1995
1995
1995 [LOGO]
1995
1995
Smith Barney
Aggressive
Growth
Fund Inc.
-----------------------------------
August 31, 1995
[LOGO] Smith Barney Mutual Funds
Investing for your future
Every day.
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Smith Barney Aggressive Growth Fund Inc.
- ----------------------------------------
DEAR SHAREHOLDER:
We are pleased to provide you with the Smith Barney Aggressive Growth Fund
annual report for the 12 months ended August 31, 1995. The Fund enjoyed very
strong performance for the fiscal year, particularly during the second half
where the aggregate total return without the deduction of the applicable sales
charge for Class A shares of the Fund was 25.63%. For the same period the
Standard & Poor's Daily Price Index of 500 Common Stocks ("S&P 500") experienced
a gain of 16.79%, and the Value Line Composite Index (Geometric), which we
believe represents a better measure of performance for the kinds of securities
held in the Fund, experienced a gain of 13.20%. Both of these unmanaged indices
track the movement of common stock prices. For the year ended August 31, 1995,
the aggregate total return without the deduction of sales charges for Class A
shares of the Fund was 31.95%. For the same period, the S&P 500 and Value Line
Composite indices advanced 21.42% and 10.66%, respectively.
ECONOMIC OVERVIEW
Following a series of interest-rate increases instituted by the Federal Reserve
Board in 1994, the U.S. economy underwent a slowdown early this year. This gave
the Fed the justification to back away from its heretofore restrictive policy
and move initially towards neutrality and then ease in the summer. Sensing a
slowing in the growth rate of the economy, long-term interest rates peaked last
winter and now stand nearly 150 basis points below their highs for the cycle. In
our opinion, the two major positive factors contributing to the stock market's
record high this year were a benign monetary background and strong corporate
profits.
INVESTMENT STRATEGY
The Fund's strong performance in the past six months was the result of a
sizeable weighting in technology and biotechnology stocks. The strong market
reception accorded Intel's new-generation Pentium microprocessor not only had
beneficial effects on that particular company (the Fund's second largest
holding) but also on the industry in general. In addition to a 55% increase in
Intel's stock price during the Fund's fiscal second half ended August 31, 1995,
other notable holdings in the technology area and stock price gains included
Cirrus Logic (+250%), Quantum Corporation (+74.5%), and Oracle Systems,
(+36.2%). In June, Lotus Development Corporation accepted a $64 a share
acquisition offer made by IBM. The Fund recognized significant profits selling
<PAGE>
our position in the software company following that announcement. In our April
4, 1995 shareholder letter, we outlined several additions made to our core
holdings, one of which had been Lotus. Both Lotus and Chiron (the object of a
January tender offer for 38.25% of our shares at $117 per share by Ciba Geigy)
were similar in that they failed to be appreciated by Wall Street. However,
their values became monetized at a substantial premium for shareholders by
strategic buyers with presumably more informed judgments of their intrinsic
values than the prevailing views of analysts.
Early in June, we made significant additions to our holdings in health-care
securities, specifically biotechnology, pharmaceuticals and managed-care
companies. We felt that their prospects and balance sheets remained quite strong
yet underappreciated by investors. Additions were made to the following
health-care stocks in the past six months: Forest Laboratories, Chiron
Corporation, Genzyme, Value Health, United Healthcare, U.S. Healthcare, and
Univax Biologics. We reestablished a significant position in Amgen, a former
successful holding of the Fund, and took an initial position in Metra
Bio-Systems.
Our strategic move to increase the Fund's relative weighting in health-care
securities in June was an example of how we try to anticipate relative strength
rather than react to it. While technology stocks have clearly provided
stockmarket leadership this year and contributed to strong gains in the net
asset value of the Fund, we believe that the risk/reward ratio is now more
attractive for selected health-care stocks. Many growth-oriented portfolios
currently have smaller weightings in heath-care companies than in technology
stocks.
We will continue to provide you with a high level of professional management,
and we thank you for your continued support.
