DSIP.STK
SMITH BARNEY DIVERSIFIED STRATEGIC INCOME FUND (the "Fund")
Supplement dated September 15, 1995 to
Prospectus dated November 7, 1994
At a Board Meeting held on August 9, 1995, the Trustees of
the Fund approved the elimination by Smith Barney Global Capital
Management Inc., the Fund's sub-investment adviser, of the wavier
of a portion of its sub-investment advisory fee.
As a result of the elimination of the waiver, the following
information supersedes the information set forth in the Fund's
Prospectus dated November 7, 1994:
Class A Class
B Class C Class Y
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Shareholder Transaction Expenses
Maximum sales charge imposed on purchases
(as a percentage of offering price) 4.50% None
None None
Maximum CDSC
(as a percentage of original cost or
redemption proceeds, whichever is lower) None* 4.50%
1.00% None
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Annual Fund Operating Expenses
(as a percentage of average net asset)
Management fees 0.65% 0.65%
0.65% 0.65%
12b-1 fees** 0.25 0.75 0.70
None
Other expenses*** 0.22 0.19 0.19
0.22
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TOTAL FUND OPERATING EXPENSES 1.12% 1.59% 1.54%
0.87%
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* Purchases of Class A shares, which when combined with
current holdings of Class A shares offered with a sales
charge, equal or exceed $500,000 in the aggregate, will be
made at net asset value with no sales charge, but will be
subject to a CDSC of 1.00% on redemptions made within 12
months.
** Upon conversion of Class B shares to Class A shares, such
shares will no longer be subject to a distribution fee.
Class C shares do not have a conversion feature and,
therefore, are subject to an ongoing distribution fee. As a
result, long-term shareholders of Class C shares may pay
more than the economic equivalent of the maximum front-end
sales charge permitted by the National Association of
Securities Dealers, Inc.
*** For Class Y shares, "Other expenses" have been estimated
based on expenses incurred by the Class A shares because
Class Y shares were not available for purchase prior to
November 7, 1994.
Supplement dated September 15, 1995
FD---- 9/95
EXAMPLE The following example is intended to assist an investor
in understanding the various costs that an investor in the Fund
will bear directly or indirectly. The example assumes payment by
the Fund of operating expenses at the levels set forth in the
table above. See "Purchase of Shares," "Redemption of Shares" and
"Management of the Trust and the Fund."
1 Year 3 Years 5 Years
10 Years*
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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:
Class A $61 $84 $109 $180
Class B 58 72 87 189
Class C 27 50 87 183
Class Y 9 28 48 107
An investor would pay the following expenses on
the same investment, assuming the same annual
return and no redemption:
Class A $61 $84 $109 $180
Class B 16 50 87 189
Class C 16 49 84 183
Class Y 9 28 48 107
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* Ten-year figures assume conversion of Class B shares to
Class A shares at the end of the eighth year following the
date of purchase.
