<PAGE>
[LOGO]
SMITH BARNEY
MONEY Funds, Inc.
SEMI-ANNUAL REPORT
JUNE 30, 2000
[LOGO]
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
<PAGE>
A Message from the Chairman
[PHOTO]
HEATH B.
MCLENDON
Chairman
Dear Shareholder:
For years, individuals and their families and businesses have considered the
investment professionals of SSB Citi Fund Management LLC for market insights and
advice. For some, the solution has been a long-term investment strategy,
incorporating multiple stock, bond and money market mutual funds. Others have
invested with specific portfolio managers who are recognized and respected for
their insights and track records.
We believe that Smith Barney Mutual Funds represent extensive asset management
experience. We also believe that expertise is achieved through the intelligent
application of knowledge and experience. Our experienced portfolio managers have
managed portfolios across markets and cycles. Whatever your investment objective
may be, we think that following a disciplined investment plan is of paramount
importance in these uncertain times. We encourage you to work closely with your
Salomon Smith Barney Financial Professional to map out an investment plan that
fits in with your objectives -- be it retirement, estate planning or educational
needs.
When you invest with SSB Citi Fund Management LLC, you can do so with the
knowledge that our resources are being committed to your financial future and
that your investment success is our goal as well. Thank you for investing with
us.
Sincerely,
/S/ Heath B. McLendon
Heath B. McLendon
Chairman
July 17, 2000
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Smith Barney Money Funds, Inc. 1
<PAGE>
Smith Barney Money
Funds, Inc.
[PHOTO]
PHYLLIS M. ZAHORODNY
Vice President
Dear Shareholder:
We are pleased to provide the semi-annual report for the Smith Barney Money
Funds, Inc. ("Fund") for the period ended June 30, 2000. For your convenience,
we have summarized the period's prevailing economic and market conditions and
investment strategy below. The information provided represents the opinion of
the manager and is not intended to be a forecast of future results. Further,
there is no assurance that certain securities will remain in or out of the Fund.
In addition, a more detailed summary of performance and current holdings can be
found in the appropriate sections that follow.
Performance Summary
The chart below shows the yields for the Cash, Government and Retirement
Portfolios ("Portfolio(s)") that make up the Fund for the seven-day period ended
June 30, 2000.
Smith Barney Money Funds, Inc. Yields (Class A Shares)
Portfolio Seven-Day Yield Seven-Day Effective Yield(1)
--------- --------------- ----------------------------
Cash 6.09% 6.28%
Government 5.95 6.13
Retirement 5.98 6.16
Please note that your investment is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation ("FDIC") or any other government agency.
Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the Fund.
----------------
1 The seven-day effective yield is calculated similarly to the seven-day
yield but, when annualized, the income earned by an investment in a
Portfolio or the Class is assumed to be reinvested. The effective yield
will be slightly higher than the yield because of the compounding effect of
the assumed reinvestment.
--------------------------------------------------------------------------------
2 2000 Semi-Annual Report to Shareholders
<PAGE>
Investment Objective
Each Portfolio seeks maximum current income and the preservation of capital.
Government Portfolio
The Portfolio invests exclusively in U.S. government obligations, including
mortgage-backed securities and related repurchase agreements.
Cash and Retirement Portfolios
Both Portfolios invest in high quality U.S. dollar denominated short-term debt
securities. These may include obligations issued by U.S. and foreign banks, the
U.S. government, its agencies or instrumentalities, U.S. states and
municipalities and U.S. and foreign corporate issuers. Each Portfolio will
invest at least 25% of its assets in obligations of domestic and foreign banks.
Either the principal amount of each obligation must be fully insured by the FDIC
or the issuing bank must have more than $100 million of working capital or more
than $1 billion of total assets.
Both the Cash Portfolio and the Retirement Portfolio may invest in all types of
money market securities including commercial paper, certificates of deposits,
bankers' acceptances, mortgage-backed and asset-backed securities, repurchase
agreements and other short-term debt securities. The Portfolios limit foreign
investments to issues located in major industrialized countries.
Portfolio Updates/2/
During the reporting period,the Cash Portfolio's average maturity was kept short
at 40 days and gradually lengthened to 60 days to capture higher yields as
interest rates rose. Currently,our target will be to keep the Cash Portfolio's
average life at about 65 days and maintain the Government Portfolio's average
life at roughly 50 days.
The average maturity for the Retirement Portfolio was also kept short at 30 days
and was gradually extended to the mid-40's. Going forward, we will target a
neutral average life between 45 to 50 days for the Retirement Portfolio. We
believe the peak in short-term interest rates may occur later on this year or
early in 2001 and we will look to extend the Portfolios'maturities accordingly.
Moreover, we continued to purchase what we deem to be high-quality banks and
corporate securities during the period. We have added several new issues to our
approved list such as British Telecommunications (BT), Bell Atlantic Network
Funding and Exxon/Mobil Australia, all of which maintain a large market share in
their respective industries.
---------------------
2 Please note the Portfolios' holdings are subject to change and any
discussion of the holdings is as of June 30, 2000. Please refer to pages
six through nineteen for a complete list and percentage breakdown of the
Portfolios' holdings.
--------------------------------------------------------------------------------
Smith Barney Money Funds, Inc. 3
<PAGE>
Market Update and Outlook
In late 1999, the Federal Reserve Board ("Fed") raised rates from 4.75% to 5.50%
to reverse the interest rate cuts the Fed made as the emerging markets and
overall global crisis of 1998.
Three quarters of above 5% Gross Domestic Product ("GDP")(3)growth with rising
inflation, an over-exuberant stock market and tight labor markets prompted the
Fed to step up its pace of monetary tightening. Since the beginning of the year
the Fed has implemented three interest rate increases totaling 100 basis
points(4)and announced its latest rate hike of 50 basis points at the May 16,
2000 Federal Open-Market Committee ("FOMC") meeting. The federal funds rate is
now targeted at 6.50%. (The federal funds rate is the interest rate that banks
with excess reserves at a Federal Reserve district bank charge other banks that
need overnight loans.)
The second quarter of 2000 was anticipated to temporarily slow in response to
weaker consumption data, but it is expected that GDP should remain at about
4.50%. We believe that higher labor costs have already imbedded themselves into
the cost structure of many firms and the economy which concerns Fed
policymakers. The Fed, as well as investors, will therefore watch future
economic numbers closely to discern how many more interest rate increases may be
required to slow economic growth further. At this point, various Wall Street
economists and investment professionals are suggesting another 50 basis point
increase over the remainder of the year. Whether that occurs will depend upon
the success the Fed has in slowing growth and expectations with its recent
interest rate increases.
In closing, thank you for investing in the Smith Barney Money Funds, Inc. We
hope the Fund has been a convenient, cost-effective and competitive investment
for your short-term assets.
Sincerely,
/S/ Phyllis Zahorodny
Phyllis Zahorodny
Vice President
July 17, 2000
------------------------
3 GDP is the market value of the goods and services produced by labor and
property in the U.S. GDP is made up of consumer and government purchases,
private domestic investments and net exports of goods and services.
4 A basis point is 0.01% or one one-hundredth of a percent.
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4 2000 Semi-Annual Report to Shareholders
<PAGE>
Money Market Funds: An Investment Whose Objectives are Income, Capital
Preservation and Liquidity
Since the 1970s, millions of investors worldwide have made money market funds a
key part of their investment portfolios. While all investments involve some
degree of risk, money market funds provide investors with an opportunity to earn
current short-term interest rates with a higher degree of liquidity than most
other types of funds.
While not insured by the U.S. government, money market funds may be suitable for
almost all investors. The short-term nature of money market fund investments
cause money market fund yield to move with short-term changes in interest rate
without meaningfully affecting the principal value of the underlying
investments.
The Smith Barney Money Funds, Inc. may help you achieve your investment goals of
income and preservation of capital with liquidity. Interest earned from these
funds are usually competitive to those offered for Certificates of Deposit
("CDs"),(1)but provide easier access to your money. Also, your monthly interest
rate is currently higher than that offered by most banks' savings accounts. Of
course interest rates are subject to change.
Please note that your investment is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
the Fund seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Fund.
-------------------
1 CD is a debt instrument issued by a bank that usually pays an interest rate
set by competitive forces in the marketplace. CDs are insured up to
$100,000 under the Federal Deposit Insurance Corporation (FDIC).