Sincerely,
/s/ Heath B. McLendon /s/ Richard A. Freeman
- --------------------- ----------------------
Heath B. McLendon Richard A. Freeman
Chairman and Vice President and
Investment Officer Investment Officer
SEPTEMBER 15, 1995
2
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SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
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HISTORICAL PERFORMANCE--CLASS A SHARES
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Net Asset Value
-----------------
Beginning End Income Capital Gain Total
Year Ended of Year of Year Dividends Distributions Returns(1)
- --------------------------------------------------------------------------------
8/31/95 $26.76 $33.53 $0.00 $1.37 31.95%
- --------------------------------------------------------------------------------
8/31/94 23.59 26.76 0.00 0.00 13.44
- --------------------------------------------------------------------------------
8/31/93 18.94 23.59 0.00 0.00 24.55
- --------------------------------------------------------------------------------
8/31/92 20.12 18.94 0.00 0.76 (2.42)
- --------------------------------------------------------------------------------
8/31/91 16.16 20.12 0.00 0.94 31.97
- --------------------------------------------------------------------------------
8/31/90 19.25 16.16 0.02 2.03 (6.38)
- --------------------------------------------------------------------------------
8/31/89 13.68 19.25 0.00 0.43 44.97
- --------------------------------------------------------------------------------
8/31/88 21.63 13.68 0.00 2.47 (24.40)
- --------------------------------------------------------------------------------
8/31/87 16.43 21.63 0.00 0.84 39.36
- --------------------------------------------------------------------------------
8/31/86 11.45 16.43 0.00 0.00 43.49
- --------------------------------------------------------------------------------
Total $0.02 $8.84
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- --------------------------------------------------------------------------------
HISTORICAL PERFORMANCE--CLASS B SHARES
- --------------------------------------------------------------------------------
Net Asset Value
-----------------
Beginning End Income Capital Gain Total
Year Ended of Year of Year Dividends Distributions Returns(1)
- --------------------------------------------------------------------------------
8/31/95 $26.42 $32.82 $0.00 $1.37 30.93%
- --------------------------------------------------------------------------------
8/31/94 23.46 26.42 0.00 0.00 12.62
- --------------------------------------------------------------------------------
Inception*- 8/31/93 20.52 23.46 0.00 0.00 14.33
- --------------------------------------------------------------------------------
Total $0.00 $1.37
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- --------------------------------------------------------------------------------
HISTORICAL PERFORMANCE--CLASS C SHARES
- --------------------------------------------------------------------------------
Net Asset Value
-----------------
Beginning End Income Capital Gain Total
Year Ended of Year of Year Dividends Distributions Returns(1)
- --------------------------------------------------------------------------------
8/31/95 $26.42 $32.84 $0.00 $1.37 31.01%
- --------------------------------------------------------------------------------
8/31/94 23.47 26.42 0.00 0.00 12.57
- --------------------------------------------------------------------------------
Inception*- 8/31/93 21.14 23.47 0.00 0.00 11.02
- --------------------------------------------------------------------------------
Total $0.00 $1.37
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3
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SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
HISTORICAL PERFORMANCE--CLASS Z SHARES
- --------------------------------------------------------------------------------
Net Asset Value
-----------------
Beginning End Income Capital Gain Total
Year Ended of Year of Year Dividends Distributions Returns(1)
- --------------------------------------------------------------------------------
8/31/95 $26.94 $33.88 $0.00 $1.37 32.38%
- --------------------------------------------------------------------------------
8/31/94 23.67 26.94 0.00 0.00 13.81
- --------------------------------------------------------------------------------
Inception*- 8/31/93 20.52 23.67 0.00 0.00 15.35
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Total $0.00 $1.37
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IT IS THE FUND'S POLICY TO DISTRIBUTE DIVIDENDS AND CAPITAL GAINS, IF ANY,
ANNUALLY.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
Without Sales Charge(1)
----------------------------------------
Class A Class B Class C Class Z
- --------------------------------------------------------------------------------
Year Ended 8/31/95 31.95% 30.93% 31.01% 32.38%
- --------------------------------------------------------------------------------
Five Years Ended 8/31/95 19.14 N/A N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 8/31/95 17.29 N/A N/A N/A
- --------------------------------------------------------------------------------
Inception* through 8/31/95 14.56 20.38 23.90 21.68
- --------------------------------------------------------------------------------
With Sales Charge(2)
----------------------------------------
Class A Class B Class C Class Z
- --------------------------------------------------------------------------------
Year Ended 8/31/95 25.35% 25.93% 30.01% 32.38%
- --------------------------------------------------------------------------------
Five Years Ended 8/31/95 17.93 N/A N/A N/A
- --------------------------------------------------------------------------------
Ten Years Ended 8/31/95 16.69 N/A N/A N/A
- --------------------------------------------------------------------------------
Inception* through 8/31/95 14.06 19.61 23.90 21.68
- --------------------------------------------------------------------------------
4
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SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN
- --------------------------------------------------------------------------------
Without Sales Charge (1)
------------------------
Class A (8/31/85 through 8/31/95) 392.67%
- --------------------------------------------------------------------------------
Class B (Inception* through 8/31/95) 68.58
- --------------------------------------------------------------------------------
Class C (Inception* through 8/31/95) 63.74
- --------------------------------------------------------------------------------
Class Z (Inception* through 8/31/95) 73.79
- --------------------------------------------------------------------------------
(1) Assumes reinvestment of all dividends and capital gain distributions at net
asset value and does not reflect deduction of the applicable sales charge
with respect to Class A shares or the applicable contingent deferred sales
charges ("CDSC") with respect to Class B and Class C shares.
(2) Assumes reinvestment of all dividends and capital gain distributions at net
asset value. In addition, Class A shares reflect the deduction of the
maximum initial sales charge of 5.00% and Class B shares reflect the
deduction of a 5.00% CDSC which applies if shares are redeemed less than one
year from initial purchase. This CDSC declines by 1.00% per year thereafter
until no CDSC is incurred. Class C shares reflect the deduction of a 1.00%
CDSC which applies if shares are redeemed within the first year of purchase.
* Inception dates for Class A, B, C and Z shares are October 24, 1983,
November 6, 1992, May 13, 1993, and November 6,1992, respectively.
5
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SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
HISTORICAL PERFORMANCE
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN CLASS A SHARES OF
THE SMITH BARNEY AGGRESSIVE GROWTH FUND INC. VS.
