<PAGE>
[LOGO OF SMITH BARNEY]
SMITH BARNEY
INSTITUTIONAL CASH
MANAGEMENT Fund, Inc.
ANNUAL REPORT
MAY 31, 2000
[LOGO OF SMITH BARNEY MUTUAL FUNDS]
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
<PAGE>
Smith Barney Institutional Cash Management Fund, Inc.
[PHOTO]
HEATH B. MCLENDON
Chairman
[PHOTO]
PHYLLIS ZAHORODNY
Vice President and Investment Officer
[PHOTO]
JOSEPH BENEVENTO
Vice President and Investment Officer
[PHOTO]
JOSEPH P. DEANE
Vice President and Investment Officer
Dear Shareholder:
We are pleased to provide the annual report for Smith Barney Institutional Cash
Management Fund, Inc. ("Fund") for the fiscal year ended May 31, 2000. For your
convenience, we have summarized the periods prevailing economic and market
conditions and portfolio strategy below.(1) In addition, a more detailed summary
of performance and current holdings can be found in the appropriate sections
that follow.(2)
Performance Summary
The Fund seeks maximum current income and preservation of capital. The chart
below provides the yields for the Cash, Government and Municipal Portfolios
("Portfolio(s)") that make up the Fund for the year ended May 31, 2000.
Smith Barney Institutional Cash Management Fund
Yields for Class A Shares
Portfolio Seven-Day Current Yield 30-Day Yield
--------------------------------------------------------------------------------
Cash 6.31% 6.12%
Government 6.17 5.96
Municipal 3.90 4.24
-----------
1 The information provided represents the opinion of the managers and is not
intended to be a forecast of future events, a guarantee of future results
nor investment advice. Further, there is no assurance that certain
securities will remain in or out of the Portfolios.
2 Please note the Fund's holdings are subject to change and any discussion of
the holdings is as of May 31, 2000. Please refer to pages 4 through 11 for
a complete list and percentage breakdown of the Funds holdings.
--------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 1
<PAGE>
Please note that your investment is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
the Fund seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Fund.
Cash and Government Portfolio Updates and Strategies
The Cash Portfolio's average life was shortened from an average 60 days to 45
days and the Government Portfolio's average life was shortened from 35 to 25
days during the reporting period as we expected short-term interest rates to
rise. Currently, our target will be to keep the Cash Portfolio's average life at
or below 50 days and keeping the Government Portfolio's average life at roughly
35 days. We believe that a peak in short-term interest rates may occur later on
this year or early in 2001 and we may extend accordingly.
Moreover, we continue to purchase high-quality banks and corporate securities
during the period. We have added several new issues to our approved list such as
British Telecommunications ("BT"), Bell Atlantic Network Funding and Exxon/Mobil
Australia, all of which maintain a large market share in their respective
industries.
Municipal Money Market Update and Strategy
As of May 31, 2000, the average maturity of the Municipal Portfolio was 20 days,
however, going forward we plan to increase the Portfolio's average maturity. Our
approach to the municipal note market has been to continue to focus on the high
quality and more liquid sectors.
Market Update and Outlook
In late 1999, the Federal Reserve Board ("Fed") raised rates from 4.75% to 5.50%
to reverse the interest rate cuts the Fed made as the emerging markets and
overall global crisis receded. (The federal funds rate is the interest rate
charged by Federal Reserve district banks with excess reserves to banks needing
overnight loans to meet reserve requirements.)
Three quarters of above 5% Gross Domestic Product ("GDP") growth with rising
inflation, an over-exuberant stock market and tight labor markets prompted the
Fed to step up its pace of monetary tightening. Since the beginning of the year
the Fed implemented three interest rate increases totaling 100 basis points,
with its latest rate hike of 50 basis points at its May 16th Federal Open-Market
Committee meeting. The federal funds rate is now targeted at 6.50%.
The second quarter is anticipated to temporarily slow in response to weaker
consumption data, but it is expected that GDP will remain at about 4.5%; a level
the Fed sees as too high and potentially fostering inflationary
--------------------------------------------------------------------------------
2 2000 Annual Report to Shareholders
<PAGE>
imbalances. It seems that higher labor costs have already imbedded themselves
into the cost structure of firms and into the economy which concerns Fed
policymakers. The Fed, as well as market participants, may watch future economic
numbers to discern how many more interest rate increases are required to slow
growth further. At this point, various Wall Street economists and portfolio
managers are suggesting another 50 basis point increase over the remainder of
the year.
