Global
Opportunities
Fund
Trustees
Paul R. Ades
Herbert Barg
Allan R. Johnson
Heath B. McLendon
Ken Miller
John F. White
Officers
Heath B. McLendon
Chairman of the Board
Stephen J. Treadway
President
Richard P. Roelofs
Executive Vice President
Jeffrey J. Russell
Vice President and
Investment Officer
James B. Conheady
Investment Officer
Lewis E. Daidone
Treasurer
Christina T. Sydor
Secretary
This report is submitted for the general information of the shareholders of
Smith Barney Shearson Global Opportunities 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 15, 200, 201, 254
FD 0295 F4
Dear Shareholder:
We are pleased to present the Annual Report for Smith Barney Shearson
Global
Opportunities Fund. During the Fund's fiscal year ended April 30, 1994,
the aggregate total return was 12.00% for Class A shares and 11.04% for
Class
B shares. These returns reflected the attractive investment environment
which
was available to global investors over the last year.
The portfolio focused its investments in the United States, Japan and the
major European markets, while underemphasizing the emerging markets. This
strategy proved rewarding for the most part as the Japanese market began to
recover, the U.S. market performed reasonably well, and the European market
was mixed. The major factors effecting the markets were interest rates and
economic growth. Low or declining interest rates were the major stimulant
to
the stock markets for most of the year. More recently, the interest rate
decline has been halted and economic growth will have to be the prime mover
of stock prices going forward. Inflation was well contained worldwide
during
the period.
On March 21, 1994, portfolio management of the Fund was assumed by Smith,
Barney Advisers, Inc. The new portfolio management team has extensive
experience in global equity management with well over 125 years of
experience
among the team's principals. The portfolio team employs a strategy focused
on
companies with strong earnings growth balanced by broad portfolio
diversification. In the past few months, the team has repositioned the
Fund's
portfolio more in line with other global portfolios under its management.
For the balance of this year, the management team is enthusiastic about
opportunities in selected European markets, especially those which are the
beneficiaries of currency devaluation of the past several years. While
cautiously optimistic about the prospects for Japan, the portfolio team has
broadened the Pacific Rim exposure using Japanese securities as a source of
funds. Given the substantial corrections in many smaller capitalized
markets
earlier this year, the team is also adding exposure in selected emerging
markets.
We continue to believe the opportunities in the global stock markets are
attractive and will strive to have them reflected in the returns of the
Fund.
We appreciate your continued support.
Sincerely,
(Signature Heath B. McLendon)
Heath B. McLendon
Chairman of the Board
and Investment Officer
James B. Conheady
Investment Officer
Jeffrey J. Russell
Vice President and
Investment Officer
June 20, 1994
Portfolio Highlights (unaudited) April 30, 1994
Country Breakdown
Pie chart depicting the allocation of the Global Opportunities Fund
investment
securities held at April 30, 1994 by country classification. The pie is
broken
in pieces representing industries in the following percentages:
Country Percentage
Italy 3.8%
Singapore 4.8%
France 5.1%
United Kingdom 7.4%
All Other Countries 25.2%
United States 20.9%
Commercial Paper & Net
Other Assets and Liabilities 9.2%
Japan 23.6%
Country Breakdown
Top Ten Common Stocks
<TABLE>
<CAPTION>
Percentage of
Company Net Assets
- ---------------------------------------------
<S> <C>
Independent Insurance Group 2.3%
Stet di Risp 1.9
Development Bank of
Singapore 1.6
Keyence Corporation 1.6
Ito-Yokado 1.5
Irish Life 1.5
Mr. Max 1.4
Rohm Company 1.4
Sekisui Chemical Ltd. 1.4
Fluor Corporation 1.4
</TABLE>
Historical Performance -- Class A Shares (Unaudited)
<TABLE>
<CAPTION>
Year Ended Net Asset Value Capital
Dividends Total
April 30 Beginning Ending Gains Paid(+)
Paid(+) Return*
- ---------------------------------------------------------------------------
- ----------------
<S> <C> <C> <C> <C>
<C>
7/26/84-4/30/85 $19.00 $20.90 -- --
10.00%
- ---------------------------------------------------------------------------
- ----------------
1986 $20.90 $35.60 $ 0.29
$0.37 75.61%
- ---------------------------------------------------------------------------
- ----------------
1987 $35.60 $33.78 $ 6.03
$0.15 13.75%
- ---------------------------------------------------------------------------
- ----------------
1988 $33.78 $24.26 $ 5.99
$0.17 (12.87)%
- ---------------------------------------------------------------------------
- ----------------
1989 $24.26 $25.49 --
$0.30 6.39%
- ---------------------------------------------------------------------------
- ----------------
1990 $25.49 $26.03 --
$0.63 4.43%
- ---------------------------------------------------------------------------
- ----------------
1991 $26.03 $24.83 $ 0.89
$0.40 0.64%
- ---------------------------------------------------------------------------
- ----------------
1992 $24.83 $24.78 -- --
(0.20)%
- ---------------------------------------------------------------------------
- ----------------
1993 $24.78 $26.59 -- --
7.30%
- ---------------------------------------------------------------------------
- ----------------
1994 $26.59 $29.68 $ 0.07
$0.03 12.00%
- ---------------------------------------------------------------------------
- ----------------
Total $13.27
$2.05
- ---------------------------------------------------------------------------
- ----------------
Cumulative Total Return -- (7/26/84 through 4/30/94)
156.74%
- ---------------------------------------------------------------------------
- ----------------
</TABLE>
*Figures assume reinvestment of all dividends and capital gains
distributions
at net asset value and do not assume deduction of the front-end sales
charge
(maximum 5.0%).
(+)The above distributions are reported in accordance with generally
accepted
accounting principles and may differ from the figures reported on Form 1099
due to timing differences.
It is the Fund's policy is to distribute dividends and capital gains,
if any, annually.
Average Annual Total Return** -- Class A Shares (Unaudited)
<TABLE>
<CAPTION>
Without Sales Charge
With Sales Charge***
With Without
With Without
Expense Expense
Expense Expense
Reimbursement Reimbursement
Reimbursement Reimbursement
- ---------------------------------------------------------------------------
- --------------------------
<S> <C> <C>
<C> <C>
Year Ended 4/30/94 N/A 12.00%
N/A 6.40%
- ---------------------------------------------------------------------------
- --------------------------
Five Years Ended 4/30/94 N/A 4.74%
N/A 3.67%
- ---------------------------------------------------------------------------
- --------------------------
Inception 7/26/84
through 4/30/94 10.14% 10.11%
9.56% 9.53%
- ---------------------------------------------------------------------------
- --------------------------
</TABLE>
**All average annual total return figures shown reflect reinvestment of
dividends and capital gains at net asset value. The Fund commenced
operations
July 26, 1984. The Fund reimbursed expenses from July 26, 1984 to April 30,
1986. A shareholder's actual return for periods during which reimbursements
were in effect would be the higher of the two numbers shown.
***Average annual total return figures shown assume the deduction of the
maximum 5.0% sales charge.
Note: On November 6, 1992, existing shares of the Fund were designated
Class
A shares. Class A shares are subject to a maximum 5.0% front-end sales
charge
and an annual service fee of 0.25% of the value of the average daily net
assets attributable to that class. The Fund's annual rates of return would
have been lower had service fees been in effect prior to November 6, 1992.