THE VALUE LINE COMPOSITE INDEX +
(UNAUDITED)
- --------------------------------------------------------------------------------
AUGUST 1985 - AUGUST 1995
Smith Barney Aggressive Value Line
Growth Fund Inc. Composite Index
8/85 9,502.1 10,000.00
8/86 13,634.9 11,824.05
8/87 19,002.2 14,312.02
8/88 14,366.5 11,438.42
8/89 20,827.5 13,909.47
8/90 19,499.7 10,454.05
8/91 25,733.6 12,282.86
8/92 25,110.7 12,306.89
8/93 31,275.7 14,391.94
8/94 35,478.5 14,731.77
8/95 46,814.1 16,302.81
+ Hypothetical illustration of $10,000 invested in Class A shares on August
31, 1985, assuming deduction of the maximum 5.00% sales charge at the time
of investment and reinvestment of dividends and capital gains, if any, at
net asset value through August 31, 1995. The Value Line Composite Index
("Index"), composed of approximately 1,700 stocks, is a geometric average of
the daily price percentage change in each stock covering both large and
small capitalized companies. The Index is unmanaged and is not subject to
the same management and trading expenses of a mutual fund. The performance
of the Fund's other classes may be greater or less than the Class A shares'
performance indicated on this chart, depending on whether greater or lesser
sales charges and fees were incurred by shareholders investing in the other
classes.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption values may be more or less than the original cost. No adjustment
has been made for shareholder tax liability on dividends or capital gains.
6
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SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
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PORTFOLIO HIGHLIGHTS (UNAUDITED AUGUST 31, 1995
- --------------------------------------------------------------------------------
PORTFOLIO BREAKDOWN
Biotechnology 21.7%
Managed Health Care Providers 11.2%
Broadcasting/Cable 10.9%
Diversified Technology 10.6%
Semiconductor 10.3%
Pharmaceuticals 7.9%
Wireless Communications 7.2%
Computer Hardware 4.5%
Computer Software 3.2%
Investment Banking Services 3.0%
Other Common Stocks 6.6%
Foreign Preferred Stock 0.6%
Convertible Preferred Stock 2.3%
TOP TEN HOLDINGS
PERCENTAGE OF
COMPANY TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
Chiron Corp. 6.7%
Intel Corp. 6.1
Forest Laboratories Inc. Class A Shares 5.3
Genzyme Corp.-General Division 5.2
Tyco International Ltd. 5.1
Amgen Inc. 5.0
Infinity Broadcasting Corp. Class A Shares 4.6
Value Health Inc. 4.3
United HealthCare Inc. 4.0
California Microwave Inc. 3.8
7
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS AUGUST 31, 1995
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
COMMON STOCKS -- 97.1%
BIOTECHNOLOGY -- 21.7%
90,000 Alkermes Inc.+ $ 618,750
500,000 Amgen Inc.+ 23,937,500
359,107 Chiron Corp.+ 32,229,853
250,000 Cor Therapeutics Inc.+ 2,906,250
320,000 Genentech Inc.+ 15,080,000
450,000 Genzyme Corp.-General Division+ 25,143,750
27,000 Genzyme Corp.-Tissue Repair+ 388,125
528,000 Univax Biologics Inc.+ 4,191,000
- --------------------------------------------------------------------------------
104,495,228
- --------------------------------------------------------------------------------
BROADCASTING/CABLE -- 10.9%
125,000 Cablevision Systems Development Corp. Class A Shares+ 8,187,500
100,000 Comcast Corp. Class A Shares 2,125,000
543,750 Comcast Corp. Class A Special Shares 11,622,656
620,662 Infinity Broadcasting Corp. Class A Shares+ 22,266,249
75,000 Liberty Media Class A Shares+ 1,992,188
25,000 LIN Television Corp.+ 912,500
300,000 Tele-Communications Inc. Class A Shares 5,550,000
- --------------------------------------------------------------------------------
52,656,093
- --------------------------------------------------------------------------------
COMPUTER HARDWARE -- 4.5%
50,000 Hewlett-Packard Company 4,000,000
176,000 NetFRAME Systems Inc.+ 1,144,000
685,000 Quantum Corp.+ 16,440,000
- --------------------------------------------------------------------------------
21,584,000
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE -- 3.2%
500,000 ComputerVision Corp.+ 5,812,500
42,550 Microsoft Corp.+ 3,935,875
141,575 Oracle Systems Corp.+ 5,680,697
- --------------------------------------------------------------------------------
15,429,072
- --------------------------------------------------------------------------------
8
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) AUGUST 31, 1995
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
DIVERSIFIED TECHNOLOGY -- 10.6%
460,000 C - COR Electronics Inc.+ $14,720,000
250,000 Drexler Technology Corporation+ 2,531,250
425,000 Excel Technology Inc.+ 2,430,490
135,000 Indigo N.V.+ 4,151,250
50,000 Philips Electronics N.V. 2,250,000
415,000 Tyco International Ltd. 24,536,875
41,000 VISX Inc.+ 763,625
- --------------------------------------------------------------------------------
51,383,490
- --------------------------------------------------------------------------------
DRUG DELIVERY/TESTING -- 2.0%
499,500 Advanced Polymer Systems Inc.+ 3,340,407
170,000 Cygnus Therapeutic Systems+ 3,102,500
115,000 Cytotherapeutics Inc.+ 1,092,500
100,000 Metra Biosystems Inc.+ 2,000,000
- --------------------------------------------------------------------------------
9,535,407
- --------------------------------------------------------------------------------
ENTERTAINMENT -- 0.7%
56,250 Walt Disney Co. 3,157,031
- --------------------------------------------------------------------------------
