SMITH BARNEY INCOME FUNDS
on behalf of the
Smith Barney Diversified Strategic Income Fund (the "Fund")
Supplement dated July 8, 1999 to
Prospectuses dated November 27, 1998
The following information supplements the information in the
Prospectuses under "Investment Objective and Management Policies."
In order to provide the Investment Manager with additional investment
flexibility, the Fund's Board of Trustees approved the following
supplemental change to the Fund's investment policies by amending the
section of the Prospectuses entitled "Investment Objective and
Management Policies" as follows:
The Fund may invest in foreign high yield corporate bonds of
developed countries subject to the Fund's overall high yield limitation
of 35%.
FD
G:\Fund Accounting\Legal\FUNDS\SLIP\1999\SECDOCS\799stk2.doc
