UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-2490
Smith Barney Money Funds, Inc.
(Exact name of registrant as specified in charter)
125 Broad Street, New York, NY 10004
(Address of principal executive offices) (Zip code)
Christina T. Sydor, Esq.
300 First Stamford Place
Stamford, CT 06902
(Name and address of agent for service)
Registrant's telephone number, including area code:
(800) 451-2010
Date of fiscal year end: December 31
Date of reporting period: June 30, 2003
ITEM 1. REPORT TO STOCKHOLDERS.
The Semi-Annual Report to Stockholders is filed herewith.
SMITH BARNEY
MONEY FUNDS, INC.
SEMI-ANNUAL REPORT | JUNE 30, 2003
[LOGO]Smith Barney
Mutual Funds
Your Serious Money. Professionally Managed./(R)/
Your Serious Money. Professionally Managed./(R)/ is a registered service mark of
Citigroup Global Markets Inc.
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
WHAT'S INSIDE
Letter from the Chairman .....................................................1
Schedules of Investments .....................................................2
Statements of Assets and Liabilities .........................................9
Statements of Operations ....................................................10
Statements of Changes in Net Assets .........................................11
Notes to Financial Statements ...............................................14
Financial Highlights ........................................................20
LETTER FROM THE CHAIRMAN
[PHOTO]
R. JAY GERKEN, CFA
Chairman, President and
Chief Executive Officer
Dear Shareholder,
The philosopher Bertrand Russell famously remarked that, "Change is one thing,
progress is another." You will notice in the following pages that we have begun
to implement some changes to your shareholder report and we will be reflecting
other changes in future reports. Our aim is to make meaningful improvements in
reporting on the management of your Fund and its performance, not just to enact
change for change's sake. Please bear with us during this transition period.
I invite you to read this report in full. Please take the opportunity to talk
to your financial adviser about this report or any other questions or concerns
you have about your Fund and your financial future. As always, thank you for
entrusting your assets to us. We look forward to helping you continue to meet
your financial goals.
Sincerely,
/s/ R. Jay Gerken
R. Jay Gerken, CFA
Chairman, President and Chief Executive Officer
July 22, 2003
1 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) JUNE 30, 2003
CASH PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
- -----------------------------------------------------------------------------------
U.S. AGENCIES AND INSTRUMENTALITIES -- 3.5%
$ 99,450,000 Federal Home Loan Bank
mature 8/8/03 to 8/27/03 1.24% $ 99,274,790
272,350,000 Federal Home Loan Mortgage Corp.
mature 7/25/03 to 7/28/03 1.22 to 1.25 272,117,620
373,040,000 Federal National Mortgage Association
mature 8/13/03 to 12/24/03 0.89 to 1.24 372,215,948
- -----------------------------------------------------------------------------------
TOTAL U.S. AGENCIES AND INSTRUMENTALITIES
(Cost -- $743,608,358) 743,608,358
- -----------------------------------------------------------------------------------
COMMERCIAL PAPER -- 45.1%
167,256,000 ABN AMRO N.A. Finance Inc.
mature 7/7/03 to 8/11/03 1.04 to 1.15 167,144,753
235,366,000 ABSC Capital Corp. mature 7/21/03 to 9/9/03 1.03 to 1.13 235,015,168
190,087,000 Amstel Funding Corp.
mature 7/2/03 to 10/28/03 1.03 to 1.25 189,839,837
165,000,000 ANZ Delaware Inc. mature 7/2/03 to 7/7/03 1.24 to 1.26 164,980,503
250,000,000 Atlantis One Funding
mature 9/10/03 to 10/28/03 1.05 to 1.26 249,210,736
196,832,000 Atomium Funding Corp.
mature 7/9/03 to 10/2/03 1.06 to 1.30 196,539,905
192,051,000 Bryant Park Funding LLC
mature 7/3/03 to 7/31/03 1.22 to 1.28 191,950,616
242,587,000 Cancara Asset Securities Ltd.
mature 7/14/03 to 8/8/03 1.08 to 1.27 242,404,868
200,000,000 CBA Delaware Finance
mature 7/7/03 to 8/1/03 1.03 to 1.24 199,873,539
130,000,000 Compass Securitization LLC
mature 7/9/03 to 9/5/03 1.10 to 1.28 129,991,124
50,000,000 DaimlerChrysler Revolving Auto Conduit LLC
matures 7/8/03 1.27 49,987,750
223,400,000 Danske Corp. mature 7/14/03 to 10/27/03 0.98 to 1.24 222,945,233
136,700,000 Dexia Delaware LLC matures 9/10/03 1.07 136,411,525
50,577,000 Erasmus Capital Corp. matures 11/17/03 1.24 50,336,801
50,000,000 Galleon Capital Corp. matures 7/7/03 1.27 49,989,417
145,000,000 General Electric Capital Corp.
mature 8/28/03 to 9/24/03 1.12 to 1.26 144,644,053
90,716,000 Giro Multi-Funding Corp. matures 8/15/03 1.24 to 1.25 90,628,585
180,000,000 Goldman, Sachs & Co.
mature 7/7/03 to 8/18/03 1.23 to 1.28 179,820,283
100,000,000 Grampian Funding Ltd.
mature 7/25/03 to 8/14/03 1.23 to 1.27 99,882,500
90,000,000 Greyhawk Funding LLC matures 7/10/03 1.24 89,972,100
165,158,000 Hannover Funding Co. LLC matures 7/25/03 1.09 165,037,941
See Notes to Financial Statements.
2 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
CASH PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
- -------------------------------------------------------------------------------------
COMMERCIAL PAPER -- 45.1% (continued)
$120,726,000 Hatteras Funding Corp.
mature 8/21/03 to 8/29/03 1.22% to 1.24% $ 120,503,450
325,000,000 HBOS Treasury Service PLC
mature 7/2/03 to 8/8/03 1.05 to 1.31 324,771,972
180,000,000 ING US Funding LLC mature 7/8/03 to 9/8/03 1.02 to 1.23 179,828,925
159,700,000 Lake Constance Funding LLC
mature 7/24/03 to 11/12/03 1.02 to 1.22 159,387,293
160,000,000 Lloyds TSB Bank PLC matures 7/25/03 1.24 159,868,267
290,000,000 Mane Funding Corp. mature 7/8/03 to 8/27/03 0.96 to 1.26 289,761,895
200,000,000 Merrill Lynch & Co., Inc. matures 7/1/03 1.30 200,000,000
198,000,000 MICA Funding LLC mature 7/22/03 to 9/12/03 1.03 to 1.27 197,727,948
258,150,000 MOAT Funding LLC mature 8/1/03 to 11/7/03 1.05 to 1.26 257,594,351
265,000,000 Morgan Stanley mature 7/10/03 to 7/15/03 1.07 to 1.25 264,908,444
129,027,000 Ness LLC mature 7/14/03 to 10/24/03 1.22 to 1.27 128,810,858
115,862,000 Nieuw Amsterdam Receivables Corp.
