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SALOMON BROTHERS
OPPORTUNITY FUND INC
PROSPECTUS
December 29, 2000
The Securities and Exchange Commission has not approved or disapproved
these securities or passed upon the adequacy of this prospectus. Any
representation to the contrary is a criminal offense.
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CONTENTS
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Investments, risks and performance.......................... 2
More on the Fund's investments.............................. 4
Management.................................................. 6
Buying shares............................................... 6
Redeeming shares............................................ 8
Other things to know about share transactions............... 10
Dividends, distributions and taxes.......................... 11
Financial highlights........................................ 12
</TABLE>
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YOU SHOULD KNOW
An investment in the Fund is not a bank deposit and is not insured or guaranteed
by the FDIC or any other government agency.
Salomon Brothers Opportunity Fund Inc - 1
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INVESTMENTS, RISKS AND PERFORMANCE
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INVESTMENT The Fund seeks to achieve above average long-term capital
OBJECTIVE appreciation. Current income is a secondary objective.
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KEY The Fund invests primarily in common stocks and securities
INVESTMENTS convertible into common stock such as convertible preferred
stock or convertible debt securities.
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HOW THE The manager emphasizes individual security selection while
MANAGER varying the Fund's investments across industries, which may
SELECTS THE help to reduce risk. The manager evaluates companies of all
FUND'S sizes -- from established large capitalization companies to
INVESTMENTS young start-up companies. The manager seeks to identify
those companies whose securities are trading at prices which
are below the company's intrinsic value. This style of stock
selection is known as 'value' investing. The manager employs
fundamental analysis to analyze each company in detail,
ranking its management, strategy and competitive market
position.
The manager currently pursues a strategy of retaining
unrealized long-term capital gain and avoiding the tax
impact of realizing such gain. This strategy reflects the
belief of the manager that these securities continue to have
long-term growth potential.
In selecting individual companies for investment, the
manager considers how the following would affect a company's
earnings, the market price of its shares and the market's
evaluation of the company's future earnings:
Changes in management, policies, corporate control or
capitalization;
Changes in technology, marketing or production, the
development of new products or services or the demand
for existing products or services;
The effect of recent and anticipated capital
expenditures; and
The effect of social, economic, political, legal and
international developments.
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PRINCIPAL RISKS While investing in equity securities historically has
OF INVESTING IN produced greater average returns than investments in fixed
THE FUND income securities, equity investments may also involve added
risks. Investors could lose money on their investment in the
Fund, or the Fund may not perform as well as other
investments, if any of the following occurs:
U.S. stock markets decline.
Value stocks fall out of favor with investors.
An adverse event, such as an unfavorable earnings
report, negatively affects the stock price of a
company in which the Fund invests.
The manager's judgment about the attractiveness,
value or potential appreciation of a particular
stock proves to be incorrect.
The Fund is not diversified, which means that it can invest
a higher percentage of its assets in any one issuer than a
diversified fund. Being non-diversified may magnify the
Fund's losses from events affecting a particular issuer.
As a result of the manager's strategy of retaining
unrealized capital gains, the Fund currently has a
substantial amount of net unrealized appreciation. On August
31, 2000, the amount of the net unrealized appreciation was
approximately $129,000,000, representing approximately 61%
of the Fund's net assets. If the manager chooses to sell
certain portfolio securities to take advantage of lower
long-term capital gains rates to invest in other attractive
investment opportunities the Fund may recognize sizeable
gains, which the Fund will distribute to stockholders who
will be taxed on those distributed gains. See 'Dividends,
Distributions and Income Taxes.'
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Salomon Brothers Opportunity Fund Inc - 2
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PERFORMANCE
The bar chart indicates the risks of
investing in the Fund by showing
changes in the Fund's performance
from year to year. Past performance
does not necessarily indicate how
the Fund will perform in the future.
QUARTERLY RETURNS:
Highest: 17.53% in 1st quarter 1991
Lowest: - 18.19% in 3rd quarter
1990
YEAR TO DATE: 18.90%
through 9/30/00
[BAR GRAPH]
% TOTAL RETURN
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90 91 92 93 94 95 96 97 98 99
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
-15.99 30.60 13.87 12.82 0.81 35.13 19.57 33.0 4.86 0.87
</TABLE>
Calendar years ended December 31
TOTAL RETURN
The bar chart shows the
performance of the
Fund's shares for each
of the past 10 years.
