<PAGE>
S E M I - A N N U A L R E P O R T
Smith Barney
Institutional
Cash Management
Fund, Inc.
------------------------------
November 30, 1995
[LOGO] SMITH BARNEY MUTUAL FUNDS
INVESTING FOR YOUR FUTURE.
EVERY DAY.
<PAGE>
- --------------------------------------------------------------------------------
SMITH BARNEY INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Dear Shareholder:
We at Smith Barney would like to extend a warm welcome to you as a valued
institutional shareholder in the Smith Barney Institutional Cash Management
Fund, Inc. We are pleased to provide you with the Fund's semi-annual report for
the fiscal year ended November 30, 1995. Since the Smith Barney Institutional
Cash Management Fund began in June 1995, assets have grown steadily. We hope the
Fund has proven to be a convenient, economical and competitive vehicle for your
short-term assets.
For your convenience, we have summarized the period's prevailing economic and
market conditions below. In addition, a more detailed summary of performance and
current holdings can be found in the appropriate sections that follow in the
semi-annual report.
As you may know, we offer three different Portfolios within the Smith Barney
Institutional Cash Management Fund, each of which is available in two-share
classes. The Cash Portfolio invests primarily in high-quality commercial paper,
obligations of financial institutions and U.S. government securities. The
Government Portfolio is comprised exclusively of securities issued or guaranteed
by the U.S. government, its agencies and instrumentalities, including repurchase
agreements and municipal securities collateralized or refunded with U.S.
government securities. The Municipal Portfolio invests primarily in municipal
securities whose interest is exempt from Federal income taxes. Class A shares
are designed as an economical and convenient means for investing your
organization's short-term assets, while Class B shares allow you to offer your
customers a money-market alternative.
New Service Enhancement for Cash and
Government Portfolios
We are pleased to announce the deadline for same-day-settlement of transactions
in the Cash and Government Portfolios has been extended until 2:00 p.m., eastern
time (or 11:00 a.m., pacific time). The deadline for same-day-settlement in the
Municipal Portfolio will remain 12:00 noon (eastern time) because high-quality
municipal paper may be difficult to obtain later in the day.
1
<PAGE>
Cash and Government Portfolio Updates
Early indications of fourth quarter Gross Domestic Product activity show the
economy slowing from a roughly 4.2% growth rate to 1.5%. Consumer spending has
tapered off and car sales have fallen below their typical 15 million unit pace.
With the exception of technology, the industrial sector remains weak and a cut
in inventory levels may be necessary. In our view, production should be sluggish
into early 1996. In addition, consumer concerns about job security in an era of
restructuring and layoffs and historically high levels of debt have slowed
economic growth.
Because of weaker-than-expected economic growth in the fourth quarter, the
Federal Reserve eased and the short-term yield curve has inverted on
expectations that the Federal Reserve will ease further. Overnight rates are
5.50% and 6-month Euro CDs are 5.25%. We are bullish and have maintained an
average life of 63 days for the Cash Portfolio and an average life of 43 days
for the Government Portfolio. Both Portfolios have no Japanese bank exposure and
all securities are first tier as defined by the Securities and Exchange
Commission.
On November 30, 1995, the Cash Portfolio had assets of $188.2 million dollars
and the Government Portfolio had assets of $28.7 million dollars.
Money Market Outlook
As companies substitute technology for labor to keep costs down and economic
overall growth slows, the case for a further Federal Reserve easing becomes more
compelling. We believe inflation will remain low. The real (inflation-adjusted)
federal funds rate stands at 5.50% and inflation, as measured by the Consumer
Price Index, is roughly 2.6%. In our view, current Federal Reserve policy is
overly restrictive and the federal funds rate may drop 100 basis points in the
coming months.
Municipal Portfolio
As of October 31, 1995, industry wide tax-free money fund assets increased $13.6
billion year-to-date, or 12.4%. In our view, this has taken place primarily for
the following reasons:
-- Flatness of the yield curve
-- Migration of bank customers to money funds
-- The calling of municipal securities
-- New shorter settlement period for security transactions
-- Concern that certain tax reform proposals could eliminate the tax-
advantaged status of municipal bonds
2
<PAGE>
On November 30, 1995, the Municipal Portfolio had assets of $37.6 million
dollars and the Portfolio's average life was 44 days.
