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, 2002

Commission File Number 000-32599


             SALOMON SMITH BARNEY DIVERSIFIED 2000 FUTURES FUND L.P.
             (Exact name of registrant as specified in its charter)


          New York                                13-4077759
(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
              (Address and Zip Code of principal executive offices)

                                 (212) 723-5424
              (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]

Indicated  by check mark  whether the  registrant  is an  accelerated  filer (as
defined in Rule 12b-2 of the Acts).

                                            Yes       No   X
                                                ----      ----

Limited   Partnership  Units  with  an  aggregate  value  of  $105,950,788  were
outstanding  and  held by  non-affiliates  as of the  last  business  day of the
registrants most recently completed second fiscal quarter.

As of February 28, 2003, 165,412.0476 Limited Partnership Units were
outstanding.

                       DOCUMENTS INCORPORATED BY REFERENCE
                                      None

<PAGE>


                                     PART I

Item 1. Business.

     (a) General development of business.  Salomon Smith Barney Diversified 2000
Futures Fund L.P. (the "Partnership") is a limited  partnership  organized under
the  partnership  laws of the State of New York, on August 25, 1999 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
total of  190,000  Units of  Limited  Partnership  Interest  in the  Partnership
("Units") have been offered to the public.

     A  Registration  Statement on Form S-1  relating to the public  offering of
150,000  Units became  effective on January 31, 2000.  Between  January 31, 2000
(commencement  of offering  period) and May 30, 2000,  16,045 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 $162,000 to
the Partnership's trading account on June 1, 2000 when the Partnership commenced
trading.

     Sales of additional Units and additional general partner  contributions and
redemptions  of Units for the years ended December 31, 2002 and 2001 and for the
period from August 25, 1999 (date  Partnership  was  organized)  to December 31,
2000, are reported in the Statement of Partners' Capital on page F-9 under "Item
8. Financial Statements and Supplementary Data".


                                       2
<PAGE>

     A second Registration Statement on Form S-1 relating to the public offering
of  190,000  Units  (including  the  150,000  Units  that  had  previously  been
registered) became effective on November 25, 2002. As of that date, 151,719.9547
Units had been sold.

     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%
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, 2019;  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, 2002, all commodity  trading  decisions are made for the
Partnership  by  Beacon  Management  Corporation   ("Beacon"),   Graham  Capital

                                       3
<PAGE>

Management,  L.P. ("Graham"),  Campbell & Company,  Inc. ("Campbell") and Aspect
Capital Limited ("Aspect") (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. Aspect Capital
Limited was added as an Advisor to the Partnership on January 3, 2002.

     Pursuant  to  the  terms  of the  Management  Agreements  (the  "Management
Agreements"),  the  Partnership  is  obligated  to pay each  Advisor  a  monthly
management  fee  equal  to 1/6 of 1% (2%  per  year)  of  month-end  Net  Assets
allocated to each Advisor as of the end of each month, 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.  The Partnership is obligated to
pay 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.

     The  Partnership  has  entered  into a  Customer  Agreement  with  SSB (the
"Customer Agreement") which provides that the Partnership pays 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.
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

                                       4
<PAGE>

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.  The Customer  Agreement  may be  terminated by
either party.

     (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 from  operations for the years ended December 31, 2002
and  2001  and  for the  period  from  June 1,  2000  (commencement  of  trading
operations)  to December 31, 2000, is set forth under "Item 6. Select  Financial
Data". Partnership's capital as of December 31, 2002, was $156,859,683.

          (c) Narrative description of business.

          See Paragraphs (a) and (b) above.

          (i) 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. ("SSBHI") 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
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


                                       6
<PAGE>

to various claims and regulatory  inquiries.  Proceedings  deemed to be material
for  purposes  of  Commodity  Futures  Trading  Commission  ("CFTC")  disclosure
requirements are:

     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  alleged,
among other things,  that the brokerage  firms  recommended  and sold unsuitable
securities to Orange County. SSB and the remaining  brokerage firms settled with
Orange County in mid 1999. SSB paid $1,333,333 to settle this matter.

     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  Internal  Revenue
Service  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 its lawsuit.

     In November 1998, a class action  complaint was filed in the U.S.  District
Court for the Middle  District  of Florida  (Dwight  Brock as Clerk for  Collier

                                       7
<PAGE>

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.  In
November  1999,  SSB moved to dismiss the amended  complaint.  In May 2001,  the
parties reached and the court preliminarily approved a tentative settlement. SSB
paid  $1,063,457 to settle this matter and in September 2001, the court approved
the settlement.

     In  connection  with the  Louisiana  and Florida  matters,  the IRS and SEC
conducted 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.  Thereafter,
the plaintiffs filed voluntary discontinuances.

