CONSULTING GROUP CAPITAL MARKETS FUNDS (the "Trust")
The following information supplements the disclosure in the Prospectus of the
Trust. Defined terms have the same meanings as set forth in the Prospectus.
Supplement dated November 8, 2000 to the Prospectus dated December 28, 1999
The following revises and supersedes, as applicable, the information
contained in the Prospectus of the Trust on pages 40 and 41 under "More on
the Portfolios' Investments and Related Risks."
? Long-Term Bond Investments, Balanced Investments and Intermediate Fixed
Income Investments may each invest up to 5% of their respective assets and
Multi-Sector Fixed Income Investments may invest up to 10% of its assets
in asset-backed securities, which represent participations in, or are
secured by and payable from, assets such as installment sales or loan
contracts, leases, credit card receivables and other categories of
receivables.
? Each Portfolio which is not an international oriented Portfolio
(International Equity Investments, International Fixed Income Investments
and Emerging Markets Equity Investments), may invest up to 10% of its
assets in foreign securities, including emerging market securities.
On September 6, 2000 the Trust's Board of Trustees approved the following:
? A new investment advisory agreement between SSB Citi Fund Management LLC
("SSB Citi") and Westpeak Investment Advisors, L.P. ("Westpeak"), an
investment adviser to Small Capitalization Growth Investments ("Small Cap
Growth Portfolio"). Westpeak is an affiliate of Nvest, L.P. and Nvest
Companies, L.P., which recently completed their acquisition by CDC Asset
Management ("CDC"), the investment management arm of France's Caisse des
D p ts Group. As a result CDC owns, directly or indirectly, a controlling
interest in Westpeak. The Nvest-CDC transaction resulted in a "change of
control" of Westpeak, resulting in an assignment of the current investment
advisory agreement between SSB Citi and Westpeak. Pursuant to the
Investment Company Act of 1940, as amended, an assignment results in the
automatic termination of the investment advisory agreement. All the
principals of Westpeak will remain with the firm resulting in no change to
the management of the Small Cap Growth Portfolio. Accordingly, the Board
of Trustees approved a new investment advisory agreement identical to the
prior advisory agreement. The new investment advisory agreement became
effective on October 30, 2000.
? The termination of Standish, Ayer & Wood, Inc. ("Standish") and the hiring
of BlackRock Financial Management, Inc. ("BlackRock") as an investment
adviser to Intermediate Fixed Income Investments ("Intermediate
Portfolio"). The Consulting Group recommended BlackRock as an adviser
because of its highly regarded status as a fixed income manager and
because it invests in a wider range of fixed income securities than
Standish. BlackRock will seek to achieve the Intermediate Portfolio's
investment objective of current income and reasonable stability of
principal by emphasizing relative value, primarily through sector and sub-
sector rotation and security selection. The hiring of Blackrock has
resulted in the entering into of an investment advisory agreement
effective November 1, 2000 between SSB Citi and BlackRock. Under the terms
of the agreement, BlackRock will be receiving a fee of 0.20% on the first
$500 million and 0.15% thereafter that is computed daily and paid monthly
based on the value of the average net assets of the Intermediate Fixed
Income Portfolio allocated to BlackRock. BlackRock, located in New York,
New York, was founded in 1988 and currently manages approximately $177
billion in assets. With the hiring of BlackRock, the structure of the
Intermediate Portfolio will be as follows: Pacific Investment Management
Company 40%; BlackRock 40% and Metropolitan West Asset Management 20%.
? The termination of Standish and the hiring of Metropolitan West Asset
Management Company ("Metropolitan West") as an investment adviser to
Multi-Sector Fixed Income Investments ("Multi-Sector Portfolio"). The
Consulting Group recommended Metropolitan West as an adviser because it
currently manages the Trust's separate intermediate fixed income
portfolio. Metropolitan West will seek to achieve the Multi-Sector
Portfolio's investment objective of total return consisting of capital
appreciation and income by utilizing duration management, yield curve
management and sector management in conjunction with a long-term economic
outlook. The hiring of Metropolitan West has resulted in the entering
into of an investment advisory agreement effective November 1, 2000
between SSB Citi and Metropolitan West. Under the terms of the agreement,
Metropolitan West will be receiving a fee of 0.20% that is computed daily
and paid monthly based on the value of the average net assets of the
Multi-Sector Portfolio allocated to Metropolitan West. Metropolitan West,
located in Los Angeles, California, was founded in 1996 and currently
manages approximately $5 billion in assets. With the hiring of
Metropolitan West, the structure of the Multi-Sector Portfolio will be as
follows: Metropolitan West 50%; Western Asset Management Company 20%;
Utendahl Capital Management CFI 20% and Alliance Capital Management 10%.
On October 10, 2000, the Trustees approved the following:
? The termination of Provident Investment Counsel ("Provident") and the
hiring of Turner Investment Partners, Inc. ("Turner") as an investment
adviser to Large Capitalization Growth Investments ("Large Cap Growth
Portfolio"). The Consulting Group recommended Turner because consulting
Group believed it offered an investment style complementary to the other
advisers, Barclays Global Fund Advisors ("Barclays") and TCW Investment
Management Company ("TCW"). Turner will seek to achieve the Large Cap
Growth Portfolio's investment objective of capital appreciation by
utilizing proprietary models, fundamental analysis and technical analysis.
The hiring of Turner has resulted in the entering into of an investment
advisory agreement effective November 1, 2000 between SSB Citi and Turner.
Under the terms of the agreement, Turner will be receiving a fee of 0.35%
on the first $300 million and 0.30% thereafter that is computed daily and
paid monthly based on the value of the average net assets of the Large Cap
Growth Portfolio allocated to Turner. Turner, located in Berwyn,
Pennsylvania, was founded in 1990 and currently manages approximately $12
billion in assets. With the hiring of Turner, the structure of the Large
Cap Growth Portfolio will be as follows: Barclays 60%, TCW 20% and Turner
20%.
Shareholders of the Small Capitalization Growth Investments, Intermediate
Fixed Income Investments, Multi-Sector Fixed Income Investments and Large
Capitalization Growth Investments will soon receive an information statement
regarding these changes.
TK 2088S7