--------------------------------------------------------------------------------
Smith Barney Money Funds, Inc. 5
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
=======================================================================================
<S> <C> <C> <C>
U.S. AGENCIES AND INSTRUMENTALITIES -- 12.7%
$2,513,844,000 Federal Home Loan Mortgage Corp.
mature 7/7/00 to 8/31/00 6.48% to 6.65% $2,501,764,712
3,762,997,000 Federal National Mortgage Association
mature 7/20/00 to 4/26/01 6.49 to 6.93 3,716,613,105
---------------------------------------------------------------------------------------
TOTAL U.S. AGENCIES AND
INSTRUMENTALITIES (Cost--$6,218,377,817) 6,218,377,817
=======================================================================================
BANK NOTES -- 2.6%
50,000,000 Banc One NA
matures 10/10/00 6.19 49,993,534
450,000,000 Bank of America
mature 7/10/00 to 5/4/01 6.54 to 7.20 450,001,352
100,000,000 First Union National Bank
matures 2/22/01 6.80 100,000,000
400,000,000 First USA Bank NA
mature 9/5/00 to 5/4/01 6.20 to 7.14 399,976,654
250,000,000 Harris Bank
mature 8/18/00 to 8/28/00 6.60 249,999,721
---------------------------------------------------------------------------------------
TOTAL BANK NOTES
(Cost-- $1,249,971,261) 1,249,971,261
=======================================================================================
MEDIUM-TERM NOTES -- 1.0%
50,000,000 Abbey National PLC
matures 7/28/00 5.75 49,998,688
150,000,000 AT&T Corp.
matures 3/8/01 6.67 150,000,000
275,000,000 Merrill Lynch
mature 2/7/01 to 5/8/01 6.75 to 7.17 274,994,304
---------------------------------------------------------------------------------------
TOTAL MEDIUM-TERM NOTES
(Cost-- $474,992,992) 474,992,992
=======================================================================================
DOMESTIC CERTIFICATES OF DEPOSI T-- 1.4%
150,000,000 American Centurion Bank
mature 7/10/00 to 8/14/00 6.52 to 6.62 150,000,000
400,000,000 Chase Manhattan USA Delaware
mature 9/5/00 to 9/7/00 6.70 400,000,000
50,000,000 First Union National Bank
matures 4/30/01 7.06 50,000,000
100,000,000 Harris Bank
mature 7/24/00 to 8/11/00 5.60 to 6.57 99,999,708
---------------------------------------------------------------------------------------
TOTAL DOMESTIC CERTIFICATES
OF DEPOSIT (Cost-- $699,999,708) 699,999,708
=======================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
6 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
=======================================================================================
<S> <C> <C> <C>
TIME DEPOSITS -- 4.2%
$ 203,128,000 Banc One Corp.
matures 7/3/00 7.07% $ 203,128,000
400,000,000 Barclays Bank
matures 7/3/00 7.00 400,000,000
500,000,000 BNP Paribas
matures 7/3/00 7.00 500,000,000
100,000,000 Canadian Imperial Bank Commerce
matures 7/3/00 7.00 100,000,000
450,000,000 Credit Agricole Indosuez
matures 7/3/00 7.00 450,000,000
250,000,000 Union Bank of Switzerland
matures 7/5/00 6.75 250,000,000
150,000,000 Westdeutsche Landesbank
matures 7/3/00 7.06 150,000,000
---------------------------------------------------------------------------------------
TOTAL TIME DEPOSITS
(Cost-- $2,053,128,000) 2,053,128,000
=======================================================================================
COMMERCIAL PAPER -- 59.0%
100,000,000 Abbey National North America
matures 12/22/00 6.83 96,846,667
150,000,000 ABN AMRO (Canada)
mature 7/26/00 to 11/2/00 6.35 to 6.80 148,019,767
50,000,000 ABN AMRO Bank NV
matures 8/7/00 6.70 49,678,194
229,000,000 Aegon Funding Corp.
mature 7/6/00 to 12/18/00 6.54 to 6.85 224,271,249
250,000,000 Alcoa Inc.
mature 8/7/00 to 8/16/00 6.71 to 6.75 248,050,063
70,000,000 A.I. Credit
mature 7/31/00 to 8/18/00 6.60 69,542,572
50,000,000 Alliance & Leicester Building Society
matures 9/6/00 6.70 49,405,069
500,000,000 American Express Credit Corp.
mature 7/5/00 to 9/11/00 6.54 to 6.79 496,987,696
350,000,000 Amsterdam Funding Corp.
mature 7/12/00 to 8/15/00 6.59 to 6.64 347,932,812
150,000,000 ANZ Delaware Inc.
mature 8/14/00 to 8/15/00 6.61 148,846,417
300,000,000 Aspen Funding
mature 7/5/00 to 8/2/00 6.56 to 6.71 299,248,847
685,000,000 Asset Securitization
mature 7/5/00 to 8/16/00 6.53 to 6.71 681,793,159
300,000,000 Associates Corp. of North America
mature 7/5/00 to 8/21/00 6.57 to 6.79 298,765,166
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney Money Funds, Inc. 7
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
=======================================================================================
<S> <C> <C> <C>
COMMERCIAL PAPER -- 59.0% (continued)
$ 400,000,000 Associates First Capital Co.
mature 8/10/00 to 9/8/00 6.62% to 6.70% $396,335,486
350,000,000 AT&T Corp.
mature 8/14/00 to 9/14/00 6.70 346,106,584
424,732,000 Atlantis One Funding Corp.
mature 7/6/00 to 8/21/00 6.56 to 6.72 422,603,422
200,000,000 Banc One Corp.
mature 9/6/00 to 12/19/00 6.72 to 6.84 195,715,028
550,000,000 BankAmerica Corp.
mature 8/10/00 to 11/10/00 6.35 to 6.89 540,071,931
200,000,000 Bank of Nova Scotia
mature 7/10/00 to 9/6/00 6.54 to 6.70 198,957,458
100,000,000 Barclays U.S. Funding Corp.
matures 7/24/00 6.59 99,617,625
528,505,000 Barton Capital Corp.
mature 7/10/00 to 7/21/00 6.54 to 6.74 527,324,003
50,000,000 Baus Funding LLC
matures 8/10/00 6.67 49,653,778
250,000,000 BBL NA Inc.
mature 7/10/00 to 1/1/00 6.55 to 6.76 247,511,794
246,800,000 BCI Funding Corp.
mature 7/6/00 to 11/1/00 6.53 to 6.71 244,423,502
283,400,000 Bell Atlantic Financial Service
mature 7/13/00 to 8/23/00 6.52 to 6.72 281,441,194
203,500,000 Bell Atlantic Network
mature 8/1/00 to 8/9/00 6.60 202,246,318
236,000,000 Bellsouth Capital Funding
mature 7/10/00 to 9/18/00 6.53 to 6.70 233,607,256
175,000,000 Bellsouth Telecommunications
mature 7/24/00 to 8/18/00 6.57 to 6.61 173,783,417
159,574,000 BMW U.S. Capital Corp.
mature 7/10/00 to 7/26/00 6.60 to 6.69 159,225,971
150,000,000 British Telecommunication
mature 7/17/00 to 11/6/00 6.56 to 6.85 148,073,250
200,000,000 Canadian Wheat Board
mature 8/17/00 to 8/25/00 6.60 to 6.70 198,213,444
50,000,000 Cariplo Finance Inc.
matures 11/6/00 6.76 48,857,250
337,900,000 Caisse Des Depots et Consignation
mature 7/5/00 to 8/18/00 6.59 to 6.76 336,835,280
157,000,000 CBA Finance Inc.
mature 8/15/00 to 12/22/00 6.60 to 6.85 154,131,703
436,345,000 Centric Capital Corp.
mature 7/14/00 to 8/17/00 6.58 to 6.76 434,069,017
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
8 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
=======================================================================================
<S> <C> <C> <C>
COMMERCIAL PAPER -- 59.0% (continued)
$ 400,000,000 CIT Group Holdings, Inc.
mature 8/7/00 to 10/23/00 6.56% to 6.72% $396,029,514
130,000,000 Coca-Cola Co.
