UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-K

                  ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934

                      For the year ended December 31, 2001

Commission File Number 000-30455


            SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.
-------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


          New York                         13-4015586
------------------------------------------ ------------------------------
(State or other jurisdiction of             (I.R.S. Employer
 incorporation or organization)              Identification No.)


                     c/o Smith Barney Futures Management LLC
                           388 Greenwich St. - 7th Fl.
                            New York, New York 10013
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              (Address and Zip Code of principal executive offices)

                                 (212) 723-5424
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           (Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:  None
Securities registered pursuant to Section 12(g) of the Act:  Units of
                                                             Limited Partnership
                                                             Interest
                                                             (Title of Class)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                                    Yes X        No

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
form 10-K [X]

As of February 28, 2002,  Limited  Partnership  Units with an aggregate value of
$48,296,985 were outstanding and held by non-affiliates.

                     DOCUMENTS INCORPORATED BY REFERENCE
                                      None



<PAGE>
                                     PART I

     Item 1. Business. (a) General development of business. Salomon Smith Barney
Global  Diversified   Futures  Fund  L.P.  (the   "Partnership")  is  a  limited
partnership  organized under the  partnership  laws of the State of New York, on
June 15, 1998 to engage in  speculative  trading of a  diversified  portfolio of
commodity  interests,  including futures  contracts,  options and forwards.  The
commodity  interests that are traded by the Partnership are volatile and involve
a high degree of market risk.
     A Registration Statement on Form S-1 relating to the public offering became
effective on November  25, 1998.  Between  November  25, 1998  (commencement  of
offering  period)  and  February 1, 1999,  33,379  Units were sold at $1,000 per
Unit.  Proceeds  of the  offering  were  held  in an  escrow  account  and  were
transferred,  along with the general  partner's  contribution of $337,000 to the
Partnership's trading account on February 2, 1999 when the Partnership commenced
trading.  The public offering  terminated on April 1, 2000.  Sales of additional
Units and  additional  general  partner  contributions  of Units for the periods
ended December 31, 2000 and 1999, and redemptions of Units for the periods ended
December  31,  2001,  2000 and 1999 are  reported in the  Statement of Partners'
Capital on page F-6 under "Item 8. Financial Statement and Supplementary Data".
     The General Partner has agreed to make capital contributions, if necessary,
so that its general partnership  interest will be equal to the greater of (i) 1%


                                       2
<PAGE>

of  the  partners'  contributions  to  the  Partnership  or  (ii)  $25,000.  The
Partnership  will be  liquidated  upon the  first  of the  following  to  occur:
December 31, 2018;  the net asset value of a Unit decreases to less than $400 as
of the close of any business day; or under certain  circumstances  as defined in
the Limited Partnership  Agreement of the Partnership (the "Limited  Partnership
Agreement").
     Smith  Barney  Futures  Management  LLC acts as the  general  partner  (the
"General  Partner") of the Partnership.  The  Partnership"s  commodity broker is
Salomon Smith Barney Inc.  ("SSB").  SSB is an affiliate of the General Partner.
The  General  Partner is wholly  owned by Salomon  Smith  Barney  Holdings  Inc.
("SSBHI"), which is the sole owner of SSB. SSBHI is a wholly owned subsidiary of
Citigroup Inc.
     The Partnership's  trading of futures,  forwards and options contracts,  if
applicable,  on  commodities  is done on United  States of America  and  foreign
commodity  exchanges.  It engages in such trading through a commodity  brokerage
account maintained with SSB.
     As of December 31, 2001, all commodity  trading  decisions are made for the
Partnership  by  Campbell & Company,  Inc.  ("Campbell"),  Aspect  Capital  Ltd.
("Aspect"),  Rabar Market Research Inc.  ("Rabar") and Eckhardt  Trading Company
("Eckhardt") (collectively,  the "Advisors"). None of the Advisors is affiliated
with one another,  the General  Partner or SSB. The Advisors are not responsible
for the organization or operation of the Partnership. Eagle Trading Systems Inc.
was terminated as an advisor to the Partnership on March 1, 2001.  Effective May


                                       3
<PAGE>

16, 2001, the General  Partner added Aspect Capital Limited as an advisor to the
Partnership.  Effective  December 31, 2001 the General Partner  terminated Rabar
Market  Research Inc. as an advisor to the  Partnership and allocated the assets
to Aspect Capital Ltd., an existing advisor to the Partnership.
     Pursuant  to  the  terms  of the  Management  Agreements  (the  "Management
Agreements"),  the  Partnership is obligated to pay each Advisor:  (i) a monthly
management  fee equal to 1/6 of 1% (2% per year) of month-end Net Assets (except
that Eagle's  management  fee was reduced by Eagle's pro rata share of customary
and routine  administrative  expenses of the  Partnership  and Aspect which will
receive  a monthly  management  fee equal to 1/12 of 1.25%  (1.25%  per  year)),
allocated to each Advisor as of the end of each month and (ii) an incentive  fee
payable  annually  equal to 20% of the New  Trading  Profits,  as defined in the
Management  Agreements,  except Eagle, which was paid an incentive fee of 23% of
New Trading Profits, earned by each Advisor for the Partnership.
     The  Partnership  has  entered  into a  Customer  Agreement  with  SSB (the
"Customer  Agreement")  which provides that the  Partnership  will pay SSB (i) a
monthly  brokerage fee equal to 9/20 of 1% of month-end Net Assets  allocated to
the  Advisors  (5.4% per year) in lieu of brokerage  commissions  on a per trade
basis. For the period from February 2, 1999 (commencement of trading operations)
to July 31, 1999,  the  Partnership  paid SSB brokerage  commissions  at $54 per


                                       4
<PAGE>

round turn for transactions entered into by Campbell.  SSB pays a portion of its
brokerage  fees to its  financial  consultants  who have sold  Units and who are
registered as associated  persons with the Commodity Futures Trading  Commission
(the "CFTC").  The Partnership  pays for National  Futures  Association  ("NFA")
fees,  exchange and  clearing  fees,  give-up and user fees and floor  brokerage
fees.  The  Customer  Agreement  between  the  Partnership  and  SSB  gives  the
Partnership the legal right to net unrealized  gains and losses.  Brokerage fees
will be paid for the life of the  Partnership,  although  the rate at which such
fees are paid may be changed.
     In addition,  SSB pays the Partnership interest on 80% of the average daily
equity  maintained  in cash in its  account  during  each month at a 30-day U.S.
Treasury bill rate determined weekly by SSB based on the average non-competitive
yield on 3-month U.S.  Treasury bills maturing in 30 days from the date on which
such weekly rate is determined.
     (b)  Financial  information  about  industry  segments.  The  Partnership's
business  consists  of  only  one  segment,  speculative  trading  of  commodity
interests.  The Partnership  does not engage in sales of goods or services.  The
Partnership's net income (loss) from operations for the years ended December 31,
2001 and 2000 and for the period from February 2, 1999  (commencement of trading
operations)  to December  31, 1999 is set forth under "Item 6. Select  Financial
Data". Partnership's capital as of December 31, 2001, was $53,403,935.

     (c) Narrative description of business.

     See Paragraphs (a) and (b) above.
     (i) through (x) - Not applicable.
     (xi) through (xii) - Not applicable.
     (xiii) - The Partnership has no employees.


                                       5
<PAGE>

     (d) Financial  Information About Geographic Areas. The Partnership does not
engage in sales of goods or services or own any long lived assets and  therefore
this item is not applicable.
Item 2.  Properties.
     The Partnership  does not own or lease any properties.  The General Partner
operates out of facilities provided by its affiliate, SSB.
Item 3.  Legal Proceedings.
     This section  describes  the major pending  legal  proceedings,  other than
ordinary routine litigation  incidental to the business,  to which Salomon Smith
Barney Holdings Inc.  ("SSBH") or its subsidiaries is a party or to which any of
their  property is  subject.  There are no material  legal  proceedings  pending
against the Partnership or the General Partner.
     Salomon  Smith  Barney  Inc.  ("SSB")  is a New York  corporation  with its
principal place of business at 388 Greenwich St., New York, New York 10013.  SSB
is registered as a broker-dealer and futures  commission  merchant ("FCM"),  and
provides futures  brokerage and clearing  services for  institutional and retail
participants  in the  futures  markets.  SSB and  its  affiliates  also  provide
investment banking and other financial services for clients worldwide.
     There have been no  administrative,  civil or criminal actions pending,  on


                                       6


<PAGE>

appeal or concluded  against SSB or any of its individual  principals within the
past five years that  management  believes  may have a material  impact on SSB's
ability to act as an FCM. In the ordinary course of its business, SSB is a party
to various claims and regulatory  inquiries.  Proceedings  deemed to be material
for  purposes  of  Commodity  Futures  Trading  Commission  ("CFTC")  disclosure
requirements are:
     In September 1992,  Harris Trust and Savings Bank (as trustee for Ameritech
Pension Trust ("APT"), Ameritech Corporation,  and an officer of Ameritech filed
suit  against  Salomon   Brothers  Inc.  ("SBI")  and  Salomon  Brothers  Realty
Corporation  ("SBRC") in the U.S.  District  Court for the Northern  District of
Illinois  (Harris Trust Savings Bank, not individually but solely as trustee for
the Ameritech  Pension  Trust,  Ameritech  Corporation  and John A. Edwardson v.
Salomon  Brothers Inc and Salomon  Brothers  Realty  Corp.).  The second amended
complaint  alleges that three purchases by APT from defendants of  participation
interests  in net cash flow or resale  proceeds  of three  portfolios  of motels
owned by Motels of America, Inc. ("MOA"), as well as a fourth purchase by APT of
a similar  participation  interest in a portfolio  of motels owned by Best Inns,
Inc. ("Best"),  violated the Employee  Retirement Income Security Act ("ERISA"),
and  that  APT's  purchase  of the  participation  interests  in the  third  MOA
portfolio  and in the Best  portfolio  violated  the  Racketeer  Influenced  and
Corrupt  Organization Act ("RICO") and the Illinois Consumer Fraud and Deceptive
Practices  Act  ("Consumer  Fraud  Act"),  and  constituted   fraud,   negligent


