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 April 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
April 1997
The net asset value of the Smith Barney Diversified Futures Fund L.P. II was
$1,112.92 at the end of April, down 4.3% from the close of March. April's
performance can best be attributed to the increased volatility in most financial
futures and commodity markets.
In the financial futures markets, advisors' short positions in global interest
rate trading resulted in losses due to the sharp shift in interest rates that
occurred during the month. Profits were generated in the currency markets as the
U.S. dollar rose again to new highs against the Japanese yen and the German
mark.
In the energy markets, long positions in crude oil resulted in losses. In the
base and precious metals markets, profits from short positions in gold failed to
offset losses in aluminum and silver.
In the softs markets, the continued surge in coffee prices and the increasing
concern about adequate supply produced profits for the advisors long positions.
Overall, the Fund's advisors remain lightly positioned across most major market
sectors awaiting the emergence of more definitive trends.
Smith Barney Futures Management Inc.
Important Note From the General Partner:
Effective May 1, 1997, Willowbridge Associates Inc. and ARA Portfolio
Management Company, L.L.C. were added as advisors to the Fund and were each
allocated 7% of the Fund's assets.
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Smith Barney
Diversified Futures Fund L.P. II
Account Statement
For the Period April 1,
Through April 30, 1997
Percent
of Average
Net Assets
-------------
Realized losses from trading $ (843,071) (0.95)%
Change in unrealized gains/losses
from trading (2,598,633) (2.94)
----------------- -------------
(3,441,704) (3.89)
Add, Brokerage commissions
and clearing fees ($14,316) 482,831 0.55
----------------- -------------
Net realized and unrealized losses (3,924,535) (4.44)
Interest Income 299,799 0.34
----------------- -------------
(3,624,736) (4.10)
----------------- -------------
Less, Expenses:
Management fees 194,970 0.21
Other expenses 39,822 0.05
----------------- -------------
234,792 0.26
----------------- -------------
Net Loss (3,859,528) (4.36)%
=============
Additions (7,583.6559 L.P. units at
March 31, 1997 net asset value
per unit of $1,162.50) 8,816,000
Additions (71.3978 G.P. units at
March 31, 1997 net asset value
per unit of $1,162.50) 83,000
Redemptions (244.3398 units at
April 30, 1997 net asset value
per unit of $1,112.92) (271,931)
-----------------
Increase in net assets 4,767,541
Net Assets, March 31, 1997 81,596,197
=================
Net Assets, April 30, 1997 $ 86,363,738
=================
Net asset value per unit $1,112.92
($86,363,738/77,601.2477 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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