<PAGE>
SMITH BARNEY
SEMI- GLOBAL
ANNUAL OPPORTUNITIES
REPORT FUND, INC.
OCTOBER 31, 1994
[LOGO] SMITH BARNEY MUTUAL FUNDS
Investing for your future.
Every day.
<PAGE>
DEAR SHAREHOLDER:
G
L We are pleased to provide you with the Semi-Annual Report, which includes
O the portfolio of investments for Smith Barney Global Opportunities Fund
B for the six months ended October 31, 1994. During the past six months, the
A Fund's total return for Class A, Class B, Class C and Class D shares was
L 3.77%, 3.34%, 4.00% and 3.68%, respectively.
O
P PORTFOLIO STRATEGY
P
O The Fund's assets are invested in the equity markets of 21 countries,
R which is consistent with our focus of broad market diversification. These
T investments are concentrated in sectors that we believe will perform well
U in the current stage of the economic cycle, such as retailing,
N construction and construction materials, telecommunications and equipment
I suppliers, and consumer nondurables. In general, we have targeted those
T companies with the potential for high, dependable earnings growth rates
I that are often expected to be around 25-30% higher than the average of
E their local markets.
S
Since the end of June, we have been lowering the Portfolio's weightings
F in the United States (to 6.5% from 19.6%) and Japan (to 23.0% from 25.6%),
U and raising the weightings in countries where we see greater long-term
N growth, such as Finland, Ireland, Austria and the Philippines. As of
D October 31, 1994, our Top Ten holdings were Allgon; Nokia; Frazier &
Neave; Independent Insurance Group; (L.M.) Ericsson Telephone Company;
Itochu Corporation; Hitachi, Ltd.; Rohm Company; Mitsubishi Estate and Volvo.
We continue to be optimistic about the fundamentals of the Pacific Basin outside
of Japan. Lower cost labor forces have led to continuing industrialization and
prosperity, with a growing middle class and a tremendous need for the
development of infrastructure. As of October 31, 1994, approximately 18% of the
Portfolio's assets were allocated to the Pacific Basin with the exception of
Japan.
We increased our exposure to Latin America, to 4.6% from 3%, and left our
overall weighting in Europe at about the same level (approximately 40%).
ECONOMIC OVERVIEW
After three years of recession, many European economies are no longer in decline
and are beginning to show signs of modest improvement. In general, the European
economic cycle is lagging that of the United States by about 18 months to two
years; with a number of similarities: There has been a large scale inflow of
funds
1
<PAGE>
into equity markets, as investors look for alternatives to low interest-bearing
money market funds. In addition, corporate restructuring and cost reduction
programs have been common in many companies where profitability has deteriorated
over the past several years. Over the next few years, we believe that the
effects of these restructurings will begin to show up in earnings as the overall
economy continues to turn upward.
Sincerely,
/S/ Heath B. McLendon /S/ Jeffrey J. Russell /S/ James B. Conheady
Heath B. McLendon Jeffrey J. Russell James B. Conheady
Chairman of the Board Vice President and Investment Officer
and Investment Officer Investment Officer
December 19, 1994
2
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
PORTFOLIO HIGHLIGHTS (UNAUDITED) OCTOBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
COUNTRY BREAKDOWN
Pie chart depicting the allocation of the Global Opportunities Fund investment
securities held at October 31, 1994 by Country classification. The pie is
broken in pieces representing industries in the following percentages:
<CAPTION>
COUNTRY PERCENTAGE
<S> <C>
SWEDEN 9.7%
SINGAPORE 9.2%
UNITED STATES 6.5%
JAPAN 23.0%
COMMERCIAL PAPER & NET OTHER ASSETS
AND LIABILITIES 5.9%
ALL OTHER COUNTRIES 26.7%
GERMANY 3.7%
HONG KONG 4.2%
ITALY 4.9%
UNITED KINGDOM 6.2%
</TABLE>
<TABLE>
TOP TEN COMMON STOCKS
<CAPTION>
Percentage of
Company Net Assets
- ----------------------------------------------------------------------
<S> <C>
ALLGON AB, SERIES B 3.4%
NOKIA 2.9
FRAZIER & NEAVE 2.7
INDEPENDENT INSURANCE GROUP 2.0
ERICSSON (L.M.) TELEPHONE COMPANY, CLASS B, ADR 1.9
ITOCHU CORPORATION 1.8
HITACHI, LTD. 1.8
ROHM COMPANY 1.7
MITSUBISHI ESTATE 1.6
VOLVO AB FREE, SERIES B 1.5
</TABLE>
3
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) OCTOBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS - 94.1%
JAPAN - 23.0%
500 Aoyama Trading $ 15,382
