<PAGE>
Smith Barney
Institutional Cash
Management
Fund, Inc.
------------------
SEMI-ANNUAL REPORT
------------------
November 30, 1999
[LOGO OF SMITH BARNEY MUTUAL FUNDS]
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
<PAGE>
Smith Barney
Institutional Cash
Management
Fund, Inc.
[PHOTO] [PHOTO]
Heath B. McLendon Phyllis Zahorodny
Chairman Vice President and
Investment Officer
[PHOTO] [PHOTO]
Joseph Benevento Joseph P. Deane
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, 1999. We
hope you find this report useful and informative. 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 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 period ended November
30, 1999.
Smith Barney Institutional Cash Management
Fund Yields (Class A Shares)
Portfolio Seven-Day Current Yield 30-Day Yield
- --------------------------------------------------------------------------------
Cash 5.55% 5.44%
Government 5.36 5.24
Municipal 3.62 3.46
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.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 1
<PAGE>
Cash and Government Portfolio Updates and Strategies
During the reporting period and in anticipation of higher rates, we kept the
average life in the Cash Portfolio at 51 days and below 40 days for the
Government Portfolio.
We anticipate keeping the Cash Portfolio's average life at or below 50 days over
the next several months in expectation of another Federal Reserve Board ("Fed")
interest rate hike in February 2000. Due to a strong U.S. economy and a
high-quality approved list of issuers, the credit quality of our investments
remains strong.
Municipal Money Market Updates and Strategies
During the reporting period, in expectation of increasing rates, we have
maintained a 50 to 55 day average maturity range and increased our variable rate
position in the Municipal Portfolio. Our approach to the municipal note market
has been to focus on the high-quality and liquid sectors of the market. For
example, one of the largest positions in the Portfolio is the Texas State Tax
and Revenue Anticipation Notes. Both Moody's and Standard & Poor's gave this
$3.9 billion issue their highest short-term ratings. Due to the size of the
offering and its appeal to investors, the Texas State Tax and Revenue
Anticipation Notes are considered to be one of the more liquid note deals in the
market.
Market Update and Outlook
During the last quarter of 1998, the Federal Reserve Board ("Fed") eased
monetary policy to accommodate the world capital markets' reaction to the Asian
crisis. The 75-basis-point decline in interest rates contributed to the
continuing strength of the U.S. economy. Moreover, lower interest rates brought
domestic home sales to record levels, and helped drive consumer demand and stock
market prices generally higher.
The U.S. is now in its ninth year of economic expansion and is growing at a
4.00% annual rate per year. The weakness of the Asian economies, the problems of
the U.S. manufacturing industry and the decline in commodity prices reversed
during the reporting period. This led the Fed to change its monetary stance to a
"tightening bias" and raise short-term interest rates from 4.75% to 5.50% on the
overnight federal funds rate.
As a result, the short-term yield curve has steepened by 125 basis points.
One-year certificates of deposit rose from 5.00% in January to 6.25% in
November. We expect that the Fed may find it necessary to raise rates perhaps an
additional 75 basis points in the year 2000 to help the U.S. economy to continue
to grow at a sustainable pace.
- --------------------------------------------------------------------------------
2 1999 Semi-Annual Report to Shareholders
<PAGE>
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/ Joseph P. Deane /s/ Joseph Benevento
Joseph P. Deane Joseph Benevento
Vice President and Vice President and
Investment Officer Investment Officer
December 7, 1999
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 3
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) November 30, 1999
- --------------------------------------------------------------------------------
CASH PORTFOLIO
<TABLE>
<CAPTION>
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER -- 70.0%
$15,000,000 Abbey National North American matures 1/24/00 6.09% $14,865,000
32,000,000 Aegon Funding Corp. matures 3/29/00 6.00 31,383,316
10,000,000 Alliance & Leicester PLC matures 12/7/99 5.34 9,991,300
20,000,000 American Express Credit Co. matures 2/9/00 6.02 19,770,556
15,000,000 American Home Products matures 2/15/00 5.87 14,819,500
20,000,000 ANZ Delaware Inc. matures 2/22/00 5.90 19,732,094
20,000,000 Asset Securitization matures 1/27/00 5.99 19,812,533
10,000,000 Atlantis One Funding Corp. matures 1/25/00 5.86 9,912,917
25,000,000 BCI Funding Corp. mature 2/8/00 to 2/16/00 5.94 to 6.09 24,704,121
15,000,000 Centric Capital Corp. matures 12/10/99 5.45 14,979,750
25,000,000 Cregem North America matures 12/3/99 5.41 24,992,556
30,000,000 Daimler Chrysler N.A. mature 2/1/00 to 2/2/00 6.03 to 6.07 29,691,783
38,939,000 Delaware Funding Corp. matures 1/18/00 6.01 38,631,178
6,645,000 Den Danske Bank matures 2/1/00 6.03 6,577,022
10,000,000 Diageo PLC matures 1/24/00 5.82 9,914,950
15,000,000 Enterprise Funding matures 12/15/99 5.31 14,969,667
25,000,000 Fortis Funding mature 1/10/00 to 1/20/00 6.04 to 6.14 24,817,111
40,000,000 General Electric Capital Corp.
mature 2/11/00 to 2/18/00 5.86 to 6.12 39,505,977
30,000,000 General Motors Acceptance Corp.
