<PAGE>
[LOGO] SMITH BARNEY
MUTUAL FUNDS
P R O S P E C T U S
Premier Selections
All Cap Growth
Fund
Premier Selections
Global Growth Fund
Class A, B, L and Y Shares
- -----------------------------------------------------------------
May 24, 2000
The Securities and Exchange Commission has not approved or
disapproved these securities or determined whether this prospectus
is accurate or complete. Any statement to the contrary is a crime.
<PAGE>
Contents
All Cap Growth Fund......................................................... 2
Investments, risks and performance........................................ 2
More on the fund's investments............................................ 9
Global Growth Fund.......................................................... 10
Investments, risks and performance........................................ 10
More on the fund's investments............................................ 16
Management.................................................................. 18
Subscription offering period................................................ 20
Choosing a class of shares to buy........................................... 21
Comparing the funds' classes................................................ 22
Sales charges............................................................... 23
More about deferred sales charges........................................... 25
Buying shares............................................................... 26
Exchanging shares........................................................... 27
Redeeming shares............................................................ 29
Other things to know about share transactions............................... 31
Salomon Smith Barney Retirement Programs.................................... 33
Dividends, distributions, and taxes......................................... 34
Share price................................................................. 35
Both funds are separate series of Smith Barney Investment Funds Inc., a
Maryland Corporation
You should know: An investment in a fund is not a bank deposit and is not
insured or guaranteed by the FDIC or any other government agency.
Smith Barney Mutual Funds
1
<PAGE>
Premier Selections All Cap Growth Fund
Investments, risks and performance
The Premier Selections All Cap Growth Fund is made up of a Large Cap Growth
segment, Mid Cap Growth segment and a Small Cap Growth segment (collectively
the "All Cap Growth Fund").
Investment objective
Long-term capital growth.
Principal investment strategies
Key investments
Large Cap Growth segment This segment invests primarily in equity securities of
companies with large market capitalizations. Large capitalization companies are
those whose market capitalization is within the market capitalization range of
companies in the Russell 1000 Growth Index at the time of this segment's
investment. Equity securities include U.S. exchange-traded and over-the-counter
common stocks, debt securities convertible into equity securities, and warrants
and rights relating to equity securities.
Mid Cap Growth segment This segment invests primarily in equity securities of
medium sized companies. Medium sized companies are those whose market capital-
ization is within the market capitalization range of companies in the S&P 400
MidCap Index (the "Index") at the time of this segment's investment. The size
of the companies in the Index changes with market conditions and the composi-
tion of the Index. Equity securities include exchange traded and over-the-
counter common stocks, preferred stocks, debt securities convertible into
equity securities and warrants and rights relating to equity securities.
Small Cap Growth segment This segment invests primarily in equity securities of
companies that possess a market capitalization within the market capitalization
range of companies in the Russell 2000 Growth Index (the "Index") at the time
of this segment's investment. The size of the companies in the Index changes
with market conditions and the composition of the Index. Equity securities
include exchange-traded and over-the-counter common stocks, preferred stocks,
debt securities convertible into equity securities and warrants and rights
relating to equity securities.
All segments
Foreign investments The All Cap Growth Fund may invest up to 25% of its assets
(at the time of investment) in foreign securities. The All Cap Growth
Premier Selections Fund
2
<PAGE>
Fund may invest directly in foreign issuers or invest in depositary receipts.
The All Cap Growth Fund's investments in securities of foreign issuers involve
greater risk than investments in securities of U.S. issuers. Because the value
of a depositary receipt is dependent upon the market price of an underlying
foreign security, depositary receipts are subject to most of the risks associ-
ated with investing in foreign securities directly. Foreign countries generally
have markets that are less liquid and more volatile than markets in the U.S. In
some foreign countries, less information is available about foreign issuers and
markets because of less rigorous accounting and regulatory standards than in
the U.S. Currency fluctuations could erase investment gains or add to invest-
ment losses.
Selection process The All Cap Growth Fund's strategy is to combine the efforts
of three segment managers and to invest in the most attractive stock selections
in the opinion of each segment manager. Each segment manager builds a portfolio
of stocks which he believes will offer superior long-term capital growth
potential. The target allocations are 40% to the Large Cap Growth segment and
30% to each of the Mid Cap and Small Cap Growth segments. In connection with
the execution of purchases and sales, each segment manager may hold temporarily
more or fewer securities than represented by its designated segment of the All
Cap Growth Fund's assets. The size of the All Cap Growth Fund's position in any
particular security will be determined by SSB Citi Fund Management LLC
(successor to SSBC Fund Management Inc.) (the "Manager") based on the
recommendation of the segment managers.
In order to maintain approximately the target allocations of the All Cap Growth
Fund's assets among the three segment managers, the Manager will:
. Divide all daily cash inflows (purchases and reinvested distributions) and
outflows (redemptions and expense items) among the three segment managers
. Rebalance the allocation of securities in the All Cap Growth Fund's portfolio
at any time the percentage of the All Cap Growth Fund's portfolio invested in
any of Large Cap, Mid Cap or Small Cap Growth segment's securities diverges
by at least 10% from the target allocation for a period of more than 10 days
Smith Barney Mutual Funds
3
<PAGE>
As a consequence of its efforts to maintain assets at targeted percentages, the
Manager will allocate assets and rebalance when necessary by (1) allocating
cash inflow to portfolio segments that are below their targeted percentages, or
(2) by selling securities in a portfolio segment that exceeds its targeted per-
centage with proceeds reallocated to a portfolio segment below its targeted
percentage. Reallocations may result in early recognition of taxable gains and
in additional transaction costs to the extent that the sales of securities as
part of these reallocations result in higher portfolio turnover. In addition,
if one segment manager buys a security during a time frame when the other seg-
ment manager sells it, the net position of the All Cap Growth Fund in the secu-
rity may be approximately the same as it would have been with a single segment
manager and no such sale and purchase. The Manager will consider these costs in
determining the allocation and reallocation of assets. Where possible, in these
instances, the Manager will seek to avoid transaction costs.
Large Cap Growth segment The Large Cap Growth segment manager emphasizes indi-
vidual security selection while diversifying this segment of the All Cap Growth
Fund's investments across industries, which may help to reduce risk. The Large
Cap Growth segment manager attempts to identify established large capitaliza-
tion companies with the highest growth potential. The Large Cap Growth segment
manager then analyzes each company in detail, ranking its management, strategy
and competitive market position. Finally, the Large Cap Growth segment manager
attempts to identify the best values available among the growth companies iden-
tified.
In selecting individual companies for investment, the Large Cap Growth segment
manager considers:
. Favorable earnings prospects
. Technological innovation
. Industry dominance
. Competitive products and services
. Global scope
. Long term operating history
. Consistent and sustainable long-term growth in dividends and earnings per
share
. Strong cash flow
. High return on equity
. Strong financial condition
. Experienced and effective management
Premier Selections Fund
4
<PAGE>
Mid Cap Growth segment The Mid Cap Growth segment manager focuses on medium
capitalization companies that exhibit attractive growth characteristics. The
Mid Cap Growth segment manager selects individual "growth" stocks for invest-
ment in two ways: by identifying those companies which exhibit the most favora-
ble growth prospects and by identifying those companies which have favorable
valuations relative to their growth characteristics. This strategy is commonly
known as "growth at a reasonable price" and offers investors style diversifica-
tion. In selecting individual companies for investment, the Mid Cap Growth seg-
ment manager considers:
. Growth characteristics, including high historic growth rates and high relative
growth compared with companies in the same industry or sector
. Increasing profits and sales
. Competitive advantages that could be more fully exploited by a company
. Skilled management committed to long-term growth
. Potential for a long-term investment by this segment of the All Cap Growth
Fund
The Mid Cap Growth segment manager uses fundamental research to find stocks
with strong growth potential and also uses quantitative analysis to determine
whether these stocks are relatively undervalued or overvalued compared to
stocks with similar fundamental characteristics. The Mid Cap Growth segment
manager's valuations determine whether and when this segment of the All Cap
Growth Fund will purchase or sell the stocks it identifies through fundamental
research.