23,000 Bunkyodo Company, Ltd. 997,264
80,000 Canon, Inc. 1,486,605
470 Dai Ichi Kangyo Bank 8,588
228,000 Hitachi, Ltd. 2,377,329
71,000 Ishiawajima Construction Materials 1,429,309
307,000 Itochu Corporation 2,389,697
32,000 Ito-Yokado 1,747,587
9,000 Japan Association Finance 1,328,653
600 Joyo Bank 5,265
500 Keyence Corporation 60,393
58,000 Mr. Max++ 1,544,830
103,000 Matsushita Electric Industrial 1,711,970
57,000 Mitsubishi Bank++ 1,429,928
174,000 Mitsubishi Estate 2,047,799
237,000 Mitsubishi Heavy Industry 1,930,450
27,000 N.I.C. Corporation++ 841,790
83,000 Nippon Denso Company++ 1,773,706
95,000 Nippon Express Company 1,029,784
52,000 Rohm Company 2,281,526
18,000 Secom 1,402,674
100 Tokio Marine & Fire Insurance Company 1,187
40,000 Toyo Seikan Kaisha 1,337,945
- ----------------------------------------------------------------------------------------
29,179,661
- ----------------------------------------------------------------------------------------
SWEDEN - 9.7%
200,000 Allgon AB, Series B 4,508,422
33,570 Astra AB Free, Series A 908,553
3,000 ASEA AB Free, Series A 218,325
40,000 Ericsson (L.M.) Telephone Company, Class B, ADR 2,437,500
20,000 Hennes & Mauritz, Series 5 1,107,625
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) OCTOBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
SWEDEN (CONTINUED)
67,650 SKF AB Free, Series B $ 1,233,158
100,000 Volvo AB Free, Series B 1,975,913
- ----------------------------------------------------------------------------------------
12,389,496
- ----------------------------------------------------------------------------------------
SINGAPORE - 9.2%
300,000 Cerebos Pacific, Ltd. 1,716,037
182,425 Development Bank of Singapore 1,937,916
300,000 Fraser & Neave 3,554,647
150,000 Jurong Shipyard 1,348,315
286,000 Overseas Union Bank 1,635,955
300,000 Sembawang Maritime 1,440,245
- ----------------------------------------------------------------------------------------
11,633,115
- ----------------------------------------------------------------------------------------
UNITED STATES - 6.5%
10,000 Air Products & Chemicals, Inc. 477,500
28,000 Coastal Corporation 798,000
9,000 Dow Chemical Company 661,500
20,000 Fluor Corporation 990,000
30,000 General Electric Company 1,466,250
35,000 Harvey Furniture 437,500
30,000 Interpool** 412,500
27,000 Musland Corporation 435,375
30,000 Panamerican Beverages, Inc. 1,035,000
10,000 Proctor & Gamble Corporation 625,000
40,000 Southern Pacific Rail Corporation 695,000
30,000 Westwood One, Inc 285,000
- ----------------------------------------------------------------------------------------
8,318,625
- ----------------------------------------------------------------------------------------
UNITED KINGDOM - 6.2%
149,895 Cable and Wireless 1,029,487
250,000 Flextech 1,950,037
659,815 Independent Insurance Group 2,697,407
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) OCTOBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
UNITED KINGDOM (CONTINUED)
60,500 Norweb $ 804,323
79,130 Royal Bank of Scotland 569,348
138,616 TI Group 813,752
- ----------------------------------------------------------------------------------------
7,864,354
- ----------------------------------------------------------------------------------------
ITALY - 4.9%
150,000 Alleanza Assicurazioni di Risp 1,382,138
800,000 Olivetti & C SpA++ 957,190
802,800 Parmalat Finanziaria SpA 819,069
500,000 Telecom Italia SpA 1,372,058
659,000 Stet di Risp 1,630,536
- ----------------------------------------------------------------------------------------
6,160,991
- ----------------------------------------------------------------------------------------
HONG KONG - 4.2%
70,000 Hang Lung Development Company 1,263,669
250,000 Hutchinson Whampoa 1,154,966
99,800 Jardine Matheson 829,783
1,000,000 Shun Tak 879,974
300,000 Wharf Holdings 1,184,083
- ----------------------------------------------------------------------------------------
5,312,475
- ----------------------------------------------------------------------------------------
GERMANY - 3.7%
3,573 Bayerische Motoren Werke AG 1,841,324
2,420 Deutsche Bank AG 1,192,419
2,125 Gea AG 734,781
4,050 Hoechst Group AG 886,834
- ----------------------------------------------------------------------------------------
4,655,358
- ----------------------------------------------------------------------------------------
FINLAND - 3.6%
25,000 Nokia 3,770,166
250,000 Tampella AB 813,705