mature 1/28/00 to 2/10/2000 5.97 to 6.10 29,682,475
15,000,000 Goldman Sachs matures 3/16/00 6.06 14,738,975
10,000,000 GTE Corp matures 1/20/00 6.11 9,915,972
10,000,000 IBM Credit Corp. matures 2/11/00 5.86 9,886,200
15,000,000 International Nederlanden matures 3/24/00 6.04 14,720,700
28,210,000 Johnson & Johnson matures 4/20/00 6.00 27,565,848
45,000,000 J.P. Morgan & Co. mature 12/6/99 to 2/24/00 5.20 to 6.07 44,622,785
15,000,000 Kitty Hawk matures 1/27/00 5.98 14,864,177
10,000,000 Lloyds Bank matures 12/20/99 5.40 9,971,817
50,000,000 Merrill Lynch & Co. matures 12/1/99 5.32 50,000,000
24,532,000 Monte Rosa mature 1/19/00 to 2/24/00 6.00 to 6.25 24,268,092
45,500,000 Morgan Stanley Dean Witter & Co.
mature 1/11/00 to 3/2/00 5.59 to 6.12 45,094,956
15,000,000 National Australia Funding matures 2/10/00 6.03 14,825,163
15,000,000 Nationwide Building Society matures 3/21/00 5.92 14,731,750
30,000,000 Osterreich Kontrollbank matures 1/18/00 5.98 29,763,200
35,520,000 Preferred Receivable Funding
mature 12/14/99 to 1/25/2000 5.38 to 6.04 35,343,544
12,300,000 Procter & Gamble matures 2/25/00 5.88 12,129,870
20,000,000 Receivables Capital matures 12/1/99 5.36 20,000,000
10,000,000 Saint-Gobain matures 1/28/00 5.90 9,907,039
20,000,000 San Paolo U.S. Finance Inc. matures 1/20/99 6.01 19,834,722
25,000,000 Sara Lee Corp. matures 12/6/99 5.32 24,981,597
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
4 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1999
- --------------------------------------------------------------------------------
CASH PORTFOLIO
<TABLE>
<CAPTION>
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER -- 70.0% (continued)
$25,000,000 Svenska Handelsbanken
mature 12/29/99 to 2/18/00 5.41% to 6.06% $ 24,896,167
25,000,000 Toronto Dominion matures 12/13/99 5.33 24,955,792
22,073,000 Transamerica Finance Corp. matures 2/11/00 6.06 21,793,494
15,000,000 Unifunding Inc. matures 1/21/00 6.14 14,871,437
40,000,000 Union Bank of Switzerland
mature 12/6/99 to 12/22/99 5.27 to 5.51 39,947,287
20,000,000 Wachovia Bank matures 1/18/00 5.53 19,856,667
16,000,000 Wal-Mart Stores Inc. matures 12/6/99 5.33 15,988,222
20,000,000 Walt Disney Company matures 2/2/00 5.87 19,797,000
20,000,000 Wells Fargo Bank matures 2/7/00 6.04 19,776,356
25,000,000 Westdeutsche Landesbank matures 12/2/99 5.32 24,996,319
20,000,000 Westpac matures 2/3/00 6.01 19,790,578
30,000,000 Windmill Funding Corp. mature 12/1/99 to 1/10/00 5.33 to 5.58 29,939,77
10,000,000 Woolwich Building Society matures 3/3/00 5.44 9,864,892
- ----------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost -- $1,132,394,202) 1,132,394,202
- ----------------------------------------------------------------------------------------------------------
FOREIGN CERTIFICATES OF DEPOSIT -- 12.3%
25,000,000 Bank of Montreal matures 1/11/00 6.33 25,000,000
30,000,000 Bayerische Hypo - Und Vereinsbank AG
mature 2/7/00 to 7/12/00 5.01 to 5.70 29,994,513
10,000,000 Bayerische Landesbank matures 2/23/00 5.12 9,997,861
20,000,000 Canadian Imperial Bank of Commerce
matures 12/28/99 5.43 20,000,000
15,000,000 Commerzbank matures 2/1/00 4.97 14,999,139
5,000,000 Deutsche Bank matures 2/2/00 4.97 4,998,876
20,000,000 Dresdner Bank matures 1/12/00 5.56 20,000,000
25,000,000 Halifax Building Society matures 1/18/00 5.53 25,000,324
30,000,000 National Westminster Bank PLC
mature 12/16/99 to 3/15/00 5.18 to 5.43 29,999,472
15,000,000 San Paolo Bank matures 2/28/00 6.11 15,000,363
5,000,000 Society Generale NY matures 1/14/00 5.03 5,000,109
- ----------------------------------------------------------------------------------------------------------
TOTAL FOREIGN CERTIFICATES OF DEPOSIT
(Cost -- $199,990,657) 199,990,657
- ----------------------------------------------------------------------------------------------------------
MEDIUM-TERM NOTES -- 2.8%
10,000,000 Abbey National PLC matures 7/24/00 5.65 9,996,902
25,000,000 Bank of America matures 2/3/00 6.01 25,000,000
10,000,000 Goldman Sachs matures 2/24/00 5.28 10,000,000
- ----------------------------------------------------------------------------------------------------------
TOTAL MEDIUM-TERM NOTES
(Cost -- $44,996,902) 44,996,902
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 5
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1999
- --------------------------------------------------------------------------------
CASH PORTFOLIO
<TABLE>
<CAPTION>
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TIME DEPOSITS -- 9.3%
$50,000,000 Banc One matures 12/1/99 5.72% $ 50,000,000
50,000,000 Paribas matures 12/1/99 5.75 50,000,000
50,000,000 Societe Generale matures 12/1/99 5.75 50,000,000
- ----------------------------------------------------------------------------------------------------------
TOTAL TIME DEPOSITS
(Cost -- $150,000,000) 150,000,000
- ----------------------------------------------------------------------------------------------------------
DOMESTIC CERTIFICATES OF DEPOSIT -- 3.1%
5,000,000 American Centurion matures 2/17/00 6.05 5,000,000
10,000,000 Chase Manhattan US matures 1/26/00 5.60 10,000,000
35,000,000 First Union North Carolina
mature 3/16/00 to 6/2/00 5.56 to 5.90 35,000,000
- ----------------------------------------------------------------------------------------------------------
TOTAL DOMESTIC CERTIFICATES OF DEPOSIT
(Cost -- $50,000,000) 50,000,000
- ----------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 2.5%
39,905,000 Morgan Stanley Dean Witter & Co., 5.65% due 12/1/99;
Proceeds at maturity -- $39,911,263;
(Fully collateralized by U.S. Treasury Notes,
7.75% due 2/15/01; Market value -- $40,023,809)
