SEMI-ANNUAL REPORT O APRIL 30, 1999
CITISELECT(R) PORTFOLIOS
- ---------------------------------------
CITISELECT(R) FOLIO 200 CONSERVATIVE
- ---------------------------------------
CITISELECT(R) FOLIO 300 BALANCED
- ---------------------------------------
CITISELECT(R) FOLIO 400 GROWTH
- ---------------------------------------
CITISELECT(R) FOLIO 500 GROWTH PLUS
- ---------------------------------------
Investment Products:
NOT FDIC INSURED o NO BANK GUARANTEE o MAY LOSE VALUE
<PAGE>
TABLE OF CONTENTS
Letter to Our Shareholders 1
..............................................................
Portfolio Environment and Outlook 2
..............................................................
Risk Reward Trade-Off 3
..............................................................
Fund Facts 4
..............................................................
Portfolio Highlights 5
..............................................................
Fund Performance 6
..............................................................
Statements of Assets and Liabilities 10
..............................................................
Statements of Operations 11
..............................................................
Statements of Changes in Net Assets 12
..............................................................
Financial Highlights 14
..............................................................
Notes to Financial Statements 17
..............................................................
<PAGE>
LETTER TO OUR SHAREHOLDERS
Dear CitiSelect Portfolios Shareholder:
This semiannual report covers the period from November 1, 1998 through April
30, 1999. In this report, Citibank, N.A., the CitiSelect Portfolios' investment
manager, discusses the market conditions it faced, the strategies it employed
and its outlook for the future.
ANNOUNCING SOME IMPORTANT PORTFOLIO CHANGES
We are pleased to report that all proposals presented at the special meeting
of shareholders held on Friday, April 9, 1999, were voted upon, passed and
adopted. These proposals included the appointment of two new subadvisers.
Effective January 22, 1999, SSBC Fund Management Inc., formerly known as
Mutual Management Corp., assumed portfolio management responsibilities for the
Large Cap Value asset class. Effective March 1, 1999, Salomon Brothers Asset
Management Limited assumed portfolio management responsibilities for the Foreign
Bond asset class. These subadvisers were selected after rigorous and careful
analysis of their respective investment processes and track records.
In addition, on March 1, 1999, we announced changes in the Portfolios' asset
allocations. We eliminated Short-Term Portfolio as a separate asset class to
increase the Portfolios' potential in rising securities markets. In addition, we
now hedge the Foreign Bond Portfolio. Furthermore, we added High Yield Bond as
an asset class to increase the Portfolios' potential for higher short-term
income over the near term as well as provide attractive total return potential
over the longer term in certain portfolios.
Salomon Brothers Asset Management Inc. was appointed subadviser for the High
Yield Bond Portfolio.
On May 3, 1999, we are proud to report the introduction of a new CitiSelect
Folio 100 Income. As the most conservative product in the family, CitiSelect
Folio 100 Income invests, under normal conditions, about 90% of its assets in a
diverse array of fixed income securities, and about 10% in stocks. (Of course,
actual asset class allocations may vary, as described in the Fund's prospectus.)
Folio 100's objective is to produce competitive levels of current income.
CitiSelect Folio 100 Income is intended for investors seeking current income
with relatively low risk but with some growth potential.
Also, effective May 3, 1999, the CitiSelect Portfolios also received new
names:
CitiSelect Folio 100 Income (new Portfolio)
CitiSelect Folio 200 Conservative
CitiSelect Folio 300 Balanced
CitiSelect Folio 400 Growth
CitiSelect Folio 500 Growth Plus
All of these important changes reflect our commitment to providing our
shareholders with a family of fully invested asset allocation funds offering
world-class portfolio management in each of their respective asset classes. SSBC
Fund Management, Inc. is a wholly-owned subsidiary of Salomon Smith Barney
Holdings, Inc., which in turn is a wholly-owned subsidiary of Citigroup Inc.
Salomon Brothers Asset Management Limited and Salomon Brothers Asset Management
Inc. are indirect wholly-owned subsidiaries of Citigroup, Inc. Each of these
three subadvisers is an affiliate of Citibank, N.A.
The CitiSelect Portfolios held a Special Meeting of Shareholders on April 9,
1999 where shareholders voted to add two new subadvisers for their Funds;
transfer the assets of Intermediate Income Portfolio, an underlying investment
company in which the Funds invest, to U.S. Fixed Income Portfolio, an investment
company with a similar investment objective; and approve the selection of the
Funds' accountants. All proposals were approved by shareholders. A detailed
table pertaining to the shareholder votes by proposals appears in Note 7 on page
22 of this Report.
Thank you for your continued participation in the CitiSelect Portfolios. We
look forward to helping you pursue your long-term investment needs in the years
to come.
Sincerely,
/S/ Philip W. Coolidge
- ------------------------
Philip W. Coolidge
President
May 20, 1999
1
<PAGE>
PORTFOLIO ENVIRONMENT AND OUTLOOK
The six months reporting period was difficult for most allocation funds. We
believe that the aggressive steps we have taken, discussed in the President's
Letter of this report, along with changes in market conditions, should help to
improve the Portfolios' performance potential in the future. As previously
noted, we have restructured the CitiSelect Portfolios, eliminating cash, adding
high-yield U.S. bonds and now hedge the foreign bond portfolio. Moreover, we
have appointed new subadvisers for the large cap value, and foreign fixed income
and high-yield bond asset classes. We have also made some modest changes to our
asset allocation strategy.
The reporting period saw a continuation of the strong economic conditions
that have existed in the U.S. for more than seven years. Lower short-term
interest rates and a looser monetary policy adopted by the Federal Reserve Board
in the fall of 1998 appear to have helped U.S. businesses better cope with the
effects of the global credit and currency crisis that began in Asia in 1997 and
spread to Russia and parts of Latin America in 1998. During this period, U.S.
consumer spending remained high, the rate of unemployment was low and
inflationary pressures continued to be virtually nonexistent.
While most overseas markets did not match the economic strength of the U.S.,
many of their economies appear to have improved. In our view, lower short-term
interest rates adopted by central banks worldwide in the fall of 1998 have
helped many countries improve their economic conditions. This was especially
true in Japan, Asia, Latin America and Eastern Europe, areas that had previously
borne the full brunt of the global currency and credit crisis. And while
economic growth stabilized in the industrialized economies of Western Europe,
our outlook for this area remains positive.
All of these economic conditions produced mixed results for the asset classes
in which the various CitiSelect Portfolios invest. For example, the S&P 500
Index* recorded new highs. On the other hand, despite record-setting highs, the
U.S. stock market's advance as defined by the S&P 500 Index was remarkably
narrow, led by a relatively small number of large cap growth and technology
companies, especially those businesses involved in the Internet. For the most
part, large cap value stocks and virtually all sectors of the small-cap market
- -- with the exception of technology -- produced lackluster results.
Foreign stocks also provided widely disparate returns during the reporting
period. During the first half of the reporting period, international stock
market declines were broad-based, affecting many different industries and market
sectors. Companies that are sensitive to economic cycles, such as energy and
commodities producers, were particularly adversely affected.
Toward the end of January 1999, however, investor sentiment improved as
strong evidence of continuing global economic growth emerged. The result: a
gradual return of capital to previously illiquid markets, and higher stock
prices in Japan and most emerging markets. In Europe, a decline in the value of
the newly introduced currency, the euro, contributed to relative weakness in
certain major stock markets, including Germany. Others, such as the United
Kingdom, performed relatively well.
Fixed income securities also provided mixed returns during the past six
months. U.S. Treasury securities, a sector that rallied strongly last summer
when the stock market and other bond market sectors declined sharply, gave back
some of their gains. However, other types of bonds performed better as many
investors shifted their money back into corporate bonds, mortgage-backed
securities, asset-backed securities and foreign bonds, sectors that were avoided
earlier.
Under these market conditions, large cap U.S. growth stocks contributed the
most to the performance of the various CitiSelect Portfolios, whereas fixed
income holdings generated only modest gains. Conversely, large cap value stocks,
small cap stocks and international stocks detracted from the Portfolios'
performance. Yet, even under these narrow market conditions and large cap growth
stock dominance, it is important to note that the various CitiSelect Portfolios
generated the relative levels of return that they were designed to provide.
CitiSelect Folio 500 produced both the highest absolute returns and the highest
levels of short-term volatility, followed by CitiSelect Folio 400 and CitiSelect
Folio 300. CitiSelect Folio 200 provided the lowest returns and volatility.
During the reporting period and as indicated previously, adjustments were
made to the mix of asset classes in their small-cap and international exposure
for CitiSelect Folios 200, 300, 400 and 500 in order to broaden their
diversification.
2
<PAGE>
Looking forward, we expect economic changes to produce potentially high
levels of volatility in many sectors of the global financial markets. In April
1999, for example, we began to see evidence that small cap and value-oriented
stocks may be poised to outperform large cap growth stocks for the first time in
years. In our view, the commitment to diversification that the CitiSelect
Portfolios' represent should position our shareholders to effectively and
conveniently participate in the emergence of new market leadership if that
happens. In addition, the broad diversification of the CitiSelect Portfolios
among different asset classes should help cushion our shareholders from the
extreme effects of short-term market turbulence while giving them access to
long-term opportunities.
*The S&P 500 Index is a capitalization-weighted measure of 500 widely held
common stocks listed on the New York Stock Exchange, American Stock Exchange and
over-the counter market.
RISK REWARDTRADE-OFF
CitiSelect portfolios use a proprietary asset allocation which seeks an
optimal mix of stocks, bonds and cash to help maximize potential return
(without sales charges) for any given level of risk. CitiSelect Folio 200
Conservative+ has the lowest risk level -- and the lowest return.
CitiSelect Folio 300 Balanced scores slightly higher on both counts,
followed by CitiSelect Folio 400 Growth, then CitiSelect Folio 500 Growth
Plus.
[The following table represents a chart in the printed piece.]