                                       7
<PAGE>

misrepresentation,  breach of contract and unjust  enrichment.  SBI had acquired
the participation interests when it purchased principal mortgage notes issued by
MOA and Best to finance  purchases  of motel  portfolios;  95% of three of those
interests  and 100% of the fourth were sold to APT for a total of  approximately
$20.9 million.  Plaintiffs'  second amended  complaint seeks judgment (a) on the
ERISA claims for the approximately  $20.9 million purchase price, for rescission
and for  disgorgement of profits,  as well as other relief,  and (b) on the RICO
and state law claims in the amount of $12.3 million, with damages trebled to $37
million on the RICO  claims  and  punitive  damages in excess of $37  million on
certain of the state law claims as well as other  relief.  Following  motions by
defendants,  the court dismissed the RICO, Consumer Fraud Act, fraud,  negligent
misrepresentation,  breach of contract,  and unjust enrichment claims. The court
also found that defendants  were not ERISA  fiduciaries and dismissed two of the
three claims based on that allegation.  Defendants moved for summary judgment on
plaintiffs' only remaining claim,  which alleged an ERISA violation.  The motion
was denied, and defendants appealed to the U.S. Court of Appeals for the Seventh
Circuit.  In July  1999,  the U. S.  Court of Appeals  for the  Seventh  Circuit
reversed the denial of defendants' motion for summary judgment and dismissed the
sole remaining ERISA claim against the Company.  Plaintiffs filed a petition for
certiorari  with the U. S. Supreme Court  seeking  review of the decision of the
Court of  Appeals,  which was  granted  in  January  2000.  After  hearing  oral


                                       8
<PAGE>

argument,  on June 12, 2000,  the U.S.  Supreme Court reversed the U.S. Court of
Appeals for the Seventh Circuit's  judgment,  which had overturned the denial of
defendants'  motion for summary  judgment and dismissed the sole remaining ERISA
claim  against the Company,  and  remanded  the matter to the circuit  court for
further proceedings.  Subsequently, the circuit court remanded the matter to the
U.S.   District  Court  for  the  Northern  District  of  Illinois  for  further
proceedings.
     Both the Department of Labor and the Internal  Revenue Service ("IRS") have
advised SBI that they were or are reviewing the  underlying  transactions.  With
respect to the IRS,  SSBH, SBI and SBRC have consented to extensions of time for
the  assessment  of  excise  taxes  that  may be  claimed  with  respect  to the
transactions  for the years 1987,  1988 and 1989.  In August 1996,  the IRS sent
SSBH,  SBI and SBRC what appeared to be draft  "30-day  letters" with respect to
the  transactions and SSBH, SBI and SBRC were given an opportunity to comment on
whether the IRS should issue 30-day letters,  which would actually  commence the
assessment  process.  In October 1996, SSBH, SBI and SBRC submitted a memorandum
setting  forth reasons why the IRS should not issue such 30-day  letters.  Since
that time, the IRS has not issued such 30-day letters to SSBH, SBI or SBRC.
     In December  1996, a complaint  seeking  unspecified  monetary  damages was
filed by Orange County,  California against numerous brokerage firms,  including
SSB,  in the U.S.  Bankruptcy  Court for the  Central  District  of  California.
(County  of Orange  et al v.  Bear  Stearns  & Co.  Inc.  et al.) The  complaint


                                       9
<PAGE>

alleged,  among other things,  that the  brokerage  firms  recommended  and sold
unsuitable  securities to Orange Count.  SSB and the remaining  brokerage  firms
settled with Orange County in mid 1999.
     In June  1998,  complaints  were filed in the U.S.  district  Court for the
Eastern District of Louisiana in two actions (Board of  Liquidations,  City Debt
of the City of New  Orleans v. Smith  Barney  Inc,  et ano.  and The City of New
Orleans v. Smith Barney Inc. et ano.),  in which the City of New Orleans seeks a
determination that Smith Barney Inc. and another underwriter will be responsible
for any  damages  that the City may incur in the event the IRS denies tax exempt
status to the  City's  General  Obligation  Refunding  Bonds  Series  1991.  The
complaints  were  subsequently  amended.  SSB has asked the court to dismiss the
amended   complaints.   The  Court  denied  the  motion  but  stayed  the  case.
Subsequently, the city withdrew the lawsuit.
     In November  1998, a class action  complaint was filed in the United States
District  Court for the Middle  District of Florida  (Dwight  Brock as Clerk for
Collier County v. Merrill Lynch, et al.). The Complaint  alleged that,  pursuant
to a nationwide conspiracy, 17 broker-dealer defendants,  including SSB, Charged
excessive  mark-ups in connection with advanced  refunding  transactions.  Among
other relief,  plaintiffs sought compensatory and punitive damages,  restitution
and/or  rescission of the  transactions  and  disgorgement of alleged  excessive
profits.  In October 1999, the plaintiff filed a second amended  complaint.  SSB
has asked the court to dismiss the amended  complaint.  In  November  1999,  SSB
moved to dismiss the amended  complaint.  In May 2001, the parties reached,  and


                                       10
<PAGE>

the court preliminarily approved, a tentative settlement. In September 2001, the
court approved the settlement.
     In connection with the Louisiana and Florida matters,  the IRS and SEC have
been  conducting  an  industry-wide  investigation  into the pricing of Treasury
securities  in advanced  refunding  transactions,  In April 2000 SSB and several
other broker-dealers entered into a settlement with the IRS and the SEC.
     In December  1998,  SSB was one of  twenty-eight  market  making firms that
reached a settlement  with the SEC in the matter titled In the Matter of Certain
Market Making  Activities on NASDAQ.  As part of the  settlement of that matter,
SSB,  without  admitting or denying the factual  allegation,  agreed to an order
that  required  that it: (i) cease and desist  from  committing  or causing  any
violations of Sections  15(c)(1) and (2) of the Securities  Exchange Act of 1934
and Rules 15cl -2,  15c2-7 and 17a-3  thereunder,  (ii) pay  penalties  totaling
approximately  $760,000,  and (iii) submit certain policies and procedures to an
independent consultant for review.
     In March 1999, a complaint seeking in excess of $250 million was filed by a
hedge fund and its  investment  advisor  against SSB in the Supreme Court of the
State of New York,  County of New York (MKP Master  Fund,  LDC et al. v. Salomon
Smith Barney  Inc.).  Plaintiffs  allege that while acting as their prime broker
SSB breached its contracts with  plaintiffs,  converted  plaintiffs'  monies and
engaged in tortious  conduct,  including  breaching  its  fiduciary  duties.  In
October 1999, the court dismissed plaintiffs' tort claims,  including the breach


                                       11
<PAGE>

of  fiduciary  duty claims,  but allowed the breach of contract  and  conversion
claims  to  stand.   In  December   1999,  SSB  filed  an  answer  and  asserted
counterclaims  against the investment advisor. In response to plaintiffs' motion
to strike the  counterclaims,  in January  2000,  SSB amended its  counterclaims
against  the  investment  advisor  to  seek  indemnification  and  contribution.
Plaintiffs  moved to strike SSB's  amended  counterclaims  in February  2000. In
September   2000,  the  court  denied   plaintiffs'   motion  to  dismiss  SSB's
counterclaims based on indemnification and contribution. Discovery is ongoing.
     SSBH and various subsidiaries have also been named as defendants in various
matters  incident to and typical of the  businesses  in which they are  engaged.
These include numerous civil actions,  arbitration proceedings and other matters
in which  SSBH's  broker-dealer  subsidiaries  have been  named,  arising in the
normal  course  of  business  out  of  activities  as a  broker  and  dealer  in
securities,  as an  underwriter  of  securities,  as  an  investment  banker  or
otherwise.  In the  opinion  of  SSBH's  management,  none of these  actions  is
expected  to have a  material  adverse  effect  on the  results  of  operations,
consolidated financial condition or liquidity of SSBH and its subsidiaries.

Item 4.  Submission of Matters to a Vote of Security Holders.
     There were no matters  submitted to the security  holders for a vote during
the last fiscal year covered by this report.


                                       12
<PAGE>

                                     PART II
Item 5.  Market for  Registrant's  Common  Equity and  Related  Security  Holder
     Matters.

     (a)  Market  Information.  The Partnership has issued no stock. There is no
          established  public  market  for  the  Units  of  Limited  Partnership
          Interest.

     (b)  Holders. The number of holders of Units of Limited Partnership
               Interest as of December 31, 2001 was 1,937.

     (c)  Distribution.  The  Partnership did not declare a distribution in 2001
          and 2000.

     (d)  Use of Proceeds.  There were no  additional  sales in the period ended
          December 31, 2001. For the period ended December 31, 2000,  there were
          additional   sales  of  6,266.1056   Units  totaling   $5,931,000  and
          contributions  by  the  General  Partner  representing  125.4784  Unit
          equivalents totaling $120,000.

          For the period ended December 31, 1999, there were additional sales of
          60,121.0615  Units  totaling  $59,480,000  and  contributions  by  the
          General  Partner  representing   603.9704  Unit  equivalents  totaling
          $598,000.  Proceeds from the sale of additional  Units are used in the
          trading of commodity  interests  including futures contracts,  options
          and forward contracts.

