CONSULTING GROUP CAPITAL MARKETS FUNDS (the "Trust")
Supplement dated July 15, 1998 to the Prospectus dated July 1, 1998
On June 18, 1998 the Trust's Board of Trustees approved the
following:
The hiring of State Street Global Advisors ("State Street") as an
additional investment adviser to Emerging Markets Equity Investments
("Emerging Markets Portfolio"). The Consulting Group, a division of
Mutual Management Corp. ("MMC"), the Trust's investment manager,
recommended the addition of State Street because it was determined that
their primarily quantitative investment style would complement the
fundamental investment style of AIB Govett Asset Management Limited
("Govett"), the Emerging Markets Portfolio's current investment
adviser. State Street seeks to identify markets and securities that are
misvalued relative to their growth potential by identifying
inefficiencies in the emerging markets. State Street employs an
investment process that combines top-down country selection with bottom-
up stock selection to determine an optimal country and security mix.
State Street and MMC have entered into an investment advisory agreement
dated as of July 15, 1998. Under the terms of the agreement, State
Street will be receiving 0.60% for its services, a fee that is computed
daily and paid monthly based on the value of the average net assets of
the Emerging Markets Portfolio allocated to State Street. With the
hiring of State Street, the assets of the Emerging Markets Portfolio
will be allocated as follows: Govett 70% and State Street 30%. State
Street, located in Boston, Massachusetts, is a division of State Street
Bank and Trust Company. State Street provides investment advisory
services to a wide variety of clients world-wide and, as of March 31,
1998, had assets under management of approximately $470 billion.
Shareholders of the Emerging Markets Portfolio will soon receive an
information statement regarding State Street.
FD 01519