5
GROWTH OF $10,000 INVESTED IN CLASS A SHARES OF
SMITH BARNEY SHEARSON GLOBAL OPPORTUNITIES FUND(+)
(UNAUDITED)
===========================================================================
==
JULY 26, 1984 -- APRIL 30, 1994
(Description of Mountain Chart (Class A))
A line graph depicting the total growth (including reinvestment of
dividends
and capital gains) of a hypothetical investment of $10,000 in Global
Opportunities Fund's Class A shares on July 26, 1984 through April 30, 1994
as compared with the growth of a $10,000 investment in Morgan Stanley
International World Index. The plot points used to draw the line graph
were as follows:
Growth of $10,000
Investment in the
Growth of $10,000 Morgan Stanley
Invested in Class A shares International
Month Ended of the Fund World Index
07/26/84 $9,500 --
07/84 $9,500 $10,000
08/84 $9,685 $11,010
09/84 $9,670 $10,975
12/84 $9,725 $11,302
03/85 $10,490 $12,383
06/85 $10,888 $13,235
09/85 $11,815 $13,739
12/85 $14,424 $16,023
03/86 $17,192 $19,478
06/86 $17,816 $20,775
09/86 $17,415 $21,884
12/86 $18,582 $22,881
03/87 $20,726 $28,065
06/87 $20,868 $29,751
09/87 $23,267 $31,596
12/87 $16,823 $26,717
03/88 $17,925 $29,848
06/88 $17,745 $29,596
09/88 $17,243 $29,721
12/88 $18,271 $33,116
03/89 $18,863 $33,896
06/89 $19,182 $33,463
09/89 $21,262 $37,387
12/89 $21,626 $38,810
03/90 $20,182 $33,290
06/90 $21,487 $36,026
09/90 $18,009 $29,493
12/90 $19,189 $32,400
03/91 $20,049 $35,630
06/91 $19,705 $34,473
09/91 $20,876 $36,948
12/91 $21,605 $38,545
03/92 $20,057 $35,446
06/92 $20,221 $36,137
09/92 $20,147 $36,790
12/92 $20,245 $36,749
03/93 $21,277 $39,955
06/93 $21,548 $42,433
09/93 $23,210 $44,476
12/93 $23,897 $45,248
03/94 $23,955 $45,579
04/94 $24,390 $46,996
(+)Illustration of $10,000 invested in Class A shares on July 26, 1984
assuming deduction of the maximum 5.0% sales charge at the time of
investment
and reinvestment of dividends and capital gains at net asset value through
April 30, 1994.
Morgan Stanley International World Index -- is composed of approximately
1,500 companies listed on a diverse range of global stock markets,
including
the United States, Canada, Europe, Australia, New Zealand and the Far East.
Index information is available at month-end only; therefore the closest
month-end to inception date of the Fund has been used.
Note: All figures cited here and on the following pages represent past
performance of the Fund and do not guarantee future results of Class A
shares.
Historical Performance -- Class B Shares (Unaudited)
<TABLE>
<CAPTION>
Year Ended Net Asset Value Capital
Dividends Total
April 30 Beginning Ending Gains Paid(+)
Paid(+) Return*
- ---------------------------------------------------------------------------
- ---------------
<S> <C> <C> <C>
<C> <C>
11/6/92-4/30/93 $24.34 $26.49 -- -
- - 9.33%
- ---------------------------------------------------------------------------
- ---------------
1994 $26.49 $29.34 $0.07 -
- - 11.04%
- ---------------------------------------------------------------------------
- ---------------
Total $0.07 -
- -
- ---------------------------------------------------------------------------
- ---------------
Cumulative Total Return -- (11/6/92 through 4/30/94)
21.39%
- ---------------------------------------------------------------------------
- ---------------
</TABLE>
*Figures assume reinvestment of all dividends and capital gains
distributions
at net asset value and do not assume deduction of the contingent deferred
sales charge ("CDSC").
(+)The above distributions are reported in accordance with generally
accepted
accounting principles and may differ from the figures reported on Form 1099
due to timing differences.
Average Annual Total Return** -- Class B Shares (Unaudited)
<TABLE>
<CAPTION>
Without CDSC With CDSC***
- ----------------------------------------------------------------
<S> <C> <C>
Year Ended 4/30/94 11.04% 6.04%
- ----------------------------------------------------------------
Inception 11/6/92 through
4/30/94 13.96% 11.41%
- ----------------------------------------------------------------
</TABLE>
**All average annual total return figures shown reflect reinvestment of
dividends and capital gains at net asset value.
***Average annual total return figures shown assume the deduction of the
maximum applicable CDSC which is described in the prospectus.
Note: The Fund began offering Class B shares on November 6, 1992. Class B
shares are subject to a maximum 5.0% CDSC and annual service and
distribution
fees of 0.25% and 0.75%, respectively, of the value of the average daily
net
assets attributable to that class.
GROWTH OF $10,000 INVESTED IN CLASS B SHARES OF
SMITH BARNEY SHEARSON GLOBAL OPPORTUNITIES FUND(+)
(UNAUDITED)
===========================================================================
==
NOVEMBER 6, 1992 -- APRIL 30, 1994
(Description of Mountain Chart (Class B))
A line graph depicting the total growth (including reinvestment of
dividends
and capital gains) of a hypothetical investment of $10,000 in Global
Opportunities Fund's Class B shares on November 6, 1992 through April 30,
1994 as compared with the growth of a $10,000 investment in Morgan Stanley
International World Index. The plot points used to draw the line graph were
as follows:
Growth of $10,000
Investment in the
Growth of $10,000 Morgan Stanley
Invested in Class B shares International
Month Ended of the Fund World Index
10/31/92 -- $10,000
11/06/92 $10,000 --
11/92 $10,111 $10,180
12/92 $10,194 $10,264
03/93 $10,693 $11,160
06/93 $10,805 $11,852
09/93 $11,614 $12,423
12/93 $11,937 $12,639
03/94 $11,933 $12,731
04/94 $11,739 $13,127
(+)Illustration of $10,000 invested in Class B shares on November 6, 1992
assuming deduction of the maximum CDSC at the time of redemption and
reinvestment of dividends and capital gains at net asset value through
April
30, 1994.
(++)Value does not assume deduction of applicable CDSC.
(+++)Value assumes deduction of applicable CDSC (assuming redemption on
April
30, 1994).
Morgan Stanley International World Index -- is composed of approximately
1,500 companies listed on a diverse range of global stock markets,
including
the United States, Canada, Europe, Australia, New Zealand and the Far East.
Index information is available at month-end only; therefore, the closest
month-end to inception date of the Fund has been used.
Note: All figures cited here and on the other pages represent past
performance of the Fund and do not guarantee future results of Class B
shares.
Historical Performance -- Class C Shares (Unaudited)
<TABLE>
<CAPTION>
Year Ended Net Asset Value Capital
Dividends Total
April 30 Beginning Ending Gains Paid(+)
Paid(+) Return*
- ---------------------------------------------------------------------------
- ---------------
<S> <C> <C> <C> <C>
<C>
11/6/92-4/30/93 $24.23 $26.65 -- --
9.99%
- ---------------------------------------------------------------------------
- ---------------
1994 $26.65 $29.78 $0.07
$0.08 12.34%
- ---------------------------------------------------------------------------
- ---------------
Total $0.07
$0.08
- ---------------------------------------------------------------------------
- ---------------
Cumulative Total Return -- (11/6/92 through 4/30/94)
23.55%
- ---------------------------------------------------------------------------
- ---------------
</TABLE>
*Figures assume reinvestment of all dividends and capital gains
distributions
at net asset value.
(+)The above distributions are reported in accordance with generally
accepted
accounting principles and may differ from the figures reported on Form 1099
due to timing differences.
Average Annual Total Return** -- Class C Shares (Unaudited)
<TABLE>
- ----------------------------------------------
<S> <C>
Year Ended 4/30/94 12.34%
- ----------------------------------------------
Inception 11/6/92 through 4/30/94 15.32%
- ----------------------------------------------
</TABLE>
**All average annual total return figures shown reflect reinvestment of
dividends and capital gains at net asset value.
Note: The Fund began offering Class C shares on November 6, 1992.
GROWTH OF $10,000 INVESTED IN CLASS C SHARES OF
SMITH BARNEY SHEARSON GLOBAL OPPORTUNITIES FUND(+)
(UNAUDITED)
===========================================================================
==
NOVEMBER 6, 1992 -- APRIL 30, 1994
(Description of Mountain Chart (Class C))
A line graph depicting the total growth (including reinvestment of
dividends
and capital gains) of a hypothetical investment of $10,000 in Global
Opportunities Fund's Class C shares on November 6, 1992 through April 30,
1994 as compared with the growth of a $10,000 investment in Morgan Stanley
International World Index. The plot points used to draw the line graph were
as follows:
Growth of $10,000
Investment in the
Growth of $10,000 Morgan Stanley
Invested in Class C shares International
Month Ended of the Fund World Index
10/31/92 -- $10,000
11/06/92 $10,000 --
11/92 $10,116 $10,180
12/92 $10,206 $10,264
03/93 $10,735 $11,160
06/93 $10,887 $11,852
09/93 $11,738 $12,423
12/93 $12,098 $12,639
03/94 $12,136 $12,731
04/94 $12,355 $13,127
(+)Illustration of $10,000 invested in Class C shares on November 6, 1992
assuming reinvestment of dividends and capital gains at net asset value
through April 30, 1994.
