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 811-21128
Smith Barney Multiple Discipline Trust
(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)-725-6666
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
MULTIPLE DISCIPLINE TRUST
SEMI-ANNUAL REPORT | JUNE 30, 2003
Multiple Discipline Portfolio -- All Cap Growth and Value
Multiple Discipline Portfolio -- Large Cap Growth and Value
Multiple Discipline Portfolio -- Global All Cap Growth and Value
Multiple Discipline Portfolio -- Balanced All Cap Growth and Value
[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.................................. 19
Statements of Operations.............................................. 20
Statements of Changes in Net Assets................................... 21
Notes to Financial Statements......................................... 23
Financial Highlights.................................................. 26
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.
We know that you have questions about fund managers' decisions and plans, and
we want to be sure that you have easy access to the information you need.
Keeping investors informed is, and always will be, one of my top priorities as
Chairman of your Fund. We have also included a separate Manager Commentary
along with this report, which we hope will give you a better understanding of
your Fund and its management.
We 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 24, 2003
1 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) JUNE 30, 2003
Multiple Discipline Portfolio -- All Cap Growth and Value
SHARES SECURITY VALUE
- ---------------------------------------------------------
COMMON STOCK -- 78.3%
Aerospace and Defense -- 1.8%
8,550 Honeywell International Inc. $ 229,567
5,556 L-3 Communications Holdings, Inc.+ 241,630
2,980 Raytheon Co. 97,863
- --------------------------------------------------------
569,060
- --------------------------------------------------------
Banks -- 2.5%
7,980 The Bank of New York Co., Inc. 229,425
8,150 Bank One Corp. 303,017
5,370 Wells Fargo & Co. 270,648
- --------------------------------------------------------
803,090
- --------------------------------------------------------
Beverages -- 3.2%
9,813 The Coca-Cola Co. 455,421
13,193 PepsiCo, Inc. 587,088
- --------------------------------------------------------
1,042,509
- --------------------------------------------------------
Biotechnology -- 6.5%
2,746 Alkermes, Inc.+ 29,519
7,005 Amgen Inc.+ 465,412
9,680 Chiron Corp.+ 423,210
4,276 Genentech, Inc.+ 308,385
9,910 Genzyme Corp.+ 414,238
8,625 IDEC Pharmaceuticals Corp.+ 293,250
10,860 Millennium Pharmaceuticals, Inc.+ 170,828
- --------------------------------------------------------
2,104,842
- --------------------------------------------------------
Chemicals -- 0.9%
12,270 Engelhard Corp. 303,928
- --------------------------------------------------------
Commercial Services and Supplies -- 0.2%
3,010 Sabre Holdings Corp. 74,196
- --------------------------------------------------------
Communications Equipment -- 2.4%
16,020 3Com Corp.+ 74,974
16,135 Cisco Systems, Inc.+ 269,293
22,840 Motorola, Inc. 215,381
13,710 Nokia Oyj, Sponsored ADR 225,255
- --------------------------------------------------------
784,903
- --------------------------------------------------------
Computers and Peripherals -- 3.3%
11,510 Dell Computer Corp.+* 367,860
2,310 Electronics for Imaging, Inc.+ 46,870
6,660 Hewlett-Packard Co. 141,858
1,695 International Business Machines Corp. 139,837
25,683 Maxtor Corp.+ 192,879
4,520 SanDisk Corp.+ 182,382
- --------------------------------------------------------
1,071,686
- --------------------------------------------------------
Construction Materials -- 0.2%
1,740 Vulcan Materials Co. 64,502
- --------------------------------------------------------
See Notes to Financial Statements.
2 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- All Cap Growth and Value
SHARES SECURITY VALUE
- ------------------------------------------------------------
Diversified Financial Services -- 3.8%
7,175 American Express Co. $ 299,987
4,646 Lehman Brothers Holdings Inc. 308,866
5,894 Merrill Lynch & Co., Inc. 275,132
3,326 Neuberger Berman Inc. 132,741
5,790 State Street Corp. 228,126
- ------------------------------------------------------------
1,244,852
- ------------------------------------------------------------
Diversified Telecommunication Services -- 1.1%
11,020 Nippon Telegraph and Telephone Corp. ADR 218,196
3,580 Verizon Communications Inc. 141,231
- ------------------------------------------------------------
359,427
- ------------------------------------------------------------
Electrical Equipment -- 0.9%
5,915 Emerson Electric Co. 302,256
- ------------------------------------------------------------
Electronic Equipment and Instruments -- 1.7%
7,320 Agilent Technologies, Inc.+ 143,106
106,590 Solectron Corp.+ 398,647
- ------------------------------------------------------------
541,753
- ------------------------------------------------------------
Energy Equipment and Services -- 1.3%
9,286 Grant Prideco, Inc.+ 109,111
7,110 Weatherford International Ltd.+ 297,909
- ------------------------------------------------------------
407,020
- ------------------------------------------------------------
Food and Drug Retailing -- 0.5%
7,150 Safeway Inc.+ 146,289
- ------------------------------------------------------------
Food Products -- 0.8%
4,870 Wm. Wrigley Jr. Co. 273,840
- ------------------------------------------------------------
Healthcare Providers and Services -- 2.6%
8,840 Health Net Inc.+ 291,278
3,960 McKesson Corp. 141,530
8,490 UnitedHealth Group Inc. 426,623
- ------------------------------------------------------------
859,431
- ------------------------------------------------------------
Hotels, Restaurants and Leisure -- 0.6%
8,285 McDonald's Corp. 182,767
- ------------------------------------------------------------
Household Durables -- 0.3%
8,610 Clayton Homes, Inc. 108,056
- ------------------------------------------------------------
Industrial Conglomerates -- 2.0%
12,760 General Electric Co. 365,957
15,851 Tyco International Ltd. 300,852
- ------------------------------------------------------------
666,809
- ------------------------------------------------------------
Insurance -- 8.4%
8,385 The Allstate Corp. 298,925
4,545 Ambac Financial Group, Inc. 301,106
13,665 American International Group, Inc. 754,035
187 Berkshire Hathaway Inc., Class B Shares+ 454,410
4,425 The Chubb Corp. 265,500
4,645 MBIA Inc. 226,444
See Notes to Financial Statements.
3 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- All Cap Growth and Value
SHARES SECURITY VALUE
- ----------------------------------------------------------------------
Insurance -- 8.4% (continued)
6,475 MGIC Investment Corp. $ 301,994
3,965 The St. Paul Cos., Inc. 144,762
- ----------------------------------------------------------------------
2,747,176
- ----------------------------------------------------------------------
Information Technology Consulting and Services -- 0.4%
9,880 Unisys Corp.+ 121,326
- ----------------------------------------------------------------------
Leisure Equipment and Products -- 1.1%
5,530 Eastman Kodak Co. 151,246
12,550 Hasbro, Inc. 219,500
- ----------------------------------------------------------------------
370,746
- ----------------------------------------------------------------------
Machinery -- 1.1%
5,451 Caterpillar Inc. 303,403
935 PACCAR Inc. 63,169
- ----------------------------------------------------------------------
366,572
- ----------------------------------------------------------------------
Media -- 7.6%
30,765 AOL Time Warner Inc.+ 495,009
10,920 Cablevision Systems New York Group, Class A Shares+ 226,699
12,715 Comcast Corp., Class A Shares+ 366,573
3,950 InterActiveCorp+ 156,302
46,199 Liberty Media Corp., Class A Shares+ 534,060
2,535 The News Corp., Ltd., Sponsored ADR 76,734
30,690 The Walt Disney Co. 606,128
- ----------------------------------------------------------------------
2,461,505
- ----------------------------------------------------------------------
Metals and Mining -- 1.1%
8,655 Alcoa Inc. 220,703
4,680 Newmont Mining Corp. 151,913
- ----------------------------------------------------------------------
372,616
- ----------------------------------------------------------------------
Office Electronics -- 0.2%
8,100 IKON Office Solutions, Inc. 72,090
- ----------------------------------------------------------------------
Oil and Gas -- 1.7%
1,190 Amerada Hess Corp. 58,524
3,400 Anadarko Petroleum Corp. 151,198
2,630 ConocoPhillips 144,124
3,860 Exxon Mobil Corp. 138,613
1,230 Murphy Oil Corp. 64,698
- ----------------------------------------------------------------------
557,157
- ----------------------------------------------------------------------
Paper and Forest Products -- 0.9%
5,725 Weyerhaeuser Co. 309,150
- ----------------------------------------------------------------------
Personal Products -- 1.4%
14,475 The Gillette Co. 461,174
- ----------------------------------------------------------------------
Pharmaceuticals -- 8.2%
6,980 Abbott Laboratories 305,445
11,060 Bristol-Myers Squibb Co. 300,279
5,260 Forest Laboratories, Inc.+ 287,985
7,084 Johnson & Johnson 366,243
See Notes to Financial Statements.