- ----------------------------------------------------------------------------------------
4,583,871
- ----------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) OCTOBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
AUSTRIA - 3.3%
10,000 Bau Holdings $ 803,175
25,000 Flughafen Wein AG 1,131,532
10,000 Maculan Holdings 1,020,505
10,000 Voest Alpine 1,278,465
- ----------------------------------------------------------------------------------------
4,233,677
- ----------------------------------------------------------------------------------------
MEXICO - 3.2%
150,000 Gruma, S.A. de CV, Series B 1,008,147
20,000 Grupo Casa Autrey, ADR 610,000
70,000 Grupo Industrial Bimbo, S.A. de CV 568,228
55,000 Kimberly Clark de Mexico, Series A 1,091,359
15,000 Telefonos de Mexico, S.A., ADR 826,875
- ----------------------------------------------------------------------------------------
4,104,609
- ----------------------------------------------------------------------------------------
AUSTRALIA - 3.2%
200,000 Mayne Nickless, Ltd. 1,055,977
900,000 MIM Holdings, Ltd. 1,958,236
166,665 The News Corporation 1,026,016
- ----------------------------------------------------------------------------------------
4,040,229
- ----------------------------------------------------------------------------------------
FRANCE - 3.1%
80,000 Incom+** 1,289,446
28,000 Michelin (Cie Gle Des Establishment) 1,171,764
22,473 Total "B" Shares 1,457,177
- ----------------------------------------------------------------------------------------
3,918,387
- ----------------------------------------------------------------------------------------
IRELAND - 2.7%
225,000 Independent Newspaper 1,050,265
100,000 Irish Continental Group 708,224
545,249 Irish Life 1,667,503
- ----------------------------------------------------------------------------------------
3,425,992
- ----------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) OCTOBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
NETHERLANDS - 1.8%
8,000 Heineken, N.V. $ 1,170,118
9,725 Royal Dutch Petroleum 1,132,169
- ----------------------------------------------------------------------------------------
2,302,287
- ----------------------------------------------------------------------------------------
CHILE - 1.4%
40,000 Embotelladora Andina, S.A., ADR 1,105,000
35,000 Laboratorio Chile, S.A., ADR 643,125
- ----------------------------------------------------------------------------------------
1,748,125
- ----------------------------------------------------------------------------------------
MALAYSIA - 1.3%
106,667 Arab Malasian Finance 342,335
106,666 Arab Malasian Finance Berhad 9,347
200,000 Resorts World Berhad 1,268,102
- ----------------------------------------------------------------------------------------
1,619,784
- ----------------------------------------------------------------------------------------
DENMARK - 1.1%
50,000 Teledanmark, ADR 1,437,500
- ----------------------------------------------------------------------------------------
CANADA - 0.7%
100,000 Videotron 942,664
- ----------------------------------------------------------------------------------------
PHILLIPINES - 0.7%
1,000,000 Universal Robina Corporation 874,196
- ----------------------------------------------------------------------------------------
SWITZERLAND - 0.6%
1,405 Ciba-Geigy AG 819,523
- ----------------------------------------------------------------------------------------
TOTAL COMMON STOCKS (Cost $105,551,381) 119,564,919
- ----------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) OCTOBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
FACE VALUE (NOTE 1)
- ----------------------------------------------------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER - 9.5%
$4,998,000 Ford Motor Credit Corporation, 4.720% due 11/1/94 $ 4,998,000
7,123,000 General Electric Capital Corporation, 4.720% due 11/1/94 7,123,000
- ----------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER (Cost $12,121,000) 12,121,000
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $117,672,381*) 103.6% 131,685,919
- ----------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET) (3.6) (4,596,222)
- ----------------------------------------------------------------------------------------
NET ASSETS 100.0% $127,089,697
- ----------------------------------------------------------------------------------------
<FN>
* Aggregate cost for Federal tax purposes.