Municipal Bond Market Outlook
In our view, December's easing by the Federal Reserve may not be the last
because the economy should grow at a slower rate for a while longer. A soft
economy and a benign inflation environment are likely to encourage further
easing steps. At least for the beginning of 1996, we expect that legislative
risk will remain one of the most important factors in the municipal bond market.
Normally, with the Federal Reserve likely to ease, the short-end of the
municipal yield curve would steepen along with that of Treasuries. However, if
the budget proposal to eliminate the 2% de minimis rule for corporations were to
be enacted, we would expect the short end of the municipal yield curve to
flatten over time as many corporations would cease new purchases and allow their
holdings to run off.
At this time, we would like to thank you for your investment in Smith Barney
Institutional Cash Management Fund.
Sincerely,
/s/ Heath B. McLendon
Heath B. McLendon
Chairman and Chief Executive Officer
December 28, 1995
3
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) November 30, 1995
-------------------------------------------------------------------------------
CASH PORTFOLIO
<TABLE>
<CAPTION>
ANNUALIZED
FACE YIELD ON DATE
AMOUNT SECURITY OF PURCHASE VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMERCIAL PAPER -- 80.8%
$3,000,000 Abbey National North America
matures 3/6/96 5.66% $2,955,360
1,500,000 Alliance & Leicester Building
Society matures 1/25/96 5.65 1,487,235
3,000,000 American Home Products
matures 12/8/95 5.81 2,996,658
3,000,000 American Home Products
(AHP Robins) matures 2/29/96 5.76 2,957,400
5,000,000 American Insurance Group Funding
matures 12/1/95 5.98 5,000,000
5,000,000 AT&T Capital Corp. matures 1/18/96 5.78 4,962,000
1,000,000 AT&T Corp. matures 12/21/95 5.70 966,878
1,000,000 Bank of America matures 12/27/95 5.73 995,919
3,000,000 Bankers Trust matures 2/8/96 5.78 2,967,225
5,000,000 Banque Francaise Du Commerce
Exterieur U.S. Finance Corp.
matures 2/5/96 5.75 to 5.76 4,947,988
3,000,000 Banque Indosuez N.A. Inc.
matures 1/24/96 5.78 2,974,350
3,000,000 Bear Stearns matures 12/4/95 5.80 2,998,570
3,000,000 British Gas Capital Inc.
matures 2/27/96 5.72 2,958,640
5,000,000 Citicorp matures 12/1/95 5.98 5,000,000
5,000,000 Dean Witter/Discover & Co.
mature 1/30/96 to 1/31/96 5.76 to 5.78 4,952,251
3,000,000 Enterprise Funding Corp.
matures 5/28/96 5.58 2,917,958
7,000,000 Fleet Mortgage Group
mature 12/8/95 to 12/18/95 5.82 to 5.89 6,986,323
3,000,000 Ford Motor Credit matures 12/1/95 5.75 3,000,000
7,000,000 General Electric Capital Corp.
mature 2/23/96 to 3/19/96 5.65 to 5.69 6,894,276
4,000,000 General Motors Acceptance Corp.
matures 4/22/96 5.62 3,911,976
5,000,000 Glaxo Holdings PLC
mature 1/23/96 to 2/14/96 5.74 to 5.79 4,947,812
5,000,000 Goldman Sachs
mature 3/22/96 to 4/4/96 5.63 to 5.68 4,907,133
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited)(continued) November 30, 1995
- --------------------------------------------------------------------------------
CASH PORTFOLIO
<TABLE>
<CAPTION>
ANNUALIZED
FACE YIELD ON DATE
AMOUNT SECURITY OF PURCHASE VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMERCIAL PAPER -- 80.8%
(continued)
$7,000,000 Hanson Finance PLC
mature 1/12/96 to 3/1/96 5.71% to 5.78% $6,923,584
2,000,000 International Nederlander Bank
matures 2/23/96 5.72 1,973,680
3,000,000 Krediet Bank N.A. Finance
matures 1/2/96 5.83 2,984,667
8,000,000 Merrill Lynch
mature 1/16/96 to 3/29/96 5.68 to 5.73 7,878,790
5,000,000 Morgan Stanley matures 1/29/96 5.83 4,952,882
3,000,000 National & Provincial Building
Society matures 4/17/96 5.69 2,935,485
2,500,000 New Center Asset Trust
matures 1/19/96 5.86 2,480,332
5,000,000 PHH Corporation matures 12/7/95 5.79 4,995,242
7,000,000 Preferred Receivable Funding
mature 12/14/95 to 2/22/96 5.75 to 5.83 6,963,473
2,400,000 Province of British Columbia
matures 3/8/96 5.71 2,363,185
2,000,000 Receivables Capital Corp.