     In December  1998,  SSB was one of 28 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  allegations,  agreed to an order which
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 SEC
Rules  15c1-2,  15c2-7  and  17a-3  thereunder,   (ii)  pay  penalties  totaling

                                       8
<PAGE>

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.).  The complaint  included  allegations  that, while acting as
prime broker for the hedge fund,  SSB breached its  contracts  with  plaintiffs,
misused their monies and engaged in tortious  conduct,  including  breaching its
fiduciary  duties.  SSB asked the court to dismiss  the  complaint  in full.  In
October  1999,  the court  dismissed  the tort claims,  including  the breach of
fiduciary  duty claims.  The court 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 plaintiff's motion
to strike out 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.  In August 2002, SSB
filed a motion for summary judgment.

     In April 2002,  numerous class action complaints were filed against Salomon
Smith  Barney  and other  investment  banks in the U.S.  District  Court for the
Southern District of New York alleging  violations of certain federal securities
laws  (including  Section 11 of the  Securities Act of 1933 and Section 10(b) of


                                       9
<PAGE>

the  Securities  Exchange Act of 1934) with respect to the  allocation of shares
for certain initial public  offerings and related  aftermarket  transactions and
damage to investors  caused by allegedly  biased research  analyst  reports.  On
February 19, 2003, the court issued an opinion denying the defendants' motion to
dismiss. Also pending in the Southern District of New York against SSB and other
investment banks are several alleged class actions which have been  consolidated
into a single  class action  alleging  violations  of certain  federal and state
antitrust  laws in connection  with the  allocation of shares in initial  public
offerings  underwritten  by such parties.  The  defendants in these actions have
moved to dismiss the  consolidated  amended  complaint but the court has not yet
rendered a decision on those motions.

     In April 2002,  Citigroup  and, in one case,  SSB were named as  defendants
along with, among others,  commercial and/or  investment banks,  certain current
and former Enron officers and directors,  lawyers and accountants in two alleged
consolidated  class action complaints that were filed in the U.S. District Court
for the Southern  District of Texas  seeking  unspecified  damages.  One action,
brought on behalf of individuals who purchased Enron securities  (Newby,  et al.
v.  Enron  Corp.,  et al.),  alleges  violations  of  Sections  11 and 15 of the


                                       10
<PAGE>

Securities Act of 1933 and Sections  10(b) and 20(a) of the Securities  Exchange
Act of 1934 and the other action,  brought on behalf of current and former Enron
employees  (Tittle,  et al. v. Enron Corp., et al.), alleges violations of ERISA
and RICO, as well as negligence and civil conspiracy.  On May 8, 2002, Citigroup
and SSB filed  motions to dismiss the  complaints.  On December  19,  2002,  the
motions to dismiss the Newby  complaint  were denied.  The motion to dismiss the
complaint in Tittle remains pending.

     Since April 2002,  SSB and  several  other  broker  dealers  have  received
subpoenas  and/or  requests  for  information  from  various   governmental  and
self-regulatory agencies and Congressional  committees,  including the NASD Inc.
which has raised  issues about SSB's  internal  e-mail  retention  practices and
research  on Winstar  Communications,  Inc.  With  respect to  Winstar,  SSB has
entered into a settlement  agreement.  SSB agreed to pay a penalty in the amount
of $5 million and did not admit to any  wrongdoing.  With  respect to other such
matters,  on December 20, 2002,  Citigroup and a number of other  broker/dealers
reached a  settlement-in-principle  with the SEC,  the NASD  Inc.,  the New York
Stock  Exchange (the "NYSE") and the Attorney  General of New York of all issues
raised   in  their   research,   initial   public   offerings   allocation   and
spinning-related  inquiries.  In addition,  with respect to issues raised by the
NASD,  the NYSE and the SEC  about  SSB's  and  other  firms'  e-mail  retention
practices,  SSB and several other  broker/dealers and the NASD, the NYSE and the
SEC entered into a settlement  agreement in December  2002.  SSB agreed to pay a
penalty in the amount of $1.65  million and did not admit to any  allegation  of
wrongdoing.

     Since May 2002, Citigroup,  SSB and certain principals,  executive officers
and current and former  employees  have been named as  defendants in a number of

                                       11
<PAGE>

alleged  class  action  complaints  filed in the  U.S.  District  Court  for the
Southern District of New York by purchasers of various securities  alleging they
violated federal  securities law, including Sections 10 and 20 of the Securities
Exchange Act of 1934 by issuing  research  reports without  reasonable basis and
failing  to  disclose   conflicts  of  interest  in  connection  with  published
investment research,  including Global Crossing,  WorldCom, Inc., AT&T, Winstar,
Rhythm Net Connections,  Level 3  Communications,  MetroMedia Fiber Network,  XO
Communications  and  Williams  Communications  Group  Inc.  Nearly  all of these
actions are pending  before a single  judge in the U.S.  District  Court for the
Southern  District  of New York  for  coordinated  proceedings.  The  court  has
consolidated  these actions into nine separate  categories  corresponding to the
companies named above.

