to the Prospectus, dated December 1, 1999, of
PaineWebber PACE Select Advisors Trust (the "PACE Trust").
June 6, 2000
Dear PaineWebber PACE(SM) Investor:
The purpose of this supplement is to inform you of a change in sub-advisor for
the PACE MUNICIPAL FIXED INCOME INVESTMENTS portfolio (the "Portfolio").
On May 2, 2000, the board of trustees of the PACE Trust engaged Standish, Ayer &
Wood, Inc. ("Standish") to subadvise the Portfolio, replacing the current
management by Deutsche Asset Management, Inc., which resigned as the sub-advisor
for the Portfolio. Prior to its resignation, Deutsche Asset Management, Inc. had
subadvised the Portfolio since its inception in August 1995. Standish assumed
management of the Portfolio on June 1, 2000. The investment objective and
policies of the Portfolio remain unchanged.
STANDISH, AYER & WOOD, INC.
Standish, Ayer & Wood, Inc., located at One Financial Center, Boston,
Massachusetts 02111, is an investment manager with over $44 billion in assets
under management. Founded in 1933, Standish has remained a privately held
investment management firm. Ownership is shared by a limited number of
employees, who are the directors of the firm.
Standish's municipal investment strategy focuses on adding value by identifying
undervalued sectors or geographical regions of the municipal market; identifying
individual municipal issues that are undervalued through credit research and
valuation analysis; and by monitoring the relationship of the municipal yield
curve to the treasury yield curve. The firm utilizes economic analyses and
interest rate forecasts to make modest duration adjustments. Credit quality is
assessed by in-house analysts and is used to identify potential rating changes,
undervalued issues and macro trends with regard to market sectors and
geographical regions. Security selection decisions are made by a team, including
the portfolio managers, research analysts and traders.
Christine H. Psyhogeos is primarily responsible for the day-to-day management of
the Portfolio. Ms. Psyhogeos is an associate director of Standish. She joined
Standish in 1995 from Gannett, Welsh & Kotler, where she was a vice president
responsible for municipal bond research and trading.
Standish will be paid a fee for its management of the Portfolio by Mitchell
Hutchins Asset Management Inc., the Portfolio's investment manager ("Mitchell
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Hutchins"). The overall fee rate paid by the Portfolio remains the same,
including the allocation of the fee between Mitchell Hutchins and Standish.
If you have any questions or would like additional information, please contact
your Financial Advisor.
Please retain this supplement with your PACE Trust Prospectus for future
reference.
Sincerely,
/s/ Eric T. Jones
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Eric T. Jones
Senior Vice President