Morgan Stanley International World Index -- is composed of approximately
1,500 companies listed on a diverse range of global stock markets,
including
the United States, Canada, Europe, Australia, New Zealand and the Far East.
Index information is available at month-end only; therefore the closest
month-end to inception date of the Fund has been used.
Note: All figures cited here and on the following pages represent past
performance of the Fund and do not guarantee future results of Class C
shares.
Historical Performance -- Class D Shares (Unaudited)
<TABLE>
<CAPTION>
Period Ended Net Asset Value Capital Dividends
Total
April 30 Beginning Ending Gains Paid(+) Paid(+)
Return*
- ---------------------------------------------------------------------------
- --------------
<S> <C> <C> <C> <C>
<C>
10/22/93-4/30/94 $28.65 $29.58 -- $0.07
3.50%
- ---------------------------------------------------------------------------
- --------------
Cumulative Total Return -- (10/22/93 through 4/30/94)
3.50%
- ---------------------------------------------------------------------------
- --------------
</TABLE>
*Figures assume reinvestment of all dividends and capital gains
distributions
at net asset value.
(+)The above distributions are reported in accordance with generally
accepted
accounting principles and may differ from the figures reported on Form 1099
due to timing differences.
Cumulative Total Return** -- Class D Shares (Unaudited)
<TABLE>
<S> <C>
Inception 10/22/93 through 4/30/94 3.50%
- -----------------------------------------------------
</TABLE>
**All cumulative total return figures shown reflect reinvestment of
dividends
and capital gains at net asset value.
Note: The Fund began offering Class D shares on January 29, 1993 for
purchase
by participants in the Smith Barney 401(k) program. These shares were first
publicly purchased on October 22, 1993.
GROWTH OF $10,000 INVESTED IN CLASS D SHARES OF
SMITH BARNEY SHEARSON GLOBAL OPPORTUNITIES FUND(+)
(UNAUDITED)
===========================================================================
==
OCTOBER 22, 1993 -- APRIL 30, 1994
(Description of Mountain Chart (Class D))
A line graph depicting the total growth (including reinvestment of
dividends
and capital gains) of a hypothetical investment of $10,000 in Global
Opportunities Fund's Class D shares on October 22, 1993 through April 30,
1994 as compared with the growth of a $10,000 investment in Morgan Stanley
International World Index. The plot points used to draw the line graph were
as follows:
Growth of $10,000
Investment in the
Growth of $10,000 Morgan Stanley
Invested in Class D shares International
Month Ended of the Fund World Index
10/22/93 $10,000 --
10/93 $10,000 $10,000
11/93 $9,581 $9,435
12/93 $10,123 $9,899
03/94 $10,162 $9,971
04/94 $10,350 $10,281
(+)Illustration of $10,000 invested in Class D shares on October 22, 1993
assuming reinvestment of dividends and capital gains at net asset value
through April 30, 1994.
Morgan Stanley International World Index -- is composed of approximately
1,500 companies listed on a diverse range of global stock markets,
including
the United States, Canada, Europe, Australia, New Zealand and the Far East.
Index information is available at month-end only; therefore the closest
month-end to inception date of the Fund has been used.
Note: All figures cited here and on the following pages represent past
performance of the Fund and do not guarantee future results of Class D
shares.
Portfolio of Investments April 30, 1994
<TABLE>
<CAPTION>
Market
Value
Shares (Note
1)
<S> <C> <C>
- ---------------------------------------------------------------------------
- -
COMMON STOCKS -- 90.8%
Japan -- 23.6%
500 Aoyama Trading $
23,051
80,000 Canon, Inc.
1,294,752
470 Dai Ichi Kangyo Bank
8,759
22,000 Familymart
1,299,068
140,000 Hitachi Ltd.
1,318,293
45,000 Ishiawajima Construction Materials
869,544
142,000 Itochu Corporation
944,345
32,000 Ito-Yokado
1,679,255
9,000 Japan Association Finance
1,156,449
600 Joyo Bank
4,932
16,500 Keyence Corporation
1,747,916
40,000 Kyushu Matsushita Electric Company
1,153,507
58,000 Mr. Max(++)
1,575,871
72,000 Matsushita Electric Industrial
1,179,402
38,000 Mitsubishi Bank
1,010,103
160,000 Mitsubishi Heavy Industry
1,059,343
13,000 Nic Corporation
508,779
39,000 Rohm Company
1,549,289
42,000 Sankyo Corporation
951,643
18,000 Secom
1,181,167
151,000 Sekisui Chemical Ltd.
1,540,363
27,000 Sony Corporation
1,525,453
24,000 Sony Music Entertainment Inc.
1,530,161
100,000 Sumitomo Electric Industry
1,412,457
100 Tokio Marine & Fire Insurance Company
1,275
- ---------------------------------------------------------------------------
- -
26,525,177
- ---------------------------------------------------------------------------
- -
United States -- 20.9%
10,000 Air Products & Chemicals Inc.
432,500
50,000 Browning Ferris Industries Inc.
1,462,500
25,000 Capital Holding Corporation
750,000
30,000 CBI Industries
911,250
28,000 Coastal Corporation
885,500
30,000 Disney, (Walt) Company
1,271,250
11,930 Exxon Corporation
750,099
30,000 Fluor Corporation
1,533,750
53,000 Freeport McMoran Copper & Gold Inc.
1,258,750
15,000 General Electric Company
1,426,875
Portfolio of Investments (continued) April 30, 1994
COMMON STOCKS -- (continued)
United States -- (continued)
30,000 Harris Corporation $
1,316,250
30,000 International Game Technology
780,000
25,000 Interpool**
425,000
20,000 McDonald's Corporation
1,200,000
30,000 Minnesota Mining and Manufacturing Company
1,466,250
27,000 Musland Corporation
492,750
25,000 Multimedia Inc.**
700,000
17,000 Philips-Van Heusen Corporation
565,250
15,000 Roadway Services
1,053,750
25,000 Scott Paper
1,071,875
40,000 Southern Pacific Rail Corporation**
880,000
30,000 Tyco International Ltd.
1,421,250
5,000 Washington Post
1,165,000
30,000 Westwood One Inc.**
255,000
- ---------------------------------------------------------------------------
- -
24,474,849
- ---------------------------------------------------------------------------
- -
United Kingdom -- 7.4%
213,892 BTR
1,287,491
99,895 Cable and Wireless
679,865
20,000 Carlton Communication
275,862
250,000 Flextech
1,209,920
73,521 Hepworth
415,862
659,816 Independent Insurance Group
2,574,595
60,500 Norweb
580,111
78,400 Royal Bank of Scotland
477,846
136,050 TI Group
846,710
- ---------------------------------------------------------------------------
- -
8,348,262
- ---------------------------------------------------------------------------
- -
France -- 5.1%
80,000 Incom(+)
1,168,808
31,000 Matra Hachette
779,775
28,000 Michelin (Cie Gle Des Establishment)
1,239,078
11,170 Societe Generale
1,254,438
22,000 Total "B" Shares
1,274,071
- ---------------------------------------------------------------------------
- -
5,716,170
- ---------------------------------------------------------------------------
- -
COMMON STOCKS -- (continued)
Singapore -- 4.8%
475,000 Amcol Holdings
$1,008,039
182,425 Development Bank of Singapore
1,794,921
150,000 Jurong Shipyard
1,437,299
220,000 Overseas Union Bank
1,117,685
- ---------------------------------------------------------------------------
- -
5,357,944
- ---------------------------------------------------------------------------
- -
Italy -- 3.8%
127,000 Fiat Spa
550,397
94,800 Parmalat Finanziaria
161,241
158,000 Parmalat Finanziaria SpA
269,827
400,000 Sip
1,197,005
659,000 Stet di Risp(++)
2,159,705
- ---------------------------------------------------------------------------
- -
4,338,175
- ---------------------------------------------------------------------------
- -
Sweden -- 3.4%
50,000 Allgon AB, Series B
1,482,304
33,570 Astra AB Free, Series A
692,707
3,000 ASEA AB Free, Series A
249,184
67,650 SKF AB Free, Series B**
1,387,103
- ---------------------------------------------------------------------------
- -
3,811,298
- ---------------------------------------------------------------------------
- -
Germany -- 3.2%
555 Allianz AG
864,562
2,420 Deutsche Bank AG
1,137,932
2,125 Gea AG
748,262
4,050 Hoechst Group AG
888,570
- ---------------------------------------------------------------------------
- -
3,639,326
- ---------------------------------------------------------------------------
- -
Austria -- 2.7%
10,000 Bau Holdings**
994,190
25,000 Flughafen Wein AG
1,043,684
7,500 Voest Alpine
1,000,646
- ---------------------------------------------------------------------------
- -
3,038,520
- ---------------------------------------------------------------------------
- -
Ireland -- 2.5%
225,000 Independent Newspaper
1,157,506
530,000 Irish Life
1,667,103
- ---------------------------------------------------------------------------
- -
2,824,609
- ---------------------------------------------------------------------------
- -
COMMON STOCKS -- (continued)
Australia -- 2.5%
333,000 Australian National Industries $
502,064
250,000 Burns Philip & Co.