(Cost -- $39,905,000) 39,905,000
- ----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $1,617,286,761*) $1,617,286,761
- ----------------------------------------------------------------------------------------------------------
</TABLE>
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
6 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES AND INSTRUMENTALITIES -- 90.8%
$51,265,000 Federal Farm Credit Bank
mature 12/1/99 to 1/19/00 5.23% to 5.61% $ 51,204,789
42,736,000 Federal Home Loan Bank
mature 12/8/99 to 5/5/00 5.06 to 5.69 42,219,457
56,573,000 Federal Home Loan Mortgage Corp.
mature 12/1/99 to 2/4/00 5.24 to 5.64 56,381,708
55,646,000 Federal National Mortgage Association
mature 12/8/99 to 2/17/00 5.32 to 5.68 55,300,833
- ---------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
AND INSTRUMENTALITIES
(Cost -- $205,106,787) 205,106,787
- ---------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 9.2%
10,494,000 Morgan Stanley Dean Witter & Co., 5.65% due 12/1/99;
Proceeds at maturity -- $10,495,647;
(Fully collaterized by U.S. Treasury Notes,
6.25% due 2/3/15; Market value -- $10,571,293) 10,494,000
10,400,000 Morgan Guaranty, 5.65% due 12/1/99;
Proceeds at maturity -- $10,401,632
(Fully collateralized by U.S. Treasury Notes,
11.25% due 2/15/15; Market value -- $10,609,312) 10,400,000
- ---------------------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost -- $20,894,000) 20,894,000
- ---------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $226,000,787*) $226,000,787
- ---------------------------------------------------------------------------------------------------------------
* Aggregate cost for Federal income tax purposes is substantially the same.
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 7
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL PORTFOLIO
FACE
AMOUNT RATING(a) SECURITY VALUE
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alaska -- 3.5%
$2,635,000 A-1 Alaska State Housing Finance Corp., University of Alaska,
PCR, Series 97A, 3.90%(b) $2,635,000
Valdez, AK PCR, Exxon:
900,000 A-1+ Series 85, 3.70%(b) 900,000
1,800,000 A-1+ Series 93C, 3.60%(b) 1,800,000
- ----------------------------------------------------------------------------------------------------------
5,335,000
- ----------------------------------------------------------------------------------------------------------
Colorado -- 4.6%
Colorado Housing Finance Authority, MFH:
1,980,000 A-1+ Central Park, Series 96C, 3.95%(b) 1,980,000
1,980,000 A-1+ Hamptons, Series 96G, 3.95%(b) 1,980,000
3,000,000 A-1+ Eagle Ranch Metropolitan District, Series A, 3.95%(b) 3,000,000
- ----------------------------------------------------------------------------------------------------------
6,960,000
- ----------------------------------------------------------------------------------------------------------
District of Columbia -- 1.4%
District of Columbia GO:
1,000,000 A-1+ Series 92A, 3.85%(b) 1,000,000
1,100,000 A-1+ Series A, 3.85%(b) 1,100,000
- ----------------------------------------------------------------------------------------------------------
2,100,000
- ----------------------------------------------------------------------------------------------------------
Florida -- 2.3%
2,325,000 A-1+ Lee County, FL IDR, (Hope Hospice Project), 3.95%(b) 2,325,000
1,200,000 A-1+ Orange County, FL (Adventist Health Systems), 3.87%(b) 1,200,000
- ----------------------------------------------------------------------------------------------------------
3,525,000
- ----------------------------------------------------------------------------------------------------------
Georgia -- 5.0%
360,000 A-1 Burke County, GA PCR, (Georgia Power Co.), 3.60%(b) 360,000
Georgia State PART, GO:
2,000,000 AAA Series B, 5.75% due 7/1/00 2,023,248
3,065,000 AAA Series C, 5.75% due 9/1/00 3,110,811
750,000 A-1+ Municipal Electricity Authority, Series B, 3.90%(b) 750,000
1,300,000 A-1 Savannah, GA EDA, American Cyanamid Co. Project,
3.95%(b) 1,300,000
- ----------------------------------------------------------------------------------------------------------
7,544,059
- ----------------------------------------------------------------------------------------------------------
Hawaii -- 0.7%
1,000,000 VMIG 1* Hawaii Housing Finance & Development Corp.,
Series 93A, 4.00%(b) 1,000,000
- ----------------------------------------------------------------------------------------------------------
Idaho -- 0.7%
1,100,000 NR Power County, ID PCR, FMC Corp. Project, 3.65%(b) 1,100,000
- ----------------------------------------------------------------------------------------------------------
Illinois -- 12.5%
2,000,000 SP-1 Chicago, IL Park District, Tax Anticipation Warrants,
3.621% due 9/15/00 2,011,455
1,600,000 A-1+ Chicago, IL Series SGA8, PART, 4.00%(b) 1,600,000
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
8 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL PORTFOLIO
FACE
AMOUNT RATING(a) SECURITY VALUE
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Illinois -- 12.5% (continued)
$1,000,000 NR+ Chicago, IL Water Reclamation District,
(Pre-Refunded-- Escrowed with U.S. government
securities to 1/1/00 call @ 102) 6.80% due 1/1/00 $1,023,068
3,000,000 VMIG 1* Chicago, IL Water Revenue, Series 1998, PART, 4.10%(b) 3,000,000
2,205,000 A-1+ Illinois Health, (Alexian Bros. Medical Center),
MBIA-Insured, 3.95% due 2/17/00 2,205,000
3,800,000 A-1+ Illinois Health Facilities Authority, (Swedish Covenant
Hospital), AMBAC-Insured, 3.90%(b) 3,800,000
2,700,000 VMIG 1* Illinois State Toll Highway Authority, FSA-Insured,
3.90%(b) 2,700,000
1,000,000 VMIG 1* Illinois Health Facility Authority, (Pekin Memorial