     Additional  actions have been filed  against  Citigroup  and certain of its
affiliates,  including  SSB, and certain of their current and former  directors,
officers and employees, along with other parties,  including: (1) three putative
class actions filed in state courts and federal  courts on behalf of persons who
maintained accounts with SSB asserting,  among other things,  common law claims,
claims under state  statutes,  and claims under the  Investment  Advisers Act of
1940,  for  allegedly  failing  to provide  objective  and  unbiased  investment
research and investment management,  seeking, among other things, return of fees
and  commissions;  (2)  approximately  fifteen  actions filed in different state
courts by  individuals  asserting,  among  other  claims,  common law claims and


                                       12
<PAGE>

claims under state  securities  laws,  for allegedly  issuing  research  reports
without  a  reasonable  basis  in fact and for  allegedly  failing  to  disclose
conflicts of interest with  companies in connection  with  published  investment
research,  including Global Crossing and WorldCom,  Inc.; (3) approximately five
actions  filed in different  state  courts by pension and other funds  asserting
common law claims and  statutory  claims under,  among other  things,  state and
federal  securities  laws,  for allegedly  issuing  research  reports  without a
reasonable  basis in fact and for  allegedly  failing to disclose  conflicts  of
interest  with  companies in  connection  with  published  investment  research,
including WorldCom,  Inc. and Qwest  Communications  International Inc.; and (4)
more than two hundred  arbitrations  asserting  common law claims and  statutory
claims  under,  among other  things,  state and  federal  securities  laws,  for
allegedly  issuing  research  reports without a reasonable basis in fact and for
allegedly failing to disclose conflicts of interest with companies in connection
with published investment research.

     In July 2002,  Citigroup,  SSB and various of its affiliates and certain of
their officers and other employees were named as defendants,  along with,  among
others,  commercial and/or  investment  banks,  certain current and former Enron
officers and directors, lawyers and accountants in an alleged class action filed
in the U.S.  District  Court for the Southern  District of New York on behalf of
purchasers  of the Yosemite  Notes and Enron  Credit-Linked  Notes,  among other
securities (Hudson Soft Co., Ltd v. Credit Suisse First Boston  Corporation,  et


                                       13
<PAGE>

al.). The complaint  alleges  violations of RICO and of Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934 and seeks unspecified damages.

     Additional  actions have been filed  against  Citigroup  and certain of its
affiliates, including SSB, along with other parties, including (i) three actions
brought in state courts by state pension  plans for alleged  violations of state
securities  law and common law fraud and  unjust  enrichment;  (ii) an action by
banks that  participated  in two Enron  revolving  credit  facilities,  alleging
fraud,  gross  negligence  and  breach  of  implied  duties in  connection  with
defendants'  administration  of a credit  facility  with Enron;  (iii) an action
brought by several funds in connection with secondary  market purchases of Enron
Corp. debt securities  alleging  violations of federal securities law, including
Section  11  of  the   Securities   Act  of  1933,  and  claims  for  fraud  and
misrepresentation;  (iv) a series of  alleged  class  actions by  purchasers  of
NewPower  Holdings common stock alleging  violations of federal  securities law,
including  Section 11 of the  Securities  Act of 1933 and  Section  10(b) of the
Securities  Exchange Act of 1934; (v) an action brought by two investment  funds
in connection with purchases of Enron-related  securities for alleged violations
of state securities and unfair competition  statutes;  (vi) an action brought by
several  investment  funds and fund owners in connection with purchases of notes
of the Osprey I and Osprey II Trusts for alleged  violation of state and federal
securities  laws  and  claims  for  common  law  fraud,   misrepresentation  and
conspiracy;  (vii) an action brought by several investment funds and fund owners