mature 7/28/00 to 8/25/00 6.57 to 6.61 129,138,986
300,000,000 Credit Suisse/First Boston
mature 8/21/00 to 12/20/00 6.71 to 6.85 294,599,688
207,000,000 Cregem North America
mature 7/3/00 to 9/7/00 6.53 to 6.70 205,347,430
550,000,000 Daimler Chrysler Holdings Co.
mature 7/10/00 to 11/7/00 6.52 to 6.88 545,819,930
576,346,000 Delaware Funding Corp.
mature 7/7/00 to 8/22/00 6.56 to 6.66 574,291,832
125,000,000 Den Danske Corp.
mature 7/6/00 to 11/15/00 6.55 to 6.86 122,600,563
400,000,000 Deutsche Bank Finance Inc.
mature 7/10/00 to 12/19/00 6.52 to 6.86 393,386,049
400,000,000 Diageo PLC
mature 7/5/00 to 8/15/00 6.60 to 6.91 398,365,777
500,000,000 Dresdner U.S. Finance, Inc.
mature 7/5/00 to 7/24/00 6.56 to 6.79 499,180,083
200,000,000 E.I. du Pont de Nemours
mature 7/17/00 to 8/10/00 6.54 to 6.65 199,278,000
263,102,000 Enterprise Funding Corp.
mature 7/7/00 to 7/20/00 5.76 to 6.56 262,649,318
100,000,000 Exxon Mobil Australia
matures 7/5/00 6.74 99,962,611
519,625,000 Falcon Asset Securities Corp.
mature 7/7/00 to 8/3/00 6.57 to 6.63 518,092,964
100,000,000 First Union Corp.
matures 12/21/00 6.82 96,869,750
120,568,000 Fleet Funding Inc.
mature 7/11/00 to 7/12/00 6.57 120,389,110
50,000,000 Ford Credit Europe PLC
matures 7/10/00 6.56 49,936,611
550,000,000 Ford Motor Credit Co.
mature 7/6/00 to 12/19/00 6.51 to 6.81 544,922,972
265,100,000 Fortis Funding LLC
mature 7/14/00 to 11/6/00 6.35 to 6.75 261,659,295
525,000,000 General Electric Capital Corp.
mature 8/14/00 to 11/10/00 6.60 to 6.85 518,157,979
350,000,000 General Electric International
mature 7/10/00 to 8/21/00 6.53 to 6.63 348,472,444
650,000,000 General Motors Acceptance Corp.
mature 7/10/00 to 10/31/00 6.52 to 6.73 644,087,375
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney Money Funds, Inc. 9
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
=======================================================================================
<S> <C> <C> <C>
COMMERCIAL PAPER -- 59.0% (continued)
$ 228,200,000 Glaxo Wellcome PLC
mature 7/24/00 to 7/26/00 6.56% to 6.58% $227,283,002
700,000,000 Goldman Sachs
mature 7/5/00 to 11/13/00 6.56 to 6.76 693,050,660
96,500,000 GTE
mature 7/5/00 to 7/31/00 6.62 to 6.67 96,138,897
200,000,000 Halifax PLC
mature 7/6/00 to 7/12/00 6.56 to 6.57 199,782,417
245,500,000 Honeywell International
mature 7/11/00 to 8/21/00 6.54 to 6.62 244,347,424
200,000,000 Household Finance Corp.
matures 7/6/00 6.55 199,891,333
200,000,000 IBM Corp.
matures 7/10/00 6.62 199,743,333
100,000,000 IBM Credit Corp
matures 7/12/00 6.55 99,837,250
344,400,000 International Lease Finance
mature 7/7/00 to 9/11/00 6.50 to 6.68 342,390,366
100,000,000 International Nederlanden U.S.
Funding Corp.
matures 7/7/00 6.55 99,927,611
550,000,000 J.P. Morgan & Co.
mature 7/10/00 to 11/6/00 6.54 to 6.81 544,905,791
60,000,000 Johnson & Johnson
matures 8/14/00 6.59 59,543,600
648,913,000 Kitty Hawk
mature 7/7/00 to 7/25/00 6.57 to 6.67 647,564,936
115,000,000 Lloyds Bank
mature 7/12/00 to 8/16/00 6.55 to 6.60 114,399,853
200,000,000 Lucent Technologies
mature 8/14/00 to 8/15/00 6.59 198,474,139
450,000,000 Merrill Lynch
mature 7/13/00 to 11/1/00 6.58 to 6.72 444,816,528
278,005,000 Monte Rosa Capital
mature 7/7/00 to 8/7/00 5.78 to 6.57 277,132,538
800,000,000 Morgan Stanley Dean Witter & Co.
mature 7/10/00 to 9/8/00 6.54 to 6.71 793,778,222
400,000,000 Moriarity Ltd.
mature 7/10/00 to 12/20/00 6.37 to 6.88 393,337,306
300,000,000 National Australia Funding Delaware
matures 7/6/00 6.79 299,830,500
300,000,000 Nationwide Building Society
mature 8/7/00 to 12/14/00 6.65 to 6.88 295,721,139
200,000,000 New Center Asset Trust
mature 7/5/00 to 7/6/00 6.53 to 6.56 199,909,500
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
10 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
=======================================================================================
<S> <C> <C> <C>
COMMERCIAL PAPER -- 59.0% (continued)
$ 250,000,000 Newport Funding
mature 7/12/00 to 8/14/00 5.71% to 6.58% $248,779,937
325,200,000 Oesterreische Kontrollbank
mature 7/12/00 to 7/24/00 5.57 to 6.54 324,451,357
358,662,000 Pfizer Inc.
mature 7/5/00 to 7/25/00 6.52 to 6.56 357,651,613
444,209,000 Preferred Receivable Funding
mature 7/6/00 to 8/21/00 6.56 to 6.65 441,792,544
146,000,000 Private Export Funding Corp.
mature 9/7/00 to 12/14/00 6.68 to 6.80 142,985,906
340,000,000 Procter & Gamble Co.
mature 7/5/00 to 8/21/00 6.53 to 6.61 337,812,427
298,500,000 Province de Quebec
mature 10/16/00 to 10/24/00 6.53 to 6.73 292,852,340
200,000,000 Prudential Funding Corp.
mature 7/5/00 to 7/12/00 6.56 199,800,667
356,264,000 Quincy Capital Corp.
mature 7/5/00 to 8/10/00 6.54 to 6.66 355,109,473
271,971,000 Receivable Capital Corp.
mature 7/7/00 to 8/4/00 6.53 to 6.72 271,022,572
75,000,000 Saint-Gobain Compagnie
mature 8/8/00 to 11/1/00 6.71 to 6.83 73,725,833
100,000,000 San Paolo U.S. Finance Inc.
mature 8/16/00 to 11/2/00 6.61 to 6.70 98,502,333
175,100,000 Sara Lee Corp.
mature 7/6/00 to 7/12/00 6.51 to 6.54 174,956,012
344,917,000 SBC Communications
mature 7/18/00 to 10/11/00 6.53 to 6.67 342,486,956
80,000,000 Societe Generale NA Inc.
matures 7/5/00 6.56 79,970,978
347,497,000 Transamerica Finance Corp.
mature 7/7/00 to 9/5/00 6.56 to 6.71 344,931,115
175,000,000 Unifunding Inc.
mature 7/24/00 to 11/1/00 6.69 to 6.82 172,952,604
100,000,000 Unilever Capital Corp.
matures 7/10/00 6.52 99,874,583
180,000,000 Union Bank of Switzerland
mature 7/3/00 to 7/6/00 6.55 to 6.75 179,945,750
176,100,000 USAA Capital Corp.
mature 7/24/00 to 8/21/00 6.56 to 6.70 174,767,924
161,000,000 Wal-Mart Stores Inc.
mature 7/1/00 to 9/19/00 6.53 to 6.70 159,591,358
122,750,000 Walt Disney Co.
mature 7/11/00 to 7/12/00 6.55 122,559,542
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney Money Funds, Inc. 11
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
=======================================================================================
<S> <C> <C> <C>
COMMERCIAL PAPER -- 59.0% (continued)
$ 500,000,000 Wells Fargo Co.
mature 7/10/00 to 9/8/00 6.50% to 6.74% $ 495,886,639
50,000,000 Westpac
matures 11/6/00 6.75 48,859,000
500,000,000 Windmill Funding Corp.