In closing, thank you for investing in the Smith Barney Institutional Cash
Management Fund, Inc. We hope the Fund has been a convenient, cost-effective and
competitive investment 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/ Joseph P. Deane /s/ Joseph Benevento
Joseph P. Deane Joseph Benevento
Vice President and Vice President and
Investment Officer Investment Officer
June 23, 2000
--------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 3
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments May 31, 2000
--------------------------------------------------------------------------------
CASH PORTFOLIO
<TABLE>
<CAPTION>
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BANK NOTES -- 1.8%
$10,000,000 Bank of America Corp. matures 6/1/00 6.13% $10,000,000
25,000,000 First Union National Bank matures 2/20/01 6.80 25,000,000
----------------------------------------------------------------------------------------------------------------
TOTAL BANK NOTES
(Cost -- $35,000,000) 35,000,000
================================================================================================================
COMMERCIAL PAPER -- 61.9%
30,000,000 Aegon Funding Corp. matures 6/21/00 6.52 29,891,833
20,000,000 Atlantis One Funding Corp. matures 6/9/00 6.55 19,971,022
30,000,000 Bank Brussels Lambert matures 6/16/00 6.53 29,918,875
25,000,000 Bank of America Corp. matures 8/10/00 6.69 24,680,139
13,534,000 Bank One Financial Corp. matures 7/10/00 6.65 13,437,232
30,000,000 Barclays US Funding Corp. matures 6/19/00 6.52 29,902,800
29,169,000 Baus Funding LLC matures 6/16/00 6.53 29,090,001
25,000,000 BCI Funding Corp. matures 6/5/00 6.12 24,983,167
25,000,000 Bell Atlantic Financial Services matures 8/11/00 6.72 24,673,104
43,475,000 Bell Atlantic Network Funding
mature 6/1/00 to 6/21/00 6.10 to 6.47 43,409,106
20,000,000 Bellsouth Telecommunications Inc.
matures 6/22/00 6.51 19,924,517
25,000,000 Cariplo Finance Inc. matures 6/22/00 6.53 24,905,354
20,000,000 Centric Capital Corp. matures 6/19/00 6.56 19,934,800
30,000,000 CIT Group Holdings Inc. matures 6/21/00 6.56 29,891,333
25,000,000 DaimlerChrysler N.A. matures 6/12/00 6.10 24,954,090
40,000,000 Deutsche Bank Financial Inc. matures 6/1/00 6.04 to 6.23 40,000,000
25,000,000 Falcon Asset Securitization Corp. matures 6/22/00 6.56 24,904,917
30,000,000 Ford Motor Credit matures 6/23/00 6.52 29,881,200
50,000,000 Fortis Funding LLC mature 6/6/00 to 6/30/00 6.07 to 6.53 49,826,547
50,000,000 General Electric Capital Corp.
mature 6/5/00 to 6/16/00 6.05 to 6.54 49,915,736
40,000,000 General Motors Acceptance Corp.
mature 6/8/00 to 8/9/0 6.06 to 6.69 39,724,660
25,000,000 Glaxo Welcome PLC matures 6/26/00 6.51 24,887,674
50,000,000 Goldman Sachs & Co. mature 6/5/00 to 6/28/00 6.33 to 6.53 49,860,840
20,000,000 Halifax PLC matures 6/6/00 6.04 19,983,472
25,000,000 J.P. Morgan & Co. matures 6/2/00 6.28 24,995,660
26,309,000 Kitty Hawk matures 6/28/00 6.55 26,180,546
25,000,000 Lloyds Bank matures 6/2/00 6.03 24,995,875
25,000,000 Lucent Technologies, Inc. matures 6/15/00 6.51 24,937,097
46,997,000 Monte Rosa matures 7/17/00 6.60 46,605,463
20,000,000 Morgan Stanley Dean Witter & Co.
matures 6/2/00 6.04 19,996,694
29,652,000 Pfizer Inc. matures 6/12/00 6.50 29,593,380
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
4 2000 Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (continued) May 31, 2000
--------------------------------------------------------------------------------
CASH PORTFOLIO
<TABLE>
<CAPTION>
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER -- 61.9% (continued)
$25,000,000 Proctor & Gamble matures 6/6/00 6.28% $ 24,978,333
25,000,000 Province de Quebec matures 10/23/00 6.68 24,353,000
24,500,000 Quincy Capital Corp. matures 6/9/00 6.56 24,464,448
25,000,000 Receivables Capital Corp. matures 6/9/00 6.56 24,963,722
50,000,000 Sara Lee Corp. mature 6/8/00 to 6/29/00 6.26 to 6.52 49,843,764
30,000,000 SBC Communications Corp. matures 6/22/00 6.53 29,886,425
45,000,000 TransAmerica Finance Corp.