** Non-income producing security.
+ Restricted security. (See Note 7).
++ Securities loaned at 10/31/94 (See Note 8).
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) OCTOBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
At October 31, 1994, sector diversification of the Fund's portfolio was as follows:
<CAPTION>
PERCENTAGE OF MARKET VALUE
SECTOR DIVERSIFICATION NET ASSETS (NOTE 1)
- ----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
Banking & Finance 11.7% $ 14,837,433
Transportation 9.9 12,585,830
Consumer Services 7.9 10,093,164
Communication 7.5 9,553,479
Basic Industries 4.8 6,113,116
Machinery 4.7 5,959,904
Consumer Non-Durables 4.7 5,959,766
Technology 4.6 5,876,730
Consumer Durables 4.4 5,575,905
Entertainment 3.5 4,445,802
Holding Companies 3.2 4,063,740
Construction 3.1 3,967,842
Food & Beverage 2.8 3,570,106
Manufacturing 2.6 3,244,020
Retail 2.4 2,979,595
Oil & Gas 2.0 2,589,346
Health Care 1.9 2,393,468
Chemicals 1.6 2,025,834
Metals & Mining 1.5 1,958,236
Paper & Printing 1.5 1,863,970
Utilities 1.3 1,602,323
Other 6.5 8,305,310
- ----------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 94.1 119,564,919
========================================================================================
COMMERCIAL PAPER 9.5 12,121,000
========================================================================================
TOTAL INVESTMENTS 103.6% 131,685,919
========================================================================================
OTHER ASSETS AND LIABILITIES (NET) (3.6) (4,596,222)
========================================================================================
NET ASSETS 100.0% $127,089,697
========================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
SCHEDULE OF FORWARD FOREIGN
EXCHANGE CONTRACTS (UNAUDITED) OCTOBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONTRACT
VALUE MARKET VALUE
DATE (NOTE 1)
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C>
FORWARD FOREIGN EXCHANGE CONTRACTS TO BUY
17,098,200 Japanese Yen 11/2/94 $ 176,518
3,488,900 Austrian Schillings 11/7/94 329,674
- ------------------------------------------------------------------------------------------
TOTAL FORWARD FOREIGN EXCHANGE CONTRACTS TO BUY
(Contract Amount $507,746) $ 506,192
==========================================================================================
FORWARD FOREIGN EXCHANGE CONTRACTS TO SELL
166,937,094 Japanese Yen 11/1/94 $(1,723,400)
1,325,435 German Deutschemarks 11/2/94 (881,361)
887,335 Australian Dollars 11/3/94 (658,920)
1,349,896 Malaysian Ringgit 11/4/94 (528,349)
647,606 Great Britian Pounds Sterling 11/9/94 (1,058,906)
- ------------------------------------------------------------------------------------------
TOTAL FORWARD FOREIGN EXCHANGE CONTRACTS TO SELL
(Contract Amount $4,856,585) $(4,850,936)
==========================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) OCTOBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (Cost $117,672,381) (Note 1)
See accompanying schedule $131,685,919
Cash and foreign currency, at value (Cost $2,680,110) 2,723,333
Receivable for investment securities sold 4,857,891
Receivable for forward foreign exchange contracts to sell 4,856,585
Receivable for Fund shares sold 592,833
Forward foreign exchange contracts to buy, at value
(Contract cost $507,746) (Note 1)
See accompanying schedule 506,192
Dividends and interest receivable 427,165
- ----------------------------------------------------------------------------------------
TOTAL ASSETS 145,649,918
========================================================================================
LIABILITIES:
Payable for Fund shares redeemed $5,007,484
Forward foreign exchange contracts to sell, at value
(Contract cost $4,856,585) (Note 1)
See accompanying schedule 4,850,936
Payable for investment securities purchased 4,494,633
Collateral for securities loaned (Note 8) 3,342,839
Payable for forward foreign exchange contracts to buy 507,746
Investment advisory fee payable (Note 2) 83,358
Distribution fee payable (Note 3) 35,735
Transfer agent fees payable (Note 2) 29,537
Custodian fees payable (Note 2) 28,250
Service fee payable (Note 3) 23,797
Administration fee payable (Note 2) 20,839
Accrued expenses and other payables 135,067
- ----------------------------------------------------------------------------------------
TOTAL LIABILITIES 18,560,221
========================================================================================
NET ASSETS $127,089,697
========================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
NET ASSETS CONSIST OF:
Accumulated net investment loss $ (129,862)
Accumulated net realized gain on securities sold, forward
foreign exchange contracts and foreign currency transactions 8,741,849
Net unrealized appreciation of securities, forward foreign
exchange contracts, foreign currency and net other assets 14,060,856
Par value 4,153
Paid-in capital in excess of par value 104,412,701
- ----------------------------------------------------------------------------------------
TOTAL NET ASSETS $127,089,697
========================================================================================
NET ASSET VALUE
CLASS A SHARES:
NET ASSET VALUE and redemption price per share
($57,190,650 / 1,856,587 shares of beneficial interest outstanding) $30.80
========================================================================================
Maximum offering price per share ($30.80 / 0.95) (based on
sales charge of 5% of the offering price at October 31, 1994) $32.42