714,550
413,408 Goodman Fielder Ltd.
449,009
166,364 The News Corporation
1,150,714
- ---------------------------------------------------------------------------
- -
2,816,337
- ---------------------------------------------------------------------------
- -
Switzerland -- 2.2%
1,405 Ciba-Geigy AG
834,032
5,000 Merkur Holdings
1,237,589
990 Saurer
428,298
- ---------------------------------------------------------------------------
- -
2,499,919
- ---------------------------------------------------------------------------
- -
Hong Kong -- 2.0%
1,000,000 Shun Tak
1,068,030
300,000 Wharf Holdings
1,157,356
- ---------------------------------------------------------------------------
- -
2,225,386
- ---------------------------------------------------------------------------
- -
Malaysia -- 1.2%
80,000 Arab Malasian Finance Beched
274,729
100,000 Commerce Asset Holdings
354,610
33,333 Commerce Asset Holdings Berhad
44,542
225,000 Faber Group**
309,070
60,000 Tenaga Nasional
333,707
- ---------------------------------------------------------------------------
- -
1,316,658
- ---------------------------------------------------------------------------
- -
Finland -- 1.1%
15,000 Nokia Pref
1,271,955
- ---------------------------------------------------------------------------
- -
Netherlands -- 1.0%
9,725 Royal Dutch Petroleum
1,066,233
- ---------------------------------------------------------------------------
- -
Canada -- 0.9%
100,000 Videotron
1,049,698
- ---------------------------------------------------------------------------
- -
Spain -- 0.8%
3,680 Banco Popular De Espanol
426,406
60,500 Iberdola SA
432,877
- ---------------------------------------------------------------------------
- -
859,283
- ---------------------------------------------------------------------------
- -
COMMON STOCKS -- (continued)
Mexico -- 0.7%
9,000 Grupo Casa Autrey, ADR** $
247,500
10,000 Telefonos De Mexico S.A., ADR
588,750
- ---------------------------------------------------------------------------
- -
836,250
Denmark -- 0.6%
25,000 Teledanmark, ADR**
625,000
- ---------------------------------------------------------------------------
- -
New Zealand -- 0.4%
230,000 Carter Holt Harvey
489,997
- ---------------------------------------------------------------------------
- -
TOTAL COMMON STOCKS
(Cost $90,582,960)
102,131,046
- ---------------------------------------------------------------------------
- -
Face Value
- ---------------------------------------------------------------------------
- -
COMMERCIAL PAPER -- 5.8%
$ 801,000 Ford Motor Credit Corporation, 3.520% due 5/2/94
801,000
5,704,000 General Electric Capital Corporation, 3.550%
due 5/2/94(+++)
5,704,000
- ---------------------------------------------------------------------------
- -
TOTAL COMMERCIAL PAPER
(Cost $6,505,000)
6,505,000
- ---------------------------------------------------------------------------
- -
TOTAL INVESTMENTS (Cost $97,087,960*) 96.6%
108,636,046
OTHER ASSETS AND LIABILITIES (Net) 3.4
3,877,369
- ---------------------------------------------------------------------------
- -
NET ASSETS 100.0%
$112,513,415
- ---------------------------------------------------------------------------
- -
</TABLE>
* Aggregate cost for Federal tax purposes.
** Non-income producing security.
(+) Restricted security. (See Note 7).
(++) Securities loaned at 4/30/94 (See Note 8).
(+++) Represents collateral for securities loaned. (See Note 8).
At April 30, 1994, sector diversification of the Fund's portfolio was as
follows:
<TABLE>
<CAPTION>
Percentage of Value
Sector Diversification Net Assets (Note 1)
- ------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
Consumer Services 10.3% $ 11,562,894
Banking & Finance 8.3 9,287,761
Communication 6.4 7,253,166
Consumer Durables 6.4 7,155,789
Technology 6.4 7,145,564
Construction 6.1 6,815,915
Manufacturing 5.4 6,034,133
Transportation 3.9 4,439,079
Basic Industries 3.5 3,913,655
Electronics 3.3 3,710,834
Printing & Publishing 3.0 3,394,381
Entertainment 2.9 3,214,617
Machinery 2.8 3,118,591
Oil & Gas 2.7 3,090,402
Chemicals 2.5 2,861,432
Financial Services 2.5 2,768,767
Utilities 2.5 2,759,153
Health Care 1.9 2,153,129
Food 1.7 1,918,836
Metal Mining 1.6 1,760,814
Consumer Non-Durables 1.5 1,742,050
Insurance 1.5 1,667,103
Retail 1.4 1,575,871
Energy 0.8 885,500
Automotive 0.4 492,750
Other 1.3 1,408,860
TOTAL COMMON STOCKS 90.8 102,131,046
COMMERCIAL PAPER 5.8 6,505,000
- ------------------------------------------------------------------
TOTAL INVESTMENTS 96.6 108,636,046
OTHER ASSETS AND LIABILITIES
(Net) 3.4 3,877,369
- ------------------------------------------------------------------
NET ASSETS 100.0% $112,513,415
- ------------------------------------------------------------------
</TABLE>
Statement of Assets and Liabilities April 30, 1994
<TABLE>
<CAPTION>
<S> <C>
<C>
ASSETS:
Investments, at value (Cost $97,087,960)(Note 1)
See accompanying schedule
$108,636,046
Cash and foreign currency, at value (Cost $1,838,458)
1,883,642
Receivable for investment securities sold
3,302,518
Receivable for Fund shares sold
2,117,395
Dividends and interest receivable
299,212
Foreign withholding tax receivable
125,343
- ---------------------------------------------------------------------------
- ------------
Total Assets
116,364,156
- ---------------------------------------------------------------------------
- ------------
LIABILITIES:
Payable for investment securities purchased $1,848,524
Collateral for securities loaned (Note 8) 1,634,500
Payable for Fund shares redeemed 98,765
Investment advisory fee payable (Note 2) 70,968
Distribution fee payable (Note 3) 38,204
Custodian fees payable (Note 2) 24,000
Transfer agent fees payable (Note 2) 20,515
Service fee payable (Note 3) 19,555
Administration fee payable (Note 2) 17,742
Accrued expenses and other payables 77,968
- ---------------------------------------------------------------------------
- ------------
Total Liabilities
3,850,741
- ---------------------------------------------------------------------------
- ------------
NET ASSETS
$112,513,415
- ---------------------------------------------------------------------------
- ------------
NET ASSETS consist of:
Accumulated net realized gain on investments sold,
forward foreign exchange contracts and currency
transactions
$ 6,039,185
Net unrealized appreciation of investments, foreign
currency and net other assets
11,530,698
Par value
3,814
Paid-in capital in excess of par value
94,939,718
- ---------------------------------------------------------------------------
- ------------
Total Net Assets
$112,513,415
- ---------------------------------------------------------------------------
- ------------
</TABLE>
Statement of Assets and Liabilities (continued) April 30, 1994
<TABLE>
<S> <C>
NET ASSET VALUE:
CLASS A SHARES:
Net Asset Value and redemption price per share
($34,747,091 / 1,170,753 shares of beneficial
interest outstanding) $29.68
- --------------------------------------------------------------
Maximum offering price per share ($29.68 / .95)
(based on sales charge of 5% of offering price at
April 30, 1994) $31.24
- --------------------------------------------------------------
CLASS B SHARES:
Net Asset Value and redemption price per share(+)
($63,960,217 / 2,179,789 shares of beneficial
interest outstanding) $29.34
- --------------------------------------------------------------
CLASS C SHARES:
Net Asset Value and redemption price per share
($13,480,291 / 452,662 shares of beneficial interest
outstanding) $29.78
- --------------------------------------------------------------
CLASS D SHARES:
Net Asset Value and redemption price per share
($325,816 / 11,014 shares of beneficial interest
outstanding) $29.58
- --------------------------------------------------------------
</TABLE>
(+)Redemption price per share is equal to net asset value less
any applicable contingent deferred sales charge.