mature 6/9/00 to 8/7/00 6.54 to 6.71 44,772,283
24,742,000 Wal-Mart Stores Inc. matures 6/16/00 6.52 24,675,197
25,000,000 Wells Fargo Corp. matures 7/5/00 6.65 24,844,167
----------------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost -- $1,188,638,363) 1,188,638,363
================================================================================================================
FOREIGN CERTIFICATES OF DEPOSIT -- 21.3%
25,000,000 Abbey National PLC matures 2/7/01 6.75 24,991,844
15,000,000 ANZ Banking Group Ltd. matures 5/2/01 7.00 14,997,393
25,000,000 Banque Nationale de Paris matures 8/18/00 6.74 25,000,532
15,000,000 Bayerische Hypo-Und Vereinsbank AG
matures 7/12/00 5.75 14,999,193
25,500,000 Canadian Imperial Bank of Commerce
matures 8/8/00 6.74 25,494,253
30,000,000 Harris Bank matures 6/23/00 6.53 30,000,000
33,000,000 Hessische Landesbank matures 9/29/00 6.28 32,950,482
20,000,000 Lloyds Bank matures 7/20/00 6.22 19,999,705
45,000,000 National Westminster Bank
mature 7/10/00 to 8/18/00 6.20 to 6.73 44,998,563
25,000,000 Rabo Bank matures 2/14/01 6.70 24,996,645
25,000,000 Societe Generale NY matures 8/18/00 6.75 24,998,403
30,000,000 Svenska Handelsbanken matures 6/23/00 6.53 30,000,365
45,000,000 Toronto Dominion mature 6/8/00 to 7/20/00 6.03 to 6.22 44,999,705
25,000,000 Union Bank of Switzerland matures 5/3/01 7.07 24,997,823
25,000,000 Westdeutsche Landesbank matures 5/3/01 7.07 25,002,177
----------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN CERTIFICATES OF DEPOSIT
(Cost -- $408,427,083) 408,427,083
================================================================================================================
MEDIUM-TERM NOTES -- 3.1%
10,000,000 Abbey National PLC matures 7/24/00 5.70 9,999,304
25,000,000 AT&T Corp. matures 3/8/01 6.67 25,000,000
25,000,000 Merrill Lynch matures 5/8/01 7.17 25,000,000
----------------------------------------------------------------------------------------------------------------
TOTAL MEDIUM-TERM NOTES
(Cost -- $59,999,304) 59,999,304
================================================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 5
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (continued) May 31, 2000
--------------------------------------------------------------------------------
CASH PORTFOLIO
<TABLE>
<CAPTION>
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TIME DEPOSITS -- 10.9%
$75,000,000 Banc One matures 6/1/00 6.81% $ 75,000,000
60,000,000 Canadian Imperial Bank Commerce matures 6/1/00 6.78 60,000,000
75,000,000 Chase Manhattan Bank matures 6/1/00 6.81 75,000,000
----------------------------------------------------------------------------------------------------------------
TOTAL TIME DEPOSITS
(Cost -- $210,000,000) 210,000,000
================================================================================================================
DOMESTIC CERTIFICATES OF DEPOSIT -- 0.8%
15,000,000 First Union NA matures 6/2/00
(Cost -- $15,000,000) 5.56 15,000,000
================================================================================================================
REPURCHASE AGREEMENT -- 0.2%
3,758,000 Morgan Stanley Dean Witter & Co., 6.33% due 6/1/00;
Proceeds at maturity -- $3,758,661; (Fully collateralized
by U.S. Treasury Bills, due 11/2/00; Market value -- $3,857,190)
(Cost -- $3,758,000) 3,758,000
================================================================================================================
TOTAL INVESTMENTS 100%
(Cost -- $1,920,822,750*) $1,920,822,750
================================================================================================================
</TABLE>
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
6 2000 Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (continued) May 31, 2000
--------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
<TABLE>
<CAPTION>
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCIES AND INSTRUMENTALITIES -- 94.5%
$34,000,000 Federal Farm Credit Bank
mature 6/1/00 to 12/26/00 6.30% to 6.40% $ 33,900,644
32,000,000 Federal Home Loan Bank
mature 6/1/00 to 8/16/00 6.08 to 6.37 31,923,779
31,269,000 Federal Home Loan Mortgage Corp.
mature 6/2/00 to 7/11/00 6.05 to 6.52 31,154,351
30,528,000 Federal National Mortgage Association
mature 6/1/00 to 8/3/00 6.04 to 6.56 30,402,905
----------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
AND INSTRUMENTALITIES
(Cost -- $127,381,679) 127,381,679
================================================================================================================
REPURCHASE AGREEMENTS -- 5.5%
3,000,000 Morgan Guaranty, 6.35% due 6/1/00; Proceeds at maturity --
$3,000,529; (Fully collateralized by U.S. Treasury Notes,
11.25% due 2/15/15; Market value -- $3,060,589) 3,000,000
4,479,000 Morgan Stanley Dean Witter & Co., 6.33% due 6/1/00;
Proceeds at maturity $4,479,788; (Fully collateralized by
U.S. Treasury Notes, 5.13% due 8/31/00; Market value -- $4,592,579) 4,479,000
----------------------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost -- $7,479,000) 7,479,000
================================================================================================================
TOTAL INVESTMENTS 100%
(Cost -- $134,860,679*) $134,860,679
================================================================================================================
</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 (continued) May 31, 2000
--------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Delaware -- 2.1%
$1,707,500 A-1 New Castle County, EDA Refunding
(Henderson McGuire Project), 4.35% VRDO $1,707,500
-----------------------------------------------------------------------------------------------
Florida -- 8.0%
2,325,000 A-1+ Lee County, FL IDR, (Hope Hospice Project), 4.45% VRDO 2,325,000
3,000,000 A-1+ Martin County, FL Light & Power Revenue, 4.40% VRDO 3,000,000
1,100,000 A-1 Pinellas County, FL HFA Revenue, Mease Manor Inc.,
4.35% VRDO 1,100,000
-----------------------------------------------------------------------------------------------
6,425,000
-----------------------------------------------------------------------------------------------
Georgia -- 2.5%