mature 7/6/00 to 8/22/00 6.55 to 6.73 497,816,882
100,000,000 Woolwich Building Society
mature 12/18/00 to 12/21/00 6.82 to 6.85 96,889,042
---------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost-- $28,829,212,402) 28,829,212,402
=======================================================================================
FOREIGN CERTIFICATES OF DEPOSIT -- 18.1%
375,000,000 Abbey National PLC
mature 7/24/00 to 5/8/01 5.70 to 7.14 374,985,680
50,000,000 ABN AMRO Bank (New York)
matures 8/7/00 6.70 49,945,495
125,000,000 ABN AMRO Bank NV
mature 8/21/00 to 11/6/00 6.61 to 6.75 125,003,801
50,000,000 Alliance & Leicester PLC
matures 7/10/00 6.54 50,000,096
85,000,000 ANZ Delaware Inc.
mature 10/27/00 to 5/2/01 6.54 to 7.00 84,994,499
100,000,000 Banca Commerce Italiana
mature 8/16/00 to 9/7/00 6.68 to 6.71 100,001,502
225,000,000 Banca Intesa S.p.A.
mature 8/2/00 to 9/11/00 6.62 to 6.74 225,002,206
275,000,000 Bank Austriengellschaft
mature 9/7/00 to 11/15/00 6.70 to 6.85 275,011,893
300,000,000 Bank of Montreal
mature 7/12/00 to 8/21/00 6.56 to 6.63 300,000,000
190,000,000 Bank of Nova Scotia
mature 9/28/00 to 5/3/01 6.20 to 7.07 189,961,835
125,000,000 Banque National De Paris
matures 11/8/00 to 4/30/01 6.81 to 6.90 124,999,530
88,500,000 Barclays Bank
mature 9/5/00 to 10/2/00 6.20 to 6.70 88,484,970
550,000,000 Bayerische Hypo-Und Vereinsbank
mature 7/10/00 to 4/17/01 6.52 to 6.81 549,964,475
250,000,000 Bayerische Landesbank
mature 7/25/00 to 10/2/00 6.02 to 6.62 249,971,179
50,000,000 BNP Paribas
matures 7/24/00 6.54 50,000,000
400,000,000 Canadian Imperial Bank Commerce
mature 8/8/00 to 11/15/00 6.63 to 6.85 399,980,493
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
12 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
=======================================================================================
<S> <C> <C> <C>
FOREIGN CERTIFICATES OF DEPOSIT -- 18.1% (continued)
$ 50,000,000 Cariplo
matures 9/7/00 6.71% $ 50,000,901
400,000,000 Commerzbank
mature 7/3/00 to 5/8/01 5.80 to 7.21 399,983,784
250,000,000 Credit Agricole Indosuez
mature 8/21/00 to 5/3/01 6.60 to 7.06 250,000,000
50,000,000 Credit Suisse
matures 8/2/00 6.70 50,000,412
125,000,000 Den Danske Corp.
mature 7/12/00 to 8/16/00 5.75 to 6.70 125,000,522
300,000,000 Deutsche Bank
mature 9/11/00 to 12/20/00 6.35 to 6.84 299,995,101
100,000,000 Dresdner Bank
mature 11/6/00 to 5/4/01 6.82 to 7.21 100,000,000
25,000,000 Halifax Building Society
matures 12/21/00 6.81 25,001,148
300,000,000 Hessiche Landesbank
mature 7/14/00 to 5/4/01 6.00 to 7.14 299,980,934
275,000,000 International Nederlanden Group
mature 9/7/00 to 11/6/00 6.35 to 6.73 275,007,438
200,000,000 KBC Bank NV
mature 11/3/00 to 11/6/00 6.70 to 6.72 200,006,687
385,000,000 Lloyds Bank
mature 8/8/00 to 9/7/00 6.64 to 6.70 385,005,774
100,000,000 National Australia Bank
matures 8/16/00 6.61 100,000,604
125,000,000 National Bank of Canada
mature 9/12/00 to 4/30/01 6.37 to 6.90 125,000,000
250,000,000 National Westminster Bank PLC
mature 7/3/00 to 2/12/01 5.70 to 6.76 249,970,900
350,000,000 Rabobank
matures 9/25/00 6.35 350,007,909
250,000,000 Royal Bank of Canada
mature 7/12/00 to 5/4/01 5.75 to 7.10 249,986,418
100,000,000 Royal Bank of Scotland
matures 8/22/00 6.61 100,001,373
50,000,000 San Paolo Bank
matures 9/6/00 6.73 50,000,888
200,000,000 San Paolo Bank New York
mature 7/12/00 to 5/8/01 5.76 to 7.22 199,994,994
430,000,000 Societe Generale New York
mature 7/6/00 to 5/2/01 6.54 to 7.00 429,984,377
350,000,000 Svenska Handelsbanken
mature 7/10/00 to 12/27/00 6.48 to 6.85 349,993,723
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney Money Funds, Inc. 13
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
=========================================================================================
<S> <C> <C> <C>
FOREIGN CERTIFICATES OF DEPOSIT -- 18.1% (continued)
$ 142,000,000 Toronto Dominion
mature 9/25/00 to 12/21/00 6.47% to 6.84% $ 141,989,126
50,000,000 Unicredito Italiano
matures 5/8/01 7.14 50,004,000
484,000,000 Union Bank of Switzerland
mature 7/27/00 to 5/3/01 5.75 to 7.07 483,971,185
250,000,000 Westdeutsche Landesbank
mature 8/15/00 to 5/4/01 6.60 to 7.12 250,000,000
-----------------------------------------------------------------------------------------
TOTAL FOREIGN CERTIFICATES
OF DEPOSIT (Cost -- $8,829,195,852) 8,829,195,852
=========================================================================================
REPURCHASE AGREEMENT -- 1.0%
500,000,000 Morgan Stanley Dean Witter & Co., 6.47% due 7/12/00;
Proceeds at maturity -- $502,605,972;
(Fully collateralized by FNMA, 5.50% to 8.50%
due 5/1/09 to 1/1/24; Market value -- $508,857,945)
(Cost -- $500,000,000) 500,000,000
=======================================================================================
TOTAL INVESTMENTS -- 100%
(Cost-- $48,854,878,032*) $48,854,878,032
=======================================================================================
</TABLE>
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
14 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
=========================================================================================
<S> <C> <C> <C>
U.S. AGENCIES AND INSTRUMENTALITIES -- 99.9 %
$ 98,433,000 Federal Farm Credit Bank
mature 8/7/00 to 3/15/01 6.14% to 6.61% $ 96,450,701
1,851,132,000 Federal Home Loan Bank
mature 7/5/00 to 3/12/01 6.13 to 6.64 1,842,121,622
2,074,496,000 Federal Home Loan Mortgage Corp.
mature 7/5/00 to 11/9/00 5.51 to 6.85 2,065,336,089
1,418,611,000 Federal National Mortgage Assocation
mature 7/6/00 to 6/6/01 5.92 to 6.91 1,399,880,268
-----------------------------------------------------------------------------------------
TOTAL U.S. AGENCIES AND
INSTRUMENTALITIES (Cost -- $5,403,788,680) 5,403,788,680
=========================================================================================
REPURCHASE AGREEMENT -- 0.1%
206,817,000 Morgan Stanley Dean Witter & Co., 6.53% due 7/3/00;
Proceeds at maturity -- $206,929,543;
(Fully collateralized by U.S. Treasury Notes,
5.00% to 6.75% due 4/30/01 to 2/15/07;
Market value-- $208,337,674) (Cost -- $206,817,000) 206,817,000
=========================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $5,610,605,680*) $5,610,605,680
=========================================================================================
</TABLE>
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney Money Funds, Inc. 15
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RETIREMENT PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
=======================================================================================
<S> <C> <C> <C>
U.S. AGENCIES AND INSTRUMENTALITIES -- 2.9%
$35,000,000 Federal Home Loan Bank
mature 7/19/00 to 8/16/00 6.13% to 6.47% $34,855,611
15,000,000 Federal National Mortgage Association
matures 8/10/00 6.60 14,897,242
---------------------------------------------------------------------------------------
TOTAL U.S. AGENCIES AND
INSTRUMENTALITIES (Cost -- $49,752,853) 49,752,853
=======================================================================================
BANK NOTES -- 2.0%
25,000,000 Bank of America
mature 12/19/00 to 5/4/01 6.83 to 7.20 25,000,000
10,000,000 First Union National Bank
matures 2/20/01 6.80 10,000,000
---------------------------------------------------------------------------------------
TOTAL BANK NOTES
(Cost -- $35,000,000) 35,000,000
=======================================================================================
MEDIUM-TERM NOTE-- 0.6%
10,000,000 Abbey National PLC
matures 7/28/00 (Cost -- $9,999,738) 5.75 9,999,738
=======================================================================================
COMMERCIAL PAPER -- 64.9%
20,000,000 Alcoa Inc.
