[GRAPHIC OMITTED]
Smith Barney
Telecommunications
Income Fund
- -------------
ANNUAL REPORT
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December 31, 1998
[LOGO] Smith Barney Mutual Funds
Investing for your future.
Every day.(R)
<PAGE>
Smith Barney
Telecommunications
Income Fund
[PHOTO OMITTED] [PHOTO OMITTED]
HEATH B. ROBERT E.
MCLENDON SWAB
Chairman Investment Officer
Dear Shareholder:
We are pleased to provide the annual report for the year ended December 31, 1998
for the Smith Barney Telecommunications Income Fund ("Fund"). In this report, we
review the factors driving the Fund's performance during the reporting period
and discuss our outlook for the Bell operating companies that currently
represent about 87% of the Fund's holdings. A more detailed summary of the
Fund's performance and current holdings may be found in the appropriate sections
that follow. We hope you find this report to be informative and useful.
Market and Performance Update
The Telecommunications Income Fund's main objective is to provide shareholders
with current income with growth of capital as a secondary objective. Over the
past year, the Fund has provided its shareholders with a total return of 53.72%.
This compared favorably to the 40.79% average return generated by all
telecommunication funds followed by Lipper, Inc., a major fund-tracking
organization. Fund performance benefited from a significant rise in the stock
prices of the Bell operating companies, which currently represent approximately
87% of the Fund's assets. In this report, we provide a general overview of
recent events affecting the Regional Bell Operating Companies (RBOCs) and
furnish a brief outlook for the group.
The RBOCs continued to go through a period of transition this past year in
response to the broad changes introduced to the telecommunications industry by
the Telecommunications Act of 1996 ("Act"). The deregulation of the
telecommunications industry as outlined by the Act has opened the door to the
potential for increased competition in several different areas, particularly the
local phone exchange business and long distance telephone service business.
In order to gain an edge on the competition and increase market share, several
of the RBOCs have either merged, entered into merger discussions or have formed
strategic alliances. For example, Bell Atlantic has recently offered to buy GTE,
one of the largest publicly held telecommunications companies in the world.
Ameritech and SBC Communications, two of the original RBOCs, have agreed to
merge. Some investors believe these major telecom combinations should transform
the industry as activity is set to create only a handful of huge telephone
companies that would command a market share of some 75% in the local and long
distance market.
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Smith Barney Telecommunications Income Fund 1
<PAGE>
Although the majority of the assets in the Fund are invested in the "Baby
Bells," the remaining 13% of the assets are invested in Airtouch Communications,
a wireless telecommunications company licensed to provide cellular services for
approximately 235 million people worldwide. Airtouch Communications is presently
in negotiations to be acquired by Vodafone Group PLC, a U.K. based mobile
telecommunications company. We believe that this transaction is indicative of
the potential for future global integration of the entire telecommunications
industry.
Market Outlook
We remain optimistic about the outlook for the Bell operating companies as these
stocks offer a potentially safe haven for conservative investors concerned about
ongoing global financial uncertainties. The RBOCs should continue to grow
earnings 9%-11% over the next few years as deregulation opens new markets,
specifically long-distance services. In addition, heavy spending on new
technology in the wireless communications and data networking areas should help
these companies gain an edge on the competition and possibly gain more market
share. Looking forward, we believe that the telecommunications industry will be
partially shaped by international developments. The Baby Bells are presently
investing globally and this should also help earnings growth over the next
several years. Finally, we believe these companies will continue to maintain
attractive dividend policies.
On a more somber note, we report with much sadness the passing of Emeritus
Director Allan R. Johnson on November 26, 1998. Allan made many valuable
contributions to the Board and the Fund during his tenure and he will be missed.
In summary, thank you for investing in the Smith Barney Telecommunications
Income Fund. We encourage you to visit our Web site at www.smithbarney.com.