========================================================================================
CLASS B SHARES:
NET ASSET VALUE and offering price per share+
($56,817,142 / 1,873,609 shares of beneficial interest outstanding) $30.32
========================================================================================
CLASS C SHARES:
NET ASSET VALUE, offering and redemption price per share
($12,253,962 / 395,666 shares of beneficial interest outstanding) $30.97
========================================================================================
CLASS D SHARES:
NET ASSET VALUE, offering and redemption price per share
($827,943 / 26,995 shares of beneficial interest outstanding) $30.67
========================================================================================
<FN>
+ Redemption price per share is equal to Net Asset Value less any applicable contingent
deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (UNAUDITED) FOR THE SIX MONTHS ENDED OCTOBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $106,076) $1,023,337
Interest 203,118
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,226,455
- ----------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee (Note 2) $468,171
Distribution fee (Note 3) 252,898
Transfer agent fees (Notes 2 and 4) 143,676
Service fee (Note 3) 130,407
Administration fee (Note 2) 117,043
Custodian fees (Note 2) 85,076
Legal and audit fees 45,025
Registration and filing fees 41,603
Trustees' fees and expenses (Note 2) 27,442
Other 44,976
- ----------------------------------------------------------------------------------------
TOTAL EXPENSES 1,356,317
- ----------------------------------------------------------------------------------------
NET INVESTMENT LOSS (129,862)
========================================================================================
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS (NOTES 1 AND 5):
Net realized gain/(loss) on:
Securities transactions 2,770,983
Forward foreign exchange contracts (126,384)
Foreign currency transactions 58,065
- ----------------------------------------------------------------------------------------
Net realized gain on investments during the period 2,702,664
- ----------------------------------------------------------------------------------------
Net change in unrealized appreciation of:
Securities 2,465,452
Forward foreign exchange contracts 4,095
Foreign currencies and net other assets 60,611
- ----------------------------------------------------------------------------------------
Net unrealized appreciation of investments during the period 2,530,158
========================================================================================
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 5,232,822
========================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $5,102,960
========================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
10/31/94 ENDED
(UNAUDITED) 4/30/94
<S> <C> <C>
Net investment loss $ (129,862) $ (64,024)
Net realized gain on securities transactions, forward foreign
exchange contracts and currency transactions during the period 2,702,664 7,836,729
Net unrealized appreciation on securities, forward foreign exchange
contracts, foreign currencies and net other assets during the period 2,530,158 3,414,288
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 5,102,960 11,186,993
Distributions to shareholders from 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 20,182,448 1,344,579
Class B (9,481,490) 27,851,907
Class C (1,704,532) (9,799,954)
Class D 476,896 326,051
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets 14,576,282 30,501,113
NET ASSETS:
Beginning of period 112,513,415 82,012,302
- ---------------------------------------------------------------------------------------------------------------
End of period (Including accumulated net investment loss of
$129,862 at October 31, 1994) $127,089,697 $112,513,415
===============================================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A CLASS A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED YEAR YEAR YEAR
10/31/94 ENDED ENDED ENDED
(UNAUDITED) 4/30/94#+++ 4/30/93# 4/30/92
<S> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 29.68 $ 26.59 $ 24.78 $ 24.83
- ------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.02 0.04 0.24 0.30
Net realized and unrealized gains and losses
on investments 1.10 3.15 1.57 (0.35)
- ------------------------------------------------------------------------------------------------
Total from investment operations 1.12 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 0.00 (0.10) 0.00 0.00
- ------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 30.80 $ 29.68 $ 26.59 $ 24.78
================================================================================================
Total return++ 3.77% 12.00% 7.30 % (0.20)%
================================================================================================
Ratios to average net assets/Supplemental Data:
Net assets, end of period (in 000's) $57,191 $34,747 $29,679 $53,884
Ratio of operating expenses to average net assets 1.94%+ 1.89% 1.99 % 1.59%
Ratio of net investment income to average net assets 0.16%+ 0.15% 0.97 % 1.29%
Portfolio turnover rate 37% 93% 71 % 35%
================================================================================================
<FN>
* The Fund commenced operations on July 26, 1984. Any shares in existence prior to November 6, 1992
were designed 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 31, 1986 and $0.58 for the period ended April 31, 1985.
