CONSULTING GROUP CAPITAL MARKETS FUNDS (the "Trust")
Supplement dated August 3, 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") and
Baring Asset Management, Inc. ("Baring") as additional investment
advisers 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 and Baring because it was determined that their
investment styles 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 is primarily quantitatively driven that combines
top-down country selection with bottom-up stock selection to determine
an optimal country and security mix.
Baring seeks to identify unrecognized growth investment
opportunities through a comprehensive investment framework in the
emerging markets. Baring also employs an investment process that
combines top-down country allocation with bottom-up stock selection to
determine an optimal country and security mix. Baring's process is
driven by structured fundamental research at both the country and stock
level.
MMC entered into investment advisory agreements with State Street
and Baring on July 15, 1998 and August 3, 1998, respectively. Under the
terms of the agreement, both State Street and Baring will be receiving
0.60% for their 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 each adviser. By the end of the year, the assets
of the Emerging Markets Portfolio will be allocated approximately as
follows: Govett 40%, State Street 30% and Baring 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.
Baring, located in Boston, Massachusetts, is a member of ING
Group. Baring provides investment advisory services to a wide variety
of clients world-wide and, as of March 31, 1998, had assets under
management of approximately $42 billion.
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