Sincerely,
/s/ Heath B. McLendon /s/ Robert Swab
Heath B. McLendon Robert Swab
Chairman Investment Officer
January 25, 1999
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2 1998 Annual Report to Shareholders
<PAGE>
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Historical Performance
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
------------------------
Beginning End Income Capital Gain Return Total
Year Ended of Year of Year Dividends Distributions of Capital Returns+
=====================================================================================================
<S> <C> <C> <C> <C> <C> <C>
12/31/98 $134.06 $176.20 $ 2.22 $ 22.08 $ 0.00 53.72%
- -----------------------------------------------------------------------------------------------------
12/31/97 104.62 134.06 2.83 13.61 0.00 45.11
- -----------------------------------------------------------------------------------------------------
12/31/96 119.69 104.62 3.12 9.72 0.00 (1.45)
- -----------------------------------------------------------------------------------------------------
12/31/95 95.62 119.69 3.58 11.50 0.00 42.93
- -----------------------------------------------------------------------------------------------------
12/31/94 107.62 95.62 4.05 6.06 0.00 (1.83)
- -----------------------------------------------------------------------------------------------------
12/31/93 102.67 107.62 4.42 6.87 0.00 16.00
- -----------------------------------------------------------------------------------------------------
12/31/92 110.75 102.67 4.55 15.23 0.00 10.89
- -----------------------------------------------------------------------------------------------------
12/31/91 129.06 110.75 6.05 14.62 1.18 3.30
- -----------------------------------------------------------------------------------------------------
12/31/90 140.93 129.06 5.79 3.20 0.00 (1.80)
- -----------------------------------------------------------------------------------------------------
12/31/89 99.10 140.93 5.85 2.81 0.00 52.11
- -----------------------------------------------------------------------------------------------------
12/31/88 90.28 99.10 5.40 0.99 0.00 17.12
=====================================================================================================
Total $ 47.86 $106.69 $ 1.18
=====================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends quarterly and capital gains, if
any, twice a year.
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Average Annual Total Returns+
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================================================================================
Year Ended 12/31/98 53.72%
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Five Years Ended 12/31/98 25.27
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Ten Years Ended 12/31/98 19.87
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1/1/84* through 12/31/98 19.60
================================================================================
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Cumulative Total Return+
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================================================================================
12/31/88 through 12/31/98 512.26%
================================================================================
+ Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value.
* Commencement of operations.
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Smith Barney Telecommunications Income Fund 3
<PAGE>
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Historical Performance (unaudited)
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Growth of $10,000 Invested in
the Smith Barney Telecommunications Income Fund vs.
Standard & Poor's 500 Index and Lipper Equity Income Fund Index+
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December 1988 -- December 1998
[GRAPHIC OMITTED]
[The following table was depicted as a line graph in the printed material.]
12/98
Smith Barney Telecommunications Income Fund $61,226
Lipper Equity Income Fund Index $39,627
Standard &Poor's 500 Index $57,947
+ Hypothetical illustration of $10,000 invested in the Smith Barney
Telecommunications Income Fund on December 31, 1988, assuming reinvestment
of dividends and capital gains, if any, at net asset value through
December 31, 1998. The Standard & Poor's 500 Index is composed of widely
held common stocks listed on the New York Stock Exchange, American Stock
Exchange and the over-the-counter market. Figures for the index include
reinvestment of dividends. The Lipper Equity Income Fund Index is a net
asset value weighted index of the 30 largest funds in the Equity Income
category. The indexes are unmanaged and are not subject to the same
management and trading expenses as a mutual fund.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption value may be more or less than the original cost. No adjustment
has been made for shareholder tax liability on dividends or capital gains.
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4 1998 Annual Report to Shareholders
<PAGE>
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Schedule of Investments December 31, 1998
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
================================================================================
COMMON STOCK -- 99.3%
Telecommunications -- 99.3%
164,436 Airtouch Communications Inc.+ $11,859,947
272,184 Ameritech Corp. 17,249,661
323,180 Bell Atlantic Corp. 18,360,664
378,888 Bellsouth Corp. 18,897,039
371,394 SBC Communications Inc. 19,916,003
146,858 U.S. West Communications Inc. 9,490,698
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $9,984,646) 95,774,012
================================================================================
FACE
AMOUNT SECURITY VALUE
================================================================================
REPURCHASE AGREEMENT -- 0.7%
$701,000 Morgan Stanley Dean Witter & Co., 4.650% due 1/4/99;
Proceeds at maturity -- $701,362; (Fully collateralized
by U.S. Treasury Notes, 6.50% due 8/15/05; U.S. Treasury
Notes, 6% due 8/15/99; U.S Treasury Notes, 6.375% due
7/15/99; U.S. Treasury Bond, 6.375% due 8/15/27;
Market value -- $718,287)
(Cost -- $701,000) 701,000
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost-- $10,685,646*) $96,475,012
================================================================================
+ Non-income producing security.
* Aggregate cost for Federal income tax purposes is $7,613,606.
See Notes to Financial Statements.