2,000,000 AAA Georgia GO, PART, FGIC-Insured, Series B,
5.75% due 7/1/00 2,003,274
-----------------------------------------------------------------------------------------------
Hawaii -- 3.3%
2,695,000 VMIG 1* Honolulu, Hawaii GO, PART, FGIC-Insured, 4.55% VRDO 2,695,000
-----------------------------------------------------------------------------------------------
Illinois -- 7.8%
800,000 A-1+ Chicago, IL (O'Hare, International Airport Revenue),
Series A, 3.95% VRDO 800,000
2,000,000 SP-1 Chicago, IL Park District, Tax Anticipation Warrants,
4.38% due 9/15/00 2,004,202
1,500,000 VMIG 1* Chicago, IL Water Revenue, Series 1998, PART,
FGIC-Insured, 4.25% VRDO 1,500,000
2,000,000 VMIG 1* Illinois Development Finance Authority,
(St. Francis Health Project), PART, 4.50% VRDO 2,000,000
-----------------------------------------------------------------------------------------------
6,304,202
-----------------------------------------------------------------------------------------------
Indiana -- 1.6%
1,302,500 VMIG 1* Munster, IN (School Building Corp. Revenue), PART,
FGIC-Insured, 4.55% VRDO 1,302,500
-----------------------------------------------------------------------------------------------
Kentucky -- 6.3%
3,000,000 A-1+ Daviess County, KY (Kimberly Clark Corp.), 4.35% VRDO 3,000,000
2,100,000 NR+ Hancock County, KY IDR, (Southwire Co. Project),
Series 92A, 4.55% VRDO 2,100,000
-----------------------------------------------------------------------------------------------
5,100,000
-----------------------------------------------------------------------------------------------
Louisiana -- 5.2%
2,185,000 SP-1+ Louisiana Public Facility Finance Authority, Series B,
4.25% due 10/24/00 2,188,495
2,000,000 AAA Louisiana State GO, FGIC-Insured, Series A,
6.00% due 8/1/00 2,006,809
-----------------------------------------------------------------------------------------------
4,195,304
-----------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
8 2000 Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (continued) May 31, 2000
--------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Maryland -- 1.1%
$ 900,000 VMIG 1* Maryland State Health & Higher Educational Facilities,
Authority Revenue, Series A, 4.30% VRDO $ 900,000
-----------------------------------------------------------------------------------------------
Massachusetts -- 2.0%
1,600,000 AAA Massachusetts Water Abatement Pool Loan, Series 4,
4.25% due 8/1/00 1,600,762
-----------------------------------------------------------------------------------------------
Michigan -- 2.5%
2,000,000 SP-1+ Michigan State Municipal Board Authority Revenue,
Notes, Series B-2, 4.25% due 8/25/00 2,003,046
-----------------------------------------------------------------------------------------------
Miscellaneous -- 1.2%
1,000,000 A-1+ Municipal Securities Pool Trust, PART, FGIC &
MBIA-Insured, 4.65% VRDO 1,000,000
-----------------------------------------------------------------------------------------------
Missouri -- 2.8%
1,600,000 A-1+ Missouri State Health & Education Facilities Authority
Revenue, St. Francis Center, Series A, 4.40% VRDO 1,600,000
700,000 NR+ Versailles IDA, IDR Refunding, (Gates Rubber Co.
Project), 4.42% VRDO 700,000
-----------------------------------------------------------------------------------------------
2,300,000
-----------------------------------------------------------------------------------------------
New Mexico -- 2.6%
2,093,000 AA New Mexico State Severance Tax, Series B,
5.00% due 7/1/00 2,095,423
-----------------------------------------------------------------------------------------------
Ohio -- 15.7%
1,500,000 A-1+ Cleveland, OH Income Tax Revenue, AMBAC-Insured,
3.85% VRDO 1,500,000
5,000,000 VMIG 1* Lorraine County, OH Catholic Health Care, Series 97A,
4.00% due 6/9/00 5,000,000
2,200,000 A-1+ Mahoning County, OH Hospital Facility Revenue,
(Forum Health Obligation Group), Series B,
MBIA-Insured, 4.39% VRDO 2,200,000
2,000,000 NR[DAG] Oakwood Village, OH IDR (Sennet Steel Corp.),
4.50% VRDO 2,000,000
2,000,000 SP-1+ Summit County, OH BAN, Series A, 3.20% due 6/1/00 2,000,000
-----------------------------------------------------------------------------------------------
12,700,000
-----------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 9
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (continued) May 31, 2000
--------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
-----------------------------------------------------------------------------------------------
<S> <C> <C>
Pennsylvania -- 3.9%
$1,500,000 VMIG 1* Doylestown, PA Hospital Revenue, Series B,
AMBAC-Insured, 4.40% VRDO $1,500,000
1,650,000 SP-1+ Philadelphia, PA TRAN, Series A-99, 3.50% due 6/30/00 1,650,949
-----------------------------------------------------------------------------------------------
3,150,949
-----------------------------------------------------------------------------------------------
South Carolina -- 3.0%
2,400,000 NR+ Sumter County, SC IDR Bendix Corp., 4.40% VRDO 2,400,000
-----------------------------------------------------------------------------------------------
Tennessee -- 9.6%
2,900,000 A-1+ Clarksville Public Building Authority Revenue, Series 95,
4.40% VRDO 2,900,000
800,000 NR+ Roane County IDB IDR, (Great Lakes Carbon Corp.),
5.50% VRDO 800,000
Sevier County, TN Public Building Authority, (Local
Government Public Improvement):
2,100,000 VMIG 1* Series 4-2, FSA-Insured, 4.50% VRDO 2,100,000
2,000,000 VMIG 1* Series C-5, AMBAC-Insured, 4.30% VRDO 2,000,000
-----------------------------------------------------------------------------------------------
7,800,000
-----------------------------------------------------------------------------------------------
Texas -- 8.8%
2,000,000 A-1+ Houston, TX GO, Series A, TECP, 4.00% due 6/14/00 2,000,000
1,000,000 A-1+ Plano, TX ISD, 3.89% due 8/3/00 1,000,000
700,000 NR+ Round Rock, TX IDR, (Tellabs Inc. Project), 4.35% VRDO 700,000
3,400,000 SP-1+ Texas State TRAN, Series 99-A, 4.50% due 8/31/00 3,406,433
-----------------------------------------------------------------------------------------------
7,106,433
