FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
OR ( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended September 30, 1998
Commission File Number 0-21588
SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
(Exact name of registrant as specified in its charter)
New York 13-3616914
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o Smith Barney Futures Management Inc.
390 Greenwich St. - 1st. Fl.
New York, New York 10013
(Address and Zip Code of principal executive offices)
(212) 723-5424
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
<PAGE>
SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
FORM 10-Q
INDEX
Page
Number
PART I - Financial Information:
Item 1. Financial Statements:
Statement of Financial Condition at
September 30, 1998 and December 31,
1997 3
Statement of Income and Expenses
and Partners' Capital for the three
and nine months ended September 30,
1998 and 1997 4
Notes to Financial Statements 5 - 8
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations 9 - 11
Item 3. Quantitative and Qualitative Disclosures
of Market Risk 12
PART II - Other Information 13 - 14
2
<PAGE>
PART I
Item 1. Financial Statements
SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
STATEMENT OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
SEPTEMBER 30, CEMBER 31,
1998 1997
------------ -----------
(Unaudited)
<S> <C> <C>
ASSETS:
Equity in commodity futures trading account:
Cash and cash equivalents $3,393,468 $3,143,740
Net unrealized appreciation
on open futures contracts 124,870 462,188
---------- ----------
3,518,338 3,605,928
Interest receivable 10,804 11,501
---------- ----------
$3,529,142 $3,617,429
========== ==========
LIABILITIES AND PARTNERS' CAPITAL:
Liabilities:
Accrued expenses:
Commissions $ 20,461 $ 21,027
Incentive fees 19,100 54,882
Other 21,567 27,954
Redemptions payable 86,700 19,439
Commodity options written, at market value
(premiums received $16,800 in 1997) -- 12,775
---------- ----------
Partners' Capital: 147,828 136,077
---------- ----------
General Partner, 8,000.2096 Unit equivalents
outstanding in 1998 and 1997 115,603 108,162
Limited Partners, 226,051.7165 and
249,401.2878 Units of Limited Partnership
Interest outstanding in 1998 and 1997,
respectively 3,265,711 3,373,190
---------- ----------
3,381,314 3,481,352
---------- ----------
$3,529,142 $3,617,429
========== ==========
</TABLE>
See Notes to Financial Statements.
3
<PAGE>
SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
STATEMENT OF INCOME AND EXPENSES AND PARTNERS' CAPITAL
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEMPTEMBER 30, SEPTEMBER 30,
------------- ------------ ------------ ------------
1998 1997 1998 1997
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Income:
Net gains (losses) on trading of commodity
futures:
Realized gains on closed positions $ 273,094 $ 220,937 $ 715,273 $ 290,916
Change in unrealized gains/losses on open
positions (91,005) 100,198 (341,343) (837)
----------- ----------- ----------- -----------
182,089 321,135 373,930 290,079
Less, brokerage commissions and clearing fees
($32, $0, $37 and $0, respectively) (62,287) (57,562) (186,716) (178,656)
----------- ----------- ----------- -----------
Net realized and unrealized gains 119,802 263,573 187,214 111,423
Interest income 34,011 34,110 105,171 107,420
----------- ----------- ----------- -----------
153,813 297,683 292,385 218,843
----------- ----------- ----------- -----------
Expenses:
Incentive fees 19,100 41,654 33,083 88,240
Other 9,084 6,678 28,217 30,852
----------- ----------- ----------- -----------
28,184 48,332 61,300 119,092
----------- ----------- ----------- -----------
Net income 125,629 249,351 231,085 99,751
Redemptions (123,383) (111,275) (331,123) (369,280)
----------- ----------- ----------- -----------
Net increase (decrease) in Partners' capital 2,246 138,076 (100,038) (269,529)
Partners' capital, beginning of period 3,379,068 2,951,371 3,481,352 3,358,976
----------- ----------- ----------- -----------
Partners' capital, end of period $ 3,381,314 $ 3,089,447 $ 3,381,314 $ 3,089,447
----------- ----------- ----------- -----------
Net asset value per Unit
(234,051.9261 and 262,626.9097 Units outstanding
at September 30, 1998 and 1997, respectively) $ 14.45 $ 11.76 $ 14.45 $ 11.76
----------- ----------- ----------- -----------
Net income per Unit of Limited Partnership
Interest and General Partner Unit equivalent $ 0.52 $ 0.91 $ 0.93 $ 0.35
----------- ----------- ----------- -----------
</TABLE>
See Notes to Financial Statements
4
<PAGE>
SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
(Unaudited)
1. General:
Smith Barney International Advisors Currency Fund L.P., (the
"Partnership") is a limited partnership which was organized on May 29, 1991
under the partnership laws of the State of New York to engage in the speculative
trading of a diversified portfolio of commodity interests, including futures
contracts, options and forward contracts. The commodity interests that are
traded by the Partnership are volatile and involve a high degree of market risk.