matures 12/12/95 5.86 1,996,468
1,000,000 Renault Acceptance B.V.
matures 12/19/95 5.81 997,135
5,000,000 Renault Credit International
mature 12/19/95 to 3/8/96 5.71 to 5.85 4,960,813
4,000,000 Royal Bank of Canada
matures 1/29/96 5.78 3,962,633
2,000,000 Sheffield Receivable Corp.
matures 1/17/96 5.83 1,984,986
1,500,000 Toronto Dominion matures 2/1/96 5.66 1,485,585
4,000,000 Toronto Dominion Holdings USA Inc.
matures 1/30/96 5.76 to 5.77 3,962,100
7,500,000 Transamerica Finance Corp.
mature 12/1/95 to 2/1/96 5.77 to 5.80 7,475,501
1,500,000 Z-Landesbank Bank Austria AG
matures 12/18/95 5.78 1,495,963
TOTAL COMMERCIAL PAPER
(Cost -- $155,488,456) 155,488,456
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited)(continued) November 30, 1995
- --------------------------------------------------------------------------------
CASH PORTFOLIO
<TABLE>
<CAPTION>
ANNUALIZED
FACE YIELD ON DATE
AMOUNT SECURITY OF PURCHASE VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
TIME DEPOSITS -- 7.3%
$ 5,000,000 Banque Paribas matures 12/1/95 5.99% $ 5,000,000
9,052,000 Chemical Bank matures 12/1/95 5.96 9,052,000
- --------------------------------------------------------------------------------
TOTAL TIME DEPOSITS
(Cost -- $14,052,000) 14,052,000
================================================================================
FOREIGN CERTIFICATES OF
DEPOSIT -- 4.1%
1,000,000 Bayerische Landesbank
matures 2/16/96 5.89 999,941
7,000,000 Societe Generale N.Y.
mature 3/20/96 to 3/27/96 5.75 to 5.94 6,999,958
- --------------------------------------------------------------------------------
TOTAL FOREIGN CERTIFICATES
OF DEPOSIT (Cost -- $7,999,899) 7,999,899
================================================================================
DOMESTIC CERTIFICATES OF
DEPOSIT -- 4.7%
3,000,000 Abbey National PLC matures 2/29/96 5.81 3,000,074
6,000,000 Banque Nationale De Paris
mature 1/10/96 to 3/28/96 5.89 6,000,161
- --------------------------------------------------------------------------------
TOTAL DOMESTIC CERTIFICATES
OF DEPOSIT (Cost -- $9,000,235)++ 9,000,235
================================================================================
DOMESTIC BANK OBLIGATIONS -- 3.1%
4,000,000 NationsBank Texas
matures 4/9/96 5.84 4,000,762
2,000,000 Pittsburgh National Bank
matures 9/18/96 5.73 1,999,219
- --------------------------------------------------------------------------------
TOTAL DOMESTIC BANK OBLIGATIONS
(Cost -- $5,999,981) 5,999,981
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $192,540,571)++ $192,540,571
================================================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1995
- --------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
<TABLE>
<CAPTION>
ANNUALIZED
FACE YIELD ON DATE
AMOUNT SECURITY OF PURCHASE VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
U.S. AGENCIES AND INSTRUMENTALITIES -- 91.5%
$ 870,000 Federal Farm Credit Bank
mature 12/1/95 to 12/15/95 5.50% to 5.88% $ 869,380
6,400,000 Federal Home Loan Bank
mature 12/14/95 to 1/24/96 5.55 to 5.68 6,354,452
6,175,000 Federal Home Loan Mortgage Corp.
mature 12/29/95 to 2/15/96 5.48 to 5.68 6,119,402
9,090,000 Federal National Mortgage
Assocation
mature 12/8/95 to 2/16/96 5.60 to 5.70 9,014,418
4,000,000 Tennessee Valley Authority
mature 12/4/95 to 1/18/96 5.64 to 5.67 3,984,370
- --------------------------------------------------------------------------------
TOTAL U.S. AGENCIES AND
INSTRUMENTALITIES
(Cost -- $26,342,022) 26,342,022
================================================================================
REPURCHASE AGREEMENTS -- 8.5%
1,154,000 Citibank, 5.90% due 12/1/95;
Proceeds at maturity -- $1,154,189;
(Fully collateralized by U.S.