-----------------------------------------------------------------------------------------------
Vermont -- 1.5%
1,200,000 A-1+ Vermont Educational & Health Building Finance VHA,
(New England Project), AMBAC-Insured, Series E,
4.20% VRDO 1,200,000
-----------------------------------------------------------------------------------------------
Virginia -- 2.5%
2,000,000 A-1+ Virginia Port Authority Revenue, PART, MBIA-Insured,
4.40% VRDO 2,000,000
-----------------------------------------------------------------------------------------------
Washington -- 4.4%
Washington State Public Power Supply System, Series A:
1,500,000 AAA Pre-Refunded -- Escrowed with U.S. government
securities to 7/1/04, Call @ 102, 3.75% due 7/1/00 1,534,395
2,000,000 AAA Pre-Refunded -- Escrowed with U.S. government
securities to 7/1/11, Call @ 102, 4.05% due 7/1/00 2,044,598
-----------------------------------------------------------------------------------------------
3,578,993
-----------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
10 2000 Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedules of Investments (continued) May 31, 2000
--------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
-----------------------------------------------------------------------------------------------
<S> <C> <C>
Wyoming -- 1.6%
$1,300,000 A-1+ Green River, WY PCR, (Power Rhone-Poulene Inc. Project),
Series 92, 4.55% VRDO $ 1,300,000
-----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $80,868,386**) $80,868,386
===============================================================================================
</TABLE>
(a) All ratings are by Standard & Poors Ratings Service (Standard & Poors),
except those identified by an asterisk (*), which are rated by Moodys
Investors Service, Inc. ("Moody's").
[DAG] Security has not been rated by either Standard & Poors or Moody's.
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.
** 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 Statments.
--------------------------------------------------------------------------------
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.
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 highest rating for issues having a demand feature -- VRDO.
MIG 1 -- Moody's highest rating for short-term municipal obligations.
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
EDA -- Economic Development Authority
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
ISD -- Independent School District
MBIA -- Municipal Bond Investor's Assurance Corporation
MFH -- Multi-Family Housing
MTA -- Metropolitan Transportation Authority
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
VRDO -- Variable-Rate Demand Obligation
--------------------------------------------------------------------------------
12 2000 Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Assets and Liabilities May 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Cash Government Municipal
Portfolio Portfolio Portfolio
=========================================================================================
<S> <C> <C> <C>
ASSETS:
Investments, at amortized cost $1,920,822,750 $ 134,860,679 $ 80,868,386
Cash 197 557 77,870
Interest receivable 8,010,877 1,019 1,102,565
Receivable for securities sold -- -- 160,000
Prepaid expenses 92,782 85,172 --
-----------------------------------------------------------------------------------------
Total Assets 1,928,926,606 134,947,427 82,208,821
-----------------------------------------------------------------------------------------
LIABILITIES:
Dividends payable 10,925,096 693,193 282,469
Management fees payable 373,291 50,419 26,175
Deferred compensation payable 1,293 551 498
Distribution fees payable -- -- 1,295
Accrued expenses 108,749 56,172 73,093
-----------------------------------------------------------------------------------------
Total Liabilities 11,408,429 800,335 383,530
-----------------------------------------------------------------------------------------
Total Net Assets $1,917,518,177 $ 134,147,092 $ 81,825,291
=========================================================================================
NET ASSETS:
Capital stock
(25,000,000,000 shares,
authorized for each Portfolio;
par value $0.00001 per share) $ 19,175 $ 1,341 $ 818
Capital paid in excess of par value 1,917,499,002 134,145,751 81,829,826
Accumulated net realized loss
from security transactions -- -- (5,353)
-----------------------------------------------------------------------------------------
Total Net Assets $1,917,518,177 $ 134,147,092 $ 81,825,291
=========================================================================================
Shares Outstanding 1,917,511,934 134,143,028 81,829,073
-----------------------------------------------------------------------------------------
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 Operationns For the Year Ended May 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Cash Government Municipal
Portfolio Portfolio Portfolio
=========================================================================================
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 96,454,990 $ 10,787,807 $ 5,786,956
-----------------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 2) 4,250,471 496,013 382,093
Shareholder and system servicing fees 302,369 52,236 34,830
Registration fees 185,999 9,999 55,900
Custody 59,352 17,004 18,999
Audit and legal 33,619 22,000 23,025
Directors fees 28,208 10,998 11,998
Shareholder communications 25,520 9,810 11,998
Distribution fees (Note 2) -- -- 310
Other 9,186 8,233 13,182
-----------------------------------------------------------------------------------------
Total Expenses 4,894,724 626,293 552,335
Less: Management fee waivers (Note 2) (1,063,645) (173,132) (178,872)
-----------------------------------------------------------------------------------------
Net Expenses 3,831,079 453,161 373,463
-----------------------------------------------------------------------------------------
Net Investment Income 92,623,911 10,334,646 5,413,493
-----------------------------------------------------------------------------------------
Net Realized Gain (Loss)
From Security Transactions 8,300 -- (3,307)