CitiSelect CitiSelect CitiSelect Citiselect
Folio 200 Folio 300 Folio 400 Folio 500
---------- ---------- ---------- ----------
Jun-1996 10000 10000 10000
Jun-1996 9569 9569 9491
Jul-1996 9455 9369 9215
Aug-1996 9670 9655 9605 10000
Sep-1996 9857 9889 9880 9719
Oct-1996 9938 9966 9918 9709
Nov-1996 10203 10321 10346 10156
Dec-1996 10159 10277 10340 10184
Jan-1997 10212 10354 10435 10308
Feb-1997 10169 10296 10368 10261
Mar-1997 9984 10074 10120 10032
Apr-1997 10013 10113 10082 9984
May-1997 10430 10643 10770 10756
Jun-1997 10654 10947 11161 11185
Jul-1997 10848 11227 11439 11509
Aug-1997 10789 11111 11305 11366
Sep-1997 11119 11536 11880 11976
Oct-1997 10993 11314 11506 11509
Nov-1997 10974 11304 11449 11471
Dec-1997 10974 11290 11399 11405
Jan-1998 10994 11300 11369 11366
Feb-1998 11335 11780 12039 12164
Mar-1998 11506 12030 12394 12611
Apr-1998 11576 12100 12483 12689
May-1998 11435 11890 12148 12290
Jun-1998 11506 11970 12197 12339
Jul-1998 11295 11650 11724 11765
Aug-1998 10684 10731 10345 9995
Sep-1998 11015 11070 10640 10171
Oct-1998 11305 11470 11192 10803
Nov-1998 11446 11670 11487 11182
Dec-1998 11736 12034 11916 11587
Jan-1999 11725 11990 11786 11390
Feb-1999 11351 11532 11233 10852
Mar-1999 11479 11707 11461 11131
Apr-1999 11714 12045 11970 11752
This graph shows how the performance of each CitiSelect portfolio compares to
the other CitiSelect portfolios over the same period.
+Effective May 3, 1999 CitiSelect Folio 100 Income commenced operations and
therefore has the lowest risk level.
3
<PAGE>
FUND FACTS
MANAGER
Citibank N.A. -- Large Cap Growth Portfolio
-- SmallCap Growth Portfolio
-- Intermediate Income Portfolio
-- Short-Term Portfolio
SUBADVISERS
Franklin Advisory Services, Inc. -- Small Cap Value Portfolio
Hotchkis & Wiley -- International Portfolio
SSBC Fund Management Inc. -- Large Cap Value Portfolio
Salomon Brothers Asset Management Inc. -- Foreign Bond Portfolio
CITISELECT FOLIO 200 CONSERVATIVE
FUND OBJECTIVE
As high a total return over time as is consistent with a primary emphasis on a
combination of fixed income and money market securities, and a secondary
emphasis on equity securities.
COMMENCEMENT OF OPERATIONS DIVIDENDS
June 17, 1996 Paid quarterly, if any
NET ASSETS AS OF 4/30/99 CAPITAL GAINS
$148.3 million Class A Paid annually, if any
$610,972 Class B
CITISELECT FOLIO 300 BALANCED
FUND OBJECTIVE
As high a total return over time as is consistent with a balanced emphasis on
equity and fixed income securities.
COMMENCEMENT OF OPERATIONS DIVIDENDS
June 17, 1996 Paid quarterly, if any
NET ASSETS AS OF 4/30/99 CAPITAL GAINS
$239.4 million Class A Paid annually, if any
$456,994 Class B
CITISELECT FOLIO 400 GROWTH
FUND OBJECTIVE
As high a total return over time as is consistent with a primary emphasis on
equity securities and a secondary emphasis on fixed income securities.
COMMENCEMENT OF OPERATIONS DIVIDENDS
June 17, 1996 Paid annually, if any
NET ASSETS AS OF 4/30/99 CAPITAL GAINS
$265.7 million Class A Paid annually, if any
$622,270 Class B
CITISELECT FOLIO 500 GROWTH PLUS
FUND OBJECTIVE
As high a total return over time as is consistent with a dominant emphasis on
equity securities and a small allocation to fixed income securities.
COMMENCEMENT OF OPERATIONS DIVIDENDS
September 3, 1996 Paid annually, if any
NET ASSETS AS OF 4/30/99 CAPITAL GAINS
$101.9 million Class A Paid annually, if any
$161,862 Class B
4
<PAGE>
PORTFOLIO Highlights
TOP FIVE SECURITIES (STOCKS) (UNAUDITED)
<TABLE>
<CAPTION>
LARGE CAP GROWTH PORTFOLIO
COMPANY INDUSTRY % NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Microsoft Corp. Technology 8.10%
General Electric Co. Producer Manufacturing 6.51%
Wal Mart Stores Inc. Retail 4.14%
Cisco Systems Inc. Technology 4.13%
Procter & Gamble Co. Consumer Non-Durables 3.60%
Large Cap Value Portfolio
LARGE CAP VALUE PORTFOLIO
COMPANY INDUSTRY % NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Enron Corp. Utilities 3.56%
Williams Companies Inc. Utilities 3.47%
Pitney Bowes Inc. Technology 3.45%
Mellon Bank Corp. Finance 3.28%
Masco Corp. Consumer Cyclicals 3.24%
SMALL CAP GROWTH PORTFOLIO
COMPANY INDUSTRY % NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
E Trade Group Inc. Finance 2.12%
Level One Communications Inc. Electronics/Technology Services 1.87%
CMG Information Services Inc. Electronics/Technology Services 1.84%
Catalina Marketing Corp. Commercial Services 1.75%
Cullen Frost Bankers Inc. Finance 1.52%
SMALL CAP VALUE PORTFOLIO
COMPANY INDUSTRY % NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
JLG Industries, Inc. Producer Manufacturing 3.35%
Global Industrial Technologies Inc. Producer Manufacturing 2.89%
Timberland Co. Consumer Non-Durables 2.14%
Timken Co. Producer Manufacturing 2.12%
Rowan Companies Inc. Industrial Services 2.07%
DOMESTIC FIXED INCOME
INTERMEDIATE INCOME PORTFOLIO
INSTRUMENTS % NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Mortgage and Asset Backed Securities 57.00%
Corporate Bonds 32.10%
U.S. Treasury Issues 14.90%
Short Term Obligations 6.20%
Preferred Stock 1.90%
TOP 5 COUNTRIES (INTERNATIONAL ASSET CLASSES)
FOREIGN BOND PORTFOLIO
COUNTRY % NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
United States (excludes short-term) 18.80%
Japan 14.90%
Italy 9.20%
France 9.00%
Sweden 5.00%
International Portfolio
INTERNATIONAL PORTFOLIO
COUNTRY % NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Great Britain 27.30%
France 10.30%
Germany 8.50%
Japan 8.00%
Netherlands 7.80%
5
</TABLE>
<PAGE>
FUND PERFORMANCE CITISELECT FOLIO 200 CONSERVATIVE
TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE
SIX ONE 6/17/96
ALL PERIODS ENDED APRIL 30, 1999 (Unaudited) MONTHS** YEAR INCEPTION*
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CitiSelect(R) Folio 200 Conservative (Class A)
without sales charge 3.62% 1.20% 7.38%
CitiSelect(R)Folio 200 Conservative (Class A)
with a maximum sales charge of 4.50% (1.04)% (3.36)% 5.67%
Composite Benchmark+ (Class A) 6.25% 7.56% 10.46%
CitiSelect(R) Folio 200 Conservative (Class B)
without deferred sales charge -- -- (0.63)%#**
CitiSelect(R) Folio 200 Conservative (Class B)
with a maximum deferred sales charge of 4.50% -- -- (5.11)%#**
Composite Benchmark+ (Class B) -- -- 1.56%**
</TABLE>
*Average Annual Total Return
**Not Annualized
#Commencement of Operations 1/4/99
GROWTH OF A $10,000 INVESTMENT
A $10,000 investment in the Fund made on inception date would have grown to
$11,714 with sales charge (as of 4/30/99). The graph shows how the Fund compares
to its benchmarks over the same period June 17, 1996 to April 30, 1999.
[The following table represents a graph in the printed piece.]
Lehman Bros.
Intermediate Lehman Bros. CitiSelect
Composite Gov't / Corp Aggregate S&P 500 Folio 200
Benchmark+ Bond Index Bond Index Index Conservative
(Class A) (unmanaged) (unmanaged) (unmanaged) (Class A)
--------- ----------- ----------- ---------- ------------
Jun-1996 10000 10000 10000 10000 9550
Jun-1996 10023 10085 10137 10086 9569
Jul-1996 9882 10115 10165 9640 9455
Aug-1996 10026 10123 10147 9844 9670
Sep-1996 10222 10264 10324 10397 9857
Oct-1996 10324 10446 10553 10684 9938
Nov-1996 10592 10584 10734 11490 10203
Dec-1996 10572 10516 10634 11263 10159
Jan-1997 10618 10557 10667 11966 10212
Feb-1997 10588 10577 10693 12060 10169
Mar-1997 10425 10504 10575 11566 9984
Apr-1997 10520 10627 10733 12255 10013
May-1997 10941 10715 10835 13000 10430
Jun-1997 11174 10813 10964 13583 10654
Jul-1997 11403 11032 11260 14662 10848
Aug-1997 11310 10977 11165 13841 10789
Sep-1997 11656 11104 11329 14598 11119
Oct-1997 11572 11228 11493 14111 10993
Nov-1997 11592 11252 11546 14764 10974
Dec-1997 11667 11342 11662 15018 10974
Jan-1998 11749 11491 11812 15183 10994
Feb-1998 12086 11482 11802 16278 11335
Mar-1998 12253 11518 11842 17111 11506
Apr-1998 12366 11576 11904 17286 11576
May-1998 12261 11660 12017 16989 11435
Jun-1998 12364 11735 12119 17678 11506
Jul-1998 12224 11776 12145 17491 11295
Aug-1998 11652 11961 12343 14962 10684
Sep-1998 12119 12261 12631 15921 11015
Oct-1998 12520 12249 12564 17216 11305
Nov-1998 12721 12248 12636 18259 11446
Dec-1998 13063 12297 12674 19311 11736
Jan-1999 13154 12364 12764 20119 11725
Feb-1999 12780 12183 12541 19494 11351
Mar-1999 12966 12274 12610 20273 11479
Apr-1999 13302 12312 12650 21059 11714
The graph includes the initial sales charge on the Fund (no comparable charge
exists for the other indices) and assumes all dividends and distributions from
the Fund are reinvested at Net Asset Value.