mature 7/2/03 to 9/10/03 1.25 to 1.26 115,790,449
407,000,000 Nordea N.A., Inc. mature 7/11/03 to 8/5/03 1.02 to 1.24 406,752,881
212,680,000 Nyala Funding LLC
mature 7/15/03 to 10/15/03 1.00 to 1.26 212,245,161
45,000,000 Pennine Funding LLC matures 7/10/03 1.28 44,985,713
75,000,000 Perry Global Funding LLC
mature 7/7/03 to 8/14/03 1.22 to 1.28 74,920,153
123,100,000 Polonius Inc. mature 7/21/03 to 8/12/03 1.02 to 1.24 122,987,915
100,000,000 Royal Bank of Scotland PLC matures 7/11/03 1.25 99,965,278
75,000,000 Saint Germain Holdings Ltd.
mature 7/1/03 to 7/11/03 1.14 to 1.27 74,984,167
187,450,000 San Paolo IMI US Financial Co.
mature 7/2/03 to 7/14/03 1.06 to 1.25 187,417,384
178,000,000 Silver Tower US Funding
mature 8/15/03 to 9/5/03 1.15 to 1.26 177,651,383
301,787,000 Societe Generale N.A. Inc.
mature 7/1/03 to 9/4/03 1.00 to 1.30 301,509,572
69,550,000 Special Purpose Accounts Receivables
mature 7/23/03 to 8/12/03 1.07 to 1.22 69,472,861
206,500,000 Spintab-Swedmortgage AB
mature 8/19/03 to 8/26/03 0.96 to 1.07 206,194,610
100,000,000 Stanfield Victoria Funding LLC
matures 1/6/04 1.29 100,000,000
340,000,000 Starbird Funding Corp.
mature 7/1/03 to 8/14/03 1.18 to 1.35 339,862,528
42,830,000 Superior Funding Capital matures 7/18/03 1.11 42,807,550
50,000,000 Surrey Funding Corp. matures 9/26/03 1.26 49,848,958
80,000,000 Svenska Handelsbanken Inc. matures 8/26/03 1.04 79,870,578
See Notes to Financial Statements.
3 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
CASH PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
- ----------------------------------------------------------------------------------------
COMMERCIAL PAPER -- 45.1% (continued)
$150,564,000 Tasman Funding Inc. mature 7/8/03 to 7/9/03 1.26% $ 150,523,561
400,000,000 UBS Finance LLC matures 7/1/03 1.31 400,000,000
165,000,000 Unicredit Delaware Inc.
mature 7/11/03 to 9/15/03 0.92 to 1.25 164,849,517
286,355,000 Victory Receivables Corp.
mature 7/10/03 to 8/12/03 1.11 to 1.28 286,111,797
70,000,000 Westpac Capital Corp. matures 8/21/03 1.25 69,877,033
145,000,000 Yorktown Capital LLC matures 7/9/03 1.23 144,960,367
- ----------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost -- $9,453,360,056) 9,453,360,056
- ----------------------------------------------------------------------------------------
PROMISSORY NOTE -- 1.0%
200,000,000 Goldman, Sachs & Co. matures 8/25/03+
(Cost -- $200,000,000) 1.25 200,000,000
- ----------------------------------------------------------------------------------------
MEDIUM-TERM NOTES -- 8.6%
300,000,000 General Electric Capital Corp.
matures 10/17/03+ 1.17 300,000,000
125,000,000 K2 USA LLC matures 1/8/04+ 1.34 125,000,000
200,000,000 Links Finance LLC mature 9/30/03 to 6/28/04+ 1.09 to 1.15 199,978,743
200,000,000 Merrill Lynch & Co., Inc. matures 2/11/04+ 1.53 200,000,000
200,000,000 Morgan Stanley matures 7/1/04+ 1.58 200,000,000
258,000,000 PACE mature 12/15/03 to 6/15/04+ 1.07 to 1.29 257,983,768
200,000,000 Sigma Finance Inc. mature 7/7/03 to 7/22/03+ 1.07 to 1.26 199,999,256
224,500,000 WhistleJacket Capital Ltd.
mature 1/15/04 to 6/10/04+ 1.17 to 1.34 224,486,980
100,000,000 White Pine Finance LLC matures 3/12/04+ 1.34 99,993,033
- ----------------------------------------------------------------------------------------
TOTAL MEDIUM-TERM NOTES
(Cost -- $1,807,441,780) 1,807,441,780
- ----------------------------------------------------------------------------------------
CERTIFICATE OF DEPOSIT -- 1.9%
392,000,000 Wells Fargo Bank N.A. mature 8/1/03 to 8/28/03
(Cost -- $392,004,850) 1.03 to 1.20 392,004,850
- ----------------------------------------------------------------------------------------
FOREIGN CERTIFICATES OF DEPOSIT -- 33.5%
21,000,000 ABN AMRO Bank N.V. matures 9/9/03 1.08 21,002,439
373,500,000 Bank of Montreal mature 7/28/03 to 9/2/03 1.04 to 1.20 373,500,000
100,000,000 Bank of Nova Scotia matures 8/21/03 1.24 100,000,000
645,000,000 Barclays Bank PLC mature 7/3/03 to 11/24/03 0.92 to 1.28 645,008,870
255,000,000 Bayerische Landesbank
mature 9/8/03 to 11/3/03 1.18 to 1.24 255,026,667
405,000,000 BNP Paribas NY mature 8/4/03 to 11/17/03 1.18 to 1.24 405,000,000
385,000,000 Canadian Imperial Bank of Commerce NY
mature 7/21/03 to 10/6/03 1.03 to 1.34 385,002,912
See Notes to Financial Statements.