                                       14
<PAGE>

in connection  with  purchases of notes of the Osprey I and Osprey II Trusts for
alleged  violation  of  state  and  federal  securities  laws and  state  unfair
competition laws and claims for common law fraud and  misrepresentation;  (viii)
an action  brought by the Attorney  General of  Connecticut  in connection  with
various  commercial and investment  banking services  provided to Enron;  (ix) a
putative  class action  brought by clients of SSB in  connection  with  research
reports  concerning Enron,  alleging breach of contract;  (x) actions brought by
several  investment  funds in  connection  with  the  purchase  of notes  and/or
certificates of the Osprey Trusts, the Marlin Trust, and the Marlin Water trust,
as well as the  purchase of other Enron or  Enron-related  securities,  alleging
violation of state and federal  securities laws, and common law civil conspiracy
and fraud;  (xi) an action brought by a retirement  and health  benefits plan in
connection  with the  purchase of certain  Enron  notes,  alleging  violation of
federal  securities law,  including Section 11 of the Securities Act of 1933, as
amended,  violations of state securities and unfair  competition law, and common
law fraud and  breach of  fiduciary  duty;  and (xii) an action  brought  by two
broker/dealers  in  connection  with the  purchase  of certain  notes,  alleging
violation of federal and state securities laws. Several of these cases have been
consolidated  with the Newby action and stayed  pending the Court's  decision on
the pending motions of certain defendants to dismiss Newby.

     Additionally,  Citigroup and certain of its affiliates, including SSB, have

                                       15
<PAGE>

provided   substantial   information  to,  and  have  entered  into  substantive
discussions  with, the Securities and Exchange  Commission  regarding certain of
their  transactions with Enron and a transaction with Dynegy Inc.  Citigroup and
certain of its  affiliates,  including  SSB,  also have  received  subpoenas and
requests for information from various other regulatory and governmental agencies
and Congressional  committees, as well as from the Special Examiner in the Enron
bankruptcy, regarding certain transactions and business relationships with Enron
and  its  affiliates.   Citigroup  and  such  affiliates,   including  SSB,  are
cooperating fully with all such requests.

     Citigroup  and SSB are involved in a number of lawsuits  arising out of the
underwriting  of debt  securities  of  WorldCom,  Inc.  These  lawsuits  include
putative class actions filed in July 2002 by alleged purchasers of WorldCom debt
securities in the United States District Court for the Southern  District of New
York (Above  Paradise  Investments  Ltd. V.  Worldcom,  Inc., et al.;  Municipal
Police Employees Retirement System Of Louisiana V. Worldcom,  Inc., et al.), and
in the United States  District  Court for the Southern  District of  Mississippi
(Longacre  Master Fund V. Worldcom,  Inc., et al.).  These putative class action
complaints assert violations of federal  securities law,  including  Sections 11
and 12 of the Securities Act of 1933, as amended,  and seek unspecified  damages
from the underwriters.

     On October 11, 2002,  the Above  Paradise and  Municipal  Police  Employees
lawsuits filed in the United States District Court for the Southern  District of


                                       16
<PAGE>

New York were  superseded by the filing of a consolidated  putative class action
complaint in the United States  District Court for the Southern  District of New
York  (In  Re  Worldcom,  Inc.  Securities  Litigation).   In  the  consolidated
complaint,  in addition to the claims of violations by the  underwriters  of the
federal  securities law,  including  Sections 11 and 12 of the Securities Act of
1933,  as amended,  the  plaintiffs  allege  violations  of Section 10(b) of the
Securities  Exchange  Act of  1934,  as  amended,  and  Rule  10b-5  promulgated
thereunder,  by SSB arising out of alleged conflicts of interest of SSB and Jack
Grubman.  The plaintiffs continue to seek unspecified  compensatory  damages. In
addition to the consolidated  class action  complaint,  the Southern District of
Mississippi  class  action  has  been  transferred  by  the  Judicial  Panel  on
MultiDistrict  Litigation to the Southern  District of New York for  centralized
pre-trial proceedings with other WorldCom-related actions.

     In addition to the several putative class actions that have been commenced,
certain  individual  actions have been filed in various federal and state courts
against  Citigroup and SSB, along with other parties,  concerning  WorldCom debt
securities  including individual state court actions brought by approximately 18
pension  funds  and  other  institutional   investors  in  connection  with  the
underwriting of debt securities of WorldCom alleging violations of Section 11 of
the Securities Act of 1933, as amended,  and, in one case, violations of various
state  securities  laws and common law fraud.  Most of these  actions  have been


                                       17
<PAGE>

removed to federal court and have been  transferred to the Southern  District of
New York for  centralized  pre-trial  proceedings  with  other  WorldCom-related
actions.

     A putative  class action on behalf of  participants  in  WorldCom's  401(k)
salary savings plan and those  WorldCom  benefit plans covered by ERISA alleging
violations of ERISA and common law fraud  (Emanuele V. Worldcom,  Inc., Et Al.),
which was  commenced  in the United  States  District  Court for the District of
Columbia,  also has been  transferred  by the  Judicial  Panel on  MultiDistrict
Litigation  to the  Southern  District  of New  York for  centralized  pre-trial
proceedings with other  WorldCom-related  actions.  In December 2002, the claims
against SSB and the other underwriters were dismissed without prejudice.