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Smith Barney Telecommunications Income Fund 5
<PAGE>
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Statement of Assets and Liabilities December 31, 1998
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ASSETS:
Investments at value (Cost-- $10,685,646*) $96,475,012
Cash 56
Dividend and interest receivable 86,509
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Total Assets 96,561,577
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LIABILITIES:
Investment advisory fees payable 60,019
Administration fees payable 13,727
Accrued expenses 34,620
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Total Liabilities 108,366
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Total Net Assets $96,453,211
================================================================================
NET ASSETS:
Par value of capital shares $ 547
Capital paid in excess of par value 7,156,007
Undistributed net investment income 20,906
Accumulated net realized gain on security transactions 3,486,385
Net unrealized appreciation of investments 85,789,366
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Total Net Assets $96,453,211
================================================================================
Shares Outstanding 547,397
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Net Asset Value, per share (and redemption price) $ 176.20
- --------------------------------------------------------------------------------
* Aggregate cost for Federal income tax purposes is $7,613,606.
See Notes to Financial Statements.
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6 1998 Annual Report to Shareholders
<PAGE>
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Statement of Operations For the Year Ended December 31, 1998
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 1,915,758
Interest 10,806
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Total Investment Income 1,926,564
- --------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees (Note 2) 441,033
Administration fees (Note 2) 160,376
Audit and legal fees 35,606
Trustees' fees 32,660
Shareholder and system servicing fees 27,946
Shareholder communications 7,543
Custody 3,851
Other 4,522
- --------------------------------------------------------------------------------
Total Expenses 713,537
- --------------------------------------------------------------------------------
Net Investment Income 1,213,027
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS (NOTE 3):
Realized Gain From Security Transactions
(excluding short-term securities):
Proceeds from sales 11,423,491
Cost of securities sold 1,424,603
- --------------------------------------------------------------------------------
Net Realized Gain 9,998,888
- --------------------------------------------------------------------------------
Change in Net Unrealized Appreciation of Investments:
Beginning of year 61,175,483
End of year 85,789,366
- --------------------------------------------------------------------------------
Increase in Net Unrealized Appreciation 24,613,883
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Net Gain on Investments 34,612,771
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Increase in Net Assets From Operations $35,825,798
================================================================================
See Notes to Financial Statements.
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Smith Barney Telecommunications Income Fund 7
<PAGE>
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Statements of Changes in Net Assets For the Years Ended December 31,
- --------------------------------------------------------------------------------
1998 1997
================================================================================
OPERATIONS:
Net investment income $ 1,213,027 $ 1,577,412
Net realized gain+ 9,998,888 11,653,203
Increase in net unrealized appreciation 24,613,883 12,237,948
- --------------------------------------------------------------------------------
Increase in Net Assets From Operations 35,825,798 25,468,563
- --------------------------------------------------------------------------------
DISTRIBUTION TO SHAREHOLDERS FROM:
Net investment income (1,189,940) (1,579,593)
Net realized gains (11,691,275) (7,348,267)
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Decrease in Net Assets From
Distributions to Shareholders (12,881,215) (8,927,860)
- --------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 5):
Net asset value of shares issued
for reinvestment of dividends 5,413,986 3,568,839
Cost of shares reacquired (5,178,814) (9,817,656)
- --------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Fund Share Transactions 235,172 (6,248,817)
- --------------------------------------------------------------------------------
Increase in Net Assets 23,179,755 10,291,886
NET ASSETS:
Beginning of year 73,273,456 62,981,570
- --------------------------------------------------------------------------------
End of year* $ 96,453,211 $ 73,273,456
================================================================================
* Includes undistributed (overdistributed)
net investment income of: $ 20,906 $ (2,181)
================================================================================
+ Net realized gains for Federal income tax purposes are $10,292,661 and
$11,928,476, for the years ended December 31, 1998 and 1997, respectively.
See Notes to Financial Statements.
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8 1998 Annual Report to Shareholders
<PAGE>
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Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
The Smith Barney Telecommunications Income Fund ("Fund"), an investment fund of
the Smith Barney Telecommunications Trust ("Trust"), a Massachusetts business
trust, is registered under the Investment Company Act of 1940, as amended, as a
non-diversified, open-end management investment company. Shares of the Fund are
not currently offered for sale to new investors.
The significant accounting policies consistently followed by the Fund are: (a)
security 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 were reported are valued at current quoted
bid prices; securities 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; (c) securities maturing within 60 days are valued at cost plus
accreted discount, or minus amortized premium, which approximates value; (d)
dividend income is recorded on the ex-dividend date and interest income is
recorded on the accrual basis; (e) dividends and distributions to shareholders
are recorded on the ex-dividend date; (f) gains or losses on the sale of
securities are calculated using the average-cost method for financial reporting
purposes and the specific identification method for tax purposes; (g) 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; (h) income distributions and capital gain
distributions are determined in accordance with income tax regulations which
differ from generally accepted accounting principles. These differences are
primarily due to differing accounting methods adopted for income tax purposes,
and various timing differences; and (i) estimates and assumptions are required
to be made regarding assets, liabilities and changes in net assets resulting
from operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ.