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PERFORMANCE TABLE
THIS TABLE ASSUMES REDEMPTION OF SHARES AT THE END OF THE PERIOD, AND THE
REINVESTMENT OF DISTRIBUTIONS AND DIVIDENDS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS (CALENDAR YEARS ENDED DECEMBER 31, 1999)
1 5 10
YEAR YEARS YEARS
<S> <C> <C> <C>
Fund 0.87 17.85 12.44
S&P 500 Index 21.03 28.54 18.19
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COMPARATIVE
PERFORMANCE
The table indicates the
risk of investing in
the Fund by comparing
the average annual
total return of the
Fund for the periods
shown to that of the
Standard & Poor's 500
Stock Index, a broad-
based unmanaged index
of widely held common
stocks.
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FEE TABLE
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SHAREHOLDER FEES (PAID DIRECTLY FROM YOUR INVESTMENT)
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Maximum sales charge on purchases (as a percentage of
offering price) None
Maximum deferred sales charge on redemptions (as a
percentage of amount redeemed) None
ANNUAL FUND OPERATING EXPENSES (PAID BY THE FUND AS A % OF NET ASSETS)
Management fees 1.00%
Distribution and service (12b-1) fee None
Other expenses 0.11%
Total annual fund operating expenses 1.11%
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FEES AND EXPENSES
This table sets forth
the fees and expenses
you will pay if you
Invest in shares of the
Fund.
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EXAMPLE
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NUMBER OF YEARS YOU OWN YOUR SHARES 1 YEAR 3 YEARS 5 YEARS 10 YEARS
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Your costs would be $113 $353 $612 $1,352
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The example assumes: You invest $10,000 for the period shown
You reinvest all distributions and dividends without a
sales charge
The Fund's operating expenses remain the same
Your investment has a 5% return each year
Redemption of your shares at the end of the period
This example helps you
compare the cost of
investing in the Fund
with other mutual
funds. Your actual cost
may be higher or lower.
Salomon Brothers Opportunity Fund Inc - 3
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MORE ON THE FUND'S INVESTMENTS
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ADDITIONAL The Fund's investment objective and its principal investment
INVESTMENTS AND strategies and risks are described under 'Investments, Risks
INVESTMENT and Performance.' This section provides additional
TECHNIQUES information about the Fund's investments and certain
portfolio management techniques the Fund may use. More
information about the Fund's investments and portfolio
management techniques, some of which entail risks, is
included in the statement of additional information (SAI).
Any policy or limitation for the Fund that is expressed as a
percentage of assets is considered only at the time of
purchase of portfolio securities. The policy will not be
violated if these limitations are exceeded because of
changes in the market value of the Fund's assets or for any
other reason.
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HIGH YIELD, LOWER The Fund may invest up to 5% of its net assets in fixed
QUALITY SECURITIES income securities that are high yield, lower quality
securities rated by a rating organization below its top four
long-term rating categories (i.e., below investment grade)
or unrated securities determined by the manager to be of
equivalent quality. These securities are commonly referred
to as 'junk bonds.' The issuers of lower quality bonds may
be highly leveraged and have difficulty servicing their
debt, especially during prolonged economic recessions or
periods of rising interest rates. The prices of lower
quality securities are volatile and may go down due to
market perceptions of deteriorating issuer creditworthiness
or economic conditions. Lower quality securities may become
illiquid and hard to value in down markets.
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FOREIGN AND The Fund may invest without limit in foreign securities and
EMERGING MARKET American Depository Receipts which are publicly traded in
INVESTMENTS the U.S. and up to 5% of its net assets in foreign
securities which are not publicly traded in the U.S. The
Fund's investments in securities of foreign issuers involve
greater risk than investments in securities of U.S. issuers.
Many foreign countries the Fund may invest in have markets
that are less liquid and more volatile than markets in the
U.S. In some foreign countries, less information is
available about foreign issuers and markets because of less
rigorous accounting and regulatory standards than in the
U.S. Currency fluctuations could erase investment gains or
add to investment losses. The risks of investing in foreign
securities are greater for securities of emerging market
issuers because political or economic instability, lack of
market liquidity, and negative government actions like
currency controls or seizure of private businesses or
property are more likely.