Hospital), Series C, 3.940%(b) 1,000,000
1,000,000 A-1+ Lisle, IL MFH, (Ashley of Lisle PJ), 3.90%(b) 1,000,000
500,000 A-1+ University of Illinois, (Health Service Facilities Systems),
Series B, 3.90%(b) 500,000
- ----------------------------------------------------------------------------------------------------------
18,839,523
- ----------------------------------------------------------------------------------------------------------
Indiana -- 2.1%
3,200,000 VMIG 1* Indiana Health Facilities, St. Francis Health, PART,
4.07%(b) 3,200,000
- ----------------------------------------------------------------------------------------------------------
Iowa -- 2.4%
3,600,000 A-1+ Iowa Higher Education Loan Authority, (Private College
Facility), MBIA-Insured, 3.95%(b) 3,600,000
- ----------------------------------------------------------------------------------------------------------
Kentucky -- 4.6%
2,000,000 VMIG 1* Fulton County, KY (United Healthcare Hospital Co.),
3.90%(b) 2,000,000
5,000,000 NR+ Hancock County, KY IDR, (Southwire Co. Project),
Series 92A, 4.05%(b) 5,000,000
- ----------------------------------------------------------------------------------------------------------
7,000,000
- ----------------------------------------------------------------------------------------------------------
Louisiana -- 5.8%
1,400,000 NR Lake Charles Harbor & Terminal District Port,
(Citgo Petroleum Corp.), Series 84, 3.90%(b) 1,400,000
2,600,000 A-1+ Louisiana PFA, Hospital Revenue, Willis Knighton Medical
Center Project, AMBAC-Insured, 4.00%(b) 2,600,000
2,185,000 A-1+ Louisiana Public Facility Authority, Series B,
3.83% due 10/24/00 2,192,906
2,000,000 AAA Louisiana State GO, FGIC-Insured, Series A,
3.90% due 8/1/00 2,027,234
500,000 A-1+ St. Charles Parish PCR, Shell Oil, Series 92B, 3.70%(b) 500,000
- ----------------------------------------------------------------------------------------------------------
8,720,140
- ----------------------------------------------------------------------------------------------------------
Maryland -- 5.5%
2,300,000 A-1 Baltimore, MD (Oak Crest Village), Series 99A, 3.90%(b) 2,300,000
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 9
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL PORTFOLIO
FACE
AMOUNT RATING(a) SECURITY VALUE
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Maryland -- 5.5% (continued)
$1,000,000 A-1+ Frederick County, MD Retirement Community Revenue,
Buckinghams Choice, 4.10%(b) $1,000,000
2,000,000 A-1+ Montgomery County, MD BAN, TECP, 3.85% due 1/26/00 2,000,000
3,000,000 A-1+ Montgomery County, MD EDA, (Howard Hughes Medical
Center), Series 90B, 3.90%(b) 3,000,000
- ----------------------------------------------------------------------------------------------------------
8,300,000
- ----------------------------------------------------------------------------------------------------------
Massachusetts -- 3.1%
2,010,000 A-1 Boston, MA IDR, (Boston Home Inc.), 3.95%(b) 2,010,000
1,000,000 NR Massachusetts EDA, (Notre Dame Health Care), 3.80%(b) 1,000,000
1,600,000 NR Massachusetts Water Abatement Pool Loan, Series 4,
3.95% due 8/1/00 1,603,049
- ----------------------------------------------------------------------------------------------------------
4,613,049
- ----------------------------------------------------------------------------------------------------------
Michigan -- 2.1%
2,000,000 SP-1+ Michigan State Municipal Board Authority Revenue Notes,
Series B-2, 3.57% due 8/25/00 2,009,604
1,100,000 A-1+ Regents of University of Michigan Revenue Notes,
Series 98A2, 3.65%(b) 1,100,000
- ----------------------------------------------------------------------------------------------------------
3,109,604
- ----------------------------------------------------------------------------------------------------------
Minnesota -- 3.2%
3,000,000 NR+ Minneapolis, MN (Seed Academy Harvest School),
4.00%(b) 3,000,000
1,000,000 MIG 1* Minnesota TAN, (School District Tax & Aid Borrowing
Project), 2.95% due 2/24/00 1,000,000
900,000 A-1+ Rochester, MN Health Care Facility, (Mayo Foundation
Project), Series A, 4.07%(b) 900,000
- ----------------------------------------------------------------------------------------------------------
4,900,000
- ----------------------------------------------------------------------------------------------------------
Missouri -- 0.7%
1,000,000 SP-1+ Missouri State Health & Education Facilities Authority
Revenue, Drury College, Series B, 3.18% due 4/29/00 1,001,270
- ----------------------------------------------------------------------------------------------------------
Nevada -- 0.7%
1,000,000 A-1+ Nevada State GO, PART, 3.98%(b) 1,000,000
- ----------------------------------------------------------------------------------------------------------
New Jersey -- 0.4%
570,000 A-1+ New Jersey Transportation Trust Fund Authority,
MBIA-Insured, 3.88%(b) 570,000
- ----------------------------------------------------------------------------------------------------------
New Mexico -- 1.4%
2,093,000 NR New Mexico State Severance Tax, Series B, 3.55% due 7/1/00 2,110,201
- ----------------------------------------------------------------------------------------------------------
New York -- 2.0%
3,000,000 A-1+ New York City, NY Muni Water Finance Authority, Series 5,
3.85% due 1/13/00 3,000,000
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
10 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL PORTFOLIO
FACE
AMOUNT RATING(a) SECURITY VALUE
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
North Carolina -- 1.1%