4 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- All Cap Growth and Value
SHARES SECURITY VALUE
- ----------------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 8.2% (continued)
5,989 Merck & Co., Inc. $ 362,634
19,756 Pfizer Inc. 674,667
4,745 Schering-Plough Corp. 88,257
6,650 Wyeth 302,908
- ----------------------------------------------------------------------------------------------------------------------
2,688,418
- ----------------------------------------------------------------------------------------------------------------------
Semiconductor Equipment and Products -- 5.9%
829 Cabot Microelectronics Corp.+ 41,840
7,346 Cree, Inc.+ 119,593
39,855 Intel Corp. 828,346
15,472 Micron Technology, Inc.+ 179,939
42,250 Texas Instruments Inc. 743,600
- ----------------------------------------------------------------------------------------------------------------------
1,913,318
- ----------------------------------------------------------------------------------------------------------------------
Software -- 1.4%
11,270 Autodesk, Inc. 182,123
10,650 Microsoft Corp. 272,746
- ----------------------------------------------------------------------------------------------------------------------
454,869
- ----------------------------------------------------------------------------------------------------------------------
Specialty Retail -- 1.8%
39,700 Charming Shoppes, Inc.+ 197,309
11,244 The Home Depot, Inc. 372,401
- ----------------------------------------------------------------------------------------------------------------------
569,710
- ----------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.5%
7,600 Vodafone Group PLC, Sponsored ADR 149,340
- ----------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $23,415,849) 25,526,383
- ----------------------------------------------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
- ----------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 21.7%
$7,082,000 State Street Bank and Trust Co., 1.000% due 7/1/03; Proceeds at maturity -- $7,082,197;
(Fully collateralized by U.S. Treasury Bonds, 8.125% due 8/15/19; Market value -- $7,231,194)
(Cost -- $7,082,000) 7,082,000
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
(Cost -- $30,497,849**) $32,608,383
- ----------------------------------------------------------------------------------------------------------------------
+ Non-income producing security.
* Subsequent to the reporting period, the company changed its name to Dell Inc.
** Aggregate cost for Federal income tax purposes is substantially the same.
Abbreviation used in this schedule:
ADR -- American Depositary Receipt
See Notes to Financial Statements.
5 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- Large Cap Growth and Value
SHARES SECURITY VALUE
- -----------------------------------------------------------------
COMMON STOCK -- 84.7%
Aerospace and Defense -- 1.0%
1,335 Honeywell International Inc. $ 35,845
- -----------------------------------------------------------------
Banks -- 5.5%
1,430 The Bank of New York Co., Inc. 41,113
65 Bank One Corp. 2,417
1,245 FleetBoston Financial Corp. 36,989
820 Wachovia Corp. 32,767
690 Washington Mutual, Inc. 28,497
960 Wells Fargo & Co. 48,384
- -----------------------------------------------------------------
190,167
- -----------------------------------------------------------------
Beverages -- 3.8%
1,760 The Coca-Cola Co. 81,682
1,120 PepsiCo, Inc. 49,840
- -----------------------------------------------------------------
131,522
- -----------------------------------------------------------------
Biotechnology -- 3.9%
1,260 Amgen Inc.+ 83,714
745 Genentech, Inc.+ 53,729
- -----------------------------------------------------------------
137,443
- -----------------------------------------------------------------
Communications Equipment -- 3.3%
2,895 Cisco Systems, Inc.+ 48,318
515 Comverse Technology, Inc.+ 7,740
2,475 Motorola, Inc. 23,339
2,215 Nokia Oyj, Sponsored ADR 36,392
- -----------------------------------------------------------------
115,789
- -----------------------------------------------------------------
Computers and Peripherals -- 3.6%
2,070 Dell Computer Corp.+* 66,157
1,765 Hewlett-Packard Co. 37,595
4,785 Sun Microsystems, Inc.+ 22,011
- -----------------------------------------------------------------
125,763
- -----------------------------------------------------------------
Diversified Financial Services -- 6.8%
575 American Express Co. 24,041
345 The Goldman Sachs Group, Inc. 28,894
845 J.P. Morgan Chase & Co. 28,882
1,845 Merrill Lynch & Co., Inc. 86,124
855 Morgan Stanley 36,551
1,245 Waddell & Reed Financial, Inc., Class A Shares 31,959
- -----------------------------------------------------------------
236,451
- -----------------------------------------------------------------
Diversified Telecommunication Services -- 2.3%
361 AT&T Corp. 6,949
1,445 SBC Communications Inc. 36,920
930 Verizon Communications Inc. 36,688
- -----------------------------------------------------------------
80,557
- -----------------------------------------------------------------
Electric Utilities -- 0.8%
640 Progress Energy, Inc. 28,096
- -----------------------------------------------------------------
See Notes to Financial Statements.
6 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- Large Cap Growth and Value
SHARES SECURITY VALUE
- --------------------------------------------------------------
Electronic Equipment and Instruments -- 1.1%
10,340 Solectron Corp.+ $ 38,672
- --------------------------------------------------------------
Energy Equipment and Services -- 1.1%
1,680 Transocean Inc.+ 36,909
- --------------------------------------------------------------
Food and Drug Retailing -- 1.1%
1,790 Safeway Inc.+ 36,623
- --------------------------------------------------------------
Food Products -- 1.4%
870 Wm. Wrigley Jr. Co. 48,920
- --------------------------------------------------------------
Gas Utilities -- 0.5%
980 NiSource Inc. 18,620
- --------------------------------------------------------------
Healthcare Providers and Services -- 0.7%
770 HCA Inc. 24,671
- --------------------------------------------------------------
Hotels, Restaurants and Leisure -- 1.9%
1,770 McDonald's Corp. 39,046
800 MGM MIRAGE+ 27,344
- --------------------------------------------------------------
66,390
- --------------------------------------------------------------
Household Products -- 1.2%
785 Kimberly-Clark Corp. 40,930
- --------------------------------------------------------------
Industrial Conglomerates -- 1.9%
2,290 General Electric Co. 65,677
- --------------------------------------------------------------
Insurance -- 7.2%
2,210 American International Group, Inc. 121,948
34 Berkshire Hathaway Inc., Class B Shares+ 82,620
445 The Hartford Financial Services Group, Inc. 22,410
640 The St. Paul Cos., Inc. 23,366
- --------------------------------------------------------------
250,344
- --------------------------------------------------------------
Media -- 6.0%
4,140 AOL Time Warner Inc.+ 66,613
940 Comcast Corp., Class A Shares+ 28,369
400 InterActiveCorp+ 15,828
2,840 Liberty Media Corp., Class A Shares+ 32,830
3,390 The Walt Disney Co. 66,953
- --------------------------------------------------------------
210,593
- --------------------------------------------------------------
Metals and Mining -- 0.8%
1,160 Alcoa Inc. 29,580
- --------------------------------------------------------------
Multiline Retail -- 1.8%
655 Federated Department Stores, Inc. 24,137
995 Target Corp. 37,651
- --------------------------------------------------------------
61,788
- --------------------------------------------------------------
Oil and Gas -- 2.7%
675 ChevronTexaco Corp. 48,735
115 Exxon Mobil Corp. 4,130
535 Total Fina Elf S.A., Sponsored ADR 40,553
- --------------------------------------------------------------
93,418
- --------------------------------------------------------------
See Notes to Financial Statements.