-----------------------------------------------------------------------------------------
Increase in Net Assets From Operations $92,632,211 $ 10,334,646 $ 5,410,186
=========================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
14 2000 Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
--------------------------------------------------------------------------------
For the Years Ended May 31,
Cash Portfolio 2000 1999
================================================================================
OPERATIONS:
Net investment income $ 92,623,911 $ 49,631,651
Net realized gain 8,300 29,546
--------------------------------------------------------------------------------
Increase in Net Assets From Operations 92,632,211 49,661,197
--------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM (NOTE 3):
Net investment income (92,623,761) (49,633,063)
Net realized gains (8,300) (27,593)
--------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (92,632,061) (49,660,656)
--------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 16,123,343,761 7,688,594,257
Net asset value of shares issued
for reinvestment of dividends 82,797,765 47,094,457
Cost of shares reacquired (15,345,128,581) (7,529,966,754)
--------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 861,012,945 205,721,960
--------------------------------------------------------------------------------
Increase in Net Assets 861,013,095 205,722,501
NET ASSETS:
Beginning of year 1,056,505,082 850,782,581
--------------------------------------------------------------------------------
End of year $ 1,917,518,177 $1,056,505,082
================================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 15
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
--------------------------------------------------------------------------------
For the Years Ended May 31,
Government Portfolio 2000 1999
================================================================================
OPERATIONS:
Net investment income $ 10,334,646 $ 5,492,467
Net realized gain -- 3,607
--------------------------------------------------------------------------------
Increase in Net Assets From Operations 10,334,646 5,496,074
--------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM (NOTE 3):
Net investment income (10,334,646) (5,493,894)
--------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (10,334,646) (5,493,894)
--------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 1,220,312,721 833,058,394
Net asset value of shares issued
for reinvestment of dividends 9,904,165 5,204,391
Cost of shares reacquired (1,242,173,020) (780,645,320)
--------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Fund Share Transactions (11,956,134) 57,617,465
--------------------------------------------------------------------------------
Increase (Decrease) in Net Assets (11,956,134) 57,619,645
NET ASSETS:
Beginning of year 146,103,226 88,483,581
--------------------------------------------------------------------------------
End of year $ 134,147,092 $ 146,103,226
================================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
16 2000 Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
--------------------------------------------------------------------------------
For the Years Ended May 31,
Municipal Portfolio 2000 1999
================================================================================
OPERATIONS:
Net investment income $ 5,413,493 $ 4,219,121
Net realized loss (3,307) (184)
--------------------------------------------------------------------------------
Increase in Net Assets From Operations 5,410,186 4,218,937
--------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM (NOTE 3):
Net investment income (5,412,362) (4,219,987)
Net realized gains (505) --
--------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (5,412,867) (4,219,987)
--------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 854,305,516 1,661,218,756
Net asset value of shares issued
for reinvestment of dividends 5,659,804 3,399,379
Cost of shares reacquired (1,089,680,585) (1,438,744,794)
--------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Fund Share Transactions (229,715,265) 225,873,341
--------------------------------------------------------------------------------
Increase (Decrease) in Net Assets (229,717,946) 225,872,291
NET ASSETS:
Beginning of year 311,543,237 85,670,946
--------------------------------------------------------------------------------
End of year $ 81,825,291 $ 311,543,237
================================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 17
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements
--------------------------------------------------------------------------------
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, Government
Portfolio and Municipal Portfolio.
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
SSB Citi Fund Management LLC (SSBC), a subsidiary of Salomon Smith Barney
Holdings, Inc. (SSBH), which, in turn, is a subsidiary of Citigroup Inc.
(Citigroup), acts as investment manager of the Fund. As compensation for its
services, each Portfolio pays SSBC 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 year ended May 31, 2000, SSBC waived management fees of $1,063,645,
$173,132 and $178,872 for the Cash, Government and Municipal Portfolios,
respectively.
Citi Fiduciary Trust Company (CFTC),formerly known as Smith Barney Private Trust
Company, another subsidiary of Citigroup, acts as the Funds transfer agent and
PFPC Global Fund Services (PFPC) acts as the Funds sub-transfer agent. CFTC
receives account fees and asset-based fees that vary according to the account
size and type of account. PFPC is responsible for shareholder recordkeeping and
financial processing for all shareholder accounts and is paid by CFTC.
18 2000 Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
--------------------------------------------------------------------------------
During the period October 1, 1999 through May 31, 2000, the Cash, Government and
Municipal Portfolios paid transfer agent fees of $224,810, $22,677 and
$17,276,respectively,to CFTC.