4 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
CASH PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
- --------------------------------------------------------------------------------------
FOREIGN CERTIFICATES OF DEPOSIT -- 33.5% (continued)
$338,500,000 Credit Agricole Indosuez NY
mature 7/3/03 to 7/24/03 1.23% to 1.25% $ 338,500,784
349,000,000 Credit Lyonnais Bank
mature 9/5/03 to 9/29/03 0.93 to 1.21 349,029,148
199,000,000 CS First Boston Corp.
mature 3/5/03 to 8/29/03 1.05 to 1.29 199,034,729
100,000,000 CS First Boston Corp. NY matures 3/8/03+ 1.30 to 1.33 100,000,000
145,000,000 Danske Bank mature 7/1/03 to 7/7/03 1.21 to 1.26 145,000,116
399,000,000 Dexia Bank NY mature 7/2/03 to 10/6/03 1.02 to 1.26 399,001,947
324,000,000 HBOS PLC mature 7/3/03 to 9/12/03 0.93 to 1.27 324,037,434
110,000,000 ING Bank N.V. matures 8/18/03 1.14 110,001,463
60,000,000 Landesbank Hessen-Thurin matures 8/29/03 1.29 59,999,006
284,500,000 Lloyds TSB Bank PLC
mature 7/15/03 to 10/20/03 0.92 to 1.25 284,504,110
315,000,000 NordDeutsche Landesbank
mature 8/1/03 to 9/23/03 0.92 to 1.21 315,012,687
68,000,000 Rabobank Nederland N.V. NY matures 7/3/03 1.19 68,000,038
172,000,000 Royal Bank of Scotland NY matures 8/27/03 1.04 172,002,718
452,000,000 Societe Generale mature 7/21/03 to 10/9/03 1.04 to 1.25 452,018,424
470,000,000 Svenska Handelsbanken NY
mature 7/7/03 to 9/29/03 1.07 to 1.24 470,042,647
395,000,000 Toronto Dominion Bank NY
mature 8/14/03 to 9/22/03 0.92 to 1.23 395,002,053
350,000,000 Unicredito Italiano S.p.A.
mature 7/11/03 to 9/15/03 1.00 to 1.22 350,007,716
320,000,000 Westdeutsche Landesbank NY
mature 7/2/03 to 8/18/03 1.19 to 1.28 320,000,000
- --------------------------------------------------------------------------------------
TOTAL FOREIGN CERTIFICATES OF DEPOSIT
(Cost -- $7,035,735,908) 7,035,735,908
- --------------------------------------------------------------------------------------
TIME DEPOSITS -- 6.4%
100,000,000 BNP Paribas Paris matures 7/1/03 1.31 100,000,000
391,217,000 Chase Manhattan Bank USA N.A.
matures 7/1/03 1.34 391,217,000
300,000,000 HSBC Bank USA matures 7/1/03 1.34 300,000,000
400,000,000 National Australia Bank matures 7/1/03 1.34 400,000,000
150,000,000 Royal Bank of Canada matures 7/1/03 1.30 150,000,000
- --------------------------------------------------------------------------------------
TOTAL TIME DEPOSITS
(Cost -- $1,341,217,000) 1,341,217,000
- --------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
(Cost -- $20,973,367,952*) $20,973,367,952
- --------------------------------------------------------------------------------------
+ Variable interest rate -- subject to periodic change.
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
5 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
GOVERNMENT PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
- -----------------------------------------------------------------------------------------
U.S. AGENCIES AND INSTRUMENTALITIES -- 80.0%
$245,065,000 Federal Farm Credit Bank
mature 10/9/03 to 8/24/04 1.19% to 1.24% $ 244,795,399
726,700,000 Federal Home Loan Bank
mature 7/9/03 to 1/6/04 0.91 to 1.30 726,133,376
664,235,000 Federal Home Loan Mortgage Corp.
mature 7/15/03 to 11/19/03 1.00 to 1.25 662,967,794
948,484,000 Federal National Mortgage Association
mature 7/9/03 to 9/17/03 0.97 to 1.29 947,267,726
- -----------------------------------------------------------------------------------------
TOTAL U.S. AGENCIES AND INSTRUMENTALITIES
(Cost -- $2,581,164,295) 2,581,164,295
- -----------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 20.0%
340,000,000 Goldman, Sachs & Co., 1.20% due 7/1/03;
Proceeds at maturity -- $340,011,333;
(Fully collateralized by U.S. Treasury Bonds,
8.125% due 8/15/19 to 8/15/21;
Market value -- $346,801,361) 340,000,000
3,772,000 J.P. Morgan Chase & Co., 1.05% due 7/1/03;
Proceeds at maturity -- $3,772,110; (Fully
collateralized by U.S. Treasury Notes, 2.125%
due 8/31/04; Market value -- $3,850,324) 3,772,000
300,000,000 Merrill Lynch & Co., Inc., 1.15% due 7/1/03;
Proceeds at maturity -- $300,009,583;
(Fully collateralized by various U.S.
government agency obligations, 0.000%
to 7.415% due 8/13/08 to 2/24/23;
Market value -- $306,000,000) 300,000,000
- -----------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost -- $643,772,000) 643,772,000
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
(Cost -- $3,224,936,295*) $3,224,936,295
- -----------------------------------------------------------------------------------------
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
6 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
RETIREMENT PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
- ----------------------------------------------------------------------------------------
U.S. AGENCIES AND INSTRUMENTALITIES -- 3.3%
$ 5,000,000 Federal Home Loan Bank matures 8/8/03 1.24% $ 4,993,561
10,000,000 Federal Home Loan Mortgage Corp.
mature 7/25/03 to 7/28/03 1.24 to 1.25 9,991,250
10,400,000 Federal National Mortgage Association
mature 8/13/03 to 9/3/03 0.94 to 1.21 10,383,809
- ----------------------------------------------------------------------------------------
TOTAL U.S. AGENCIES AND INSTRUMENTALITIES
(Cost -- $25,368,620) 25,368,620
- ----------------------------------------------------------------------------------------
COMMERCIAL PAPER -- 43.6%
15,000,000 ABN AMRO N.A. Finance Inc.
mature 7/23/03 to 8/11/03 1.04 to 1.05 14,984,947
5,000,000 ABSC Capital Corp. matures 9/9/03 1.13 4,989,014
10,000,000 ANZ Delaware Inc. matures 7/7/03 1.24 9,997,933
5,000,000 Cancara Asset Securitization LLC matures 7/15/03 1.23 4,997,609
30,000,000 CBA Finance Inc. mature 7/7/03 to 7/24/03 1.00 to 1.24 29,988,122
20,000,000 Danske Corp. mature 7/14/03 to 9/10/03 1.04 to 1.20 19,974,582
10,000,000 Dexia Delaware LLC matures 9/10/03 1.07 9,978,897
13,000,000 General Electric Capital Corp.