7 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULES OF INVESTMENTS UNAUDITED (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- Large Cap Growth and Value
SHARES SECURITY VALUE
- -----------------------------------------------------------------------------------------------------------------
Paper and Forest Products -- 1.2%
1,135 International Paper Co. $ 40,554
- -----------------------------------------------------------------------------------------------------------------
Personal Products -- 2.4%
2,595 The Gillette Co. 82,677
- -----------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 9.1%
1,270 Johnson & Johnson 65,659
1,075 Merck & Co., Inc. 65,091
3,508 Pfizer Inc. 119,798
1,930 Schering-Plough Corp. 35,898
630 Wyeth 28,697
- -----------------------------------------------------------------------------------------------------------------
315,143
- -----------------------------------------------------------------------------------------------------------------
Semiconductor Equipment and Products -- 5.3%
4,775 Intel Corp. 99,244
335 National Semiconductor Corp.+ 6,606
4,550 Texas Instruments Inc. 80,080
- -----------------------------------------------------------------------------------------------------------------
185,930
- -----------------------------------------------------------------------------------------------------------------
Software -- 1.4%
1,910 Microsoft Corp. 48,915
- -----------------------------------------------------------------------------------------------------------------
Specialty Retail -- 2.7%
2,820 The Home Depot, Inc. 93,398
- -----------------------------------------------------------------------------------------------------------------
Tobacco -- 1.4%
1,090 Altria Group, Inc. 49,530
- -----------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.8%
3,455 AT&T Wireless Services Inc.+ 28,366
- -----------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $2,719,915) 2,949,281
- -----------------------------------------------------------------------------------------------------------------
PREFERRED STOCK -- 0.8%
Media -- 0.8%
1,120 The News Corp., Ltd., Sponsored ADR (Cost -- $25,875) 28,056
- -----------------------------------------------------------------------------------------------------------------
SUB-TOTAL INVESTMENTS
(Cost -- $2,745,790) 2,977,337
- -----------------------------------------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
- -----------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 14.5%
$504,000 State Street Bank and Trust Co., 1.000% due 7/1/03; Proceeds at maturity -- $504,014;
(Fully collateralized by U.S. Treasury Bonds, 8.125% due 8/15/21; Market value -- $520,187)
(Cost -- $504,000) 504,000
- -----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
(Cost -- $3,249,790**) $3,481,337
- -----------------------------------------------------------------------------------------------------------------
+ Non-income producing security.
* Subsequent to the reporting period, the company changed its name to Dell Inc.
** Aggregate cost for Federal income tax purposes is substantially the same.
Abbreviation used in this schedule:
ADR -- American Depositary Receipt
See Notes to Financial Statements.
8 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- Global All Cap Growth and Value
SHARES SECURITY VALUE
- ----------------------------------------------------------------
COMMON STOCK -- 83.0%
Aerospace and Defense -- 1.4%
865 Honeywell International Inc. $ 23,225
560 L-3 Communications Holdings, Inc.+ 24,354
- ----------------------------------------------------------------
47,579
- ----------------------------------------------------------------
Banks -- 4.7%
380 Bank of Ireland, Sponsored ADR 18,430
805 The Bank of New York Co., Inc. 23,144
210 Bank One Corp. 7,808
705 FleetBoston Financial Corp. 20,946
210 HSBC Holdings PLC, Sponsored ADR 12,413
530 Lloyds TSB Group PLC, Sponsored ADR 15,375
465 Wachovia Corp. 18,581
385 Washington Mutual, Inc. 15,900
540 Wells Fargo & Co. 27,216
- ----------------------------------------------------------------
159,813
- ----------------------------------------------------------------
Beverages -- 2.7%
990 The Coca-Cola Co. 45,946
420 Diageo PLC, Sponsored ADR 18,379
635 PepsiCo, Inc. 28,258
- ----------------------------------------------------------------
92,583
- ----------------------------------------------------------------
Biotechnology -- 6.7%
730 Alkermes, Inc.+ 7,848
710 Amgen Inc.+ 47,172
980 Chiron Corp.+ 42,846
515 Genentech, Inc.+ 37,142
1,005 Genzyme Corp.+ 42,009
875 IDEC Pharmaceuticals Corp.+ 29,750
1,180 Millennium Pharmaceuticals, Inc.+ 18,561
- ----------------------------------------------------------------
225,328
- ----------------------------------------------------------------
Chemicals -- 0.8%
280 BASF AG, Sponsored ADR 11,934
600 BOC Group PLC, Sponsored ADR 15,744
- ----------------------------------------------------------------
27,678
- ----------------------------------------------------------------
Communications Equipment -- 2.6%
1,640 Cisco Systems, Inc.+ 27,372
630 Comverse Technology, Inc.+ 9,469
1,415 Motorola, Inc. 13,343
2,365 Nokia Oyj, Sponsored ADR 38,857
- ----------------------------------------------------------------
89,041
- ----------------------------------------------------------------
Computers and Peripherals -- 2.9%
1,170 Dell Computer Corp.+* 37,393
995 Hewlett-Packard Co. 21,194
1,720 Maxtor Corp.+ 12,917
300 SanDisk Corp.+ 12,105
3,475 Sun Microsystems, Inc.+ 15,985
- ----------------------------------------------------------------
99,594
- ----------------------------------------------------------------
See Notes to Financial Statements.
9 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- Global All Cap Growth and Value
SHARES SECURITY VALUE
- ----------------------------------------------------------------
Construction Materials -- 0.4%
820 CRH PLC, Sponsored ADR $ 12,936
- ----------------------------------------------------------------
Diversified Financial Services -- 6.4%
470 American Express Co. 19,651
220 The Goldman Sachs Group, Inc. 18,425
710 ING Groep N.V., Sponsored ADR 12,446
475 J.P. Morgan Chase & Co. 16,236
470 Lehman Brothers Holdings Inc. 31,246
1,050 Merrill Lynch & Co., Inc. 49,014
485 Morgan Stanley 20,734
320 Neuberger Berman Inc. 12,771
1,440 Nomura Holdings, Inc. ADR 18,360
720 Waddell & Reed Financial, Inc., Class A Shares 18,482
- ----------------------------------------------------------------
217,365
- ----------------------------------------------------------------
Diversified Telecommunication Services -- 2.2%
401 AT&T Corp. 7,719
605 Nippon Telegraph and Telephone Corp. ADR 11,979
820 SBC Communications Inc. 20,951
356 Telefonica, S.A., Sponsored ADR 12,307
530 Verizon Communications Inc. 20,909
- ----------------------------------------------------------------
73,865
- ----------------------------------------------------------------
Electric Utilities -- 0.9%
750 Endesa, S.A., Sponsored ADR 12,225
420 Progress Energy, Inc. 18,438
- ----------------------------------------------------------------
30,663
- ----------------------------------------------------------------
Electronic Equipment and Instruments -- 1.2%
505 Mettler-Toledo International Inc.+ 18,508
6,120 Solectron Corp.+ 22,889
- ----------------------------------------------------------------
41,397
- ----------------------------------------------------------------
Energy Equipment and Services -- 1.9%
1,025 Grant Prideco, Inc.+ 12,044
950 Transocean Inc.+ 20,871
725 Weatherford International, Ltd.+ 30,377
- ----------------------------------------------------------------
63,292
- ----------------------------------------------------------------
Food and Drug Retailing -- 1.3%
1,010 Safeway Inc.+ 20,665
480 Seven-Eleven Japan Co., Ltd., Unsponsored ADR 11,953
1,100 Tesco PLC, Sponsored ADR 11,939
- ----------------------------------------------------------------
44,557
- ----------------------------------------------------------------
Food Products -- 1.9%
670 Groupe Danone, Sponsored ADR 18,592
360 Nestle S.A., Sponsored ADR 18,571
490 Wm. Wrigley Jr. Co. 27,553
- ----------------------------------------------------------------
64,716
- ----------------------------------------------------------------
See Notes to Financial Statements.