Treasury Notes, 6.50% due 4/30/97;
Market value -- $1,181,750) 1,154,000
1,300,000 Goldman Sachs, 5.79% due 12/1/95;
Proceeds at maturity -- $1,300,209;
(Fully collateralized by
U.S. Treasury Notes, 7.75% due
11/30/99; Market value -- $1,327,625) 1,300,000
- --------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost -- $2,454,000) 2,454,000
================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $28,796,022)++ $ 28,796,022
================================================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1995
- --------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
- --------------------------------------------------------------------------------
<C> <C> <S> <C>
ARIZONA -- 8.0%
$ 1,500,000 P-1 Maricopa County, AZ Pollution Control Corp.
PCR (Public Service Company New Mexico)
3.70%* $ 1,500,000
1,500,000 VMIG 1 Pima County, AZ IDA Industrial Revenue
(Tucson Electric) Series A 3.70%* 1,500,000
- --------------------------------------------------------------------------------
3,000,000
- --------------------------------------------------------------------------------
California -- 2.4%
900,000 MIG 1 Los Angeles, CA Union School District TRAN
4.50% due 7/3/96 903,527
- --------------------------------------------------------------------------------
Colorado -- 2.7%
1,000,000 A-1+ Denver, CO (City & County of) Airport Revenue
Series D 3.75%*(a) 1,000,000
- --------------------------------------------------------------------------------
Delaware -- 1.8%
680,000 VMIG 1 Delaware State Economic Development Authority
(Hospital Billing Collection Service)
Series A 4.00%* 680,000
- --------------------------------------------------------------------------------
Florida -- 2.7%
1,000,000 VMIG 1 Pasco County, FL HFA Multi-Family Revenue
(Carlton Arms Magnolia Project) 4.00%* 1,000,000
- --------------------------------------------------------------------------------
Georgia -- 22.7%
Clayton County, GA Housing Authority
Multi-Family Housing Revenue:
1,500,000 VMIG 1 Kimberly Forest Series B 3.60%* 1,500,000
1,000,000 VMIG 1 Rainwood Development 3.875%* 1,000,000
1,500,000 A-1+ DeKalb County, GA Development Authority PCR
(General Motors Corp. Project) 3.85%* 1,500,000
1,500,000 VMIG 1 Jackson County, GA IDA IDR (Mitsubishi
Consumer Electronics American Inc.
Project) 4.75%* 1,500,000
1,500,000 A-1+ Marietta, GA Housing Authority
Multi-Family Revenue Refunding (Concepts
21 Apartments) 3.60%* 1,500,000
1,500,000 NR Tift County, GA IDA IDR (Queen Carpet Corp.
Project) Series B 3.90%* 1,500,000
- --------------------------------------------------------------------------------
8,500,000
- --------------------------------------------------------------------------------
Idaho -- 4.0%
1,500,000 MIG 1 Idaho State TAN 4.50% due 6/27/96 1,506,044
- --------------------------------------------------------------------------------
Kansas -- 4.0%
1,500,000 VMIG 1 Shawnee, KS Multi-Family Housing Revenue
(Hampton Woods Apartments) 3.80%* 1,500,000
- --------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1995
- --------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
- --------------------------------------------------------------------------------
<C> <C> <S> <C>
Minnesota -- 4.0%
$1,490,000 NR+ Moorehead, MN IDR Refunding
(Super Value Store Project) 4.10%* $1,490,000
- --------------------------------------------------------------------------------
Missouri -- 10.3%
1,170,000 VMIG 1 Missouri State Economic Development Export
& Infrastructure Board IDR
(Tom E. Beal Trust International Village
Project) 3.85%* 1,170,000
1,200,000 A-1 Saint Louis County, MO IDA Multi-Family
Housing Revenue Refunding (Westport
Station Apartments) 3.80%* 1,200,000
1,500,000 NR+ Versailles, MO IDA IDR Refunding
(Gates Rubber Co. Project) 4.93%* 1,500,000
- -------------------------------------------------------------------------------
3,870,000
- -------------------------------------------------------------------------------
Nebraska -- 2.7%
1,000,000 A-1+ Nebraska Higher Education Loan Program
Income Revenue Student Loan Program
Series C 3.75%*(a) 1,000,000
- --------------------------------------------------------------------------------
New York -- 2.4%
900,000 MIG 1 New York City, NY RAN Series B
4.75% due 6/28/96 905,076
- --------------------------------------------------------------------------------
Oregon -- 4.0%
1,500,000 A-1 Medford, OR Hospital Facility Authority
Revenue (Rogue Valley Manor Project) 4.40%* 1,500,000
- --------------------------------------------------------------------------------
Pennsylvania -- 4.0%
1,500,000 MIG 1 Philadelphia, PA School District TRAN 4.50%
due 6/28/96 1,506,689
- --------------------------------------------------------------------------------
Texas -- 16.1%
1,500,000 NR+ Leon County, TX Development Corp. IDR
(BOC Group Inc. Project) 3.90%* 1,500,000
1,500,000 NR+ McAllen, TX Health Facilities
Development Corp. Revenue
(McAllen Associates No. 1) 3.80%* 1,500,000
1,500,000 VMIG 1 Texas Health Facilities Development Corp.