mature 8/28/03 to 9/24/03 1.12 to 1.26 12,969,059
20,000,000 Goldman, Sachs & Co. mature 7/7/03 to 8/4/03 1.27 to 1.28 19,990,829
15,000,000 HBOS Treasury Service PLC mature 7/9/03 to 9/9/03 1.14 to 1.31 14,976,389
25,000,000 ING US Funding LLC mature 7/8/03 to 9/8/03 1.02 to 1.23 24,983,792
5,000,000 Lloyds TSB Bank PLC matures 7/25/03 1.24 4,995,883
25,000,000 Morgan Stanley mature 7/10/03 to 7/15/03 1.07 to 1.25 24,990,629
25,000,000 Nordea N.A., Inc. mature 7/11/03 to 7/21/03 1.10 to 1.24 24,986,611
10,000,000 Nyala Funding LLC mature 8/4/03 to 9/15/03 1.24 to 1.27 9,981,020
5,000,000 Royal Bank of Scotland PLC matures 7/15/03 1.00 4,998,056
5,000,000 Saint Germain Holdings Ltd. matures 7/14/03 1.14 4,997,941
15,000,000 San Paolo IMI US Financial Co.
mature 7/2/03 to 7/14/03 1.06 to 1.26 14,997,736
10,000,000 Societe Generale N.A. Inc.
mature 7/1/03 to 7/10/03 1.24 9,998,450
10,000,000 Spintab-Swedmortgage AB
mature 8/19/03 to 8/26/03 0.99 to 1.07 9,985,018
4,541,000 Surrey Funding Corp. matures 9/26/03 1.26 4,527,282
5,400,000 Svenska Handelsbanken matures 7/1/03 1.24 5,400,000
10,000,000 Toronto Dominion Holdings USA matures 8/8/03 1.10 9,988,389
16,000,000 UBS Finance LLC mature 7/1/03 to 7/7/03 1.24 to 1.31 15,998,760
5,000,000 Unicredit Delaware Inc. matures 9/15/03 0.93 4,990,183
15,000,000 Victory Receivables Corp.
mature 7/10/03 to 7/25/03 1.24 to 1.29 14,990,121
5,000,000 Westpac Capital Corp. matures 8/21/03 1.25 4,991,217
- ----------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost -- $338,648,469) 338,648,469
- ----------------------------------------------------------------------------------------
See Notes to Financial Statements.
7 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
RETIREMENT PORTFOLIO
FACE ANNUALIZED
AMOUNT SECURITY YIELD VALUE
- -------------------------------------------------------------------------------------
FOREIGN CERTIFICATES OF DEPOSIT -- 43.3%
$ 5,000,000 ABN AMRO Bank N.V. matures 9/9/03 1.08% $ 5,000,581
10,000,000 ANZ Banking Group Ltd. matures 8/11/03 1.20 10,000,113
20,000,000 Bank of Montreal mature 7/28/03 to 9/2/03 1.04 to 1.20 20,000,000
5,000,000 Bank of Nova Scotia matures 8/21/03 1.24 5,000,000
25,000,000 Barclays Bank PLC mature 7/3/03 to 9/24/03 0.92 to 1.25 25,000,188
20,000,000 Bayerische Landesbank mature 9/8/03 to 11/3/03 1.18 to 1.24 20,002,024
10,000,000 BNP Paribas NY matures 8/4/03 1.18 10,000,000
20,000,000 Canadian Imperial Bank of Commerce NY
mature 8/20/03 to 10/6/03 1.03 to 1.20 20,000,000
15,000,000 Credit Agricole Indosuez NY
mature 7/8/03 to 7/15/03 1.23 to 1.25 15,000,000
13,000,000 Credit Lyonnais Bank mature 9/5/03 to 9/29/03 0.93 to 1.21 13,001,444
15,000,000 CS First Boston Corp. matures 8/29/03 1.05 15,000,000
10,000,000 Danske Bank mature 7/1/03 to 7/7/03 1.21 to 1.26 10,000,008
18,000,000 Dexia Bank NY mature 7/2/03 to 10/6/03 1.03 to 1.26 18,000,074
11,000,000 HBOS PLC mature 7/29/03 to 9/12/03 0.93 to 1.27 11,001,568
19,000,000 Lloyds TSB Bank PLC mature 7/15/03 to 9/4/03 1.00 to 1.25 18,999,932
10,000,000 NordDeutsche Landesbank
mature 8/25/03 to 9/23/03 0.92 to 1.21 10,000,195
10,000,000 Rabobank Nederland N.V. NY matures 7/3/03 1.19 10,000,006
10,000,000 Royal Bank of Scotland NY matures 8/27/03 1.04 10,000,158
20,000,000 Societe Generale mature 7/21/03 to 10/9/03 1.12 to 1.25 20,000,838
10,000,000 Svenska Handelsbanken NY matures 9/29/03 1.07 10,003,327
10,000,000 Toronto Dominion Bank NY
mature 8/18/03 to 9/22/03 0.92 to 1.23 10,000,128
20,000,000 Unicredito Italiano S.p.A.