matures 8/16/00 6.75 19,837,444
15,000,000 American Express Co.
matures 8/1/00 6.63 14,920,733
15,000,000 ANZ Delaware Inc.
matures 8/15/00 6.61 14,882,825
35,000,000 Asset Securitization Corp.
mature 7/6/00 to 8/10/00 6.61 to 6.69 34,824,833
22,000,000 Atlantis One Funding Corp.
mature 8/23/00 to 12/14/00 6.63 to 6.88 21,648,539
48,000,000 AT&T Corp.
mature 7/10/00 to 8/14/00 6.54 to 6.61 47,871,690
10,000,000 Bank Brussels Lambert
matures 9/5/00 6.74 9,882,311
25,000,000 Bank of America Corp.
mature 10/27/00 to 11/10/00 6.70 to 6.89 24,446,300
10,000,000 Bank of New York
matures 8/4/00 6.63 9,941,689
48,900,000 Bank of Nova Scotia
mature 8/3/00 to 8/7/00 6.61 to 6.65 48,602,251
18,000,000 Barclays U.S. Funding Corp.
matures 7/20/00 6.57 17,944,453
25,000,000 BCI Funding Corp.
mature 7/5/00 to 7/21/00 6.55 to 6.58 24,947,333
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
16 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RETIREMENT PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
=======================================================================================
<S> <C> <C> <C>
COMMERCIAL PAPER -- 64.9% (continued)
$44,000,000 Bell Atlantic Financial Services
mature 7/5/00 to 8/22/00 6.52% to 6.62% $43,768,950
20,000,000 BellSouth Capital Funding Corp.
matures 7/25/00 6.63 19,919,333
25,000,000 British Telecommunications
matures 8/4/00 6.70 24,853,333
25,000,000 CIT Group Holdings Inc.
matures 7/13/00 6.56 24,954,653
17,875,000 Coca-Cola Co.
matures 9/1/00 6.63 17,680,163
22,000,000 Credito Italiano Delaware Inc.
matures 7/26/00 6.64 21,907,093
21,900,000 Cregem North America Inc.
matures 7/3/00 6.59 21,900,000
20,000,000 Daimler Chrysler North America
matures 7/13/00 6.72 19,962,777
20,000,000 Den Danske Corp.
matures 8/7/00 6.66 19,872,055
20,000,000 Dresdner U.S. Finance Inc.
matures 7/14/00 6.68 19,959,300
19,875,000 E.I. du Pont de Nemours & Co.
matures 8/3/00 6.58 19,763,071
20,000,000 Ford Motor Credit
matures 7/13/00 6.62 19,963,333
37,000,000 General Electric Capital Corp.
mature 7/19/00 to 8/23/00 6.62 to 6.64 36,815,376
47,000,000 General Motors Acceptance Corp.
mature 7/10/00 to 8/9/00 6.55 to 6.69 46,799,504
38,000,000 Goldman Sachs & Co.
mature 7/5/00 to 11/1/00 6.58 to 6.85 37,789,267
32,000,000 Halifax PLC
mature 7/3/00 to 7/6/00 6.54 to 6.56 31,990,763
25,000,000 IBM Credit Corp.
matures 7/5/00 6.54 24,990,958
20,000,000 International Lease Finance
matures 7/28/00 6.60 19,908,889
30,000,000 J.P. Morgan & Co.
mature 7/6/00 to 8/31/00 6.52 to 6.71 29,829,688
12,000,000 Lucent Technologies
matures 8/21/00 6.61 11,893,017
26,000,000 Merrill Lynch
mature 8/21/00 to 11/1/00 6.66 to 6.72 25,560,611
20,000,000 Morgan Stanley Dean Witter & Co.
matures 8/16/00 6.64 19,839,644
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney Money Funds, Inc. 17
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RETIREMENT PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
=======================================================================================
<S> <C> <C> <C>
COMMERCIAL PAPER -- 64.9% (continued)
$25,000,000 Nationwide Building Society
matures 8/8/00 6.63% $ 24,836,000
35,000,000 Nestle Capital Corp.
matures 7/14/00 6.62 34,929,417
27,075,000 Preferred Receivables Funding Corp.
mature 7/5/00 to 7/11/00 6.57 to 6.63 27,043,391
30,900,000 Procter & Gamble Co.
mature 7/5/00 to 7/6/00 6.54 to 6.58 30,886,661
10,000,000 Province De Quebec
matures 12/13/00 6.82 9,701,167
10,000,000 Prudential Funding Corp.
matures 7/6/00 6.56 9,994,550
10,000,000 San Paolo U.S. Finance
matures 7/6/00 6.56 9,994,567
25,000,000 Societe Generale
matures 7/5/00 6.56 24,990,931
12,456,000 Transamerica Finance Corp.
matures 7/27/00 6.66 12,401,028
8,318,000 Unifunding Inc.
matures 8/29/00 6.73 8,230,814
17,000,000 Union Bank Of Switzerland
matures 7/3/00 6.75 17,000,000
35,000,000 Wells Fargo Co.
mature 8/7/00 to 9/11/00 6.65 to 6.70 34,647,910
15,000,000 Woolwich Building Society
matures 9/15/00 6.71 14,796,500
---------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost -- $1,109,125,115) 1,109,125,115
=======================================================================================
DOMESTIC CERTIFICATES OF DEPOSIT-- 2.9%
34,000,000 Harris Bank mature 7/24/00 to 8/22/00 6.57 to 6.63 33,999,350
14,900,000 Chase Manhattan Bank
matures 9/5/00 6.70 14,900,000
---------------------------------------------------------------------------------------
TOTAL DOMESTIC CERTIFICATES
OF DEPOSIT (Cost-- $48,899,350) 48,899,350
=======================================================================================
FOREIGN CERTIFICATES OF DEPOSIT-- 17.8%
45,000,000 Bayerische Hypo-und Vereinsbank
mature 7/12/00 to 9/7/00 5.80 to 6.70 44,999,065
40,000,000 Canadian Imperial Bank Commerce
mature 8/16/00 to 8/28/00 6.63 to 6.70 40,000,000
15,000,000 Commerzbank
matures 8/22/00 6.61 15,000,206
20,000,000 Credit Suisse First Boston Corp.
matures 8/2/00 6.70 20,000,165
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
18 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RETIREMENT PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
=======================================================================================
<S> <C> <C> <C>
FOREIGN CERTIFICATES OF DEPOSIT-- 17.8% (continued)
$32,000,000 Deutsche Bank
mature 9/19/00 to 12/1/00 6.35% to 6.90% $ 31,998,824
10,000,000 Hessiche Bank Landesbank
matures 9/29/00 6.22 9,992,905
25,000,000 International Nederlanden Group
mature 11/6/00 to 12/21/00 6.55 to 6.73 25,000,960
10,000,000 Lloyds Bank
matures 9/6/00 6.70 10,000,178
12,000,000 National Westminster PLC
matures 7/10/00 6.20 11,999,798
10,000,000 San Paolo Bank
matures 9/6/00 6.72 10,000,888
10,000,000 Svenska Handelsbanken
matures 7/24/00 6.65 9,999,703
30,000,000 Toronto Dominion
mature 9/28/00 to 2/7/01 6.47 to 6.75 29,993,041
10,000,000 Union Bank of Switzerland
matures 5/3/01 7.07 9,999,212
35,000,000 Westdeutsche Landesbank
mature 9/5/00 to 5/3/01 6.72 to 7.07 35,001,182
---------------------------------------------------------------------------------------
TOTAL FOREIGN CERTIFICATES
OF DEPOSIT (Cost-- $303,986,127) 303,986,127
=======================================================================================
TIME DEPOSITS -- 8.8%
50,000,000 Bank Austriaengellschaft
matures 7/3/00 7.00 50,000,000
50,000,000 Banc One Corp.