     On or about January 27, 2003,  lead  plaintiff in a  consolidated  putative
class action in the United States  District Court for the District of New Jersey
(In Re  AT&T  Corporation  Securities  Litgation)  sought  leave  to  amend  its
complaint on behalf of purchasers of AT&T common stock asserting claims against,
among others, AT&T Corporation,  to add as named defendants  Citigroup,  SSB and
certain executive  officers and current and former  employees,  asserting claims
under federal  securities laws for allegedly  issuing research reports without a
reasonable  basis in fact and for  allegedly  failing to disclose  conflicts  of
interest with AT&T in connection with published investment research.

     On or about January 28, 2003,  lead  plaintiff in a  consolidated  putative
class action in the United States  District  Court for the Southern  District of


                                       18
<PAGE>

New  York  (In  Re  Global  Crossing,   Ltd.  Securities   Litigation)  filed  a
consolidated  complaint  on behalf of  purchasers  of the  securities  of Global
Crossing  and  its  subsidiaries,  which  names  as  defendants,  among  others,
Citigroup,  SSB and certain executive officers and current and former employees,
asserting  claims under federal  securities laws for allegedly  issuing research
reports without a reasonable basis in fact and for allegedly failing to disclose
conflicts  of  interest  with  Global  Crossing  in  connection  with  published
investment research.

     SSBHI  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 SSBHI'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  SSBHI'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 SSBHI 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 fiscal year covered by this
report.


                                       19
<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, 2002, was 5,769.

          (c)  Distribution.  The  Partnership did not declare a distribution in
               2002 and 2001.

          (d)  Use of Proceeds.  For the period ended  December 31, 2002,  there
               were additional sales of 75,434.1122  Units totaling  $78,728,000
               and contributions by the General Partner representing  1,311.3712
               Units  equivalents  totaling  $1,383,000.  For the  period  ended
               December 31, 2001,  there were  additional  sales of  45,419.4548
               Units  totaling  $47,856,000  and  contributions  by the  General
               Partner   representing   401.8626  Units   equivalents   totaling
               $425,000.  For the period ended  December  31,  2000,  there were
               additional  sales of 12,846.3864  Units totaling  $12,563,000 and
               contributions by the General Partner  representing  128.9152 Unit
               equivalents   totaling  $126,000.   Proceeds  from  the  sale  of
               additional  Units are used in the trading of commodity  interests
               including futures contracts, options and forward contracts.


                                       20
<PAGE>

Item 6. Selected Financial Data. The Partnership commenced trading operations on
June 1, 2000. Realized and unrealized trading gains, interest income, net income
and  increase in Net Asset Value per Unit for the years ended  December 31, 2002
and  2001  and  for the  period  from  June 1,  2000  (commencement  of  trading
operations)  to December 31, 2000,  and total assets at December 31, 2002,  2001
and 2000 were as follows:

<TABLE>
<CAPTION>
<S>                                       <C>              <C>                <C>
                                         2002             2001               2000

Realized and unrealized trading
 gains (losses) net of brokerage
 commissions and clearing fees
 of $7,000,104, $3,132,288 and
 $803,045, respectively            $  22,692,993    $  (1,626,277)   $   2,637,312


Interest income                        1,445,439        1,330,414          633,253

                                   $  24,138,432    $    (295,863)   $   3,270,565

Net income (loss)                  $  17,290,120    $  (1,932,112)   $   2,246,017


Increase (decrease) in Net
 Asset Value per Unit              $      136.60    $      (20.54)   $       42.22

Total assets                       $ 164,043,716    $  71,587,137    $  31,557,418

</TABLE>

                                       21
<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


                                       22
<PAGE>

"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.

     (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
Partner monitors and controls the  Partnership's  risk exposure on a daily basis


                                       23
<PAGE>

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, 2019; (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.


                                       24
<PAGE>

     (b) Capital resources. (i) The Partnership has made no material commitments
for capital expenditures.

     (ii) The Partnership's capital consists of the capital contributions of the
partners as  increased  or  decreased  by gains or losses on  commodity  futures
trading,   and  by  expenses,   interest   income,   redemptions  of  Units  and
distributions of profits,  if any. Gains or losses on commodity  futures 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.  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 each
month,  ending at least three months  after such Units have been issued,  on ten
days'  written  notice  to the  General  Partner.  No fee  will be  charged  for
redemptions.  For the year  ended  December  31,  2002,  9,611.6513  Units  were
redeemed totaling $10,413,271.  For the year ended December 31, 2001, 6,286.5438



                                       25
<PAGE>

Units were redeemed totaling  $6,549,851.  For the year ended December 31, 2000,
329.7094 Units were redeemed totaling  $321,220.  Redemption/subscription  value
per Unit  differs  from  net  asset  value  per Unit  calculated  for  financial
reporting purposes in that the remaining 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  $750,000,  relating to
the issuance and marketing of the  Partnership's  Units  offered were  initially
paid by SSB. These costs were  reimbursed to SSB by the  Partnership in 24 equal
monthly  installments  (together  with  interest  at the  prime  rate  quoted by
JPMorgan Chase & Co.).