+ 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 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>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
<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>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A CLASS B SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED YEAR PERIOD
10/31/94 ENDED ENDED
(UNAUDITED) 4/30/94#+++ 4/30/93*#
<S> <C> <C> <C>
Net Asset Value, beginning of period $ 29.34 $ 26.49 $ 24.34
- -------------------------------------------------------------------------------------
Income from investment operations:
Net investment loss (0.11) (0.19) (0.03)
Net realized and unrealized gain on investments 1.09 3.11 2.18
- -------------------------------------------------------------------------------------
Total from investment operations 0.98 2.92 2.15
- -------------------------------------------------------------------------------------
Less distributions:
Distributions from net realized capital gains -- (0.07) --
- -------------------------------------------------------------------------------------
Net Asset Value, end of period $ 30.32 $ 29.34 $ 26.49
- -------------------------------------------------------------------------------------
Total return++ 3.34% 11.04% 9.33%
- -------------------------------------------------------------------------------------
Ratios to average net assets/Supplemental Data:
Net assets, end of period (in 000's) $56,817 $63,960 $32,083
Ratio of operating expenses to average net assets 2.70%+ 2.73% 3.13%+
Ratio of net investment loss to average net assets (0.60)%+ (0.66)% (0.26)%+
Portfolio turnover rate 37% 93% 71%
- -------------------------------------------------------------------------------------
<FN>
* 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 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.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A CLASS C SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED YEAR PERIOD
10/31/94 ENDED ENDED
(UNAUDITED) 4/30/94#+++ 4/30/93*#
<S> <C> <C> <C>
Net Asset Value, beginning of period $ 29.78 $ 26.65 $ 24.23
- ----------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.11 0.19 0.15
Net realized and unrealized gain on investments 1.08 3.09 2.27
- ----------------------------------------------------------------------------------------
Total from investment operations 1.19 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: 0.00 (0.15) 0.00
- ----------------------------------------------------------------------------------------
Net Asset Value, end of period $ 30.97 $ 29.78 $ 26.65
========================================================================================
Total return++ 4.00% 12.34% 9.99%
========================================================================================
Ratios to average net assets/Supplemental Data:
Net assets, end of period (in 000's) $12,254 $13,480 $20,250
Ratio of operating expenses to average net assets 1.42%+ 1.40% 1.66%+
Ratio of net investment income to average net assets 0.67%+ 0.64% 1.21%+
Portfolio turnover rate 37% 93% 71%
========================================================================================
<FN>
* On November 6, 1992, the Fund commenced selling Class C shares.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
+++ As of March 21, 1994, the Fund changed its investment adviser from Lehman Brothers Global
Asset Management Limited to its current 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.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A CLASS D SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED PERIOD
10/31/94 ENDED
(UNAUDITED) 4/30/94*#+++
<S> <C> <C>
Net Asset Value, beginning of period $ 29.58 $ 28.65
- -------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (0.04) (0.06)
Net realized and unrealized gain on investments 1.13 1.06
- -------------------------------------------------------------------------------------
Total from investment operations 1.09 1.00
- -------------------------------------------------------------------------------------
Less distributions:
Distributions from net realized capital gains -- (0.07)
- -------------------------------------------------------------------------------------
Net Asset Value, end of period $ 30.67 $ 29.58
- -------------------------------------------------------------------------------------
Total return++ 3.68% 3.50%
- -------------------------------------------------------------------------------------
Ratios to average net assets/Supplemental Data:
Net assets, end of period (in 000's) $ 828 $ 326
Ratio of operating expenses to average net assets 2.45%+ 2.48%+
Ratio of net investment loss to average net assets (0.35)%+ (0.43)%+
Portfolio turnover rate 37% 93%
- -------------------------------------------------------------------------------------
<FN>
* The Fund commenced selling Class D shares on October 22, 1993.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
+++ As of March 21, 1994, the Fund changed its investment adviser from Lehman Brothers Global
Asset Management Limited to its current adviser.