mature 7/11/03 to 9/12/03 1.11 to 1.22 20,000,308
20,000,000 Wells Fargo Bank N.A. mature 7/17/03 to 8/28/03 1.03 to 1.23 19,999,999
10,000,000 Westdeutsche Landesbank NY
mature 7/2/03 to 8/18/03 1.26 to 1.28 10,000,000
- -------------------------------------------------------------------------------------
TOTAL FOREIGN CERTIFICATES OF DEPOSIT
(Cost -- $336,010,891) 336,010,891
- -------------------------------------------------------------------------------------
TIME DEPOSITS -- 9.8%
25,952,000 Chase Manhattan Bank USA N.A. matures 7/1/03 1.34 25,952,000
25,000,000 HSBC Bank USA matures 7/1/03 1.24 25,000,000
25,000,000 National Australia Bank matures 7/1/03 1.34 25,000,000
- -------------------------------------------------------------------------------------
TOTAL TIME DEPOSITS
(Cost -- $75,952,000) 75,952,000
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
(Cost -- $775,979,980*) $775,979,980
- -------------------------------------------------------------------------------------
* Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
8 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) JUNE 30, 2003
Cash Government Retirement
Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------
ASSETS:
Investments, at amortized cost $20,973,367,952 $3,224,936,295 $775,979,980
Cash 236 661 405
Receivable for Fund shares sold 442,951,553 60,558,438 3,926,242
Interest receivable 13,909,499 5,072,518 605,612
Other assets 330,535 48,471 16,945
- ---------------------------------------------------------------------------------------
Total Assets 21,430,559,775 3,290,616,383 780,529,184
- ---------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 624,922,381 -- 6,000,421
Payable for Fund shares purchased 516,625,640 62,635,006 13,255,370
Management fees payable 7,024,502 1,164,021 285,358
Dividends payable 5,135,828 798,252 171,370
Distribution plan fees payable 559,713 88,250 21,107
Deferred compensation payable 330,535 48,471 16,945
Accrued expenses 12,873,830 1,230,169 182,330
- ---------------------------------------------------------------------------------------
Total Liabilities 1,167,472,429 65,964,169 19,932,901
- ---------------------------------------------------------------------------------------
Total Net Assets $20,263,087,346 $3,224,652,214 $760,596,283
- ---------------------------------------------------------------------------------------
NET ASSETS:
Par value of capital shares
(50,000,000,000, 10,000,000,000 and
5,000,000,000 shares authorized,
respectively; par value $0.01 per share) $ 202,629,745 $ 32,246,336 $ 7,605,963
Capital paid in excess of par value 20,060,344,775 3,192,387,271 752,990,079
Undistributed net investment income -- -- 241
Accumulated net realized gain
from investment transactions 112,826 18,607 --
- ---------------------------------------------------------------------------------------
Total Net Assets $20,263,087,346 $3,224,652,214 $760,596,283
- ---------------------------------------------------------------------------------------
Shares Outstanding:
Class A 20,177,361,646 3,222,088,876 760,596,283
Class L 377,624 41,220 --
Class Y 85,235,240 2,503,511 --
Net Asset Value, per class $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------
See Notes to Financial Statements.
9 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
STATEMENTS OF OPERATIONS (UNAUDITED)
For the Six Months Ended June 30, 2003
Cash Government Retirement
Portfolio Portfolio Portfolio
-----------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $145,305,376 $21,420,459 $5,278,789
----------------------------------------------------------------------------
EXPENSES:
Management fees (Note 3) 44,512,219 7,276,130 1,827,819
Distribution plan fees (Note 5) 10,652,220 1,661,906 406,182
Shareholder servicing fees (Note 5) 10,165,425 916,915 475,623
Custody 467,186 76,516 28,826
Shareholder communications (Note 5) 218,872 14,223 10,802
Registration fees 183,876 50,581 24,795
Directors' fees 86,096 13,819 3,640
Audit and legal 35,852 26,430 16,679
Other 50,428 23,560 9,245
----------------------------------------------------------------------------
Total Expenses 66,372,174 10,060,080 2,803,611
Less: Management fee waiver (Note 3) -- (4,842) (1,791)
----------------------------------------------------------------------------
Net Expenses 66,372,174 10,055,238 2,801,820
----------------------------------------------------------------------------
Net Investment Income 78,933,202 11,365,221 2,476,969
----------------------------------------------------------------------------
Net Realized Gain From
Investment Transactions 112,826 25,301 --
----------------------------------------------------------------------------
Increase in Net Assets From Operations $ 79,046,028 $11,390,522 $2,476,969
----------------------------------------------------------------------------
See Notes to Financial Statements.
10 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 2003 (unaudited)
and the Year Ended December 31, 2002
Cash Portfolio 2003 2002
- ------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 78,933,202 $ 347,335,927
Net realized gain 112,826 42,844
- ------------------------------------------------------------------------------------------------------
Increase in Net Assets From Operations 79,046,028 347,378,771
- ------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM (NOTES 2 AND 6):
Net Investment income (78,933,202) (347,378,771)
- ------------------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (78,933,202) (347,378,771)
- ------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 7):
Net proceeds from sale of shares 41,507,116,438 91,261,777,742
Net asset value of shares issued for reinvestment of dividends 71,579,385 336,979,727
Cost of shares reacquired (44,500,019,187) (100,599,025,378)
- ------------------------------------------------------------------------------------------------------
Decrease in Net Assets From Fund Share Transactions (2,921,323,364) (9,000,267,909)
- ------------------------------------------------------------------------------------------------------
Decrease in Net Assets (2,921,210,538) (9,000,267,909)
NET ASSETS:
Beginning of period 23,184,297,884 32,184,565,793
- ------------------------------------------------------------------------------------------------------
End of period $ 20,263,087,346 $ 23,184,297,884
- ------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
11 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
For the Six Months Ended June 30, 2003 (unaudited)
and the Year Ended December 31, 2002
Government Portfolio 2003 2002
- ----------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 11,365,221 $ 45,672,627
Net realized gain 25,301 51,600
- ---------------------------------------------------------------------------------------------------
Increase in Net Assets From Operations 11,390,522 45,724,227
- ---------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
(NOTES 2 AND 6):
Net investment income (11,365,221) (45,724,227)
Net realized gains (6,694) --
- ---------------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (11,371,915) (45,724,227)
- ---------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 7):
Net proceeds from sale of shares 5,209,719,995 11,059,499,198
Net asset value of shares issued for reinvestment of dividends 10,327,360 44,636,094
Cost of shares reacquired (5,380,407,128) (11,970,131,557)
- ---------------------------------------------------------------------------------------------------
Decrease in Net Assets From Fund Share Transactions (160,359,773) (865,996,265)
- ---------------------------------------------------------------------------------------------------
Decrease in Net Assets (160,341,166) (865,996,265)
NET ASSETS:
Beginning of period 3,384,993,380 4,250,989,645
- ---------------------------------------------------------------------------------------------------
End of period $ 3,224,652,214 $ 3,384,993,380
- ---------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
12 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
For the Six Months Ended June 30, 2003 (unaudited)
and the Year Ended December 31, 2002
Retirement Portfolio 2003 2002
- -------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 2,476,969 $ 9,824,543
- ------------------------------------------------------------------------------------------------
Increase in Net Assets From Operations 2,476,969 9,824,543
- ------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM (NOTES 2 AND 6):
Net investment income (2,476,728) (9,824,784)
- ------------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (2,476,728) (9,824,784)
- ------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 7):
Net proceeds from sale of shares 499,633,743 1,232,035,532
Net asset value of shares issued for reinvestment of dividends 2,274,209 9,633,186
Cost of shares reacquired (562,789,288) (1,409,776,412)
- ------------------------------------------------------------------------------------------------
Decrease in Net Assets From Fund Share Transactions (60,881,336) (168,107,694)
- ------------------------------------------------------------------------------------------------
Decrease in Net Assets (60,881,095) (168,107,935)
NET ASSETS:
Beginning of period 821,477,378 989,585,313
- ------------------------------------------------------------------------------------------------
End of period* $ 760,596,283 $ 821,477,378
- ------------------------------------------------------------------------------------------------
* Undistributed net investment income $241 --
- ------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
13 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Significant Accounting Policies
Smith Barney Money Funds, Inc. ("Company"), a Maryland corporation, is
registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company. The Company consists of
three separate investment funds ("Funds"): the Cash Portfolio, the Government
Portfolio and the Retirement Portfolio.