ENVIRONMENTAL -- 2.4%
95,000 Image Industries Inc.+ 1,163,750
400,000 Wellman Inc. 10,200,000
- --------------------------------------------------------------------------------
11,363,750
- --------------------------------------------------------------------------------
INVESTMENT BANKING SERVICES -- 3.0%
362,400 Lehman Brothers Holdings Inc. 8,607,000
97,200 Merrill Lynch & Company Inc. 5,601,150
- --------------------------------------------------------------------------------
14,208,150
- --------------------------------------------------------------------------------
MACHINERY -- 1.5%
473,000 Bridgeport Machines Inc.+ 7,331,500
- --------------------------------------------------------------------------------
MANAGED HEALTH CARE PROVIDERS -- 11.2%
450,000 United Healthcare Corp. 19,012,500
450,000 U.S. HealthCare Inc. 14,400,000
600,000 Value Health Inc.+ 20,775,000
- --------------------------------------------------------------------------------
54,187,500
- --------------------------------------------------------------------------------
9
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) AUGUST 31, 1995
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
PHARMACEUTICALS -- 7.9%
570,000 Forest Laboratories Inc. Class A Shares+ $ 25,507,500
550,000 Gensia Pharmaceuticals Inc.+ 3,093,750
400,000 IDEC Pharmaceuticals Corp.+ 2,750,000
30,525 Merck & Company Inc. 1,522,434
60,400 Pfizer Inc. 2,982,250
100,000 Vertex Pharmaceuticals Inc.+ 2,075,000
- --------------------------------------------------------------------------------
37,930,934
- --------------------------------------------------------------------------------
SEMICONDUCTOR -- 10.3%
30,000 Applied Materials Inc.+ 3,120,000
260,000 Cirrus Logic Inc.+ 14,170,000
305,000 GenRad Inc.+ 2,516,250
481,500 Intel Corp. 29,552,063
- --------------------------------------------------------------------------------
49,358,313
- --------------------------------------------------------------------------------
WIRELESS COMMUNICATIONS -- 7.2%
350,000 Arch Communications Group Inc.+ 9,559,375
700,000 California Microwave Inc.+ 18,375,000
40,000 Nera AS ADR+ 1,310,000
400,000 Telular Corp.+ 5,631,280
- --------------------------------------------------------------------------------
34,875,655
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost-- $271,984,142) 467,496,123
- --------------------------------------------------------------------------------
FOREIGN PREFERRED STOCK -- 0.6%
42,192 Nokia Corp. AB
(Cost-- $1,242,554) 2,920,659
- --------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK -- 2.3%
200,000 Cellular Communications Inc.+
(Cost-- $2,721,625) 10,900,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost-- $275,948,321*) $481,316,782
- --------------------------------------------------------------------------------
+ Non-income producing security.
* Aggregate cost for Federal income tax purposes is substantially the same.
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES) AUGUST 31, 1995
- --------------------------------------------------------------------------------
ASSETS:
Investments, at value (Cost-- $275,948,321) $481,316,782
Cash 9,008,918
Receivable for Fund shares sold 2,915,139
Dividends receivable 77,963
Other receivables 34,383
- --------------------------------------------------------------------------------
TOTAL ASSETS 493,353,185
- --------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 1,898,375
Payable for Fund shares purchased 1,161,480
Distribution fees payable 281,144
Investment advisory fees payable 229,531
Administration fees payable 76,511
Accrued expenses 332,749
- --------------------------------------------------------------------------------
TOTAL LIABILITIES 3,979,790
- --------------------------------------------------------------------------------
TOTAL NET ASSETS $489,373,395
- --------------------------------------------------------------------------------
NET ASSETS:
Par value of capital shares $ 146,951
Capital paid in excess of par value 250,855,807
Accumulated net realized gain on investments 33,002,176
Net unrealized appreciation of investments 205,368,461
- --------------------------------------------------------------------------------
TOTAL NET ASSETS $489,373,395
- --------------------------------------------------------------------------------
SHARES OUTSTANDING:
Class A 8,720,753
-----------------------------------------------------------------------------
Class B 2,968,880
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Class C 2,202,394
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Class Z 803,045
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NET ASSET VALUE:
Class A (and redemption price) $33.53
-----------------------------------------------------------------------------
Class B* $32.82
-----------------------------------------------------------------------------
Class C** $32.84
-----------------------------------------------------------------------------
Class Z (and redemption price) $33.88
-----------------------------------------------------------------------------
CLASS A MAXIMUM PUBLIC OFFERING PRICE PER SHARE
(net asset value plus 5.26% of net asset value) $35.29
- --------------------------------------------------------------------------------
* Redemption price is NAV of Class B shares reduced by a 5.00% CDSC if shares
are redeemed less than one year from initial purchase (See Note 2).