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BORROWING MONEY The Fund may borrow money from banks for either investment
or temporary purposes. Borrowings (excluding temporary
borrowings) may be secured by up to 33 1/3% of the value of
the Fund's total assets. The Fund may borrow an additional
amount of up to 5% of the Fund's total assets. While
borrowing creates an opportunity for increased return by
leveraging the Fund's portfolio, it creates special risks.
Borrowing may exaggerate changes in the net asset value of
the Fund's shares and in the return on the Fund's portfolio.
Although the principal amount of any borrowing will be
fixed, the Fund's assets may change in value during the time
the borrowing is outstanding. The Fund may be required to
liquidate portfolio securities at a time when it would be
disadvantageous to do so in order to make payments with
respect to any borrowing, which could affect the investment
manager's strategy. An increase in interest rates could
reduce the value of the Fund's shares by increasing the
Fund's interest expense. To date, the Fund has never
borrowed.
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Salomon Brothers Opportunity Fund Inc - 4
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SECURITIES LENDING The Fund may lend portfolio securities representing up to
10% of total assets in order to increase its net investment
income. The loans are continuously secured by cash or liquid
securities equal to no less than the market value,
determined daily, of the securities loaned. The risks in
lending securities consist of possible delay in receiving
additional collateral, delay in recovery of securities when
the loan is called or possible loss of collateral should the
borrower fail financially.
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DERIVATIVES AND The Fund may, but need not, use derivative contracts, such
HEDGING TECHNIQUES as options on securities and securities indices for any of
the following purposes:
To hedge against the economic impact of adverse changes
in the market value of its securities due to changes in
stock market prices or fluctuations in exchange rates
As a substitute for buying or selling securities
To enhance the Fund's return
A derivative contract will obligate or entitle a fund to
deliver or receive an asset or cash payment that is based on
the change in value of one or more securities, currencies or
indices. Even a small investment in derivative contracts can
have a big impact on a fund's stock market exposure.
Therefore, using derivatives can disproportionately increase
losses and reduce opportunities for gains when stock prices
are changing. A fund may not fully benefit from or may lose
money on derivatives if changes in their value do not
correspond accurately to changes in the value of the Fund's
holdings. The other parties to certain derivative contracts
present the same types of credit risk as issuers of fixed
income securities. Derivatives can also make a fund less
liquid and harder to value, especially in declining markets.
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TEMPORARY DEFENSIVE The Fund may depart from its principal investment strategies
INVESTING in response to adverse market, economic or political
conditions by taking temporary defensive positions in all
types of money market and short-term debt securities. If the
Fund takes a temporary defensive position, it may be unable
to achieve its investment goal.
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PORTFOLIO TURNOVER While the Fund has traditionally had very low portfolio
turnover, the Fund may engage in active and frequent trading
to achieve its principal investment strategies. Frequent
trading also increases transaction costs, which could
detract from a fund's performance.
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Salomon Brothers Opportunity Fund Inc - 5
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MANAGEMENT
Salomon Brothers Asset Management Inc is the investment manager for the Fund.
Together with its affiliates, the manager provides a broad range of fixed
income and investment advisory services to various individuals located
throughout the world. The manager's principal address is 7 World Trade Center,
New York, New York 10048. It is a wholly-owned subsidiary of Citigroup, Inc.
Citigroup businesses produce a broad range of financial services -- asset
management, banking and consumer finance, credit and charge cards, insurance,
investments, investment banking and trading -- and use diverse channels to make
them available to consumer and corporate customers around the world. As of
September 30, 2000, the manager and its affiliates managed approximately $28.7
billion of assets.
Irving G. Brilliant is primarily responsible for day-to-day management of the
Funds's portfolio. Mr. Brilliant has been the Fund's Chairman and portfolio
manager since 1979. Since 1990, he has been a Director of the manager. George
Williamson serves as co-portfolio manager, along with Mr. Brilliant.
Mr. Williamson has been a Director of the manager since 1999. Prior to 1999,
he was a Vice President of the manager.
As compensation for its services, the Fund pays the manager a monthly fee at
the annual rate of 1% of the Fund's average daily net assets. Except for the
expenses paid by the manager that are described herein, the Fund bears all
costs of its operations.
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DISTRIBUTOR CFBDS, Inc. a registered broker-dealer, serves as the Fund's
distributor.