The significant accounting policies consistently followed by the Funds are: (a)
transactions in money market instruments and U.S. government obligations are
accounted for on trade date; (b) the Funds 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 the accrual basis; (d) direct expenses are charged to each Fund and
each class; management fees and general fund expenses are allocated on the
basis of relative net assets; (e) gains or losses on the sale of securities are
calculated by using the specific identification method; (f ) the Funds 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 (g) 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. Dividends
Each Fund 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 Fund's shares on the payable date.
Capital gain distributions, if any, are taxable to shareholders, and are
declared and paid at least annually.
14 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
3. Management Agreement and Other Transactions
Smith Barney Fund Management LLC ("SBFM"), an indirect wholly-owned subsidiary
of Citigroup Inc. ("Citigroup"), acts as investment manager to the Funds. As
compensation for its services, each Fund pays SBFM a daily fee calculated at
the following rates: Cash Portfolio: 0.45% on the first $6.0 billion of average
daily net assets, 0.425% on the next $6.0 billion, 0.40% on the next $6.0
billion and 0.35% on the average daily net assets in excess of $18.0 billion;
Government Portfolio: 0.45% on the first $2.5 billion of the average daily net
assets, 0.40% on the next $2.5 billion and 0.35% on average daily net assets in
excess of $5.0 billion; and Retirement Portfolio: 0.45% on the first $1.0
billion of average daily net assets, 0.40% on the next $1.0 billion and 0.35%
on average daily net assets in excess of $2.0 billion. These fees are
calculated daily and paid monthly. For the six months ended June 30, 2003, SBFM
waived a portion of its management fees amounting to $4,842 and $1,791 for the
Government and Retirement Portfolios, respectively.
Citicorp Trust Bank, fsb. ("CTB"), another subsidiary of Citigroup, acts as the
Funds' transfer agent. PFPC Global Services ("PFPC") and Primerica Shareholder
Services ("PSS"), another subsidiary of Citigroup, act as the Funds'
sub-transfer agents. CTB receives account fees and asset-based fees that vary
according to the size and type of account. PFPC and PSS are responsible for
shareholder recordkeeping and financial processing for all shareholder
accounts. For the six months ended June 30, 2003, the Funds' paid transfer
agent fees of $15,114,173, $973,549 and $435,014 for the Cash, Government and
Retirement Portfolios, respectively, to CTB.
Citigroup Global Markets Inc. ("CGM"), formerly known as Salomon Smith Barney
Inc., and PFS Distributors, Inc., both of which are subsidiaries of Citigroup,
act as the Funds' distributors.
All officers and one Director of the Company are employees of Citigroup or its
affiliates.
15 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. Repurchase Agreements
Each Fund purchases, and the custodian takes possession of , U.S. government
securities from 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 Funds require continual
maintenance of the market value (plus accrued interest) of the collateral in
amounts at least equal to the repurchase price.
At June 30, 2003, the Cash and Retirement Portfolios did not have any
repurchase agreement outstanding.
5. Class Specific Expenses
Pursuant to a Distribution Plan, each Fund makes payments to CGM for assistance
in distributing Class A and L shares calculated at an annual rate of 0.10% of
the average daily net assets of each class, respectively. For the six months
ended June 30, 2003, total Distribution Plan fees incurred, which are accrued
daily and paid monthly, were as follows:
Class A Class L
----------------------------------------
Cash Portfolio $10,652,035 $185
Government Portfolio 1,661,845 61
Retirement Portfolio 406,182 --
----------------------------------------
For the six months ended June 30, 2003, total Shareholders Servicing fees were
as follows:
Class A Class L Class Y Class Z
--------------------------------------------------------
Cash Portfolio $10,059,578 $176 $34,305 $71,366
Government Portfolio 916,497 82 336 --
Retirement Portfolio 475,623 -- -- --
--------------------------------------------------------
For the six months ended June 30, 2003, total Shareholder Communication
expenses were as follows:
Class A Class L Class Y Class Z
-----------------------------------------------------
Cash Portfolio $216,287 $ 4 $776 $1,805
Government Portfolio 14,221 1 1 --
Retirement Portfolio 10,802 -- -- --
-----------------------------------------------------
16 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
6. Distributions Paid to Shareholders by Class
Six Months Ended Year Ended
Cash Portfolio June 30, 2003 December 31, 2002
--------------------------------------------------------
Net Investment Income
Class A $77,591,408 $340,865,876
Class L 1,342 3,979
Class Y 329,898 846,964
Class Z* 1,010,554 5,661,952
--------------------------------------------------------
Total $78,933,202 $347,378,771
--------------------------------------------------------
Government Portfolio
--------------------------------------------------------
Class A
Net investment income $11,346,706 $ 45,443,904
Net realized gains 6,685 --
--------------------------------------------------------
Total $11,353,391 $ 45,443,904
--------------------------------------------------------
Class L
Net Investment income $ 417 $ 1,376
Net realized gains -- --
--------------------------------------------------------
Total $ 417 $ 1,376
--------------------------------------------------------
Class Y
Net investment income $ 18,098 $ 278,947
Net realized gains 9 --
--------------------------------------------------------
Total $ 18,107 $ 278,947
--------------------------------------------------------
Retirement Portfolio
--------------------------------------------------------
Net Investment Income
Class A $ 2,476,728 $ 9,824,784
--------------------------------------------------------
*As of April 21, 2003, Class Z shares were fully redeemed.
7. Capital Shares
The Company offers multiple classes of shares within the Cash and Government
Portfolios. Class A and Class Y shares can be purchased directly by investors;
Class L and Class Z shares can only be purchased by participants in the Smith
Barney 401(k) Program.