# The per share amounts have been calculated using the monthly average shares method, which
more appropriately presents per share data for the period since use of the undistributed
method did not accord with results of operations.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Smith Barney Global Opportunities Fund (the "Fund") (formerly Smith Barney
Shearson Global Opportunities 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 (the "1940 Act"), 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
21
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
- --------------------------------------------------------------------------------
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 or 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.
22
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
- --------------------------------------------------------------------------------
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
amounts 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 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 dividends 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
23
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
- --------------------------------------------------------------------------------
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.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER TRANSACTIONS
The Fund has entered into an investment advisory agreement (the "Advisory
Agreement") with Smith Barney Mutual Funds Management, Inc. ("SBMFM") (formerly
known as "Smith, Barney Advisers, Inc."). Under the Advisory Agreement, the Fund
pays a monthly fee at an annual rate of 0.80% of the value of its average daily
net assets.
The Fund has also entered into an administration agreement (the "Administration
Agreement") with SBMFM. Under the Administration Agreement, the Fund pays SBMFM
a monthly fee at the annual rate of 0.20% of the value of its average daily net
assets.
The Fund and SBMFM entered into a sub-administration agreement (the "Sub-
Administration Agreement") with The Boston Company Advisors, Inc. ("Boston
Advisors"), an indirect wholly owned subsidiary of Mellon Bank Corporation
("Mellon"). Under the Sub-Administration Agreement, Boston Advisors is paid a
portion of the fee paid by the Fund to SBMFM at a rate agreed upon from time to
time between SBMFM and Boston Advisors.
For the six months ended October 31, 1994, the Fund incurred total brokerage
commissions of $345,652 of which $51,349 was paid to Smith Barney.
For the six months ended October 31, 1994, SBMFM received from shareholders
$59,622 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 5.0% and
1.0% of Net Asset Value depending on the number of years since the date of
purchase. For the six months ended October 31, 1994, SBMFM received from
shareholders $97,801 representing contingent deferred sales charges on the
redemption of Class B shares.
24
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
- --------------------------------------------------------------------------------
No officer, director or employee of Smith Barney or of any of its affiliates
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. SERVICES AND DISTRIBUTION PLAN
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 Services and
Distribution Plan (the "Plan"). Under this Plan, the Fund compensates Smith
Barney 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 an annual service fee with respect to Class A,
Class B and Class D shares of the Fund at the rate of 0.25% of the value of the
average daily net assets of each respective class of shares. Smith Barney is
also paid an annual distribution fee with respect to Class B and Class D shares
at the rate of 0.75% of the value of the average daily net assets attributable
to each respective class of shares. For the six months ended October 31, 1994,
the Fund incurred service fees of $46,108, $83,602 and $697 for Class A, Class B
and Class D shares, respectively. For the six months ended October 31, 1994, the
Fund incurred distribution fees of $250,807 and $2,091 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 $49,682, $93,586, $326, and $82 for Class A, Class B,
Class C, and Class D shares, respectively.
25
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
- --------------------------------------------------------------------------------
5. PURCHASES AND SALE OF SECURITIES
Cost of purchases and proceeds from sales of securities, excluding short-term
obligations, for the six months ended October 31, 1994, were $53,367,944, and
$41,170,506, respectively.
At October 31, 1994, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost amounted to
$17,831,372, and aggregate gross unrealized depreciation for all securities in
which there was an excess of tax cost over value amounted to $3,817,834.