The Partnership commenced trading operations on March 12, 1992.
Smith Barney Futures Management Inc. acts as the general partner (the
"General Partner") of the Partnership. On September 1, 1998, the Partnership's
commodity broker, Smith Barney Inc., merged with Salomon Brothers Inc and
changed its name to Salomon Smith Barney Inc. ("SSB"). SSB is an affiliate of
the General Partner. The General Partner is wholly owned by Salomon Smith Barney
Holdings Inc. ("SSBH"), which is the sole owner of SSB. SSBH is a wholly owned
subsidiary of Travelers Group Inc. All trading decisions for the Partnership are
made by Friedberg Commodity Management Inc. and Trendview Capital Management
(collectively, the "Advisors"). (see Note 5)
The accompanying financial statements are unaudited but, in the
opinion of management, include all adjustments (consisting only of normal
recurring adjustments) necessary for a fair presentation of the Partnership's
financial condition at September 30, 1998 and the results of its operations for
the three and nine months ended September 30, 1998 and 1997. These financial
statements present the results of interim periods and do not include all
disclosures normally provided in annual financial statements. It is suggested
that these financial statements be read in conjunction with the financial
statements and notes included in the Partnership's annual report on Form 10-K
filed with the Securities and Exchange Commission for the year ended December
31, 1997.
Due to the nature of commodity trading, the results of operations for
the interim periods presented should not be considered indicative of the results
that may be expected for the entire year.
5
<PAGE>
Smith Barney International Advisors Currency Fund L.P.
Notes to Financial Statements
September 30, 1998
(continued)
2. Net Asset Value Per Unit:
Changes in net asset value per Unit for the three and nine months ended
September 30, 1998 and 1997 were as follows:
THREE-MONTHS ENDED NINE-MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1998 1997 1998 1997
Net realized and unrealized
gains $ 0.50 $ 0.97 $ 0.75 $0.39
Interest income 0.15 0.13 0.44 0.38
Expenses (0.13) (0.19) (0.26) (0.42)
------ ------ ------ ------
Increase for period 0.52 .91 0.93 .35
Net Asset Value per Unit,
beginning of period 13.93 10.85 13.52 11.41
------ ------ ------ ------
Net Asset Value per Unit,
end of period $14.45 $11.76 $14.45 $11.76
====== ====== ====== ======
3. Trading Activities:
The Partnership was formed for the purpose of trading contracts in a
variety of commodity interests, including derivative financial instruments and
derivative commodity instruments. The results of the Partnership's trading
activity are shown in the statement of income and expenses.
The Customer Agreement between the Partnership and SSB gives the
Partnership the legal right to net unrealized gains and losses.
All of the commodity interests owned by the Partnership are held for
trading purposes. The fair value of these commodity interests, including options
thereon, at September 30, 1998 and December 31, 1997 was $124,870 and $449,413,
respectively, and the average fair value during the nine and twelve months then
ended, based on monthly calculation, was $205,142 and $93,357, respectively.
