SMITH BARNEY SHEARSON SHORT-TERM WORLD INCOME FUND
SUPPLEMENT TO PROSPECTUS
dated September 1, 1993
On March 29, 1994, the Board of Trustees of Smith Barney Shearson Short-
Term World Income Fund (the "Fund") approved a proposed reorganization
pursuant to which the assets of the Fund would be acquired by Smith Barney
Shearson Global Bond Fund ("Global Bond Fund"), a subtrust of Smith Barney
Shearson Income Funds, through an exchange of shares of Global Bond Fund and
the assumption by Global Bond Fund of substantially all of the Fund's
liabilities. These shares would then be distributed to shareholders of the
Fund in liquidation of the Fund. The Fund and Global Bond Fund have
substantially similar investment objectives.
Under the terms of the proposed reorganization, each shareholder of the
Fund would become a shareholder of Global Bond Fund, receiving shares of the
Global Bond Fund with a value equal to the value of the shareholder's
investment in the Fund in accordance with the terms of the plan of
reorganization. No sales charge would be imposed in the transaction, and it
is anticipated that no gain or loss for Federal income tax purposes will be
recognized by shareholders as a result of the reorganization.
The proposed reorganization is subject to the fulfillment of certain
conditions, including the approval of shareholders of the Fund. Proxy
materials describing the proposed reorganization will be mailed to Fund
shareholders in anticipation of a meeting of shareholders expected to be held
in June, 1994. If approved by shareholders at that time, the transaction will
occur as soon after the meeting as practicable. In anticipation of the
meeting of shareholders, effective April 18, 1994, no further purchase of
shares of the Fund will be accepted nor will exchanges into the Fund be
allowed.
Dated: April 1, 1994
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