Statement of Operations For the Year Ended April 30, 1994
<TABLE>
<S> <C>
<C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $185,480)
$ 1,873,167
Interest
240,199
- ---------------------------------------------------------------------------
- ----------
Total Investment Income
2,113,366
- ---------------------------------------------------------------------------
- ----------
EXPENSES:
Investment advisory fee (Note 2) $827,203
Distribution fee (Note 3) 329,635
Transfer agent fees (Note 2) 211,634
Administration fee (Note 2) 206,801
Service fee (Note 3) 189,219
Custodian fees (Note 2) 128,498
Legal and audit fees 70,989
Trustees' fees and expenses (Note 2) 31,086
Other 182,325
- ---------------------------------------------------------------------------
- ----------
Total Expenses
2,177,390
- ---------------------------------------------------------------------------
- ----------
NET INVESTMENT LOSS
(64,024)
- ---------------------------------------------------------------------------
- ----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (Notes 1 and 5):
Net realized gain/(loss) on:
Securities transactions
8,110,985
Forward foreign exchange contracts and foreign currency
transactions
(274,256)
- ---------------------------------------------------------------------------
- ----------
Net realized gain on investments during the year
7,836,729
Net change in unrealized appreciation of:
Securities
3,406,282
Forward foreign exchange contracts, currencies and net
other assets
8,006
- ---------------------------------------------------------------------------
- ----------
Net unrealized appreciation of investments during the year
3,414,288
- ---------------------------------------------------------------------------
- ----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
11,251,017
- ---------------------------------------------------------------------------
- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$11,186,993
- ---------------------------------------------------------------------------
- ----------
</TABLE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Year
Ended Ended
4/30/94 4/30/93
<S> <C>
<C>
Net investment income/(loss) $
(64,024) $ 435,159
Net realized gain on investments, forward foreign exchange
contracts and currency transactions during the year
7,836,729 1,912,641
Net unrealized appreciation on investments, forward foreign
exchange contracts, foreign currencies and net other assets
during the year
3,414,288 3,881,301
- ---------------------------------------------------------------------------
- -----------------------------
Net increase in net assets resulting from operations
11,186,993 6,229,101
Distributions to shareholders in excess of net investment income:
Class A
(29,623) --
Class B
- -- --
Class C
(95,341) --
Class D
- -- --
Distribution to shareholders from net realized gain on
investments:
Class A
(80,439) --
Class B
(118,049) --
Class C
(84,709) --
Class D
(302) --
Net increase/(decrease) in net assets from capital share
transactions (Note 6):
Class A
1,344,579 (26,024,639)
Class B
27,851,907 29,381,258
Class C
(9,799,954) 18,542,424
Class D
326,051 26
- ---------------------------------------------------------------------------
- -----------------------------
Net increase in net assets
30,501,113 28,128,170
NET ASSETS:
Beginning of year
82,012,302 53,884,132
- ---------------------------------------------------------------------------
- -----------------------------
End of year (including undistributed net investment income of
$292,989 at April 30, 1993)
$112,513,415 $ 82,012,302
- ---------------------------------------------------------------------------
- -----------------------------
</TABLE>
Financial Highlights
For a Class A share outstanding throughout each year.
<TABLE>
<CAPTION>
Year Year
Year
Ended Ended
Ended
4/30/94(#+++) 4/30/93(#)
4/30/92
<S> <C> <C>
<C>
Net Asset Value, beginning of year $ 26.59 $ 24.78
$ 24.83
- ---------------------------------------------------------------------------
- ----------
Income from investment operations:
Net investment income 0.04 0.24
0.30
Net realized and unrealized gains and
losses on investments 3.15 1.57
(0.35)
- ---------------------------------------------------------------------------
- ----------
Total from investment operations 3.19 1.81
(0.05)
Less distributions:
Distributions from net investment income -- --
- --
Distributions in excess of net investment
income (0.03) --
- --
Distributions from net realized capital
gains (0.07) --
- --
- ---------------------------------------------------------------------------
- ----------
Total distributions (0.10) 0.00
0.00
- ---------------------------------------------------------------------------
- ----------
Net asset value, end of year $ 29.68 $ 26.59
$ 24.78
- ---------------------------------------------------------------------------
- ----------
Total return(+)(+) 12.00% 7.30%
(0.20)%
- ---------------------------------------------------------------------------
- ----------
Ratios to average net assets/supplemental
data:
Net assets, end of year (in 000's) $34,747 $29,679
$53,884
Ratio of expenses to average net assets 1.89% 1.99%
1.59%
Ratio of net investment income to average
net assets 0.15% 0.97%
1.29%
Portfolio turnover rate 93% 71%
35%
- ---------------------------------------------------------------------------
- ----------
</TABLE>
* The Fund commenced operations on July 26, 1984. Any shares in existence
prior to November 6, 1992 were designated as Class A shares.
** Annualized expense ratio before reimbursement of fees by investment
adviser and sub-investment adviser and administrator were 1.58% for the
year
ended April 30, 1986 and 1.79% for the period ended April 30, 1985.
*** Net investment income before reimbursement of fees by investment
adviser
and sub-investment adviser and administrator were $0.38 for the year ended
April 30, 1986 and $0.58 for the period ended April 30, 1985.
(+) Annualized.
(++) Total return represents aggregate total return for the period
indicated
and does not reflect any applicable sales charge.
(+++)As of March 21, 1994, the Fund changed its investment adviser from
Lehman Brothers Global Asset Management Limited to its current investment
adviser.
(#) Per share numbers have been calculated using the monthly average shares
method, which more appropriately presents the per share data for these
years
since the use of the undistributed income method did not accord with
results
of operations.
<TABLE>
<CAPTION>
Year Year Year Year Year
Year Period
Ended Ended Ended Ended Ended
Ended Ended
4/30/91 4/30/90 4/30/89 4/30/88 4/30/87
4/30/86 4/30/85*
<S> <C> <C> <C> <C>
<C> <C>
$ 26.03 $ 25.49 $ 24.26 $ 33.78 $ 35.60
$ 20.90 $ 19.00
- ---------------------------------------------------------------------------
- ------------------------------
0.45 0.36 0.26 0.35 0.12
0.44*** 0.61***
(0.36) 0.81 1.27 (3.71) 4.24
14.92 1.29
- ---------------------------------------------------------------------------
- ------------------------------
0.09 1.17 1.53 (3.36) 4.36
15.36 1.90
(0.40) (0.63) (0.30) (0.17) (0.15)
(0.37) --
-- --
(0.89) -- -- (5.99) (6.03)
(0.29) --
- ---------------------------------------------------------------------------
- ------------------------------
(1.29) (0.63) (0.30) (6.16) (6.18)
(0.66) 0.00
- ---------------------------------------------------------------------------
- ------------------------------
$ 24.83 $ 26.03 $ 25.49 $ 24.26 $ 33.78
$ 35.60 $ 20.90
- ---------------------------------------------------------------------------
- ------------------------------
0.64% 4.43% 6.39% (12.87)% 13.75%
75.61% 10.00%
- ---------------------------------------------------------------------------
- ------------------------------
$62,740 $77,319 $101,375 $152,948 $277,266
$307,812 $ 60,681
1.51% 1.63% 1.72% 1.30% 1.60%
1.30%** 1.54%(+)**
1.76% 1.36% 1.48% 0.91% 0.36%
1.64% 4.13%(+)
54% 41% 53% 65% 127%
85% 86%
- ---------------------------------------------------------------------------
- ------------------------------
</TABLE>
Financial Highlights
For a Class B share outstanding throughout each period.
<TABLE>
<CAPTION>
Year
Period
Ended
Ended
4/30/94(#+++)
4/30/93*(#)
<S> <C> <C>
Net Asset Value, beginning of period $26.49
$24.34
- ---------------------------------------------------------------------------
- -
Income from investment operations:
Net investment loss (0.19)
(0.03)
Net realized and unrealized gain on investments 3.11
2.18
- ---------------------------------------------------------------------------
- -
Total from investment operations 2.92
2.15
Less Distributions:
Distributions from net realized capital gains (0.07)
- --
- ---------------------------------------------------------------------------
- -
Net asset value, end of period $29.34
$26.49
- ---------------------------------------------------------------------------
- -
Total return(++) 11.04%
9.33%
- ---------------------------------------------------------------------------
- -
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $63,960
$32,083
Ratio of expenses to average net assets 2.71%
3.13%(+)
Ratio of net investment loss to average net
assets (0.66)%
(0.26)%(+)
Portfolio turnover rate 93%
71%
- ---------------------------------------------------------------------------
- -
</TABLE>
* On November 6, 1992, the Fund commenced selling Class B shares.