Revenue North Texas Pooled Health
Series 1985B 3.70%* 1,500,000
1,500,000 VMIG 1 Texas State TRAN Series A 4.75% due 8/30/96 1,511,171
- --------------------------------------------------------------------------------
6,011,171
- --------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1995
- --------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
- --------------------------------------------------------------------------------
<C> <C> <S> <C>
Vermont -- 1.3%
$ 500,000 A-1 Vermont Educational & Health Buildings
Financing Agency Revenue (VHA New England)
Series F 3.65%* $ 500,000
- --------------------------------------------------------------------------------
Wisconsin -- 4.0%
1,500,000 A-1 Milwaukee, WI Housing Authority Multi-Family
Revenue Housing (Yankee Hill Apartments)
3.65%* 1,500,000
- --------------------------------------------------------------------------------
Wyoming -- 2.9%
1,100,000 P-1 Sweetwater County, WY PCR (Pacificorp Project)
3.65%* 1,100,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $37,472,507)++ $ 37,472,507
================================================================================
</TABLE>
* Variable rate obligation payable at par on demand at any time on no more
than seven days' notice.
(a) Income from this issue is considered a preference item for purposes of
calculating the alternative minimum tax.
+ Security has not been rated by Moody's Investor Services or Standard &
Poor's. The Portfolio Manager has determined the equivalent rating to be
A-1+.
++ Aggregate cost for Federal income tax purposes is substantially the same.
See page 11 for short-term securities ratings and certain security
descriptions.
See Notes to Financial Statements.
10
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Short-Term Securities Ratings
- --------------------------------------------------------------------------------
SP-1 -- Standard & Poor's highest rating indicating very strong or
strong capacity to pay principal and interest; those issues
determined to possess overwhelming safety characteristics are
denoted with a plus (+) sign.
A-1 -- Standard & Poor's highest commercial paper and variable-rate
demand obligation (VRDO) rating indicating that the degree of
safety regarding timely payment is either overwhelming or very
strong; those issues determined to possess overwhelming safety
characteristics are denoted with a plus (+) sign.
MIG 1 -- Moody's highest rate for short-term municipal obligations.
VMIG 1 -- Moody's highest rating for issues having a demand feature --VRDO.
P-1 -- Moody's highest rating for commercial paper and for VRDO prior
to the advent of the VMIG 1 rating.
