Smith Barney Futures Management Inc.
390 Greenwich Street
New York, NY 10013
By EDGAR
Securities and Exchange Commission
450 Fifth Street N.W.
Washington, D.C. 20549
RE: Smith Barney Diversified Futures Fund L.P. II
Supplement to Registration Statement on Form S-1
File No. 333-3538
Ladies and Gentlemen:
On Behalf of Smith Barney Diversified Futures Fund L.P. II (the "Partnership") I
am transmitting herewith for filing, pursuant to Rule 424 (b) (3) of the
Securities Act of 1933, as amended, a Supplement dated June 30, 1997 to the
Partnership's final prospectus dated May 31, 1996.
Should you have any questions, please telephone me at 723-5424.
Very truly yours,
/s/ Daniel A. Dantuono
Daniel A. Dantuono
Chief Financial Officer and
Director
Enclosures
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Smith Barney
Diversified Futures Fund L.P. II
June 1997
The net asset value of the Smith Barney Diversified Futures Fund L.P. II was
$1,090.64 at the end of June, down 1.7% from the close of May. Reversing May's
trading experience, the financial markets provided substantial profits for the
Fund but were offset by losses brought on by price consolidation in the
traditional commodity markets.
In the currency markets, advisor positions in the Japanese yen, Deutsche mark
and British pound produced profits, as did positions in stock indices, most
notably in the Japanese nikkei and S&P 500 indices. Further profits were
realized from advisors' positions in U.S. and global interest rate markets.
In the energy markets, prospects of reduced oil supply due to Middle East
tensions and reduced OPEC production caused prices to rise sharply, which then
resulted in losses for advisors' short positions. In the metals markets, profits
were made from short positions in gold as prices continued to fall to their
lowest levels in more than four years.
In the softs markets, advisors gave back profits from their long positions in
coffee as prices suddenly declined due to favorable Brazilian crop conditions
and improved supply. In the grains markets, profits were derived from positions
in soybeans.
Important Note From the General Partner:
The following changes in the principals of the General Partner became
effective in May 1997. Shelley Ullman and Maureen O'Toole each were
appointed as Senior Vice President; Philip M. Waterman, Jr. resigned his
positions as Vice Chairman and Director.
Smith Barney Futures Management Inc.
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Smith Barney
Diversified Futures Fund L.P. II
Account Statement
For the Period June 1,
Through June 30, 1997
Percent
of Average
Net Assets
-------------
Realized gains from trading $ 3,562 0.00 %
Change in unrealized gains/losses
from trading (1,164,886) (1.21)
----------------- -------------
(1,161,324) (1.21)
Add, Brokerage commissions
and clearing fees ($19,418) 557,685 0.58
----------------- -------------
Net realized and unrealized losses (1,719,009) (1.79)
Interest Income 300,988 0.31
----------------- -------------
(1,418,021) (1.48)
----------------- -------------
Less, Expenses:
Management fees 213,895 0.22
Other expenses 26,872 0.03
---------------- ------------
240,767 0.25
---------------- ------------
Net Loss (1,658,788) (1.72)%
=============
Additions (3,863.8330 L.P. units at
May 31, 1997 net asset value
per unit of $1,109.52) 4,287,000
Additions (40.5581 G.P. units at
May 31, 1997 net asset value
per unit of $1,109.52) 45,000
Redemptions (280.3097 units at
June 30, 1997 net asset value
per unit of $1,090.64) (305,717)
----------------
Increase in net assets 2,367,495
Net Assets, May 31, 1997 93,159,333
================
Net Assets, June 30, 1997 $ 95,526,828
=================
Net asset value per unit $1,090.64
($95,526,828/87,587.6071 units) ================
To the best of the knowledge and belief of the undersigned, the information
contained herein is accurate and complete.
By: /s/ Daniel A. Dantuono
Daniel A. Dantuono
Chief Financial Officer
Smith Barney
Futures Management Inc.
General Partner, Smith Barney
Diversified Futures Fund L.P. II
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