CONSULTING GROUP CAPITAL MARKETS FUNDS (the "Trust")
Supplement dated October 9, 1998 to the
Prospectus dated July 1, 1998
On September 17, 1998 the Trust's Board of Trustees approved the
following:
A new investment advisory agreement between Mutual Management Corp.
("MMC") and Standish, Ayer & Wood, Inc. ("Standish, Ayer")
reflecting a decrease in the advisory fee paid by MMC to Standish,
Ayer on behalf of Government Money Investments. Pursuant to this
new agreement, MMC will pay Standish, Ayer 0.15% of the first $100
million and 0.10% thereafter.
A new investment advisory agreement between MMC and State Street
Global Advisors ("State Street") reflecting a decrease in the
advisory fee paid by MMC to State Street on behalf of International
Equity Investments. Pursuant to this new agreement, MMC will pay
State Street 0.06%.
A new investment advisory agreement between MMC and The Boston
Company Asset Management Company, Inc. ("TBCAM") reflecting a
decrease in the advisory fee paid by MMC to TBCAM on behalf of Large
Capitalization Value Equity Investments. Pursuant to this new
agreement, MMC will pay TBCAM 0.30% of the first $350 million and
0.25% thereafter.
A new investment advisory agreement between MMC and Oechsle
International Advisors, LLC ("Oechsle") investment adviser to
International Equity Investments ("International Equity
Portfolio"). Recently, Oechsle signed an agreement with Fleet
Financial Group ("Fleet") and Dresdner Bank AG ("Dresdner") that
will result in a management led buyout of Dresdner's limited
partnership interest in Oechsle. As a result of this transaction,
Oechsle's management will approximately double its collective equity
interests in the firm. Fleet will simultaneously become an
indirect, minority investor and Dresdner which indirectly owns
Oechsle's largest limited partnership interest, will no longer own
any interest in the firm. This transaction has caused a change in
control of Oechsle resulting in an assignment of the current
investment advisory agreement between MMC and Oechsle. Pursuant to
the Investment Company Act of 1940, as amended, an assignment
results in the automatic termination of the investment advisory
agreement. Accordingly, the Board of Trustees approved a new
investment advisory agreement identical to the prior advisory
agreement. All the principals of Oechsle will remain with the firm
resulting in no change to the management of the International Equity
Portfolio.
Shareholders of the Government Money, International Equity and Large
Capitalization Value Equity Portfolios will soon receive an information
statement regarding these changes.
In addition, effective October 8, 1998, CFBDS, Inc. ("CFBDS"), a
registered broker-dealer and an indirect wholly-owned subsidiary of
Signature Financial Group, Inc. ("Signature"), will serve as the
Trust's distributor.
FD 01561