4. Financial Instrument Risk:
The Partnership is party to financial instruments with off- balance
sheet risk, including derivative financial instruments and derivative commodity
instruments, in the normal course of its business. These financial instruments
include forwards, futures and options, whose value is based upon an underlying
asset, index, or
6
<PAGE>
reference rate, and generally represent future commitments to exchange
currencies or cash flows, to purchase or sell other financial instruments at
specific terms at specified future dates, or, in the case of derivative
commodity instruments, to have a reasonable possibility to be settled in cash or
with another financial instrument. These instruments may be traded on an
exchange or over-the-counter ("OTC"). Exchange traded instruments are
standardized and include futures and certain option contracts. OTC contracts are
negotiated between contracting parties and include forwards and certain options.
Each of these instruments is subject to various risks similar to those related
to the underlying financial instruments including market and credit risk. In
general, the risks associated with OTC contracts are greater than those
associated with exchange traded instruments because of the greater risk of
default by the counterparty to an OTC contract.
Market risk is the potential for changes in the value of the financial
instruments traded by the Partnership due to market changes, including interest
and foreign exchange rate movements and fluctuations in commodity or security
prices. Market risk is directly impacted by the volatility and liquidity in the
markets in which the related underlying assets are traded.
Credit risk is the possibility that a loss may occur due to the failure
of a counterparty to perform according to the terms of a contract. Credit risk
with respect to exchange traded instruments is reduced to the extent that an
exchange or clearing organization acts as a counterparty to the transactions.
The Partnership's risk of loss in the event of counterparty default is typically
limited to the amounts recognized in the statement of financial condition and
not represented by the contract or notional amounts of the instruments. The
Partnership has concentration risk because the sole counterparty or broker with
respect to the Partnership's assets is SSB.
The Partnership engages in the trading of forward contracts in foreign
currencies. In this connection, the Partnership contracts with SSB as the
counterparty to take future delivery of a particular foreign currency. In a
forward transaction, cash settlement does not occur until the agreed upon value
date of the transaction. The Partnership's credit risk in the event of
counterparty default is typically limited to the amounts recognized in the
statement of financial condition and not represented by the contract or notional
amounts of the instruments.
The General Partner monitors and controls the Partnership's risk
exposure on a daily basis through financial, credit and risk management
monitoring systems and, accordingly believes that it has effective procedures
for evaluating and limiting the credit and market risks to which the Partnership
is subject. These monitoring systems allow the General Partner to statistically
analyze actual
7
<PAGE>
trading results with risk adjusted performance indicators and correlation
statistics. In addition, on-line monitoring systems provide account analysis of
futures, forwards and options positions by sector, margin requirements, gain and
loss transactions and collateral positions.
The notional or contractual amounts of these instruments, while not
recorded in the financial statements, reflect the extent of the Partnership's
involvement in these instruments. At September 30, 1998, the notional or
contractual amounts of the Partnership's commitment to purchase and sell these
instruments was $17,055,826 and $14,431,978, respectively, as detailed below.
All of these instruments mature within one year of September 30, 1998. However,
due to the nature of the Partnership's business, these instruments may not be
held to maturity. At September 30, 1998, the fair value of the Partnership's
derivatives, including options thereon, was $124,870, as detailed below.
SEPTEMBER 30, 1998
NOTIONAL OR CONTRACTUAL
AMOUNT OF COMMITMENTS
TO PURCHASE TO SELL FAIR VALUE
Currencies:
- - OTC Contracts $17,055,826 $14,192,978 $ 110,870
- - Exchange Traded Contract -- 539,000 14,000
----------- ----------- -----------
Totals $17,055,826 $14,731,978 $ 124,870
=========== =========== ===========
At December 31, 1997, the notional or contractual amounts of the
Partnership's commitment to purchase and sell these instruments was $8,492,956
and $16,663,901, respectively, and the fair value of the Partnership's
derivatives, including options thereon, was $449,413 as detailed below.