     As of December  31, 2002,  2001 and 2000,  $ -0-,  $360,403 and $193,011 of
these costs have been reimbursed to SSB, by the Partnership.

     In  addition,  the  Partnership  has recorded  interest  expense of $3,846,
$35,691 and $37,267,  for the periods  ended  December 31, 2002,  2001 and 2000,
which is included in other expenses.

     The Partnership continues to offer Units at the Net Asset Value per Unit as
of the end of each  month.  For the year ended  December  31,  2002,  there were
additional sales of 75,434.1122 Units totaling  $78,728,000 and contributions by
the  General  Partner   representing   1,311.3712  Unit   equivalents   totaling
$1,383,000. For the year ended December 31, 2001, there were additional sales of
45,419.4548 Units totaling  $47,856,000 and contributions by the General Partner
representing  401.8626 Unit equivalents  totaling  $425,000.  For the year ended

                                       26
<PAGE>

December 31, 2000,  there were  additional  sales of 12,846.3864  Units totaling
$12,563,000 and contributions by the General Partner representing  329.7094 Unit
equivalents totaling $126,000.

     (c) Results of Operations.

     For the  year  ended  December  31,  2002,  the Net  Asset  Value  per Unit
increased  13.3% from  $1,021.68 to $1,157.44.  For the year ended  December 31,
2001,  the Net Asset Value per Unit  decreased 2.0% from $1,042.22 to $1,021.68.
For the  period  from June 1,  2000  (commencement  of  trading  operations)  to
December 31, 2000,  the Net Asset Value per Unit  increased  4.2% from $1,000 to
$1,042.22.

     The  Partnership  experienced  net  trading  gains  of  $29,693,097  before
commissions  and  expenses in 2002.  Gains were  primarily  attributable  to the
trading of currencies,  grains,  livestock,  indices, U.S. and non-U.S. interest
rates and were  partially  offset  by losses  recognized  in  energy,  softs and
metals.

     The  Partnership   experienced  net  trading  gains  of  $1,506,111  before
commissions  and  expenses in 2001.  Gains were  primarily  attributable  to the
trading of  currencies,  U.S.  and  non-U.S.  interest  rates and softs and were
partially offset by losses recognized in indices, metals, energy and grains.

     The  Partnership   experienced  net  trading  gains  of  $3,440,357  before
commissions  and  expenses in 2000.  Gains were  primarily  attributable  to the
trading of currencies,  energy  products,  grains,  softs,  livestock,  U.S. and
non-U.S.  interest  rates  and  metals  and  were  partially  offset  by  losses
recognized in indices.


                                       27
<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  Advisors 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 Advisors are 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


                                       28
<PAGE>

to increased  risks with respect to its trading  activities  in emerging  market
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
unit holder, creditors, and regulators, is free of material errors.



                                       29
<PAGE>

     (e) Critical Accounting Policies

     The General Partner believes that the accounting policies that will be most
critical to the  Partnership's  financial  condition  and results of  operations
relate to the  valuation  of the  Partnership's  positions.  The majority of the
Partnership's positions will be exchange-traded futures contracts, which will be
valued daily at settlement prices published by the exchanges. If applicable, the
Partnership's spot and forward foreign currency contracts will also be valued at
published daily  settlement  prices or at dealers'  quotes.  The General Partner
expects that under normal  circumstances  substantially all of the Partnership's
assets will be valued by objective measures and without difficulty.


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
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


                                       30
<PAGE>

price  levels,  the market value of financial  instruments  and  contracts,  the
diversification  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
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 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


                                       31
<PAGE>

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
Advisors is quantified below in terms of Value at Risk. Due to the Partnership'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
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.


                                       32
<PAGE>

     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  op  tionality  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   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.


                                       33
<PAGE>

The  diversification  effects  resulting  from the fact  that the  Partnership's
positions  are  rarely,  if  ever,  100%  positively  correlated  have  not been
reflected.



                                       34
<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, 2002 and the
highest and lowest value at any point during the year. All open position trading
risk exposures of the Partnership  have been included in calculating the figures
set forth below. As of December 31, 2002, the Partnership's total capitalization
was $156,859,683.