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ADMINISTRATOR SSB Citi Fund Management LLC ('SSB Citi'), an affiliate of
the manager, serves as administrator for the Fund. As
compensation for its services and at no additional cost to
the Fund, the manager pays SSB Citi a fee each month at an
annual rate of .05% of the average daily value of the Fund's
net assets.
BUYING SHARES
BUYING SHARES Shares may be purchased at net asset value without a
BY MAIL sales charge.
You may make The minimum initial investment is $1,000 and subsequent
subsequent investments require a minimum of $100. For Individual
purchases by mail Retirement Accounts and Self- Employed Retirement Plans
or, if you elect, (formerly, Keogh Plans), the minimum initial investment is
by telephone $250. In addition, an account can be established with a
minimum of $50 if such account will be receiving regular
periodic investments through the Automatic Investment
Plan. See 'Automatic Investment Plan.'
Shares of the Fund may be initially purchased through PFPC
Global Fund Services, Inc. ('PFPC' or the 'transfer agent')
by completing a Purchase Application and forwarding it to
the transfer agent. Shares may also be purchased from
selected dealers in accordance with procedures established
by the dealer. The dealer may charge a fee for executing
your order. The Fund reserves the right to reject any
purchase order in whole or in part.
Subsequent investments may be made by mailing a check to the
transfer agent, along with the detachable stub from your
Statement of Account (or a letter providing the account
number) or through a selected dealer. Your check should be
made payable to Salomon Brothers Funds. If an investor's
purchase check is not collected, the purchase will be
cancelled and the transfer agent will charge a $10 fee to
the shareholder's account. There is a ten day hold on all
checks and no redemptions are allowed until the proceeds
from the check clears.
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Salomon Brothers Opportunity Fund Inc - 6
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Write the transfer agent at the following address:
Salomon Brothers Opportunity Fund Inc
c/o PFPC
P.O. Box 9764
Providence, RI 02940-9764
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BUYING SHARES Subsequent investments may also be made by wiring funds to
BY WIRE the transfer agent. Prior notification by telephone is not
required. You should instruct the wiring bank to transmit
the specified amount in federal funds to:
Boston Safe Deposit and Trust Company
Boston, MA
ABA No. 011-001-234
Account #142743
Attn: Salomon Brothers Opportunity
Fund Inc
Name of Account:
Account # (as assigned):
To ensure prompt credit to their accounts, investors or
their dealers should call (800) 446-1013 with a reference
number for the wire. Shareholders should note that their
bank may charge a fee in connection with transferring money
by bank wire.
Orders for the purchase of Fund shares received by selected
dealers by the close of regular trading on the New York
Stock Exchange (normally 4:00 p.m. Eastern time) on any day
that the Fund calculates its net asset value and either
transmitted to PFPC through the facilities of the National
Securities Clearing Corporation ('NSCC') by 7:00 p.m., New
York time, on that day will be priced according to the net
asset value determined on that day. Otherwise, the orders
will be priced as of the time the net asset value is next
determined. It is the dealers' responsibility to ensure that
orders are transmitted so as to be received by PFPC through
the facilities of NSCC prior to the close of its business
day. Any loss resulting from a dealer's failure to submit an
order within the prescribed time frame will be borne by that
dealer.
Funds transmitted by a wire system other than the Federal
Reserve Wire System generally take one business day to be
converted into federal funds. In those cases in which an
investor pays for shares by a check drawn on a member bank
of the Federal Reserve System, federal funds generally will
become available on the business day after the check is
deposited. Checks drawn on banks which are not members of
the Federal Reserve System or foreign banks may take
substantially longer to be converted into federal funds.
AUTOMATIC You may authorize the transfer agent to automatically
INVESTMENT transfer funds on a periodic basis (monthly, alternative
PLAN months, quarterly) from a regular bank account or other
financial institution to buy shares of the Fund. On or about
the 10th of the month, the Fund will debit the bank account
in the specified amount (minimum of $25 per draft) and the
proceeds will be invested at the applicable offering price
determined on the date of the debit. In order to set up a
plan, your bank must be a member of the Automated Clearing
House.
Amounts transferred should be at least $25 monthly.
If you do not have sufficient funds in your bank account on
a transfer date, the transfer agent may charge you a fee.
For more information, consult the SAI.
