SMITH BARNEY INVESTMENT FUNDS INC.
Supplement dated June 12, 1998
to the Prospectuses+
The following information supplements, and to the extent
inconsistent therewith, replaces the information contained in the
Prospectuses.
Effective immediately, Class C shares will be renamed Class L shares.
Effective June 15, 1998, Class L shares will be sold at net asset value
per share plus a maximum initial sales charge of 1.00%.
Class L Share Expenses:
The following expense table lists the costs and expenses an investor will
incur either directly or indirectly as a Class L shareholder of the Funds
shown below, based on the maximum sales charge and maximum CDSC that may be
incurred at the time of purchase or redemption and each Fund's operating
expenses for its most recent fiscal year:
Concert
Peachtree Growth
Fund
Smith
Barney
Contrarian
Fund
Smith
Barney
Government
Securities Fund
Smith
Barney
Investment Grade
Bond Fund
SmithBarney
Hansberger
Global
Small
Cap
Value
Fund
Smith
Barney
Hansberger
Global
Value
Fund
Smith
Barney
Special
Equities Fund
Shareholder Transaction Expenses
Maximum sales charge imposed
on purchases (as a percentage
of offering price)
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
Maximum CDSC
(as a percentage of original cost
or redemption proceeds, whichever is
lower)
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
Annual Fund Operating Expenses
(as a percentage of average net
assets)
Management fees
1.00%
0.85%
0.55%
0.65%
1.05%
0.95%
0.75%
12b-1 fees *
1.00%
1.00%
0.70%
0.70%
1.00%
1.00%
1.00%
Other expenses
0.41%
0.19%
0.14%
0.14%
0.40%**
0.40%**
0.20%
TOTAL FUND OPERATING EXPENSES
2.41%
2.04%
1.39%
1.49%
2.45%
2.35%
1.95%
EXAMPLE
The following example is intended to assist an investor in understanding
the various costs that an investor in class L shares of the Funds shown
below will bear directly or indirectly. The example assumes payment by each
Fund of operating expenses at the levels set forth in the preceding table.
See "Purchase of Shares," "Redemption of Shares" and "Management of the
Company and the Fund" in the accompanying Prospectus for more information.
Concert
Peachtree
Growth Fund
Smith
Barney
Contrarian
Fund
Smith
Barney
Government
Securities Fund
Smith
Barney
Investment Grade
Bond Fund
Smith
Barney Hansberger
Global
Small
Cap Value
Fund
Smith
Barney
Hansberger
Global Value
Fund
Smith
Barney
Special
Equities Fund
An investor would pay the following
expenses on a $1,000 investment, assuming (1)
5.00% annual return and (2) redemption
at the end of each time period:
1 year
$ 44
$ 40
$ 34
$ 35
$ 45
$ 44
$ 40
3 years
84
73
54
57
86
83
71
5 years
137
119
85
91
139
134
114
10 years
282
245
175
186
286
276
235
An investor would pay the following
Expenses on the same investment, assuming the
Same annual return and no redemption:
1 year
$ 34
$ 30
$ 24
$ 25
$ 35
$ 34
$ 30
3 years
84
73
54
57
86
83
71
5 years
137
119
85
91
139
134
114
10 years
282
245
175
186
286
276
235
The example also provides a means for the investor to compare expense
levels of funds with different fee structures over varying investment
periods. To facilitate such comparison, all funds are required
to utilize a 5.00% annual return assumption. However, each Fund's actual
return will vary and may be greater or less than 5.00%. This example should
not be considered a representation of past or future
expenses and actual expenses may be greater or less than those shown.
Purchase of Shares:
Until June 25, 1999 purchases of Class L shares by investors who were
holders of Class C shares of any Smith Barney Mutual Fund
on June 12,1998 will not be subject to the 1% front-end sales charge.
+Prospectuses Dated:
Concert Peachtree Growth Fund April 30, 1998
Smith Barney Contrarian Fund April 30, 1998
Smith Barney Government Securities Fund April 30, 1998
Smith Barney Investment Grade Bond Fund April 30, 1998
Smith Barney Hansberger Global Small Cap Value Fund October 27, 1997
Smith Barney Hansberger Global Value Fund October 27, 1997
Smith Barney Special Equities Fund April 30, 1998
*Class L shares do not have a conversion feature and, therefore, are
subject to an ongoing distribution fee. As a result, long term
shareholders of Class L shares may pay more than the economic equivalent
of the maximum front-end sales charge permitted by the National Association
of Securities Dealers, Inc.
** Other expenses have been estimated based upon the expenses each of the
respective Funds expected to incur during the fiscal year ended April 30,
1998.
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