SEMI-
ANNUAL
REPORT
SMITH BARNEY SHEARSON
TELECOMMUNICATIONS
INCOME
FUND
JUNE 30, 1994
TELECOMMUNICATIONS INCOME FUND
DEAR SHAREHOLDER:
We are pleased to provide you with the Semi-Annual Report, which includes
the portfolio of investments for Smith Barney Shearson Telecommunications
Income Fund, for the six-month period ended June 30, 1994. As you know,
the Fund's primary objective is to provide current investment income with
growth of capital as a secondary objective. The Fund's holdings are con-
centrated in stocks of Bell Operating companies, with a minority portion
of the assets in other dividend-paying equities.
The Fund's aggregate total return (income plus change in share price) was
2.01% for the first six months of 1994. By comparison, Standard & Poor's
Daily Price Index of 500 Common Stocks (the "S&P 500"), an unmanaged index
used to portray common stock price movement of large U.S. companies that
historically have paid dividends on their stock, was (3.38)%. The Fund
outperformed this index because Bell Operating companies' stocks, which
comprise 95% of the portfolio, are viewed as defensive vehicles
and have provided dividend yields between 4.5% and 5.5% compared to the
dividend yield of the S&P 500 of 2.8%. In this uncertain market environ-
ment, defensive stocks with above-market yields performed very well.
We are optimistic about the prospects for the Bell Operating companies and
believe they will continue to provide the Fund with a level monthly divi-
dend. They have provided an attractive current dividend yield and a divi-
dend growth rate of 3%-5%. We believe this modest but steady earnings
growth rate of 4%-6% should help keep their stock prices fairly stable.
However, the basic copper wire telephone business is still evolving be-
cause of new technologies. Not all Bell Operating companies have the same
prospects and we have committed our investment resources to those we be-
lieve have the brightest future, particularly in the area of wireless com-
munication. Although wireless communications is not the Bell Operating
companies' major business, we believe it will be important to their future
growth. We expect wireless communications to revolutionize the way we do
business and become part of everyday life for many Americans by the year
2000. The elements leading the revolution are continuously improving cov-
erage and functionality, lower prices and new applications. We subdivide
the wireless technologies into three categories: cellular phones, special-
ized mobile radio, and wireless cable. Our enthusiasm for the industry is
based on the following assumptions:
* SUBSTANTIAL INDUSTRY GROWTH. We believe that the number of cellular
subscribers could quadruple over the next seven years, from 13 million
today to more than 49 million. This growth should drive local cellular
revenues up 19% a year, from $8.2 billion to more than $32 billion by
the year 2000.
* NEW PLAYERS JOIN THE GAME. With Motorola's backing, some specialized
mobile radio operators are developing enhanced networks (ESMR) that will
offer mobile telephone services similar to cellular. We believe that the
market for wireless telephones is so young that a third competitive of-
fering will help to expand the market, not cannibalize the existing
business.
* LOW-COST PROVIDER TO GRAB CABLE MARKET SHARE. While it provides the
same programming as traditional cable, wireless cable's subscriber rates
are 25%-40% lower. We look for wireless cable systems to reach penetra-
tion rates of 12% over the next five years, up from almost nothing
today.
We hope the Fund can provide you with a level of income that is higher
than that available on money market funds or other short-term instruments.
We are also encouraged by the long-term growth potential of our holdings.
Thank you again for your confidence in the Fund.
Sincerely,
Heath B. McLendon Guy R. Scott
Chairman of the Board Investment Administrator
and Investment Officer
August 22, 1994
PORTFOLIO OF INVESTMENTS (UNAUDITED) JUNE 30, 1994
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE
1)
<C> <S> <C>
COMMON STOCKS -- 98.8%
TELECOMMUNICATIONS -- 98.8%
214,436 Airtouch Communications $
5,066,010
264,942 Ameritech Corporation
10,134,031
278,092 Bell Atlantic Corporation
15,573,152
193,697 BellSouth Corporation
11,960,790
45,896 NYNEX Corporation
1,738,311
214,436 Pacific Telesis Group
6,620,712
247,008 Southwestern Bell Corporation
10,744,848
146,858 U.S. West, Inc.