10 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- Global All Cap Growth and Value
SHARES SECURITY VALUE
- ---------------------------------------------------------------------
Gas Utilities -- 0.7%
9,320 Hong Kong & China Gas Co. Ltd., Sponsored ADR $ 11,772
650 NiSource Inc. 12,350
- ---------------------------------------------------------------------
24,122
- ---------------------------------------------------------------------
Healthcare Providers and Services -- 1.7%
430 HCA Inc. 13,777
860 UnitedHealth Group Inc. 43,215
- ---------------------------------------------------------------------
56,992
- ---------------------------------------------------------------------
Hotels, Restaurants and Leisure -- 1.1%
1,030 McDonald's Corp. 22,722
450 MGM MIRAGE+ 15,381
- ---------------------------------------------------------------------
38,103
- ---------------------------------------------------------------------
Household Durables -- 0.4%
640 Koninklijke (Royal) Philips Electronics N.V. 12,230
- ---------------------------------------------------------------------
Household Products -- 0.7%
445 Kimberly-Clark Corp. 23,202
- ---------------------------------------------------------------------
Industrial Conglomerates -- 2.4%
1,295 General Electric Co. 37,141
410 Hutchison Whampoa Ltd., Unsponsored ADR 12,487
1,610 Tyco International Ltd. 30,558
- ---------------------------------------------------------------------
80,186
- ---------------------------------------------------------------------
Insurance -- 4.6%
1,250 American International Group, Inc. 68,975
795 Axa, Sponsored ADR 12,410
19 Berkshire Hathaway Inc., Class B Shares+ 46,170
260 The Hartford Financial Services Group, Inc. 13,094
380 The St. Paul Cos., Inc. 13,874
- ---------------------------------------------------------------------
154,523
- ---------------------------------------------------------------------
Leisure Equipment and Products -- 0.5%
650 Fuji Photo Film Co., Ltd., Unsponsored ADR 18,727
- ---------------------------------------------------------------------
Media -- 7.4%
2,345 AOL Time Warner Inc.+ 37,731
1,170 Cablevision Systems New York Group, Class A Shares+ 24,289
Comcast Corp.:
532 Class A Shares+ 16,056
1,055 Special Class A Shares+ 30,416
360 Grupo Televisa S.A., Sponsored ADR 12,420
230 InterActiveCorp+ 9,101
4,285 Liberty Media Corp., Class A Shares+ 49,535
620 The News Corp., Ltd., Sponsored ADR 18,767
1,915 The Walt Disney Co. 37,821
320 WPP Group PLC, Sponsored ADR 12,822
- ---------------------------------------------------------------------
248,958
- ---------------------------------------------------------------------
Metals and Mining -- 0.5%
675 Alcoa Inc. 17,213
- ---------------------------------------------------------------------
See Notes to Financial Statements.
11 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- Global All Cap Growth and Value
SHARES SECURITY VALUE
- ----------------------------------------------------------------
Multiline Retail -- 1.4%
380 Federated Department Stores, Inc. $ 14,003
560 Target Corp. 21,190
390 Wal-Mart de Mexico S.A. de C.V. ADR 11,527
- ----------------------------------------------------------------
46,720
- ----------------------------------------------------------------
Office Electronics -- 0.4%
270 Canon Inc., Sponsored ADR 12,326
- ----------------------------------------------------------------
Oil and Gas -- 3.0%
440 BP PLC, Sponsored ADR 18,489
385 ChevronTexaco Corp. 27,797
400 Royal Dutch Petroleum Co. 18,648
465 Total Fina Elf S.A., Sponsored ADR 35,247
- ----------------------------------------------------------------
100,181
- ----------------------------------------------------------------
Paper and Forest Products -- 0.7%
640 International Paper Co. 22,867
- ----------------------------------------------------------------
Personal Products -- 1.4%
1,465 The Gillette Co. 46,675
- ----------------------------------------------------------------
Pharmaceuticals -- 7.5%
230 Aventis S.A., Sponsored ADR 12,581
560 Forest Laboratories, Inc.+ 30,660
460 GlaxoSmithKline PLC ADR 18,648
720 Johnson & Johnson 37,224
605 Merck & Co., Inc. 36,633
310 Novartis AG ADR 12,341
1,982 Pfizer Inc. 67,685
1,090 Schering-Plough Corp. 20,274
350 Wyeth 15,943
- ----------------------------------------------------------------
251,989
- ----------------------------------------------------------------
Semiconductor Equipment and Products -- 4.3%
150 Cabot Microelectronics Corp.+ 7,570
740 Cree, Inc.+ 12,047
2,700 Intel Corp. 56,117
1,570 Micron Technology, Inc.+ 18,259
375 National Semiconductor Corp.+ 7,395
2,570 Texas Instruments Inc. 45,232
- ----------------------------------------------------------------
146,620
- ----------------------------------------------------------------
Software -- 1.9%
1,140 Autodesk, Inc. 18,422
1,080 Microsoft Corp. 27,659
630 SAP AG, Sponsored ADR 18,409
- ----------------------------------------------------------------
64,490
- ----------------------------------------------------------------
Specialty Retail -- 2.2%
4,020 Charming Shoppes, Inc.+ 19,979
1,635 The Home Depot, Inc. 54,151
- ----------------------------------------------------------------
74,130
- ----------------------------------------------------------------
See Notes to Financial Statements.
12 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- Global All Cap Growth and Value
SHARES SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------------
Tobacco -- 0.8%
600 Altria Group, Inc. $ 27,264
- ------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.4%
1,970 AT&T Wireless Services Inc.+ 16,174
640 SK Telecom Co., Ltd. ADR 12,070
925 Vodafone Group PLC, Sponsored ADR 18,176
- ------------------------------------------------------------------------------------------------------------------------
46,420
- ------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $2,520,674) 2,804,345
- ------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCK -- 0.5%
Media -- 0.5%
600 The News Corp., Ltd., Sponsored ADR (Cost -- $12,997) 15,030
- ------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL INVESTMENTS
(Cost -- $2,533,671) 2,819,375
- ------------------------------------------------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 16.5%
$558,000 State Street Bank and Trust Co., 1.000% due 7/1/03; Proceeds at maturity -- $558,016;
(Fully collateralized by U.S. Treasury Notes and Bonds, 6.250% to 10.375% due 11/15/09 to 8/15/23;
Market value -- $579,538) (Cost -- $558,000) 558,000
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
(Cost -- $3,091,671**) $3,377,375
- ------------------------------------------------------------------------------------------------------------------------
+ Non-income producing security.
* Subsequent to the reporting period, the company changed its name to Dell Inc.
** Aggregate cost for Federal income tax purposes is substantially the same.
Abbreviation used in this schedule:
ADR -- American Depositary Receipt
See Notes to Financial Statements.
13 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- Balanced All Cap Growth and Value
SHARES SECURITY VALUE
- ------------------------------------------------------------------
COMMON STOCK -- 56.8%
Aerospace and Defense -- 1.3%
4,620 Honeywell International Inc. $ 124,047
3,000 L-3 Communications Holdings, Inc.+ 130,470
1,835 Raytheon Co. 60,261
- ------------------------------------------------------------------
314,778
- ------------------------------------------------------------------
Banks -- 1.8%
4,315 The Bank of New York Co., Inc. 124,056
4,440 Bank One Corp. 165,079
2,895 Wells Fargo & Co. 145,908
- ------------------------------------------------------------------
435,043
- ------------------------------------------------------------------
Beverages -- 2.3%
5,305 The Coca-Cola Co. 246,206
7,125 PepsiCo, Inc. 317,062
- ------------------------------------------------------------------
563,268
- ------------------------------------------------------------------
Biotechnology -- 4.8%
1,690 Alkermes, Inc.+ 18,168
3,780 Amgen Inc.+ 251,143
5,225 Chiron Corp.+ 228,437
2,695 Genentech, Inc.+ 194,363
5,355 Genzyme Corp.+ 223,839
4,655 IDEC Pharmaceuticals Corp.+ 158,270
5,940 Millennium Pharmaceuticals, Inc.+ 93,436
- ------------------------------------------------------------------
1,167,656
- ------------------------------------------------------------------
Chemicals -- 0.7%
6,630 Engelhard Corp. 164,225
- ------------------------------------------------------------------
Commercial Services and Supplies -- 0.1%
1,520 Sabre Holdings Corp. 37,468
- ------------------------------------------------------------------
Communications Equipment -- 1.7%
7,110 3Com Corp.+ 33,275
8,720 Cisco Systems, Inc.+ 145,537
12,735 Motorola, Inc. 120,091
7,410 Nokia Oyj, Sponsored ADR 121,746
- ------------------------------------------------------------------
420,649
- ------------------------------------------------------------------
Computers and Peripherals -- 2.4%
6,220 Dell Computer Corp.+* 198,791
1,450 Electronics for Imaging, Inc.+ 29,421
3,630 Hewlett-Packard Co. 77,319
990 International Business Machines Corp. 81,675
13,795 Maxtor Corp.+ 103,600
2,630 SanDisk Corp. 106,121
- ------------------------------------------------------------------
596,927
- ------------------------------------------------------------------
Construction Materials -- 0.2%
1,140 Vulcan Materials Co. 42,260
- ------------------------------------------------------------------
See Notes to Financial Statements.