DECEMBER 31, 1997
NOTIONAL OR CONTRACTUAL
AMOUNT OF COMMITMENTS
TO PURCHASE TO SELL FAIR VALUE
Currencies:
- - OTC Contracts $ 8,492,956 $16,647,101 $ (12,775)
- - Exchange Traded Contracts -- 16,800 462,188
----------- ----------- -----------
Totals $ 8,492,956 $16,663,901 $ 449,413
=========== =========== ===========
5. Subsequent Event:
On October 8, 1998, Travelers Group Inc. merged with Citicorp
Inc. and changed its name to Citigroup Inc.
8
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Liquidity and Capital Resources
The Partnership does not engage in the sale of goods or services. Its
only assets are its equity in its commodity futures trading account, consisting
of cash and cash equivalents, net unrealized appreciation (depreciation) on open
futures and forward contracts, commodity options and interest receivable.
Because of the low margin deposits normally required in commodity futures
trading, relatively small price movements may result in substantial losses to
the Partnership. While substantial losses could lead to a decrease in liquidity,
no such losses occurred in the third quarter of 1998.
The Partnership's capital consists of the capital contributions of the
partners as increased or decreased by gains or losses on commodity futures
trading, expenses, interest income, redemptions and distributions of profits, if
any.
For the nine months ended September 30, 1998, Partnership capital
decreased 2.9% from $3,481,352 to $3,381,314. This decrease was attributable to
the redemption of 23,349.5713 Units totaling $331,123 which was partially offset
by net income from operations of $231,085 for the nine months ended September
30, 1998. Future redemptions can impact the amount of funds available for
investments in commodity contract positions in subsequent periods.
Operational Risk
The General Partner administers the business of the Partnership through
various systems and processes maintained by SSBH. SSBH has analyzed the impact
of the year 2000 on its systems and processes and modifications for compliance
are proceeding according to plan. All modifications necessary for year 2000
compliance are expected to be completed by the first quarter of 1999. In July
1998, SSB participated in successful industry-wide testing coordinated by the
Securities Industry Association and plans to participate in such tests in the
future. The purpose of industry-wide testing is to confirm that exchanges,
clearing organizations, and other securities industry participants are prepared
for the year 2000.
The most likely and most significant risk to the Partnership associated
with the lack of year 2000 readiness is the failure of outside organizations,
including the commodities exchanges, clearing organizations or regulators with
which the Partnership interacts to resolve their year 2000 issues in a timely
manner. This risk could involve the inability to determine the value of the
Partnership at some point in time and would make effecting purchases or
redemptions of Units in the Partnership infeasible until such valuation was
determinable.
9
<PAGE>
In addition, the General Partner is addressing the technological
implications that will result from regulatory and market changes due to Europe's
Economic and Monetary Union ("EMU").
Risks to the Partnership exist in the lack of experience with this new
currency and the potential impact it can have on the Advisors' trading programs.
Risks also exist in the failure of external information technology and
accounting systems to adequately prepare for the conversion. This issue is
particularly acute in the area of the exchanges, clearing houses and
over-the-counter foreign exchange markets where the futures interests are
traded. If the necessary changes are not properly implemented, the Partnership
could suffer failed trade settlements, inability to reconcile trading positions
and funding disruptions. Such events could result in erroneous entries in the
Partnership's accounts, mispriced transactions, and a delay or inability to
provide timely pricing of Units for the purpose of effecting purchases and
redemptions.
SSB has evaluated its internal systems and made the necessary changes
to accommodate EMU transactions on behalf of the Partnership. The General
Partner will continue to monitor and communicate with the Advisors and related
third-party entities to assure preparation for the EMU conversion and advanced
notification of impending issues or problems.
Results of Operations
During the Partnership's third quarter of 1998, the net asset value per
Unit increased 3.7% from $13.93 to $14.45, as compared to an increase of 8.4% in
the third quarter of 1997. The Partnership experienced a net trading gain before
brokerage commissions and related fees in the third quarter of 1998 of $182,089.