6,149,679
TOTAL COMMON STOCKS (Cost $18,961,778)
67,987,533
CONVERTIBLE PREFERRED STOCK -- 1.3% (Cost $684,800)
16,000 Sears Roebuck & Company, Convertible Preferred,
Series A, Depository Shares Representing 1/4
share, PERCS
880,000
TOTAL INVESTMENTS (Cost $19,646,578*) 100.1%
68,867,533
OTHER ASSETS AND LIABILITIES (NET) (0.1)
(65,516)
NET ASSETS 100.0%
$68,802,017
<FN>
* Aggregate cost for Federal tax purposes was $14,969,998.
PERCS -- Preferred Equity Redemption Cumulative Stock.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) JUNE 30, 1994
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (Cost $19,646,578) (Note 1)
See accompanying schedule
$68,867,533
Cash
26,454
Dividends receivable
286,118
TOTAL ASSETS
69,180,105
LIABILITIES:
Notes payable (Note 6) $300,053
Investment advisory fee payable (Note 2) 42,614
Custodian fees payable (Note 2) 4,200
Transfer agent fees payable (Note 2) 2,000
Accrued expenses and other payables 29,221
TOTAL LIABILITIES
378,088
NET ASSETS
$68,802,017
NET ASSETS CONSIST OF:
Undistributed net investment income
$314,154
Accumulated net realized gain on investments sold
582,054
Unrealized appreciation of investments
49,220,955
Par value
646
Paid-in capital in excess of par value
18,684,208
TOTAL NET ASSETS
$68,802,017
NET ASSET VALUE, offering price and redemption price
per share ($68,802,017 / 646,130 shares of benefi-
cial interest outstanding)
$106.48
<FN>
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1994
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends
$1,629,282
Interest
14,972
TOTAL INVESTMENT INCOME
1,644,254
EXPENSES:
Investment advisory fee (Note 2) $255,076
Legal and audit fees 22,115
Custodian fees (Note 2) 12,323
Transfer agent fees (Note 2) 10,890
Trustees' fees and expenses (Note 2) 7,422
Other 15,384
TOTAL EXPENSES
323,210
NET INVESTMENT INCOME
1,321,044
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(NOTES 1 AND 3):
Net realized gain on investments sold during the
period
335,565
Net unrealized depreciation of investments during
the period
(373,922)
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS
(38,357)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$1,282,687
<FN>
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
YEAR
ENDED
ENDED
6/30/94
12/31/93
(UNAUDITED)
<S> <C> <C>
Net investment income $1,321,044
$2,587,760
Net realized gain on investments sold during the
period* 335,565
2,578,741
Net unrealized appreciation/(depreciation) of in-
vestments
during the period (373,922)
5,834,676
Net increase in net assets resulting from opera-
tions 1,282,687
11,001,177
Distributions to shareholders from:
Net investment income (1,030,367)
(2,919,439)
Net realized gain on investments (1,039,235)
(4,519,452)
Net decrease in net assets from Fund share transac-
tions (Note 4) (1,980,970)
(2,629,290)
Net decrease in net assets (4,050,572)
(10,068,181)
NET ASSETS:
Beginning of period 71,569,902
70,636,906
End of period (including undistributed net invest-
ment income of $314,154 and of $23,477, respec-
tively) $68,802,017
$71,569,902
<FN>
* Net realized gain for Federal tax purposes was $335,565 and $2,637,495,
respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
FINANCIAL HIGHLIGHTS
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX MONTHS YEAR YEAR
YEAR
ENDED ENDED ENDED
ENDED
06/30/94# 12/31/93 12/31/92
12/31/91
(UNAUDITED)
<S> <C> <C> <C>
<C>
Net asset value, beginning of pe-
riod $107.62 $102.67 $110.75
$129.06
Income from investment operations:
Net investment income 2.05 3.94 4.91
5.74
Net realized and unrealized gain/
(loss) on investments .01++ 12.30 6.79
(2.20)
Total from investment operations 2.06 16.24 11.70
3.54
Less distributions:
Distributions to shareholders from:
Dividends from net investment in-
come (1.60) (4.42) (4.55)
(6.05)
Distributions from net realized
capital gains (1.60) (6.87) (15.23)
(14.62)
Distributions from capital -- -- --
(1.18)
Distributions in excess of net re-
alized gains -- -- --
- --
Total distributions (3.20) (11.29) (19.78)
(21.85)
Net asset value, end of period $106.48 $107.62 $102.67
$110.75
Total return+ 2.01% 16.00% 10.89%
3.30%
Ratios to average net assets/sup-
plemental data:
Net assets, end of period (000's) $68,802 $71,570 $70,637
$79,419
Ratio of operating expenses to av-
erage net assets 0.95%** 0.93% 0.92%
0.90%
Ratio of net investment income to
average net assets 3.88%** 3.47% 4.41%
4.57%
Portfolio turnover rate 0% 0% 2%
18%
<FN>
** Annualized.
+ Total return represents aggregate total return for the periods indi-
cated.
++ The amount shown at this caption for each share outstanding throughout
the period may not accord with the charge in the aggregate gains and
losses in the portfolio securities for the period because of the timing
of purchases and withdrawals of shares in relation to the fluctuating
market values of the portfolio.
# As of June 15, 1994, the Fund changed its investment adviser from The
Boston Company Advisors, Inc. to its current investment adviser, Smith
Barney Strategy Advisers, Inc. The Boston Company Advisors, Inc. is
currently the sub-investment adviser to the Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
FINANCIAL HIGHLIGHTS
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
YEAR
YEAR
ENDED
ENDED
12/31/90
12/31/89
<S> <C>
<C>
Net asset value, beginning of year $140.93
$99.10
Income from investment operations:
Net investment income 6.10
5.18
Net realized and unrealized gain/(loss)
on
investments (8.98)
45.31
Total from investment operations (2.88)
50.49
Less distributions:
Distributions to shareholders from:
Dividends from net investment income (5.79)
(5.85)
Distributions from net realized capital
gains (3.20)
(2.65)
Distributions from capital -- -
- -
Distributions in excess of net realized
gains --
(0.16)
Total distributions (8.99)
(8.66)
Net asset value, end of period $129.06
$140.93
Total return+ (1.80)%
52.11%
Ratios to average net assets/supplemen-
tal data:
Net assets, end of period (000's) $94,854
$109,970
Ratio of operating expenses to average
net assets 0.92%
0.89%
Ratio of net investment income to aver-
age net assets 4.81%
4.32%
Portfolio turnover rate 3%
5%
<FN>
* The Fund commenced operations on January 1, 1984.
+ Total return represents aggregate total return for the periods indi-
cated.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR
YEAR
ENDED ENDED ENDED ENDED
ENDED
12/31/88 12/31/87 12/31/86 12/31/85
12/31/84*
<S> <C> <C> <C> <C>
$ 90.28 $ 99.20 $ 86.19 $ 70.16 $
61.25
5.55 5.87 5.54 5.30
5.36
9.66 (4.67) 15.38 16.87
7.71
15.21 1.20 20.92 22.17
13.07
(5.40) (7.20) (5.40) (5.34)
(4.16)
(0.99) (2.92) (2.51) (0.80) -
- -
-- -- -- -- -
- -
-- -- -- -- -
- -
(6.39) (10.12) (7.91) (6.14)
(4.16)
$ 99.10 $ 90.28 $ 99.20 $ 86.19 $
70.16
17.12% 0.91% 24.99% 33.30%
21.66%
$82,546 $80,349 $95,439 $88,926
$76,825
0.95% 0.97% 0.96% 1.07%
1.05%
5.70% 5.84% 5.68% 6.91%
8.14%
3% 6% 15% 21%
53%
<FN>
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Smith Barney Shearson Telecommunications Trust (the "Trust") was organized
as an unincorporated business trust under the laws of the Commonwealth of
Massachusetts on June 2, 1983. The Trust is registered with the Securities
and Exchange Commission under the Investment Company Act of 1940, as
amended (the "1940 Act"), as a non-diversified, open-end management in-
vestment company consisting of two portfolios, Smith Barney Shearson Tele-
communications Growth Fund and Smith Barney Shearson Telecommunications
Income Fund (the "Fund"), each with a separate investment objective. Each
Fund commenced operations on January 1, 1984, by issuing shares of the
Trust in a tax-free exchange for shares of American Telephone & Telegraph
Company with rights to the divested Bell regional operating companies at-
tached. The following is a summary of significant accounting policies con-
sistently followed by the Fund in the preparation of its financial state-
ments:
Portfolio valuation: Investments in securities which are traded on a na-
tional securities exchange are valued at the last reported sales price or,
in the absence of a recorded sale, at the mean of the closing bid and
asked prices. Over-the-counter securities are valued at the closing bid
price. Short-term investments with maturities of 60 days or less from the
valuation date are valued on the basis of amortized cost.