2. Investment Advisory Agreement, Administration Agreement and Other
Transactions
Mutual Management Corp. ("MMC"), a subsidiary of Salomon Smith Barney Holdings
Inc. ("SSBH"), acts as investment adviser to the Trust. The Fund pays MMCan
investment advisory fee calculated at an annual rate of 0.55% of the average
daily net assets. This fee is calculated daily and paid monthly.
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Smith Barney Telecommunications Income Fund 9
<PAGE>
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Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
MMC acts as the administrator of the Trust for which it receives a fee
calculated at an annual rate of 0.20% of the average daily net assets of each
fund. This fee is calculated daily and paid monthly.
On October 8, 1998, CFBDS, Inc., became the Fund's distributor. Prior to that
date, Salomon Smith Barney Inc. ("SSB"), another subsidiary of SSBH, was the
Fund's distributor.
For the year ended December 31, 1998, the Trust paid SSB brokerage commissions
of $790.
All officers and one Trustee of the Trust are employees of SSB.
3. Investments
During the year ended December 31, 1998, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
================================================================================
Purchases --
- --------------------------------------------------------------------------------
Sales $11,423,491
================================================================================
At December 31, 1998, the aggregate gross unrealized appreciation and
depreciation of investments for Federal income tax purposes were as follows:
================================================================================
Gross unrealized appreciation $88,861,406
Gross unrealized depreciation --
- --------------------------------------------------------------------------------
Net unrealized appreciation $88,861,406
================================================================================
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 Fund requires continual maintenance
of the market value of the collateral in amounts at least equal to the
repurchase price.
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10 1998 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
5. Shares of beneficial interest
At December 31, 1998, the Trust had an unlimited number of shares of beneficial
interest authorized with a par value of $0.001 per share.
Transactions in shares of the Fund were as follows:
Year Ended Year Ended
December 31, 1998 December 31, 1997
================================================================================
Shares issued on reinvestment 36,069 27,784
Shares redeemed (35,263) (83,210)
- --------------------------------------------------------------------------------
Net Increase (Decrease) 806 (55,426)
================================================================================
6. Concentration of Credit Risk
Because the Fund concentrates its investments in one industry, its portfolio may
be subject to greater risk and market fluctuations than a portfolio of
securities representing a broader range of investment alternatives. The economic
and business cycle risks associated with the concentration of the Fund in only
one industry could mean that adverse conditions could substantially impact the
income earned by the Fund and the value of the Fund's holdings.
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Smith Barney Telecommunications Income Fund 11
<PAGE>
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Financial Highlights
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding throughout each year ended
December 31:
<TABLE>
<CAPTION>
1998 1997 1996 1995 1994
=========================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year $134.06 $104.62 $119.69 $ 95.62 $ 107.62
- ---------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 2.26 2.83 3.12 3.58 4.02
Net realized and unrealized
gain (loss) 64.18 43.05 (5.35) 35.57 (5.91)
- ---------------------------------------------------------------------------------------------------------
Total Income (Loss)
From Operations 66.44 45.88 (2.23) 39.15 (1.89)
- ---------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (2.22) (2.83) (3.12) (3.58) (4.05)
Net realized gains (22.08) (13.61) (9.72) (11.50) (6.06)
- ---------------------------------------------------------------------------------------------------------
Total Distributions (24.30) (16.44) (12.84) (15.08) (10.11)
- ---------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $176.20 $134.06 $104.62 $ 119.69 $ 95.62
- ---------------------------------------------------------------------------------------------------------
Total Return 53.72% 45.11% (1.45)% 42.93% (1.83)%
- ---------------------------------------------------------------------------------------------------------
Net Assets, End of Year (000s) $96,453 $73,273 $62,982 $74,8.41 $61,2.56
- ---------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.89% 0.92% 0.90% 0.95% 0.95%
Net investment income 1.51 2.35 2.80 3.23 3.80
- ---------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 0% 0% 0% 0% 0%
=========================================================================================================
</TABLE>
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12 1998 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Independent Auditors' Report
- --------------------------------------------------------------------------------
The Shareholders and Board of Trustees of
Smith Barney Telecommunications Trust:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of the Smith Barney Telecommunications Income Fund
of Smith Barney Telecommunications Trust as of December 31, 1998, and the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the years in the two-year period then ended,
and the financial highlights for each of the years in the three-year period 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
audits. The financial highlights for the year ended December 31, 1994 was
audited by other auditors whose report thereon, dated February 3, 1995,
expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reason able 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
December 31, 1998, by correspondence with the custodian. As to securities sold
but not delivered, we performed other appropriate auditing procedures. 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 audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Smith Barney Telecommunications Income Fund of Smith Barney Telecommunications
Trust as of December 31, 1998, and the results of its operations for the year
then ended, the changes in its net assets for each of the years in the two-year
period then ended, and the financial highlights for each of the years in the
three-year period then ended, in conformity with generally accepted accounting
principles.