** Redemption price is NAV of Class C shares reduced by a 1.00% CDSC if shares
are redeemed within the first year of purchase.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 1995
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 786,912
Interest (Net of interest expense of $9,013) 165,177
- --------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 952,089
- --------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees (Note 2) 1,829,883
Distribution fees (Note 2) 1,291,961
Administration fees (Note 2) 609,961
Shareholder and system servicing fees 380,000
Audit and legal 80,000
Shareholder communications 80,000
Registration fees 70,000
Custody 48,500
Directors' fees 46,266
Other 263,952
- --------------------------------------------------------------------------------
TOTAL EXPENSES 4,700,523
- --------------------------------------------------------------------------------
NET INVESTMENT LOSS (3,748,434)
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS (NOTE 3):
Realized Gain From Security Transactions
(excluding short-term securities):
Proceeds from sales 133,592,422
Cost of securities sold 96,842,801
- --------------------------------------------------------------------------------
NET REALIZED GAIN 36,749,621
- --------------------------------------------------------------------------------
Change in Net Unrealized Appreciation of Investments:
Beginning of year 114,275,887
End of year 205,368,461
- --------------------------------------------------------------------------------
INCREASE IN NET UNREALIZED APPRECIATION 91,092,574
- --------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 127,842,195
- --------------------------------------------------------------------------------
INCREASE IN NET ASSETS FROM OPERATIONS $124,093,761
- --------------------------------------------------------------------------------
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED AUGUST 31, 1995
- --------------------------------------------------------------------------------
1995 1994
- --------------------------------------------------------------------------------
OPERATIONS:
Net investment loss $ (3,748,434) $ (3,162,240)
Net realized gain 36,749,621 14,492,212
Increase in net unrealized appreciation 91,092,574 26,593,555
- --------------------------------------------------------------------------------
INCREASE IN NET ASSETS FROM OPERATIONS 124,093,761 37,923,527
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- --
Net realized gains (13,522,898) --
- --------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS
TO SHAREHOLDERS (13,522,898) --
- --------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 289,503,687 171,065,100
Net asset value of shares issued in
connection with the transfer of net
assets of the Smith Barney Funds, Inc.-
Capital Appreciation Portfolio ("Capital
Appreciation Portfolio") in 1995
and the Smith Barney Shearson 1990's Fund
("Shearson 1990's Fund") in 1994 (Note 6) 103,455,275 27,086,966
Net asset value of shares issued for
reinvestment of dividends 13,207,895 --
Cost of shares reacquired (282,856,918) (202,815,970)
- --------------------------------------------------------------------------------
INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 123,309,939 (4,663,904)
- --------------------------------------------------------------------------------
INCREASE IN NET ASSETS 233,880,802 33,259,623
NET ASSETS:
Beginning of year 255,492,593 222,232,970
- --------------------------------------------------------------------------------
END OF YEAR* $489,373,395 $255,492,593
- --------------------------------------------------------------------------------
*Includes accumulated net loss of: -- $(3,162,240)
- --------------------------------------------------------------------------------
13
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Smith Barney Aggressive Growth Fund 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 significant accounting policies consistently followed by the Fund are:
(a) securities transactions are accounted for on trade date; (b) securities
traded on national securities markets are valued at the closing prices on such
markets; securities for which no sales price was reported and U.S. Government
and Government Agency obligations are valued at the bid price. Investments in
securities for which market quotations are not available are valued at fair
value as determined in good faith by the Board of Directors; (c) short-term
investments that have a maturity of more than 60 days are valued at prices based
on market quotations for securities of similar type, yield and maturity; (d)
short-term investments that have a maturity of 60 days or less are valued at
cost plus accreted discount, or minus amortized premium, as applicable; (e)
dividend income is recorded on the ex-dividend date and interest income is
recorded on the accrual basis; (f) gains or losses on the sale of securities are
calculated by using the specific identification method; (g) direct expenses are
charged to the Fund and each class; investment advisory fees and general Fund
expenses are allocated on the basis of relative net assets; (h) dividends and
distributions to shareholders are recorded by the Fund on the ex-dividend date;
(i) the Fund intends 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 relieve it from
substantially all Federal income and excise taxes and (j) in accordance with
Statement of Position 93-2 Determination, Disclosure, and Financial Statement
Presentation of Income, Capital Gain, and Return of Capital Distributions by
Investment Companies, book and tax basis differences relating to shareholder
distributions and other permanent book and tax differences are reclassified to
paid-in capital. As of August 31, 1995, the cumulative effect of such
differences, totaling $3,162,240, were reclassified to paid-in capital from
accumulated net investment loss. Net investment income, net realized gains, and
net assets were not affected by this change. In addition, $3,748,434 of net
investment losses were reclassified to net realized gains.
14
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
2. INVESTMENT ADVISORY AGREEMENT, ADMINISTRATION AGREEMENT AND OTHER
TRANSACTIONS
Smith Barney Mutual Funds Management Inc. ("SBMFM"), a subsidiary of Smith
Barney Holdings Inc. ("SBH"), acts as investment adviser to the Fund. The Fund
pays SBMFM an advisory fee calculated at an annual rate of 0.60% of the average
daily net assets. This fee is calculated daily and paid monthly.
SBMFM also acts as the Fund's administrator for which the Fund pays a fee
calculated at an annual rate of 0.20% of the average daily net assets. This fee
is calculated daily and paid monthly.
In addition, The Boston Company Advisors, Inc. ("Boston Advisors"), an
indirect wholly owned subsidiary of Mellon Bank Corporation, acted as
sub-administrator to the Fund. SBMFM paid Boston Advisors a portion of its
administration fee at a rate agreed upon from time to time between SBMFM and
Boston Advisors. As of May 19, 1995 this relationship was terminated.