Repurchase agreements: The Fund engages in repurchase agreement transac-
tions. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of
the seller to repurchase, and the Fund to resell, the obligation at an
agreed-upon price and time, thereby determining the yield during the
Fund's holding period. This arrangement results in a fixed rate of return
that is not subject to market fluctuations during the Fund's holding pe-
riod. The value of the collateral is at least equal at all times to the
total amount of the repurchase obligations, including interest. In the
event of counterparty default, the Fund has the right to use the collat-
eral to offset losses incurred. There is potential loss to the Fund in the
event that the Fund is delayed or prevented from exercising its rights to
dispose of the collateral securities including the risk of a possible de-
cline in the value of the underlying securities during the period while
the Fund seeks to assert its rights. The Fund's investment adviser, acting
under the supervision of the Board of Trustees, reviews the value of the
collateral and the creditworthiness of those banks and dealers with which
the Fund enters into repurchase agreements to evaluate potential risks.
Securities transactions and investment income: Securities transactions
are recorded as of the trade date. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Interest income is re-
corded on the accrual basis. Realized gains or losses on sales of invest-
ments are determined on the basis of identified cost.
Dividends and distributions to shareholders: Dividends from net invest-
ment income, if any, of the Fund are declared monthly and are paid on the
last day of the Smith Barney Inc. ("Smith Barney") statement month. Dis-
tributions, if any, of any net short-and long-term capital gains earned by
the Fund will be made annually after the close of the fiscal year in which
they are earned. Additional distributions of net investment income and
capital gains from the Fund may be made at the discretion of the Trust's
Board of Trustees in order to avoid the application of a 4% nondeductible
excise tax on certain undistributed amounts of ordinary income and capital
gains.
Income distributions and capital gain distributions are determined in ac-
cordance with income tax regulations which may differ from generally ac-
cepted accounting principles. These differences are primarily due to dif-
fering treatments of income and gains on various investment securities
held by the Fund, timing differences and differing characterization of
distributions made by the Fund.
Federal taxes: It is the Fund's policy to qualify as a regulated invest-
ment company, if such qualification is in the best interest of its share-
holders, by complying with the requirements of the Internal Revenue Code
of 1986, as amended, applicable to regulated investment companies and by
distributing substantially all of its taxable income to its shareholders.
Therefore, no Federal income tax provision is required.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE
AND OTHER TRANSACTIONS
Prior to the close of business on June 15, 1994, the Trust on behalf of
the Fund had entered into an investment advisory agreement with The Boston
Company Advisors, Inc. ("Boston Advisors"), an indirect wholly owned sub-
sidiary of Mellon Bank Corporation ("Mellon"). Under this agreement, the
Fund paid a monthly fee at an annual rate of 0.75% of the value of its av-
erage daily net assets.
As of the close of business on June 15, 1994, Smith Barney Strategy Advis-
ers Inc. ("SBSA"), an affiliate of Smith Barney, succeeded Boston Advisors
as the Fund's investment adviser. The new investment advisory agreement
contains the same terms and conditions as the predecessor agreement. SBSA
receives a monthly fee paid at the annual rate of .55% of the value of the
Fund's average daily net assets.
As of the close of business on June 15, 1994, Boston Advisors was ap-
pointed as the Fund's sub-investment adviser pursuant to a written agree-
ment (the "Sub-Advisory Agreement"). Under the terms of the Sub- Advisory
Agreement, SBSA pays Boston Advisors a monthly fee at an annual rate of
.275% of the value of the Fund's average daily net assets.
