<PAGE>
[GRAPHIC]
Smith Barney
Institutional Cash
Management
Fund, Inc.
--------------------------
SEMI-ANNUAL REPORT
--------------------------
November 30, 1998
[LOGO] Smith Barney Mutual Funds
Investing for your future.
Every day.(R)
<PAGE>
Smith Barney
Institutional Cash
Management
Fund, Inc.
[PHOTO] [PHOTO]
HEATH B. PHYLLIS
MCLENDON ZAHORODNY
Chairman Vice President and
Investment Officer
[PHOTO] [PHOTO]
JOSEPH LAWRENCE T.
BENEVENTO MCDERMOTT
Vice President and Vice President and
Investment Officer Investment Officer
Dear Shareholder:
We are pleased to provide the semi-annual report for Smith Barney Institutional
Cash Management Fund, Inc. ("Fund") for the period ended November 30, 1998. 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.
Performance Summary
The chart below provides the yields for the Cash, Government and Municipal
Portfolios ("Portfolio(s)") that make up the Fund for the period ended November
30, 1998.
Smith Barney Institutional Cash Management
Fund Yields (Class A Shares)
Portfolio Seven-day Current Yield 30-Day Yield
- -------------------------------------------------------------------
Cash 5.14% 5.15%
Government 4.93% 4.96%
Municipal 3.13% 3.14%
Please note that an investment in the Fund is neither insured nor guaranteed
by the U.S. Government. Moreover, there can be no assurance that the Fund will
be able to maintain a stable net asset value ("NAV") of $1.00 per share.
Cash and Government Portfolio Updates and Strategies
Global events in Russia, Japan and Asia have finally reached the United States.
Many U.S. financial institutions have suffered losses due to exposure to Russia
and a widening spread on debt instruments that have developed in emerging
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 1
<PAGE>
markets. The widening spread on debt instruments has even occurred among
"AA"-rated banks and brokerage firms as their future earnings continue to be
questioned. The near default of a major hedge fund caused spreads to widen
further as it began to unwind its portfolio.
Instability in the capital markets and the downturn in the U.S. stock market
prompted the Federal Reserve Board ("Fed") to take preemptive moves and lower
the federal funds rate from 5.50% to 4.75%. It appears that the 75 basis point
ease in the Fed's monetary policy has enabled the financial markets to operate
once again in an orderly yet still cautious fashion. In our view, it appears
that a full-blown credit crunch and recession has been avoided.
The financial markets are now focused on to what degree the U.S. economy may
slow, and further monetary policy eases by the Fed will depend on how the U.S.
economy performs. The major G-7 countries are closely watching the financial
markets and global interest-rate cuts have begun. The International Monetary
Fund ("IMF") has devised liquidity plans for emerging market countries in Latin
America and Asia to avoid funding disruptions when capital flows around the
world become volatile.
The most recent economic data suggests to us that the U.S. economy is still
healthy and growing at around 2.5% to 3% going into 1999. Several factors such
as low interest rates, a healthy housing and consumer sector, recent lows in oil
prices, a rebound in stock prices and a bottoming out in Asia have helped
support global economic growth. A still weak manufacturing sector and some
profit pressure seem to weigh negatively on the economy.
The Institutional Cash Portfolio grew roughly 100% in asset size during 1998.
During that period the investment parameters for the Portfolio remained
conservative. Our belief is that our investment practice of managing interest
rates and buying value on the yield curve has been successful and that we would
not have been as successful, if we had purchased instruments that carry
additional risks. Additional cash was invested in blue-chip names such as
Siemens and Procter & Gamble and our government agency discount note position
was increased from 1.5% to 3.0%. The Portfolio remains well diversified with
close to 75 issues with the largest exposure in any one issuer limited to 3.0%.
The Portfolio is approximately 54% in banks, 43% in corporates, and 3% in
government agencies. The Portfolio's average life lengthened 60 to 70 days
during the past six months.
The Government Portfolio grew roughly 15% in asset size over the current year.
The Portfolio has lengthened its average maturity from 30 days to 40 days so far
in 1998. When financial markets turmoil was at its peak, in response to the
Russian crisis in October, spreads between U.S. Treasury bills and agencies
widened from 40 basis points to 120 basis points and are currently at 55 basis
points.
- --------------------------------------------------------------------------------
2 1998 Semi-Annual Report to Shareholders
<PAGE>
Municipal Portfolio Update and Strategy
During 1998, the performance of the U.S. economy has helped to propel state tax
collections higher and add to their strong fiscal positions. Added liquidity in
state and local government general funds has also decreased the need for
short-term municipal note financing. In fact, over the first eleven months of
the year, municipal note issuance is down 27% over the comparable period in
1997. We have also seen a drop in the issuance of variable rate demand
obligations (VRDOs) as municipal issuers look to the longer end of the
municipal yield curve to lock in historically low rates.
It is our expectation that lighter issuance coupled with strong demand caused by
risk-conscious investors should bring the yield on the Municipal Portfolio lower
in the coming months. Yet the Municipal Portfolio has enjoyed improved credit
quality of many state and local issuers and that has increased liquidity as
demand has risen for short-term money market paper. At the present time, we have
targeted the Portfolio's average maturity to a 55-day range. We think this
average maturity target should enable the Portfolio to decrease its variable
rate holdings and lock in rates in anticipation of short-term yields declining
further. Moreover, in response to the financial market turmoil during the
reporting period, we have further enhanced the credit quality of our bank
guarantees and demand investments.
In closing, thank you for investing in the Smith Barney Institutional Cash
Management Fund. We hope the Fund has proven to be a convenient, economical and
competitive vehicle for your short-term assets.