                                       13
<PAGE>



     Item  6.  Selected  Financial  Data.  The  Partnership   commenced  trading
operations on February 2, 1999.  Realized and unrealized trading gains (losses),
interest  income,  net income (loss) and increase  (decrease) in Net Asset Value
per Unit for the years ended  December 31, 2001 and 2000 and for the period from
February 2, 1999  (commencement of trading  operations) to December 31, 1999 and
total assets at December 31, 2001, 2000 and 1999 were as follows:
<TABLE>
<CAPTION>


                                            2001           2000             1999
<S>                                          <C>            <C>              <C>
Realized and unrealized trading
 gains (losses) net of brokerage
 commissions and clearing fees
 of $3,312,436, $4,029,150 and
 $3,196,873, respectively           $  2,013,666   $    568,937    $ (3,647,829)

Interest income                        1,580,323      3,075,979       2,047,606
                                     -----------    -----------     ------------
                                    $  3,593,989   $  3,644,916    $ (1,600,223)
                                    ============    ===========     ============

Net income (loss)                   $  2,185,742   $  1,661,004    $ (3,252,858)
                                    ============    ===========     ============
Increase (decrease) in Net
 Asset Value per Unit               $      41.71   $      59.57    $     (49.05)
                                    ============    ===========     ============
Total assets                        $ 54,385,513   $ 61,705,880    $ 89,065,209
                                    ============    ===========     ============

</TABLE>


                                       14
<PAGE>

Item 7. Management's  Discussion and Analysis of Financial Condition and Results
     of Operations.
     (a)  Liquidity.  The  Partnership  does  not  engage  in  sales of goods or
services.  Its only  assets  are its  equity in its  commodity  futures  trading
account,  consisting of cash, net unrealized appreciation (depreciation) on open
positions and interest  receivable.  Because of the low margin deposits normally
required in commodity  trading,  relatively  small price movements may result in
substantial  losses to the Partnership.  Such substantial losses could lead to a
material decrease in liquidity.  To minimize this risk, the Partnership  follows
certain policies including:
     (1)  Partnership  funds are invested only in commodity  interests which are
traded in sufficient volume to permit,  in the opinion of the Advisors,  ease of
taking and liquidating positions.
     (2) The Partnership diversifies its positions among various commodities.
     (3) No Advisor  initiates  additional  positions  in any  commodity if such
additional  positions  would result in aggregate  positions for all  commodities
requiring as margin more than 66-2/3% of the  Partnership's  assets allocated to
the Advisor.
     (4) The Partnership may occasionally accept delivery of a commodity. Unless
such  delivery is disposed of promptly  by  retendering  the  warehouse  receipt
representing  the  delivery to the  appropriate  clearing  house,  the  physical
commodity position will be fully hedged.
     (5) The Partnership will not employ the trading technique commonly known as
"pyramiding",  in which the  speculator  uses  unrealized  profits  on  existing
positions as margin for the purchase or sale of additional positions in the same
or related commodities.


                                       15
<PAGE>

     (6)  The  Partnership  will  not  utilize   borrowings   except  short-term
borrowings if the Partnership takes delivery of any cash commodities.
     (7) The Advisor may, from time to time,  employ trading  strategies such as
spreads  or  straddles  on  behalf  of the  Partnership.  The term  "spread"  or
"straddle"   describes  a  commodity  futures  trading  strategy  involving  the
simultaneous  buying and selling of futures  contracts on the same commodity but
involving different delivery dates or markets and in which the trader expects to
earn a profit from a widening or narrowing of the difference  between the prices
of the two contracts.
     The Partnership is party to financial  instruments with  off-balance  sheet
risk,  including  derivative  financial  instruments  and  derivative  commodity
instruments,  in the normal course of its business.  These financial instruments
may  include  forwards,  futures  and  options,  whose  value is  based  upon an
underlying  asset,  index,  or reference  rate, and generally  represent  future
commitments to exchange  currencies or cash flows,  or to purchase or sell other
financial  instruments  at specified  terms at specified  future dates.  Each of
these  instruments  is subject to various risks similar to those relating to the
underlying financial  instruments  including market and credit risk. The General


                                       16
<PAGE>

Partner monitors and controls the  Partnership's  risk exposure on a daily basis
through   financial,   credit  and  risk  management   monitoring  systems  and,
accordingly  believes  that  it has  effective  procedures  for  evaluating  and
limiting the credit and market risks to which the  Partnership is subject.  (See
also  Item  8.  Financial   Statements  and  Supplementary   Data,  for  further
information  on  financial  instrument  risk  included in the notes to financial
statements).
     Other than the risks inherent in commodity  trading,  the Partnership knows
of no trends, demands, commitments, events or uncertainties which will result in
or  which  are  reasonably  likely  to  result  in the  Partnership's  liquidity
increasing or decreasing in any material way. The Limited Partnership  Agreement
provides the  Partnership  will cease trading  operations and liquidate all open
positions upon the first to occur of the following:  (i) December 31, 2018; (ii)
the vote to dissolve the Partnership by limited partners owning more than 50% of
the Units; (iii) assignment by the General Partner of all of its interest in the
Partnership  or withdrawal,  removal,  bankruptcy or any other event that causes
the General  Partner to cease to be a general partner under the New York Revised
Limited  Partnership Act unless the Partnership is continued as described in the
Limited Partnership Agreement;  (iv) Net Asset Value per Unit falls to less than
$400 as of the end of any trading day; or (v) the  occurrence of any event which
shall make it unlawful for the existence of the Partnership to be continued.
     (b) Capital resources. (i) The Partnership has made no material commitments
for capital expenditures.


                                       17
<PAGE>

     (ii) The Partnership's capital consists of the capital contributions of the
partners as increased or decreased by gains or losses on commodity trading,  and
by expenses, interest income, redemptions of Units and distributions of profits,
if any. Gains or losses on commodity  trading cannot be predicted.  Market moves
in commodities are dependent upon  fundamental  and technical  factors which the
Partnership  may or may not be  able  to  identify.  Partnership  expenses  will
consist of, among other things, commissions, management fees and incentive fees.
The level of these  expenses  is  dependent  upon the level of trading  gains or
losses and the ability of the Advisors to identify  and take  advantage of price
movements  in the  commodity  markets,  in  addition  to the level of net assets
maintained.  In  addition,  the  amount of  interest  income  payable  by SSB is
dependent upon interest rates over which the Partnership has no control.
     No forecast can be made as to the level of redemptions in any given period.
A limited  partner  may cause  all or some of his  Units to be  redeemed  by the
Partnership at the  Redemption  value per Unit thereof as of the last day of any
month ending at least three  months  after such Units have been  issued,  on ten
days' notice to the General Partner. No fee is charged for redemptions.  For the
year  ended  December  31,  2001,   8,652.4672  Units  were  redeemed   totaling
$8,812,326.  For the year  ended  December  31,  2000,  38,567.0884  Units  were
redeemed totaling $34,769,993.  For the year ended December 31, 1999, 2,862.0307
Units were redeemed totaling $2,754,634.  Redemption/subscription value per Unit


                                       18
<PAGE>

differs  from net  asset  value  per Unit  calculated  for  financial  reporting
purposes  in that the  accrued  liability  for  reimbursement  of  offering  and
organization  expenses for the Initial  Offering  Period will not be included in
the calculation of redemption/subscription value per Unit.
     Offering and organization expenses of approximately  $700,000,  relating to
the issuance and marketing of the  Partnership's  Units  offered were  initially
paid by SSB.  These costs have been  reimbursed to SSB by the  Partnership in 24
equal monthly  installments  (together with interest at the prime rate quoted by
JPMorgan Chase & Co.).

     For the periods ended December 31, 2001, 2000 and 1999, $40,661, $362,024
and $297,315,  respectively,  of these costs have been reimbursed to SSB, by the
Partnership.

     In addition, the Partnership has recorded interest expense of $161, $19,111
and $40,947,  respectively,  for the years ended  December 31, 2001 and 2000 and
for the period ended December 31, 1999, which is included in other expenses.

     The Partnership's  public offering  terminated on April 1, 2000. There were
no  additional  sales for the year ended  December 31, 2001.  For the year ended
December 31, 2000,  there were  additional  sales of 6,266.1056  Units  totaling
$5,931,000 and contributions by the General Partner representing  125.4784 Units
equivalents totaling $120,000.  For the year ended December 31, 1999, there were
additional sales of 60,121.0615 Units totaling  $59,480,000 and contributions by
the General Partner representing 603.9704 Unit equivalents


                                       19
<PAGE>

totaling $598,000.
(c)  Results of Operations.
     For the  year  ended  December  31,  2001,  the Net  Asset  Value  per Unit
increased  4.1% from  $1,010.52 to  $1,052.23.  For the year ended  December 31,
2000, the Net Asset Value per Unit increased 6.3% from $950.95 to $1,010.52. For
the  period  from  February  2, 1999  (commencement  of trading  operations)  to
December 31, 1999,  the Net Asset Value per Unit  decreased  4.9% from $1,000 to
$950.95.
     The  Partnership   experienced  net  trading  gains  of  $5,326,102  before
commissions  and  expenses  for the year ended  December  31,  2001.  Gains were
primarily attributable to the trading of currencies,  U.S. and non-U.S. interest
rates,  metals, softs and indices and were partially offset by losses recognized
in energy, grains and livestock.
     The  Partnership   experienced  net  trading  gains  of  $4,598,087  before
commissions  and  expenses  for the year ended  December  31,  2000.  Gains were
primarily attributable to the trading of currencies,  energy products,  U.S. and
non- U.S.  interest  rates and  livestock  and were  partially  offset by losses
recognized in grains, indices, metals and softs.
     The   Partnership   experienced  net  trading  losses  of  $450,956  before
commissions and expenses for the year ended December 31, 1999. These losses were
primarily attributable to the trading of currencies,  metals,  livestock,  softs
and non-U.S. interest rates and were partially offset by gains recognized in the
trading of indices, grains, U.S. interest rates and energy products.