Small Cap Growth segment The Small Cap Growth segment manager focuses on small
capitalization companies that exhibit attractive growth characteristics. The
Small Cap Growth segment manager selects individual stocks for investment by
identifying those companies which exhibit the most favorable growth prospects.
In selecting individual companies for investment, the Small Cap Growth segment
manager considers:
. Growth characteristics, including high historic growth rates and high fore-
casted growth of sales and profits and a high return on equity
. Innovative companies at the cutting edge of positive and dynamic demographic
and economic trends
. Products and services that give the company a competitive advantage
. Skilled management committed to long-term growth
. Potential for a long-term investment by this segment of the All Cap Growth
Fund
The Small Cap Growth segment manager uses a disciplined investment process to
identify small financially sound growth companies that exhibit the potential to
become much larger and more successful. Elements of this process include funda-
mental research, evaluation of key management and screening techniques.
Smith Barney Mutual Funds
5
<PAGE>
Principal risks of investing in the All Cap Growth Fund
Investors could lose money on their investments in the All Cap Growth Fund, or
the All Cap Growth Fund may not perform as well as other investments, if:
. U.S. stock markets decline, or perform poorly relative to other types of
investments
. An adverse company specific event, such as an unfavorable earnings report,
negatively affects the stock price of a company in which the All Cap Growth
Fund invests
. Large capitalization stock falls out of favor with investors
. The segment manager's judgement about the attractiveness, growth prospects or
potential appreciation of a particular stock proves to be incorrect
. Medium capitalization stocks fall out of favor with investors. Because 30% of
the All Cap Growth Fund's assets are invested primarily in medium capitaliza-
tion companies, an investment in the All Cap Growth Fund may be more volatile
and more susceptible to loss than an investment in a fund which invests pri-
marily in large capitalization companies. Medium capitalization companies may
have more limited product lines, markets and financial resources than large
capitalization companies. They may have shorter operating histories and less
mature businesses, although they generally have more established businesses
than small capitalization companies. The prices of medium capitalization com-
pany stocks tend to be more volatile than the prices of large capitalization
company stocks.
. Key economic trends become materially unfavorable, such as rising interest
rates and levels of inflation or slowdown of economic growth
. Small capitalization stocks underperform mid capitalization and large capital-
ization stocks. Because 30% of the All Cap Growth Fund's assets are invested
primarily in small capitalization growth companies, an investment in the All
Cap Growth Fund may be more volatile and more susceptible to loss than an
investment in a fund which invests primarily in large capitalization compa-
nies. Small capitalization companies may have more limited product lines,
markets and financial resources than large capitalization companies. They may
have shorter operating histories and less mature businesses. In addition,
small capitalization company stocks may be less liquid than large capitaliza-
tion company stocks.
Who may want to invest The All Cap Growth Fund may be an appropriate investment
if you:
. Are seeking to participate in the long-term growth potential of the U.S. stock
market
. Are looking for an investment with potentially greater return but higher risk
than fixed income investments
. Are willing to accept the risks of the stock market
Premier Selections Fund
6
<PAGE>
. Are looking for an investment with potentially greater return but higher risk
than a fund that invests primarily in large cap companies
. Are seeking to participate in the long-term potential of small capitalization
growth companies
. Are willing to accept the special risks and potential long-term rewards of
investing in smaller companies with limited track records
. Are seeking diversification
Performance
Because this All Cap Growth Fund was added as a series to Smith Barney Invest-
ment Funds Inc. this year, the All Cap Growth Fund does not yet have a suffi-
cient operating history to generate the performance information which other
Smith Barney funds show in bar and table form in this location of the prospec-
tus.
Fee table
This table sets forth the fees and expenses you will pay if you invest in All
Cap Growth Fund shares. Annual All Cap Growth Fund operating expense figures
are based on estimated expenses for the fiscal period ending April 30, 2001.
Shareholder fees
<TABLE>
<CAPTION>
(fees paid directly from your investment) Class A Class B Class L Class Y
<S> <C> <C> <C> <C>
Maximum sales charge (load) imposed on
purchases
(as a % of offering price) 5.00% None 1.00% None
Maximum deferred sales charge (load) (as a %
of the lower of net asset value at purchase or
redemption) None* 5.00% 1.00% None
Annual All Cap Growth Fund operating expenses
<CAPTION>
(expenses deducted from fund assets) Class A Class B Class L Class Y
<S> <C> <C> <C> <C>
Management fee 0.75% 0.75% 0.75% 0.75%
Distribution and service (12b-1) fees 0.25% 1.00% 1.00% None
Other expenses** 0.20% 0.20% 0.20% 0.10%
----- ----- ----- -----
Total annual All Cap Growth Fund operating
expenses 1.20% 1.95% 1.95% 0.85%
</TABLE>
*You may buy Class A shares in amounts of $1,000,000 or more at net asset value
(without an initial sales charge) but if you redeem those shares within 12
months of their purchase, you will pay a deferred sales charge of 1.00%.
**The amounts set forth in "Other expenses" have been estimated based on
expenses the All Cap Growth Fund expects to incur during its first full fiscal
year.
Smith Barney Mutual Funds
7
<PAGE>
Example
This example helps you compare the costs of investing in the All Cap Growth
Fund with the costs of investing in other mutual funds. Your actual costs may
be higher or lower. The example assumes:
. You invest $10,000 in the All Cap Growth Fund for the period shown
. Your investment has a 5% return each year
. You reinvest all distributions and dividends without a sales charge
. The All Cap Growth Fund's operating expenses remain the same
Number of years you own your shares
<TABLE>
<CAPTION>
1 year 3 years
<S> <C> <C>
Class A (with or without redemption) $616 $862
Class B (redemption at end of period) $698 $912
Class B (no redemption) $198 $612
Class L (redemption at end of period) $396 $706
Class L (no redemption) $296 $706
Class Y (with or without redemption) $ 87 $ 27
</TABLE>
Premier Selections Fund
8
<PAGE>
More on the All Cap Growth Fund's investments
All Segments
Short-term debt securities While the All Cap Growth Fund intends to be substan-
tially fully invested in equity securities, the All Cap Growth Fund may main-
tain a portion of its assets (normally not more than 10%) in money market
instruments and/or cash to pay expenses and meet redemption requests. General-
ly, the value of these fixed income obligations will decline if interest rates
rise, the credit rating of the security is downgraded or the issuer defaults on
its obligation to pay principal or interest.