Notes: We believe that the performance comparison to the composite benchmark, on
which the Fund's asset allocation model is based, is a more appropriate
comparison than a comparison to any single broad-based securities market index,
such as the S&P 500 Index or the Lehman Brothers Intermediate Gov't/Corp Bond
Index, which securities regulations require us to include. All Fund performance
numbers represent past performance, and are no guarantee of future results. The
Fund's share price and investment return will fluctuate, so that the value of an
investor's shares, when redeemed, may be worth more or less than their original
cost. Total returns include change in share price and reinvestment of dividends
and distributions, if any. Returns reflect certain voluntary fee waivers. If the
waivers were not in place, the Fund's return would have been lower. The maximum
sales charge of 4.50% went into effect on January 4, 1999. Investors may not
invest directly in an index or in the Composite Benchmark.
+The returns are based on the composite performance of unmanaged indices and
assume reinvestment of dividends and interest payments. Indices and percentages
used as of 4/30/99: S&P 500 Index -- Large Cap Stocks (15%); Russell 2000 Index
- -- Small Cap Stocks (15%); Morgan Stanley EAFE Index -- International Stocks
(5%); Lehman Bros. Intermediate Gov't/Corp Bonds -- Domestic Bonds (25%);
Salomon Bros. Non-$ World Gov't -- Foreign Gov't Bonds (20%); Federal Reserve
91-day Treasury Bill -- Cash (20%). Unlike the fund's total return the composite
benchmark total return does not reflect any fees or expenses. Components of the
Composite Benchmark may change at any time.
6
<PAGE>
FUND PERFORMANCE CITISELECT FOLIO 300 BALANCED
TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE
SIX ONE 6/17/96
ALL PERIODS ENDED APRIL 30, 1999 (Unaudited) MONTHS** YEAR INCEPTION*
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CitiSelect(R) Folio 300 Balanced (Class A)
without sales charge 5.01% (0.45)% 8.43%
CitiSelect(R)Folio 300 Balanced (Class A)
with a maximum sales charge of 4.50% 0.29% (4.93)% 6.70%
Composite Benchmark+ (Class A) 8.49% 7.91% 12.14%
CitiSelect(R) Folio 300 Balanced (Class B)
without deferred sales charge -- -- (0.45)%#**
CitiSelect(R) Folio 300 Balanced (Class B)
with a maximum deferred sales charge of 4.50% -- -- (4.93)%#**
Composite Benchmark+ (Class B) -- -- 2.10%**
</TABLE>
*Average Annual Total Return
**Not Annualized
#Commencement of Operations 1/4/99
GROWTH OF A $10,000 INVESTMENT
A $10,000 investment in the Fund made on inception date would have grown to
$12,045 with sales charges (as of 4/30/99). The graph shows how the Fund
compares to its benchmarks over the same period June 17, 1996 to April 30, 1999.
[The following table represents a graph in the printed piece.]
Lehman Bros.
Intermediate Lehman Bros. CitiSelect
Composite Gov't / Corp Aggregate S&P 500 Folio 300
Benchmark+ Bond Index Bond Index Index Balanced
(Class A) (unmanaged) (unmanaged) (unmanaged) (Class A)
--------- ----------- ----------- ---------- ------------
Jun-1996 10000 10000 10000 10000 9550
Jun-1996 10018 10085 10137 10086 9569
Jul-1996 9790 10115 10165 9640 9369
Aug-1996 9966 10123 10147 9844 9655
Sep-1996 10216 10264 10324 10397 9889
Oct-1996 10313 10446 10553 10684 9966
Nov-1996 10654 10584 10734 11490 10321
Dec-1996 10624 10516 10634 11263 10277
Jan-1997 10688 10557 10667 11966 10354
Feb-1997 10651 10577 10693 12060 10296
Mar-1997 10435 10504 10575 11566 10074
Apr-1997 10557 10627 10733 12255 10113
May-1997 11100 10715 10835 13000 10643
Jun-1997 11409 10813 10964 13583 10947
Jul-1997 11716 11032 11260 14662 11227
Aug-1997 11550 10977 11165 13841 11111
Sep-1997 12003 11104 11329 14598 11536
Oct-1997 11815 11228 11493 14111 11314
Nov-1997 11846 11252 11546 14764 11304
Dec-1997 11941 11342 11662 15018 11290
Jan-1998 12042 11491 11812 15183 11300
Feb-1998 12506 11482 11802 16278 11780
Mar-1998 12748 11518 11842 17111 12030
Apr-1998 12873 11576 11904 17286 12100
May-1998 12706 11660 12017 16989 11890
Jun-1998 12836 11735 12119 17678 11970
Jul-1998 12630 11776 12145 17491 11650
Aug-1998 11738 11961 12343 14962 10731
Sep-1998 12268 12261 12631 15921 11070
Oct-1998 12805 12249 12564 17216 11470
Nov-1998 13109 12248 12636 18259 11670
Dec-1998 13556 12297 12674 19311 12034
Jan-1999 13676 12364 12764 20119 11990
Feb-1999 13189 12183 12541 19494 11532
Mar-1999 13436 12274 12610 20273 11707
Apr-1999 13893 12312 12650 21059 12045
The graph includes the initial sales charge on the Fund (no comparable charge
exists for the other indices) and assumes all dividends and distributions from
the Fund are reinvested at Net Asset Value.
Notes: We believe that the performance comparison to the composite benchmark, on
which the Fund's asset allocation model is based, is a more appropriate
comparison than a comparison to any single broad-based securities market index,
such as the S&P 500 Index or the Lehman Brothers Intermediate Gov't/Corp Bond
Index, which securities regulations require us to include. All Fund performance
numbers represent past performance, and are no guarantee of future results. The
Fund's share price and investment return will fluctuate, so that the value of an
investor's shares, when redeemed, may be worth more or less than their original
cost. Total returns include change in share price and reinvestment of dividends
and distributions, if any. Returns reflect certain voluntary fee waivers. If the
waivers were not in place, the Fund's return would have been lower. The maximum
sales charge of 4.50% went into effect on January 4, 1999. Investors may not
invest directly in an index or in the Composite Benchmark.
+The returns are based on the composite performance of unmanaged indices and
assume reinvestment of dividends and interest payments. Indices and percentages
used as of 4/30/99: S&P 500 Index -- Large Cap Stocks (20%); Russell 2000 Index
- -- Small Cap Stocks (20%); Morgan Stanley EAFE Index -- International Stocks
(10%); Lehman Bros. Intermediate Gov't/Corp Bonds -- Domestic Bonds (25%);
Salomon Bros. Non-$ World Gov't -- Foreign Gov't Bonds (20%); Federal Reserve
91-day Treasury Bill -- Cash (5%). Unlike the fund's total return the composite
benchmark total return does not reflect any fees or expenses. Components of the
Composite Benchmark may change at any time.
7
<PAGE>
FUND PERFORMANCE CITISELECT FOLIO 400 GROWTH
TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE
SIX ONE 6/17/96
ALL PERIODS ENDED APRIL 30, 1999 (Unaudited) MONTHS** YEAR INCEPTION*
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CitiSelect(R) Folio 400 Growth (Class A)
without sales charges 6.96% (4.10)% 8.39%
CitiSelect(R)Folio 400 Growth (Class A)
with a maximum sales charge of 5.00% 1.61% (8.90)% 6.47%
Composite Benchmark+ (Class A) 11.53% 6.56% 12.57%
CitiSelect(R) Folio 400 Growth (Class B)
without deferred sales charge -- -- (0.27)%#**
CitiSelect(R) Folio 400 Growth (Class B)
with a maximum deferred sales charge of 4.50% -- -- (5.26)%#**
Composite Benchmark+ (Class B) -- -- 2.78%**
</TABLE>
*Average Annual Total Return
**Not Annualized
#Commencement of Operations 1/4/99
GROWTH OF A $10,000 INVESTMENT
A $10,000 investment in the Fund made on inception date would have grown to
$11,970 with sales charges (as of 4/30/99). The graph shows how the Fund
compares to its benchmarks over the same period June 17, 1996 to April 30, 1999.
[The following table represents a graph in the printed piece.]
Lehman Bros.
Intermediate Lehman Bros. CitiSelect
Composite Gov't / Corp Aggregate S&P 500 Folio 400
Benchmark+ Bond Index Bond Index Index Growth
(Class A) (unmanaged) (unmanaged) (unmanaged) (Class A)
--------- ----------- ----------- ---------- ------------
Jun-1996 10000 10000 10000 10000 9500
Jun-1996 9987 10085 10137 10086 9491
Jul-1996 9637 10115 10165 9640 9215
Aug-1996 9868 10123 10147 9844 9605
Sep-1996 10153 10264 10324 10397 9880
Oct-1996 10187 10446 10553 10684 9918
Nov-1996 10580 10584 10734 11490 10346
Dec-1996 10577 10516 10634 11263 10340
Jan-1997 10618 10557 10667 11966 10435
Feb-1997 10567 10577 10693 12060 10368
Mar-1997 10320 10504 10575 11566 10120
Apr-1997 10424 10627 10733 12255 10082
May-1997 11131 10715 10835 13000 10770
Jun-1997 11529 10813 10964 13583 11161
Jul-1997 11865 11032 11260 14662 11439
Aug-1997 11648 10977 11165 13841 11305
Sep-1997 12228 11104 11329 14598 11880
Oct-1997 11863 11228 11493 14111 11506
Nov-1997 11869 11252 11546 14764 11449
Dec-1997 11976 11342 11662 15018 11399
Jan-1998 12082 11491 11812 15183 11369
Feb-1998 12718 11482 11802 16278 12039
Mar-1998 13048 11518 11842 17111 12394
Apr-1998 13180 11576 11904 17286 12483
May-1998 12913 11660 12017 16989 12148
Jun-1998 13041 11735 12119 17678 12197
Jul-1998 12731 11776 12145 17491 11724
Aug-1998 11388 11961 12343 14962 10345
Sep-1998 11900 12261 12631 15921 10640
Oct-1998 12597 12249 12564 17216 11192
Nov-1998 13026 12248 12636 18259 11487
Dec-1998 13591 12297 12674 19311 11916
Jan-1999 13704 12364 12764 20119 11786
Feb-1999 13122 12183 12541 19494 11233
Mar-1999 13427 12274 12610 20273 11461
Apr-1999 14049 12312 12650 21059 11970
The graph includes the initial sales charge on the Fund (no comparable charge
exists for the other indices) and assumes all dividends and distributions from
the Fund are reinvested at Net Asset Value.
