GREENWICH STREET SERIES FUND
on behalf of the
Diversified Strategic Income Portfolio
Supplement dated July 27, 1998
to the Prospectus dated April 30, 1998
The following information supplements, and to the extent
inconsistent therewith supersedes, the information set forth in the
Prospectus under "Additional Investments."
Real Estate Investment Trusts
The Diversified Strategic Income Portfolio may invest in real
estate investment trusts ("REITs"). REITs are entities which
either own properties or make construction or mortgage loans.
Equity trusts own real estate directly and the value of, and
income earned by, the trust depends upon the income of the
underlying properties and the rental income they earn. Equity
trusts may also include operating or finance companies. Equity
trusts can also realize capital gains by selling properties
that have appreciated in value. A mortgage trust can make
construction, development or long-term mortgage loans, and are
sensitive to the credit quality of the borrower. Mortgage
trusts derive their income from interest payments. Hybrid
trusts combine the characteristics of both equity and mortgage
trusts, generally by holding both ownership interests and
mortgage interests in real estate. The value of securities
issued by REITs are affected by tax and regulatory requirements
and by perceptions of management skill. They are also subject
to heavy cash flow dependency, defaults by borrowers or
tenants, self-liquidation, the possibility of failing to
qualify for tax-free status under the Internal Revenue Code of
1986, as amended, and failing to maintain exemption from the
Investment Company Act of 1940, as amended.
FD 01527
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