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Salomon Brothers Opportunity Fund Inc - 7
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REDEEMING SHARES
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REDEMPTIONS BY You may redeem some or all of your shares by sending your
MAIL redemption request in proper form to:
PFPC Global Fund Services, Inc.
c/o Salomon Brothers Opportunity Fund
P.O. Box 9764
Providence, RI 02940-9764
Generally, a properly The written request for redemption must be in good order.
completed Redemption This means that you have provided the following information.
Form with any required Your request will not be processed without this information.
signature guarantee is
all that is required Account number
for a redemption. In
some cases, however, Dollar amount or number of shares to redeem
other documents may be
necessary. Signature of each owner exactly as the account is registered
Other documentation required by the transfer agent
To be in good order, your request must include a signature
guarantee if:
The proceeds of the redemption exceed $50,000
The proceeds are not paid to the record owner(s) at the
record address
The shareholder(s) has had an address change in the past 45
days
The shareholder(s) is a corporation, sole proprietor,
partnership, trust or fiduciary
You can obtain a signature guarantee from most banks,
dealers, brokers, credit unions and federal savings and
loans, but not from a notary public.
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REDEMPTIONS BY You may redeem shares by fax only if a signature guarantee
FAX or other documentary evidence is not required. Redemption
requests should be properly signed by all owners of the
account and faxed to the transfer agent at (508) 871-9503.
If fax redemptions are not available for any reason, you may
use the Fund's redemption by mail procedure described above.
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REDEMPTION In all cases, your redemption price is the net asset value
PAYMENTS next determined after your request is received in good
Any request that your order. The Fund does not charge a redemption fee. Redemption
redemption proceeds be proceeds normally will be sent within seven days. However,
sent to a destination if you recently purchased your shares by check, your
other than your bank redemption proceeds will not be sent to you until your
account or address of original check clears. Your redemption proceeds can be sent
record must be in by check to your address of record or by wire transfer to a
writing and must bank account designated on your application.
include signature
guarantees. The Fund may suspend the right of redemption during any
period when: (a) trading on the NYSE is restricted or the
NYSE is closed, other than customary weekend and holiday
closings; (b) the SEC has by order permitted such
suspension; or (c) an emergency exists, as defined by rules
of the SEC, making disposal of portfolio securities or
determination of the value of net assets of the Fund not
reasonably practicable.
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REDEMPTIONS THROUGH You may transmit your redemption request to selected dealers
SELECTED DEALERS with which the distributor has entered into sales agreements
for the purchase of shares of the funds. Redemption orders
received by these dealers before the New York Stock Exchange
closes and which are transmitted to the transfer agent prior
to the close of its business day (normally 5:00 p.m. Eastern
time) are effective that day. It is the responsibility of
the dealer to transmit orders on a timely basis to the
transfer agent. The dealer may charge you a fee for
executing your order.
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Salomon Brothers Opportunity Fund Inc - 8
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REDEMPTIONS BY You may redeem shares by wire in amounts of $500 to $50,000
WIRE if redemption by wire has been elected on your Purchase
Application. A signature guarantee is not required on this
type of redemption request. To elect this service after
opening your account, call the transfer agent at (800)
446-1013 for more information. To redeem by wire, you may
either:
Telephone the redemption request to the transfer agent at
(800) 446-1013
Mail the request to the transfer agent at the address listed
above
Proceeds of wire redemptions of $500 or more will be wired
to the bank which is indicated on your Purchase Application
or by letter which has been properly guaranteed. Checks for
redemption proceeds of less than $500 will be mailed to your
address of record. You should note that your bank may charge
you a fee in connection with money by wire.
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REDEMPTIONS BY You may redeem shares by telephone if you elect the
TELEPHONE telephone redemption option on your Purchase Application and
you have a direct account with the transfer agent. The
proceeds must be mailed to your address of record. In
addition, you must be able to provide proper identification
information. You may not redeem by telephone if your address
has changed within the past 45 days or if your shares are in
certificate form. Telephone redemption requests may be made
by calling the transfer agent at (800) 446-1013 between 9:00
a.m. and 4:00 p.m. Eastern time on any day the New York
Stock Exchange is open. If telephone redemptions are not
available for any reason, you may use the Fund's regular
redemption procedure described above.
Stockholders cannot apply the telephone redemption privilege
to shares held in certificate form or for accounts requiring
additional supporting documentation for redemptions such as
trust, corporate, estate and guardian accounts.