17 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Transactions in shares of each Fund were as follows:
Six Months Ended Year Ended
Cash Portfolio June 30, 2003 December 31, 2002
----------------------------------------------------------------
Class A
Shares sold 41,317,114,398 90,760,175,185
Shares issued on reinvestment 70,455,201 330,807,374
Shares reacquired (43,957,025,098) (100,060,391,471)
----------------------------------------------------------------
Net Decrease (2,569,455,499) (8,969,408,912)
----------------------------------------------------------------
Class L
Shares sold 63,974 88,366
Shares issued on reinvestment 1,241 3,944
Shares reacquired (34,757) (49,149)
----------------------------------------------------------------
Net Increase 30,458 43,161
----------------------------------------------------------------
Class Y
Shares sold 59,826,145 168,716,757
Shares issued on reinvestment 170,568 524,759
Shares reacquired (38,162,393) (166,022,311)
----------------------------------------------------------------
Net Increase 21,834,320 3,219,205
----------------------------------------------------------------
Class Z*
Shares sold 130,111,921 332,797,434
Shares issued on reinvestment 952,375 5,643,650
Shares reacquired (504,796,939) (372,562,447)
----------------------------------------------------------------
Net Decrease (373,732,643) (34,121,363)
----------------------------------------------------------------
Government Portfolio
----------------------------------------------------------------
Class A
Shares sold 5,182,897,911 11,000,216,447
Shares issued on reinvestment 10,309,530 44,356,635
Shares reacquired (5,354,191,271) (11,890,947,145)
----------------------------------------------------------------
Net Decrease (160,983,830) (846,374,063)
----------------------------------------------------------------
Class L
Shares sold 8,682 42,696
Shares issued on reinvestment 356 1,372
Shares reacquired (99,245) (35,623)
----------------------------------------------------------------
Net Increase (Decrease) (90,207) 8,445
----------------------------------------------------------------
Class Y
Shares sold 26,813,402 59,240,055
Shares issued on reinvestment 17,474 278,087
Shares reacquired (26,116,612) (79,148,789)
----------------------------------------------------------------
Net Increase (Decrease) 714,264 (19,630,647)
----------------------------------------------------------------
*As of April 21, 2003, Class Z shares were fully redeemed.
18 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Six Months Ended Year Ended
Retirement Portfolio June 30, 2003 December 31, 2002
----------------------------------------------------------------
Class A
Shares sold 499,633,743 1,232,035,532
Shares issued on reinvestment 2,274,209 9,633,186
Shares reacquired (562,789,288) (1,409,776,412)
----------------------------------------------------------------
Net Decrease (60,881,336) (168,107,694)
----------------------------------------------------------------
8. Subsequent Event
On July 30, 2003, the Board of Directors of Smith Barney Money Funds,
Inc. -- Retirement Portfolio approved a proposed reorganization of the
Retirement Portfolio into the Cash Portfolio. The Cash Portfolio would acquire
the assets and assume the liabilities of the Retirement Portfolio in exchange
for shares of the Cash Portfolio. The Retirement Portfolio would than be
liquidated.
This reorganization is subject to shareholder approval. Retirement Portfolio
shareholders of record on August 21, 2003 will be mailed proxy materials
describing the proposed reorganization on or about September 5, 2003.
19 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
FINANCIAL HIGHLIGHTS
For a share of each class of capital stock outstanding throughout each year
ended December 31, unless otherwise noted:
Class A Shares
--------------------------------------------------
Cash Portfolio 2003/(1)/ 2002 2001 2000 1999 1998
- -----------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------
Net investment income 0.004 0.013 0.037 0.058 0.046 0.050
Dividends from net investment income (0.004) (0.013) (0.037) (0.058) (0.046) (0.050)
- ----------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------
Total Return 0.36%++ 1.28% 3.78% 5.98% 4.73% 5.07%
- ----------------------------------------------------------------------------------------
Net Assets, End of Period (billions) $20 $23 $32 $55 $45 $40
- ----------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses/(2)/ 0.62%+ 0.62% 0.59% 0.57% 0.62% 0.63%
Net investment income 0.74+ 1.27 3.93 5.84 4.63 4.95
- ----------------------------------------------------------------------------------------
Class L Shares
--------------------------------------------------
Cash Portfolio 2003/(1)/ 2002 2001 2000 1999 1998/(3)/
- -----------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------
Net investment income 0.004 0.013 0.037 0.058 0.047 0.050
Dividends from net investment income (0.004) (0.013) (0.037) (0.058) (0.047) (0.050)
- ----------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------
Total Return 0.36%++ 1.29% 3.81% 6.01% 4.78% 5.12%
- ----------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $378 $347 $304 $193 $582 $412
- ----------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses/(2)/ 0.62%+ 0.61% 0.56% 0.54% 0.57% 0.59%
Net investment income 0.74+ 1.28 3.53 5.58 4.70 5.07
- ----------------------------------------------------------------------------------------
Class Y Shares
--------------------------------------------------
Cash Portfolio 2003/(1)/ 2002 2001 2000 1999 1998
- -----------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------
Net investment income 0.004 0.014 0.039 0.060 0.048 0.052
Dividends from net investment income (0.004) (0.014) (0.039) (0.060) (0.048) (0.052)
- ----------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------
Total Return 0.41%++ 1.45% 3.94% 6.17% 4.91% 5.29%
- ----------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $85 $63 $60 $25 $67 $159
- ----------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses/(2)/ 0.51%+ 0.45% 0.40% 0.38% 0.42% 0.42%
Net investment income 0.83+ 1.44 3.96 5.92 4.76 5.17
- ----------------------------------------------------------------------------------------
(1) For the six months ended June 30, 2003 (unaudited).
(2) As a result of a voluntary expense limitation, expense ratios will not
exceed 0.70%.
