CONSULTING GROUP CAPITAL MARKETS FUNDS (the "Fund")
Supplement dated March 25, 1997 to the Prospectus dated December 31,
1996
On March 4, 1997 the Fund's Board of Trustees approved the
following:
An amendment to the Fund's investment policies to permit Standish
Ayer & Wood, Inc. and National Asset Management Inc., investment
advisers (collectively, the "Advisors") to Intermediate Fixed Income
Investments and Long-Term Bond Investments, respectively
(collectively referred to as "Portfolios" and individually as
"Portfolio") to invest in Asset-Backed Securities ("ABSs"). ABSs are
well established and have become increasingly prevalent in the fixed
income market. ABSs may enhance a Portfolio's performance; however,
their use involves certain risks that may not be found in other
mutual fund investments. Both Advisors are only authorized to
invest in those ABSs that have received a AAA rating from both
Moody's and Standard & Poor's and may only invest up to 5% of the
Portfolio's net assets in this type of security.
A new investment advisory agreement for a portion of the assets of
Small Capitalization Growth Investments ("Small Cap") between Berger
Associates, Inc. ("Berger Associates"), as replacement adviser to
Pilgrim Baxter & Associates, Inc. ("PBA") and Smith Barney Mutual
Funds Management Inc. The new advisory agreement will be identical in
all material respects to the agreement with PBA except that Berger
Associates will be receiving 0.50% for its services that is computed
daily and paid monthly based on the value of the average net assets
of the Portfolio subject to the shareholders approving an increase in
the management fee payable to SBMFM. Berger Associates was founded
in 1973 and currently manages $3.7 billion in assets. Shareholders
of this Portfolio will soon be receive detailed information
concerning Berger Associates.
A change of the investment strategy of Boston Structured Advisers
("BSA"), investment adviser to a portion of the assets of Large
Capitalization Growth Investments from an "enhanced index" manager to
a pure index manager. This change in investment strategy will result
in BSA's fees being decreased.
FD