Sincerely,
/s/ Heath B. McLendon /s/ Phyllis Zahorodny
Heath B. McLendon Phyllis Zahorodny
Chairman Vice President and
Investment Officer
/s/ Lawrence T. McDermott /s/ Joseph Benevento
Lawrence T. McDermott Joseph Benevento
Vice President and Vice President and
Investment Officer Investment Officer
December 9, 1998
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 3
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) November 30, 1998
- --------------------------------------------------------------------------------
CASH PORTFOLIO
<TABLE>
<CAPTION>
ANNUALIZED
YIELD ON
FACE DATE OF
AMOUNT SECURITY PURCHASE VALUE
======================================================================================================
<C> <S> <C> <C>
BANK NOTE -- 4.4%
$ 8,000,000 Bank of New York matures 3/26/99 5.78% $ 7,995,516
15,000,000 First Union National Bank matures 3/29/99 5.20 15,015,239
25,000,000 Harris Bank mature 1/26/99 to 5/10/99 5.06 to 5.20 25,000,000
- ------------------------------------------------------------------------------------------------------
TOTAL BANK NOTES
(Cost--$48,010,755) 48,010,755
- ------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER -- 78.4%
10,000,000 ABN AMRO Canada matures 1/11/99 5.63 9,937,703
20,000,000 Abbey National North America matures 4/7/99 5.04 19,652,866
10,000,000 Asset Securitization matures 3/12/99 5.30 9,854,111
13,082,000 Associates Corp. of North America
mature 12/22/98 to 2/11/99 5.11 to 5.60 512,971,566
20,000,000 Bank of America New York matures 12/9/98 5.28 19,976,755
10,000,000 Bank of New York matures 2/1/99 5.14 9,912,683
10,245,000 Banque Nationale de Paris Canada matures 12/29/98 5.15 10,204,361
25,000,000 BCI Funding Corp. mature 12/8/98 to 5/17/99 5.14 to 5.30 524,752,279
10,000,000 Bell Atlantic Financial Service matures 1/15/99 5.12 9,936,500
20,000,000 Cariplo Finance Inc. matures 1/4/99 5.54 19,898,983
18,000,000 Centric Capital Corp. mature 12/2/98 to 2/5/99 5.27 to 5.42 517,920,075
30,000,000 Chase Manhattan Bank mature 1/29/99 to 5/14/99 5.11 to 5.80 529,686,411
25,000,000 Credit Suisse / First Boston, Inc.
mature 1/27/99 to 3/11/99 5.13 to 5.21 524,738,203
10,000,000 Cregem North America Inc. matures 1/8/99 5.64 9,942,155
20,000,000 Daimler-Benz North America Co.
mature 3/12/99 to 5/21/99 5.04 to 5.09 519,625,525
10,000,000 Delaware Funding Corp. matures 12/18/98 5.32 9,975,161
10,000,000 Den Danske Corp. matures 12/1/98 5.64 10,000,000
15,000,000 Diageo PLC matures 12/1/98 5.59 15,000,000
15,000,000 Deutsche Bank Financial matures 2/11/99 5.28 14,843,550
10,000,000 Enterprise Funding Corp. matures 1/19/99 5.58 9,924,731
20,000,000 General Electric Capital Corp.
mature 1/29/99 to 2/19/99 5.61 to 5.64 519,788,914
10,000,000 General Electric Co. matures 12/31/98 5.17 9,957,250
28,244,000 General Motors Acceptance Corp.
matures 12/28/98 to 1/14/99 5.25 28,070,076
20,000,000 Generale Bank matures 12/2/98 to 2/10/99 5.30 to 5.60 519,844,517
20,000,000 Goldman Sachs & Co. mature 2/24/99 to 2/26/99 5.28 to 5.61 519,745,986
12,000,000 GTE Corp. matures 2/2/99 5.47 11,886,600
10,000,000 GTE Funding mature 12/21/98 5.17 9,971,444
16,750,000 Halfax Building Society mature 1/25/99 5.60 16,610,021
20,000,000 IBM Credit Corp. mature 1/22/99 to 2/17/99 5.09 to 5.60 519,809,261
10,000,000 International Lease Finance matures 2/3/99 5.09 9,910,756
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
4 1998 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1998
- --------------------------------------------------------------------------------
CASH PORTFOLIO
<TABLE>
<CAPTION>
ANNUALIZED
YIELD ON
FACE DATE OF
AMOUNT SECURITY PURCHASE VALUE
========================================================================================================
COMMERCIAL PAPER -- 78.4% (continued)
<C> <S> <C> <C>
$21,000,000 International Nederlanden US Funding
mature 12/28/98 to 5/6/99 5.10% to 5.20% $20,653,775
30,000,000 J.P. Morgan & Co. mature 2/23/99 to 5/20/99 5.01 to 5.11 29,490,833
10,000,000 Kitty Hawk matures 1/13/99 5.50 9,934,783
15,000,000 Lloyds Bank matures 12/31/98 5.60 14,931,750
28,000,000 Merrill Lynch & Co. mature 2/1/99 to 2/12/99 5.08 to 5.18 27,733,733
20,000,000 Morgan Stanley Dean Witter & Co.
mature 2/4/99 to 3/26/99 5.34 to 5.65 19,734,764
10,000,000 NationsBank Corp mature 2/9/99 5.60 9,894,028
15,000,000 National Bank of Canada Finance USA
matures 2/2/99 5.22 14,865,338
20,000,000 Norwest Corporation matures 1/22/99 5.10 19,854,689
16,875,000 Osterreich Kontrollbank mature 2/22/99 to 5/18/99 5.02 to 5.17 16,552,443
11,100,000 Pfizer Inc. mature 12/9/98 to 12/18/98 5.10 to 5.11 11,074,772
14,690,000 Preferred Receivable Funding
mature 1/12/99 to 2/8/99 5.31 to 5.36 14,580,740
10,000,000 Procter & Gamble Co. matures 12/11/98 5.03 9,986,111
10,000,000 Province de Quebec matures 3/15/99 5.09 9,855,267
15,000,000 Quincy Capital Corp matures 1/15/99 5.55 14,896,875
10,000,000 Saint Gobain (Compagnie) matures 12/15/98 5.63 9,978,689
30,000,000 SBC Communications matures 12/3/98 5.01 29,991,667
8,000,000 Svenska Handelsbanken matures 12/17/98 5.62 7,980,480
10,000,000 Swedish Export Credit matures 5/5/99 5.04 9,788,167
15,000,000 Transamerica Finance Corp.