(+)Annualized.
(++)Total return represents aggregate total return for the periods
indicated
and does not reflect any applicable sales charge.
(+++)As of March 21, 1994, the Fund changed its investment adviser from
Lehman Brothers Global Asset Management Limited to its current investment
adviser.
(#) The per share amounts have been calculated using the monthly average
shares method, which more appropriately presents per share data for these
periods since use of the undistributed method did not accord with results
of
operations.
Financial Highlights
For a Class C share outstanding throughout each period.
<TABLE>
<CAPTION>
Year
Period
Ended
Ended
4/30/94(#+++)
4/30/93*(#)
<S> <C>
<C>
Net Asset Value, beginning of period $ 26.65 $
24.23
- ---------------------------------------------------------------------------
- ----
Income from investment operations:
Net investment income 0.19
0.15
Net realized and unrealized gain on investments 3.09
2.27
- ---------------------------------------------------------------------------
- ----
Total from investment operations 3.28
2.42
- ---------------------------------------------------------------------------
- ----
Less Distributions:
Distributions in excess of net investment income (0.08)
- --
Distributions from net realized capital gains (0.07)
- --
Total distributions (0.15)
- --
- ---------------------------------------------------------------------------
- ----
Net asset value, end of period $ 29.78 $
26.65
- ---------------------------------------------------------------------------
- ----
Total return(++) 12.34%
9.99%
- ---------------------------------------------------------------------------
- ----
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $13,480
$20,250
Ratio of expenses to average net assets 1.40%
1.66%(+)
Ratio of net investment income to average net
assets 0.64%
1.21%(+)
Portfolio turnover rate 93%
71%
- ---------------------------------------------------------------------------
- ----
</TABLE>
* On November 6, 1992, the Fund commenced selling Class C shares.
(+)Annualized.
(++)Total return represents aggregate total return for the period
indicated.
(+++)As of March 21, 1994, the Fund changed its investment adviser from
Lehman Brothers Global Asset Management Limited to its current investment
adviser.
(#) The per share amounts have been calculated using the monthly average
shares method, which more appropriately presents per share data for these
periods since use of the undistributed method did not accord with results
of
operations.
Financial Highlights
For a Class D share outstanding throughout the period.
<TABLE>
<CAPTION>
Period
Ended
4/30/94*(#+++)
<S> <C>
Net Asset Value, beginning of period $28.65
- --------------------------------------------------------------
Income from investment operations:
Net investment loss (0.06)
Net realized and unrealized gain on investments 1.06
- --------------------------------------------------------------
Total from investment operations 1.00
Less distributions:
Distributions from net realized capital gains (0.07)
- --------------------------------------------------------------
Net asset value, end of period $29.58
- --------------------------------------------------------------
Total return(++) 3.50%
- --------------------------------------------------------------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $ 326
Ratio of expenses to average net assets 2.48%(+)
Ratio of net investment loss to average net
assets (0.43)%(+)
Portfolio turnover rate 93%
- --------------------------------------------------------------
</TABLE>
* The Fund commenced selling Class D shares on October 22, 1993.
(+)Annualized.
(++)Total return represents aggregate total return for the period
indicated.
(+++)As of March 21, 1994, the Fund changed its investment adviser from
Lehman Brothers Global Asset Management Limited to its current investment
adviser.
(#) The per share amounts have been calculated using the monthly average
shares method, which more appropriately presents per share data for this
period since use of the undistributed method did not accord with results of
operations.
Notes to Financial StatementsNotes to Financial Statements (continued)
1. Significant Accounting Policies
Smith Barney Shearson Global Opportunities Fund (the "Fund") was organized
under the laws of the Commonwealth of Massachusetts on February 10, 1984,
as
a "Massachusetts business trust." The Fund is registered with the
Securities
and Exchange Commission under the Investment Company Act of 1940, as
amended,
as a diversified, open-end management investment company. The Fund
commenced
operations on July 26, 1984. As of November 6, 1992, the Fund offered three
classes of shares: Class A shares, Class B shares and Class C shares. Class
A
shares are sold with a front-end sales charge. Class B shares may be
subject
to a contingent deferred sales charge ("CDSC"). Class B shares will
automatically convert to Class A shares eight years after the date of
original purchase. Class C shares are offered exclusively to tax-exempt
employee benefit and retirement plans of Smith Barney Inc. ("Smith Barney")
and certain unit investment trusts sponsored by Smith Barney and its
affiliates. As of January 29, 1993, the Fund offered a fourth class of
shares
(Class D shares) to investors that are eligible to participate in the Smith
Barney 401(k) Program. Class C and Class D shares are offered without a
front-end sales load or a CDSC. All classes of shares have identical rights
and privileges except with respect to the effect of the respective sales
charges, the distribution and/or service fees borne by each class, expenses
allocable exclusively to each class, voting rights on matters affecting a
single class, the exchange privilege of each class and the conversion
feature
of Class B shares. The following is a summary of significant accounting
policies consistently followed by the Fund in the preparation of its
financial statements.
Portfolio valuation: Securities which are traded primarily on a domestic
exchange are valued at the last sale price on that exchange or, if there is
no recent sale, at the last current bid quotation. Portfolio securities
which
are traded primarily on foreign securities exchanges are generally valued
at
the preceding closing values of such securities on their respective
exchanges, except when an occurrence subsequent to the time that a value
was
so established is likely to have changed such value, then the fair value of
those securities will be determined by consideration of other factors by or
under the direction of the Board of Trustees or its delegates. A security
which is listed or traded on more than one exchange is valued at the
quotation on the exchange determined to be the primary market for such
security. All other securities not so traded are valued at the last current
bid quotation if market quotations are available. Other securities,
including
restricted securities, and other assets are valued at fair value as
determined in accordance with policies
established in good faith by the Board of Trustees. Short-term investments
that mature in 60 days or less are valued at amortized cost when the Board
of
Trustees determines that such method of valuation reflects fair value of
those investments.
Repurchase agreements: The Fund may engage in repurchase agreement
transactions. 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 period. 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 collateral to offset losses
incurred. There is potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its rights to dispose of the
collateral
securities, including the risk of a possible decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights. The Fund's investment adviser, administrator or sub-administrator,
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.
Forward foreign currency contracts: Forward foreign currency contracts are
valued at the forward rate and are marked-to-market daily. The change in
market value is recorded by the Fund as an unrealized gain or loss. When
the
contract is closed, the Fund records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and
the value at the time it was closed.
The use of forward foreign currency contracts does not eliminate
fluctuations
in the underlying prices of the Fund's portfolio securities, but it does
establish a rate of exchange that can be achieved in the future. Although
forward foreign currency contracts limit the risk of loss due to a decline
in
the value of the hedged currency, they also limit any potential gain that
might result should the value of the currency increase. In addition, the
Fund
could be exposed to risks if the counterparties to the contracts are unable
to meet the terms of their contracts.
Foreign currency: The books and records of the Fund are maintained in
United
States (U.S.) dollars. Foreign currencies, investments and other assets and
liabilities are translated into U.S. dollars at the exchange rates
prevailing
at the end of the period, and purchases and sales of investment securities,
income and expenses are translated on the respective dates of such
transactions. Unrealized gains and losses which result from changes in
foreign currency exchange rates have been included in the unrealized
appreciation/(depreciation) of foreign currencies and net other assets. Net
realized foreign currency gains and losses resulting from changes in
exchange
rates include foreign currency gains and losses between trade date and
settlement date on investment securities transactions, foreign currency
transactions and the difference between the amounts of interest and
dividends
recorded on the books of the Fund and the amount actually received. The
portion of foreign currency gains and losses related to fluctuation in
exchange rates between the initial purchase trade date and subsequent sale
trade date is included in realized gains and losses on investment
securities
sold.