(3) On June 12, 1998, Class C shares were renamed Class L shares.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
20 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share of each class of capital stock outstanding throughout each year
ended December 31, unless otherwise noted:
Class A Shares
---------------------------------------------------
Government Portfolio 2003/(1)/ 2002 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------
Net investment income/(2)/ 0.003 0.012 0.036 0.057 0.045 0.049
Dividends from net investment income (0.003) (0.012) (0.036) (0.057) (0.045) (0.049)
Distributions from net realized gains (0.000)* -- -- -- -- --
- -----------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------
Total Return/(3)/ 0.34%++ 1.22% 3.67% 5.85% 4.60% 5.00%
- -----------------------------------------------------------------------------------------
Net Assets, End of Period (billions) $3 $3 $4 $6 $5 $5
- -----------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses/(2)(4)/ 0.60%+ 0.61% 0.56% 0.59% 0.61% 0.60%
Net investment income 0.68+ 1.21 3.74 5.71 4.50 4.88
- -----------------------------------------------------------------------------------------
Class L Shares
---------------------------------------------------
Government Portfolio 2003/(1)/ 2002 2001 2000 1999 1998/(5)/
- ------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------
Net investment income/(2)/ 0.003 0.012 0.036 0.057 0.045 0.049
Dividends from net investment income (0.003) (0.012) (0.036) (0.057) (0.045) (0.049)
Distributions from net realized gains (0.000)* -- -- -- -- --
- -----------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------
Total Return/(3)/ 0.33%++ 1.21% 3.68% 5.87% 4.62% 5.01%
- -----------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $41 $131 $123 $121 $113 $206
- -----------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses/(2)(4)/ 0.61%+ 0.61% 0.63% 0.58% 0.59% 0.59%
Net investment income 0.68+ 1.21 3.53 5.70 4.47 4.94
- -----------------------------------------------------------------------------------------
(1) For the six months ended June 30, 2003 (unaudited).
(2) The investment manager has waived a portion of its fees for the six months
ended June 30, 2003. If such fees were not waived, the per share decreases
to net investment income and the actual expense ratios would have been as
follows:
Per Share Decreases to Expense Ratios
Net Investment Income Without Fee Waivers
--------------------- -------------------
2003 2003
---- ----
Class A $0.0003 0.61%+
Class L 0.0016 0.61+
(3) Performance figures may reflect fee waivers and/or expense reimbursements.
Past performance is no guarantee of future results. In the absence of fee
waivers and/or expense reimbursements, the total return would be reduced.
(4) As a result of a voluntary expense limitation, expense ratios will not
exceed 0.70%.
(5) On June 12, 1998, Class C shares were renamed Class L shares.
* Amount represents less than $0.001 per share.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
21 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share of each class of capital stock outstanding throughout each year
ended December 31, unless otherwise noted:
Class Y Shares
--------------------------------------------------
Government Portfolio 2003/(1)/ 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------
Net investment income 0.004 0.013 0.037 0.058 0.047 0.050
Dividends from net investment income (0.004) (0.013) (0.037) (0.058) (0.047) (0.050)
Distributions from net realized gains (0.000)* -- -- -- -- --
- ----------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------
Total Return 0.40%++ 1.35% 3.78% 6.02% 4.78% 5.13%
- ----------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $3 $2 $21 $20 $8 $4
- ----------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses/(2)/ 0.49%+ 0.48% 0.44% 0.44% 0.45% 0.48%
Net investment income 0.84+ 1.38 3.69 5.85 4.64 5.06
- ----------------------------------------------------------------------------------------
Class A Shares
--------------------------------------------------
Retirement Portfolio 2003/(1)/ 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------
Net investment income/(3)/ 0.003 0.011 0.035 0.057 0.046 0.049
Dividends from net investment income (0.003) (0.011) (0.035) (0.057) (0.046) (0.049)
- ----------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------
Total Return/(4)/ 0.30%++ 1.11% 3.60% 5.89% 4.65% 5.04%
- ----------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $761 $821 $990 $1,882 $1,704 $1,682
- ----------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses/(2)(3)/ 0.69%+ 0.70% 0.69% 0.68% 0.69% 0.70%
Net investment income 0.61+ 1.11 3.78 5.74 4.55 4.92
- ----------------------------------------------------------------------------------------
(1) For the six months ended June 30, 2003 (unaudited).
(2) As a result of a voluntary expense limitation, expense ratios will not
exceed 0.70%.
(3) The investment manager has waived a portion of its fees for the six months
ended June 30, 2003 and for the years ended December 31, 1999 and December
31, 1998. If such fees were not waived, the per share decreases to net
investment income and the actual expense ratios would have been as follows:
Per Share Decreases to Expense Ratios
Net Investment Income Without Fee Waivers
---------------------- -------------------
2003 $0.0005 0.69%+
1999 0.0001 0.71
1998 0.0002 0.72
(4) Performance figures may reflect fee waivers and/or expense reimbursements.
Past performance is no guarantee of future results. In the absence of fee
waivers and/or expense reimbursements, the total return would be reduced.
* Amount represents less than $0.001 per share.
++ Total return is not annualized, as it may not be representative of total
return for the year.
+ Annualized.
22 Smith Barney Money Funds, Inc. | 2003 Semi-Annual Report to Shareholders
Smith Barney Money Funds, Inc.
Cash Portfolio
Government Portfolio
Retirement Portfolio
The Funds are separate investment funds of the Smith Barney Money Funds,
Inc., a Maryland corporation.
This report is submitted for general information of the shareholders of Smith
Barney Money Funds, Inc., but it may also be used as sales literature when
preceded or accompanied by the current prospectus which gives details about
changes, expenses, investment objectives and operating policies of the Funds.
If used as sales material after September 30, 2003, this report must be
accompanied by performance information for the most recently completed
calendar quarter.
SMITH BARNEY MONEY FUNDS, INC.
Smith Barney Mutual Funds
125 Broad Street
10th Floor, MF-2
New York, New York 10004
For complete information on any Smith Barney Mutual Funds, including
management fees and expenses, call or write your financial professional for a
free prospectus. Read it carefully before you invest or send money.
(C)2003 Citigroup Global Markets Inc.
Member NASD, SIPC
FD0622 8/03 03-4964
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal
financial officer have concluded that the registrant's
disclosure controls and procedures (as defined in Rule 30a-2(c)
under the Investment Company Act of 1940, as amended) are
effective based on their evaluation of the disclosure controls
and procedures as of a date within 90 days of the filing date of
this document.
(b) In the last 90 days, there have been no significant changes in
the Registrant's internal controls or in other factors that
could significantly affect these controls.
ITEM 10. EXHIBITS.
(a) Not applicable.
(b) Attached hereto.
Exhibit 99.CERT Certifications pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
Exhibit 99.906CERT Certifications pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this Report to be
signed on its behalf by the undersigned, there unto duly authorized.
Smith Barney Money Funds, Inc.
By: /s/ R. Jay Gerken
--------------------------------
R. Jay Gerken
Chief Executive Officer of
Smith Barney Money Funds, Inc.
Date: August 28, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ R. Jay Gerken
--------------------------------
(R. Jay Gerken)
Chief Executive Officer of
Smith Barney Money Funds, Inc.
Date: August 28, 2003
By: /s/ Richard L. Peteka
--------------------------------
Chief Financial Officer of
Smith Barney Money Funds, Inc.
Date: August 28, 2003