CFBDS, Inc. (CFBDS) acts as the Funds distributor. Salomon Smith Barney Inc.
(SSB), another subsidiary of SSBH, as well as certain other broker-dealers,
continues to sell Fund shares to the public as a member of the selling group.
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 Portfolios Class B shares. For the year ended May 31, 2000, total
Distribution Plan fees incurred were:
Cash Government Municipal
================================================================================
Distribution Plan Fees -- -- $310
================================================================================
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 Portfolios 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.
--------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 19
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
--------------------------------------------------------------------------------
5. Capital Shares
At May 31, 2000, 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.
Transactions in shares of each Portfolio were as follows:
Year Ended Year Ended
May 31, 2000 May 31, 1999
================================================================================
Cash Portfolio -- Class A Shares
Shares sold 16,123,343,761 7,683,594,257
Shares issued on reinvestment 82,797,765 47,033,344
Shares reacquired (15,345,128,581) (7,522,505,306)
--------------------------------------------------------------------------------
Net Increase 861,012,945 208,122,295
================================================================================
Cash Portfolio -- Class B Shares (a)
Shares sold -- 5,000,000
Shares issued on reinvestment -- 61,113
Shares reacquired -- (7,461,448)
--------------------------------------------------------------------------------
Net Decrease -- (2,400,335)
================================================================================
Government Portfolio
Shares sold 1,220,312,721 833,058,394
Shares issued on reinvestment 9,904,165 5,204,391
Shares reacquired (1,242,173,020) (780,645,320)
--------------------------------------------------------------------------------
Net Increase (Decrease) (11,956,134) 57,617,465
================================================================================
Municipal Portfolio -- Class A Shares
Shares sold 850,529,119 1,654,103,348
Shares issued on reinvestment 5,659,804 3,399,379
Shares reacquired (1,085,904,188) (1,431,629,386)
--------------------------------------------------------------------------------
Net Increase (Decrease) (229,715,265) 225,873,341
================================================================================
Municipal Portfolio -- Class B Shares
Shares sold 3,776,397 7,115,408
Shares reacquired (3,776,397) (7,115,408)
--------------------------------------------------------------------------------
Net Increase -- --
================================================================================
(a) As of May 31, 1999, Class B shares were fully redeemed.
6. Subsequent Event
Effective June 5, 2000, the Board of Directors of the Fund has approved a
Distribution Agreement with SSB, replacing the Distribution Agreement with
CFBDS.
--------------------------------------------------------------------------------
20 2000 Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended May 31:
<TABLE>
<CAPTION>
Class A Shares
-----------------------------------------
Cash Portfolio 2000(1) 1999 1998 1997 1996(2)
======================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $1.00 $1.00 $1.00 $1.00 $1.00
--------------------------------------------------------------------------------------
Net investment income(3) 0.055 0.051 0.055 0.052 0.053
Distributions from net investment income (0.055) (0.051) (0.055) (0.052) (0.053)
Distributions from net realized gains (0.000)* (0.000)* (0.000)* -- --
--------------------------------------------------------------------------------------
Net Asset Value, End of Year $1.00 $1.00 $1.00 $1.00 $1.00
--------------------------------------------------------------------------------------
Total Return 5.60% 5.23% 5.58% 5.35% 5.44%++
--------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $1,918 $1,057 $848 $216 $278
--------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(3)(4) 0.23% 0.23% 0.23% 0.23% 0.15%+
Net investment income 5.56 5.07 5.43 5.23 5.43+
======================================================================================
</TABLE>
(1) Per share amounts have been calculated using the monthly average shares
method.
(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
years ended May 31, 2000, 1999, 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:
<TABLE>
<CAPTION>
Per Share Decrease to Expense Ratio
Net Investment Income Without Fee Waiver
-------------------------------------- --------------------------------------
2000 1999 1998 1997 1996 2000 1999 1998 1997 1996
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A $0.001 $0.001 $0.001 $0.001 $0.001 0.29% 0.31% 0.35% 0.36% 0.39%
</TABLE>
(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 capital stock outstanding throughout each year ended May 31:
<TABLE>
<CAPTION>
Government Portfolio 2000(1) 1999 1998 1997 1996(2)
=======================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $1.00 $1.00 $1.00 $1.00 $1.00
Net investment income(3) 0.053 0.049 0.053 0.052 0.052
Distributions from net investment income (0.053) (0.049) (0.053) (0.052) (0.052)
Distributions from net realized gains -- -- -- (0.000)* (0.000)*
Net Asset Value, End of Year $1.00 $1.00 $1.00 $1.00 $1.00
Total Return 5.41% 5.05% 5.46% 5.29% 5.36%++
Net Assets, End of Year (millions) $134 $146 $88 $152 $58
Ratios to Average Net Assets:
Expenses(3)(4) 0.23% 0.23% 0.23% 0.21% 0.16%+
Net investment income 5.26 4.86 5.33 5.18 5.28+
</TABLE>
(1) Per share amounts have been calculated using the monthly average shares
method.
(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
years ended May 31, 2000, 1999, 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 Expense Ratio
Net Investment Income Without Fee Waiver
-------------------------------------- --------------------------------------
2000 1999 1998 1997 1996 2000 1999 1998 1997 1996
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
$0.001 $0.002 $0.002 $0.001 $0.002 0.32% 0.42% 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.
