SMITH BARNEY WORLD FUNDS, INC.
International Balanced Portfolio
Supplement dated April 6, 1998
to Prospectus dated February 27, 1998
On March 30, 1998 shareholders of the International Balanced
Portfolio (the "Portfolio") of Smith Barney World Funds, Inc.
(the "Fund") approved a Subadvisory Agreement among the Fund on
behalf of the Portfolio, Mutual Management Corp. ("MMC") and
Smith Barney Global Capital Management, Inc. ("Global Capital
Management").
As a result, effective April 6, 1998 the international fixed-
income assets of the Portfolio will be managed by Global Capital
Management. MMC, the Portfolio's investment manager, will pay
Global Capital Management a fee equal to 0.35% of the Portfolio's
average daily net assets. This fee will be paid out of the
management fee paid by the Portfolio to MMC. Thus, the
Subadvisory Agreement will not increase the total advisory fees
paid by the Portfolio.
Global Capital Management has its principal office at 10
Piccadilly, London, England. It is a wholly owned subsidiary of
Smith Barney (Delaware) Inc., which is in turn, a wholly owned
subsidiary of Salomon Smith Barney Holdings Inc., which is in
turn, a wholly owned subsidiary of Travelers Group Inc. Each of
Global Capital Management's parent companies is located at 388
Greenwich Street, New York, New York 10013. Global Capital
Management was established in 1986 to provide investment
management services with respect to global securities, and
currently manages the portfolios of clients in the international
securities markets, particularly in the fixed-income area. As of
December 31, 1997, Global Capital Management managed
approximately U.S. $2.4 billion of assets.
Portfolio Management
Mr. Denis P. Mangan, who will be responsible for the day to day
investment decisions regarding the international fixed-income
assets of the Portfolio, is a Vice President of the Fund and a
Global Fixed Income Portfolio Manager at Global Capital
Management. Prior to 1994 he was a trader at J.P. Morgan in
London.
FD 01443