/s/ KPMG LLP
New York, New York
February 8, 1999
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Smith Barney Telecommunications Income Fund 13
<PAGE>
- --------------------------------------------------------------------------------
Additional Shareholder Information (unaudited)
- --------------------------------------------------------------------------------
On February 6, 1998, a special meeting of shareholders of the Trust was held for
the purpose of voting on the following matters:
1. To elect Trustees of the Trust; and
2. To approve or disapprove the reclassification, modification and/or
elimination of certain fundamental investment policies.
The results of the vote on Proposal 1 were as follows:
<TABLE>
<CAPTION>
Shares Percentage Shares Percentage
Voted of Shares Voted of Shares
Name of Trustees For Voted Against Voted
======================================================================================
<S> <C> <C> <C> <C>
Paul R. Ades 326,799.054 99.415% 1,923.323 0.585%
Herbert Barg 324,194.689 98.623 4,527.688 1.377
Dwight B. Crane 326,799.054 99.415 1,923.323 0.585
Frank Hubbard 326,799.054 99.415 1,923.323 0.585
Jerome Miller 326,799.054 99.415 1,923.323 0.585
Ken Miller 326,799.054 99.415 1,923.323 0.585
Heath B. McLendon 326,799.054 99.415 1,923.323 0.585
======================================================================================
</TABLE>
Proposal 2 requested that shareholders approve certain changes to the
fundamental policies of the Fund in order to modernize them in view of certain
regulatory, business or industry developments that have occurred since original
adoption of these policies by the Fund. The following chart demonstrates that
all proposals were approved by shareholders.
Please note that "M" indicates a modification of the policy and "E" indicates
the elimination of the policy.
================================================================================
M Issuance of Senior Securities Approved
- --------------------------------------------------------------------------------
M Borrowing Approved
- --------------------------------------------------------------------------------
M Lending by the Fund Approved
- --------------------------------------------------------------------------------
E Limiting Investments to Enumerated Instruments Approved
- --------------------------------------------------------------------------------
M Real Estate Approved
================================================================================
The information below reports the lowest percentage of shares voting for the
proposals, the highest percentage of shares voting against and abstaining by
shareholders of the Fund on all proposals.
Shares Percentage Shares Percentage Percentage
Voted of Shares Voted of Shares Shares of Shares
For Voted Against Voted Abstained Abstained
================================================================================
306,639.822 93.409% 7,314.991 2.228% 14,322.564 4.363%
================================================================================
- --------------------------------------------------------------------------------
14 1998 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Tax Information (unaudited)
- --------------------------------------------------------------------------------
For Federal tax purposes, the Fund hereby designates for the fiscal year ended
December 31, 1998:
o 100% of the ordinary dividends paid as qualifying for the corporate
dividends received deduction.
o Total long-term capital gain distributions paid of $11,691,275.
- --------------------------------------------------------------------------------
Smith Barney Telecommunications Income Fund 15
<PAGE>
(This page intentionally left blank.)
<PAGE>
SALOMON SMITH BARNEY
---------------------------
A member of citigroup[LOGO]
Trustees
Paul R. Ades
Herbert Barg
Dwight B. Crane
Frank G. Hubbard
Heath B. McLendon, Chairman
Jerome Miller
Ken Miller
John F. White, Emeritus
Officers
Heath B. McLendon
President and
Chief Executive Officer
Lewis E. Daidone
Senior Vice President
and Treasurer
Robert E. Swab
Investment Officer
Paul A. Brook
Controller
Christina T. Sydor
Secretary
Investment Adviser
Smith Barney Strategy
Advisers Inc.
Administrator
Mutual Management Corp.
Distributor
CFBDS, Inc.
Custodian
PNCBank, N.A.
Shareholder
Service Agent
First Data Investor Services Group, Inc.
P.O. Box 9134
Boston, MA 02205-9134
This report is submitted for the general information of shareholders of Smith
Barney Telecommunications Income Fund. 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.
Salomon Smith Barney is a service mark of Salomon Smith Barney Inc.
Smith Barney
Telecommunications
Income Fund
388 Greenwich Street, MF-2
New York, New York 10013
www.smithbarney.com
FD0321 2/99