Smith Barney Inc. ("SB"), another subsidiary of SBH, acts as distributor of
Fund shares and primary broker for its portfolio agency transactions. For the
year ended August 31, 1995, SB received brokerage commissions of $23,768 and
received sales charges of approximately $476,500 on sales of the Fund's Class A
shares.
There is a contingent deferred sales charge ("CDSC") of 5.00% on Class B
shares if redemption occurs less than one year from initial purchase and
declines thereafter by 1.00% per year until no CDSC is incurred. Class C shares
have a 1.00% CDSC if redemption occurs within the first year from the date such
investment was made. For the year ended August 31, 1995, CDSCs of approximately
$154,700 were paid to SB.
Pursuant to a Distribution Plan the Fund pays a service fee with respect to
its Class A, B and C shares calculated at the annual rate of 0.25% of the
average daily net assets of each respective class. The Fund also pays a
distribution fee with respect to Class B and C shares calculated at the annual
rate of 0.75% of the average daily net assets of each class.
All officers and one director of the Fund are employees of SB.
15
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
3. INVESTMENTS
During the year ended August 31, 1995, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) was $239,781,694 and $133,592,422 respectively.
At August 31, 1995, net unrealized appreciation of investments for Federal
income tax purposes consisted of the following:
- --------------------------------------------------------------------------------
Gross unrealized appreciation $210,013,911
Gross unrealized depreciation (4,645,450)
- --------------------------------------------------------------------------------
Net unrealized appreciation $205,368,461
- --------------------------------------------------------------------------------
4. 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 Portfolio requires continual
maintenance of the market value of the collateral in amounts at least equal to
the repurchase price.
5. CAPITAL SHARES
At August 31, 1995, the Fund had authorized 100 million shares of $0.01 par
value capital stock. The Fund has the ability to issue multiple classes of
shares. Each share of a class represents an identical interest and has the same
rights, except that each class bears certain expenses, including those
specifically related to the distribution of its shares. Effective November 7,
1994, the Fund adopted a new class structure, renaming the former Class C and D
shares as Class Z and C shares, respectively. At August 31, 1995, total paid-in
capital amounted to the following for each class:
CLASS A CLASS B CLASS C CLASS Z
- --------------------------------------------------------------------------------
Total Paid-in Capital $114,390,595 $76,336,725 $49,967,086 $10,308,352
- --------------------------------------------------------------------------------
16
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
Transactions in shares of each class were as follows:
YEAR ENDED YEAR ENDED
AUGUST 31, 1995 AUGUST 31, 1994
------------------- -------------------
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------
CLASS A
Shares sold 6,749,531 $177,610,487 3,336,796 $ 75,925,637
Transfer of net assets of the
Shearson 1990's Fund and
Capital Appreciation
Portfolio (Note 6) 1,632,417 45,764,593 997,919 26,604,524
Shares issued on reinvestment 344,884 9,021,552 -- --
Shares redeemed (6,767,114) (187,492,639)(3,951,101) (101,215,041)
- --------------------------------------------------------------------------------
Net Increase 1,959,718 $ 44,903,993 383,614 $ 1,315,120
- --------------------------------------------------------------------------------
CLASS B
Shares sold 3,850,953 $108,799,180 3,421,611 $ 87,244,483
Transfer of net assets of the
Shearson 1990's Fund and
Capital Appreciation Portfolio
(Note 6) 13,667 375,927 18,212 482,442
Shares issued on reinvestment 112,757 2,902,494 -- --
Shares redeemed (2,891,099) (80,272,640)(2,330,261) (59,327,287)
- --------------------------------------------------------------------------------
Net Increase 1,086,278 $ 31,804,961 1,109,562 $ 28,399,638
- --------------------------------------------------------------------------------
CLASS C+
Shares sold 466,565$ 2,850,429 13,833 $ 358,452
Transfer of net assets of the
Shearson 1990's Fund and
Capital Appreciation
Portfolio (Note 6) 2,083,900 57,314,755 -- --
Shares issued on reinvestment 4,191 110,650 -- --
Shares redeemed (366,163) (10,665,119) (974) (23,347)
- --------------------------------------------------------------------------------
Net Increase 2,188,493 $ 49,610,715 12,859 $ 335,105
- --------------------------------------------------------------------------------
CLASS Z++
Shares sold 8,570 $ 243,591 281,446 $ 7,536,528
Shares issued on reinvestment 44,496 1,173,199 -- --
Shares redeemed (158,380) (4,426,520)(1,637,144) (42,250,295)
- --------------------------------------------------------------------------------
Net Decrease (105,314) $ (3,009,730)(1,355,698 $(34,713,767)
- --------------------------------------------------------------------------------
+ On November 7, 1994, the former Class D shares were renamed Class C shares.
++ On November 7, 1994, the former Class C shares were renamed Class Z shares.