14 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- Balanced All Cap Growth and Value
SHARES SECURITY VALUE
- ------------------------------------------------------------------
Diversified Financial Services -- 2.7%
3,875 American Express Co. $ 162,014
2,515 Lehman Brothers Holdings Inc. 167,197
3,180 Merrill Lynch & Co., Inc. 148,442
1,730 Neuberger Berman Inc. 69,044
3,130 State Street Corp. 123,322
- ------------------------------------------------------------------
670,019
- ------------------------------------------------------------------
Diversified Telecommunication Services -- 0.8%
6,080 Nippon Telegraph and Telephone Corp. ADR 120,384
1,910 Verizon Communications Inc. 75,349
- ------------------------------------------------------------------
195,733
- ------------------------------------------------------------------
Electrical Equipment -- 0.7%
3,195 Emerson Electric Co. 163,265
- ------------------------------------------------------------------
Electronic Equipment and Services -- 1.1%
3,795 Agilent Technologies, Inc.+ 74,192
50,540 Solectron Corp.+ 189,020
- ------------------------------------------------------------------
263,212
- ------------------------------------------------------------------
Energy Equipment and Services -- 0.9%
5,085 Grant Prideco, Inc.+ 59,749
3,680 Weatherford International Ltd.+ 154,192
- ------------------------------------------------------------------
213,941
- ------------------------------------------------------------------
Food and Drug Retailing -- 0.3%
3,810 Safeway Inc.+ 77,953
- ------------------------------------------------------------------
Food Products -- 0.6%
2,630 Wm. Wrigley Jr. Co. 147,885
- ------------------------------------------------------------------
Healthcare Providers and Services -- 1.9%
4,950 Health Net Inc.+ 163,103
2,230 McKesson Corp. 79,700
4,580 UnitedHealth Group Inc. 230,145
- ------------------------------------------------------------------
472,948
- ------------------------------------------------------------------
Hotels, Restaurants and Leisure -- 0.8%
5,825 McDonald's Corp. 192,924
- ------------------------------------------------------------------
Household Durables -- 0.3%
5,505 Clayton Homes, Inc. 69,088
- ------------------------------------------------------------------
Industrial Conglomerates -- 1.5%
6,900 General Electric Co. 197,892
8,570 Tyco International Ltd. 162,659
- ------------------------------------------------------------------
360,551
- ------------------------------------------------------------------
Insurance -- 6.1%
4,530 The Allstate Corp. 161,495
2,355 Ambac Financial Group, Inc. 156,019
7,380 American International Group, Inc. 407,228
101 Berkshire Hathaway Inc., Class B Shares+ 245,430
2,390 The Chubb Corp. 143,400
2,515 MBIA Inc. 122,606
See Notes to Financial Statements.
15 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULES OF INVESSTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- Balanced All Cap Growth and Value
SHARES SECURITY VALUE
- ----------------------------------------------------------------------
Insurance -- 6.1% (continued)
3,495 MGIC Investment Corp. $ 163,007
2,500 The St. Paul Cos., Inc. 91,275
- ----------------------------------------------------------------------
1,490,460
- ----------------------------------------------------------------------
Information Technology Consulting and Services -- 0.2%
4,650 Unisys Corp.+ 57,102
- ----------------------------------------------------------------------
Leisure Equipment and Products -- 0.8%
2,770 Eastman Kodak Co. 75,759
7,050 Hasbro Inc. 123,304
- ----------------------------------------------------------------------
199,063
- ----------------------------------------------------------------------
Machinery -- 0.8%
2,945 Caterpillar Inc. 163,919
530 PACCAR Inc. 35,807
- ----------------------------------------------------------------------
199,726
- ----------------------------------------------------------------------
Media -- 5.5%
17,445 AOL Time Warner, Inc.+ 280,690
6,235 Cablevision Systems New York Group, Class A Shares+ 129,439
7,040 Comcast Corp., Class A Shares+ 202,963
2,420 InteractiveCorp+ 95,759
24,965 Liberty Media Corp., Class A Shares+ 288,595
1,120 The News Corp., Ltd., Sponsored ADR 33,902
16,580 The Walt Disney Co. 327,455
- ----------------------------------------------------------------------
1,358,803
- ----------------------------------------------------------------------
Metals and Mining -- 0.9%
5,355 Alcoa, Inc. 136,553
2,300 Newmont Mining Corp. 74,658
- ----------------------------------------------------------------------
211,211
- ----------------------------------------------------------------------
Office Electronics -- 0.1%
4,180 IKON Office Solutions, Inc. 37,202
- ----------------------------------------------------------------------
Oil and Gas -- 1.4%
830 Amerada Hess Corp. 40,819
1,840 Anadarko Petroleum Corp. 81,825
1,370 ConocoPhillips 75,076
2,845 Exxon Mobil Corp. 102,164
710 Murphy Oil Corp. 37,346
- ----------------------------------------------------------------------
337,230
- ----------------------------------------------------------------------
Paper and Forest Products -- 0.7%
2,990 Weyerhaeuser Co. 161,460
- ----------------------------------------------------------------------
Personal Products -- 1.0%
7,820 The Gillette Co. 249,145
- ----------------------------------------------------------------------
Pharmaceuticals -- 6.1%
3,770 Abbot Laboratories 164,975
5,970 Bristol-Myers Squibb Co. 162,085
2,960 Forest Laboratories, Inc.+ 162,060
3,825 Johnson & Johnson 197,752
3,235 Merck & Co., Inc. 195,879
See Notes to Financial Statements.
16 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- Balanced All Cap Growth and Value
SHARES SECURITY VALUE
- ---------------------------------------------------------------------------------------------------
Pharmaceuticals -- 6.1% (continued)
11,151 Pfizer Inc. $ 380,807
3,070 Schering-Plough Corp. 57,102
3,595 Wyeth 163,752
- ---------------------------------------------------------------------------------------------------
1,484,412
- ---------------------------------------------------------------------------------------------------
Semiconductor Equipment and Products -- 4.3%
505 Cabot Microelectronics Corp.+ 25,487
3,965 Cree, Inc.+ 64,550
22,370 Intel Corp. 464,938
8,360 Micron Technology, Inc. 97,227
22,830 Texas Instruments Inc. 401,808
- ---------------------------------------------------------------------------------------------------
1,054,010
- ---------------------------------------------------------------------------------------------------
Software -- 0.9%
5,610 Autodesk, Inc. 90,658
5,480 Microsoft Corp. 140,343
- ---------------------------------------------------------------------------------------------------
231,001
- ---------------------------------------------------------------------------------------------------
Specialty Retail -- 0.8%
21,450 Charming Shoppes, Inc.+ 106,607
4,440 The Home Depot, Inc. 97,946
- ---------------------------------------------------------------------------------------------------
204,553
- ---------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.3%
4,110 Vodafone Group PLC, Sponsored ADR 80,762
- ---------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost -- $12,595,982) 13,925,933
- ---------------------------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
- ---------------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 12.2%
U.S. Treasury Notes:
$ 635,000 1.875% due 9/30/04 641,450
600,000 1.250% due 5/31/05 599,836
500,000 6.500% due 10/15/06 574,609
1,115,000 3.250% due 8/15/07 1,164,000
- ---------------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost -- $2,961,301) 2,979,895
- ---------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES -- 2.8%
605,000 Federal National Mortgage Association, 5.500% due 3/15/11 (Cost -- $674,682) 687,488
- ---------------------------------------------------------------------------------------------------
SUB-TOTAL INVESTMENTS
(Cost -- $16,231,965) 17,593,316
- ---------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 28.2%
U.S. TREASURY NOTE -- 4.7%
1,130,000 U.S. Treasury Note, 3.625% due 3/31/04 (Cost -- $1,157,096) 1,152,645
- ---------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
17 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 2003
Multiple Discipline Portfolio -- Balanced All Cap Growth and Value
FACE
AMOUNT SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 23.5%
$5,757,000 State Street Bank and Trust Co., 1.000% due 7/1/03; Proceeds at maturity -- $5,757,160;
(Fully collateralized by U.S. Treasury Bonds, 6.250% to 8.125% due 8/15/19 to 5/15/30;
Market value -- $5,880,187) (Cost -- $5,757,000) $ 5,757,000
- ---------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(Cost -- $6,914,096) 6,909,645
- ---------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
(Cost -- $23,146,061**) $24,502,961
- ---------------------------------------------------------------------------------------------------------------
+ Non-income producing security.