Derivatives and hedging techniques The All Cap Growth Fund may, but need not,
use derivative contracts, such as futures and options on securities, securities
indices or currencies; options on these futures; forward currency contracts;
and interest rate or currency swaps for any of the following purposes:
. To hedge against the economic impact of adverse changes in the market value of
its securities, because of changes in stock market prices, currency exchange
rates or interest rates.
. As a substitute for buying or selling securities.
A derivative contract will obligate or entitle the All Cap Growth Fund to
deliver or receive an asset or cash payment based on the change in value of one
or more securities, currencies or indices. Even a small investment in deriva-
tive contracts can have a big impact on the All Cap Growth Fund's stock market,
currency and interest rate exposure. Therefore, using derivatives can dispro-
portionately increase losses and reduce opportunities for gains when stock
prices, currency rates or interest rates are changing. The All Cap Growth Fund
may not fully benefit from or may lose money on derivatives if changes in their
value do not correspond accurately to changes in the value of the All Cap
Growth Fund's holdings.
The other parties to certain derivative contracts present the same types of
credit risk as issuers of fixed income securities. Derivatives can also make
the All Cap Growth Fund less liquid and harder to value, especially in declin-
ing markets.
Defensive Investing The All Cap Growth Fund may depart from its principal
investment strategies in response to adverse market, economic or political con-
ditions by taking temporary defensive positions in all types of money market
instruments. If the All Cap Growth Fund takes a temporary defensive position,
it may be unable to achieve its investment goal.
Master/feeder option The All Cap Growth Fund may in the future seek to achieve
its investment objective by investing all of its net assets in another invest-
ment company having the same investment objective and substantially the same
investment policies and restrictions as those applicable to the All Cap Growth
Fund. Shareholders of the All Cap Growth Fund will be given at least 30 days
prior notice of any such investment.
Smith Barney Mutual Funds
9
<PAGE>
Premier Selections Global Growth Fund
Investments, risks and performance
The Premier Selections Global Growth Fund is made up of a U.S. Equity segment
and an International Equity segment (collectively the "Global Growth Fund")
(the All Cap Growth Fund and Global Growth Fund, are sometimes referred to
individually as a "fund" or collectively as the "funds").
Investment objective
Long term capital growth.
Principal investment strategies
Key investments
U.S. Equity segment This segment invests primarily in common stocks of compa-
nies that the manager believes are experiencing, or will experience, growth in
earnings that exceeds the average rate of earnings growth of the companies
which comprise the Russell 3000 Index. This segment of the Global Growth Fund
may invest in the securities of large, well-known companies which offer pros-
pects of long-term earnings growth. However, because higher earnings growth
rates are often achieved by small to medium-sized companies, a significant por-
tion of this segment's assets are invested in the securities of such companies.
International Equity segment This segment invests primarily in equity securi-
ties of foreign companies. Equity securities include exchange traded and over-
the-counter common stocks and preferred shares, debt securities convertible
into equity securities, and warrants and rights relating to equity securities.
The Global Growth Fund may invest up to 15% of its assets (at the time of
investment) in issuers located or doing business in emerging markets. Emerging
market investments offer the potential of significant gains but also involve
greater risks than investing in more developed countries. Political or economic
instability, lack of market liquidity and government actions such as currency
controls or seizure of private businesses or property are more likely in emerg-
ing markets.
Selection process The Global Growth Fund's strategy is to combine the efforts
of two segment managers and to invest in the most attractive stock selections
in the opinion of each segment manager. Each segment manager builds a portfolio
of stocks which he believes will offer superior long-term capital growth poten-
tial. The target allocations are 50% to the U.S. Equity segment and 50% to the
International Equity segment. In connection with the execution of purchases and
sales, each segment manager may hold temporarily more or fewer securities than
represented by one-half of the
Premier Selections Fund
10
<PAGE>
Global Growth Fund's assets. The size of the Global Growth Fund's position in
any particular security will be determined by SSB Citi Fund Management LLC (the
"Manager") based on the recommendation of the segment managers.
In order to maintain an approximately equal division of all of the Global
Growth Fund's assets between the two segment managers, the Manager will:
. Divide all daily cash inflows (purchases and reinvested distributions) and
outflows (redemptions and expense items) between the two segment managers
. Rebalance the allocation of securities in the Global Growth Fund's portfolio
whenever the percentage of the Global Growth Fund's portfolio invested in
either the U.S. or International Equity segment's securities equals or
exceeds 60% of the Global Growth Fund's total assets invested in either seg-
ment for a period of more than 10 days
As a consequence of its efforts to maintain assets at targeted percentages, the
Manager will allocate assets and rebalance when necessary by (1) allocating
cash inflow to portfolio segments that are below their targeted percentages, or
(2) by selling securities in a portfolio segment that exceeds its targeted per-
centage with proceeds reallocated to a portfolio segment below its targeted
percentage. Reallocations may result in early recognition of taxable gains and
in additional transaction costs to the extent that the sales of securities as
part of these reallocations result in higher portfolio turnover. In addition,
if one segment manager buys a security during a time frame when the other seg-
ment manager sells it, the net position of the Global Growth Fund in the secu-
rity may be approximately the same as it would have been with a single segment
manager and no such sale and purchase. The Manager will consider these costs in
determining the allocation and reallocation of assets. Where possible, in these
instances, the Manager will seek to avoid transaction costs.
U.S. Equity segment The U.S. Equity segment manager emphasizes individual secu-
rity selection while diversifying across industries, which may help to reduce
risk. The U.S. Equity segment manager focuses primarily, but not exclusively,
on companies that have passed their "start-up" phase and show positive earnings
and the prospect of achieving significant profit gains beginning in the two to
three years after this acquisition of their stocks. When evaluating an individ-
ual stock, the U.S. Equity segment manager considers whether the company may
benefit from:
.new technologies, products or services
.new cost reducing measures
.changes in management
.favorable changes in government regulations
Smith Barney Mutual Funds
11
<PAGE>
International Equity segment The International Equity segment manager empha-
sizes individual security selection while diversifying across regions and coun-
tries which can help to reduce risk. While the International Equity segment
manager selects investments primarily for their capital appreciation potential,
some investments have an income component as well. Companies may have large-,
mid- or small-size market capitalizations and may operate in any market sector.
Market conditions around the world change constantly as does the location of
potential investment opportunities. Depending on the International Equity seg-
ment manager's assessment of overseas potential for long-term growth, this seg-
ment's emphasis among foreign markets (including emerging markets) and types of
issuers may vary.
In selecting individual companies for investment, the International Equity seg-
ment manager looks for the following:
. Above average earnings growth
. High relative return on invested capital
. Experienced and effective management
. Effective research, product development and marketing
. Competitive advantages
. Strong financial condition or stable or improving credit quality
By spreading the International Equity segment of the Global Growth Fund's
investments across many international markets, the International Equity segment
manager seeks to reduce volatility compared to an investment in a single
region. Unlike global mutual funds which may allocate a substantial segment of
assets to the U.S. markets, this portion of the Global Growth Fund invests sub-
stantially all of its assets in countries outside of the U.S.