matures 2/22/99 to 3/26/99 5.01 to 5.61 14,795,853
10,000,000 Union Bank of Switzerland matures 3/18/99 5.20 9,848,209
15,000,000 USAA Capital Corp. matures 2/17/99 5.27 14,831,000
15,000,000 Wachovia Bank matures 2/17/99 5.11 14,835,875
11,500,000 Walt Disney Company matures 3/2/99 5.07 11,354,653
7,200,000 Westpac matures 1/13/99 5.60 7,152,958
- --------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost-- $848,945,895) 848,945,895
========================================================================================================
FOREIGN CERTIFICATES OF DEPOSIT -- 13.0%
10,000,000 Bank of Nova Scotia matures 3/23/99 5.75 9,996,220
5,000,000 Bayerische Landesbank matures 3/15/99 5.70 4,997,480
15,000,000 Bayerische Vereinsbank AG matures 4/2/99 5.09 15,023,575
20,000,000 Canadian Imperial Bank Commerce matures 12/2/98 5.25 20,000,000
14,750,000 Credit Agricole Indosuez mature 4/16/99 5.70 to 5.78 14,746,896
10,000,000 Deutsche Bank matures 4/16/99 5.75 9,998,215
15,000,000 Dresdner Bank matures 2/16/99 5.12 15,006,472
5,000,000 National Bank of Canada matures 6/10/99 5.82 4,998,622
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 5
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1998
- --------------------------------------------------------------------------------
CASH PORTFOLIO
<TABLE>
<CAPTION>
ANNUALIZED
YIELD ON
FACE DATE OF
AMOUNT SECURITY PURCHASE VALUE
====================================================================================================================
<C> <S> <C> <C>
FOREIGN CERTIFICATES OF DEPOSIT -- 13.0% (continued)
$10,000,000 Rabo Bank matures 5/5/99 5.81% $ 9,998,742
10,000,000 Republic National Bank of New York matures 2/16/99 5.60 10,000,000
16,000,000 Society Generale NY mature 3/23/99 to 4/19/99 5.75 to 5.80 15,997,335
10,000,000 Swiss Bank Corp. matures 4/5/99 5.75 9,999,016
- --------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN CERTIFICATES OF DEPOSIT
(Cost -- $140,762,573) 140,762,573
====================================================================================================================
TIME DEPOSIT -- 2.3%
25,000,000 First Chicago matures 12/1/98
(Cost -- $25,000,000) 5.38 25,000,000
====================================================================================================================
U.S. AGENCIES AND INSTRUMENTALITIES -- 1.8%
20,000,000 Federal Home Loan Mortgage Association
matures 2/5/99
(Cost -- $19,816,667) 5.07 19,816,667
====================================================================================================================
REPURCHASE AGREEMENT -- 0.1%
725,000 Morgan Stanley Dean Witter & Co., 5.25% due 12/1/98;
Proceeds at maturity -- $725,106;
(Fully collateralized by U.S. Treasury Notes,
7.75% due 12/31/99; Market Value -- $730,171)
(Cost -- $725,000) 725,000
====================================================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $1,083,260,890*) $1,083,260,890
====================================================================================================================
</TABLE>
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
6 1998 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1998
- --------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
<TABLE>
<CAPTION>
ANNUALIZED
YIELD ON
FACE DATE OF
AMOUNT SECURITY PURCHASE VALUE
=================================================================================================
<C> <S> <C> <C>
U.S. AGENCIES AND INSTRUMENTALITIES -- 91.6%
$14,154,000 Federal Farm Credit Bank
mature 12/2/98 to 4/20/99 4.77% to 5.54% $14,098,434
22,318,000 Federal Home Loan Bank
mature 12/9/98 to 2/26/99 4.81 to 5.50 22,172,107
20,960,000 Federal Home Loan Mortgage Corp.
mature 12/9/98 to 2/26/99 4.81 to 5.42 20,822,463
16,000,000 Federal National Mortgage Association
mature 12/9/98 to 3/4/99 4.81 to 5.51 15,881,473
- -------------------------------------------------------------------------------------------------
TOTAL U.S. AGENCIES AND
INSTRUMENTALITIES
(Cost -- $72,974,477) 72,974,477
=================================================================================================
REPURCHASE AGREEMENT -- 8.4%
6,683,000 Morgan Stanley Dean Witter & Co., 5.25% due 12/1/98;
Proceeds at maturity -- $6,683,974; (Fully collateralized
by U.S. Treasury Notes, 7.125% due 2/29/00;
Market value -- $6,720,691) (Cost -- $6,683,000) 6,683,000
=================================================================================================
TOTAL INVESTMENTS -- 100%
(Cost -- $79,657,477*) $79,657,477
=================================================================================================
</TABLE>
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 7
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1998
- --------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
================================================================================================
<C> <C> <S> <C>
Alabama-- 1.0%
$ 950,000 NR++ Cullman, AL IDR, (Pressac Project), 3.65%(b) $ 950,000
- ------------------------------------------------------------------------------------------------
Alaska -- 5.4%
3,000,000 A-1 Alaska State Housing Finance Corp., Government
Purpose University, Series 97A, 3.20%(b) 3,000,000
2,000,000 A-1 Valdez Marine Term, (ARCO Project), Series B, 3.20%(b) 2,000,000
- ------------------------------------------------------------------------------------------------
5,000,000
- ------------------------------------------------------------------------------------------------
Arizona -- 2.1%
2,000,000 A-1+ Apache County, AZ IDR, (Tucson Electric Power),
Series 83B, 3.20%(b) 2,000,000
- ------------------------------------------------------------------------------------------------
California -- 2.4%
2,300,000 VMIG* California Higher Education Student Loan Authority,
Series A-1, 3.15%(b) 2,300,000
- ------------------------------------------------------------------------------------------------
Colorado -- 6.8%
2,300,000 NR++ Colorado Educational Facilities Authority,
(Regis Jesuit High School Project), 3.45%(b) 2,300,000
2,000,000 A-1+ Denver, CO, City & County Airport Revenue,