Prior to April 21, 1994, Boston Advisors provided the Fund with adminis-
tration services under the terms of the Advisory Agreement between the
Fund and Boston Advisors. As of the close of business on April 21, 1994,
Smith, Barney Advisers, Inc. ("SBA"), which is controlled by Smith Barney
Holdings Inc. ("Holdings"), a wholly owned subsidiary of The Travelers
Inc., succeeded Boston Advisors as the Fund's administrator. The Fund pays
SBA .20% of the value of the Fund's average daily net assets.
As of the close of business on April 21, 1994, the Fund entered into a
sub-administration agreement (the "Sub-Administration Agreement") with
Boston Advisors. Under the Sub-Administration Agreement, Boston Advisors
is paid by SBA at a rate agreed upon from time to time between SBA and
Boston Advisors.
For the six months ended June 30, 1994, the Fund incurred total brokerage
commissions of $2,000, all of which was paid to Smith Barney.
No officer, director or employee of Smith Barney or any parent or subsid-
iary of Smith Barney receives any compensation from the Trust for serving
as a Trustee or officer of the Trust. The Trust pays each of its Trustees
who is not an officer, director or employee of Smith Barney or any of its
affiliates $4,500 annually plus $250 for each meeting attended and reim-
burses each such Trustee for travel and out-of-pocket expenses.
Boston Safe Deposit and Trust Company, an indirect wholly owned subsidiary
of Mellon, serves as the Trust's custodian. The Shareholder Services
Group, Inc., a subsidiary of First Data Corporation, serves as the Trust's
transfer agent.
3. PURCHASES AND SALES OF SECURITIES
Proceeds from sales of securities, excluding short-term obligations, ag-
gregated $1,037,965, during the six months ended June 30, 1994. No pur-
chases were made during the six months ended June 30, 1994.
At June 30, 1994, aggregate gross unrealized appreciation for all securi-
ties in which there was an excess of value over tax cost was $53,897,535.
4. SHARES OF BENEFICIAL INTEREST
The Trustees have authority to issue an unlimited number of shares of ben-
eficial interest of the Trust, with par value of $.001 per share. Each
Fund constitutes a sub-trust under an Amended and Restated Master Trust
Agreement. Shares of two sub-trusts have been authorized by the Trustees
of the Trust. The shares of the Fund are described herein.
Transactions in shares of the Fund were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
6/30/94 12/31/93
SHARES AMOUNT SHARES
AMOUNT
<S> <C> <C> <C> <C>
Issued as reinvestment of
dividends 3,359 $ 353,021 8,738 $
970,506
Issued as reinvestment of
capital gains 3,603 371,537 14,430
1,557,844
Redeemed (25,862) (2,705,528) (46,167)
(5,157,640)
Net decrease (18,900) $(1,980,970) (22,999)
$(2,629,290)
</TABLE>
5. CONCENTRATION OF CREDIT
Because the Fund concentrates its investments in one industry, its portfo-
lio may be subject to greater risk and market fluctuations than a portfo-
lio of securities representing a broader range of investment alternatives.
The risks could adversely affect the ability and inclination of the issu-
ers within the telecommunications industry to declare or pay dividends and
the ability of holders of common stock to realize any value from the as-
sets of the issuer upon liquidation or bankruptcy.
6. NOTES PAYABLE
The Fund and several affiliated entities participate in a $50 million line
of credit provided by Continental Bank N.A. under an Amended and Restated
Line of Credit Agreement (the "Agreement") dated April 30, 1992 and re-
newed effective May 31, 1994, primarily for temporary or emergency pur-
poses, including the meeting of redemption requests that otherwise might
require the untimely disposition of securities. Under this Agreement, the
Fund may borrow up to the lesser of $25 million or 20% of its net assets.
Interest is payable either at the bank's Money Market Rate or the London
Interbank Offered Rate (LIBOR) plus .375% on an annualized basis. Under
the terms of the Agreement, as amended, the Fund and the other affiliated
entities are charged an aggregate commitment fee of $100,000 which is al-
located equally among each of the participants. The Agreement requires,
among other provisions, each participating fund to maintain a ratio of net
assets (not including funds borrowed pursuant to the Agreement) to aggre-
gate amount of indebtedness pursuant to the Agreement of no less than 5 to
1. At June 30, 1994, the Fund had outstanding borrowings of $300,053. Dur-
ing the six months ended June 30, 1994, the Fund had an average outstand-
ing daily balance of $4,972 with interest rates ranging from 4.625% to
6.375%. Interest expense totalled $131 for the six months ended June 30,
1994.