                                December 31, 2002

<TABLE>
<CAPTION>
<S>                                   <C>               <C>            <C>           <C>
                                                                         Year  to Date
                                                  % of Total          High          Low
Market Sector                   Value at Risk   Capitalization   Value at Risk  Value at Risk

Currencies
- Exchange Traded Contracts      $ 3,900,846         2.49%       $3,900,846      $639,666
- OTC Contracts                    1,049,136         0.66%        2,589,079       223,831
Energy                             5,166,600         3.29%        5,166,600       151,980
Grains                             1,395,841         0.89%        1,698,919       381,848
Interest rates U.S.                1,976,100         1.26%        1,976,100       291,600
Interest rates Non-U.S.            4,241,341         2.70%        4,241,341       363,460
Livestock                            622,100         0.40%          765,000        97,040
Metals
 - Exchange Traded Contracts       1,375,000         0.88%        1,831,000       259,000
 - OTC Contracts                     186,600         0.12%        1,149,425        14,700
Softs                              1,264,850         0.81%        2,180,900       397,428
Indices                            1,629,232         1.04%        5,162,052       563,553
                                 -----------        ------
Total                            $22,807,646        14.54%
                                  ----------        -----
</TABLE>



                                       35
<PAGE>

As of December 31, 2001, the Partnership's total capitalization was $69,871,834.


                                December 31, 2001

<TABLE>
<CAPTION>
<S>                                   <C>               <C>            <C>           <C>
                                                                         Year  to Date
                                                  % of Total          High          Low
Market Sector                   Value at Risk   Capitalization   Value at Risk  Value at Risk

Currencies
- Exchange Traded Contracts      $1,565,102          2.24%        $1,565,102    $412,424
- OTC Contracts                     254,643          0.36%         3,153,404      27,500
Energy                            1,637,600          2.35%         1,898,100     112,330
Grains                              526,850          0.76%           666,050      71,425
Interest rates U.S.                 275,500          0.39%         1,350,700     272,500
Interest rates Non-U.S.             362,399          0.52%         2,496,981     361,261
Livestock                           188,800          0.27%           353,800      45,730
Metals
 - Exchange Traded Contracts        327,000          0.47%         1,022,000     308,800
 - OTC Contracts                     86,200          0.12%           518,475      29,600
Softs                               596,240          0.85%           880,007     198,800
Indices                           1,258,274          1.80%         2,276,237     759,993
                                  ---------         -----
Total                            $7,078,608         10.13%
                                  ---------         ------
</TABLE>

                                       36
<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.

                                       37
<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
of December 31, 2002, by market sector.




                                       38
<PAGE>

     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 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 other than dollars.



                                       39
<PAGE>

     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
limited to futures on broadly  based  indices.  As of  December  31,  2002,  the
Partnership's primary exposures were in the Financial Times (England) and Nikkei
(Japan) stock indices.  The General Partner  anticipates little, if any, trading
in non-G-7 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 avoidbeing  "whipsawed"  into numerous  small
losses.)

     Metals. The Partnership's  primary metal market exposure is to fluctuations
in the price of gold and silver. Although certain of the Advisors will from time
to time trade base metals such as aluminum  and  copper,  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.

     Softs. The Partnership's  primary  commodities  exposure is to agricultural
price  movements  which  are often  directly  affected  by severe or  unexpected
weather conditions. Corn, cotton, sugar, soybeans, soybean meal, soybean oil and
wheat accounted for the substantial bulk of the Partnership's commodity exposure
as of December 31, 2002.

     Energy. The Partnership's  primary energy market exposure is to gas and oil


                                       40
<PAGE>

price movements, often resulting from political developments in the Middle East.
Oil prices can be volatile and substantial  profits and losses have been and are
expected to continue to be experienced in this market.

Qualitative Disclosures Regarding Non-Trading Risk Exposure

     The following were the only  non-trading  risk exposures of the Partnership
as of December 31, 2002.

     Foreign  Currency  Balances.  The  Partnership's  primary foreign  currency
balances  are in  Japanese  yen,  Euro  dollar and Swiss  francs.  The  Advisors
regularly  convert foreign currency balances to dollars in an 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


                                       41
<PAGE>

while maintaining a general  supervisory  overview of the  Partnership's  market
risk exposures.

     The Advisors apply their 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 their 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 their programs.

                                       42
<PAGE>

Item 8.   Financial Statements and Supplementary Data.