Series B, 3.40%(b) 2,000,000
2,000,000 A-1 Lakewood, CO MFH, (Marston Pointe Apartments
Project), 3.25%(b) 2,000,000
- ------------------------------------------------------------------------------------------------
6,300,000
- ------------------------------------------------------------------------------------------------
District of Columbia -- 2.4%
1,000,000 SP-1+ District of Columbia, The TRAN, Series B, 3.75% due 9/30/99 1,005,252
1,200,000 VMIG* District of Columbia, The American University Project,
Series 85, 3.15%(b) 1,200,000
- ------------------------------------------------------------------------------------------------
2,205,252
- ------------------------------------------------------------------------------------------------
Florida -- 5.5%
1,000,000 A-1++ Broward County, MFH Margate Investments Project, 3.15%(b) 1,000,000
2,000,000 AAA Dunedin Utility, (Pre-Refunded-- Escrowed with
US Government Securities to 10/1/99 Call @ 100),
6.00% due 1/1/15 2,052,501
2,000,000 AAA Florida State Turnpike Authority, (Pre-Refunded --
Escrowed with US Government Securities to 7/1/99 Call
@ 102), 7.50% due 7/1/19 2,083,253
- ------------------------------------------------------------------------------------------------
5,135,754
- ------------------------------------------------------------------------------------------------
Georgia -- 3.2%
1,000,000 NR++ Decatur County & Bainbridge, GA Development
Authority, 3.55%(b) 1,000,000
Municipal Electricity Authority:
1,000,000 A-1+ Series B, 3.10%(b) 1,000,000
1,000,000 A-1+ Series D, 3.20%(b) 1,000,000
- ------------------------------------------------------------------------------------------------
3,000,000
- ------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
8 1998 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1998
- --------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
===============================================================================================
<C> <C> <S> <C>
Hawaii -- 2.2%
$2,000,000 VMIG 1* Hawaii Housing Finance & Development Corp.,
Series 93A, 3.15%(b) $ 2,000,000
- -----------------------------------------------------------------------------------------------
Illinois -- 13.7%
1,000,000 AAA Chicago, IL GO, (Pre-Refunded -- Escrowed with
U.S. government securities to 1/1/99 call @ 102),
7.50% due 1/1/17 1,023,164
1,600,000 A-1+ Chicago AMBAC-Insured, PART, 3.28%(b) 1,600,000
3,000,000 A-1+ Elmhurst, IL, (Joint Commission Accreditation
Healthcare), 3.45%(b) 3,000,000
1,600,000 A-1+ Illinois Education Facilities Authority,
National Louis College, 3.45%(b) 1,600,000
1,600,000 VMIG 1* Illinois Education Facilities Authority,
Museum of Science, 3.15%(b) 1,600,000
1,815,000 AAA Illinois State Sales Tax, Series K, (Pre-Refunded
-- Escrowed with Government Securities to 6/15/99 Call
@ 102), 7.00% due 6/15/19 1,880,878
2,000,000 A-1+ Lisle, IL MFH, (Ashley of Lisle Project), 3.20%(b) 2,000,000
- -----------------------------------------------------------------------------------------------
12,704,042
- -----------------------------------------------------------------------------------------------
Indiana -- 2.4%
1,000,000 SP-1+ Indiana Bond Bank, Series A-2, 4.00%, due 1/20/99 1,000,530
1,255,000 A-1+ Marion Economic Development Revenue Synectic
Partnership, 3.28%(b) 1,255,000
- -----------------------------------------------------------------------------------------------
2,255,530
- -----------------------------------------------------------------------------------------------
Kentucky -- 2.2%
1,000,000 VMIG 1* Futon County (United Healthcare Hospital Co.) 3.15%(b) 1,000,000
1,000,000 NR+ Hancock, KY IDR, (Southwire Co. Project)
Series 92A, 3.60%(b) 1,000,000
- -----------------------------------------------------------------------------------------------
2,000,000
- -----------------------------------------------------------------------------------------------
Louisiana -- 1.1%
1,000,000 A-1+ Jefferson Parish Service District-West Jefferson
Medical Center, 3.15%(b) 1,000,000
- -----------------------------------------------------------------------------------------------
Maryland -- 2.5%
2,300,000 A-1+ Baltimore PCR, (SCM Plants Project), 3.45%(b) 2,300,000
- -----------------------------------------------------------------------------------------------
Massachusetts-- 2.4%
2,200,000 A-1+ Massachusetts GO, Series A, 3.40%(b) 2,200,000
- -----------------------------------------------------------------------------------------------
Michigan-- 1.1%
1,000,000 A-1+ Michigan State JOB, Gordan Food Service, 3.40%(b) 1,000,000
- -----------------------------------------------------------------------------------------------
Minnesota-- 1.7%
1,600,000 A-1+ Duluth Lake Superior Paper Co., 3.40%(b) 1,600,000
- -----------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 9
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1998
- --------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
===============================================================================================
Missouri -- 1.1%
<C> <C> <S> <C>
$1,000,000 A-1+ Missouri State Health, (Medical Research Facilities
Stowers Institute), 3.40%(b) $1,000,000
- -----------------------------------------------------------------------------------------------
Nebraska -- 1.1%
1,000,000 AAA Omaha Public Power District, Series A,
(Pre-Refunded-- Escrowed with U.S. government
securities to 2/1/99 maturity) 1,003,223
- -----------------------------------------------------------------------------------------------
Nevada -- 1.1%
1,000,000 A-1+ Nevada State GO, PART, 3.58%(b) 1,000,000
- -----------------------------------------------------------------------------------------------
New Jersey -- 2.2%
2,000,000 A-1 New Jersey TRAN TECP, Series 1999A, 3.15% due 3/9/99 2,000,000
- -----------------------------------------------------------------------------------------------
New Mexico -- 1.1%
1,000,000 SP-1+ New Mexico TRAN, Series 98-99, 4.25% due 6/30/99 1,003,627
- -----------------------------------------------------------------------------------------------
Ohio -- 3.2%