matures 7/3/00 7.07 50,000,000
50,000,000 BNP Paribas
matures 7/3/00 7.00 50,000,000
---------------------------------------------------------------------------------------
TOTAL TIME DEPOSITS
(Cost-- $150,000,000) 150,000,000
=======================================================================================
REPURCHASE AGREEMENT -- 0.1%
2,485,000 Morgan Stanley Dean Witter & Co., 6.53% due 7/3/00;
Proceeds at maturity -- $2,486,352;
(Fully collateralized by U.S. Treasury Notes and Bonds,
5.50% to 10.75% due 2/28/03 to 8/15/05;
Market value -- $3,135,007) (Cost -- $2,485,000) 2,485,000
=======================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $1,709,248,183*) $1,709,248,183
=======================================================================================
</TABLE>
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney Money Funds, Inc. 19
<PAGE>
--------------------------------------------------------------------------------
Statements of Assets and Liabilities (unauditied) June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Cash Government Retirement
Portfolio Portfolio Portfolio
-------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments, at amortized cost $ 48,854,878,032 $ 5,610,605,680 $ 1,709,248,183
Cash 637 520 558
Interest receivable 157,756,814 1,805,141 5,090,547
-------------------------------------------------------------------------------------------
Total Assets 49,012,635,483 5,612,411,341 1,714,339,288
-------------------------------------------------------------------------------------------
LIABILITIES:
Dividends payable 169,634,589 18,988,605 5,889,334
Management fees payable 15,936,495 1,936,219 657,210
Distribution fees payable 1,735,326 168,038 62,919
Deferred compensation payable 147,128 25,225 9,727
Accrued expenses 17,275,672 1,212,980 478,345
-------------------------------------------------------------------------------------------
Total Liabilities 204,729,210 22,331,067 7,097,535
-------------------------------------------------------------------------------------------
Total Net Assets $48,807,906,273 $5,590,080,274 $1,707,241,753
===========================================================================================
NET ASSETS:
Par value of capital shares
(50,000,000,000,
10,000,000,000 and
5,000,000,000 shares
authorized, respectively;
par value $0.01 per share) $ 488,085,624 $ 55,900,643 $ 17,072,398
Capital paid in excess of par value 48,320,724,580 5,534,180,318 1,690,167,379
Undistributed net investment income 5,745 -- 1,976
Accumulated net realized loss
from security transactions (909,676) (687) --
-------------------------------------------------------------------------------------------
Total Net Assets $48,807,906,273 $5,590,080,274 $1,707,241,753
===========================================================================================
Shares Outstanding:
Class A 48,629,689,367 5,569,288,407 1,707,239,777
-----------------------------------------------------------------------------------------
Class L 203,258 118,117 --
-----------------------------------------------------------------------------------------
Class Y 28,159,431 20,657,793 --
-----------------------------------------------------------------------------------------
Class Z 150,510,301 -- --
-----------------------------------------------------------------------------------------
Net Asset Value, Per Share
(all classes of shares) $1.00 $1.00 $1.00
===========================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
20 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Operations (unaudited)
--------------------------------------------------------------------------------
For the Six Months Ended June 30, 2000
Cash Government Retirement
Portfolio Portfolio Portfolio
================================================================================
INVESTMENT INCOME:
Interest $1,529,140,299 $167,423,776 $54,349,927
--------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 3) 94,515,303 11,680,157 3,789,055
Distribution fees (Note 3) 24,965,203 2,785,717 884,250
Shareholder and system
servicing fees 24,697,389 1,741,030 1,097,185
Shareholder communications 2,392,000 192,200 202,400
Registration fees 1,565,000 110,400 41,400
Custody 1,105,400 106,720 36,800
Directors' fees 92,100 15,640 6,624
Insurance 60,150 29,340 9,200
Audit and legal 36,830 27,940 20,608
Other 32,290 18,400 7,360
--------------------------------------------------------------------------------
Total Expenses 149,461,665 16,707,544 6,094,882
--------------------------------------------------------------------------------
Net Investment Income 1,379,678,634 150,716,232 48,255,045
--------------------------------------------------------------------------------
Net Realized Gain From
Security Transactions 65,472 -- --
--------------------------------------------------------------------------------
Increase in Net Assets
From Operations $1,379,744,106 $150,716,232 $48,255,045
================================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney Money Funds, Inc. 21
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
--------------------------------------------------------------------------------
For the Six Months Ended June 30, 2000 (unaudited)
and the Year Ended December 31, 1999
Cash Portfolio 2000 1999
================================================================================
OPERATIONS:
Net investment income $ 1,379,678,634 $ 2,025,542,636
Net realized gain 65,472 29,464
--------------------------------------------------------------------------------
Increase in Net Assets From Operations 1,379,744,106 2,025,572,100
--------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS (NOTE 2) (1,379,678,634) (2,025,536,891)
--------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 6):
Net proceeds from sale of shares 135,694,015,586 198,679,971,946
Net asset value of shares issued
for reinvestment of dividends 1,184,525,644 2,050,571,947
Cost of shares reacquired (133,748,003,946) (195,130,900,489)
--------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 3,130,537,284 5,599,643,404
--------------------------------------------------------------------------------
Increase in Net Assets 3,130,602,756 5,599,678,613
NET ASSETS:
Beginning of period 45,677,303,517 40,077,624,904
--------------------------------------------------------------------------------
End of period* $ 48,807,906,273 $ 45,677,303,517
================================================================================
* Includes undistributed net investment income of: $5,745 $5,745
================================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
22 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
--------------------------------------------------------------------------------
For the Six Months Ended June 30, 2000 (unaudited)
and the Year Ended December 31, 1999
Government Portfolio 2000 1999
================================================================================
OPERATIONS:
Net investment income $ 150,716,232 $ 245,816,433
Net realized loss -- (687)
--------------------------------------------------------------------------------
Increase in Net Assets From Operations 150,716,232 245,815,746
--------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS (NOTE 2) (150,716,232) (245,816,433)
FUND SHARE TRANSACTIONS (NOTE 6):
Net proceeds from sale of shares 11,100,874,875 19,683,983,366
Net asset value of shares issued
for reinvestment of dividends 130,147,209 251,441,644
Cost of shares reacquired (11,062,703,546) (19,858,393,187)
--------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 168,318,538 77,031,823
--------------------------------------------------------------------------------
Increase in Net Assets 168,318,538 77,031,136
NET ASSETS:
Beginning of period 5,421,761,736 5,344,730,600
--------------------------------------------------------------------------------
End of period $ 5,590,080,274 $ 5,421,761,736
================================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney Money Funds, Inc. 23
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
--------------------------------------------------------------------------------
For the Six Months Ended June 30, 2000 (unaudited)
and the Year Ended December 31, 1999
Retirement Portfolio 2000 1999
================================================================================
OPERATIONS:
Net investment income $ 48,255,045 $ 77,273,358
--------------------------------------------------------------------------------
Increase in Net Assets From Operations 48,255,045 77,273,358
--------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS (NOTE 2) (48,255,045) (77,273,358)
--------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 6):
Net proceeds from sale of shares 3,927,848,865 6,301,771,167
Net asset value of shares issued
for reinvestment of dividends 41,617,498 78,916,786
Cost of shares reacquired (3,965,924,478) (6,359,076,721)
--------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 3,541,885 21,611,232
--------------------------------------------------------------------------------
Increase in Net Assets 3,541,885 21,611,232
NET ASSETS:
Beginning of period 1,703,699,868 1,682,088,636
--------------------------------------------------------------------------------
End of period* $1,707,241,753 $1,703,699,868
================================================================================
* Includes undistributed net investment income of: $1,976 $1,976
================================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
24 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
--------------------------------------------------------------------------------
1. Significant Accounting Policies
Smith Barney Money Funds, Inc. ("Fund"), a Maryland corporation, is registered
under the Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund consists of three separate investment
portfolios ("Portfolios"): the Cash Portfolio, the Government Portfolio and the
Retirement Portfolio.