                                       20
<PAGE>

     Commodity markets are highly volatile.  Broad price  fluctuations and rapid
inflation  increase the risks involved in commodity  trading,  but also increase
the possibility of profit.  The profitability of the Partnership  depends on the
existence of major price trends and the ability of the Advisor to identify those
price trends  correctly.  Price trends are  influenced  by, among other  things,
changing supply and demand relationships,  weather, governmental,  agricultural,
commercial and trade programs and policies, national and international political
and  economic  events and changes in interest  rates.  To the extent that market
trends exist and the Advisor is able to identify them, the  Partnership  expects
to increase capital through operations.
(d)  Operational Risk
     The Partnership is directly  exposed to market risk and credit risk,  which
arise in the normal course of its business activities. Slightly less direct, but
of critical  importance,  are risks  pertaining to  operational  and back office
support.  This is particularly  the case in a rapidly  changing and increasingly
global environment with increasing  transaction  volumes and an expansion in the
number and complexity of products in the marketplace.
Such risks include:
Operational/Settlement  Risk - the risk of financial  and  opportunity  loss and
legal liability attributable to operational problems, such as inaccurate pricing
of transactions,  untimely trade execution,  clearance and/or settlement, or the
inability to process large volumes of  transactions.  The Partnership is subject
to increased  risks with respect to its trading  activities  in emerging  market


                                       21
<PAGE>

securities,  where clearance,  settlement, and custodial risks are often greater
than in more established markets.
Technological Risk - the risk of loss attributable to technological  limitations
or hardware failure that constrain the Partnership's ability to gather, process,
and communicate information efficiently and securely, without interruption, with
customers,  among units  within the  Partnership,  and in the markets  where the
Partnership participates.
Legal/Documentation  Risk - the risk of loss attributable to deficiencies in the
documentation  of  transactions  (such  as  trade  confirmations)  and  customer
relationships  (such as master  netting  agreements)  or errors  that  result in
noncompliance with applicable legal and regulatory requirements.
Financial  Control  Risk - the  risk  of loss  attributable  to  limitations  in
financial  systems and controls.  Strong  financial  systems and controls ensure
that assets are safeguarded,  that  transactions are executed in accordance with
management's   authorization,   and  that  financial   information  utilized  by
management and  communicated to external  parties,  including the  Partnership's
unitholder, creditors, and regulators, is free of material errors.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Introduction
     The  Partnership  is a speculative  commodity  pool.  The market  sensitive
instruments held by it are acquired for speculative trading purposes, and all or


                                       22
<PAGE>

substantially all of the Partnership's assets are subject to the risk of trading
loss. Unlike an operating company,  the risk of market sensitive  instruments is
integral, not incidental, to the Partnership's main line of business.
     Market movements result in frequent changes in the fair market value of the
Partnership's open positions and,  consequently,  in its earnings and cash flow.
The  Partnership's  market  risk is  influenced  by a wide  variety of  factors,
including the level and volatility of interest  rates,  exchange  rates,  equity
price  levels,  the market value of financial  instruments  and  contracts,  the
diversification results among the Partnership's open positions and the liquidity
of the markets in which it trades.
     The  Partnership  rapidly  acquires  and  liquidates  both  long and  short
positions in a wide range of different markets. Consequently, it is not possible
to predict how a particular future market scenario will affect performance,  and
the Partnership's  past performance is not necessarily  indicative of its future
results.
     Value at Risk is a measure  of the  maximum  amount  which the  Partnership
could  reasonably  be expected to lose in a given market  sector.  However,  the
inherent uncertainty of the Partnership's speculative trading and the recurrence
in the markets  traded by the  Partnership  of market  movements  far  exceeding
expectations could result in actual trading or non-trading losses far beyond the


                                       23
<PAGE>

indicated Value at Risk or the Partnership's  experience to date (i.e., "risk of
ruin").  In  light  of the  foregoing  as well as the  risks  and  uncertainties
intrinsic  to all  future  projections,  the  inclusion  of  the  quantification
included in this section should not be considered to constitute any assurance or
representation  that the  Partnership's  losses  in any  market  sector  will be
limited to Value at Risk or by the  Partnership's  attempts to manage its market
risk.
Quantifying the Partnership's Trading Value at Risk
     The following  quantitative  disclosures regarding the Partnership's market
risk exposures contain  "forward-looking  statements" within the meaning of the
safe harbor from civil  liability  provided for such  statements  by the Private
Securities  Litigation  Reform  Act of 1995  (set  forth in  Section  27A of the
Securities Act of 1933 and Section 21E of the Securities  Exchange Act of 1934).
All  quantitative  disclosures in this section are deemed to be  forward-looking
statements  for purposes of the safe harbor except for  statements of historical
fact (such as the terms of  particular  contracts  and the number of market risk
sensitive instruments held during or at the end of the reporting period).
     The Partnership's risk exposure in the various market sectors traded by the
Advisor is quantified below in terms of Value at Risk. Due to the  Partnershi's
mark-to-market  accounting, any loss in the fair value of the Partnership's open
positions is directly  reflected in the  Partnership's  earnings  (realized  and
unrealized).
     Exchange  maintenance margin requirements have been used by the Partnership
as the measure of its Value at Risk.  Maintenance margin requirements are set by


                                       24
<PAGE>

exchanges  to equal or exceed  the  maximum  losses  reasonably  expected  to be
incurred  in the fair value of any given  contract  in  95%-99%  of any  one-day
intervals.  The  maintenance  margin  levels  are  established  by  dealers  and
exchanges  using  historical  price  studies as well as an assessment of current
market  volatility  (including the implied  volatility of the options on a given
futures contract) and economic fundamentals to provide a probabilistic  estimate
of the maximum expected near-term one-day price fluctuation.  Maintenance margin
has been used rather than the more generally  available initial margin,  because
initial margin  includes a credit risk component  which is not relevant to Value
at Risk.
     In the case of market sensitive  instruments  which are not exchange traded
(almost  exclusively  currencies  in the case of the  Partnership),  the  margin
requirements  for the  equivalent  futures  positions have been used as Value at
Risk. In those rare cases in which a futures-equivalent margin is not available,
dealers' margins have been used.
     The fair value of the Partnership's  futures and forward positions does not
have any optionality component. However, certain of the Advisors trade commodity
options. The Value at Risk associated with options is reflected in the following
table as the margin requirement  attributable to the instrument  underlying each
option.  Where this instrument is a futures  contract,  the futures margin,  and


                                       25
<PAGE>

where  this  instrument  is  a  physical   commodity,   the   futures-equivalent
maintenance  margin has been used.  This  calculation is conservative in that it
assumes  that the fair value of an option will decline by the same amount as the
fair value of the underlying  instrument,  whereas,  in fact, the fair values of
the options traded by the  Partnership in almost all cases fluctuate to a lesser
extent than those of the underlying instruments.
     In quantifying the Partnership's  Value at Risk, 100% positive  correlation
in the different  positions  held in each market risk category has been assumed.
Consequently,  the margin  requirements  applicable to the open  contracts  have
simply been added to determine each trading category's  aggregate Value at Risk.
The  diversification  effects  resulting  from the fact  that the  Partnership's
positions  are  rarely,  if  ever,  100%  positively  correlated  have  not been
reflected.

                                       26
<PAGE>

The Partnership's Trading Value at Risk in Different Market Sectors
     The following table indicates the trading Value at Risk associated with the
Partnership's  open  positions by market  category as of December 31, 2001.  All
open position  trading risk exposures of the  Partnership  have been included in
calculating  the  figures  set  forth  below.  As  of  December  31,  2001,  the
Partnership's total capitalization was $53,403,935.

                                December 31, 2001

 <TABLE>
<CAPTION>

                                                                          Year to Date
                                                 % of Total            High            Low
Market Sector                   Value at Risk   Capitalization     Value at Risk  Value at Risk
-----------------------------------------------------------------------------------------------
<S>                                        <C>           <C>                 <C>         <C>
Currencies
- Exchange Traded Contracts         $   72,796          0.14%         $  704,245   $   72,796
- OTC Contracts                      1,181,261          2.21%          4,656,072      537,456
Energy                                 381,100          0.71%            950,800       64,940
Grains                                  98,467          0.18%            274,215       13,000
Interest rates U.S.                    132,200          0.25%          1,278,438       96,975
Interest rates Non-U.S                 676,353          1.27%          2,545,790      418,013
Metals
- Exchange Traded Contracts             47,100          0.09%            248,000       43,500
- OTC Contracts                         98,850          0.19%            328,375       50,825
Softs                                   54,500          0.10%            184,500       22,600
Livestock                                3,112          0.01%             50,440        2,320
Indices                                263,090          0.49%          1,065,066       24,520
                                 -------------    -----------
Total                               $3,008,829          5.63%
                                 =============    ===========
</TABLE>


                                       27
<PAGE>

     As of  December  31,  2000,  the  Partnership's  total  capitalization  was
$60,030,519. December 31, 2000

<TABLE>
<CAPTION>

                                                                          Year to Date
                                          % of Total            High            Low
Market Sector                   Value at Risk   Capitalization     Value at Risk  Value at Risk
-----------------------------------------------------------------------------------------------
<S>                                      <C>              <C>                <C>          <C>
Currencies
- Exchange Traded Contracts        $  285,253            0.47%        $1,124,041   $  150,110
- OTC Contracts                       502,070            0.84%         1,664,379      502,070
Energy                                739,200            1.23%         1,456,600      240,000
Grains                                219,530            0.37%           386,550       22,100
Interest rates U.S.                   677,900            1.13%         1,400,289      152,800
Interest rates Non-U.S              2,498,304            4.16%         3,502,840      861,314
Metals (Exchange Traded and
 OTC Contracts)                       228,175            0.38%           946,825      143,475
Softs                                  22,600            0.04%           259,150       22,600
Livestock                              15,120            0.02%            35,700          700
Indices                               671,389            1.12%         2,341,542      448,309
                              ---------------     ------------
Total                              $5,859,541            9.76%
                              ===============     ============
</TABLE>


                                       28
<PAGE>


Material Limitations on Value at Risk as an Assessment of Market Risk
     The face value of the market sector  instruments held by the Partnership is
typically  many times the  applicable  maintenance  margin  requirement  (margin
requirements  generally range between 2% and 15% of contract face value) as well
as many  times the  capitalization  of the  Partnership.  The  magnitude  of the
Partnership's  open  positions  creates a "risk of ruin" not typically  found in
most other investment  vehicles.  Because of the size of its positions,  certain
market  conditions - unusual,  but  historically  recurring  from time to time -
could cause the  Partnership to incur severe losses over a short period of time.
The  foregoing  Value  at Risk  table - as well as the past  performance  of the
Partnership - give no indication of this "risk of ruin."
Non-Trading Risk
     The Partnership  has  non-trading  market risk on its foreign cash balances
not needed for margin.  However, these balances (as well as any market risk they
represent) are immaterial.
     Materiality  as  used  in  this  section,   "Qualitative  and  Quantitative
Disclosures About Market Risk," is based on an assessment of reasonably possible
market movements and the potential losses caused by such movements,  taking into
account the leverage,  optionality and multiplier  features of the Partnership's
market sensitive instruments.