In allocating assets among countries and regions, the economic and political
factors the segment manager evaluates include:
. Low or decelerating inflation which creates a favorable environment for secu-
rities markets
. Stable governments with policies that encourage economic growth, equity
investment and development of securities markets
. Currency stability
. The range of individual investment opportunities
Premier Selections Fund
12
<PAGE>
Principal risks of investing in the Global Growth Fund
Investors could lose money on their investments, if:
. Stock prices decline generally
. Small or medium capitalization companies fall out of favor with investors
. The segment manager's judgment about the attractiveness, growth prospects or
potential appreciation of a particular stock proves to be incorrect
. A particular product or service developed by a company in which the Global
Growth Fund invests is unsuccessful, the company does not meet earnings
expectations or other events depress the value of the company's stock
Compared to mutual funds that focus only on large capitalization companies, the
Global Growth Fund's share price may be more volatile because it invests a sig-
nificant portion of its assets in small and medium capitalization companies.
Compared to large capitalization companies, small and medium capitalization
companies are likely to have:
. More limited product lines
. Fewer capital resources
. More limited management depth
Further, securities of small and medium capitalization companies are more
likely to:
. Experience sharper swings in market values
. Be harder to sell at times and at prices the manager believes appropriate
. Offer greater potential for gains and losses
Investing in foreign securities can bring added benefits, but it may also
involve additional risks. Investors could lose money on their investment if:
. Foreign securities prices decline
. Adverse governmental action or political, economic or market instability
affects a foreign country or region
. The currency in which a security is priced declines in value relative to the
U.S. dollar
. The segment manager's judgment about the attractiveness, value or potential
appreciation of a particular security proves to be incorrect
Smith Barney Mutual Funds
13
<PAGE>
Who may want to invest The Global Growth Fund may be an appropriate investment
if you:
. Are seeking to participate in the long-term growth potential of small and
medium capitalization companies and in the long-term growth potential of
international markets
. Currently have exposure to the stocks commonly held by large capitalization
and value oriented mutual funds and wish to broaden your investment portfolio
. Are willing to accept the risks of the stock market and the special risks and
potential long-term rewards of investing in smaller companies with more lim-
ited track records and in foreign securities, including emerging market secu-
rities
Performance
Because Global Growth Fund was added as a series to Smith Barney Investment
Funds Inc. this year, the Global Growth Fund does not yet have a sufficient
operating history to generate the performance information which other Smith
Barney funds show in bar and table form in this location of the prospectus.
Fee table
This table sets forth the fees and expenses you will pay if you invest in
Global Growth Fund shares. Annual Global Growth Fund operating expense figures
are based on estimated expenses for the fiscal period ending April 30, 2001.
Shareholder fees
<TABLE>
<CAPTION>
(fees paid directly from your investment) Class A Class B Class L Class Y
<S> <C> <C> <C> <C>
Maximum sales charge (load) imposed on
purchases
(as a % of offering price) 5.00% None 1.00% None
Maximum deferred sales charge (load) (as a %
of the lower of net asset value at purchase or
redemption) None* 5.00% 1.00% None
</TABLE>
*You may buy Class A shares in amounts of $1,000,000 or more at net asset value
(without an initial sales charge) but if you redeem those shares within 12
months of their purchase, you will pay a deferred sales charge of 1.00%.
Premier Selections Fund
14
<PAGE>
Annual Global Growth Fund operating expenses
<TABLE>
<CAPTION>
(expenses deducted from fund assets) Class A Class B Class L Class Y
<S> <C> <C> <C> <C>
Management fee 0.80% 0.80% 0.80% 0.80%
Distribution and service (12b-1) fees 0.25% 1.00% 1.00% None
Other expenses** 0.25% 0.25% 0.25% 0.15%
----- ----- ----- -----
Total annual Global Growth Fund operating
expenses 1.30% 2.05% 2.05% 0.95%
</TABLE>
**The amounts set forth in "Other expenses" have been estimated based on
expenses the Global Growth Fund expects to incur during its first full fiscal
year.
Example
This example helps you compare the costs of investing in the Global Growth Fund
with the costs of investing in other mutual funds. Your actual costs may be
higher or lower. The example assumes:
. You invest $10,000 in the Global Growth Fund for the period shown
. Your investment has a 5% return each year
. You reinvest all distributions and dividends without a sales charge
. The Global Growth Fund's operating expenses remain the same
Number of years you own your shares
<TABLE>
<CAPTION>
1 year 3 years
<S> <C> <C>
Class A (with or without redemption) $626 $891
Class B (redemption at end of period) $708 $943
Class B (no redemption) $208 $643
Class L (redemption at end of period) $406 $736
Class L (no redemption) $306 $736
Class Y (with or without redemption) $ 97 $303
</TABLE>
Smith Barney Mutual Funds
15
<PAGE>
More on the fund's investments
International Equity segment
Currency transactions The Global Growth Fund may enter into transactions to buy
or sell currencies at a future date, which may be a few days or a number of
months. The Global Growth Fund may enter into these forward currency contracts
to:
. Settle transactions in securities quoted in foreign currencies
. Attempt to protect against the economic impact of adverse changes in the
value of the U.S. dollar.
. Hedge currencies
The Global Growth Fund may not fully benefit from or may lose money on forward
currency transactions if changes in currency rates do not occur as anticipated
or do not correspond accurately to changes in the value of the Global Growth
Fund's holdings.
Debt securities This segment may invest up to 20% of its assets in debt securi-
ties of foreign corporate and governmental issuers as well as U.S. Government
securities and money market obligations of U.S. issuers. The Global Growth Fund
may invest in all types of debt securities of any maturity or credit quality.
These securities may be denominated in U.S. dollars or other currencies and may
pay fixed or variable rates of interest. The value of debt securities will go
down if interest rates go up, or the credit rating of the security is down-
graded or the issuer defaults on its obligation to pay principal or interest.
These risks are greater for debt securities rated below investment grade.
Both segments
Derivatives and hedging techniques The Global Growth Fund may, but need not,
use derivative contracts, such as futures and options on securities, securities
indices or currencies; options on these futures; forward currency contracts;
and interest rate or currency swaps for any of the following purposes:
. To hedge against the economic impact of adverse changes in the market value of
its securities, because of changes in stock market prices, currency exchange
rates or interest rates.
. As a substitute for buying or selling securities.
A derivative contract will obligate or entitle the Global Growth Fund to
deliver or receive an asset or cash payment based on the change in value of
Premier Selections Fund
16
<PAGE>
one or more securities, currencies or indices. Even a small investment in
derivative contracts can have a big impact on the Global Growth Fund's stock
market, currency and interest rate exposure. Therefore, using derivatives can
disproportionately increase losses and reduce opportunities for gains when
stock prices, currency rates or interest rates are changing. The Global Growth
Fund may not fully benefit from or may lose money on derivatives if changes in
their value do not correspond accurately to changes in the value of the Global
Growth Fund's holdings.
Defensive investing The Global Growth Fund may depart from its principal
investment strategies in response to adverse market, economic or political con-
ditions by taking temporary defensive positions in all types of money market
and short-term debt securities. If the Global Growth Fund takes a temporary
defensive position, it may be unable to achieve its investment goal.
Master/feeder option The Global Growth Fund may in the future seek to achieve
its investment objective by investing all of its net assets in another invest-
ment company having the same investment objective and substantially the same
investment policies and restrictions as those applicable to the Global Growth
Fund.
Smith Barney Mutual Funds
17
<PAGE>
Management
Manager The funds' Manager is SSB Citi Fund Management LLC, an affiliate of
Salomon Smith Barney Inc. The Manager's address is 388 Greenwich Street, New
York, New York 10013. The Manager selects the funds' segment managers and
oversees the funds operations. The Manager and Salomon Smith Barney are subsid-
iaries of Citigroup Inc. Citigroup businesses produce a broad range of finan-
cial services--asset management, banking and consumer finance, credit and
charge cards, insurance, investments, investment banking and trading--and use
diverse channels to make them available to consumer and corporate customers
around the world.