These gains were primarily recognized in the trading of Swiss Francs, Deutsche
Mark, Canadian Dollar, New Zealand Dollar, Mexican Peso and Brazilian Real and
were partially offset by losses in Japanese Yen, Hong Kong Dollar, Russian Ruble
and South African Rand. The Partnership experienced a net trading gain before
brokerage commissions and related fees in the third quarter of 1997 of $321,135.
These gains were primarily recognized in the trading of Australian Dollar,
French Francs, Czech Korona, Malaysian Ringgit, Italian Lira, Deutsche Mark,
Spanish Peseta and New Zealand Dollar and were partially offset by losses in
Pound Sterling and Japanese Yen.
Commodity futures markets are highly volatile. Broad price fluctuations
and rapid inflation increase the risks involved in commodity trading, but also
increase the possibility of profit. The profitability of the Partnership depends
on the existence of major price trends and the ability of the Advisors to
identify correctly those price trends. Price trends are influenced by, among
other things, changing supply and demand relationships, weather, governmental,
agricultural, commercial and trade programs and
10
<PAGE>
policies, national and international political and economic events and changes
in interest rates. To the extent that market trends exist and the Advisors are
able to identify them, the Partnership expects to increase capital through
operations.
Interest income on 85% of the Partnership's daily equity maintained in
cash was earned at the monthly average 13-week U.S. Treasury Bill yield.
Interest income for the three and nine months ended September 30, 1998 decreased
by $99 and $2,249, respectively, as compared to the corresponding periods in
1997. This decrease is primarily due a decrease in interest rates in 1998 as
compared to 1997.
Brokerage commissions are calculated on the adjusted net asset value on
the last day of each month and, therefore, vary according to trading performance
and redemptions. Accordingly, they must be compared in relation to the
fluctuations in the monthly net asset values. Commissions and fees for the three
and nine months ended September 30, 1998 increased by $4,725 and $8,060,
respectively, as compared to the corresponding periods in 1997.
Incentive fees are based on the new trading profits generated by each
Advisor as defined in the advisory agreements between the Partnership, the
General Partner and each Advisor. Trading performance for the three and nine
months ended September 30, 1998 resulted in incentive fees of $19,100
and $33,083, respectively. Trading performance for the three and nine months
ended September 30, 1997 resulted in incentive fees of $41,654 and $88,240,
respectively.
11
<PAGE>
Item 3. Quantitative and Qualitative Disclosures of Market Risk
The Partnership is subject to SEC Financial Reporting Release No. 48,
regarding quantitative and qualitative disclosures of market risk and will
comply with the disclosure and reporting requirements in its Form 10-K as of
December 31, 1998.
12
<PAGE>
PART II OTHER INFORMATION
Item 1. Legal Proceedings
Between May 1994 and the present, Salomon Brothers Inc.
("SBI"), Smith Barney Inc. ("SB") and The Robinson
Humphrey Company, Inc. ("R-H"), all currently subsidiaries
of Salomon Smith Barney Holdings Inc. ("SSBH"), along with
a number of other broker-dealers, were named as defendants
in approximately 25 federal court lawsuits and two state
court lawsuits, principally alleging that companies that
make markets in securities traded on NASDAQ violated the
federal antitrust laws by conspiring to maintain a minimum
spread of $.25 between the bid and asked price for certain
securities. The federal lawsuits and one state court case
were consolidated for pre-trial purposes in the Southern
District of New York in the fall of 1994 under the caption
In re NASDAQ Market-Makers Antitrust Litigation, United
States District Court, Southern District of New York No.
94-CIV-3996 (RWS); M.D.L.No. 1023. The other state court
suit, Lawrence A. Abel v. Merrill Lynch & Co., Inc. et
al.; Superior Court of San Diego, Case No. 677313, has
been dismissed without prejudice in conjunction with a
tolling agreement.