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AUTOMATIC CASH You can arrange for the automatic redemption of a portion of
WITHDRAWAL PLAN your shares on a monthly or quarterly basis. To qualify, you
must own shares of the Fund with a value of at least $7,500
and each automatic redemption must be at least $50.
</TABLE>
Salomon Brothers Opportunity Fund Inc - 9
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OTHER THINGS TO KNOW ABOUT SHARE TRANSACTIONS
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Small account If your account falls below $1,000 due to redemption of Fund
balances shares, the Fund may ask you to bring your account up to the
minimum requirement. If your account is still below $1,000
after 30 days, the Fund may close your account and send you
the redemption proceeds.
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Share price You may buy, exchange or redeem Fund shares at the net asset
value next determined after receipt of your request in good
order. The Fund's net asset value is the value of its assets
minus its liabilities and is calculated every day as of the
close of regular trading on the NYSE (normally 4:00 p.m.
Eastern time) each day the NYSE is open.
The Fund generally values its securities based on market
prices or quotations. The Fund's currency conversions are
done when the London stock exchange closes, which is 12 noon
Eastern time. When market prices are not available, or when
the manager believes they are unreliable or that the value
of a security has been materially affected by events
occurring after a foreign exchange closes, the Fund may
price its securities at fair value. Fair value is determined
in accordance with procedures approved by the Fund's board.
A fund that uses fair value to price securities may value
its securities higher or lower than another fund that uses
market quotations to price the same securities.
International markets may be open on days when U.S. markets
are closed and the value of foreign securities owned by the
Fund could change on days when you cannot buy or redeem
shares.
In order to buy, redeem or exchange shares at that day's
price, you must place your order with the transfer agent or
selected dealers before the New York Stock Exchange closes.
If the New York Stock Exchange closes early, you must place
your order prior to the actual closing time. Otherwise, you
will receive the next business day's price.
Members of the Fund's selling group must transmit all orders
to buy, exchange or redeem shares to the Fund's transfer
agent before the agent's close of business.
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The Fund has the right to:
Suspend the offering of shares
Waive or change minimum and additional investment amounts
Reject any purchase or exchange order
Change, revoke or suspend the exchange privilege
Suspend telephone transactions
Suspend or postpone redemptions of shares on any day when
trading on the NYSE is restricted, or as otherwise permitted
by the SEC
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Redemptions in The Fund may make payment for Fund shares wholly or in part
kind by distributing portfolio securities to the shareholders.
The redeeming shareholder must pay transaction costs to sell
these securities.
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Salomon Brothers Opportunity Fund Inc - 10
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DIVIDENDS, DISTRIBUTIONS AND TAXES
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DIVIDENDS The Fund generally makes capital gain distributions and pays
dividends from its net investment income, if any, once a year,
typically in December. The Fund may pay additional
distributions and dividends at other times if necessary for
the Fund to avoid a federal income tax. Capital gain
distributions and dividends are reinvested in additional Fund
shares of the same class you hold. The Fund expects
distributions to be primarily from capital gains. You do not
pay a sales charge on reinvested distributions or dividends.
Alternatively, you can instruct the transfer agent to have
your distributions and/or dividends paid in cash. You can
change your choice at any time to be effective as of the next
distribution or dividend, except that any change given to the
transfer agent less than five days before the payment date
will not be effective until the next distribution or dividend
is paid.
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TAXES In general, redeeming shares, exchanging shares and receiving
distributions (whether in cash or additional shares) are all
taxable events.
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<CAPTION>
TRANSACTION FEDERAL INCOME TAX STATUS
<S> <C>
Redemption or exchange of shares Usually capital gain or loss; long-term only if
shares owned more than one year
Long-term capital gain distributions Long-term capital gain
Short-term capital gain distributions Ordinary income
Dividends Ordinary income
</TABLE>
Long-term capital gain distributions are taxable to you as long-term capital
gain regardless of how long you have owned your shares. You may want to avoid
buying shares when the Fund is about to declare a capital gain distribution or
a taxable dividend, because it will be taxable to you even though it may
actually be a return of a portion of your investment. In particular, as
discussed earlier in this Prospectus, the Fund currently has a substantial
amount of unrealized long-term capital gain which could result in large
capital gain distributions.