                                       29
<PAGE>

Qualitative Disclosures Regarding Primary Trading Risk Exposures
     The following  qualitative  disclosures  regarding the Partnership's market
risk  exposures - except  for (i)  those  disclosures  that are  statements  of
historical fact and (ii) the  descriptions  of how the  Partnership  manages its
primary market risk exposures - constitute forward-looking statements within the
meaning of Section 27A of the  Securities  Act and Section 21E of the Securities
Exchange Act. The  Partnership's  primary  market risk  exposures as well as the
strategies  used and to be used by the  General  Partner  and the  Advisors  for
managing such exposures are subject to numerous uncertainties, contingencies and
risks, any one of which could cause the actual results of the Partnership's risk
controls to differ materially from the objectives of such strategies. Government
interventions,  defaults and expropriations,  illiquid markets, the emergence of
dominant fundamental factors,  political upheavals,  changes in historical price
relationships,  an influx of new market  participants,  increased regulation and
many  other  factors  could  result in  material  losses as well as in  material
changes to the risk exposures and the management  strategies of the Partnership.
There can be no assurance that the Partnership's  current market exposure and/or
risk  management  strategies  will  not  change  materially  or  that  any  such
strategies will be effective in either the short- or long- term.  Investors must
be  prepared  to  lose  all or  substantially  all of  their  investment  in the
Partnership.
     The following were the primary trading risk exposures of the Partnership as


                                       30
<PAGE>

of December 31, 2001, by market sector:
     Interest  Rates.  Interest rate movements  directly affect the price of the
futures  positions held by the Partnership and indirectly the value of its stock
index and currency positions.  Interest rate movements in one country as well as
relative  interest  rate  movements  between  countries  materially  impact  the
Partnership's profitability. The Partnership's primary interest rate exposure is
to interest rate  fluctuations in the United States and the other G-7 countries.
However,  the Partnership also takes futures positions on the government debt of
smaller  nations - e.g.,  Australia.  The General Partner  anticipates  that G-7
interest rates will remain the primary market  exposure of the  Partnership  for
the foreseeable future.
     Currencies.  The  Partnership's  currency  exposure  is  to  exchange  rate
fluctuations,  primarily  fluctuations  which  disrupt  the  historical  pricing
relationships   between   different   currencies  and  currency   pairs.   These
fluctuations  are  influenced  by interest rate changes as well as political and
general economic  conditions.  The Partnership's  major exposures have typically
been in the  dollar/yen,  dollar/Swiss  franc and  dollar/pound  positions.  The
General Partner does not anticipate  that the risk profile of the  Partnership's
currency sector will change  significantly  in the future.  The currency trading
Value at Risk figure includes foreign margin amounts converted into U.S. dollars
with an incremental adjustment to reflect the exchange rate risk inherent to the
dollar-based  Partnership in expressing  Value at Risk in a functional  currency


                                       31
<PAGE>

other than dollars.
     Stock Indices. The Partnership's primary equity exposure is to equity price
risk in the G-7 countries. The stock index futures traded by the Partnership are
by law limited to futures on broadly based indices. As of December 31, 2001, the
Partnership's  primary  exposures were in the LIFFE  (England),  Nikkei (Japan),
EUREX (German) and S&P stock indices.  The  Partnership is primarily  exposed to
the risk of adverse price trends or static  markets in the major U.S.,  European
and Japanese  indices.  (Static markets would not cause major market changes but
would make it difficult  for the  Partnership  to avoid being  "whipsawed"  into
numerous small losses.)
     Metals. The Partnership's  primary metal market exposure is to fluctuations
in the price of gold and silver.  Although  the  Advisor  will from time to time
trade base  metals  such as  aluminum,  copper  and tin,  the  principal  market
exposures of the Partnership have consistently been in the precious metals, gold
and silver. The General Partner anticipates that gold and silver will remain the
primary metals market exposure for the Partnership.
Qualitative Disclosures Regarding Non-Trading Risk Exposure
     The following were the only  non-trading  risk exposures of the Partnership
as of December 31, 2001.
     Foreign  Currency  Balances.  The  Partnership's  primary foreign  currency
balances are in Japanese yen, Euro dollar, British pounds and Australian dollar.
The  Advisor  regularly  converts  foreign  currency  balances  to dollars in an


                                       32
<PAGE>

attempt to control the Partnership's non-trading risk.
Qualitative Disclosures Regarding Means of Managing Risk Exposure
     The General Partner monitors and controls the  Partnership's  risk exposure
on a daily  basis  through  financial,  credit  and risk  management  monitoring
systems and accordingly believes that it has effective procedures for evaluating
and limiting the credit and market risks to which the Partnership is subject.
     The  General  Partner  monitors  the  Partnership's   performance  and  the
concentration of its open positions,  and consults with the Advisors  concerning
the Partnership's overall risk profile. If the General Partner felt it necessary
to do so, the General Partner could require the Advisors to close out individual
positions  as  well  as  enter  certain   positions  traded  on  behalf  of  the
Partnership. However, any such intervention would be a highly unusual event. The
General  Partner  primarily  relies on the Advisors'  own risk control  policies
while maintaining a general  supervisory  overview of the  Partnership's  market
risk exposures.
     Each Advisor applies its own risk management  policies to its trading.  The
Advisors often follow  diversification  guidelines,  margin limits and stop loss
points to exit a  position.  The  Advisors'  research of risk  management  often
suggests ongoing modifications to its trading programs.
     As part of the General  Partner's  risk  management,  the  General  Partner
periodically  meets with the Advisors to discuss  their risk  management  and to
look for any material  changes to the  Advisors'  portfolio  balance and trading
techniques.  The  Advisors  are  required to notify the  General  Partner of any
material changes to its programs.

                                       33
<PAGE>

Item 8. Financial Statements and Supplementary Data.

            SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.
                          INDEX TO FINANCIAL STATEMENTS


                                                                      Page
                                                                     Number

                        Oath or Affirmation                            F-2

                        Report of Independent Accountants.             F-3

                        Financial Statements:
                        Statement of Financial Condition at
                        December 31, 2001 and 2000.                    F-4

                        Condensed Schedule of Investments at
                        December 31, 2001                              F-5

                        Statement of Income and Expenses for
                        the years ended December 31, 2001 and
                        2000 and for the period from February 2,
                        1999 (commencement of trading operations)
                        to December 31, 1999.                          F-6

                        Statement of Partners' Capital for the
                        years ended December 31, 2001 and 2000
                        and for the period from June 15, 1998
                        (date Partnership was organized) to
                        December 31, 1999.                             F-7

                        Notes to Financial Statements.               F-8 -F-11


                                       F-1


<PAGE>





                           To The Limited Partners of
            Salomon Smith Barney Global Diversified Futures Fund L.P.

     To the best of the knowledge and belief of the undersigned, the information
contained herein is accurate and complete.






By:  Daniel R. McAuliffe, Jr.
     Chief Financial Officer and Director
     Smith Barney Futures Management LLC
     General Partner, Salomon Smith Barney
     Global Diversified Futures Fund L.P.

Smith Barney Futures Management LLC
388 Greenwich Street
7th Floor
New York, N.Y. 10013
212-723-5424







                                        F-2

<PAGE>


                                     Report of Independent Accountants

To the Partners of
   Salomon Smith Barney Global Diversified Futures Fund L.P.:

     In  our  opinion,  the  accompanying   statement  of  financial  condition,
including the condensed  schedule of investments,  and the related statements of
income and expenses and of partners'  capital  present  fairly,  in all material
respects,  the financial  position of Salomon  Smith Barney  Global  Diversified
Futures  Fund  L.P.  at  December  31,  2001  and 2000  and the  results  of its
operations  for the years ended  December  31, 2001 and 2000 and the period from
June 15,  1998 (date  Partnership  was  organized)  to  December  31,  1999,  in
conformity with accounting principles generally accepted in the United States of
America.  These financial statements are the responsibility of the management of
the  General  Partner;  our  responsibility  is to  express  an opinion on these
financial  statements  based on our  audits.  We  conducted  our audits of these
financial statements in accordance with auditing standards generally accepted in
the United  States of America,  which require that we plan and perform the audit
to obtain reasonable  assurance about whether the financial  statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and  disclosures in the financial  statements,  assessing
the accounting  principles used and significant estimates made by the management
of  the  General  Partner,   and  evaluating  the  overall  financial  statement
presentation.  We believe  that our audits  provide a  reasonable  basis for our
opinion.

PricewaterhouseCoopers LLP
New York, New York
February 28, 2002



                                        F-3
<PAGE>



                              Salomon Smith Barney
                      Global Diversified Futures Fund L.P.
                        Statement of Financial Condition
                           December 31, 2001 and 2000


<TABLE>
<CAPTION>
                                                         2001          2000
                                                   -----------   -----------
<S>                                                        <C>           <C>
Assets:
Equity in commodity futures trading account:
   Cash (Note 3c)                                  $53,304,715   $57,456,373
   Net unrealized appreciation on open positions     1,018,420     4,014,095
                                                   -----------   -----------
                                                    54,323,135    61,470,468
Interest receivable                                     62,378       235,412
                                                   -----------   -----------
                                                   $54,385,513   $61,705,880
                                                   -----------   -----------
Liabilities and Partners' Capital:
Liabilities:
  Accrued expenses:
   Commissions                                     $   249,428   $   282,116
   Management fees                                      91,845       104,534
   Incentive fees                                      203,932       596,159
   Professional fees                                    54,039        55,635
   Other                                                12,025         4,134
 Due SSB (Note 6)                                         --          65,004
 Redemptions payable (Note 5)                          370,309       567,779
                                                   -----------   -----------
                                                       981,578     1,675,361
                                                   -----------   -----------
Partners' capital (Notes 1, 5 and 7):
  General Partner, 1,067.4488 Unit equivalents
   outstanding in 2001 and 2000                      1,123,202     1,078,678
  Limited Partners, 49,685.5808 and 58,338.0480
   Units of Limited Partnership Interest
   outstanding in 2001 and 2000, respectively       52,280,733    58,951,841
                                                   -----------   -----------
                                                    53,403,935    60,030,519
                                                   -----------   -----------
                                                   $54,385,513   $61,705,880
                                                   -----------   -----------

</TABLE>

  See notes to financial statements.