* Subsequent to the reporting period, the company changed its name to Dell Inc.
** Aggregate cost for Federal income tax purposes is substantially the same.
Abbreviation used in this schedule:
ADR -- American Depositary Receipt
See Notes to Financial Statements.
18 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) JUNE 30, 2003
All Cap Large Cap Global All Cap Balanced All Cap
Growth and Value Growth and Value Growth and Value Growth and Value
- ---------------------------------------------------------------------------------------------------------------
ASSETS:
Investments, at cost $23,415,849 $2,745,790 $2,533,671 $16,231,965
Short-term investments, at cost 7,082,000 504,000 558,000 6,914,096
- ---------------------------------------------------------------------------------------------------------------
Investments, at value $25,526,383 $2,977,337 $2,819,375 $17,593,316
Short-term investments, at value 7,082,000 504,000 558,000 6,909,645
Cash 472 698 2,303 2,418
Receivable for Fund shares sold 538,210 145,422 -- 209,461
Dividends and interest receivable 18,021 2,922 3,576 54,697
Receivable for securities sold -- 7,858 8,980 --
Receivable from manager -- 469 1,076 --
- ---------------------------------------------------------------------------------------------------------------
Total Assets 33,165,086 3,638,706 3,393,310 24,769,537
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 1,939,296 177,105 195,086 868,896
Management fees payable 20,151 -- -- 15,876
Payable for Fund shares purchased -- -- -- 19,460
Accrued expenses 30,383 29,580 24,069 27,526
- ---------------------------------------------------------------------------------------------------------------
Total Liabilities 1,989,830 206,685 219,155 931,758
- ---------------------------------------------------------------------------------------------------------------
Total Net Assets $31,175,256 $3,432,021 $3,174,155 $23,837,779
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS:
Par value of shares of beneficial interest $ 2,573 $ 283 $ 258 $ 2,075
Capital paid in excess of par value 29,047,166 3,193,339 2,878,738 22,426,069
Undistributed net investment income 12,251 4,019 5,465 47,383
Accumulated net realized gain from
investment transactions 2,732 2,833 3,990 5,352
Net unrealized appreciation of investments 2,110,534 231,547 285,704 1,356,900
- ---------------------------------------------------------------------------------------------------------------
Total Net Assets $31,175,256 $3,432,021 $3,174,155 $23,837,779
- ---------------------------------------------------------------------------------------------------------------
Shares Outstanding 2,572,839 283,086 258,370 2,074,785
- ---------------------------------------------------------------------------------------------------------------
Net Asset Value $12.12 $12.12 $12.29 $11.49
- ---------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
19 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2003
All Cap Large Cap Global All Cap Balanced All Cap
Growth and Value Growth and Value Growth and Value Growth and Value
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 56,850 $ 9,071 $ 13,094 $ 34,856
Interest 18,762 1,212 1,100 64,020
Less: Foreign withholding tax (340) (66) (589) (236)
- --------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 75,272 10,217 13,605 98,640
- --------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees (Note 2) 48,585 4,963 6,513 41,576
Custody 16,427 9,927 10,427 15,927
Distribution plan fees 16,195 1,654 2,171 13,858
Shareholder communications 11,397 2,397 2,397 9,897
Trustees' fees 9,959 2,459 2,759 8,959
Audit and legal 9,388 9,138 9,388 9,139
Shareholder servicing fees 2,480 2,480 2,480 2,480
Registration fees 148 49 49 148
Other 740 740 740 740
- --------------------------------------------------------------------------------------------------------------------------------
Total Expenses 115,319 33,807 36,924 102,724
Less: Management and distribution plan fee waivers and
expense reimbursement (Note 2) (50,538) (27,190) (28,240) (47,289)
- --------------------------------------------------------------------------------------------------------------------------------
Net Expenses 64,781 6,617 8,684 55,435
- --------------------------------------------------------------------------------------------------------------------------------
Net Investment Income 10,491 3,600 4,921 43,205
- --------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 3):
Realized Gain (Loss) From Investment Transactions
(excluding short-term investments):
Proceeds from sales 64,319 15,618 57,786 2,003,253
Cost of securities sold 64,827 13,167 54,693 1,998,803
- --------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) (508) 2,451 3,093 4,450
- --------------------------------------------------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation (Depreciation) of
Investments:
Beginning of period (35,813) (3,566) 335 (40,915)
End of period 2,110,534 231,547 285,704 1,356,900
- --------------------------------------------------------------------------------------------------------------------------------
Increase in Net Unrealized Appreciation 2,146,347 235,113 285,369 1,397,815
- --------------------------------------------------------------------------------------------------------------------------------
Net Gain on Investments 2,145,839 237,564 288,462 1,402,265
- --------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets From Operations $2,156,330 $241,164 $293,383 $1,445,470
- --------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
20 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE
30, 2003
All Cap Large Cap Global All Cap Balanced All Cap
Growth and Value Growth and Value Growth and Value Growth and Value
- ----------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 10,491 $ 3,600 $ 4,921 $ 43,205
Net realized gain (loss) (508) 2,451 3,093 4,450
Increase in net unrealized appreciation 2,146,347 235,113 285,369 1,397,815
- ----------------------------------------------------------------------------------------------------------------------
Increase in Net Assets From Operations 2,156,330 241,164 293,383 1,445,470
- ----------------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 25,853,228 2,830,275 2,127,329 19,411,242
Cost of shares reacquired (164,746) (75,247) (249,594) (253,412)
- ----------------------------------------------------------------------------------------------------------------------
Increase in Net Assets From Fund Share
Transactions 25,688,482 2,755,028 1,877,735 19,157,830
- ----------------------------------------------------------------------------------------------------------------------
Increase in Net Assets 27,844,812 2,996,192 2,171,118 20,603,300
NET ASSETS:
Beginning of period 3,330,444 435,829 1,003,037 3,234,479
- ----------------------------------------------------------------------------------------------------------------------
End of period* $31,175,256 $3,432,021 $3,174,155 $23,837,779
- ----------------------------------------------------------------------------------------------------------------------
* Includes undistributed net investment income of: $12,251 $4,019 $5,465 $47,383
- ----------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
21 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE PERIOD ENDED DECEMBER
31, 2002 (A)
All Cap Large Cap Global All Cap Balanced All Cap
Growth and Value Growth and Value Growth and Value Growth and Value
- --------------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 1,760 $ 419 $ 544 $ 4,178
Net realized gain 3,240 382 897 902
Increase in net unrealized appreciation (depreciation) (35,813) (3,566) 335 (40,915)
- -------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations (30,813) (2,765) 1,776 (35,835)
- -------------------------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares 3,382,276 442,809 1,206,376 3,272,612
Cost of shares reacquired (21,019) (4,215) (205,115) (2,298)
- -------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets From Fund Share Transactions 3,361,257 438,594 1,001,261 3,270,314
- -------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets 3,330,444 435,829 1,003,037 3,234,479
NET ASSETS:
Beginning of period -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
End of period* $3,330,444 $435,829 $1,003,037 $3,234,479
- -------------------------------------------------------------------------------------------------------------------------------
* Includes undistributed net investment income of: $1,760 $419 $544 $4,178
- -------------------------------------------------------------------------------------------------------------------------------
(a) For the period October 1, 2002 (commencement of operations) to December 31,
2002.
See Notes to Financial Statements.
22 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Significant Accounting Policies
The Multiple Discipline Portfolio -- All Cap Growth and Value ("All Cap Growth
and Value"), Multiple Discipline Portfolio -- Large Cap Growth and Value
("Large Cap Growth and Value"), Multiple Discipline Portfolio -- Global All Cap
Growth and Value ("Global All Cap Growth and Value") and Multiple Discipline
Portfolio -- Balanced All Cap Growth and Value ("Balanced All Cap Growth and
Value") ("Funds") are separate investment funds of the Smith Barney Multiple
Discipline Trust ("Trust"). The Trust, a Massachusetts business trust, is
registered under the Investment Company Act of 1940, as amended ("1940 Act"),
as a diversified open-end management investment company. The Trust is offered
exclusively for use with certain variable annuity and variable life insurance
contracts offered through the separate accounts of various life insurance
companies and qualified pension and retirement plans.