Alan Blake, investment officer of the Manager and managing director of Salomon
Smith Barney, is the portfolio manager responsible for the day-to-day manage-
ment of the Large Cap Growth segment of the All Cap Growth Fund. Mr. Blake has
more than 20 years of securities business experience.
Lawrence Weissman, investment officer of the Manager and managing director of
Salomon Smith Barney, is the portfolio manager responsible for the day- to-day
management of the Mid Cap Growth segment of the All Cap Growth Fund. Mr.
Weissman has more than 14 years of securities business experience.
Timothy Woods, CFA, investment officer of the Manager and managing director of
Salomon Smith Barney, is the portfolio manager responsible for the day-to-day
management of the Small Cap Growth segment of the All Cap Growth Fund. Mr.
Woods has more than 15 years of securities business experience.
Richard Freeman, CFA, investment officer of the Manager and managing director
of Salomon Smith Barney, is the portfolio manager responsible for the day-to-
day management of the US Equity segment of the Global Growth Fund. Mr. Freeman
has more than 24 years of securities business experience.
Jeffrey Russell, CFA, investment officer of the Manager and managing director
of Salomon Smith Barney, is the portfolio manager responsible for the day-to-
day management of the International Equity segment of the Global Growth Fund.
Mr. Russell has 18 years of securities business experience.
The Manager will monitor each fund's investments to ensure that each fund
complies with its investment policies. The Manager will rebalance the alloca-
tion of securities in each fund's portfolio at any time in which the percentage
of a fund's portfolio invested in a segment's securities deviates
Premier Selections Fund
18
<PAGE>
by at least 10% from a segment's target allocation for a period of more than 10
days. The Manager will also monitor each fund's portfolio to ensure that no
more than 25% of the fund's assets are concentrated in the securities of compa-
nies in the same industry.
Management fees The Manager will be paid advisory fees equal to 0.75% of the
All Cap Growth Fund's average daily net assets and equal to 0.80% of the Global
Growth Fund's average daily net assets.
Distributor Each fund has entered into an agreement with CFBDS, Inc. to dis-
tribute the funds' shares. A selling group consisting of Salomon Smith Barney
and other broker-dealers sells fund shares to the public.
Distribution plan Each fund has adopted a Rule 12b-1 distribution plan for its
Class A, B and L shares. Under the plan, each fund pays distribution and/or
service fees. These fees are an ongoing expense and, over time, may cost you
more than other types of sales charges.
Transfer agent and shareholder servicing agent Citi Fiduciary Trust Company
serves as each fund's transfer agent and shareholder servicing agent (the
"transfer agent"). Pursuant to a sub-transfer agency and services agreement
with the transfer agent, PFPC Global Fund Services serves as each fund's sub-
transfer agent (the "sub-transfer agent") to render certain shareholder record
keeping and accounting services and functions.
Smith Barney Mutual Funds
19
<PAGE>
Subscription offering period
Salomon Smith Barney and other broker-dealers in the selling group will solicit
subscriptions for shares of each fund during the initial offering period, which
is scheduled to end on June 26, 2000. On the third business day after termina-
tion of the initial offering period, subscriptions for the shares will be pay-
able and shares will be issued.
Each fund will commence investment operations and suspend the offering of
shares to new investors on June 30, 2000. This suspension, which is expected to
last approximately one week, may be lengthened or shortened at the fund's dis-
cretion. During the suspension, existing shareholders of each fund may still
purchase, redeem or exchange fund shares. After the suspension, each fund will
commence a continuous offering of shares to the public. The continuous offering
period is expected to begin on or about July 5, 2000.
For more information on how to subscribe for fund shares during the subscrip-
tion offering period, please contact a Salomon Smith Barney Financial Consul-
tant.
Premier Selections Fund
20
<PAGE>
Choosing a class of shares to buy
You can choose among four classes of shares: Classes A, B, L and Y. Each class
has different sales charges and expenses, allowing you to choose the class that
best meets your needs. Which class is more beneficial to an investor depends on
the amount and intended length of the investment.
. If you plan to invest regularly or in large amounts, buying Class A shares may
help you reduce sales charges and ongoing expenses.
. For Class B shares, all of your purchase amount and, for Class L shares, more
of your purchase amount (compared to Class A shares) will be immediately
invested. This may help offset the higher expenses of Class B and Class L
shares, but only if a fund performs well.
. Class L shares have a shorter deferred sales charge period than Class B
shares. However, because Class B shares convert to Class A shares, and Class
L shares do not, Class B shares may be more attractive to long-term invest-
ors.
You may buy shares from:
. A Salomon Smith Barney Financial Consultant
. An investment dealer in the selling group or a broker that clears through Sal-
omon Smith Barney--a dealer representative
. A fund, but only if you are investing through certain qualified plans or cer-
tain dealer representatives
Investment minimums Minimum initial and additional investment amounts vary
depending on the class of shares you buy and the nature of your investment
account.
<TABLE>
<CAPTION>
Initial Additional
Classes A, B, L Class Y All Classes
<S> <C> <C> <C>
General $1,000 $15 million $50
IRAs, Self Employed Retirement Plans,
Uniform Gift to Minor Accounts $250 $15 million $50
Qualified Retirement Plans* $25 $15 million $25
Simple IRAs $1 n/a $1
Monthly Systematic Investment Plans $25 n/a $25
Quarterly Systematic Investment Plans $50 n/a $50
</TABLE>
* Qualified Retirement Plans are retirement plans qualified under Section
403(b)(7) or Section 401(a) of the Internal Revenue Code, including 401(k)
plans
Smith Barney Mutual Funds
21
<PAGE>
Comparing the funds' classes
Your Salomon Smith Barney Financial Consultant or dealer representative can
help you decide which class meets your goals. They may receive different com-
pensation depending upon which class you choose.
<TABLE>
<CAPTION>
Class A Class B Class L Class Y
<S> <C> <C> <C> <C>
Key features .Initial .No initial .Initial .No initial
sales sales sales or
charge charge charge is deferred
.You may .Deferred lower than sales
qualify sales Class A charge
for reduc- charge .Deferred .Must
tion or declines sales invest at
waiver of over time charge for least $15
initial .Converts only 1 million
sales to Class A year .Lower
charge after 8 .Does not annual
.Lower years convert to expenses
annual .Higher Class A than the
expenses annual .Higher other
than Class expenses annual classes
B and than Class expenses
Class L A than Class
A
- ------------------------------------------------------------------------
Initial sales charge Up to None 1.00% None
5.00%;
reduced for
large pur-
chases and
waived for
certain
investors.
No charge
for pur-
chases of
$1,000,000
or more
- ------------------------------------------------------------------------
Deferred sales charge 1.00% on Up to 5.00% 1.00% if None
purchases charged you redeem
of when you within 1
$1,000,000 redeem year of
or more if shares. The purchase
you redeem charge is
within 1 reduced
year of over time
purchase and there
is no
deferred
sales
charge
after 6
years
- ------------------------------------------------------------------------
Annual distribution and 0.25% of 1.00% of 1.00% of None
service fees average average average
daily net daily net daily net
assets assets assets
- ------------------------------------------------------------------------
Exchange privilege* Class A Class B Class L Class Y
shares of shares of shares of shares of
most Smith most Smith most Smith most Smith
Barney Barney Barney Barney
funds funds funds funds
- ------------------------------------------------------------------------
</TABLE>
*Ask your Salomon Smith Barney Financial Consultant or dealer representative or
visit the web site for the Smith Barney funds available for exchange.