                                        F-4
<PAGE>

                             Salomon Smith Barney
                      Global Diversified Futures Fund L.P.
                        Condensed Schedule of Investments
                                December 31, 2001
<TABLE>
<CAPTION>
Sector                                Contract                                       Fair Value
-----------                           -----------                                   -----------
<S>                                         <C>                                             <C>
Currencies                            Exchange traded purchased - 0.08%           $      43,336
                                      Exchange traded contracts sold - 0.11%             58,200
                                                                                       --------
                                        Total Exchange traded contracts - 0.19%         101,536
                                                                                       --------
                                      Over the counter contracts purchased- 1.42%       760,465
                                      Over the counter contracts sold - 0.28%           147,088
                                                                                       --------
                                        Total Over the counter - 1.70%                  907,553
                                                                                       --------
  Total Currencies - 1.89%                                                            1,009,089
                                                                                       --------
Energy
                                      Futures contracts purchased - 0.00%       *           780
                                      Futures contracts sold - (0.09)%                  (50,752)
                                                                                       ---------
  Total Energy - (0.09)%                                                                (49,972)
                                                                                       ---------
Grains
                                      Futures contracts purchased - (0.01)%              (3,712)
                                      Futures contracts sold - 0.14%                     74,614
                                                                                       ---------
  Total Grains - 0.13%                                                                   70,902
                                                                                       ---------
Interest Rates Non-U.S
                                      Futures contracts purchased- (0.12)%              (64,972)
                                      Futures contracts sold - 0.12%                     62,970
                                                                                       ---------
  Total Interest Rates Non-U.S. - 0.00%                                                  (2,002)
                                                                                       ---------
Interest Rates U.S.
                                      Futures contracts purchased- 0.09%                 47,044
                                      Futures contracts sold - 0.02%                     14,726
                                                                                        -------
  Total Interest Rates U.S. - 0.11%                                                      61,770
                                                                                        -------
Livestock
                                      Futures contracts purchased- (0.00)%      *          (350)
                                      Futures contracts sold - 0.00% *                   (1,840)
                                                                                        --------
  Total Livestock- 0.00% *                                                               (2,190)
                                                                                        --------
Metals
                                      Futures contracts purchased- (0.07)%              (40,003)
                                      Futures contracts sold - (0.17)%                  (88,562)
                                                                                        --------
  Total Metals - (0.24)%                                                               (128,565)
                                                                                        --------
Softs
                                      Futures contracts purchased- 0.05%                 31,670
                                      Futures contracts sold- (0.01)%                    (7,629)
                                                                                        --------
  Total Softs - 0.04%                                                                    24,041
                                                                                        --------
Indices
                                      Futures contracts purchased- 0.06%                 29,992
                                      Futures contracts sold- 0.01%                       5,355
                                                                                        -------
  Total Indices - 0.07%                                                                  35,347
                                                                                        -------
Total Fair Value - 1.91%                                                            $ 1,018,420
                                                                                    ===========
</TABLE>
                                                             % of Investments at
Country Composition        Investments at Fair Value                 Fair Value
                                   -----------------           -----------------
Australia                                   (21,872)                    (2.15)%
Canada                                       39,947                      3.92%
France                                       (4,395)                    (0.43)%
Germany                                      72,053                      7.07%
Hong Kong                                       724                      0.07%
Japan                                       (63,666)                    (6.25)%
Sweden                                          (45)                    (0.00)%
United Kingdom                             (166,823)                   (16.38)%
United States                             1,162,497                    114.15%
                                    ---------------             ----------------
                                         $1,018,420                    100.00%
                                   ================             ================
     Percentages are based on Partners' capital unless otherwise indicated
* Due to rounding

See notes to financial statements.
                                        F-5

<PAGE>


                              Salomon Smith Barney
                      Global Diversified Futures Fund L.P.
                        Statement of Income and Expenses
                   for the years ended December 31, 2001 and 2000
                    and for the period from February 2, 1999
                      (commencement of trading operations)
                              to December 31, 1999

<TABLE>
<CAPTION>
                                                              2001           2000           1999
                                                       -----------    -----------    -----------
<S>                                                           <C>            <C>            <C>
 Income:
  Net gain (loss) on trading of commodity interests:
   Realized gains (losses) on closed positions         $ 8,321,777    $ 3,740,830    $(3,607,794)
   Change in unrealized gains (losses) on
    open positions                                      (2,995,675)       857,257      3,156,838
                                                       -----------    -----------    -----------
                                                         5,326,102      4,598,087       (450,956)
   Less, Brokerage commissions including clearing
    fees of $106,521, $101,456 and $87,226 in
    2001, 2000 and 1999, respectively (Note 3c)         (3,312,436)    (4,029,150)    (3,196,873)
                                                       -----------    -----------    -----------
  Net realized and unrealized gains (losses)             2,013,666        568,937     (3,647,829)
  Interest income (Note 3c)                              1,580,323      3,075,979      2,047,606
                                                       -----------    -----------    -----------
                                                         3,593,989      3,644,916     (1,600,223)
                                                       -----------    -----------    -----------
Expenses:
  Management fees (Note 3b)                              1,134,883      1,380,183      1,119,609
  Incentive fees (Note 3b)                                 203,932        534,071        213,409
  Professional fees                                         43,228         52,350        235,716
  Other expenses                                            26,204         17,308         83,901
                                                       -----------    -----------    -----------
                                                         1,408,247      1,983,912      1,652,635
                                                       -----------    -----------    -----------
Net income (loss)                                      $ 2,185,742    $ 1,661,004    $(3,252,858)
                                                       -----------    -----------    -----------

Net income (loss) per Unit of Limited Partnership
  Interest and General Partner Unit equivalent
  (Notes 1 and 7)                                      $     41.71    $     54.65    $    (39.44)
                                                       -----------    -----------    -----------
</TABLE>

    See notes to financial statements.

                                        F-6
<PAGE>

                            Salomon Smith Barney
                      Global Diversified Futures Fund L.P.
                         Statement of Partners' Capital
                   for the years ended December 31, 2001 and 2000
                      and for the period from June 15, 1998
                        (date Partnership was organized)
                              to December 31, 1999


<TABLE>
<CAPTION>
                                                        Limited         General
                                                        Partners        Partner         Total
                                                     -----------   -------------    -----------
<S>                                                         <C>             <C>             <C>
Initial capital contributions                       $      1,000    $      1,000    $      2,000
Proceeds from offering of 33,379 Units of Limited
   Partnership Interest and General Partner's
   contribution representing 337 Unit equivalents
   (Note 1)                                           33,379,000         337,000      33,716,000
Offering and organization costs (Note 6)                (693,000)         (7,000)       (700,000)
                                                    ------------    ------------    ------------
Opening Partnership capital for operations            32,687,000         331,000      33,018,000
Net loss                                              (3,219,625)        (33,233)     (3,252,858)
Sale of 60,121.0615 Units of Limited Partnership
   Interest and General Partner's contribution
   representing 603.9704 Unit equivalents             59,480,000         598,000      60,078,000
Redemption of 2,862.0307 Units of Limited
   Partnership Interest                               (2,754,634)           --        (2,754,634)
                                                    ------------    ------------    ------------
Partners' capital at December 31, 1999                86,192,741         895,767      87,088,508
Net income                                             1,598,093          62,911       1,661,004
Sale of 6,266.1056 Units of Limited Partnership
  Interest and General Partner's contribution
  representing 125.4784 Unit equivalents               5,931,000         120,000       6,051,000
Redemption of 38,567.0884 Units of Limited
  Partnership Interest                               (34,769,993)           --       (34,769,993)
                                                    ------------    ------------    ------------
Partners' capital at December 31, 2000                58,951,841       1,078,678      60,030,519
Net income                                             2,141,218          44,524       2,185,742
Redemption of 8,652.4672 Units of Limited
   Partnership Interest                               (8,812,326)           --        (8,812,326)
                                                    ------------    ------------    ------------
Partners' capital at December 31, 2001              $ 52,280,733    $  1,123,202    $ 53,403,935
                                                    ------------    ------------    ------------
</TABLE>

See notes to financial statements.


                                        F-7
<PAGE>

                              Salomon Smith Barney
                      Global Diversified Futures Fund L.P.
                          Notes to Financial Statements


1.  Partnership Organization:

     Salomon   Smith  Barney   Global   Diversified   Futures  Fund  L.P.   (the
"Partnership") is a limited partnership organized under the laws of the State of
New York,  on June 15, 1998 to engage in  speculative  trading of a  diversified
portfolio of  commodity  interests,  including  futures  contracts,  options and
forwards.  The  commodity  interests  that are  traded  by the  Partnership  are
volatile and involve a high degree of market risk.

     Between  November  25,  1998  (commencement  of the  offering  period)  and
February 1, 1999, 33,379 Units of Limited  Partnership  Interest  ("Units") were
sold at $1,000 per Unit.  The proceeds of the initial  offering  were held in an
escrow  account  until  February 2, 1999, at which time they were turned over to
the  Partnership  for trading.  The  Partnership  was authorized to sell 100,000
Units of Limited Partnership Interest ("Units") during its offering period which
ended November 25, 2000.