PARTICIPANTS
DISTRIBUTOR
Smith Barney Inc.
388 Greenwich Street
New York, New York 10013
INVESTMENT ADVISER
Smith Barney Strategy
Advisers, Inc.
1345 Avenue of the Americas
New York, New York 10105
ADMINISTRATOR
Smith, Barney Advisers, Inc.
1345 Avenue of the Americas
New York, New York 10105
SUB-INVESTMENT ADVISER
AND SUB-ADMINISTRATOR
The Boston Company Advisors, Inc.
One Boston Place
Boston, Massachusetts 02108
AUDITORS AND COUNSEL
Coopers & Lybrand
One Post Office Square
Boston, Massachusetts 02109
Willkie Farr & Gallagher
153 East 53rd Street
New York, New York 10022
TRANSFER AGENT
The Shareholder Services
Group, Inc.
Exchange Place
Boston, Massachusetts 02109
CUSTODIAN
Boston Safe Deposit
and Trust Company
One Boston Place
Boston, Massachusetts 02108
OUR APPROACH TO MUTUAL FUND INVESTING
1. PERSONAL SERVICE
The Smith Barney Financial Consultant ("FC") is highly trained and deeply
committed to client service. Your FC works with you to establish a rela-
tionship based on one-to-one communication and the highest standards of
quality.
2. ANALYZING YOUR NEEDS
Defining your needs and establishing specific goals is the first step to-
ward any successful investment program. The Smith Barney Strategic Asset
Allocator -- a sophisticated financial planning tool -- can help you and
your FC evaluate your resources and objectives. This groundwork then be-
comes the basis for a strategy designed specifically for you. Your FC can
use the Strategic Asset Allocator on a periodic basis to ensure that your
investment strategy is keeping pace with your changing needs and goals.
3. A UNIQUE MUTUAL FUND INVESTMENT PROGRAM
Your Smith Barney FC offers a number of mutual fund assessment tools that
are unmatched in the financial services industry. Smith Barney FCs have
access to a proprietary mutual fund research database that provides infor-
mation at their fingertips on more than 2,100 funds. In addition, working
with another proprietary system known as the Mutual Fund Evaluation Ser-
vice, your FC can help guide you through the complex mutual fund maze.
Specifically, the Evaluation Service can provide a clear picture of the
past performance of mutual funds you currently own. Presented in both
graphic and numerical form, this illustration provides a wealth of easily
understood data on more that 2,100 funds. This complimentary service al-
lows you to judge whether your mutual fund has helped meet your investment
needs.
4. LOOKING AHEAD
Selecting a mutual fund should not be a one-event process that ends with
the purchase of shares. You can count on the expertise of your FC as he or
she continues to monitor and evaluate your funds, to suggest new strate-
gies and to listen. That, in our opinion, is how to use mutual funds to
help achieve your financial goals.
TELECOMMUNICATIONS
INCOME
FUND
TRUSTEES
Paul R. Ades
Herbert Barg
Allan Johnson
Heath B. McLendon
Ken Miller
John F. White
OFFICERS
Heath B. McLendon
Chairman of the Board
and Investment Officer
Stephen J. Treadway
President
Richard P. Roelofs
Executive Vice President,
Secretary and Treasurer
Guy R. Scott
Investment Administrator
Recycled
Recyclable
This report is submitted for
the general information of the
shareholders of Smith Barney
Shearson Telecommunications
Income Fund. It is not authorized for
distribution to prospective investors
unless accompanied or preceded by
an effective Prospectus for the Fund,
which contains information
concerning the Fund's investment
policies, fees and expenses as well
as other pertinent information.
SMITH BARNEY
SMITH BARNEY SHEARSON
MUTUAL FUNDS
Two World Trade Center
New York, New York 10048
Fund 11
FD0412 H4