Securities transactions and investment income: Securities transactions are
recorded as of the trade date. Realized gains and losses from securities
transactions are recorded on the identified cost basis. Dividend income is
recorded on the ex-dividend date except that certain dividends from foreign
securities are recorded as soon as the Fund is informed of the ex-dividend
date. Interest income is recorded on the accrual basis. Investment income
and
realized and unrealized gains and losses are allocated based upon the
relative net assets of each class of shares.
Dividends and distributions to shareholders: Dividends from net investment
income, if any, are determined on a class level. Dividends from net
realized
capital gains are determined on a fund level. The Fund intends to pay
annual
dividends consisting of substantially all of its net investment income and
net short- term and long-term capital gains, if any. In addition, in order
to
avoid the application of a 4% nondeductible excise tax imposed on certain
undistributed amounts of ordinary income or capital gains, the Fund may
make
any additional distributions of any undistributed ordinary income or
capital
gains shortly before December 31 in each year and expects to make any other
distributions as are necessary to avoid this tax.
Income distributions and capital gain distributions on a Fund level are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily
due
to differing
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 income taxes: It is the Fund's policy to comply with the
requirements
of the Internal Revenue Code, as amended, applicable to regulated
investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no Federal income tax provision is required.
Reclassifications: During the current period, the Fund adopted Statement of
Position 93-2 "Determination, Disclosure and Financial Statement
Presentation
of Income, Capital Gain, and Return of Capital Distributions by Investment
Companies." Accordingly, certain reclassifications have been made to the
components of capital in the Statement of Net Assets to conform with the
accounting and reporting guidelines of this statement. Distributions in
excess of book basis accumulated realized gains or undistributed net
investment income that were the result of permanent book and tax accounting
differences have been reclassified to paid-in capital. In addition, amounts
distributed in excess of undistributed net investment income as determined
for financial statement purposes but as distributions from net investment
income or net realized gains for tax purposes, previously having been
reported as distributions from paid-in capital, have been reclassified to
reflect the tax characterization. Accordingly, amounts as of April 30, 1993
have been restated to reflect a decrease to net investment income, paid-in
capital and a decrease in accumulated net realized loss of $3,239,815,
$1,307,373 and $4,547,188, respectively. The Statement of Changes in Net
Assets and Financial Highlights for prior periods have not been restated to
reflect this change in presentation. Net investment income, net realized
gains, and net assets on a book and tax basis were not affected by this
change.
2. Investment Advisory Fee, Administration Fee
and Other Transactions
Prior to March 21, 1994, the Fund had entered into an investment advisory
agreement with Lehman Brothers Global Asset Management Limited ("LBGAM").
Under this agreement the Fund paid a monthly fee at the annual rate of .80%
of the value of its average daily net assets. As of the close of business
on
March 21, 1994, Smith, Barney Advisers, Inc. ("Smith Barney Advisers")
succeeded LBGAM as the Fund's investment adviser. The new investment
advisory
agreement contains substantially the same terms and conditions, including
the
level of fees, as the predecessor agreement.
Prior to April 20, 1994, the Fund was a party to an administration
agreement
dated May 21, 1993, with The Boston Company Advisors, Inc. ("Boston
Advisors"), an indirect wholly owned subsidiary of Mellon Bank Corporation
("Mellon"). Under this agreement, the Fund paid a monthly fee at the annual
rate of 0.20% of the value of its average daily net assets.
As of the close of business on April 20, 1994, Smith Barney Advisers, which
is controlled by Smith Barney Holdings Inc., succeeded Boston Advisors as
the
Fund's administrator. The new administration agreement contains
substantially
the same terms and conditions, including the level of fees as the
predecessor
agreement.
As of the close of business on April 20, 1994, the Fund entered into a
sub-administration agreement ("Sub-Administration Agreement") with Boston
Advisors. Under the Sub-Administration Agreement, Boston Advisors is paid a
portion of the fee paid by the Fund to Smith Barney Advisers at a rate
agreed
upon from time to time between Smith Barney Advisers and Boston Advisors.
For the year ended April 30, 1994, the Fund incurred total brokerage
commissions of $552,369, of which $43,008 was paid to Smith Barney.
For the year ended April 30, 1994, Smith Barney received from shareholders
$36,571 representing commissions (sales charges) on sales of the Class A
shares.
A CDSC is generally payable by a shareholder in connection with the
redemption of Class B shares within five years after the date of purchase.
In
circumstances in which the CDSC is imposed, the amount of the charge ranges
between 5% and 1% of Net Asset Value depending on the number of years since
the date of purchase. For the year ended April 30, 1994, Smith Barney
received from shareholders $42,551 representing contingent deferred sales
charges on the redemption of Class B shares.
No officer, director or employee of Smith Barney or of any parent or
subsidiary of Smith Barney receives any compensation from the Fund for
serving as a Trustee or officer of the Fund. The Fund pays each Trustee who
is not an officer,
director or employee of Smith Barney or any of its affiliates $3,000 per
annum plus $500 per meeting attended and reimburses 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 Fund's custodian. The Shareholders Services Group,
Inc.,
a subsidiary of First Data Corporation, serves as the Fund's transfer
agent.
3. Distribution Agreement
Smith Barney acts as distributor of the Fund's shares pursuant to a
distribution agreement with the Fund, and sells shares of the Fund through
Smith Barney or its affiliates.
Pursuant to Rule 12b-1 under the 1940 Act, the Fund has adopted a Service
and
Distribution Plan (the "Plan"). Under this Plan, the Fund compensates Smith
Barney Shearson for servicing shareholder accounts for Class A, Class B and
Class D shareholders, and covers expenses incurred in distributing Class B
and Class D shares. Smith Barney is paid a service fee with respect to
Class
A, Class B and Class D shares of the Fund at the annual rate of 0.25% of
the
value of the average daily net assets of each respective class of shares.
Smith Barney is also paid a distribution fee with respect to Class B and
Class D shares at the annual rate of 0.75% of the value of the average
daily
net assets attributable to each respective class of shares. For the year
ended April 30, 1994, the Fund incurred service fees of $79,340, $109,657
and
$222 for Class A, Class B and Class D shares, respectively. For the year
ended April 30, 1994, the Fund incurred distribution fees of $328,970 and
$665 for Class B shares and Class D shares, respectively.
4. Expense Allocation
Expenses of the Fund not directly attributable to the operations of any
class
of shares are prorated among the classes based upon the relative net assets
of each class of shares. Operating expenses directly attributable to a
class
of shares are charged to that class of shares' operations. In addition to
the
above servicing and distribution fees, class-specific operating expenses
include transfer agent fees of $77,145, $134,207, $213, and $69 for Class
A,
Class B, Class C, and Class D.
5. Purchases and Sales of Securities
Cost of purchases and proceeds from sales of securities, excluding short-
term
obligations, for the year ended April 30, 1994, were $108,958,702, and
$93,748,657, respectively.
At April 30, 1994, aggregate gross unrealized appreciation for all
securities
in which there was an excess of value over tax cost amounted to
$13,826,953,
and aggregate gross unrealized depreciation for all securities in which
there
was an excess of tax cost over value amounted to $2,278,867.