The significant accounting policies consistently followed by the Funds are: (a)
security transactions are accounted for on trade date; (b) securities traded on
national securities markets are valued at the closing prices on such markets
or, if there were no sales during the day, at the current quoted bid price;
securities primarily traded on foreign exchanges are generally valued at the
preceding closing values of such securities on their respective exchanges,
except that when a significant occurrence, subsequent to the time a value was
so established, is likely to have significantly changed the value then, the
fair value of those securities will be determined by consideration of other
factors by or under the direction of the Board of Trustees or its delegates;
over-the-counter securities are valued on the basis of the bid price at the
close of business on each day; U.S. government and agency obligations are
valued at the average between bid and asked prices in the over-the-counter
market; securities listed on the NASDAQ National Market System for which market
quotations are available are valued at the official closing price or, if there
is no official closing price on that day, at the last sale price; (c)
securities maturing within 60 days are valued at cost plus accreted discount or
minus amortized premium, which approximates value; (d) securities for which
market quotations are not available will be valued in good faith at fair value
by or under the direction of the Board of Trustees; (e) interest income,
adjusted for amortization of premium and accretion of discount is recorded on
the accrual basis; (f) dividend income is recorded on the ex-dividend date;
foreign dividend income is recorded on the ex-dividend date or as soon as
practical after the Funds determine the existence of a dividend declaration
after exercising reasonable due diligence; (g) gains or losses on the sale of
securities are calculated by using the specific identification method; (h)
dividends and distributions to shareholders are recorded by the Funds on the
ex-dividend date; the Funds distribute dividends and capital gains, if any, at
least annually; (i) the accounting records of the Funds are maintained in U.S.
dollars. All assets and liabilities denominated in foreign currencies are
translated into U.S. dollars based on the rate of exchange of such currencies
against U.S. dollars on the date of valuation. Purchases and sales of
securities, and income and expenses are translated at the rate of exchange
quoted on the respective date that such transactions are recorded. Differences
between income and expense amounts recorded and collected or paid are adjusted
when reported by the custodian bank; (j) realized gain and loss on foreign
currency includes the net realized amount from the sale of currency and the
amount realized between trade date and settlement date on security
transactions; (k) the character of income and gains to be distributed are
determined in accordance with income tax regulations which may differ from
accounting principles generally accepted in the United States of America; (l)
each Fund intends to comply with the requirements of the Internal Revenue Code
of 1986, as amended, pertaining to regulated investment companies and to make
distributions of taxable income sufficient to relieve it from substantially all
Federal income and excise tax; and (m) 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.
Also, the Funds may enter into forward exchange contracts in order to hedge
against foreign currency risk. These contracts are marked-to-market daily, by
recognizing the difference between the contract exchange rate and the current
market rate as an unrealized gain or loss. Realized gains or losses are
recognized when contracts are settled.
23 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
2. Investment Management Agreement and Other Transactions
Smith Barney Fund Management LLC ("SBFM"), an indirect wholly-owned subsidiary
of Citigroup Inc. ("Citigroup"), acts as the investment manager to the Funds.
Each Fund pays SBFM a management fee calculated at an annual rate of 0.75% of
their average daily net assets. These fees are calculated daily and paid
monthly. For the six months ended June 30, 2003, SBFM waived all or a portion
of its management fees amounting to $34,343, $4,963, $6,513 and $33,431 for All
Cap Growth and Value, Large Cap Growth and Value, Global All Cap Growth and
Value and Balanced All Cap Growth and Value Portfolios, respectively. In
addition, SBFM has agreed to reimburse expenses amounting to $20,573 and
$19,556 for Large Cap Growth and Value and Global All Cap Growth and Value,
respectively.
Citicorp Trust Bank, fsb. ("CTB"), another subsidiary of Citigroup, acts as the
Funds' transfer agent. PFPC Global Fund Services ("PFPC") acts as the Funds'
sub-transfer agent. CTB receives account fees and asset-based fees that vary
according to the size and type of account. PFPC is responsible for shareholder
recordkeeping and financial processing for all shareholder accounts and is paid
by CTB. For the six months ended June 30, 2003, each Fund paid transfer agent
fees of $2,500 to CTB.
Citigroup Global Markets Inc. ("CGM"), formerly known as Salomon Smith Barney
Inc. ("SSB"), another indirect wholly-owned subsidiary of Citigroup, acts as
the Funds' distributor. For the six months ended June 30, 2003, CGM waived all
of its distribution plan fees for All Cap Growth and Value, Large Cap Growth
and Value, Global All Cap Growth and Value and Balanced All Cap Growth and
Value Portfolios, respectively. In addition, for the six months ended June 30,
2003, CGM and its affiliates did not receive any brokerage commissions for the
Funds' agency transactions.
Each Fund has adopted a distribution plan ("Plan") pursuant to Rule 12b-1 under
the 1940 Act. The Plan provides that the Funds shall pay a distribution fee of
0.25% of the daily net assets of the Fund. For the six months ended June 30,
2003, SBFM waived all of its distribution fees for each of the Funds.
All officers and one Trustee of the Trust are employees of Citigroup or its
affiliates.
3. Investments
During the six months ended June 30, 2003, the aggregate cost of purchases and
proceeds from sales of investments (including maturities of long-term
investments, but excluding short-term investments) were as follows:
Purchases Sales
- ----------------------------------------------------------
All Cap Growth and Value $21,366,092 $ 64,319
- ---------------------------------------------------------
Large Cap Growth and Value 2,442,572 15,618
- ---------------------------------------------------------
Global All Cap Growth and Value 1,741,294 57,786
- ---------------------------------------------------------
Balanced All Cap Growth and Value 17,242,507 2,003,253
- ---------------------------------------------------------
At June 30, 2003, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
Net Unrealized
Appreciation Depreciation Appreciation
- ----------------------------------------------------------------------------
All Cap Growth and Value $2,203,498 $(92,964) $2,110,534
- ---------------------------------------------------------------------------
Large Cap Growth and Value 246,018 (14,471) 231,547
- ---------------------------------------------------------------------------
Global All Cap Growth and Value 297,177 (11,473) 285,704
- ---------------------------------------------------------------------------
Balanced All Cap Growth and Value 1,403,135 (46,235) 1,356,900
- ---------------------------------------------------------------------------
24 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. Repurchase Agreements
The Funds purchase (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.
5. Shares of Beneficial Interest
At June 30, 2003, the Trust had an unlimited number of shares authorized with a
par value of $0.001 per share.
Transactions in shares of each Fund were as follows:
Six Months Ended Period Ended
June 30, 2003 December 31, 2002 (a)
- -----------------------------------------------------------
All Cap Growth and
Value
Shares sold 2,276,119 314,555
Shares reacquired (15,954) (1,881)
- ----------------------------------------------------------
Net Increase 2,260,165 312,674
- ----------------------------------------------------------
Large Cap Growth
and Value
Shares sold 249,030 40,980
Shares reacquired (6,544) (380)
- ----------------------------------------------------------
Net Increase 242,486 40,600
- ------------------------------------
- -----------------------------------------------------------
Global All Cap
Growth and Value
Shares sold 188,595 111,473
Shares reacquired (23,236) (18,462)
- ----------------------------------------------------------
Net Increase 165,359 93,011
- ------------------------------------
- -----------------------------------------------------------
Balanced All Cap
Growth and Value
Shares sold 1,788,874 310,541
Shares reacquired (24,412) (218)
- ----------------------------------------------------------
Net Increase 1,764,462 310,323
- ------------------------------------
- -----------------------------------------------------------
(a) For the period October 1, 2002 (commencement of operations) to December 31,
2002.