17
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
6. TRANSFER OF NET ASSETS
On October 15, 1993, the Fund acquired the assets and certain liabilities
of the Smith Barney Shearson 1990's Fund ("Shearson 1990's Fund"), pursuant to a
plan of reorganization approved by Shearson 1990's shareholders on October 12,
1993. On June 2, 1995, the Fund acquired the assets and certain liabilities of
the Smith Barney Funds, Inc.-Capital Appreciation Portfolio ("Capital
Appreciation Portfolio"), pursuant to a plan of reorganization approved by the
Capital Appreciation Portfolio shareholders on May 11, 1995. The following table
summarizes the transactions:
TOTAL NET COMBINED
SHARES ASSETS OF TOTAL NET TOTAL NET
ISSUED BY ACQUIRED ASSETS OF ASSETS OF
ACQUIRED FUND/PORTFOLIO THE FUND FUND/PORTFOLIO THE FUND POST MERGER
- --------------------------------------------------------------------------------
Shearson 1990's Fund 1,016,131 $ 27,086,966 $247,422,920 $274,589,886
- --------------------------------------------------------------------------------
Capital Appreciation Portfolio3,729,984 103,455,275 292,300,788 395,756,063
- --------------------------------------------------------------------------------
The total net assets of the Shearson 1990's Fund and Capital Appreciation
Portfolio before acquisition included unrealized appreciation of $9,088,361 and
$19,791,875, respectively.
18
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OF EACH CLASS OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR:
CLASS A SHARES 1995 1994 1993(1) 1992(1) 1991(1)
- --------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF YEAR $26.76 $23.59 $18.94 $20.12 $16.16
- --------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS:
Net investment loss (0.34) (0.32) (0.21) (0.07) (0.05)
Net realized and unrealized
gain (loss) on investments 8.48 3.49 4.86 (0.35) 4.95
- --------------------------------------------------------------------------------
Total Income (Loss) From
Operations 8.14 3.17 4.65 (0.42) 4.90
- --------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income -- -- -- -- --
Net realized gains (1.37) -- -- (0.76) (0.94)
- --------------------------------------------------------------------------------
Total Distributions (1.37) -- -- (0.76) (0.94)
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $33.53 $26.76 $23.59 $18.94 $20.12
- --------------------------------------------------------------------------------
TOTAL RETURN 31.95% 13.44% 24.55% (2.42)% 31.97%
- --------------------------------------------------------------------------------
NET ASSETS, END OF
YEAR (000S) $292,402 $180,917 $150,471 $181,459 $144,587
- --------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.37% 1.42%* 1.34% 1.05% 1.17%
Net investment loss (1.05) (1.23) (1.01) (0.31) (0.24)
- --------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE 44% 11% 13% 3% 23%
- --------------------------------------------------------------------------------
(1)Per share amounts have been calculated using the monthly average shares
method, which more appropriately presents the per share data for this
period, since use of the undistributed net investment income method does not
accord with results of operations for all classes of shares.
* The operating expense ratio excludes interest expense. The operating expense
ratio including interest expense would have been 1.43%.
19
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
FOR A SHARE OF EACH CLASS OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR:
CLASS B SHARES 1995 1994 1993(1)(2)
- --------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $26.42 $23.46 $20.52
- --------------------------------------------------------------------------------
INCOME FROM OPERATIONS:
Net investment loss (0.33) (0.29) (0.30)
Net realized and unrealized gain on investments 8.10 3.25 3.24
- --------------------------------------------------------------------------------
Total Income From Operations 7.77 2.96 2.94
- --------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income -- -- --
Net realized gains (1.37) -- --
- --------------------------------------------------------------------------------
Total Distributions (1.37) -- --
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $32.82 $26.42 $ 23.46
- --------------------------------------------------------------------------------
TOTAL RETURN 30.93% 12.62% 14.33%++
- --------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000S) $97,438 $49,741 $18,139
- --------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Expenses 2.12% 2.22%* 2.18%+
Net investment loss (1.80) (2.04) (1.86)+
- --------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE 44% 11% 13%
- --------------------------------------------------------------------------------
(1) For the period from November 6, 1992 (inception date) to August 31, 1995.
(2) Per share amounts have been calculated using the monthly average shares
method, which more appropriately presents the per share data for this
period, since use of the undistributed net investment income method does not
accord with results of operations for all classes of shares.
* The operating expense ratio excludes interest expense. The operating expense
ratio including interest expense would have been 2.23%
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
20
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
FOR A SHARE OF EACH CLASS OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR:
CLASS C SHARES(1) 1995 1994 1993(2)(3)
- --------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $26.42 $23.47 $21.14
- --------------------------------------------------------------------------------
INCOME FROM OPERATIONS:
Net investment loss (0.40) (0.17) (0.13)
Net realized and unrealized gain on investments 8.19 3.12 2.46
- --------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS 7.79 2.95 2.33
- --------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income -- -- --
Net realized gains (1.37) -- --
- --------------------------------------------------------------------------------
Total Distributions (1.37) -- --
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $32.84 $26.42 $23.47
- --------------------------------------------------------------------------------
TOTAL RETURN 31.01% 12.57% 11.02%++
- --------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000S) $72,324 $367 $24
- --------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Expenses 2.12% 2.08%* 2.11%+
Net investment loss (1.80) (1.90) (1.76)+
- --------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE 44% 11% 13%
- --------------------------------------------------------------------------------
(1)On November 7, 1994, the former Class D shares were renamed Class C shares.
(2)For the period from May 13, 1993 (inception date) to August 31, 1993.