Notes: We believe that the performance comparison to the composite benchmark, on
which the Fund's asset allocation model is based, is a more appropriate
comparison than a comparison to any single broad-based securities market index,
such as the S&P 500 Index or the Lehman Brothers Intermediate Gov't/Corp Bond
Index, which securities regulations require us to include. All Fund performance
numbers represent past performance, and are no guarantee of future results. The
Fund's share price and investment return will fluctuate, so that the value of an
investor's shares, when redeemed, may be worth more or less than their original
cost. Total returns include change in share price and reinvestment of dividends
and distributions, if any. Returns reflect certain voluntary fee waivers. If the
waivers were not in place, the Fund's return would have been lower. The maximum
sales charge of 5.00% went into effect on January 4, 1999. Investors may not
invest directly in an index or in the Composite Benchmark.
+The returns are based on the composite performance of unmanaged indices and
assume reinvestment of dividends and interest payments. Indices and percentages
used as of 4/30/99: S&P 500 Index -- Large Cap Stocks (20%); Russell 2000 Index
- -- Small Cap Stocks (30%); Morgan Stanley EAFE Index -- International Stocks
(20%); Lehman Bros. Intermediate Gov't/Corp Bonds -- Domestic Bonds (5%);
Salomon Bros. Non-$ World Gov't -- Foreign Gov't Bonds (20%); Federal Reserve
91-day Treasury Bill -- Cash (5%). Unlike the fund's total return the composite
benchmark total return does not reflect any fees or expenses. Components of the
Composite Benchmark may change at any time.
8
<PAGE>
FUND PERFORMANCE CITISELECT FOLIO 500 GROWTH PLUS
TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE
SIX ONE 9/3/96
ALL PERIODS ENDED APRIL 30, 1999 (Unaudited) MONTHS** YEAR INCEPTION*
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CitiSelect(R) Folio 500 Growth Plus (Class A)
without sales charge 8.79% (7.38)% 8.34%
CitiSelect(R)Folio 500 Growth Plus (Class A)
with a maximum sales charge of 5.00% 3.35% (12.01)% 6.27%
Composite Benchmark+ (Class A) 14.11% 5.37% 15.26%
CitiSelect(R) Folio 500 Growth Plus (Class B)
without deferred sales charge -- -- 0.53%#**
CitiSelect(R) Folio 500 Growth Plus (Class B)
with deferred sales charge of 5.00% -- -- (4.49)%#**
Composite Benchmark+ (Class B) -- -- 3.61%**
</TABLE>
*Average Annual Total Return
**Not Annualized
#Commencement of Operations 1/4/99
GROWTH OF A $10,000 INVESTMENT
A $10,000 investment in the Fund made on inception date would have grown to
$11,792 with sales charge (as of 4/30/99). The graph shows how the Fund compares
to its benchmarks over the same period September 3, 1996 to April 30, 1999.
[The following table represents a graph in the printed piece.]
CitiSelect
Folio 500
Composite Salomon Non-$ World Growth Plus
Benchmark MSCI EAFE Govt Bond Index (Class A)
--------- ----------- ------------------- ------------
Aug-1996 10000 10000 10000 10000
Sep-1996 10356 10315 10029 9719
Oct-1996 10345 10212 10199 9709
Nov-1996 10787 10621 10316 10156
Dec-1996 10797 10487 10242 10184
Jan-1997 10853 10122 9826 10308
Feb-1997 10817 10290 9712 10261
Mar-1997 10553 10330 9650 10032
Apr-1997 10681 10387 9454 9984
May-1997 11492 11065 9802 10756
Jun-1997 11972 11678 9923 11185
Jul-1997 12388 11869 9664 11509
Aug-1997 12080 10985 9707 11366
Sep-1997 12758 11602 9943 11976
Oct-1997 12216 10714 10166 11509
Nov-1997 12236 10607 9905 11471
Dec-1997 12375 10702 9805 11405
Jan-1998 12516 11194 9872 11366
Feb-1998 13284 11915 10011 12164
Mar-1998 13717 12285 9846 12611
Apr-1998 13838 12384 10063 12689
May-1998 13510 12327 10047 12290
Jun-1998 13657 12423 10010 12339
Jul-1998 13287 12553 10022 11765
Aug-1998 11546 11000 10297 9995
Sep-1998 11985 10665 10972 10171
Oct-1998 12783 11780 11467 10803
Nov-1998 13344 11468 11627 11182
Dec-1998 13976 12059 11955 11587
Jan-1999 14114 12538 11767 11390
Feb-1999 13486 12504 11354 10852
Mar-1999 13840 12209 11488 11131
Apr-1999 14580 12703 11634 11752
The graph includes the initial sales charge on the Fund (no comparable charge
exists for the other indices) and assumes all dividends and distributions from
the Fund are reinvested at Net Asset Value.
Notes: We believe that the performance comparison to the composite benchmark, on
which the Fund's asset allocation model is based, is a more appropriate
comparison than a comparison to any single broad-based securities market index,
such as the Morgan Stanley EAFE Index or the Salomon Bros. Non-$ World Gov't
Index, which securities regulations require us to include. All Fund performance
numbers represent past performance, and are no guarantee of future results. The
Fund's share price and investment return will fluctuate, so that the value of an
investor's shares, when redeemed, may be worth more or less than their original
cost. Total returns include change in share price and reinvestment of dividends
and distributions, if any. Returns reflect certain voluntary fee waivers. If the
waivers were not in place, the Fund's return would have been lower. The maximum
sales charge of 5.00% went into effect on January 4, 1999. Investors may not
invest directly in an index or in the Composite Benchmark.
+The returns are based on the composite performance of unmanaged indices and
assume reinvestment of dividends and interest payments. Indices and percentages
used as of 4/30/99: S&P 500 Index -- Large Cap Stocks (20%); Russell 2000 Index
- -- Small Cap Stocks (35%); Morgan Stanley EAFE Index -- International Stocks
(30%); Salomon Bros. Non-$ World Gov't -- Foreign Gov't Bonds (10%); Federal
Reserve 91-day Treasury Bill -- Cash (5%). Unlike the fund's total return the
composite benchmark total return does not reflect any fees or expenses.
Components of the Composite Benchmark may change at any time.
9
<PAGE>
CITISELECT PORTFOLIOS
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
CITISELECT CITISELECT CITISELECT CITISELECT
FOLIO 200 FOLIO 300 FOLIO 400 FOLIO 500
APRIL 30, 1999 (Unaudited) CONSERVATIVE BALANCED GROWTH GROWTH PLUS
====================================================================================================================================
<S> <C> <C> <C> <C>
ASSETS:
Investment in, at value:
Large Cap Growth Portfolio $ 11,491,424 $ 24,787,280 $ 26,470,640 $ 10,168,319
Large Cap Value Portfolio 13,085,176 26,895,928 29,267,546 10,769,374
Small Cap Growth Portfolio 12,249,169 24,735,567 42,436,572 19,288,786
Small Cap Value Portfolio 11,795,438 24,790,581 43,985,214 20,177,417
International Portfolio 8,831,052 27,260,147 58,694,545 34,510,328
Intermediate Income Portfolio 40,132,329 65,499,031 14,230,240 --
Foreign Bond Portfolio 28,449,192 46,644,112 51,410,812 7,332,633
Short-Term Portfolio 24,489,178 2,835,278 3,019,157 1,054,891
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investments (Note 1) 150,522,958 243,447,924 269,514,726 103,301,748
Receivable for shares of beneficial
interest sold 18,124 8,420 10,949 56,514
Other assets 43,066 155,127 394,011 238,144
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets 150,584,148 243,611,471 269,919,686 103,596,406
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for shares of beneficial interest
repurchased 1,520,250 3,424,235 3,166,699 1,443,488
Payable to affiliates-- Management fees (Note 2) 28,174 31,033 18,524 3,259
Accrued expenses 99,370 332,062 414,299 76,435
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 1,647,794 3,787,330 3,599,522 1,523,182
NET ASSETS $148,936,354 $239,824,141 $266,320,164 $102,073,224
====================================================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $142,349,647 $226,739,555 $253,891,153 $ 97,023,680
Undistributed net investment loss (12,907) (789,308) (3,141,014) (1,362,856)
Accumulated net realized gain (loss)
on investments 439,387 (6,765,709) (14,548,590) (2,202,505)
Unrealized appreciation of investments
and foreign currency transactions 6,160,227 20,639,603 30,118,615 8,614,905
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $148,936,354 $239,824,141 $266,320,164 $102,073,224
====================================================================================================================================
COMPUTATION OF
CLASS A SHARES:
Net Asset Value per share
($148,325,382/13,526,461,
$239,367,147/21,708,913,
$265,697,894/24,064,535,
$101,911,362/8,974,560, respectively) $10.97 $11.03 $11.04 $11.36
Offering price per share based on a 4.50%
sales charges for CitiSelect Folios 200 and 300
and on a 5.00% sales charge on CitiSelect
Folios 400 and 500 ($10.9730.955, $11.0330.955,
$11.0430.950, $11.3630.950, respectively) $11.49* $11.55* $11.62* $11.96*
====================================================================================================================================
CLASS B SHARES:
Net Asset Value per share and offering price
($610,972/55,753, $456,994/41,461,
$622,270/56,475, $161,862/14,274,
shares outstanding, respectively) $10.96** $11.02** $11.02** $11.34**
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Based upon single purchases of less than $25,000.
** Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charges.
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
CITISELECT PORTFOLIOS
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
CITISELECT CITISELECT CITISELECT CITISELECT
FOR THE SIX MONTHS ENDED APRIL 30, 1999 FOLIO 200 FOLIO 300 FOLIO 400 FOLIO 500
(Unaudited) CONSERVATIVE BALANCED GROWTH GROWTH PLUS
====================================================================================================================================
<S> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 6):
Interest $3,243,695 $4,185,985 $2,660,555 $474,560
Dividends* 402,785 999,269 1,640,102 836,631
Allocated net expenses (616,859) (1,114,976) (1,412,832) (584,744)
Foreign tax reclaims 3,376 11,222 24,862 14,637
- ------------------------------------------------------------------------------------------------------------------------------------
3,032,997 4,081,500 2,912,687 741,084
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 2) 209,591 238,383 154,935 30,583
Service fees Class A (Note 3) 457,409 757,318 876,359 345,030
Service fees Class B (Note 3) 1,008 701 1,199 339
Transfer agent fees 28,519 23,402 18,113 4,870
Audit fees 16,843 17,943 16,443 7,943
Custody and fund accounting fees 9,995 9,928 9,942 9,513
Trustees fees 6,873 7,996 12,130 4,810
Registration fees 4,014 -- -- --
Legal services 3,605 28,464 8,685 4,685
Shareholder reports 1,571 55,639 20,134 4,998
Other 18,369 19,198 13,596 3,938
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 757,797 1,158,972 1,131,536 416,709
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 2,275,200 2,922,528 1,781,151 324,375
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) (NOTE 6):
Net realized gain (loss) 1,544,290 2,508,500 1,318,476 (99,747)
Net change in unrealized appreciation 2,721,794 9,311,982 20,068,107 10,994,198
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain 4,266,084 11,820,482 21,386,583 10,894,451
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $6,541,284 $14,743,010 $23,167,734 $11,218,826
====================================================================================================================================
*Net of foreign taxes withheld $ 24,265 $ 58,651 $ 109,680 $ 56,187
See notes to financial statements
11
</TABLE>
<PAGE>
CITISELECT PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CITISELECT FOLIO 200 CITISELECT FOLIO 300
CONSERVATIVE BALANCED
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
APRIL 30, 1999 ENDED APRIL 30, 1999 ENDED
(UNAUDITED) OCTOBER 31, 1998 (UNAUDITED) OCTOBER 31, 1998
====================================================================================================================================
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income $2,275,200 $5,543,132 $2,922,528 $7,523,867
Net realized gain (loss) 1,544,290 3,990,987 2,508,500 9,220,072
Net change in unrealized appreciation
(depreciation) of investments 2,721,794 (4,954,426) 9,311,982 (12,789,550)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 6,541,284 4,579,693 14,743,010 3,954,389
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS FROM:
Net income (6,220,547) (2,765,372) (8,464,759) (4,055,263)
Net realized gain on investments (5,996,539) (2,990,460) (20,082,498) (7,140,789)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from distributions (12,217,086) (5,755,832) (28,547,257) (11,196,052)
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST (NOTE 5):
CLASS A
Net proceeds from sale of shares 12,647,343 156,198,374 8,925,004 155,429,504
Net asset value of shares issued to
shareholders from reinvestment
of distributions 12,211,333 5,752,937 28,547,257 11,196,052
Cost of shares repurchased (77,166,633) (120,664,972) (124,748,946) (144,121,491)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class A (52,307,957) 41,286,339 (87,276,685) 22,504,065
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS B
Net proceeds from sale of shares 632,045 -- 450,126 --
Net asset value of shares issued to
shareholders from reinvestment
of distributions -- -- -- --
Cost of shares repurchased (25,374) -- (106) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class B 606,671 -- 450,020 --
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM TRANSACTIONS
IN SHARES OF BENEFICIAL INTEREST (51,701,286) 41,286,339 (86,826,665) 22,504,065
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS (57,377,088) 40,110,200 (100,630,912) 15,262,402
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 206,313,442 166,203,242 340,455,053 325,192,651
- ------------------------------------------------------------------------------------------------------------------------------------
End of period* $148,936,354 $206,313,442 $239,824,141 $340,455,053
- ------------------------------------------------------------------------------------------------------------------------------------
*Including undistributed
(overdistributed) net
investment income ($12,907) $3,932,440 ($789,308) $4,752,923
====================================================================================================================================
</TABLE>
See notes to financial statements
12
<PAGE>
<TABLE>
<CAPTION>
CITISELECT FOLIO 400 CITISELECT FOLIO 500
GROWTH GROWTH PLUS
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
APRIL 30, 1999 ENDED APRIL 30, 1999 ENDED
(UNAUDITED) OCTOBER 31, 1998 (UNAUDITED) OCTOBER 31, 1998
====================================================================================================================================
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income $1,781,151 $5,864,942 $324,375 $1,443,836
Net realized gain (loss) 1,318,476 11,257,648 (99,747) 5,206,249
Net change in unrealized appreciation
(depreciation) of investments 20,068,107 (30,768,997) 10,994,198 (19,385,626)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 23,167,734 (13,646,407) 11,218,826 (12,735,541)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS FROM:
Net income (7,033,484) (3,075,835) (1,880,597) (1,425,110)
Net realized gain on investments (29,317,452) (9,500,048) (7,715,623) (2,644,180)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from distributions (36,350,936) (12,575,883) (9,596,220) (4,069,290)
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST (NOTE 5):
CLASS A
Net proceeds from sale of shares 7,409,302 156,349,445 2,816,676 69,424,820
Net asset value of shares issued to
shareholders from reinvestment
of distributions 36,350,936 12,574,806 9,596,220 4,068,438
Cost of shares repurchased (175,210,911) (188,099,086) (75,658,819) (95,971,232)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class A (131,450,673) (19,174,835) (63,245,923) (22,477,974)
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS B
Net proceeds from sale of shares 637,082 -- 188,269 --
Net asset value of shares issued to
shareholders from reinvestment
of distributions -- -- -- --
Cost of shares repurchased (32,670) -- (32,096) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class B 604,412 -- 156,173 --
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM TRANSACTIONS
IN SHARES OF BENEFICIAL INTEREST (130,846,261) (19,174,835) (63,089,750) (22,477,974)
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS (144,029,463) (45,397,125) (61,467,144) (39,282,805)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 410,349,627 455,746,752 163,540,368 202,823,173
- ------------------------------------------------------------------------------------------------------------------------------------
End of period* $266,320,164 $410,349,627 $102,073,224 $163,540,368
- ------------------------------------------------------------------------------------------------------------------------------------
*Including undistributed
(overdistributed) net
investment income ($3,141,014) $2,111,319 ($1,362,856) $193,366
====================================================================================================================================
13
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CITISELECT PORTFOLIOS
FINANCIAL HIGHLIGHTS
CITISELECT FOLIO 200 CONSERVATIVE CITISELECT FOLIO 300 BALANCED
CLASS A CLASS A
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR TEN MONTHS JUNE 17, 1996+ ENDED YEAR TEN MONTHS JUNE 17, 1996+
APRIL 30, ENDED ENDED TO APRIL 30, ENDED ENDED TO
1999 OCTOBER 31, OCTOBER 31, DECEMBER 31, 1999 OCTOBER 31, OCTOBER 31, DECEMBER 31,
(UNAUDITED) 1998 (NOTE 1F) 1996 (UNAUDITED) 1998 (NOTE 1F) 1996
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $11.28 $11.33 $10.50 $10.00 $11.48 $11.71 $10.66 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income From
Operations:
Net investment income 0.437 0.240 0.138 0.128 0.101 0.187 0.101 0.088
Net realized and unrealized
gain (loss) on investments (0.038) 0.068++ 0.722 0.506 0.454 (0.036) 0.974 0.671
- ------------------------------------------------------------------------------------------------------------------------------------
Total from operations 0.399 0.308 0.860 0.634 0.555 0.151 1.075 0.759
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income (0.361) (0.172) (0.007) (0.112) (0.298) (0.138) (0.002) (0.075)
Net realized gain
on investments (0.348) (0.186) (0.023) (0.022) (0.707) (0.243) (0.023) (0.024)
In excess of net income -- -- -- -- -- -- -- --
In excess of realized gains
on investments -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total from distributions (0.709) (0.358) (0.030) (0.134) (1.005) (0.381) (0.025) (0.099)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value,
end of period $10.97 $11.28 $11.33 $10.50 $11.03 $11.48 $11.71 $10.66
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted) $148,325 $206,313 $166,203 $102,775 $239,367 $340,455 $325,193 $195,428
Ratio of expenses to
average net assets (A) 1.50%* 1.50% 1.50%* 1.50%* 1.50%* 1.50% 1.50%* 1.50%*
Ratio of net investment
income to average
net assets 2.48%* 2.70% 2.88%* 2.84%* 1.93%* 2.09% 2.30%* 2.38%*
Total return 3.62%* 2.84% 8.21%** 6.38%** 5.01%** 1.38% 10.09%** 7.61%**
Note: If Agents of the Funds and the Agents of respective Portfolios had not
voluntarily agreed to waive a portion of their fees, and the Sub-administrator
not assumed expenses for the periods indicated, the net investment income per
share and the ratios would have been as follows:
Net investment income
per share $0.437 $0.238 $0.126 $0.076 $0.101 $0.187 $0.100 $0.060
RATIOS:
Expenses to average
net assets (A) 1.50%* 1.52% 1.75%* 2.66%* 1.50%* 1.50% 1.52%* 2.26%*
Net investment income to
average net assets 2.48%* 2.68% 2.63%* 1.68%* 1.93%* 2.09% 2.28%* 1.62%*
====================================================================================================================================
</TABLE>
(A) Includes allocated expenses for the periods indicated from the respective
portfolios.