$1,470,000 A-1+ Mecklenburg County Lease Revenue, (The Young Men's
Christian Association), 3.90%(b) $1,470,000
250,000 A-1+ Wake County, NC PCR, Series B, 4.00%(b) 250,000
- ----------------------------------------------------------------------------------------------------------
1,720,000
- ----------------------------------------------------------------------------------------------------------
Ohio -- 2.6%
2,000,000 NR+ Oakwood Village, OH IDR, (Sennet Steel Corp.), 4.05%(b) 2,000,000
2,000,000 SP-1+ Summit County, OH BAN, Series A, 3.20% due 6/1/00 2,005,812
- ----------------------------------------------------------------------------------------------------------
4,005,812
- ----------------------------------------------------------------------------------------------------------
Oregon -- 1.2%
1,840,000 VMIG 1* Hillsboro, OR Revenue, (Graduate Center Institute Project),
3.95%(b) 1,840,000
- ----------------------------------------------------------------------------------------------------------
Pennsylvania -- 5.1%
800,000 A-1+ Emmaus, PA General Authority, Subseries E-15, 3.95%(b) 800,000
1,650,000 SP-1+ Philadelphia, PA TRAN, Series A, 3.50% due 6/30/00 1,656,939
2,345,000 NR Quakertown, PA General Authority Revenue, Series A,
3.80%(b) 2,345,000
2,950,000 A-1 York, PA General Authority, Pooled Financing Revenue,
3.95%(b) 2,950,000
- ----------------------------------------------------------------------------------------------------------
7,751,939
- ----------------------------------------------------------------------------------------------------------
Puerto Rico -- 0.1
100,000 A-1+ Puerto Rico Commonwealth Government Development
Bank, MBIA-Insured, 3.60%(b) 100,000
- ----------------------------------------------------------------------------------------------------------
South Carolina -- 1.8%
Piedmont, SC Municipal Power Agency, MBIA-Insured:
500,000 SP-1+ Series C A 3.90%(b) 500,000
2,200,000 SP-1+ Series A 3.90%(b) 2,200,000
- ----------------------------------------------------------------------------------------------------------
2,700,000
- ----------------------------------------------------------------------------------------------------------
Tennessee -- 1.5%
2,300,000 VMIG 1* Jackson County, TN IDR, (Esselte Project), Series A,
3.95%(b) 2,300,000
- ----------------------------------------------------------------------------------------------------------
Texas -- 11.8%
2,360,000 A-1+ Corpus Christi Utility System, Series A, 3.60% due 12/16/99 2,360,000
2,000,000 A-1+ Houston, TX GO, Series A, 3.70% due 2/15/00 2,000,000
1,000,000 A-1+ Plano, TX ISD, 3.90% due 8/3/00 1,000,000
1,100,000 NR+ McAllen, TX, Health Facility Development Corp., 3.95%(b) 1,100,000
3,585,000 NR+ Metropolitan Higher Education, University of Dallas,
3.95%(b) 3,585,000
2,050,000 NR+ North Central Texas Health, Los Barrios Clinic, 3.95%(b) 2,050,000
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 11
<PAGE>
- --------------------------------------------------------------------------------
Schedules of Investments (unaudited) (continued) November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL PORTFOLIO
FACE
AMOUNT RATING(a) SECURITY VALUE
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Texas -- 11.8% (continued)
$2,000,000 A-1+ Texas PFA, GO, Notes, Series 93A, 3.85% due 2/17/00 $ 2,000,000
300,000 NR Texas Small Business, IDR, 3.90%(b) 300,000
3,400,000 SP-1+ Texas State TRAN, Series 99A, 3.70% due 8/31/00 3,419,369
- ----------------------------------------------------------------------------------------------------------
17,814,369
- ----------------------------------------------------------------------------------------------------------
Utah -- 1.7%
2,610,000 A-1+ Central Utah Water Conservation, AMBAC-Insured,
Series E, 3.90%(b) 2,610,000
- ----------------------------------------------------------------------------------------------------------
Virginia -- 2.4%
1,550,000 AAA Fairfax County, VA GO, Series A, 3.50% due 6/1/00 1,553,743
2,000,000 A-1+ Virginia Port Authority Revenue, MBIA-Insured, 4.03%(b) 2,000,000
- ----------------------------------------------------------------------------------------------------------
3,553,743
- ----------------------------------------------------------------------------------------------------------
Washington -- 1.1%
Washington State Public Power Supply System:
1,500,000 AAA Pre-Refunded-- Escrowed with U.S. government
securities to 7/1/00 Call @ 102), Series A,
3.75% due 7/1/04 1,561,206
120,000 A-1+ PART, AMBAC-Insured, 4.01%(b) 120,000
- ----------------------------------------------------------------------------------------------------------
1,681,206
- ----------------------------------------------------------------------------------------------------------
Wisconsin -- 2.8%
Wisconsin State GO:
1,236,000 A-1+ Series 97B, 3.80% due 3/13/00 1,236,000
3,000,000 A-1+ Series 97A, 3.85% due 2/17/00 3,000,000
- ----------------------------------------------------------------------------------------------------------
4,236,000
- ----------------------------------------------------------------------------------------------------------
Wyoming -- 2.2%
3,000,000 A-1+ Lincoln County, WY PCR, Amoco, 3.60% due 4/1/00 3,000,000
350,000 A-1+ Unita County, WY PCR, Amoco, 3.60%(b) 350,000
- ----------------------------------------------------------------------------------------------------------
3,350,000
- ----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-- 100%
(Cost-- $151,190,915**) $151,190,915
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(a) All ratings are by Standard & Poor's Ratings Service, 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.