The significant accounting policies consistently followed by the Fund are: (a)
transactions in money market instruments and U.S. government obligations are
accounted for on trade date; (b) the Fund uses the amortized cost method for
valuing investments; accordingly, the cost of securities plus accreted discount,
or minus amortized premium approximates value; (c) interest income is recorded
on the accrual basis; (d) direct expenses are charged to each Portfolio and each
class; management fees and general fund expenses are allocated on the basis of
relative net assets; (e) gains or losses on the sale of securities are
calculated by using the specific identification method; (f) the Portfolios
intend to comply with the applicable provisions of the Internal Revenue Code of
1986, as amended, pertaining to regulated investment companies and to make
distributions of taxable income sufficient to be relieved from substantially all
Federal income and excise taxes; and (g) estimates and assumptions are required
to be made regarding assets, liabilities and changes in net assets resulting
from operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ.
2. Dividends
Each Portfolio declares and records a dividend of substantially all of its net
investment income on each business day. Such dividends are paid or reinvested
monthly in each respective Portfolio's shares on the payable date.
3. Management Agreement and Other Transactions
SSB Citi Fund Management LLC ("SSBC"), a subsidiary of Salomon Smith Barney
Holdings, Inc. ("SSBH") which, in turn, is a subsidiary of Citigroup Inc.
("Citigroup"), acts as investment manager to the Fund. As compensation for its
services, each Portfolio pays SSBC a daily fee calculated at the following
rates: Cash Portfolio: 0.45% on the first $6.0 billion of average daily net
assets, 0.425% on the next $6.0 billion, 0.40% on the next $6.0 billion and
0.35% on the average daily net assets in excess of $18.0 billion; Government
Portfolio: 0.45% on the first $2.5 billion of the average daily net assets,
0.40% on the next $2.5 billion and 0.35% on average daily net assets in excess
of $5.0 billion; and Retirement Portfolio: 0.45% on the first $1.0 billion of
average daily net assets,
--------------------------------------------------------------------------------
Smith Barney Money Funds, Inc. 25
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
0.40% on the next $1.0 billion and 0.35% on average daily net assets in excess
of $2.0 billion. These fees are calculated daily and paid monthly.
Citi Fiduciary Trust Company ("CFTC"), formerly known as Smith Barney Private
Trust Company, another subsidiary of Citigroup, acts as the Fund's transfer
agent and PFPC Global Services ("PFPC") acts as the sub-transfer agent. CFTC
receives account fees and asset-based fees that vary according to the account
size and type of account, PFPC is responsible for shareholder recordkeeping and
financial processing for all shareholder accounts. For the six months ended June
30, 2000, the Fund paid transfer agent fees of $16,552,907, $1,363,104 and
$1,063,902 for the Cash, Government and Retirement Portfolios, respectively, to
CFTC.
Effective June 5, 2000, Salomon Smith Barney Inc. ("SSB"), another subsidiary of
SSBH, became the Fund's distributor replacing CFBDS, Inc. In addition, SSB acts
as the primary broker for the Fund's portfolio agency transactions. Certain
other broker-dealers continue to sell Fund shares to the public as members of
the selling group.
Pursuant to a Distribution Plan, each Portfolio makes payments to SSB, for
assistance in distributing Class A and L shares, calculated at an annual rate of
0.10% of average daily net assets of each class, respectively.
For the six months ended June 30,2000,total Distribution Plan fees incurred
were:
Portfolio Class A Class L
================================================================================
Cash $24,965,037 $166
Government 2,785,658 59
Retirement 884,250 --
================================================================================
All officers and one Director of the Fund are employees of SSB.
4. Capital Loss Carryforward
At December 31, 1999, the Cash Portfolio and the Government Portfolio had, for
Federal tax purposes, approximately $1,245,000 and $1,000, respectively,of
capital loss carryforwards available to offset future capital gains. To the
extent that these carryforward losses are used to offset capital gains, it is
probable that the gains so offset will not be distributed. The amount and
expiration of the carryforwards are indicated below. Expiration occurs on
December 31 of the year indicated:
2000 2001 2007
================================================================================
Cash Portfolio $114,000 $1,131,000 --
--------------------------------------------------------------------------------
Government Portfolio -- -- $ 1,000
================================================================================
--------------------------------------------------------------------------------
26 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
5. Repurchase Agreements
The Fund purchases (and its custodian takes possession of) U.S. government
securities from banks and securities dealers subject to agreements to resell the
securities to the sellers at a future date (generally, the next business day) at
an agreed-upon higher repurchase price. The Fund requires continual maintenance
of the market value of the collateral in amounts at least equal to the
repurchase price.
6. Capital Shares
The Fund offers multiple classes of shares within the Cash and Government
Portfolios. Class A and Class Y shares can be purchased directly by investors;
Class L shares can only be purchased by participants in the Smith Barney 401(k)
Program; and, Class Z shares can only be purchased by participants in the Smith
Barney Employee 401(k) Program.
Transactions in shares of each Portfolio were as follows:
Six Months Ended Year Ended
Cash Portfolio June 30, 2000 December 31, 1999
================================================================================
Class A
Shares sold 135,331,671,162 198,147,351,264
Shares issued on reinvestment 1,180,015,056 2,042,125,985
Shares reacquired (133,364,252,907) (194,624,622,047)
--------------------------------------------------------------------------------
Net Increase 3,147,433,311 5,564,855,202
================================================================================
Class L
Shares sold 153,557 544,299
Shares issued on reinvestment 7,903 21,431
Shares reacquired (540,532) (395,544)
--------------------------------------------------------------------------------
Net Increase (Decrease) (379,072) 170,186
================================================================================
Class Y
Shares sold 277,283,187 354,140,105
Shares issued on reinvestment 1,026,126 3,500,399
Shares reacquired (317,551,315) (448,769,869)
--------------------------------------------------------------------------------
Net Decrease (39,242,002) (91,129,365)
================================================================================
Class Z
Shares sold 84,907,680 177,936,278
Shares issued on reinvestment 3,476,559 4,924,132
Shares reacquired (65,659,192) (57,113,029)
--------------------------------------------------------------------------------
Net Increase 22,725,047 125,747,381
================================================================================
--------------------------------------------------------------------------------
Smith Barney Money Funds, Inc. 27
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
Six Months Ended Year Ended
Government Portfolio June 30, 2000 December 31, 1999
================================================================================
Class A
Shares sold 11,070,271,477 19,504,048,114
Shares issued on reinvestment 129,583,808 250,660,045
Shares reacquired (11,044,109,375) (19,625,167,349)
--------------------------------------------------------------------------------
Net Increase 155,745,910 129,540,810
================================================================================
Class L
Shares sold 8,784 18,659
Shares issued on reinvestment 2,795 7,304
Shares reacquired (6,790) (119,109)
--------------------------------------------------------------------------------
Net Increase (Decrease) 4,789 (93,146)
================================================================================
Class Y
Shares sold 30,594,614 179,814,769
Shares issued on reinvestment 560,606 620,607
Shares reacquired (18,587,381) (176,004,288)
--------------------------------------------------------------------------------
Net Increase 12,567,839 4,431,088
================================================================================
Class Z
Shares sold -- 101,824
Shares issued on reinvestment -- 153,688
Shares reacquired -- (57,102,441)
--------------------------------------------------------------------------------
Net Decrease -- (56,846,929)
================================================================================
Retirement Portfolio
================================================================================
Class A
Shares sold 3,927,848,865 6,301,771,167
Shares issued on reinvestment 41,617,498 78,916,786
Shares reacquired (3,965,924,478) (6,359,076,721)
--------------------------------------------------------------------------------
Net Increase 3,541,885 21,611,232
================================================================================
+ As of June 30, 1999, Class Z shares were fully redeemed.