* Annualized
** NOT ANNUALIZED
+ Commencement of Operations
++ The amount shown for a share outstanding does not correspond with the
aggregate net realized and unrealized gain (loss) on investments for the
period ended due to the timing of sales of Fund shares in relation to
fluctuating market value of the investments.
See notes to financial statements
14
<PAGE>
<TABLE>
<CAPTION>
CITISELECT PORTFOLIOS
FINANCIAL HIGHLIGHTS
CITISELECT FOLIO 400 GROWTH CITISELECT FOLIO 500 GROWTH PLUS
CLASS A CLASS A
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR TEN MONTHS JUNE 17, 1996+ ENDED YEAR TEN MONTHS JUNE 17, 1996+
APRIL 30, ENDED ENDED TO APRIL 30, ENDED ENDED TO
1999 OCTOBER 31, OCTOBER 31, DECEMBER 31, 1999 OCTOBER 31, OCTOBER 31, DECEMBER 31,
(UNAUDITED) 1998 (NOTE 1F) 1996 (UNAUDITED) 1998 (NOTE 1F) 1996
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $11.36 $12.01 $10.82 $10.00 $11.11 $12.08 $10.69 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income From
Operations:
Net investment income 0.237 0.090 0.037 0.042 0.144 0.053 0.044 0.019
Net realized and unrealized
gain (loss) on investments 0.518 (0.417) 1.183 0.841 0.396 (0.786) 1.346 0.701
- ------------------------------------------------------------------------------------------------------------------
Total from operations 0.755 (0.327) 1.220 0.883 0.540 (0.733) 1.390 0.720
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income (0.208) (0.079) (0.003) (0.029) (0.136) (0.083) -- (0.019)
Net realized gain
on investments (0.867) (0.244) (0.027) (0.034) (0.154) (0.154) -- --
In excess of net income -- -- -- -- -- -- -- (0.001)
In excess of realized gains
on investments -- -- -- -- -- -- -- (0.010)
- -----------------------------------------------------------------------------------------------------------------------
Total from distributions (1.075) (0.323) (0.030) (0.063) (0.290) (0.237) -- (0.030)
- -----------------------------------------------------------------------------------------------------------------------
Net Asset Value,
end of period $11.04 $11.36 $12.01 $10.82 $11.36 $11.11 $12.08 $10.69
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted) $265,698 $410,350 $455,747 $253,556 $101,911 $163,540 $202,823 $85,072
Ratio of expenses to
average net assets (A) 1.45%* 1.47% 1.65%* 1.75%* 1.45%* 1.48% 1.72%* 1.75%*
Ratio of net investment
income to average
net assets 1.02%* 1.26% 1.39%* 1.39%* 0.47%* 0.72% 0.88%* 1.09%*
Total return 6.96%** (2.73)% 11.28%** 8.84%** 3.81%** (6.14)% 13.00%** 7.20%**
Net investment income
per share $0.237 $0.090 $0.037 $0.028 $0.144 $0.053 $0.040 $0.001
RATIOS:
Expenses to average
net assets (A) 1.45%* 1.47% 1.65%* 2.20%* 1.45%* 1.48% 1.80%* 2.80%*
Net investment income to
average net assets 1.02%* 1.26% 1.39%* 0.93%* 0.47%* 0.72% 0.80%* 0.04%*
====================================================================================================================================
15
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CITISELECT PORTFOLIOS
FINANCIAL HIGHLIGHTS
CITISELECT CITISELECT CITISELECT CITISELECT
FOLIO 200 CONSERVATIVE FOLIO 300 BALANCED FOLIO 400 GROWTH FOLIO 500 GROWTH PLUS
CLASS B CLASS B CLASS B CLASS B
- ------------------------------------------------------------------------------------------------------------------------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 4, 1999 JANUARY 4, 1999 JANUARY 4, 1999 JANUARY 4, 1999
(COMMENCEMENT OF (COMMENCEMENT OF (COMMENCEMENT OF (COMMENCEMENT OF
OPERATIONS) OPERATIONS) OPERATIONS) OPERATIONS)
TO APRIL 30, 1999 TO APRIL 30, 1999 TO APRIL 30, 1999 TO APRIL 30, 1999
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
====================================================================================================================================
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $11.03 $11.07 $11.05 $11.28
- ------------------------------------------------------------------------------------------------------------------------------------
Income From
Operations:
Net investment income 0.057 0.044 0.017 0.008
Net realized and unrealized
gain on investments (0.127) (0.094) (0.047) 0.052
====================================================================================================================================
Total from operations (0.07) (0.05) (0.03) 0.06
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income -- -- -- --
Net realized gain
on investments -- -- -- --
====================================================================================================================================
Total from distributions -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value
end of period $10.96 $11.02 $11.02 $11.34
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted) $611 $457 $622 $162
Ratio of expenses to
average net assets (A) 1.75%* 1.75%* 1.95%* 1.95%*
Ratio of net investment
income to average
net assets 2.38%* 1.94%* 0.78%* 0.35%*
Total return 3.62** 5.01%** 6.96%** 3.81%**
Note: If Agents of the Funds and the Agents of Asset Allocation Portfolios had not voluntarily agreed to waive a portion of their
fees, and the Sub-administrator not assumed expenses for the periods indicated, the net investment income per share and the ratios
would have been as follows:
Net investment income
per share $0.057 $0.044 $0.000 $0.248
RATIOS:
Expenses to average
net assets (A) 1.75%* 1.75%* 1.95%* 1.95%*
Net investment income to
average net assets 1.10%* 0.82%* 0.33%* 0.35%*
====================================================================================================================================
(A) Includes allocated expenses for the periods indicated from the respective portfolios.
* Annualized
** Not Annualized
</TABLE>
See notes to financial statements
16
<PAGE>
CITISELECT PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES CitiSelect Folio 200 Conservative, CitiSelect
Folio 300 Balanced, CitiSelect Folio 400 Growth and CitiSelect Folio 500 Growth
Plus (individually, the "Fund", or collectively, the "Funds") are each a
separate series of CitiFunds Trust I (the "Trust"), a Massachusetts business
trust. The Trust is registered under the Investment Company Act of 1940, as
amended, as an open-end, management investment company. CitiSelect Folio 200
Conservative, CitiSelect Folio 300 Balanced, CitiSelect Folio 400 Growth and
CitiSelect Folio 500 Growth Plus each invest all of their investable assets in
Large Cap Growth Portfolio, Large Cap Value Portfolio, Small Cap Growth
Portfolio, Small Cap Value Portfolio, International Portfolio, Intermediate
Income Portfolio, Foreign Bond Portfolio, and Short-Term Portfolio,
respectively, (the "Portfolios"). All portfolios are registered under the
Investment Company Act of 1940, as amended, are open-end, diversified management
investment companies and have multiple investors. These respective portfolios
are organized as trusts under the laws of the state of New York and are treated
as partnerships for U.S. tax purposes. The Declaration of Trusts permit the
Trustees to issue beneficial interests in the respective Portfolios. The
Investment Adviser of the respective Portfolios is Citibank N.A. ("Citibank").
The financial statements of the Portfolios, including the portfolio of
investments (which are not part of the Funds' financial statements), may be
obtained without charge, and further inquiries about the Portfolios may be made,
by calling 1-800-625-4554.
Citibank, N.A. ("Citibank") is the Investment Manager of each of the
Portfolios and has hired Subadvisers for certain Portfolios. CFBDS, Inc.
("CFBDS") acts as each Fund's Sub-Administrator and Distributor.
The Funds offer Class A and Class B shares. The Funds commenced its public
offering of Class B shares on January 4, 1999. Class A shares have a front-end,
or initial sales charge effective January 4, 1999. This sales charge may be
reduced or eliminated in certain circumstances. Class B shares have no front-end
sales charges, pay a higher ongoing distribution fee than Class A but are
subject to a deferred sales charges if sold within five years of purchase. Class
B shares automatically convert into Class A shares after eight years. Expenses
of the Funds are borne pro-rata by the holders of each class of shares, except
that each class bears expenses unique to that class (including the Rule 12b-1
service and distribution fees applicable to such class), and votes as a class
only with respect to its own Rule 12b-1 plan. Shares of each class would receive
their pro-rata share of the assets of the Funds, if the Funds were liquidated.
Class A shares have lower expenses than Class B shares.
CitiSelect Folio 200 Conservative seeks to achieve its investment objective
of as high a total return over time as is consistent with a primary emphasis on
a combination of fixed income and money market securities, and a secondary
emphasis on equity securities by investing all of its investable assets in the
Portfolios.
CitiSelect Folio 300 Balanced seeks to achieve its investment objective of as
high a total return over time as is consistent with a balanced emphasis on
equity and fixed income securities by investing all of its investable assets in
the Portfolios.
CitiSelect Folio 400 Growth seeks to achieve its investment objective of as
high a total return over time as is consistent with a primary emphasis on equity
securities, and a secondary emphasis on fixed income securities by investing all
of its investable assets in the Portfolios.
CitiSelect Folio 500 Growth Plus seeks to achieve its investment objective of
as high a total return over time as is consistent with a dominant emphasis on
equity securities and a small allocation to fixed income securities by investing
all of its investable assets in the Portfolios.
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
The significant accounting policies consistently followed by the Funds are as
follows:
A. INVESTMENT VALUATION Each Fund's net asset value will fluctuate based on
changes in the values of the underlying portfolios securities. The values of
each Fund's beneficial interest in its Portfolios are determined by multiplying
the net asset value of a Portfolio by a Fund's percentage of the aggregate
beneficial interest in that Portfolio for that day. This proportionate
percentage of interest in a Portfolio, including the effects of the prior day's
contributions and withdrawals, is then applied to determine the value of each
Fund's interest in a Portfolio as of the close of regular trading on the New
York Stock Exchange on each business day.