+ Security has not been rated by either Moody's Investors Service or Standard
& Poors. 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 13 for definition of ratings and certain security descriptions.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
12 1999 Semi-Annual Report to Shareholders
<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 Ratings Service ("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.
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
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
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 13
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) November 30, 1999
- --------------------------------------------------------------------------------
Cash Government Municipal
Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------
ASSETS:
Investments, at amortized cost $1,617,286,761 $226,000,787 $151,190,915
Cash 5,540,133 567 --
Interest receivable 921 2,982 1,035,809
Prepaid expenses 92,782 85,172 271
Other assets -- 47,000 --
- --------------------------------------------------------------------------------
Total Assets 1,622,920,597 226,136,508 152,226,995
- --------------------------------------------------------------------------------
LIABILITIES:
Dividends payable 7,471,832 898,682 406,253
Management fees payable 282,670 18,524 15,886
Deferred compensation payable 1,293 -- 497
Distribution fees payable -- -- 310
Payable to bank -- -- 44,292
Accrued expenses 87,125 107,974 56,791
- --------------------------------------------------------------------------------
Total Liabilities 7,842,920 1,025,180 524,029
- --------------------------------------------------------------------------------
Total Net Assets $1,615,077,677 $225,111,328 $151,702,966
- --------------------------------------------------------------------------------
NET ASSETS:
Capital Stock
(25,000,000,000,
authorized for each Portfolio;
par value $0.00001 per share) $ 16,151 $ 2,251 $ 1,517
Capital paid in excess
of par value 1,615,061,526 225,109,077 151,694,523
Accumulated net realized gain
from security transactions -- -- 6,926
- --------------------------------------------------------------------------------
Total Net Assets $1,615,077,677 $225,111,328 $151,702,966
- --------------------------------------------------------------------------------
Shares Outstanding 1,615,071,584 225,107,264 151,695,600
- --------------------------------------------------------------------------------
Net Asset Value $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
14 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended November 30, 1999
Cash Government Municipal
Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $35,795,786 $5,390,762 $2,982,380
- --------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 2) 1,784,015 431,821 236,578
Shareholder and system servicing fees 92,671 20,762 12,831
Custody 16,196 8,506 7,522
Audit and legal 12,164 11,000 9,500
Directors' fees 8,434 5,499 5,999
Shareholder communications 8,210 3,009 999
Registration fees 2,680 21,017 19,901
Distribution fees (Note 2) -- -- 310
Other 2,000 4,967 2,000
- --------------------------------------------------------------------------------
Total Expenses 1,926,370 506,581 295,640
Less: Management fee waivers (Note 2) (401,020) (269,398) (92,279)
- --------------------------------------------------------------------------------
Net Expenses 1,525,350 237,183 203,361
- --------------------------------------------------------------------------------
Net Investment Income 34,270,436 5,153,579 2,779,019
- --------------------------------------------------------------------------------
Net Realized Gain From
Security Transactions 326 -- 8,467
- --------------------------------------------------------------------------------
Increase in Net Assets From
Operations $34,270,762 $5,153,579 $2,787,486
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 15
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
For the Six Months Ended November 30, 1999 (unaudited)
and the Year Ended May 31, 1999
Cash Portfolio November 30 May 31
- --------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 34,270,436 $ 49,631,651
Net realized gain 326 29,546
- --------------------------------------------------------------------------------
Increase in Net Assets From Operations 34,270,762 49,661,197
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (34,270,762) (49,633,063)
Net realized gains -- (27,593)
- --------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (34,270,762) (49,660,656)
- --------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 5,961,196,357 7,688,594,257
Net asset value of shares issued
for reinvestment of dividends 29,876,920 47,094,457
Cost of shares reacquired (5,432,500,682) (7,529,966,754)
- --------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 558,572,595 205,721,960
- --------------------------------------------------------------------------------
Increase in Net Assets 558,572,595 205,722,501
Net Assets:
Beginning of period 1,056,505,082 850,782,581
- --------------------------------------------------------------------------------
End of period $1,615,077,677 $1,056,505,082
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
16 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended November 30, 1999 (unaudited)
and the Year Ended May 31, 1999
Government Portfolio November 30 May 31
- --------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 5,153,579 $ 5,492,467
Net realized gain -- 3,607
- --------------------------------------------------------------------------------