     Smith  Barney  Futures  Management  LLC acts as the  general  partner  (the
"General  Partner") of the Partnership.  The  Partnership's  commodity broker is
Salomon Smith Barney Inc.  ("SSB").  SSB is an affiliate of the General Partner.
The  General  Partner is wholly  owned by Salomon  Smith  Barney  Holdings  Inc.
("SSBHI"), which is the sole owner of SSB. SSBHI is a wholly owned subsidiary of
Citigroup Inc.

     The  General  Partner  and each  limited  partner  share in the profits and
losses of the  Partnership in proportion to the amount of  partnership  interest
owned by each except that no limited  partner shall be liable for obligations of
the Partnership in excess of his initial capital  contribution  and profits,  if
any, net of distributions.

     The  Partnership  will  be  liquidated  upon  the  first  to  occur  of the
following:  December 31, 2018;  the net asset value of a Unit  decreases to less
than  $400  as  of  a  close  of  any  business  day;  or  under  certain  other
circumstances as defined in the Limited Partnership Agreement.

2.  Accounting Policies:

     a. All commodity interests (including  derivative financial instruments and
derivative commodity  instruments) are used for trading purposes.  The commodity
interests  are  recorded on trade date and open  contracts  are  recorded in the
statement of financial  condition at fair value on the last  business day of the
year,  which  represents  market value for those  commodity  interests for which
market  quotations are readily  available.  Investments  in commodity  interests
denominated  in  foreign  currencies  are  translated  into U.S.  dollars at the
exchange rates  prevailing on the last business day of the year.  Realized gains
(losses) and changes in  unrealized  values on commodity  interests  and foreign
currencies  are  recognized in the period in which the contract is closed or the
changes  occur and are  included in net gains  (losses) on trading of  commodity
interests.

     b. The partnership  may purchase and write (sell)  options.  An option is a
contract allowing,  but not requiring,  its holder to buy (call) or sell (put) a
specific or standard  commodity or  financial  instrument  at a specified  price
during a specified  time period.  The option  premium is the total price paid or
received for the option  contract.  When the fund writes an option,  the premium
received is recorded as a liability in the statement of financial  condition and
marked to market daily.  When the fund purchases an option,  the premium paid is
recorded  as an asset in the  statement  of  financial  condition  and marked to
market daily.

     c.  Income  taxes have not been  provided as each  partner is  individually
liable  for the  taxes,  if any,  on his share of the  Partnership's  income and
expenses.

     d. The  preparation  of financial  statements in conformity  with generally
accepted  accounting  principles  in  the  United  States  of  America  requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial  statements and the reported
amounts of revenues and expenses  during the reporting  period.  Actual  results
could differ from these estimates.

3.  Agreements:

     a. Limited  Partnership  Agreement:  The General  Partner  administers  the
business and affairs of the Partnership including selecting one or more advisors
to make trading decisions for the Partnership.

    b. Management Agreement:

     The General  Partner,  on behalf of the  Partnership,  has  entered  into a
Management Agreement with Campbell & Company, Inc. ("Campbell"),  Aspect Capital


                                        F-8
<PAGE>

Limited  ("Aspect"),  Eckhardt  Trading  Company  ("Eckhardt")  and Rabar Market
Research, Inc. ("Rabar")  (collectively,  the "Advisors"),  registered commodity
trading  advisors.  The Advisors are not  affiliated  with one another,  are not
affiliated  with the  General  Partner  or SSB and are not  responsible  for the
organization  or operation of the  Partnership.  The  Partnership  will pay each
Advisor a monthly management fee equal to 1/6 of 1% (2% a year) of month-end Net
Assets allocated to the Advisor, except for Aspect, which will receive a monthly
management  fee equal to 1/12 of 1.25%  (1.25% a year) of  month-end  Net Assets
allocated to the Advisor. In addition,  the Partnership is obligated to pay each
Advisor  an  incentive  fee  payable  annually  equal to 20% of the New  Trading
Profits, as defined in the Management Agreements, earned by each Advisor for the
Partnership.  Eagle Trading  Systems,  Inc. was  terminated as an Advisor to the
Partnership on March 1, 2001. Aspect Capital  Management Limited was added as an
Advisor to the  Partnership on May 16, 2001.  Effective  December 31, 2001 Rabar
Market Research, Inc. was terminated as an Advisor to the Partnership.

    c. Customer Agreement:

     The Partnership  has entered into a Customer  Agreement which provides that
the Partnership  will pay SSB a monthly  brokerage fee equal to 9/20 of 1% (5.4%
per year) of month-end  Net Assets,  in lieu of brokerage  commissions  on a per
trade  basis.  For the period  from  February 2, 1999  (commencement  of trading
operations) to July 31, 1999, the Partnership paid SSB brokerage  commissions at
$54 per round turn for  transactions  entered into by  Campbell.  SSB will pay a
portion of brokerage  fees to its financial  consultants  who have sold Units in
this  Partnership.  Brokerage fees will be paid for the life of the Partnership,
although  the rate at which such fees are paid may be changed.  The  Partnership
will pay for National  Futures  Association  ("NFA") fees,  exchange,  clearing,
user,  give-up and floor  brokerage  fees. All of the  Partnership's  assets are
deposited  in the  Partnership's  account  at  SSB.  The  Partnership's  cash is
deposited by SSB in segregated bank accounts to the extent required by Commodity
Futures  Trading  Commission  regulations.  At December  31, 2001 and 2000,  the
amount of cash held for  margin  requirements  was  $3,406,754  and  $6,632,240,
respectively.  SSB will pay the Partnership interest on 80% of the average daily
equity  maintained  in cash in its  account  during  each month at a 30-day U.S.
Treasury bill rate determined weekly by SSB based on the average  noncompetitive
yield on 3-month U.S.  Treasury bills maturing in 30 days from the date on which
such weekly rate is determined.  The Customer  Agreement between the Partnership
and SSB  gives  the  Partnership  the legal  right to net  unrealized  gains and
losses. The Customer Agreement may be terminated upon notice by either party.

4.  Trading Activities:

     The  Partnership  was formed for the  purpose  of  trading  contracts  in a
variety of commodity interests,  including derivative financial  instruments and
derivative  commodity  interests.  The  results  of  the  Partnership's  trading
activity are shown in the statement of income and expenses.

     All of the  commodity  interests  owned  by the  Partnership  are  held for
trading  purposes.  The average fair value  during the years ended  December 31,
2001 and 2000,  based on a monthly  calculation,  was $2,303,242 and $2,261,410,
respectively.  The fair value of these commodity  interests,  including  options
thereon,  if  applicable,  at December  31, 2001 and 2000,  was  $1,018,420  and
$4,014,095, respectively.



                                                       Fair Value
                                                      December 31,
                                                           2000
                                                        ---------
        Currencies:
            -Exchange Traded Contracts                   $402,730
            -OTC Contracts                                (58,165)
        Energy                                            231,736
        Grains                                             12,073
        Interest Rates U.S.                             1,818,863
        Interest Rates Non-U.S.                         1,883,836
        Livestock                                         (13,400)
        Metals:
            -Exchange Traded Contracts                     (2,645)
            -OTC Contracts                               (389,611)
        Softs                                              24,344
        Indices                                           104,334
                                                     ------------
        Total                                          $4,014,095
                                                     ------------
                                        F-9
<PAGE>
5.  Distributions and Redemptions:

     Distributions  of profits,  if any, will be made at the sole  discretion of
the  General  Partner  and at such  times as the  General  Partner  may  decide.
Beginning  with the first  full month  ending at least  three  months  after the
commencement of trading, a limited partner may require the Partnership to redeem
his Units at their Redemption value per unit as of the last day of a month on 10
days notice to the General Partner. For the purpose of a redemption, any accrued
liability  for  reimbursement  of offering  and  organization  expenses  for the
Initial  Offering Period will not reduce  Redemption value per Unit. There is no
fee charged to limited partners in connection with redemptions.

6.  Offering and Organization Costs:

     Offering and organization  expenses of approximately  $700,000  relating to
the issuance and marketing of the  Partnership's  Units  offered were  initially
paid by SSB. The Partnership  has reimbursed SSB for all such expenses  incurred
during the initial  offering  and  continuous  offering  period  (together  with
interest at the prime rate quoted by JPMorgan Chase & Co.).

     For the periods  ended  December 31, 2001 and 2000,  $40,661 and  $362,024,
respectively, of these costs have been reimbursed to SSB, by the Partnership. In
addition,  the  Partnership has recorded  interest  expense of $161 and $19,111,
respectively,  for the years ended  December 31, 2001 and 2000 which is included
in other expenses.

 7.   Financial Highlights:
     Changes in the net asset  value per Unit of  Partnership  interest  for the
years ended  December  31, 2001,  2000 and for the period from  February 2, 1999
(commencement of trading operations) to December 31, 1999 were as follows:

<TABLE>
<CAPTION>
                                                         2001     2000         1999
                                                   -----------  -------     -------
<S>                                                       <C>     <C>          <C>
Net realized and unrealized gains (losses)      $      39.09 $   40.86 $    (43.11)
Interest income                                        28.35     43.07       32.26
Expenses                                              (25.73)   (29.28)     (28.59)
                                                      ------    -------      ------
Increase (decrease) for period                         41.71     54.65      (39.44)
Net asset value per Unit, beginning of period       1,010.52    950.95    1,000.00
Offering and organization cost adjustment                 --        --      (20.76)
Redemption/subscription value per Unit
 versus net asset value per Unit                          --      4.92       11.15
                                                      ------  --------      ------
Net asset value per Unit, end of period         $   1,052.23 $1,010.52 $    950.95
                                                      ------  --------      ------
Redemption/subscription value per Unit,
 end of period*                                 $   1,052.23 $1,011.21 $    956.34
                                                      ------  --------      ------
</TABLE>

 Ratios to Average Net Assets :
 Net income before incentive fee                         4.3%
 Incentive fee                                          (0.4)%
                                                    ---------
 Net income after incentive fee                          3.9%
                                                    ---------
 Operating expenses                                      8.0%
 Incentive fee                                           0.4%
                                                    ---------
 Total expenses and incentive fee                        8.4%
                                                    ---------
 Total return:
 Total return before incentive fee                       4.5%
 Incentive fee                                          (0.4)%
                                                    ---------
 Total return after incentive fee                        4.1%
                                                    ---------

     *For the purpose of a redemption/subscription,  any remaining liability for
reimbursement   of  offering   and   organization   expenses   will  not  reduce
redemption/subscription value per unit.