Premier Selections Fund
22
<PAGE>
Sales charges
Class A shares
You buy Class A shares at the offering price, which is the net asset value plus
a sales charge. You pay a lower sales charge as the size of your investment
increases to certain levels called breakpoints. You do not pay a sales charge
on each fund's distributions or dividends you reinvest in additional Class A
shares.
<TABLE>
<CAPTION>
Sales Charge as a % of
Offering Net amount
Amount of purchase price (%) invested (%)
<S> <C> <C>
Less than $25,000 5.00 5.26
$25,000 but less than $50,000 4.25 4.44
$50,000 but less than $100,000 3.75 3.90
$100,000 but less than $250,000 3.25 3.36
$250,000 but less than $500,000 2.75 2.83
$500,000 but less than $1,000,000 2.00 2.04
$1,000,000 or more 0 0
</TABLE>
Investments of $1,000,000 or more You do not pay an initial sales charge when
you buy $1,000,000 or more of Class A shares. However, if you redeem these
Class A shares within one year of purchase, you will pay a deferred sales
charge of 1.00%.
Qualifying for a reduced Class A sales charge There are several ways you can
combine multiple purchases of Class A shares of Smith Barney funds to take
advantage of the breakpoints in the sales charge schedule.
. Accumulation privilege - lets you combine the current value of Class A shares
owned
. by you, or
. by members of your immediate family
and for which a sales charge was paid, with the amount of your next purchase
of Class A shares for purposes of calculating the initial sales charge. Cer-
tain trustees and fiduciaries may be entitled to combine accounts in deter-
mining their sales charge.
. Letter of intent - lets you purchase Class A shares of the funds and other
Smith Barney funds over a 13-month period and pay the same sales
Smith Barney Mutual Funds
23
<PAGE>
charge, if any, as if all shares had been purchased at once. You may include
purchases on which you paid a sales charge made within 90 days before you
sign the letter.
Waivers for certain Class A investors Class A initial sales charges are waived
for certain types of investors, including:
. Employees of members of the NASD
. Clients of newly employed Salomon Smith Barney Financial Consultants, if cer-
tain conditions are met
. Investors who redeemed Class A shares of a Smith Barney fund in the past 60
days, if the investor's Salomon Smith Barney Financial Consultant or dealer
representative is notified
If you want to learn about additional waivers of Class A initial sales charges,
contact your Salomon Smith Barney Financial Consultant or dealer representative
or consult the Statement of Additional Information ("SAI").
Class B shares
You buy Class B shares at net asset value without paying an initial sales
charge. However, if you redeem your Class B shares within six years of pur-
chase, you will pay a deferred sales charge. The deferred sales charge
decreases as the number of years since your purchase increases.
<TABLE>
<CAPTION>
6th through
Year after purchase 1st 2nd 3rd 4th 5th 8th
<S> <C> <C> <C> <C> <C> <C>
Deferred sales charge 5% 4% 3% 2% 1% 0%
</TABLE>
Class B conversion After 8 years, Class B shares automatically convert into
Class A shares. This helps you because Class A shares have lower annual
expenses. Your Class B shares will convert to Class A shares as follows:
<TABLE>
<CAPTION>
Shares issued: Shares issued: Shares issued:
At initial purchase On reinvestment of Upon exchange from
dividends and another Smith
distributions Barney fund
<S> <C> <C>
Eight years after the date of purchase In same proportion On the date the
as the number of shares originally
Class B shares acquired would
converting is to have converted
total Class B into Class A
shares you own shares
(excluding shares
issued as a
dividend)
</TABLE>
Premier Selections Fund
24
<PAGE>
Class L shares
You buy Class L shares at the offering price, which is the net asset value plus
a sales charge of 1.00% (1.01% of the net amount invested). In addition, if you
redeem your Class L shares within one year of purchase, you will pay a deferred
sales charge of 1.00%. Until June 22, 2001, purchases of Class L shares by
investors who were holders of Class C shares of other Smith Barney mutual funds
on June 12, 1998 will not be subject to the 1.00% initial sales charge.
Class Y shares
You buy Class Y shares at net asset value with no initial sales charge and no
deferred sales charge when you redeem. You must meet the $15,000,000 initial
investment requirement. You can use a letter of intent to meet this requirement
by buying Class Y shares of a fund over a 13-month period. To qualify, you must
initially invest $5,000,000.
More about deferred sales charges
The deferred sales charge is based on the net asset value at the time of pur-
chase or redemption, whichever is less, and therefore, you do not pay a sales
charge on amounts representing appreciation or depreciation.
In addition, you do not pay a deferred sales charge on:
.Shares exchanged for shares of another Smith Barney fund
.Shares representing reinvested distributions and dividends
.Shares no longer subject to the deferred sales charge
Each time you place a request to redeem shares, a fund will first redeem any
shares in your account that are not subject to a deferred sales charge and then
the shares in your account that have been held the longest.
If you redeemed shares of a Smith Barney fund in the past 60 days and paid a
deferred sales charge, you may buy shares of a fund at the current net asset
value and be credited with the amount of the deferred sales charge, if you
notify your Salomon Smith Barney Financial Consultant or dealer representative.
Salomon Smith Barney receives deferred sales charges as partial compensation
for its expenses in selling shares, including the payment of compensation to
your Salomon Smith Barney Financial Consultant or dealer representative.
Smith Barney Mutual Funds
25
<PAGE>
Deferred sales charge waivers
The deferred sales charge for each share class will generally be waived:
.On payments made through certain systematic withdrawal plans
.On certain distributions from a retirement plan
.For involuntary redemptions of small account balances
.For 12 months following the death or disability of a shareholder
If you want to learn more about additional waivers of deferred sales charges,
contact your Salomon Smith Barney Financial Consultant or dealer representative
or consult the SAI.
Buying shares
Through a You should contact your Salomon Smith Barney Financial Con-
Salomon Smith sultant or dealer representative to open a brokerage account
Barney and make arrangements to buy shares.
Financial
Consultant or If you do not provide the following information, your order
dealer will be rejected
representative
. Class of shares being bought
. Dollar amount or number of shares being bought
You should pay for your shares through your brokerage account
no later than the third business day after you place your
order. Salomon Smith Barney or your dealer representative may
charge an annual account maintenance fee.
- --------------------------------------------------------------------------------
Through the Qualified retirement plans and certain other investors who
funds' sub- are clients of the selling group are eligible to buy shares
transfer directly from a fund.
agent
. Write the sub-transfer agent at the following address:
Smith Barney Investment Funds Inc.
(Specify fund and class of shares)
c/o PFPC Global Fund Services
P.O. Box 9699
Providence, RI 02940-9699
. Enclose a check made payable to the fund to pay for the
shares. For initial purchases, complete and send an account
application.
. For more information, call the transfer agent at 1-800-451-
2010.