--------------------------------------------------------------------------------
28 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended December 31, except where noted:
<TABLE>
<CAPTION>
Class A Shares
------------------------------------------------------------------------------
Cash Portfolio 2000(1) 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Net investment income 0.027 0.046 0.050 0.050 0.050 0.054
Dividends from
net investment income (0.027) (0.046) (0.050) (0.050) (0.050) (0.054)
---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
Total Return 2.77%++ 4.73% 5.07% 5.12% 4.98% 5.53%
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (billions) $49 $45 $40 $31 $27 $23
---------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(2) 0.60%+ 0.62% 0.63% 0.64% 0.62% 0.62%
Net investment income 5.52+ 4.63 4.95 5.01 4.87 5.39
===========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class L Shares
------------------------------------------------------------------------------
Cash Portfolio 2000(1) 1999 1998(3) 1997 1996 1995
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
Net investment income 0.028 0.047 0.050 0.051 0.050 0.054
Dividends from
net investment income (0.028) (0.047) (0.050) (0.051) (0.050) (0.054)
---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
Total Return 2.79%++ 4.78% 5.12% 5.17% 4.98% 5.53%
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $203 $582 $412 $2,016 $2,152 $1,737
---------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
---------------------------------------------------------------------------------------------------------------------------
Expenses(2) 0.56%+ 0.57% 0.59% 0.59% 0.62% 0.62%
Net investment income 5.56+ 4.70 5.07 5.05 4.87 5.39
===========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class Y Shares
------------------------------------------------------------------------------
Cash Portfolio 2000(1) 1999 1998 1997 1996 1995
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
Net investment income 0.028 0.048 0.052 0.052 0.051 0.054
Dividends from
net investment income (0.028) (0.048) (0.052) (0.052) (0.051) (0.054)
---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
Total Return 2.87%++ 4.91% 5.29% 5.32% 5.09% 5.50%
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $28 $67 $159 $64 $52 $30
---------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(2) 0.41%+ 0.42% 0.42% 0.43% 0.52% 0.51%
Net investment income 5.71+ 4.76 5.17 5.22 4.97 5.29
===========================================================================================================================
</TABLE>
(1) For the six months ended June 30, 2000 (unaudited).
(2) As a result of a voluntary expense limitation, expense ratios will not
exceed 0.70%.
(3) On June 12, 1998, Class C shares were renamed Class L shares.
++ Total return is not annualized, as it may not be representative of total
return for the year.
+ Annualized.
--------------------------------------------------------------------------------
Smith Barney Money Funds, Inc. 29
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended December 31, except where noted:
<TABLE>
<CAPTION>
Class Z Shares
------------------------------------------------------------------------------
Cash Portfolio 2000(1) 1999 1998 1997 1996 1995
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
Net investment income 0.028 0.048 0.052 0.052 0.051 0.055
Dividends from
net investment income (0.028) (0.048) (0.052) (0.052) (0.051) (0.055)
---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
Total Return 2.87%++ 4.91% 5.29% 5.33% 5.06% 5.63%
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $150,512 $127,787 $2 $6 $6 $5
---------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(2) 0.41%+ 0.41% 0.43% 0.44% 0.53% 0.52%
Net investment income 5.71+ 4.86 5.21 5.21 4.96 5.49
===========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class A Shares
------------------------------------------------------------------------------
Government Portfolio 2000(1) 1999 1998 1997 1996 1995
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
Net investment income 0.027 0.045 0.049 0.049 0.048 0.053
Dividends from
net investment income (0.027) (0.045) (0.049) (0.049) (0.048) (0.053)
---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
Total Return 2.71%++ 4.60% 5.00% 5.04% 4.89% 5.45%
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (billions) $6 $5 $5 $5 $4 $4
---------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(2) 0.61%+ 0.61% 0.60% 0.61% 0.61% 0.60%
Net investment income 5.40+ 4.50 4.88 4.92 4.78 5.31
===========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class L Shares
------------------------------------------------------------------------------
Government Portfolio 2000(1) 1999 1998(3) 1997 1996 1995
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
Net investment income 0.027 0.045 0.049 0.049 0.048 0.053
Dividends from
net investment income (0.027) (0.045) (0.049) (0.049) (0.048) (0.053)
---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
Total Return 2.72%++ 4.62% 5.01% 5.04% 4.89% 5.46%
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $118 $113 $206 $502 $982 $1,459
---------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(2) 0.59%+ 0.59% 0.59% 0.61% 0.61% 0.60%
Net investment income 5.41+ 4.47 4.94 4.90 4.78 5.36
===========================================================================================================================
</TABLE>
(1) For the six months ended June 30, 2000 (unaudited).
(2) As a result of a voluntary expense limitation, expense ratios will not
exceed 0.70%.
(3) On June 12, 1998, Class C shares were renamed Class L shares.
++ Total return is not annualized, as it may not be representative of total
return for the year.
+ Annualized.
--------------------------------------------------------------------------------
30 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended December 31, except where noted:
<TABLE>
<CAPTION>
Class Y Shares
------------------------------------------------------------------------------
Government Portfolio 2000(1) 1999 1998 1997 1996 1995
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
Net investment income 0.027 0.047 0.050 0.050 0.049 0.054
Dividends from
net investment income (0.027) (0.047) (0.050) (0.050) (0.049) (0.054)
---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
Total Return 2.79%++ 4.78% 5.13% 5.14% 4.99% 5.55%
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $20,658 $8,090 $3,659 $7,430 $51,873 $5,376
---------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(2) 0.45%+ 0.45% 0.48% 0.51% 0.51% 0.50%
Net investment income 5.55+ 4.64 5.06 4.98 4.88 5.51
===========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Class A Shares
------------------------------------------------------------------------------
Retirement Portfolio 2000(1) 1999 1998 1997 1996 1995
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
Net investment income(3) 0.027 0.046 0.049 0.049 0.048 0.053
Dividends from
net investment income (0.027) (0.046) (0.049) (0.049) (0.048) (0.053)
---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
Total Return 2.75%++ 4.65% 5.04% 5.03% 4.86% 5.42%
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $1,707 $1,704 $1,682 $1,367 $1,355 $1,280
---------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(2)(3) 0.70%+ 0.69% 0.70% 0.71% 0.71% 0.72%
Net investment income 5.53+ 4.55 4.92 4.92 4.75 5.28
===========================================================================================================================
</TABLE>
(1) For the six months ended June 30, 2000 (unaudited).
(2) As a result of a voluntary expense limitation, expense ratios will not
exceed 0.70%.
(3) The investment manager waived a portion of their management fees for the
years ended December 31, 1999 and December 31, 1998. If such fees were not
waived, the per share decrease on net investment income and the actual
expense ratio would have been as follows:
Per Share Decreases to Expense Ratios
Net Investment Income Without Reimbursement
---------------------------- --------------------------
1999 $0.0001 0.71%
1998 0.0002 0.72
++Total return is not annualized, as it may not be representative of total
return for the year.
+ Annualized.
--------------------------------------------------------------------------------
Smith Barney Money Funds, Inc. 31
<PAGE>
(This page intentionally left blank.)
<PAGE>
[LOGO OF SALOMON SMITH BARNEY]
Directors
Lee Abraham
Allan J. Bloostein
Jane F. Dasher
Donald R. Foley
Richard E. Hanson,Jr.
Paul Hardin
Heath B. McLendon, Chairman
Roderick C. Rasmussen
John P. Toolan
Joseph H. Fleiss, Emeritus
Officers
Heath B. McLendon
President and
Chief Executive Officer
Lewis E. Daidone
Senior Vice President
and Treasurer
Phyllis M. Zahorodny
Vice President
Martin R. Hanley
Vice President
Irving P. David
Controller
Christina T. Sydor
Secretary
Investment Manager
SSB Citi Fund Management LLC
Distributor
Salomon Smith Barney, Inc.
Custodian
PFPC Trust Company
Transfer Agent
Citi Fiduciary Trust Company
125 Broad Street, 11(th)Floor
New York, New York 10004
Sub-Transfer Agent
PFPC Global Fund Services
P.O. Box 9699
Providence, Rhode Island 02940-9699
This report is submitted for the general
information of the shareholders of Smith
Barney Money Funds, but it may also be
used as sales literature when preceded or
accompanied by the current Prospectus
which gives details about changes,
expenses, investment objectives and
operating policies of the Portfolios. If
used as sales material after September 30,
2000, this report must be accompanied by
performance information for the most
recently completed calendar quarter.
Salomon Smith Barney is a service mark
of Salomon Smith Barney Inc.
Smith Barney
Money Funds, Inc.
388 Greenwich Street, MF-2
New York, New York 10013
www.smithbarney.com/mutualfunds
FD0622 8/00