6. Shares of Beneficial Interest
The Fund may issue an unlimited number of shares of beneficial interest of
separate series, with a $.001 par value. Changes in shares of beneficial
interest in the Fund which are divided into four classes (Class A, Class B,
Class C and Class D) were as follows:
<TABLE>
<CAPTION>
Year Ended
Year Ended
4/30/94
4/30/93
Class A shares: Shares Amount Shares
Amount
- ---------------------------------------------------------------------------
- ------------
<S> <C> <C> <C>
<C>
Sold 4,241,582 $ 121,756,713 2,571,256
$ 64,303,032
Issued as reinvestment of
dividends 3,659 106,392 --
- --
Redeemed (4,190,793) (120,518,526) (3,629,868)
(90,327,671)
- ---------------------------------------------------------------------------
- ------------
Net increase/(decrease) 54,448 $ 1,344,579 (1,058,612)
$(26,024,639)
- ---------------------------------------------------------------------------
- ------------
</TABLE>
<TABLE>
<CAPTION>
Year Ended
Period Ended
4/30/94
4/30/93*
Class B shares: Shares Amount Shares
Amount
- ---------------------------------------------------------------------------
- -------------
<S> <C> <C> <C>
<C>
Sold 2,182,389 $ 62,396,040 597,184
$ 14,073,111
Issued in exchange for the net
assets of Shearson Lehman
Brothers Investment Funds
Inc.-Global Equity Fund
(Note 11) -- -- 254,564
6,297,002
Issued in exchange for the net
assets of Shearson Lehman
Brothers Equity
Funds-International Fund (Note
11) -- -- 946,498
23,848,144
Issued as reinvestment of
dividends 3,920 113,082 --
- --
Redeemed (1,217,537) (34,657,215) (587,229)
(14,836,999)
- ---------------------------------------------------------------------------
- -------------
Net increase 968,772 $ 27,851,907 1,211,017
$ 29,381,258
- ---------------------------------------------------------------------------
- -------------
</TABLE>
<TABLE>
<CAPTION>
Year Ended
Period Ended
4/30/94
4/30/93*
Class C shares: Shares Amount Shares
Amount
- ---------------------------------------------------------------------------
- --------------
<S> <C> <C> <C>
<C>
Sold 664,743 $ 18,538,644 792,496
$19,352,600
Issued as reinvestment of
dividends 6,174 180,050 --
- --
Redeemed (978,214) (28,518,648) (32,537)
(810,176)
- ---------------------------------------------------------------------------
- --------------
Net increase/(decrease) (307,297) $ (9,799,954) 759,959
$18,542,424
- ---------------------------------------------------------------------------
- --------------
</TABLE>
<TABLE>
<CAPTION>
Year Ended
Period Ended
4/30/94
4/30/93**
Class D shares: Shares Amount Shares
Amount
- ---------------------------------------------------------------------------
- --------------
<S> <C> <C> <C>
<C>
Sold $
11,851 350,749 1
$ 26
Issued as reinvestment of
dividends 10 302 --
- --
Redeemed (848) (25,000 ) --
- --
- ---------------------------------------------------------------------------
- --------------
Net increase 11,013 $326,051 1
$26
- ---------------------------------------------------------------------------
- --------------
</TABLE>
* The Fund commenced selling Class B and Class C shares on November 6,
1992.
Any shares outstanding prior to November 6, 1992 were designated as Class A
shares.
** The Fund had issued one Class D share as of April 30, 1993. The Fund
commenced selling Class D shares on October 22, 1993.
7. Restricted Security
The Fund's investment in the following security is restricted as to resale
and is valued under the direction of the Fund's Board of Trustees in good
faith, at fair value, taking into consideration all indications of value
available. The table below shows the name, acquisition date, fair value,
percentage of total net assets which the security comprises, aggregate cost
and value per share of the restricted security:
<TABLE>
<CAPTION>
Percentage
Acquisition Value Per
Fair of Total Net
Security Date Shares Cost Share
Value Assets
- ---------------------------------------------------------------------------
- ------------------------
<S> <C> <C> <C> <C>
<C> <C>
Incom, Common
Stock 5/13/86 80,000 $1,143,265 $14.61
$1,168,808 1.0%
- ---------------------------------------------------------------------------
- ------------------------
</TABLE>
The Fund may not invest more than 5% of the value of its total assets in
illiquid securities, restricted securities and other securities for which
market quotations are not readily available, including securities of
venture
capital companies. In purchasing securities which could not be sold by the
Fund without registration under the Securities Act of 1933, as amended, the
Fund will endeavor to obtain the right to registration at the expense of
the
issuer. There generally will be a lapse of time between the decision by the
Fund to sell any such security and the registration of the security
permitting sale. During any such period, the security will be subject to
market fluctuations.
8. Lending of Portfolio Securities
The Fund has the ability to lend its securities to brokers, dealers and
other
financial organizations. Loans of portfolio securities by the Fund will be
collaterized by cash, letters of credit or U.S. government securities that
are maintained at all times in an amount at least equal to the current
market
value of the loaned securities.
As of April 30, 1994 the Fund loaned securities to certain brokers with an
aggregate market value of $1,549,517 which represents 1.4% of total net
assets, for which the Fund received $1,634,500 as collateral.
9. Line of Credit
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, primarily for
temporary or emergency purposes, including the meeting of redemption
requests
that otherwise might require the untimely disposition of securities. The
Fund
may borrow up to the lesser of $25 million or 10% of its total assets
valued
at cost or 5% of its total assets valued at market value. Interest is
payable
either at the bank's Money Market Rate or the London Interbank Offered Rate
(LIBOR) plus .375% on an annualized basis. The Fund and the other
affiliated
entities are charged an aggregate commitment fee of $125,000 which is
allocated 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
aggregate
amount of indebtedness pursuant to the Agreement of no less than 5 to 1.
During the year ended April 30, 1994, the Fund did not borrow under the
Agreement.
10. Foreign Securities
Investing in securities of foreign companies and foreign governments
involves
special risks and considerations not typically associated with investing in
securities of U.S. companies and the United States government. These risks
include revaluation of currencies and future adverse political and economic
developments. Moreover, securities of many foreign companies and foreign
governments and their markets may be less liquid and their prices more
volatile than those of securities of comparable U.S. companies and the
United
States government.
11. Reorganization
On November 20, 1992, the Fund (Acquiring Fund) acquired the assets and
certain liabilities of Shearson Lehman Brothers Investment Funds Inc. -
Global Equity Fund ("Global Equity Fund") and Shearson Lehman Brothers
Equity
Funds - International Fund ("International Fund") ("Acquired Funds"), in
exchange for the Class B shares of the Acquiring Fund, pursuant to a plan
of
reorganization approved by the Acquired Funds' shareholders on November 20,
1992. Total shares issued by the Acquiring Fund, value of shares issued by
Acquiring Fund, total net assets of the Acquired Funds and the Acquiring
Fund
and any unrealized appreciation included in the Acquired Funds' total net
assets are as follows:
<TABLE>
<CAPTION>
Total
Shares Net
Issued Acquired Assets
Total Net
by Funds of
Assets of
Acquiring Acquired Acquiring Unrealized Acquired
Acquiring
Fund Fund Fund Appreciation Fund
Fund
- ---------------------------------------------------------------------------
- -----
<S> <S> <C> <C> <C> <C>
The Fund Global Equity Fund 254,564 $136,545 $ 6,297,002
$46,569,224
The Fund International Fund 946,498 942,895 23,848,144
46,569,224
- ---------------------------------------------------------------------------
- -----
</TABLE>
* The net assets of the Acquiring Fund immediately after the acquisition
were
$76,714,370.
Report of Independent Accountants
To The Shareholders and Board of Trustees of
Smith Barney Shearson Global Opportunities Fund:
We have audited the accompanying statement of assets and liabilities of
Smith
Barney Shearson Global Opportunities Fund (formerly Shearson Lehman
Brothers
Global Opportunities Fund), including the schedule of portfolio
investments,
as of April 30, 1994, and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two
years
in the period then ended, and the financial highlights for each of the nine
years in the period then ended and for the period from July 26, 1984
(commencement of operations) to April 30, 1985. 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.
We conducted our audits 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 April 30, 1994 by correspondence with the custodian
and brokers. 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
Smith Barney Shearson Global Opportunities Fund as of April 30,1994, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended and the financial
highlights for each of the nine years in the period then ended and for the
period from July 26, 1984 (commencement of operations) to April 30, 1985,
in
conformity with generally accepted accounting principles.
Coopers & Lybrand
Boston, Massachusetts
June 10, 1994
Tax Information (unaudited) Fiscal Year Ended April 30, 1994
The capital gains dividend distribution paid to shareholders of the Fund
for
April 30, 1994, whether taken in additional shares or in cash, is $136,763.
The above figure may differ from that cited elsewhere in this report due to
differences in the calculations of income and capital gains for Securities
and Exchange Commission (book) purposes and Internal Revenue Service (tax)
purposes.
Participants
Distributor
Smith Barney Inc.
388 Greenwich Street
New York, New York 10013
Investment Adviser
and Administrator
Smith, Barney Advisers, Inc.
1345 Avenue of the Americas
New York, New York 10105
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
APPENDIX TO FORM XXXX FILINGS TO DESCRIBE DIFFERENCES BETWEEN PRINTED
AND EDGAR-FILED TEXT
(1) Bold and italic typefaces are displayed in normal type.
(2) Headers (e.g., the name of the fund) and footers (e.g., page
numbers and "The accompanying notes are and integral part of these
financial statements") are ommited.
(3) Certain tabular and columnar headings and symbols are displayed
differently in this filing.
(4) Bullet points and similiar graphic signals are ommited.
(5) Page numbering is ommitted.
(6) Dagger footnote symbol replaced with plus sign (+).