- --------------------------------------------------------------------------------
Security Descriptions
- --------------------------------------------------------------------------------
BAN -- Bond Anticipation Notes
EDC -- Economic Development Corporation
EFA -- Educational Facilities Authority
ETM -- Escrowed to Maturity
FRTC -- Floating Rate Trust Certificates
GO -- General Obligation
HDA -- Housing Development Authority
HEFA -- Health and Educational Facilities Authority
HFA -- Housing Finance Authority
IDA -- Industrial Development Authority
IDB -- Industrial Development Board
IDC -- Industrial Development Corporation
IDR -- Industrial Development Revenue
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Facilities Authority
RAN -- Revenue Anticipation Notes
RAW -- Revenue Anticipation Warrants
STEM -- Short-Term Extendable Maturity
TAN -- Tax Anticipation Notes
TECP -- Tax Exempt Commercial Paper
TOB -- Tender Option Bond
TRAN -- Tax & Revenue Anticipation Notes
VHA -- Veterans Housing Authority
11
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Cash Government Municipal
Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments,
at amortized cost $192,540,571 $28,796,022 $ 37,472,507
Cash 1,493 884 1,965
Interest receivable 205,567 398 202,660
Receivable from manager -- 29,184 25,328
Other assets -- -- 7,435
- ---------------------------------------------------------------------------
Total Assets 192,747,631 28,826,488 37,709,895
- ---------------------------------------------------------------------------
LIABILITIES:
Payable for securities
purchased 4,033,402 -- --
Dividends payable 484,458 85,616 70,315
Management fees payable 1,805 -- --
Accrued expenses
and other liabilities 23,014 15,763 28,063
- ---------------------------------------------------------------------------
Total Liabilities 4,542,679 101,379 98,378
- ---------------------------------------------------------------------------
Total Net Assets $188,204,952 $28,725,109 $37,611,517
===========================================================================
NET ASSETS CONSIST OF:
Capital Stock
(25,000,000,000
shares authorized for
each Portfolio; par value
$0.00001 per share) $ 1,882 $ 287 $ 376
Capital paid in excess
of par value 188,203,070 28,724,822 37,611,141
- ---------------------------------------------------------------------------
Total Net Assets $188,204,952 $28,725,109 $37,611,517
===========================================================================
Shares Outstanding 188,204,952 28,725,109 37,611,517
- ---------------------------------------------------------------------------
Net Asset Value $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
12
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Statements of Operations (unaudited)
- --------------------------------------------------------------------------------
For the Period Ended November 30, 1995(a)
<TABLE>
<CAPTION>
Cash Government Municipal
Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 2,409,053 $ 446,535 $ 194,283
- ---------------------------------------------------------------------------
EXPENSES:
Management fees (Note 2) 111,247 20,921 13,416
Registration fees 17,042 17,042 16,977
Audit and legal 10,814 8,270 6,270
Shareholder and system
servicing fees 7,500 2,000 1,000
Rating service fees 6,000 6,000 --
Custody 4,331 691 470
Directors' fees 4,021 4,021 6,000
Shareholder communications 2,000 1,000 1,000
Other 261 397 240
- ---------------------------------------------------------------------------
Total Expenses 163,216 60,342 45,373
Less: Management fee waiver
and expense
reimbursement (109,442) (50,105) (38,744)
- ---------------------------------------------------------------------------
Net Expenses 53,774 10,237 6,629
- ---------------------------------------------------------------------------
Net Investment Income $ 2,355,279 $ 436,298 $ 187,654
===========================================================================
</TABLE>
(a) For the period from June 16, 1995 (commencement of operations) to November
30, 1995.
See Notes to Financial Statements.
13
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (unaudited)
- --------------------------------------------------------------------------------
For the Period Ended November 30, 1995(a)
<TABLE>
<CAPTION>
Cash Government Municipal
Portfolio Portfolio Portfolio
-------------------------------------------
1995 1995 1995
- -------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income $ 2,355,279 $ 436,298 $ 187,654
- -------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS 2,355,279 436,298 187,654
- -------------------------------------------------------------------------
DIVIDENDS TO
SHAREHOLDERS (NOTE 3) (2,355,279) (436,298) (187,654)
- -------------------------------------------------------------------------
FUND SHARE TRANSACTIONS
(NOTE 5):
Proceeds from sale of
shares 413,970,648 80,721,843 95,822,448
Net asset value of shares
issued for reinvestment
of dividends 1,787,849 327,024 98,867
Cost of shares reacquired (227,553,545) (52,323,758) (58,309,798)
- -------------------------------------------------------------------------
INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 188,204,952 28,725,109 37,611,517
- -------------------------------------------------------------------------
INCREASE IN NET ASSETS 188,204,952 28,725,109 37,611,517
NET ASSETS:
Beginning of period -- -- --
- -------------------------------------------------------------------------
END OF PERIOD $ 188,204,952 $ 28,725,109 $ 37,611,517
=========================================================================
</TABLE>
(a) For the period from June 16, 1995 (commencement of operations) to November
30, 1995.
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Smith Barney Institutional Cash Management Fund, Inc. ("Fund"), a Maryland
corporation, is registered under the Investment Company Act of 1940, as amended,
as a diversified, open-end management investment company. The Fund consists of
three separate investment portfolios ("Portfolios"): Cash Portfolio ("Cash"),
Government Portfolio ("Government") and Municipal Portfolio ("Municipal").