Premier Selections Fund
26
<PAGE>
Through a You may authorize Salomon Smith Barney, your dealer represen-
systematic tative or the sub-transfer agent to transfer funds automati-
investment cally from a regular bank account, cash held in a Salomon
plan Smith Barney brokerage account or Smith Barney money market
fund to buy shares on a regular basis.
. Amounts transferred should be at least: $25 monthly or $50
quarterly.
. If you do not have sufficient funds in your account on a
transfer date, Salomon Smith Barney, your dealer represen-
tative or the sub-transfer agent may charge you a fee.
For more information, contact your Salomon Smith Barney
Financial Consultant, dealer representative or the transfer
agent or consult the SAI.
Exchanging shares
Smith Barney You should contact your Salomon Smith Barney Financial Con-
offers a sultant or dealer representative to exchange into other Smith
distinctive Barney funds. Be sure to read the prospectus of the Smith
family of Barney fund you are exchanging into. An exchange is a taxable
funds transaction.
tailored to
help meet the . You may exchange shares only for shares of the same class of
varying needs another Smith Barney fund. Not all Smith Barney funds offer
of both large all classes.
and small . Not all Smith Barney funds may be offered in your state of
investors residence. Contact your Salomon Smith Barney Financial Con-
sultant, dealer representative or the transfer agent for
further information.
. You must meet the minimum investment amount for each fund
with which you exchange (except systematic exchanges).
. If you hold share certificates, the sub-transfer agent must
receive the certificates endorsed for transfer or with
signed stock powers (documents transferring ownership of
certificates) before the exchange is effective.
. A fund may suspend or terminate your exchange privilege if
you engage in an excessive pattern of exchanges.
Smith Barney Mutual Funds
27
<PAGE>
Waiver of Your shares will not be subject to an initial sales charge at
additional the time of the exchange.
sales charges
Your deferred sales charge (if any) will continue to be mea-
sured from the date of your original purchase. If the fund
you exchange into has a higher deferred sales charge, you
will be subject to that charge. If you exchange at any time
into a fund with a lower charge, the sales charge will not be
reduced.
- --------------------------------------------------------------------------------
By telephone If you do not have a brokerage account, you may be eligible
to exchange shares through the transfer agent. You must com-
plete an authorization form to authorize telephone transfers.
If eligible, you may make telephone exchanges on any day the
New York Stock Exchange is open. Call the transfer agent at
1-800-451-2010 between 9:00 a.m. and 4:00 p.m. (Eastern
time).
You can make telephone exchanges only between accounts that
have identical registrations.
- --------------------------------------------------------------------------------
By mail If you do not have a Salomon Smith Barney brokerage account,
contact your dealer representative or write to the sub-trans-
fer agent at the address on the next page.
Premier Selections Fund
28
<PAGE>
Redeeming shares
Generally Contact your Salomon Smith Barney Financial Consultant or
dealer representative to redeem shares of a fund.
If you hold share certificates, the sub-transfer agent must
receive the certificates endorsed for transfer or with signed
stock powers before the redemption is effective.
If the shares are held by a fiduciary or corporation, other
documents may be required.
Your redemption proceeds will be sent within three business
days after your request is received in good order. However,
if you recently purchased your shares by check, your redemp-
tion proceeds will not be sent to you until your original
check clears, which may take up to 15 days.
If you have a Salomon Smith Barney brokerage account, your
redemption proceeds will be placed in your account and not
reinvested without your specific instruction. In other cases,
unless you direct otherwise, your redemption proceeds will be
paid by check mailed to your address of record.
- --------------------------------------------------------------------------------
By mail For accounts held directly at a fund, send written requests
to the sub-transfer agent at the following address:
Smith Barney Investment Funds Inc.
(Specify fund and class of shares)
c/o PFPC Global Fund Services
P.O. Box 9699
Providence, RI 02940-9699
Your written request must provide the following:
. Your account number
. The class of shares and the dollar amount or number of
shares to be redeemed
. Signatures of each owner exactly as the account is regis-
tered
Smith Barney Mutual Funds
29
<PAGE>
By telephone If you do not have a brokerage account, you may be eligible
to redeem shares (except those held in retirement plans) in
amounts up to $10,000 per day through the transfer agent. You
must complete an authorization form to authorize telephone
redemptions. If eligible, you may request redemptions by tel-
ephone on any day the New York Stock Exchange is open. Call
the transfer agent at 1-800-451-2010 between 9:00 a.m. and
4:00 p.m. (Eastern time).
Your redemption proceeds can be sent by check to your address
of record or by wire transfer to a bank account designated on
your authorization form. You must submit a new authorization
form to change the bank account designated to receive wire
transfers and you may be asked to provide certain other docu-
ments.
- --------------------------------------------------------------------------------
Automatic You can arrange for the automatic redemption of a portion of
cash your shares on a monthly or quarterly basis. To qualify you
withdrawal must own shares of the fund with a value of at least $10,000
plans ($5,000 for retirement plan accounts) and each automatic
redemption must be at least $50. If your shares are subject
to a deferred sales charge, the sales charge will be waived
if your automatic payments do not exceed 1% per month of the
value of your shares subject to a deferred sales charge.
The following conditions apply:
.Your shares must not be represented by certificates
.All dividends and distributions must be reinvested
For more information, contact your Salomon Smith Barney
Financial Consultant or dealer representative or consult the
SAI.
Premier Selections Fund
30
<PAGE>
Other things to know about share transactions
When you buy, exchange or redeem shares, your request must be in good order.
This means you have provided the following information, without which your
request will not be processed:
. Name of the fund
. Account number
. Class of shares being bought, exchanged or redeemed
. Dollar amount or number of shares being bought, exchanged or redeemed
. Signature of each owner exactly as the account is registered
The transfer agent will try to confirm that any telephone exchange or redemp-
tion request is genuine by recording calls, asking the caller to provide a per-
sonal identification number for the account, sending you a written confirmation
or requiring other confirmation procedures from time to time.
Signature guarantees To be in good order, your redemption request must include
a signature guarantee if you:
. Are redeeming over $10,000 of shares
. Are sending signed share certificates or stock powers to the sub-transfer
agent
. Instruct the sub-transfer agent to mail the check to an address different from
the one on your account
. Changed your account registration
. Want the check paid to someone other than the account owner(s)
. Are transferring the redemption proceeds to an account with a different regis-
tration
You can obtain a signature guarantee from most banks, dealers, brokers, credit
unions and federal savings and loan institutions, but not from a notary public.
Each fund has the right to:
. Suspend the offering of shares
. Waive or change minimum and additional investment amounts
. Reject any purchase or exchange order
. Change, revoke or suspend the exchange privilege
. Suspend telephone transactions
Smith Barney Mutual Funds
31
<PAGE>
. Suspend or postpone redemptions of shares on any day when trading on the New
York Stock Exchange is restricted, or as otherwise permitted by the Securi-
ties and Exchange Commission
. Pay redemption proceeds by giving you securities. You may pay transaction
costs to dispose of the securities
Small account balances If your account falls below $500 because of a redemption
of fund shares, a fund may ask you to bring your account up to $500. If your
account is still below $500 after 60 days, the fund may close your account and
send you the redemption proceeds.
Excessive exchange transactions The Manager may determine that a pattern of
frequent exchanges is detrimental to a fund's performance and other sharehold-
ers. Each fund may limit additional purchases and/or exchanges by the share-
holder.