Increase in Net Assets From Operations 5,153,579 5,496,074
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (5,153,579) (5,493,894)
- --------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (5,153,579) (5,493,894)
- --------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 631,430,914 833,058,394
Net asset value of shares issued
for reinvestment of dividends 4,709,551 5,204,391
Cost of shares reacquired (557,132,363) (780,645,320)
- --------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions 79,008,102 57,617,465
- --------------------------------------------------------------------------------
Increase in Net Assets 79,008,102 57,619,645
Net Assets:
Beginning of period 146,103,226 88,483,581
- --------------------------------------------------------------------------------
End of period $225,111,328 $146,103,226
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 17
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended November 30, 1999 (unaudited)
and the Year Ended May 31, 1999
Municipal Portfolio November 30 May 31
- --------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 2,779,019 $ 4,219,121
Net realized gain (loss) 8,467 (184)
- --------------------------------------------------------------------------------
Increase in Net Assets From Operations 2,787,486 4,218,937
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (2,779,019) (4,219,987)
- --------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (2,779,019) (4,219,987)
- --------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 409,813,620 1,661,218,756
Net asset value of shares issued
for reinvestment of dividends 2,992,375 3,399,379
Cost of shares reacquired (572,654,733) (1,438,744,794)
- --------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Fund Share Transactions (159,848,738) 225,873,341
- --------------------------------------------------------------------------------
Increase (Decrease) in Net Assets (159,840,271) 225,872,291
Net Assets:
Beginning of period 311,543,237 85,670,946
- --------------------------------------------------------------------------------
End of period $151,702,966 $ 311,543,237
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
18 1999 Semi-Annual Report to Shareholders
<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
SSB Citi Fund Management LLC ("SSBC"), formerly known as SSBC Fund Management
Inc., 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 six months ended November 30, 1999, SSBC waived management fees of
$401,020, $269,398 and $92,279 for the Cash, Government and Municipal
Portfolios, respectively.
Effective October 1999, Smith Barney Private Trust Company ("Private Trust"),
another subsidiary of Citigroup, became the Fund's transfer agent and PFPC
Global Fund Services ("PFPC") became the sub-transfer agent. Private Trust
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 Private Trust.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 19
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(Continued)
- --------------------------------------------------------------------------------
During the period October 1, 1999 through November 30, 1999, the Cash,
Government and Municipal Portfolios paid transfer agent fees of $48,872, $6,264
and $4,254, respectively, to Private Trust.
CFBDS, Inc. acts as the Fund's 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 Portfolio's Class B shares. For the six months ended November 30,
1999, 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 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.
- --------------------------------------------------------------------------------
20 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unauited)(continued)
- --------------------------------------------------------------------------------
5. Capital Shares
At November 30, 1999, 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:
Six Months Ended Year Ended
November 30, 1999 May 31, 1999
- --------------------------------------------------------------------------------
Cash Portfolio -- Class A Shares
Shares sold 5,961,196,357 7,683,594,257
Shares issued on reinvestment 29,876,920 47,033,344
Shares reacquired (5,432,500,682) (7,522,505,306)
- --------------------------------------------------------------------------------
Net Increase 558,572,595 208,122,295
- --------------------------------------------------------------------------------
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 631,430,914 833,058,394
Shares issued on reinvestment 4,709,551 5,204,391
Shares reacquired (557,132,363) (780,645,320)
- --------------------------------------------------------------------------------
Net Increase 79,008,102 57,617,465
- --------------------------------------------------------------------------------
Municipal Portfolio -- Class A Shares
Shares sold 406,037,223 1,654,103,348
Shares issued on reinvestment 2,992,375 3,399,379
Shares reacquired (568,878,336) (1,431,629,386)
- --------------------------------------------------------------------------------
Net Increase (Decrease) (159,848,738) 225,873,341
- --------------------------------------------------------------------------------
Municipal Portfolio -- Class B Shares (b)
Shares sold 3,776,397 7,115,408
Shares issued on reinvestment -- --
Shares reacquired (3,776,397) (7,115,408)
- --------------------------------------------------------------------------------
Net Increase (Decrease) -- --
- --------------------------------------------------------------------------------
(a) As of May 31, 1999, Class B shares were fully redeemed.
(b) As of November 30, 1999, Class B shares were fully redeemed.