The significant accounting policies consistently followed by the Portfolios
are: (a) transactions in money market instruments and government obligations are
recorded on trade date; (b) the Fund uses the amortized cost method for valuing
investments; accordingly, the cost of securities plus accreted discount, or
minus amortized premium, approximates market value; (c) interest income is
recorded on the accrual basis; (d) direct expenses are charged to each portfolio
and each class; management fees and general fund expenses are allocated on the
basis of relative net assets; and (e) the Portfolios intend to comply with the
applicable provisions of the Internal Revenue Code of 1986, as amended,
pertaining to regulated investment companies and to make distributions of
taxable income sufficient to be relieved from substantially all Federal income
and excise taxes.
2. Management Agreement and Other Transactions
Smith Barney Mutual Funds Management Inc. ("SBMFM"), a subsidiary of Smith
Barney Holdings, Inc. ("SBH"), acts as investment manager of the Fund. As
compensation for its services, each Portfolio pays SBMFM a management fee
calculated at the annual rate of 0.27% of the average daily net assets of each
respective Portfolio. This fee is calculated daily and paid monthly.
For the period ended November 30, 1995, SBMFM waived $109,442, $20,921 and
$13,416 of its management fees for Cash, Government and Municipal, respectively.
In addition, SBMFM has agreed to reimburse Government for expenses of $29,184
and Municipal for expenses of $25,328.
Smith Barney Inc. ("SB"), another subsidiary of SBH, acts as distributor of
Fund shares.
All officers and two Directors of the Fund are employees of SB.
15
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
- --------------------------------------------------------------------------------
3. Dividends, Exempt-Interest Dividends and Other
Distributions
Each portfolio declares and records a dividend of substantially all of its net
investment income on each business day. Such dividends are paid or reinvested
monthly in each respective portfolio's shares on the payable date.
Furthermore, Municipal intends to satisfy conditions that will enable interest
from municipal securities, which is exempt from Federal income tax and from
designated state income taxes, to retain such status when distributed to its
shareholders.
Capital gain distributions, if any, are taxable to shareholders, and are
declared and paid at least annually.
4. Repurchase Agreements
The Fund purchases, and its custodian takes possession of, U.S. Government
securities from banks and securities dealers subject to agreements to resell the
securities to the sellers at a future date (generally, the next business day) at
an agreed-upon higher repurchase price. The Fund requires continual maintenance
of the market value of the collateral in amounts at least equal to the
repurchase price.
5. Capital Shares
At November 30, 1995, the Fund had 75,000,000,000 shares of capital stock
authorized with a par value of $0.00001 per share. The Fund has the ability to
issue multiple classes of shares within the Portfolios.
Transactions in shares of each Portfolio were as follows:
<TABLE>
<CAPTION>
Period Ended
Cash Portfolio November 30, 1995+
- --------------------------------------------------------------------
<S> <C>
Class A
Shares sold 413,970,648
Shares issued on reinvestment 1,787,849
Shares redeemed (227,553,545)
- ------------------------------------------------------------------
Net Increase 188,204,952
==================================================================
</TABLE>
16
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED
GOVERNMENT PORTFOLIO NOVEMBER 30, 1995+
- ---------------------------------------------------------------------
<S> <C>
CLASS A
Shares sold 80,721,843
Shares issued on reinvestment 327,024
Shares redeemed (52,323,758)
- -----------------------------------------------------------------
Net Increase 28,725,109
=================================================================
MUNICIPAL PORTFOLIO
- -----------------------------------------------------------------
CLASS A
Shares sold 95,822,448
Shares issued on reinvestment 98,867
Shares redeemed (58,309,798)
- -----------------------------------------------------------------
Net Increase 37,611,517
=================================================================
</TABLE>
+ Transactions are for the period from June 16, 1995 (commencement of
operations) to November 30, 1995.
17
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
FOR A SHARE OF EACH CLASS OF CAPITAL STOCK OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
Cash Portfolio 1995(1)
- -------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
- -------------------------------------------------------------------
Net investment income (2) 0.026
Dividends from net investment income (0.026)
- ------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00
- ------------------------------------------------------------------
TOTAL RETURN++ 2.67%
- ------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000S) $188,205
- ------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS+:
Expenses (2) 0.13%
Net investment income 5.72
==================================================================
</TABLE>
(1) For the period from June 16, 1995 (commencement of operations) to November
30, 1995 (unaudited).
(2) The Manager has waived part of its fees, for the Portfolio, for the period
ended November 30, 1995. If the Manager had not agreed to the fee waiver,
the per share decrease in net investment income and the ratio of expenses
to average net assets would have been:
<TABLE>
<CAPTION>
Per Share
Decrease in Net Expense Ratio
Investment Income Without Fee Waiver
----------------- ------------------
1995 1995
---- ----
<S> <C> <C>
Cash Portfolio $0.001 0.40%+
</TABLE>
++ Total return is not annualized, as it may not be representative of the total
return for the year.