Share certificates The funds do not issue share certificates unless a written
request signed by all registered owners is made to the sub-transfer agent. If
you hold share certificates it will take longer to exchange or redeem shares.
Premier Selections Fund
32
<PAGE>
Salomon Smith Barney Retirement Programs
You may be eligible to participate in a retirement program sponsored by Salomon
Smith Barney or one of its affiliates. The funds offer Class A shares at net
asset value to participating plans under the programs. You can meet minimum
investment and exchange amounts, if any, by combining the plan's investments in
any of the Smith Barney mutual funds.
There are no sales charges when you buy or sell shares and the class of shares
you may purchase depends on the amount of your initial investment and/or the
date your account is opened. Once a class of shares is chosen, all additional
purchases must be of the same class.
. For plans opened on or after March 1, 2000 that are not plans for which
Paychex Inc. or an affiliate provides administrative services ("Paychex
plan"), Class A shares may be purchased regardless of the amount invested.
. For plans opened prior to March 1, 2000 and for Paychex plans, the class of
shares you may purchase depends on the amount of your initial investment:
. Class A shares may be purchased by plans investing at least $1 million.
. Class L shares may be purchased by plans investing less than $1 million.
Class L shares are eligible to exchange into Class A shares not later than
8 years after the plan joined the program. They are eligible for exchange
in the following circumstances:
If the plan was opened on or after June 21, 1996 and a total of $1 million is
invested in Smith Barney Funds Class L shares (other than money market funds),
all Class L shares are eligible for exchange after the plan is in the program 5
years.
If the plan was opened before June 21, 1996 and a total of $500,000 is invested
in Smith Barney Funds Class L shares (other than money market funds) on Decem-
ber 31 in any year, all Class L shares are eligible for exchange on or about
March 31 of the following year.
For more information, call you Salomon Smith Barney Financial Consultant or the
transfer agent, or consult the SAI.
Smith Barney Mutual Funds
33
<PAGE>
Dividends, distributions and taxes
Dividends Each fund pays dividends, if any, from its net investment income and
makes capital gain distributions once a year, typically in December. Each fund
may pay additional distributions and dividends at other times if necessary for
a fund to avoid a federal tax. Capital gain distributions and dividends are
reinvested in additional fund shares of the same class you hold. Each fund
expects distributions to be primarily from capital gains. You do not pay a
sales charge on reinvested distributions or dividends. Alternatively, you can
instruct your Salomon Smith Barney Financial Consultant, dealer representative
or the transfer agent to have your distributions and/or dividends paid in cash.
You can change your choice at any time to be effective as of the next distribu-
tion or dividend, except that any change given to the transfer agent less than
five days before the payment date will not be effective until the next distri-
bution or dividend is paid.
Taxes In general, redeeming shares, exchanging shares and receiving distribu-
tions (whether in cash or additional shares) are all taxable events.
<TABLE>
<CAPTION>
Transaction Federal tax status
<S> <C>
Redemption or exchange of shares Usually capital gain or
loss; long-term only if
shares owned more than
one year
Long-term capital gain distributions Long-term capital gain
Short-term capital gain distributions Ordinary income
Dividends Ordinary income
</TABLE>
Long-term capital gain distributions are taxable to you as long-term capital
gain regardless of how long you have owned your shares. You may want to avoid
buying shares when a fund is about to declare a capital gain distribution or a
dividend, because it will be taxable to you even though it may actually be a
return of a portion of your investment.
After the end of each year, each fund will provide you with information about
the distributions and dividends you received and any redemptions of shares dur-
ing the previous year. If you do not provide the funds with your correct tax-
payer identification number and any required certifications, you may be subject
to back-up withholding of 31% of your distributions, dividends, and redemption
proceeds. Because each shareholder's circumstances are different and special
tax rules may apply, you should consult your tax adviser about your investment
in a fund.
Premier Selections Fund
34
<PAGE>
Share price
You may buy, exchange or redeem shares at their net asset value, plus any
applicable sales charge, next determined after receipt of a request in good
order. Each fund's net asset value is the value of its assets minus its liabil-
ities. Net asset value is calculated separately for each class of shares. Each
fund calculates its net asset value every day the New York Stock Exchange is
open. The Exchange is closed on certain holidays listed in the SAI. This calcu-
lation is done when regular trading closes on the Exchange (normally 4:00 p.m.,
Eastern time).
Each fund generally values its fund securities based on market prices or quota-
tions. A fund's currency conversions are done when the London Stock Exchange
closes. When reliable market prices or quotations are not readily available,
the fund may price those securities at fair value. Fair value is determined in
accordance with procedures approved by a fund's board. A fund that uses fair
value to price securities may value those securities higher or lower than
another fund using market quotations to price the same securities.
International markets may be open on days when U.S. markets are closed and the
value of foreign securities owned by a fund could change on days when you can
not buy or redeem shares.
In order to buy, redeem or exchange shares at that day's price, you must place
your order with your Salomon Smith Barney Financial Consultant or dealer repre-
sentative before the New York Stock Exchange closes. If the New York Stock
Exchange closes early, you must place your order prior to the actual closing
time. Otherwise, you will receive the next business day's price.
Salomon Smith Barney or members of the selling group must transmit all orders
to buy, exchange or redeem shares to a fund's agent before the agent's close of
business.
Smith Barney Mutual Funds
35
<PAGE>
(This page is intentionally left blank.)
<PAGE>
SalomonSmithBarney
----------------------------
A member of citigroup [LOGO]
Premier Selections
All Cap Growth Fund
Global Growth Fund
Each a series of Smith Barney Investment Funds Inc.
Shareholder reports Annual and semiannual reports to shareholders provide addi-
tional information about each fund's investments. These reports discuss the
market conditions and investment strategies that affected a fund's performance.
Each fund sends only one report to a household if more than one account has the
same address. Contact your Salomon Smith Barney Financial Consultant, dealer
representative or the transfer agent if you do not want this policy to apply to
you.
Statement of additional information The statement of additional information
provides more detailed information about each fund and is incorporated by ref-
erence into (is legally part of) this prospectus.
You can make inquiries about a fund or obtain shareholder reports or the state-
ment of additional information (without charge) by contacting your Salomon
Smith Barney Financial Consultant or dealer representative, by calling the
funds at 1-800-451-2010, or by writing to the fund at Smith Barney Mutual
Funds, 388 Greenwich Street, MF2, New York, New York 10013.
Visit our web site. Our web site is located at www.smithbarney.com
Information about the funds (including the SAI) can be reviewed and copied at
the Securities and Exchange Commission's (the "Commission") Public Reference
Room in Washington D.C. In addition, information on the operation of the Public
Reference Room may be obtained by calling the Commission at 1-202-942-8090.
Reports and other information about the funds are available on the EDGAR Data-
base on the Commission's Internet site at http://www.sec.gov. Copies of this
information may be obtained for a duplicating fee by electronic request at the
following E-mail address: [email protected], or by writing the Commission's
Public Reference Section, Washington, D.C. 20549-0102.
If someone makes a statement about either fund that is not in this prospectus,
you should not rely upon that information. Neither fund nor the distributor is
offering to sell shares of the funds to any person to whom the funds may not
lawfully sell their shares.
SMSalomon Smith Barney is a service mark of Salomon Smith Barney Inc.
(Investment Company Act file no. 811-3275)
FD 01889 5/00