- --------------------------------------------------------------------------------
Smith Barney Institutional Cash Management Fund, Inc. 21
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended May 31,
except where noted:
Class A Shares
----------------------------------------------------
Cash Portfolio 1999(1)(2) 1999 1998 1997 1996/(3)/
- --------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------
Net investment income/(4)/ 0.026 0.051 0.055 0.052 0.053
Distributions from net
investment income (0.026) (0.051) (0.055) (0.052) (0.053)
Distributions from net
realized gains -- (0.000)* (0.000)* -- --
- --------------------------------------------------------------------------------
Net Asset Value,
End of Period $1.00 $1.00 $1.00 $1.00 $1.00
Total Return 2.58%a 5.23% 5.58% 5.35% 5.44%a
- --------------------------------------------------------------------------------
Net Assets,
End of Period (000s) $1,615,078 $1,056,505 $848,383 $216,055 $277,572
- --------------------------------------------------------------------------------
Ratios to Average
Net Assets:
Expenses/(4)//(5)/ 0.23% 0.23% 0.23% 0.23% 0.15%
Net investment income 5.19 5.07 5.43 5.23 5.43
- --------------------------------------------------------------------------------
(1) For the six months ended November 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the period from June 16, 1995 (inception date) to May 31, 1996.
(4) The Manager has waived a portion of its fees for thePortfolio for the period
ended November 30, 1999, the years ended May 31, 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:
Per Share
Decrease to Net Expense Ratio
Investment Income Without Fee Waiver
------------------------------------- ----------------------------------
1999/(1)/ 1999 1998 1997 1996 1999/(1)/ 1999 1998 1997 1996
--------- ----- ----- ------ ------ --------- ---- ----- ----- -----
Class A $0.001 $0.001 $0.001 $0.001 $0.001 0.29% 0.31% 0.35% 0.36% 0.39%
(5) 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 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each year ended May 31,
except where noted:
Government Portfolio 1999(1)(2) 1999 1998 1997 1996(3)
===============================================================================
Net Asset Value,
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------
Net investment income (4) 0.025 0.049 0.053 0.052 0.052
Distributions from net
investment income (0.025) (0.049) (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 $1.00
- -------------------------------------------------------------------------------
Total Return 2.51%++ 5.05% 5.46% 5.29% 5.36%++
- -------------------------------------------------------------------------------
Net Assets,
End of Period (000s) $225,111 $146,103 $88,484 $151,840 $57,698
- -------------------------------------------------------------------------------
Ratios to Average
Net Assets:
Expenses (4)(5) 0.23%+ 0.23% 0.23% 0.21% 0.16%+
Net investment income 5.02+ 4.86 5.33 5.18 5.28+
===============================================================================
(1) For the six months ended November 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the period from June 16, 1995 (commencement of operations) to
May 31, 1996.
(4) The Manager has waived a portion of its fees for the Portfolio for period
ended November 30, 1999, the years ended May 31, 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 Net Expense Ratio
Investment Income Without Fee Waiver
----------------------------------- ----------------------------------
1999(1) 1999 1998 1997 1996 1999(1) 1999 1998 1997 1996
------- ------ ----- ------ ----- ------- ----- ----- ----- -----
$0.002 $0.002 $0.002 $0.001 $0.002 0.49%+ 0.42% 0.39% 0.43% 0.55%
(5) 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 beneficial interest outstanding throughout each
year ended May 31, except where noted:
Class A Shares
----------------------------------------------------
Municipal Portfolio 1999(1)(2) 1999 1998 1997 1996(3)
- --------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------
Net investment income (4) 0.016 0.031 0.035 0.034 0.035
Distributions from net
investment income (0.016) (0.031) (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 $1.00
- --------------------------------------------------------------------------------
Total Return 1.60%++ 3.18% 3.56% 3.40% 3.55%++
- --------------------------------------------------------------------------------
Net Assets,
End of Period (000s) $151,703 $311,543 $85,671 $23,666 $59,308
- --------------------------------------------------------------------------------
Ratios to Average
Net Assets:
Expenses (4)(5) 0.23% 0.23% 0.23% 0.21% 0.15%+
Net investment income 3.17 3.09 3.50 3.34 3.46+
- --------------------------------------------------------------------------------
(1) For the six months ended November 30, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the period from June 16, 1995 (commencement of operations) to
May 31, 1996.
(4) The Manager has waived all or part of its fees for the Portfolio for the
period ended November 30, 1999, the years ended May 31, 1999, 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
------------------------------------ ---------------------------------
1999(1) 1999 1998 1997 1996 1999(1) 1999 1998 1997 1996
------ ------ ----- ------ ------ ------ ----- ----- ----- -----
Class A $0.001 $0.002 $0.001 $0.004 $0.003 0.34% 0.39% 0.41% 0.41% 0.69%
(5) 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 1999 Semi-Annual Report to Shareholders
<PAGE>
[LOGO OF SALOMON SMITH BARNEY]
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
Joseph P. Deane
Vice President and
Investment Officer
Joseph Benevento
Vice President and
Investment Officer
Irving P. David
Controller
Christina T. Sydor
Secretary
Investment Manager
SSB Citi Fund Management LLC
Distributor
CFBDS, Inc.
Custodian
PNC Bank, N.A.
Transfer Agent
Smith Barney Private Trust Company
388 Greenwich Street, 22nd Floor
New York, New York 10013
Sub-Transfer Agent
PFPC Global Fund Services
P.O. Box 9699
Providence, Rhode Island 02940-9699
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/mutualfunds
FD2405 1/00