1,000,000 VMIG 1* Franklin County Hospital Facilities Revenue,
(U.S. Health Corp.), 3.40%(b) 1,000,000
2,000,000 NR++ Oakwood Village, OH IDR (Sennett Steel Corp. PJ), 3.25%(b) 2,000,000
- -----------------------------------------------------------------------------------------------
3,000,000
- -----------------------------------------------------------------------------------------------
Oregon -- 4.0%
3,750,000 VMIG 1* Hillsboro, OR Graduate Center Institute, 3.50%(b) 3,750,000
- -----------------------------------------------------------------------------------------------
Pennsylvania-- 3.2%
1,000,000 SP-1+ Philadelphia TRAN, Series A, 4.25% due 6/30/99 1,003,459
1,000,000 SP-1+ Philadelphia School District TRAN, Series A,
4.25% due 6/30/99 1,003,425
1,000,000 A-1 York General Authority, Pooled Financing, 3.45%(b) 1,000,000
- -----------------------------------------------------------------------------------------------
3,006,884
- -----------------------------------------------------------------------------------------------
South Carolina -- 1.3%
1,200,000 SP-1+ Piedmont Muni Power Agency, MBIA-Insured,
Series A, 3.15%(b) 1,200,000
- -----------------------------------------------------------------------------------------------
Tennessee -- 2.7%
1,500,000 VMIG 1* Clarksville Public Building Authority, Series 97, 3.45%(b) 1,500,000
1,000,000 AAA Tennessee Energy Acquisition, AMBAC-Insured,
3.75% due 9/1/99 1,002,187
- -----------------------------------------------------------------------------------------------
2,502,187
- -----------------------------------------------------------------------------------------------
Texas -- 11.8%
2,000,000 A-1+ Bexar County Health Facilities Retirement
Community, 3.40%(b) 2,000,000
1,000,000 A-1+ Bextar County MFH (Windbridge Apartments
Project), 3.40%(b) 1,000,000
1,700,000 A-1+ Harris County, Toll Road, Series E, 3.05%(b) 1,700,000
1,000,000 A-1+ Houston, TX Go, Series A, TECP, 3.05% due 3/15/99 1,000,000
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
10 1998 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1998
- --------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
===============================================================================================
<C> <C> <S> <C>
Texas -- 11.8% (continued)
$1,700,000 NR+ Montgomery County, IDA, (Medical Manufacturing
Partnership Project), 3.50%(b) $1,700,000
1,675,000 A-1+ Texas Higher Education Authority, FGIC-Insured, 3.15%(b) 1,675,000
1,900,000 VMIG 1* Texas Small Business, IDR, 3.20%(b) 1,900,000
- -----------------------------------------------------------------------------------------------
10,975,000
- -----------------------------------------------------------------------------------------------
Utah -- 1.1%
1,000,000 AAA Salt Lake City, UT Hospital Revenue (Pre-Refunded --
Escrowed with U.S. government securities to
2/15/99 @ 102), 7.60% due 2/15/20 1,027,786
- -----------------------------------------------------------------------------------------------
Virginia -- 3.3%
1,000,000 A-1 Alexandria, VA IDR, (Pooled Loan Program),
Series A, 3.45%(b) 1,000,000
2,100,000 A-1+ Brunswick County, VA IDA, (Ageis Waster
Solution), 3.50%(b) 2,100,000
- -----------------------------------------------------------------------------------------------
3,100,000
- -----------------------------------------------------------------------------------------------
Washington -- 1.3%
1,000,000 A-1+ Pierce County, Economic Development Authority,
(Weyerhaeuser Real Estate Project), 3.15%(b) 1,000,000
200,000 A-1+ Washington State Public Power Supply System,
Series 98-3A, MBIA-Insured, 3.00%(b) 200,000
- -----------------------------------------------------------------------------------------------
1,200,000
- -----------------------------------------------------------------------------------------------
Wisconsin -- 2.2%
2,000,000 NR++ Wisconsin State Go, Series A, 4.25% due 5/1/99 2,004,813
- -----------------------------------------------------------------------------------------------
Wyoming-- 1.2%
1,150,000 A-1+ Green River Power Rhone-Poulene, Series 92 A, 3.25%(b) 1,150,000
- -----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $92,874,098**) $92,874,098
===============================================================================================
</TABLE>
(a) All ratings are by Standard & Poor's Rating Services, except those which
are identified by an asterisk (*), are rated by Moody's Investors Service
Inc.
(b) Variable rate obligation payable at par on demand at any time on no more
than seven days notice.
NR+ Security has not been rated by either Moody's Investors Service or Standard
& Poor's Rating Services. However, the Board of Directors has determined
this security to be considered as a first tier quality issue due to
enhancement features; such as insurance and/or an irrevocable letter of
credit.
NR++ Security has been rated by either Moody's Investors Service Inc. or
Standard & Poor's Rating Service. However, the Board of Directors has
determined that the security presents minimal credit risk
** Aggregate cost for Federal income tax purposes is substantially the same.
See page 12 for definition of ratings and certain security descriptions.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 11
<PAGE>
- --------------------------------------------------------------------------------
Bond Ratings (unaudited)
- --------------------------------------------------------------------------------
The definitions of the applicable rating symbols are set forth below:
AAA --Bonds rated "AAA" have the highest rating assigned by Standard &
Poor's Rating Services ("Standard & Poor's"). Capacity to pay interest
and repay principal is extremely strong.
- --------------------------------------------------------------------------------
Short-Term Security Ratings (unaudited)
- --------------------------------------------------------------------------------
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.
VMIG 1 --Moody's Investors Service Inc.
("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.
NR --Indicates that the bond is not rated by Moody's or Standard & Poor's.