Each Fund's investments and other assets, including the Fund's interest in
various Portfolios and investments, securities and other assets held by the
respective Portfolios, are valued primarily on the basis of market quotations,
or if market quotations are not available, by a method believed to accurately
reflect fair value. An equity security that is primarily traded on a U.S. or
foreign exchange (including securities traded through the NASDAQ national market
system) is valued at the last sale price on that exchange or, if there were no
sales during the day (or for unlisted securities not reported on the NASDAQ
system), at the quoted bid price. Securities quoted in foreign currencies are
translated into U.S. dollars at the current exchange rate. Bonds, foreign bonds
and other fixed income securities (other than short term securities maturing in
sixty days or less) are valued on the basis of valuations furnished by pricing
services authorized by the Board of Trustees, which utilize market quotations
and transactions, quotations from dealers and various relationships among
securities in determining value. Short-term obligations (maturing in 60 days or
less) are valued at amortized cost. Other assets and securities for
17
<PAGE>
which no quotations are readily available are valued at fair value as determined
in good faith by or under guidelines established by the Trustees.
B. INVESTMENT INCOME Each Fund earns income, net of Portfolio expenses, daily
based on its investment in each Portfolio. Additionally, each Fund reclaims its
pro rata portion of recoverable foreign taxes.
C. FEDERAL TAXES The Funds' policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders all of its taxable income, including any net realized
gain on investment transactions. Accordingly, no provision for federal income or
excise tax is necessary.
D. EXPENSES Each Fund bears all costs of its operations other than expenses
specifically assumed by Citibank and CFBDS. Expenses incurred by the Trust with
respect to any two or more funds or series are allocated in proportion to the
average net assets of each fund, except when allocations of direct expenses to
each fund can otherwise be made fairly. Expenses directly attributable to a fund
are charged to that fund. A fund's share of the Portfolio's expenses are charged
against and reduce the amount of the Fund's investment in that Portfolio.
E. DISTRIBUTIONS Distributions to shareholders are recorded on the
ex-dividend date. The amount and character of income and net realized gains to
be distributed are determined in accordance with income tax rules and
regulations, which may differ from generally accepted accounting principles.
These differences are attributable to permanent book and tax accounting
differences. Reclassifications are made to each Fund's capital accounts to
reflect income and net realized gains available for distribution (or available
capital loss carryovers) under income tax rules and regulations.
F. CHANGE IN FISCAL YEAR END During the fiscal year 1997, the Funds changed
their fiscal year ends from December 31 to October 31.
G. OTHER All the realized and unrealized gain and loss of the Portfolios are
allocated pro rata, based on respective ownership interests, among the Funds and
the other investors in each Portfolio at the time of such determination.
2. MANAGEMENT FEES Citibank is responsible for overall management of each Fund's
business affairs, and has a separate Management Agreement with each of the
Funds. Citibank also provides certain administrative services to the Funds.
These administrative services include providing general office facilities and
supervising the overall administration of the Funds. CFBDS acts as
Sub-Administrator and performs certain duties and receives compensation from
Citibank from time to time as agreed to by Citibank and CFBDS. Citibank is a
wholly-owned subsidiary of Citicorp, which in turn, is a wholly-owned subsidiary
of Citigroup Inc. Citigroup Inc. was formed as a result of the merger of
Citicorp and Travelers Group, Inc. which was completed on October 8, 1998.
For the services of Citibank under the Management Agreements which covers the
Funds and respective Portfolios and the services of the Subadvisers, the Funds
and respective Portfolios pay an aggregate fee, which is accrued daily and paid
monthly, of 0.75% of the average daily net assets on an annualized basis for the
current fiscal year. Citibank may voluntarily agree to waive a portion of its
management fee from any Fund.
The management fees paid to Citibank for CitiSelect Folio 200 Conservative,
CitiSelect Folio 300 Balanced, CitiSelect Folio 400 Growth and CitiSelect Folio
500 Growth Plus amounted to $209,591, $238,383, $154,935 and $30,583,
respectively, for the six months ended April 30, 1999.
The Trust pays no compensation directly to any Trustee or any other officer
who is affiliated with the Sub-Administrator, all of whom receive remuneration
for their services to the Trust from the Sub-Administrator or its affiliates.
3. SERVICE FEES The Funds maintain separate Service Plans for Class A and Class
B shares, which have been adopted in accordance with Plan Rule 12b-1 under the
Investment Company Act of 1940, as amended. Under the Class A Service Plan, the
Funds may pay monthly fees at an annual rate not to exceed 0.50% of the average
daily net assets represented by Class A shares of the Funds. TheService fees for
Class A shares for CitiSelect Folio 200 Conservative, CitiSelectFolio 300
Balanced, CitiSelect Folio 400 Growth and CitiSelect Folio 500 Growth Plus
amounted to $457,409, $757,318, $876,359 and $345,030, respectively. Under the
Class B Service Plan, the Funds may pay a combined monthly distribution and
service fee at an annual rate not to exceed 0.75% of the average daily net
assets represented by Class B shares of CitiSelect Folios 200 Conservative and
300 Balanced and 1.00% of the average daily net assets represented by Class B
shares of CitiSelect Folio 400 Growth and CitiSelect Folio 500 Growth Plus.
TheService fees for Class B shares for CitiSelect Folio 200 Conservative,
CitiSelectFolio 300 Balanced, CitiSelect Folio 400 Growth and CitiSelect Folio
500 Growth Plus amounted to $1,008, $701, $1,199 and $339, respectively. These
fees may be used to make payments to the Distributor for distribution services
and to others as compensation for the sale of shares of the applicable class of
the Funds, for advertising, marketing or other promotional activity, and for
preparation, printing and distribution of prospectuses, statements of additional
information and reports for recipients other than regulators and existing
shareholders. The Funds also may make payments to the Distributor and others for
providing personal service or the maintenance of shareholder accounts.
18
<PAGE>
CITISELECT PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
4. INVESTMENT TRANSACTIONS Contributions and withdrawals in the Funds'
investment in the Portfolios for the six months ended April 30, 1999, were as
follows:
CONTRIBUTIONS WITHDRAWALS
- --------------------------------------------------------------------------------
CitiSelect Folio 200 Conservative $14,270,527 $ 77,817,955
CitiSelect Folio 300 Balanced $13,553,170 $127,530,665
CitiSelect Folio 400 Growth $11,110,411 $177,373,493
CitiSelect Folio 500 Growth Plus $ 7,115,545 $ 78,960,743
5. Shares of Beneficial Interest The Declaration of Trust permits the Trustees
to issue an unlimited number of full and fractional shares of beneficial
interest (without par value). Transactions in shares of beneficial interest were
as follows:
CITISELECT FOLIO 200 CONSERVATIVE
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR
APRIL 30, 1999 ENDED
(Unaudited) OCTOBER 31, 1998
================================================================================
CLASS A
Shares sold 1,130,951 13,850,585
Shares reinvested 1,127,547 529,249
Shares repurchased (7,019,736) (10,763,390)
- --------------------------------------------------------------------------------
Net increase (decrease) (4,761,238) 3,616,444
================================================================================
PERIOD
ENDED YEAR
APRIL 30, 1999 ENDED
(Unaudited) OCTOBER 31, 1998
- --------------------------------------------------------------------------------
CLASS B
Shares sold 58,111 --
Shares reinvested -- --
Shares repurchased (2,358) --
- --------------------------------------------------------------------------------
Net increase 55,753 --
================================================================================
CITISELECT FOLIO 300 BALANCED
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR
APRIL 30, 1999 ENDED
(Unaudited) OCTOBER 31, 1998
================================================================================
CLASS A
Shares sold 791,771 13,293,751
Shares reinvested 2,640,818 1,002,332
Shares repurchased (11,378,408) (12,417,139)
- --------------------------------------------------------------------------------
Net increase (decrease) (7,945,819) 1,878,944
================================================================================
PERIOD
ENDED YEAR
APRIL 30, 1999 ENDED
(Unaudited) OCTOBER 31, 1998
================================================================================
CLASS B
Shares sold 41,471 --
Shares reinvested -- --
Shares repurchased (10) --
- --------------------------------------------------------------------------------
Net increase 41,461 --
================================================================================
19
<PAGE>
CITISELECT PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
CITISELECT FOLIO 400 GROWTH
SIX MONTHS
ENDED YEAR
APRIL 30, 1999 ENDED
(Unaudited) OCTOBER 31, 1998
================================================================================
CLASS A
Shares sold 661,403 13,008,116
Shares reinvested 3,400,461 1,103,053
Shares repurchased (16,116,639) (15,946,902)
- --------------------------------------------------------------------------------
Net increase (decrease) (12,054,775) (1,835,733)
================================================================================
Period
Ended Year
April 30, 1999 Ended
(Unaudited) October 31, 1998
================================================================================
Class B
Shares sold 59,559 --
Shares reinvested -- --
Shares repurchased (3,084) --
- --------------------------------------------------------------------------------
Net increase 56,475 --
================================================================================
CITISELECT FOLIO 500 GROWTH PLUS
SIX MONTHS
ENDED YEAR
APRIL 30, 1999 ENDED
(Unaudited) OCTOBER 31, 1998
================================================================================
CLASS A
Shares sold 250,287 5,673,025
Shares reinvested 884,444 353,470
Shares repurchased (6,876,281) (8,094,784)
- --------------------------------------------------------------------------------
Net increase (decrease) (5,741,550) (2,068,289)
================================================================================
PERIOD
ENDED YEAR
APRIL 30, 1999 ENDED
(Unaudited) OCTOBER 31, 1998
================================================================================
CLASS B
Shares sold 17,246 --
Shares reinvested -- --
Shares repurchased (2,972) --
- --------------------------------------------------------------------------------
Net increase (decrease) 14,274 --
================================================================================
6. Pertinent details as to various amounts allocated from each Portfolio to
CitiSelect Folio 200 Conservative for the six months ended April 30, 1999 are
noted below. With respect to the Portfolios, investment transactions are
accounted for on the trade date basis and realized gains and losses are
determined on the identified cost basis.