6. SHARES OF BENEFICIAL INTEREST
<TABLE>
The Fund may issue an unlimited number of shares of beneficial interest of
separate series, with a $0.001 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:
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
10/31/94 04/30/94
Class A shares: Shares Amount Shares Amount
=================================================================================================
<S> <C> <C> <C> <C>
Sold 3,390,469 $100,602,354 4,241,582 $ 121,756,713
Issued as reinvestment of dividends -- -- 3,659 106,392
Redeemed (2,704,635) (80,419,906) (4,190,793) (120,518,526)
- -------------------------------------------------------------------------------------------------
Net increase 685,834 $ 20,182,448 54,448 $ 1,344,579
=================================================================================================
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
10/31/94 04/30/94
Class B shares: Shares Amount Shares Amount
================================================================================================
<S> <C> <C> <C> <C>
Sold 1,195,910 $ 34,717,362 2,182,389 $ 62,396,040
Issued as reinvestment of dividends -- -- 3,920 113,082
Redeemed (1,502,090) (44,198,852) (1,217,537) (34,657,215)
- ------------------------------------------------------------------------------------------------
Net increase/(decrease) (306,180) $ (9,481,490) 968,772 $ 27,851,907
================================================================================================
</TABLE>
26
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
10/31/94 04/30/94
Class C shares: Shares Amount Shares Amount
=================================================================================================
<S> <C> <C> <C> <C>
Sold 7,915 $ 239,914 664,743 $ 18,538,644
Issued as reinvestment of dividends -- -- 6,174 180,050
Redeemed (64,911) (1,944,446) (978,214) (28,518,648)
- -------------------------------------------------------------------------------------------------
Net increase/(decrease) (56,996) $ (1,704,532) (307,297) $ (9,799,954)
=================================================================================================
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
10/31/94 04/30/94
Class D shares: Shares Amount Shares Amount
==============================================================================================
<S> <C> <C> <C> <C>
Sold 16,246 $ 484,820 11,851 $ 350,749
Issued as reinvestment of dividends -- -- 10 302
Redeemed (265) (7,924) (848) (25,000)
- ----------------------------------------------------------------------------------------------
Net increase 15,981 $ 476,896 11,013 $ 326,051
==============================================================================================
</TABLE>
7. RESTRICTED SECURITIES
The following security held by the Fund is a restricted security under the
Federal securities laws and is valued at fair value in good faith by or under
the direction of the Fund's Board of Trustees taking into consideration such
factors as the Board deems appropriate. 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>
VALUE PERCENTAGE
ACQUISITION PER FAIR OF TOTAL
SECURITY DATE SHARES COST SHARE VALUE NET ASSETS
=================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Incom, Common Stock 5/13/86 80,000 $1,143,265 $16.12 $1,289,446 1.0%
=================================================================================================
</TABLE>
The Fund may purchase securities which are subject to legal or contractual
restrictions on resale if not more than 15% of the value of the Fund's total
assets would be invested in such securities or in securities for which there is
no readily available market. 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
27
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
- --------------------------------------------------------------------------------
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 October 31, 1994 the Fund loaned securities to certain brokers with an
aggregate market value of $3,174,552 which represents 2.4% of total net assets,
for which the Fund received $3,342,839 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 and renewed effective
May 31, 1994, 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 net assets. Interest is payable either at the bank's Money Market
Rate or the London Interbank Offered Rate (LIBOR) plus .375% on an annualized
basis. The Fund and the other affiliated entities are charged an aggregate
commitment fee of $100,000 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 six months ended October 31, 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
28
<PAGE>
Smith Barney
Global Opportunities Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
- --------------------------------------------------------------------------------
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. CAPITAL STRUCTURE
On July 20, 1994, the Board of Trustees of the Fund approved several changes to
the class and pricing structure of the former Smith Barney Shearson mutual
funds, to facilitate consolidation of those funds with the Smith Barney Mutual
Funds (the "Uniform Structure"). Under the Uniform Structure, effective November
7, 1994, shares previously designated as Class A or Class B shares retained
their designations. However, shares previously designated as Class C and Class D
shares were redesignated as Class Z and Class C shares, respectively. In
addition, the Fund offers a new class of shares, Class Y shares, without
imposition of a sales charge, to investors making an initial investment of at
least $5 million. Adoption of the Uniform Structure has no effect on the rights
and privileges of the fund's current shareholders.
29
<PAGE>
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
Jeffrey J. Russell
Vice President and This report is submitted for the
Investment Officer general information of the
shareholders of Smith Barney
James B. Conheady Global Opportunities Fund. It is
Investment Officer not authorized for distribution to
prospective investors unless
Lewis E. Daidone accompanied or preceded by an
Senior Vice President effective Prospectus for the Fund,
and Treasurer which contains information
concerning the Fund's investment
Chistina T. Sydor policies, fees and expenses as well
Secretary as other pertinent information.
SMITH BARNEY
------------
SMITH BARNEY
MUTUAL FUNDS
388 Greenwich Street
New York, New York 10013
[Recycle RECYCLED Fund 15, 200, 448, 201
logo] RECYCLABLE FD 0821 L4