- --------------------------------------------------------------------------------
Security Descriptions (unaudited)
- --------------------------------------------------------------------------------
AMBAC --AMBAC Indemnity Corporation
BAN --Bond Anticipation Notes
EDC --Economic Development Corporation
EFA --Educational Facilities Authority
ETM --Escrowed to Maturity
FGIC --Financial Guaranty Insurance Company
FRTC --Floating Rate Trust Certificates
FSA --Financial Security Assurance
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
MBIA --Municipal Bond Investor's Assurance Corporation
MFH --Multi-Family Housing
PART --Partnership Structure
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
USD --United School District
VHA --Veterans Housing Authority
- --------------------------------------------------------------------------------
12 1998 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) November 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Cash Government Municipal
Portfolio Portfolio Portfolio
===========================================================================================
<S> <C> <C> <C>
ASSETS:
Investments, at amortized cost $1,083,260,890 $79,657,477 $92,874,098
Cash 927 28 24,945
Interest receivable 5,352,033 902 569,844
Other assets -- 22,000 --
Prepaid expenses 245,537 101,190 63,064
- -------------------------------------------------------------------------------------------
Total Assets 1,088,859,387 79,781,597 93,531,951
- -------------------------------------------------------------------------------------------
LIABILITIES:
Dividend payable 4,122,510 317,113 207,988
Management fees payable 1,630,135 177,889 79,908
Distribution fees payable 1,973 -- --
Deferred compensation payable 1,293 -- --
Payable for securities purchased 19,898,983 -- --
Accrued expenses 131,189 15,201 19,344
- -------------------------------------------------------------------------------------------
Total Liabilities 25,786,083 510,203 307,240
- -------------------------------------------------------------------------------------------
Total Net Assets $1,063,073,304 $79,271,394 $93,224,711
===========================================================================================
NET ASSETS CONSIST OF:
Capital Stock
(25,000,000,000 shares
authorized for each Portfolio;
par value $0.00001 per share) $ 10,631 $ 793 $ 932
Capital paid in excess of
par value 1,063,062,673 79,270,601 93,224,155
Accumulated net realized loss
from security transactions -- -- (376)
- -------------------------------------------------------------------------------------------
Total Net Assets $1,063,073,304 $79,271,394 $93,224,711
===========================================================================================
Shares Outstanding:
Class A 1,063,067,743 79,270,223 93,224,591
- -------------------------------------------------------------------------------------------
Net Asset Value $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 13
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended November 30, 1998
<TABLE>
<CAPTION>
Cash Government Municipal
Portfolio Portfolio Portfolio
===========================================================================================
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $24,603,806 $2,332,517 $1,544,549
- -------------------------------------------------------------------------------------------
EXPENSES:
Management fee (Note 2) 1,191,230 115,535 118,551
Registration fee 100,000 7,000 13,000
Shareholder and system servicing fees 82,800 11,700 12,000
Custody 22,800 4,500 6,000
Audit and legal 17,000 8,000 6,500
Shareholder communications 13,000 3,000 1,000
Directors' fees 10,000 5,500 6,000
Distribution fees (Note 2) 2,896 -- 292
Rating service fees -- 7,000 --
Other 7,000 1,500 1,700
- -------------------------------------------------------------------------------------------
Total Expenses 1,446,726 163,735 165,043
Less: Management fee waivers (Note 2) (433,927) (65,373) (64,181)
- -------------------------------------------------------------------------------------------
Net Expenses 1,012,799 98,362 100,862
- -------------------------------------------------------------------------------------------
Net Investment Income 23,591,007 2,234,155 1,443,687
- -------------------------------------------------------------------------------------------
Net Realized Gain From
Security Transactions 9,309 3,619 981
- -------------------------------------------------------------------------------------------
Increase in Net Assets
From Operations $23,600,316 $2,237,774 $1,444,668
===========================================================================================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
14 1998 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
For the Six Months Ended November 30, 1998 (unaudited)
and the Year Ended May 31, 1998
Cash Portfolio November 30 May 31
==============================================================================
OPERATIONS:
Net investment income $ 23,591,007 $ 30,641,549
Net realized gain 9,309 6,986
- -------------------------------------------------------------------------------
Increase in Net Assets From Operations 23,600,316 30,648,535
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (23,600,307) (30,642,659)
Net realized gain -- (324)
- -------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (23,600,307) (30,642,983)
- -------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 2,944,451,446 4,848,429,756
Net asset value of shares issued
for reinvestment of dividends 22,920,082 26,496,571
Cost of shares reacquired (2,755,080,814) (4,240,204,283)
- -------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 212,290,714 634,722,044
- -------------------------------------------------------------------------------
Increase in Net Assets 212,290,723 634,727,596
NET ASSETS:
Beginning of period 850,782,581 216,054,985
- -------------------------------------------------------------------------------
End of period $ 1,063,073,304 $ 850,782,581
===============================================================================
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 15
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended November 30, 1998 (unaudited)
and the Year Ended May 31, 1998
Government Portfolio November 30 May 31
==============================================================================
OPERATIONS:
Net investment income $ 2,234,155 $ 6,399,088
Net realized gain 3,619 --
- ------------------------------------------------------------------------------
Increase in Net Assets From Operations 2,237,774 6,399,088
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (2,238,487) (6,397,204)
Net realized gain -- --
- ------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (2,238,487) (6,397,204)
- ------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 330,512,141 630,868,183
Net asset value of shares issued
for reinvestment of dividends 2,278,318 6,477,905
Cost of shares reacquired (342,001,933) (700,704,603)
- ------------------------------------------------------------------------------
Decrease in Net Assets From
Fund Share Transactions (9,211,474) (63,358,515)
- ------------------------------------------------------------------------------
Decrease in Net Assets (9,212,187) (63,356,631)
NET ASSETS:
Beginning of period 88,483,581 151,840,212
- ------------------------------------------------------------------------------
End of period $ 79,271,394 $ 88,483,581
==============================================================================
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
16 1998 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended November 30, 1998 (unaudited)
and the Year Ended May 31, 1998
Municipal Portfolio November 30 May 31
===============================================================================
OPERATIONS:
Net investment income $ 1,443,687 $ 2,354,445
Net realized gain (loss) 981 (1,067)
- -------------------------------------------------------------------------------
Increase in Net Assets From Operations 1,444,668 2,353,378
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (1,444,496) (2,353,139)
Net realized gain -- (440)
- -------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (1,444,496) (2,353,579)
- -------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 500,707,780 780,950,264
Net asset value of shares issued
for reinvestment of dividends 1,465,226 2,114,140
Cost of shares reacquired (494,619,413) (721,059,255)
- -------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 7,553,593 62,005,149
- -------------------------------------------------------------------------------
Increase in Net Assets 7,553,765 62,004,948
NET ASSETS:
Beginning of period 85,670,946 23,665,998
- -------------------------------------------------------------------------------
End of period $ 93,224,711 $ 85,670,946
===============================================================================
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 17
<PAGE>
- --------------------------------------------------------------------------------
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
accounted for on trade date; (b) the Portfolios use the amortized cost method
for valuing investments; accordingly, the cost of securities plus accreted
discount, or minus amortized premium, approximates value;(c) interest income is
recorded on an accrual basis; (d) expenses are charged to each Portfolio and
each class; management fees and general fund expenses are allocated on the
basis of relative net assets; (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; and (f) estimates and assumptions are required to be made
regarding assets, liabilities and changes in net assets resulting from
operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ.