After the end of each year, the Fund will provide you with information about
the distributions and dividends that you received and any redemptions of
shares during the previous year. If you do not provide the Fund with your
correct taxpayer identification number and any required certifications, you
may be subject to back-up withholding of 31% of your distributions, dividends
(other than exempt-interest dividends), and, except for a money market fund,
redemption proceeds. Because each shareholder's circumstances are different
and special tax rules may apply, you should consult your tax adviser about
your investment in a fund.
Salomon Brothers Opportunity Fund Inc - 11
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FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand the
performance of the Fund for the past 5 years. Total return represents the rate
that a shareholder would have earned (or lost) on a Fund share assuming
reinvestment of all dividends and distributions. The information in the
following table was audited by PricewaterhouseCoopers LLP, independent
accountants, whose report, along with the Fund's financial statements, are
included in the annual report (available upon request).
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YEAR ENDED AUGUST 31,
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2000 1999 1998 1997 1996
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<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year............. $ 49.69 $ 47.36 $ 50.64 $ 37.89 $ 35.75
-------- -------- -------- -------- --------
Net investment income.......................... 0.82 0.76 0.46 0.43 0.60
Net gains (or losses) on securities (both
realized and unrealized)...................... 8.79 6.98 (1.95) 14.46 3.38
-------- -------- -------- -------- --------
Total from investment operations............... 9.61 7.74 (1.49) 14.89 3.98
-------- -------- -------- -------- --------
Less dividends and distributions:
Dividends from net investment income........... (0.80) (0.47) (0.39) (0.62) (0.48)
Distributions from net realized gain on
investments................................... (2.52) (4.94) (1.40) (1.52) (1.36)
-------- -------- -------- -------- --------
Total dividends and distributions.............. (3.32) (5.41) (1.79) (2.14) (1.84)
-------- -------- -------- -------- --------
Net asset value, end of year................... $ 55.98 $ 49.69 $ 47.36 $ 50.64 $ 37.89
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total investment return based on net asset
value per share............................... +20.4% +16.5% - 3.3% +40.5% +11.4%
Ratios/Supplemental Data:
Net assets, end of year (thousands)............ $212,155 $188,744 $177,269 $188,496 $141,984
Ratio of expenses to average net assets........ 1.11% 1.14% 1.12% 1.16% 1.18%
Ratio of net investment income to average net
assets........................................ 1.65% 1.55% 0.83% 0.95% 1.59%
Portfolio turnover rate........................ 3% 3% 3% 4% 5%
</TABLE>
Salomon Brothers Opportunity Fund Inc - 12
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<PAGE>
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SALOMON BROTHERS
OPPORTUNITY FUND INC
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ADDITIONAL INFORMATION ABOUT THE FUND
SHAREHOLDER REPORTS. Annual and semiannual reports to shareholders provide
additional information about the Fund's investments. These reports discuss the
market conditions and investment strategies that significantly affected the
Fund's performance during its last fiscal year.
STATEMENT OF ADDITIONAL INFORMATION. The statement of additional information
provides more detailed information about the Fund. It is incorporated by
reference into (is legally a part of) this combined prospectus.
The Fund sends only one report to a household if more than one account has the
same address. Contact the transfer agent if you do not want this policy to apply
to you.
HOW TO OBTAIN ADDITIONAL INFORMATION.
You can make inquiries about the Fund or obtain shareholder reports or the
statement of additional information (without charge) by contacting the
transfer agent, by calling 1-800-446-1013 or writing the Fund at Seven World
Trade Center, New York, NY, 10048 or calling your financial consultant.
Information about the Fund (including the statement of additional information)
can be reviewed and copied at the Securities and Exchange Commission's Public
Reference Room in Washington, D.C. Information about the public reference room
may be obtained by calling 1-202-942-8090. Reports and other information about
the Fund are available on the EDGAR Database on the Commission's Internet site
at http://www.sec.gov and copies of this information may be obtained, after
paying a duplication fee, by electronic request at the following E-mail
address: [email protected] or by writing to the Public Reference Section of
the Commission, Washington, D.C. 20549-0102.
If someone makes a statement about the Fund that is not in this prospectus, you
should not rely upon that information. Neither the Fund nor the distributor is
offering to sell shares of the Fund to any person to whom the Fund may not
lawfully sell their shares.
(Investment Company Act
file no. 811-02884)
OPPRO 12/00