25 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
FINANCIAL HIGHLIGHTS
For a share of beneficial interest outstanding throughout each period ended
December 31, unless otherwise noted:
All Cap Growth and Value 2003/(1)(2)/ 2002/(2)(3)/
- --------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $10.65 $10.00
- -----------------------------------------------------------------------------------------------
Income From Operations:
Net investment income/(4)/ 0.01 0.01
Net realized and unrealized gain 1.46 0.64
- -----------------------------------------------------------------------------------------------
Total Income From Operations 1.47 0.65
- -----------------------------------------------------------------------------------------------
Net Asset Value, End of Period $12.12 $10.65
- -----------------------------------------------------------------------------------------------
Total Return/(5)++/ 13.80% 6.50%
- -----------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $31,175 $3,330
- -----------------------------------------------------------------------------------------------
Ratio to Average Net Assets+:
Expenses/(4)(6)/ 1.00% 1.00%
Net investment income 0.16 0.49
- -----------------------------------------------------------------------------------------------
Portfolio Turnover Rate 1% 2%
- -----------------------------------------------------------------------------------------------
Large Cap Growth and Value 2003/(1)(2)/ 2002/(2)(3)/
- -------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $10.73 $10.00
- ----------------------------------------------------------------------------------------------
Income From Operations:
Net investment income/(4)/ 0.03 0.01
Net realized and unrealized gain 1.36 0.72
- ----------------------------------------------------------------------------------------------
Total Income From Operations 1.39 0.73
- ----------------------------------------------------------------------------------------------
Net Asset Value, End of Period $12.12 $10.73
- ----------------------------------------------------------------------------------------------
Total Return/(5)++/ 12.95% 7.30%
- ----------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $3,432 $436
- ----------------------------------------------------------------------------------------------
Ratio to Average Net Assets+:
Expenses/(4)(6)/ 1.00% 1.00%
Net investment income 0.54 0.69
- ----------------------------------------------------------------------------------------------
Portfolio Turnover Rate 1% 3%
- ----------------------------------------------------------------------------------------------
(1) For the six months ended June 30, 2003 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the period October 1, 2002 (commencement of operations) to December 31,
2002.
(4) The Manager and Distributor waived all or a portion of its fees for the six
months ended June 30, 2003 and for the period ended December 31, 2002. If
such fees were not waived and expenses not reimbursed, the per share
decreases to net investment income and the actual expense ratios would have
been as follows:
Expense Ratios
Per Share Decreases Without Fee Waivers and
to Net Investment Income Expense Reimbursements
------------------------ ----------------------
Fund 2003 2002 2003 2002
- ---- ----- ----- ----- ------
All Cap Growth and
Value $0.04 $0.40 1.78%+ 21.24%+
Large Cap Growth
and Value 0.21 2.55 5.11+ 119.99+
(5) 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.
(6) As a result of a voluntary expense limitation, the ratio of expenses to
average net assets will not exceed 1.00%.
++ Total return is not annualized, as it may not be representative of the total
return for the year.
+ Annualized.
26 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share of beneficial interest outstanding throughout each period ended
December 31, unless otherwise noted:
Global All Cap Growth and Value 2003/(1)(2)/ 2002/(2)(3)/
- -------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $10.78 $10.00
- ----------------------------------------------------------------------------------------------
Income From Operations:
Net investment income/(4)/ 0.03 0.01
Net realized and unrealized gain 1.48 0.77
- ----------------------------------------------------------------------------------------------
Total Income From Operations 1.51 0.78
- ----------------------------------------------------------------------------------------------
Net Asset Value, End of Period $12.29 $10.78
- ----------------------------------------------------------------------------------------------
Total Return/(5)++/ 14.01% 7.80%
- ----------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $3,174 $1,003
- ----------------------------------------------------------------------------------------------
Ratio to Average Net Assets+:
Expenses/(4)(6)/ 1.00% 1.00%
Net investment income 0.57 0.38
- ----------------------------------------------------------------------------------------------
Portfolio Turnover Rate 4% 2%
- ----------------------------------------------------------------------------------------------
Balanced All Cap Growth and Value 2003/(1)(2)/ 2002/(2)(3)/
- -------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $10.42 $10.00
- ----------------------------------------------------------------------------------------------
Income From Operations:
Net investment income/(4)/ 0.04 0.02
Net realized and unrealized gain 1.03 0.40
- ----------------------------------------------------------------------------------------------
Total Income From Operations 1.07 0.42
- ----------------------------------------------------------------------------------------------
Net Asset Value, End of Period $11.49 $10.42
- ----------------------------------------------------------------------------------------------
Total Return/(5)++/ 10.27% 4.20%
- ----------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $23,838 $3,234
- ----------------------------------------------------------------------------------------------
Ratio to Average Net Assets+:
Expenses/(4)(6)/ 1.00% 1.00%
Net investment income 0.78 1.28
- ----------------------------------------------------------------------------------------------
Portfolio Turnover Rate 22% 7%
- ----------------------------------------------------------------------------------------------
(1) For the six months ended June 30, 2003 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the period October 1, 2002 (commencement of operations) to December 31,
2002.
(4) The Manager and Distributor waived all or a portion of its fees for the six
months ended June 30, 2003 and for the period ended December 31, 2002. If
such fees were not waived and expenses not reimbursed, the per share
decreases to net investment income and the actual expense ratios would have
been as follows:
Expense Ratios
Per Share Decreases Without Fee Waivers and
to Net Investment Income Expense Reimbursements
------------------------ ----------------------
Fund 2003 2002 2003 2002
- ---- ----- ----- ----- -----
Global All Cap
Growth and Value $0.18 $1.10 4.25%+ 52.11%+
Balanced All Cap
Growth and Value 0.04 0.40 1.85+ 23.28+
(5) 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.
(6) As a result of a voluntary expense limitation, the ratio of expenses to
average net assets will not exceed 1.00%.
++ Total return is not annualized, as it may not be representative of the total
return for the year.
+ Annualized.
27 Smith Barney Multiple Discipline Trust | 2003 Semi-Annual Report to
Shareholders
SMITH BARNEY
MULTIPLE DISCIPLINE TRUST
TRUSTEES INVESTMENT MANAGER
H. John Ellis Smith Barney Fund
R. Jay Gerken, CFA Management LLC
Chairman
Armon E. Kamesar DISTRIBUTOR
Stephen E. Kaufman Citigroup Global Markets Inc.
John J. Murphy
CUSTODIAN
OFFICERS State Street Bank and
R. Jay Gerken, CFA Trust Company
President and
Chief Executive Officer TRANSFER AGENT
Citicorp Trust Bank, fsb.
Lewis E. Daidone 125 Broad Street, 11th Floor
Senior Vice President and New York, New York 10004
Chief Administrative Officer
SUB-TRANSFER AGENT
Roger Paradiso PFPC Global Fund Services
Investment Officer P.O. Box 9699
Providence, Rhode Island
Kirstin Mobyed 02940-9699
Investment Officer
Frances M. Guggino
Controller
Christina T. Sydor
Secretary
Smith Barney Multiple Discipline Trust
Multiple Discipline Portfolio -- All Cap Growth and Value
Multiple Discipline Portfolio -- Large Cap Growth and Value
Multiple Discipline Portfolio -- Global All Cap Growth and Value
Multiple Discipline Portfolio -- Balanced All Cap Growth and Value
The Funds are separate investment funds of the Smith Barney Multiple
Discipline Trust, a Massachusetts business trust.
This report is submitted for the general information of the shareholders of
the Smith Barney Multiple Discipline Trust: Multiple Discipline
Portfolio -- All Cap Growth and Value, Multiple Discipline Portfolio -- Large
Cap Growth and Value, Multiple Discipline Portfolio -- Global All Cap Growth
and Value and Multiple Discipline Portfolio -- Balanced All Cap Growth and
Value. It is not authorized for distribution to prospective investors unless
accompanied or preceded by a current Prospectus, which contains information
concerning the investment policies and expenses as well as other pertinent
information.
SMITH BARNEY MULTIPLE DISCIPLINE TRUST
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)Citigroup Global Markets Inc.
Member NASD, SIPC
FD02805 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 Multiple Discipline Trust
By: /s/ R. Jay Gerken
--------------------------------------
R. Jay Gerken
Chief Executive Officer of
Smith Barney Multiple Discipline Trust
Date: September 2, 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 Multiple Discipline Trust
Date: September 2, 2003
By: /s/ Lewis E. Daidone
--------------------------------------
Chief Administrative Officer of
Smith Barney Multiple Discipline Trust.
Date: September 2, 2003