2.Management Agreement and Other Transactions
Mutual Management Corp. ("MMC"), a subsidiary of Salomon Smith Barney
Holdings, Inc. ("SSBH"), acts as investment manager of the Fund. As compensation
for its services, each Portfolio pays MMC a management fee calculated at an
annual rate of 0.27% of the average daily net assets of each Portfolio. This fee
is calculated daily and paid monthly.
For the six months ended November 30, 1998, MMC waived management fees of
$433,927, $65,373 and $64,181 for the Cash, Government and Municipal
Portfolios, respectively.
On October 8,1998, CFBDS, Inc. became the Fund's distributor. Prior to that date
Salomon Smith Barney Inc. ("SSB"), another subsidiary of SSBH, was the Fund's
distributor. SSB, as well as certain other broker-dealers, continues to sell
Fund shares to the public as members of the selling group.
- --------------------------------------------------------------------------------
18 1998 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
- --------------------------------------------------------------------------------
Pursuant to a Distribution Plan, the Fund pays a service fee with respect to its
Class B shares calculated at an annual rate of 0.25% of the average daily net
assets of each Portfolio's Class B shares. For the six months ended November
30, 1998, total Distribution Plan fees incurred were:
Cash Government Municipal
================================================================================
Distribution Plan Fees $2,896 -- $292
================================================================================
All officers and one Director of the Fund are employees of SSB.
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 are exempt from regular 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, 1998, 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. Each share of a class
represents an identical interest and has the same rights, except that each class
bears certain direct expenses, including those specifically related to the
distribution of its shares.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 19
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
- --------------------------------------------------------------------------------
Transactions in shares of each Portfolio were as follows:
Six Months Ended Year Ended
November 30, 1998 May 31, 1998
================================================================================
Cash Portfolio -- Class A Shares
Shares sold 2,944,451,446 4,843,709,377
Shares issued on reinvestment 22,920,082 26,444,115
Shares redeemed (2,755,080,814) (4,237,831,783)
- --------------------------------------------------------------------------------
Net Increase 212,290,714 632,321,709
================================================================================
Cash Portfolio -- Class B Shares (a)(b)
Shares sold 5,000,000 4,720,379
Shares issued on reinvestment 61,113 52,456
Shares redeemed (7,461,448) (2,372,500)
- --------------------------------------------------------------------------------
Net Increase (Decrease) (2,400,335) 2,400,335
================================================================================
Government Portfolio
Shares sold 330,512,141 630,868,183
Shares issued on reinvestment 2,278,318 6,477,905
Shares redeemed (342,001,933) (700,704,603)
- --------------------------------------------------------------------------------
Net (Decrease) (9,211,474) (63,358,515)
================================================================================
Municipal Portfolio -- Class A Shares
Shares sold 500,707,780 774,368,714
Shares issued on reinvestment 1,465,226 2,105,943
Shares redeemed (494,619,413) (714,469,508)
- --------------------------------------------------------------------------------
Net Increase 7,553,593 62,005,149
================================================================================
Municipal Portfolio -- Class B Shares (c)
Shares sold -- 6,581,550
Shares issued on reinvestment -- 8,197
Shares redeemed -- (6,589,747)
- --------------------------------------------------------------------------------
Net Increase -- --
================================================================================
(a) Transactions are for the period from October 28, 1997 (inception date) to
May 31, 1998.
(b) As of November 30, 1998, Class B shares were fully redeemed.
(c) As of May 31, 1998, Class B shares were fully redeemed.
- --------------------------------------------------------------------------------
20 1998 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended May 31, except where noted:
<TABLE>
<CAPTION>
Class A Shares
-------------------------------------------------------------
Cash Portfolio 1998(1) 1998 1997 1996(2)
===========================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
Net investment income (3) 0.027 0.055 0.052 0.053
Distributions from net investment income (0.027) (0.055) (0.052) (0.053)
Distributions from net realized gains -- (0.000)* -- --
- -----------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
Total Return 2.72%++ 5.58% 5.35% 5.44%++
- -----------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $1,063,068 $848,383 $216,055 $277,572
- -----------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses (3)(4) 0.23%+ 0.23% 0.23% 0.15%+
Net investment income 5.40+ 5.43 5.23 5.43+
===========================================================================================================
</TABLE>
(1) For the six months ended November 30, 1998 (unaudited).
(2) For the period from June 16, 1995 (inception date) to May 31, 1996.
(3) The Manager has waived a portion of its fees for the Portfolio for the
period ended November 30, 1998, for the years ended May 31, 1998, 1997 and
the period ended May 31, 1996. If the Manager had not agreed to the fee
waiver, the per share effect on net investment income and the ratio of
expenses to average net assets for the Class A shares would have been:
Per Share
Decrease to Net Expense Ratio
Investment Income Without Fee Waiver
--------------------------------- ----------------------------
1998(1) 1998 1997 1996 1998(1) 1998 1997 1996
-------- ------ ------ ------ ------- ----- ----- ------
Class A $0.000(*) $0.001 $0.001 $0.001 0.32%+ 0.35% 0.36% 0.39%+
(4) As a result of a voluntary expense limitation, the ratio of expenses to
average net assets of the Portfolio will not exceed 0.23%.