<TABLE>
<CAPTION>
PORTFOLIO
INTEREST DIVIDENDS EXPENSES
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Large Cap Growth Portfolio $ 10,472 $ 41,074 $ (48,093)
Large Cap Value Portfolio 4,387 145,018 (53,045)
Small Cap Growth Portfolio 6,173 12,819 (60,079)
Small Cap Value Portfolio 5,197 65,343 (53,039)
International Portfolio 712 107,267 (48,320)
Intermediate Income Portfolio 1,413,699 31,264 (137,605)
Foreign Bond Portfolio 907,530 -- (140,177)
Short-Term Portfolio 895,525 -- (76,501)
- ------------------------------------------------------------------------------------------------------------------------------------
Total $ 3,243,695 $ 402,785 $(616,859)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
CITISELECT PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
<TABLE>
<CAPTION>
PERCENTAGE
REALIZED UNREALIZED OF OWNERSHIP
GAIN (LOSS) GAIN (LOSS) OF THE PORTFOLIO
====================================================================================================================================
<S> <C> <C> <C>
Large Cap Growth Portfolio $ 1,013,553 $ 1,582,962 1.5%
Large Cap Value Portfolio (867,603) 2,136,837 13.4%
Small Cap Growth Portfolio 729,403 391,063 8.3%
Small Cap Value Portfolio (1,846,461) 2,057,817 8.4%
International Portfolio 329,266 938,276 5.4%
Intermediate Income Portfolio 758,207 (1,698,229) 26.2%
Foreign Bond Portfolio 1,426,665 (2,648,350) 17.8%
Short-Term Portfolio 1,260 (38,582) 58.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Total $ 1,544,290 $ 2,721,794
====================================================================================================================================
Pertinent details as to various amounts allocated from each Portfolio to
CitiSelect Folio 300 Balanced for the six months ended April 30, 1999 are
included below. With respect to the Portfolios, investment transactions are
accounted for on the trade date basis and realized gains and losses are
determined on the identified cost basis.
PORTFOLIO
INTEREST DIVIDENDS EXPENSES
====================================================================================================================================
Large Cap Growth Portfolio $ 23,054 $ 90,869 $ (106,094)
Large Cap Value Portfolio 10,210 331,973 (120,622)
Small Cap Growth Portfolio 13,784 28,335 (132,394)
Small Cap Value Portfolio 11,260 141,377 (114,844)
International Portfolio 2,267 355,215 (154,243)
Intermediate Income Portfolio 2,345,765 51,500 (228,427)
Foreign Bond Portfolio 1,530,794 -- (236,763)
Short-Term Portfolio 248,851 -- (21,589)
- ------------------------------------------------------------------------------------------------------------------------------------
Total $4,185,985 $ 999,269 $(1,114,976)
====================================================================================================================================
PERCENTAGE
REALIZED UNREALIZED OF OWNERSHIP
GAIN (LOSS) GAIN (LOSS) OF THE PORTFOLIO
====================================================================================================================================
Large Cap Growth Portfolio $2,271,142 $ 3,499,761 3.3%
Large Cap Value Portfolio (2,358,096) 4,938,505 28.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Portfolio 1,614,941 978,322 16.7%
Small Cap Value Portfolio (3,935,545) 4,385,210 17.7%
International Portfolio 1,075,879 2,862,744 16.8%
Intermediate Income Portfolio 1,258,678 (2,828,394) 42.7%
Foreign Bond Portfolio 2,581,214 (4,512,932) 29.1%
Short-Term Portfolio 287 (11,234) 6.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Total $2,508,500 $ 9,311,982
====================================================================================================================================
Pertinent details as to various amounts allocated from each Portfolio to CitiSelect Folio 400 Growth for the six months ended April
30, 1999 are noted below. With respect to the Portfolios, investment transactions are accounted for on the trade date basis and
realized gains and losses are determined on the identified cost basis.
PORTFOLIO
INTEREST DIVIDENDS EXPENSES
====================================================================================================================================
Large Cap Growth Portfolio $ 26,565 $ 104,132 $ (121,380)
Large Cap Value Portfolio 12,063 384,076 (139,678)
Small Cap Growth Portfolio 25,101 49,936 (231,697)
Small Cap Value Portfolio 21,171 270,271 (217,753)
International Portfolio 5,396 819,258 (355,373)
Intermediate Income Portfolio 564,252 12,429 (55,032)
Foreign Bond Portfolio 1,732,840 -- (268,255)
Short-Term Portfolio 273,167 -- (23,664)
- ------------------------------------------------------------------------------------------------------------------------------------
Total $2,660,555 $ 1,640,102 $(1,412,832)
====================================================================================================================================
</TABLE>
21
<PAGE>
CITISELECT PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
PERCENTAGE
REALIZED UNREALIZED OF OWNERSHIP
GAIN (LOSS) GAIN (LOSS) OF THE PORTFOLIO
====================================================================================================================================
<S> <C> <C> <C>
Large Cap Growth Portfolio $2,584,303 $ 4,366,052 3.5%
Large Cap Value Portfolio (2,770,984) 5,778,502 30.7%
Small Cap Growth Portfolio 2,735,147 2,099,947 28.6%
Small Cap Value Portfolio (7,168,472) 7,552,026 31.4%
International Portfolio 2,496,939 6,208,898 36.2%
Intermediate Income Portfolio 303,457 (682,256) 9.3%
Foreign Bond Portfolio 3,138,086 (5,242,747) 32.1%
Short-Term Portfolio -- (12,315) 7.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Total $1,318,476 $ 20,068,107
====================================================================================================================================
Pertinent details as to various amounts allocated from each Portfolio to CitiSelect Folio 500 Growth Plus for the six months ended
April 30, 1999 are noted below. With respect to the Portfolios, investment transactions are accounted for on the trade date basis
and realized gains and losses are determined on the identified cost basis.
PORTFOLIO
INTEREST DIVIDENDS EXPENSES
====================================================================================================================================
Large Cap Growth Portfolio $ 9,984 $ 38,935 $ (45,389)
Large Cap Value Portfolio 4,856 153,134 (55,657)
Small Cap Growth Portfolio 11,834 23,375 (107,053)
Small Cap Value Portfolio 10,012 127,689 (102,884)
International Portfolio 3,264 493,498 (213,344)
Intermediate Income Portfolio -- -- --
Foreign Bond Portfolio 333,953 -- (51,654)
Short-Term Portfolio 100,657 -- (8,763)
- ------------------------------------------------------------------------------------------------------------------------------------
Total $ 474,560 $ 836,631 $(584,744)
====================================================================================================================================
PERCENTAGE
REALIZED UNREALIZED OF OWNERSHIP
GAIN (LOSS) GAIN (LOSS) OF THE PORTFOLIO
====================================================================================================================================
Large Cap Growth Portfolio $ 960,209 $ 1,744,560 1.4%
Large Cap Value Portfolio (1,111,955) 2,276,409 11.8%
Small Cap Growth Portfolio 1,234,246 1,081,781 13.0%
Small Cap Value Portfolio (3,292,860) 3,388,180 14.1%
International Portfolio 1,488,079 3,572,438 21.3%
Intermediate Income Portfolio -- -- 0.0%
Foreign Bond Portfolio 622,398 (1,064,976) 4.9%
Short-Term Portfolio 136 (4,194) 2.5%
Total $ (99,747) $10,994,198
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
7. The following are a details table pertaining to the shareholder vote by proposals:
CITISELECT FOLIO 200 CONSERVATIVE CITISELECT FOLIO 300 BALANCED
====================================================================================================================================
FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN
--- ------- ------- --- ------- -------
<S> <C> <C> <C> <C> <C> <C>
1. An agreement between Mutual
Management Corp. & Asset Allocation
Portfolios 10,362,581 183,878 1,110,603 17,931,000 881,646 2,106,789
2. An agreement between Salomon
Brothers Asset Management Limited & Asset
Allocation Portfolios 10,343,625 244,154 1,069,285 17,889,301 969,541 2,060,592
3. To vote on the transfer of assets to U.S.
Fixed Income Portfolio 10,313,630 207,325 1,136,108 17,721,181 889,564 2,308,691
4. To vote on the the selection of
PricewaterhouseCoopers LLP as the
independent accountants 10,656,370 81,774 918,918 18,324,021 737,000 1,858,414
====================================================================================================================================
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
CITISELECT FOLIO 400 GROWTH CITISELECT FOLIO 500 GROWTH PLUS
====================================================================================================================================
FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN
--- ------- ------- --- ------- -------
<S> <C> <C> <C> <C> <C> <C>
1. An agreement between Mutual
Management Corp. & Asset Allocation
Portfolios 17,679,043 767,131 2,215,644 6,957,554 384,068 818,644
2. An agreement between Salomon
Brothers Asset Management Limited & Asset
Allocation Portfolios 17,788,642 629,114 2,244,062 6,990,356 414,396 755,514
3. To vote on the transfer of assets to U.S.
Fixed Income Portfolio 17,681,998 663,543 2,316,277 6,927,455 405,100 827,711
4. To vote on the the selection of
PricewaterhouseCoopers LLP as the
independent accountants 18,395,008 442,735 1,824,074 7,178,357 247,390 734,519
====================================================================================================================================
</TABLE>
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE>
TRUSTEES AND OFFICERS
C. Oscar Morong, Jr., CHAIRMAN
Philip W. Coolidge*, PRESIDENT
Riley C. Gilley
Diana R. Harrington
Susan B. Kerley
Heath B. McLendon**
E. Kirby Warren
William S. Woods, Jr.
SECRETARY
Linda T. Gibson*
TREASURER
John R. Elder*
*AFFILIATED PERSON OF SUB-ADMINISTRATOR AND DISTRIBUTOR
**AFFILIATED PERSON OF INVESTMENT MANAGER
INVESTMENT MANAGER
Citibank, N.A.
153 East 53rd Street, New York, NY 10043
DISTRIBUTOR
CFBDS, Inc.
21 Milk Street, 5th floor
Boston, MA 02109
TRANSFER AGENT AND CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street, Boston, MA 02110
AUDITORS
PricewaterhouseCoopers LLP
160 Federal Street, Boston, MA 02110
LEGAL COUNSEL
Bingham Dana LLP
150 Federal Street, Boston, MA 02110
This report is prepared for the information of shareholders.
It is authorized for distribution to prospective investors only
when preceded or accompanied by an effective prospectus.
(C) 1999 Citicorp [LOGO] Printed on recycled paper CSS/499