--------------------------------------------------------------------------------
22 2000 Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended May 31:
<TABLE>
<CAPTION>
Class A Shares
-----------------------------------------
Municipal Portfolio 2000(1) 1999 1998 1997 1996(2)
======================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $1.00 $1.00 $1.00 $1.00 $1.00
--------------------------------------------------------------------------------------
Net investment income(3) 0.034 0.031 0.035 0.034 0.035
Distributions from net investment income (0.034) (0.031) (0.035) ( 0.034) (0.035)
Distributions from net realized gains (0.000)* -- (0.000)* -- --
--------------------------------------------------------------------------------------
Net Asset Value, End of Year $1.00 $1.00 $1.00 $1.00 $1.00
--------------------------------------------------------------------------------------
Total Return 3.48% 3.18% 3.56% 3.40% 3.55%++
--------------------------------------------------------------------------------------
Net Assets, End of Year (000s) $82 $312 $86 $24 $59
--------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(3)(4) 0.23% 0.23% 0.23% 0.21% 0.15%+
Net investment income 3.35 3.09 3.50 3.34 3.46+
======================================================================================
</TABLE>
(1) Per share amounts have been calculated using the monthly average shares
method.
(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
years ended May 31, 2000, 1999, 1998, 1997 and the period ended May 31,
1996. In addition, the Manager agreed to reimburse the Portfolio for
$68,835 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:
<TABLE>
<CAPTION>
Expense Ratio
Per Share Decrease to Without Fee Waiver
Net Investment Income and Reimbursement
-------------------------------------- --------------------------------------
2000 1999 1998 1997 1996 2000 1999 1998 1997 1996
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A $0.001 $0.002 $0.001 $0.004 $0.003 0.34% 0.39% 0.41% 0.41% 0.69%+
</TABLE>
(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>
--------------------------------------------------------------------------------
Independent Auditors' Report
--------------------------------------------------------------------------------
The Shareholders and Board of Directors of
Smith Barney Institutional Cash Management Fund, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the Cash, Government and Municipal Portfolios
of Smith Barney Institutional Cash Management Fund, Inc. as of May 31, 2000, and
the related statements of operations for the year then ended, the statements of
changes in net assets for each of the years in the two-year period then ended
and financial highlights for each of the years in the four-year period then
ended and for the period from June 16, 1995 (commencement of operations) to May
31, 1996. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of May 31, 2000, by correspondence with the custodian. As to
securities sold but not yet delivered, we performed other appropriate auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Cash, Government and Municipal Portfolios of Smith Barney Institutional Cash
Management Fund, Inc., as of May 31, 2000, the results of their operations for
the year then ended, the changes in their net assets for each of the years in
the two-year period then ended and financial highlights for each of the years in
the four-year period then ended and for the period from June 16, 1995 to May 31,
1996, in conformity with accounting principles generally accepted in the United
States of America.
/s/ KPMG LLP
New York, New York
July 13, 2000
--------------------------------------------------------------------------------
24 2000 Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Tax Information (unaudited)
--------------------------------------------------------------------------------
For Federal tax purposes the Fund hereby designates for the fiscal year ended
May 31, 2000:
. 100.00% of the dividends paid by the Municipal Portfolio from net
investment income as tax-exempt for regular Federal income tax
purposes.
A total of 41.36% of the dividends paid by the Government Portfolio from net
investment income are derived from Federal obligations and may be exempt from
taxation at the state level.
--------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 25
<PAGE>
[LOGO OF SALOMON SMITH BARNEY]
Directors Custodian
Paul R. Ades PFPC Trust Company
Herbert Barg
Dwight B. Crane Transfer Agent
Frank G. Hubbard Citi Fiduciary Trust Company
Heath B. McLendon, Chairman 388 Greenwich Street, 22nd Floor
Jerome Miller New York, New York 10013
Ken Miller
Sub-Transfer Agent
John F. White, Emeritus PFPC Global Fund Services
P.O. Box 9699
Officers Providence, Rhode Island 02940-9699
Heath B. McLendon
President and This report is submitted for the general
Chief Executive Officer information of the shareholders of Smith
Barney Institutional Cash Management
Lewis E. Daidone Fund, Inc., but it may also be used as
Senior Vice President sales literature when proceeded or
and Treasurer accompanied by the current Prospectus,
which gives details about charges,
Phyllis Zahorodny expenses, investment objectives and
Vice President and operating policies of the Fund. If used
Investment Officer as sales material after August 31, 2000,
this report must be accompanied by
Joseph P. Deane performance information for the most
Vice President and recently completed calendar quarter.
Investment Officer
Salomon Smith Barney is a service mark
Joseph Benevento of Salomon Smith Barney Inc.
Vice President and
Investment Officer Smith Barney Institutional
Cash Management Fund, Inc.
Irving P. David 388 Greenwich Street,MF-2
Controller New York,New York 10013
Christina T. Sydor www.smithbarney.com/mutualfunds
Secretary
Investment Manager
SSB Citi Fund Management LLC
Distributor
CFBDS, Inc. FD2405 7/00