+ Annualized.
18
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
FOR A SHARE OF EACH CLASS OF CAPITAL STOCK OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
Government Portfolio 1995(1)
- -----------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of Period $ 1.00
- -----------------------------------------------------------------------
Net investment income (2) 0.026
Dividends from net investment income (0.026)
- -----------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00
- -----------------------------------------------------------------------
TOTAL RETURN++ 2.64%
- -----------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000s) $28,725
- -----------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS+:
Expenses (2) 0.13%
Net investment income 5.63
=======================================================================
</TABLE>
(1) For the period from June 16, 1995 (commencement of operations) to November
30, 1995 (unaudited).
(2) The Manager has waived all of its fees, for the Portfolio, for the period
ended November 30, 1995. In addition, the Manager has agreed to reimburse
the Portfolio for $29,184 in expenses. If the Manager had not agreed to the
fee waiver and the expense reimbursement, the per share decrease in net
investment income and the ratio of expenses to average net assets would
have been:
<TABLE>
<CAPTION>
Per Share Expense Ratio
Decrease in Net Without Fee Waiver
Investment Income and Reimbursement
----------------- ------------------
1995 1995
---- ----
<S> <C> <C>
Government Portfolio $0.003 0.78%+
</TABLE>
++ Total return is not annualized, as it may not be representative of the total
return for the year.
+ Annualized.
19
<PAGE>
SMITH BARNEY
INSTITUTIONAL CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
FOR A SHARE OF EACH CLASS OF CAPITAL STOCK OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
Municipal Portfolio 1995(1)
- ----------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
- ----------------------------------------------------------------------
Net investment income (2) 0.017
Dividends from net investment income (0.017)
- ----------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00
- ----------------------------------------------------------------------
TOTAL RETURN++ 1.75%
- ----------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000s) $37,612
- ----------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS+:
Expenses (2) 0.13%
Net investment income 3.78
======================================================================
</TABLE>
(1) For the period from June 16, 1995 (commencement of operations) to November
30, 1995 (unaudited).
(2) The Manager has waived all of its fees, for the Portfolio, for the period
ended November 30, 1995. In addition, the Manager has agreed to reimburse
the Portfolio for $25,328 in expenses. If the Manager had not agreed to the
fee waiver and the expense reimbursement, the per share decrease in net
investment income and the ratio of expenses to average net assets would
have been:
<TABLE>
<CAPTION>
Per Share Expense Ratio
Decrease in Net Without Fee Waiver
Investment Income and Reimbursement
----------------- ------------------
1995 1995
---- ----
<S> <C> <C>
Municipal Portfolio $0.003 0.91%+
</TABLE>
++ Total return is not annualized, as it may not be representative of the total
return for the year.
+ Annualized.
20
<PAGE>
SMITH BARNEY
INSTITUTIONAL
CASH MANAGEMENT
FUND, INC.
Directors
Paul R. Ades
Herbert Barg
Jessica M. Bibliowicz
Alger B. Chapman
Dwight B. Crane
Allan R. Johnson
Frank G. Hubbard
Heath B. McLendon, Chairman
Jerome Miller
John F. White
Officers
Heath B. McLendon
Chief Executive Officer
Jessica M. Bibliowicz
President
Lewis E. Daidone
Senior Vice President
and Treasurer
Phyllis Zahorodny
Investment Officer
Lawrence T. McDermott
Investment Officer
Irving P. David
Controller
Christina T. Sydor
Secretary
SMITH BARNEY
- ------------
A Member of Travelers Group [LOGO]
Investment Manager
Smith Barney Mutual Funds
Management Inc.
Distributor
Smith Barney Inc.
Custodian
PNC Bank
Shareholder
Servicing Agent
First Data Investor Services Group, Inc.
P.O. Box 9134
Boston, MA 02205-9134
This report is submitted for the general information of the shareholders of
Smith Barney Institutional Cash Management Fund, Inc. It is not authorized for
distribution to prospective investors unless accompanied or preceded by an
effective Prospectus for the Fund, which contains information concerning the
Fund's investment policies and expenses as well as other pertinent information.
SMITH BARNEY
INSTITUTIONAL
CASH MANAGEMENT
FUND, INC.
388 Greenwich Street
New York, New York 10013
FD01053 1/96