In consolidated action, the plaintiffs purport to represent a
class of persons who bought one or more of what they
currently estimate to be approximately 1,650 securities on
NASDAQ between May 1, 1989 and May 27, 1994. They seek
unspecified monetary damages, which would be trebled under
the antitrust laws. The plaintiffs also seek injunctive
relief, as well as attorney's fees and the costs of the
action. (The state cases seek similar relief.) Plaintiffs in
the consolidated action filed an amended consolidated
complaint that defendants answered in December 1995. On
November 26, 1996, the Court certified a class composed of
retail purchasers. A motion to include institutional
investors in the class and to add class representatives was
granted. In December 1997, SBI, SB and R-H, along with
several other broker-dealer defendants, executed a settlement
agreement with the plaintiffs. This agreement has been
preliminarily approved by the U.S. District Court for the
Southern District of New York but is subject to final
approval.
On July 17, 1996, the Antitrust Division of the Department of
Justice filed a complaint against a number of firms that act
as market makers in NASDAQ stocks. The complaint basically
alleged that a common understanding arose among NASDAQ market
makers which worked to keep quote spreads in
13
<PAGE>
NASDAQ stocks artificially wide. Contemporaneous with the
filing of the complaint, SBI, SB and other defendants entered
into a stipulated settlement agreement, pursuant to which the
defendants would agree not to engage in certain practices
relating to the quoting of NASDAQ securities and would
further agree to implement a program to ensure compliance
with federal antitrust laws and with the terms of the
settlement. In entering into the stipulated settlement, SBI
and SB did not admit any liability. There are no fines,
penalties, or other payments of monies in connection with the
settlement. In April 1997, the U.S. District Court for the
Southern District of New York approved the settlement. In May
1997, plaintiffs in the related civil action (who were
permitted to intervene for limited purposes) appealed the
district court's approval of the settlement. The appeal was
argued in March 1998 and was affirmed in August 1998.
The Securities and Exchange Commission ("SEC") is also
conducting a review of the NASDAQ marketplace, during which
it has subpoenaed documents and taken the testimony of
various individuals including SBI and SB personnel. In July
1996, the SEC reached a settlement with the National
Association of Securities Dealers and issued a report
detailing certain conclusions with respect to the NASD and
the NASDAQ market.
In December 1996, a complaint seeking unspecified monetary
damages was filed by Orange County, California against
numerous brokerage firms, including SB, in the U.S.
Bankruptcy Court for the Central District of California.
Plaintiff alleged, among other things, that the defendants
recommended and sold to plaintiff unsuitable securities.
The case (County of Orange et al. v. Bear Stearns & Co.
Inc. et al.) has been stayed by agreement of the parties.
Item 2. Changes in Securities and Use of Proceeds - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. (a) Exhibits - None
(b) Reports on Form 8-K - None
14
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
By: Smith Barney Futures Management Inc.
(General Partner)
By:
David J. Vogel, President
Date:
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By: Smith Barney Futures Management Inc.
(General Partner)
By:
David J. Vogel, President
Date:
By
Daniel A. Dantuono
Chief Financial Officer and
Director
Date:
15
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized. SMITH
BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
By: Smith Barney Futures Management Inc.
(General Partner)
By: /s/ David J. Vogel, President
David J. Vogel, President
Date: 11/12/98
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By: Smith Barney Futures Management Inc.
(General Partner)
By: /s/ David J. Vogel, President
David J. Vogel, President
Date: 11/12/98
By /s/ Daniel A. Dantuono
Daniel A. Dantuono
Chief Financial Officer and
Director
Date: 11/12/98
15
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000876716
<NAME> SMITH BARNEY INTERNATIONAL CURRENCY FUND L.P.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 3,393,468
<SECURITIES> 124,870
<RECEIVABLES> 10,804
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,529,142
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 3,529,142
<CURRENT-LIABILITIES> 147,828
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 3,381,314
<TOTAL-LIABILITY-AND-EQUITY> 3,529,142
<SALES> 0
<TOTAL-REVENUES> 292,385
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 61,300
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 231,085
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 231,085
<EPS-PRIMARY> 0.93
<EPS-DILUTED> 0
</TABLE>