(3)Per share amounts have been calculated using the monthly average shares
method, which more appropriately presents the per share data for this
period, since use of the undistributed net investment income method does not
accord with results of operations for all classes of shares.
* The operating expense ratio excludes interest expense. The operating expense
ratio including interest expense would have been 2.09%.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
21
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
FOR A SHARE OF EACH CLASS OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR:
CLASS Z SHARES(1) 1995 1994 1993(2)(3)
- --------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $26.94 $23.67 $20.52
- --------------------------------------------------------------------------------
INCOME FROM OPERATIONS:
Net investment loss (0.34) (0.31) (0.12)
Net realized and unrealized gain on investments 8.65 3.58 3.27
- --------------------------------------------------------------------------------
Total Income From Operations 8.31 3.27 3.15
- --------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income -- -- --
Net realized gains (1.37) -- --
- --------------------------------------------------------------------------------
Total Distributions (1.37) -- --
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $33.88 $26.94 $23.67
- --------------------------------------------------------------------------------
TOTAL RETURN 32.38% 13.81% 15.35%++
- --------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000S) $27,209 $24,467 $53,599
- --------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.12% 1.01%* 0.99%+
Net investment loss (0.80) (0.83) (0.67)+
- --------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE 44% 11% 13%
- --------------------------------------------------------------------------------
(1)On November 7, 1994, the former Class C shares were renamed Class Z shares.
(2) For the period from November 6, 1992 (inception date) to July 31, 1993.
(3)Per share amounts have been calculated using the monthly average shares
method, which more appropriately presents the per share data for this
period, since use of the undistributed net investment income method does not
accord with results of operations for all classes of shares.
* The operating expense ratio excludes interest expense. The operating expense
ratio including interest expense would have been 1.02%.
++ Total return is not annualized, as it may not be representative of the total
return for the year.
+ Annualized.
22
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
Change in Independent Auditor: On October 20, 1994, based upon the
recommendation of the Audit Committee of the Fund, the Board of Directors
determined not to retain Coopers & Lybrand L.L.P. ("Coopers & Lybrand") as the
Fund's independent auditor and voted to appoint KPMG Peat Marwick LLP. During
the Fund's two most recent fiscal years, Coopers & Lybrand's audit reports
contained no adverse opinion or disclaimer of opinion; nor were the reports
qualified or modified as to uncertainty, audit scope, or accounting principles.
Further, during this same period there were no disagreements with Coopers &
Lybrand on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which disagreements, if not resolved
to the satisfaction of Coopers & Lybrand, would have caused it to make reference
to the subject matter of such disagreements in connection with its audit
reports. The Fund has requested Coopers & Lybrand to provide a letter to the
Securities and Exchange Commission stating whether Coopers & Lybrand agrees with
the foregoing statements, and to provide the Fund with a copy of such letter. A
copy of this letter is available upon request by calling the Fund at (212)
723-9218. Smith Barney Aggressive Growth Fund Inc.
23
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH FUND INC.
- --------------------------------------------------------------------------------
INDEPENTDENT AUDITOR'S REPORT
- --------------------------------------------------------------------------------
The Shareholders and Board of Directors of
Smith Barney Aggressive Growth Fund Inc.:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Smith Barney Aggressive Growth Fund Inc. as of
August 31, 1995, and the related statement of operations, statement of changes
in net assets, and financial highlights for the year then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audit. The statement of changes
in net assets for the year ended August 31, 1994 and the financial highlights
for each of the years in the four-year period then ended, were audited by other
auditors whose report thereon, dated October 7, 1994, expressed an unqualified
opinion on that statement of changes in net assets and those financial
highlights.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of August 31, 1995, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Smith Barney Aggressive Growth
Fund Inc. as of August 31, 1995, and the results of its operations, changes in
its net assets and financial highlights for the year then ended, in conformity
with generally accepted accounting principles.
New York, New York
October 27, 1995
24
<PAGE>
SMITH BARNEY
AGGRESSIVE GROWTH
FUND INC.
DIRECTORS
Paul R. Ades
Herbert Barg
Alger B. Chapman
Dwight B. Crane
Frank Hubbard
Allan R. Johnson
Heath B. McLendon
Jerry Miller
Ken Miller
John F. White
OFFICERS
Heath B. McLendon
Chairman and
Investment Officer
Jessica M. Bibliowicz
President
Lewis E. Daidone
Senior Vice President
and Treasurer
Richard A. Freeman
Vice President and
Investment Officer
Thomas M. Reynolds
Controller
Christina T. Sydor
Secretary
SMITH BARNEY
- ------------
A Member of TravelersGroup{LOGO]
INVESTMENT ADVISER
Smith Barney Mutual Funds
Management Inc.
DISTRIBUTOR
Smith Barney Inc.
CUSTODIAN
PNC Bank
SHAREHOLDER
SERVICING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9134
Boston, MA 02205-9134
This report is submitted for the general information of the shareholders of the
Smith Barney Aggressive Growth Fund Inc. It is not authorized for distribution
to prospective investors unless accompanied or preceded by a current Prospectus
for the Fund, which contains information concerning the Fund's investment
policies and expenses as well as other pertinent information.
SMITH BARNEY AGGRESSIVE GROWTH FUND INC.
388 Greenwich Street
New York, New York 10013
FD0433 10/95
<PAGE>
