Smith Barney Shearson Arizona Municipals Fund Inc.
Smith Barney Shearson Tax-Exempt Income Fund
Smith Barney Shearson Diversified Strategic Income Fund
Smith Barney Shearson Utilities Fund
Smith Barney Shearson Precious Metals and Minerals Fund Inc.
Smith Barney Shearson New York Municipals Fund Inc.
Smith Barney Shearson Growth and Income Fund
Smith Barney Shearson Sector Analysis Fund
Supplement dated May 5, 1994 to Prospectuses*
The following information modifies the disclosure found in the
prospectus of each of the funds listed above (each a "Fund") under
"Investment Objective and Management Policies:"
The Fund will not enter into any futures contracts or purchase
options on futures contracts if immediately thereafter, the aggregate
initial margin on the Fund's existing futures contracts and premiums paid
for unexpired futures contracts or options on these contracts, which are
not bona fide hedging positions (as that term is defined by the Commodity
Futures Trading Commission) would exceed 5% of the value of the Fund's
total assets, after taking into account unrealized profits and losses on
any existing contracts.
_______________________
Prospectuses dated: Arizona Municipals Fund Inc. 10/1/93
Tax-Exempt Income Fund 12/1/93
Diversified Strategic Income Fund 12/1/93
Utilities Fund 12/1/93
Precious Metals and Minerals Fund Inc. 12/30/93
New York Municipals Fund Inc. 3/1/94
Growth and Income Fund 4/1/94
FD0545 E4