                                        F-10
<PAGE>

8.  Financial Instrument Risks:

     The Partnership is party to financial  instruments with  off-balance  sheet
risk,  including  derivative  financial  instruments  and  derivative  commodity
instruments,  in the normal course of its business.  These financial instruments
may  include  forwards,  futures  and  options,  whose  value is  based  upon an
underlying  asset,  index,  or reference  rate, and generally  represent  future
commitments to exchange  currencies or cash flows,  or to purchase or sell other
financial  instruments at specific terms at specified  future dates,  or, in the
case of derivative commodity instruments, to have a reasonable possibility to be
settled in cash, through physical delivery or with another financial instrument.
These  instruments  may be traded on an  exchange or  over-the-counter  ("OTC").
Exchange  traded  instruments are  standardized  and include futures and certain
option contracts.  OTC contracts are negotiated between  contracting parties and
include forwards and certain options.

     Each of these  instruments  is subject to  various  risks  similar to those
related to the  underlying  financial  instruments  including  market and credit
risk. In general, the risks associated with OTC contracts are greater than those
associated  with  exchange  traded  instruments  because of the greater  risk of
default by the counterparty to an OTC contract.

     Market  risk is the  potential  for  changes in the value of the  financial
instruments traded by the Partnership due to market changes,  including interest
and foreign  exchange rate movements and  fluctuations  in commodity or security
prices.  Market risk is directly impacted by the volatility and liquidity in the
markets in which the related underlying assets are traded.

     Credit risk is the possibility  that a loss may occur due to the failure of
a counterparty to perform according to the terms of a contract. Credit risk with
respect to exchange traded instruments is reduced to the extent that an exchange
or  clearing  organization  acts  as a  counterparty  to the  transactions.  The
Partnership's  risk of loss in the event of  counterparty  default is  typically
limited to the amounts  recognized in the  statement of financial  condition and
not  represented  by the contract or notional  amounts of the  instruments.  The
Partnership has credit risk and concentration risk because the sole counterparty
or broker with respect to the Partnership's assets is SSB.

     The General Partner monitors and controls the  Partnership's  risk exposure
on a daily  basis  through  financial,  credit  and risk  management  monitoring
systems,   and  accordingly  believes  that  it  has  effective  procedures  for
evaluating and limiting the credit and market risks to which the  Partnership is
subject.  These  monitoring  systems allow the General Partner to  statistically
analyze actual  trading  results with risk adjusted  performance  indicators and
correlation statistics. In addition,  on-line monitoring systems provide account
analysis  of  futures,   forwards  and  options  positions  by  sector,   margin
requirements, gain and loss transactions and collateral positions.

   The  notional  or   contractual   amounts  of  these   instruments,   while
appropriately  not recorded in the financial  statements,  reflect the extent of
the  Partnership's  involvement  in these  instruments.  The  majority  of these
instruments  mature  within one year of December 31, 2001.  However,  due to the
nature  of the  Partnership's  business,  these  instruments  may not be held to
maturity.

9.  Subsequent Events:

     On January 31, 2002,  there were  additional  redemptions of 261.4338 Units
totaling $272,725.


                                        F-11

<PAGE>


Item 9.  Changes  in  and  Disagreements  with  Accountants  on  Accounting  and
     Financial  Disclosure.
     During  the  last  fiscal  year  and  any  subsequent  interim  period,  no
independent  accountant who was engaged as the principal accountant to audit the
Partnership's financial statements has resigned or was dismissed.
                                    PART III
Item 10. Directors and Executive Officers of the Registrant.
     The Partnership has no officers or directors and its affairs are managed by
its General Partner,  Smith Barney Futures Management LLC. Investment  decisions
are made by the Advisors.
Item 11. Executive Compensation.
     The  Partnership  has no directors or officers.  Its affairs are managed by
Smith Barney Futures  Management LLC, its General Partner.  SSB, an affiliate of
the General  Partner,  is the commodity  broker for the Partnership and receives
brokerage  commissions for such services, as described under "Item 1. Business."
Brokerage commissions and clearing fees of $3,312,436 were earned by SSB for the
year ended December 31, 2001.  Management  fees and incentive fees of $1,134,883
and  $203,932,  respectively,  were  earned by the  Advisors  for the year ended
December 31, 2001.


                                       34
<PAGE>

Item 12. Security Ownership of Certain Beneficial Owners and Management.

     (a). Security ownership of certain beneficial owners. The Partnership knows
of no person who beneficially owns more than 5% of the Units outstanding.

     (b).  Security  ownership  of  management.  Under the terms of the  Limited
Partnership  Agreement,  the  Partnership's  affairs  are managed by the General
Partner.  The  General  Partner  owns  Units  of  general  partnership  interest
equivalent  to  1,067.4488  (2.1%) Units of Limited  Partnership  Interest as of
December 31, 2001.

     (c). Changes in control. None.

Item 13. Certain Relationship and Related Transactions.

     Salomon Smith Barney Inc. and Smith Barney Futures  Management LLC would be
considered  promoters for purposes of item 404 (d) of Regulation S-K. The nature
and the amounts of compensation  each promoter will receive from the Partnership
are set forth  under  "Item 1.  Business",  "Item 8.  Financial  Statements  and
Supplementary Data."and "Item 11. Executive Compensation."

                                     PART IV

Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.

     (a) (1) Financial Statements:

     Statement of Financial Condition at December 31, 2001 and 2000.

     Statement of Income and Expenses for the years ended  December 31, 2001 and
     2000  and the  period  from  February  2,  1999  (commencement  of  trading
     operations) to December 31, 1999.

     Statement  of Partners'  Capital for the years ended  December 31, 2001 and
     2000 and for the period from June 15, 1998 (date  Partnership was organized
     to December 31, 1999.


                                       35
<PAGE>

(2)  Financial Statement Schedules: Financial Data
     Schedule for the year ended December 31, 2001.
(3)  Exhibits:
     3.1  -  Limited  Partnership   Agreement  (filed  as  Exhibit  3.1  to  the
Registration  Statement on Form S-1 (File No. 333-61961 and incorporated  herein
by reference).
     3.2 - Certificate of Limited Partnership of the Partnership as filed in the
office  of the  Secretary  of  State of the  State of New York on June 15,  1998
(filed  as  Exhibit  3.2 to the  Registration  Statement  on Form S-1  (File No.
333-61961) and incorporated herein by reference).
     10.1- Customer  Agreement  between the Partnership and Salomon Smith Barney
(filed  as  Exhibit  10.1 to the  Registration  Statement  on Form S-1 (File No.
333-61961) and incorporated herein by reference).
     10.3- Escrow  Instructions  relating to escrow of subscription funds (filed
as Exhibit 10.3 to the Registration  Statement on Form S-1 (File No.  333-61961)
and incorporated herein by reference).


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<PAGE>

     10.5- Management  Agreement among the Partnership,  the General Partner and
Campbell & Company, Inc. (filed as Exhibit 10.5 to the Registration Statement on
Form S-1 (File No. 333-61961) and incorporated herein by reference).
     10.6- Management  Agreement among the Partnership,  the General Partner and
Eagle Trading Systems, Inc. (filed as Exhibit 10.6 to the Registration Statement
on Form S-1 (File No. 333-61961) and incorporated herein by reference).
     10.7- Management  Agreement among the Partnership,  the General Partner and
Eckhardt Trading Company (filed as Exhibit 10.7 to the Registration Statement on
Form S-1 (File No. 333-61961) and incorporated herein by reference).
     10.8- Management  Agreement among the Partnership,  the General Partner and
Rabar Market  Research (filed as Exhibit 10.8 to the  Registration  Statement on
Form S-1 (File No. 333-61961) and incorporated herein by reference).
     10.9- Letter extending Management Agreements with Campbell & Company, Inc.,
Eagle Trading Systems,  Inc., Eckhardt Trading Company and Rabar Market Research
for 1999 (previously filed).


                                       37
<PAGE>

     10.10-  Letter  extending  Management  Agreements  with Campbell & Company,
Inc.,  Eagle Trading  Systems,  Inc.,  Eckhardt Trading Company and Rabar Market
Research for 2000 (previously filed).
     10.11-  Letter  extending  Management  Agreements  with Campbell & Company,
Inc.,  Eckhardt Trading  Company,  Aspect Capital  Management  Limited and Rabar
Market Research Inc. for 2001 (filed herein).
     10.12- Management Agreement among the Partnership,  the General Partner and
Aspect Capital Management Limited (filed herein).
     10.13- Letters from the General Partner  terminating  Management  Agreement
with Eagle Trading Systems, Inc. and Rabar Market Research Inc. (filed herein).
(b)  Reports on 8-K: None Filed.


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<PAGE>


                                   SIGNATURES

     Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities
Exchange Act of 1934,  the Registrant has duly caused this annual report on Form
10-K to be signed on its behalf by the  undersigned,  thereunto duly authorized,
in the City of New York and State of New York on the 29th day of March 2002.


SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.


By:      Smith Barney Futures Management LLC
         (General Partner)



By       /s/  David J. Vogel
         David J. Vogel, President & Director


     Pursuant to the  requirements of the Securities  Exchange Act of 1934, this
annual report on Form 10-K has been signed below by the following persons in the
capacities and on the date indicated.


/s/ David J. Vogel                                            /s/ Shelley Ullman
David J. Vogel                                                         Director
Director, Principal Executive
Officer and President



/s/ Maureen O'Toole                                           /s/ Steve J. Keltz
Maureen O'Toole                                           Secretary and Director
Director



/s/ Daniel R. McAuliffe, Jr.
Daniel R. McAuliffe, Jr.
Chief Financial Officer and
Director


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