* Amount represents less than $0.001.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 21
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended May 31, except where noted:
Class B Shares
-------------------
Cash Portfolio 1998(1) 1998(2)
==============================================================================
Net Asset Value, Beginning of Period $1.00 $1.00
- ------------------------------------------------------------------------------
Net investment income (3) 0.022 0.031
Distributions from net investment income (0.022) (0.031)
Distributions from net realized gains -- --
- ------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00
- ------------------------------------------------------------------------------
Total Return++ 2.23% 3.13%
- ------------------------------------------------------------------------------
Net Assets, End of Period (000s) $0 $2,400
- ------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses (3)(4) 0.48% 0.47%
Net investment income 4.80 5.21
==============================================================================
(1) For the six months ended November 30, 1998 (unaudited).
(2) For the period from October 28, 1997 (inception date) to May 31, 1998.
(3) The Manager has waived a portion of its fees for the Portfolio for the
periods ended November 30, 1998 and May 31, 1998.If the Manager had not
agreed to the fee waiver, the per share effect on net investment income and
the ratio of expenses to average net assets for the Class B shares would
have been:
Per Share
Decrease to Net Expense Ratio
Investment Income Without Fee Waiver
------------------- ------------------
1998(1) 1998 1998(1) 1998
------- ---- ------- ----
Class B $0.000* $0.000* 0.57%+ 0.48+
(4) As a result of a voluntary expense limitation, the ratio of expenses to
average net assets of the Portfolio will not exceed 0.48%.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
22 1998 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended May 31, except where noted:
<TABLE>
<CAPTION>
Government Portfolio 1998(1) 1998 1997 1996(2)
===============================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------
Net investment income (3) 0.026 0.053 0.052 0.052
Distributions from net investment income (0.026) (0.053) (0.052) (0.052)
Distributions from net realized gains -- -- (0.000)* (0.000)*
- -----------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------
Total Return 2.65%++ 5.46% 5.29% 5.36%++
- -----------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $79,271 $88,484 $151,840 $57,698
- -----------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses (3)(4) 0.23%+ 0.23% 0.21% 0.16%+
Net investment income 5.29+ 5.33 5.18 5.28+
===============================================================================================
</TABLE>
(1) For the six months ended November 30, 1998 (unaudited).
(2) For the period from June 16, 1995 (commencement of operations) to May 31,
1996.
(3) The Manager has waived a portion of its fees for the Portfolio for the
period ended November 30, 1998, for the years ended May 31, 1998, 1997 and
the period ended May 31, 1996. If the Manager had not agreed to the fee
waiver, the per share effect on net investment income and the ratio of
expenses to average net assets would have been:
Per Share
Decrease to Net Expense Ratio
Investment Income Without Fee Waiver
------------------------------- -----------------------------
1998(1) 1998 1997 1996 1998(1) 1998 1997 1996
------- ------ ------ ------ ------- ----- ----- ------
$0.001 $0.002 $0.001 $0.002 0.38%+ 0.39% 0.43% 0.55%+
(4) As a result of a voluntary expense limitation, the ratio of expenses to
average net assets of the Portfolio will not exceed 0.23%.
* Amount represents less than $0.001.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 23
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended May 31, except where noted:
<TABLE>
<CAPTION>
Municipal Portfolio 1998(1) 1998 1997 1996(2)
===================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------
Net investment income (3) 0.016 0.035 0.034 0.035
Distributions from net investment income (0.016) (0.035) (0.034) (0.035)
Distributions from net realized gains -- (0.000)* -- --
- ---------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------
Total Return 1.66%++ 3.56% 3.40% 3.55%++
- ---------------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $93,225 $85,671 $23,666 $59,308
- ---------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses (3)(4) 0.23%+ 0.23% 0.21% 0.15%+
Net investment income 3.37+ 3.50 3.34 3.46+
===================================================================================================
</TABLE>
(1) For the six months ended November 30, 1998 (unaudited).
(2) For the period from June 16, 1995 (commencement of operations) to May 31,
1996.
(3) The Manager has waived all or part of its fees for the Portfolio for the
period ended November 30, 1998, for the years ended May 31, 1998, 1997 and
the period ended May 31, 1996. In addition, the Manager agreed to reimburse
the Portfolio for $63,835 in expenses for the period ended May 31, 1996. If
the Manager had not agreed to the fee waiver and the expense reimbursement,
the per share effect on net investment income and the ratio of expenses to
average net assets would have been:
Per Share Expense Ratio
Decrease to Net Without Fee Waiver
Investment Income and Reimbursement
------------------------------- -----------------------------
1998(1) 1998 1997 1996 1998(1) 1998 1997 1996
------- ------ ------ ------ ------- ----- ----- ------
$0.001 $0.001 $0.004 $0.003 0.38%+ 0.41% 0.41% 0.69%+
(4) As a result of a voluntary expense limitation, the ratio of expenses to
average net assets of the Portfolio will not exceed 0.23%.
(*) Amount represents less than $0.001.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
24 1998 Semi-Annual Report to Shareholders
<PAGE>
SalomonSmithBarney
- -----------------------------------
A member of citigroup[LOGO]
Directors
Paul R. Ades
Herbert Barg
Dwight B. Crane
Frank G. Hubbard
Heath B. McLendon, Chairman
Jerome Miller
Ken Miller
John F. White, Emeritus
Officers
Heath B. McLendon
President and
Chief Executive Officer
Lewis E. Daidone
Senior Vice President
and Treasurer
Phyllis Zahorodny
Vice President and
Investment Officer
Lawrence T. McDermott
Vice President and
Investment Officer
Joseph Benevento
Vice President and
Investment Officer
Irving P. David
Controller
Christina T. Sydor
Secretary
Investment Manager
Mutual Management Corp.
Distributor
CFBDS, Inc.
Custodian
PNC Bank, N.A.
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 a
current Prospectus for the Fund, which contains information concerning the
Fund's investment policies and expenses as well as other pertinent information.
Salomon Smith Barney is a service mark of Salomon Smith Barney Inc.
Smith Barney
Institutional Cash
Management Fund, Inc.
388 Greenwich Street, MF-2
New York, New York 10013
www.smithbarney.com
FD2405 1/99