             SALOMON SMITH BARNEY DIVERSIFIED 2000 FUTURES FUND L.P.
                          INDEX TO FINANCIAL STATEMENTS


                                                              Page
                                                             Number

      Oath or Affirmation.                                     F-2

      Reports of Independent Accountants.                   F-3 - F-4

      Financial Statements:
      Statements of Financial Condition at
      December 31, 2002 and 2001.                              F-5

      Condensed Schedules of Investments at
      December 31, 2002 and 2001.                           F-6 - F-7

      Statements of Income and Expenses for
      the years ended December 31, 2002,
      2001 and the period from June 1, 2000
      (commencement of trading operations)
      to December 31, 2000.                                    F-8

      Statements of Partners' Capital for
      the years ended December 31, 2002,
      2001 and the period from August 25,
      1999 (date Partnership was organized)
      to December 31, 2000.                                    F-9

      Notes to Financial Statements.                       F-10 - F-13

      Selected unaudited quarterly financial
      data.                                                    F-14






                                       F-1

<PAGE>
                 To The Limited Partners of Salomon Smith Barney
                       Diversified 2000 Futures Fund L.P.

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






By:  /s/Daniel R. McAuliffe, Jr.
        Daniel R. McAuliffe, Jr.
        Chief Financial Officer and Director
        Smith Barney Futures Management LLC
        General Partner, Salomon Smith Barney
        Diversified 2000 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 Auditors

To the Partners of
Salomon Smith Barney Diversified 2000 Futures Fund L.P.:

We have audited the  accompanying  statement  of financial  condition of Salomon
Smith Barney Diversified 2000 Futures Fund L.P. (the Partnership), including the
condensed  schedule of  investments,  as of December 31,  2002,  and the related
statements  of income and  expenses,  and  partners'  capital  for the year then
ended.  These financial  statements are the  responsibility of the Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audit. The financial statements of the Partnership as of
December  31, 2001 and for the year ended  December 31, 2001 and the period from
August 25, 1999 (date  Partnership  was  organized)  to  December  31, 2000 were
audited by other  auditors  whose  report dated  February 28, 2002  expressed an
unqualified opinion on those statements.

We conducted our audit in accordance with auditing standards  generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all  material   respects,   the  financial  position  of  Salomon  Smith  Barney
Diversified  2000 Futures Fund L.P. as of December 31, 2002,  and the results of
its operations and changes in its partners'  capital for the year then ended, in
conformity with accounting principles generally accepted in the United States of
America.

KPMG LLP
New York, New York
March 7, 2003

                                      F-3
<PAGE>


                        Report of Independent Accountants

To the Partners of
Salomon Smith Barney Diversified 2000 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 Diversified 2000 Futures Fund L.P. at
December 31, 2001, and the results of its operations for the year ended December
31,  2001  and for the  period  from  August  25,  1999  (date  Partnership  was
organized)  to December 31,  2000,  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-4
<PAGE>


                                               Salomon Smith Barney
                                        Diversified 2000 Futures Fund L.P.
                                         Statements of Financial Condition
                                            December 31, 2002 and 2001
<TABLE>
<CAPTION>
<S>                                                                                  <C>             <C>
                                                                                   2002              2001
Assets:
Equity in commodity futures trading account:
   Cash (restricted $29,238,934 and $9,018,787 in 2002 and 2001,
   respectively) (Note 3c)                                                      $150,305,334       $69,296,025
   Net unrealized appreciation on open positions *                                13,611,638         2,207,744
                                                                                ------------      ------------
                                                                                 163,916,972        71,503,769
Interest receivable                                                                  126,744            83,368
                                                                                ------------      ------------
                                                                                $164,043,716       $71,587,137
                                                                                -------------     ------------

Liabilities and Partners' Capital:
Liabilities:
  Accrued expenses:
   Commissions (Note 3c)                                                            $752,354          $328,163
   Management fees (Note 3b)                                                         252,030           120,908
   Incentive fees                                                                  4,026,955            58,526
   Professional fees                                                                  67,663            36,363
   Other                                                                              13,348            10,276
  Due to SSB (Note 6)                                                                     --           196,586
  Redemptions payable (Note 5)                                                     2,071,683           964,481
                                                                                -------------     ------------
                                                                                   7,184,033         1,715,303
Partners' capital (Notes 1 and 5):
  General Partner, 2,005.1490 and 693.7778 Units equivalents
   outstanding in 2002 and 2001, respectively                                      2,320,840           708,819
  Limited Partners, 133,518.0489 and 67,695.5880 Units of Limited
   Partnership Interest outstanding in 2002 and 2001, respectively               154,538,843        69,163,015
                                                                                -------------     ------------
                                                                                 156,859,683        69,871,834
                                                                                -------------     ------------
                                                                                $164,043,716       $71,587,137
                                                                               -------------      ------------
</TABLE>


* Forward contracts included in this balance are presented gross in the
  accompanying Condensed Schedule of Investments.
See accompanying notes to financial statements.
                                      F-5
<PAGE>


                              Salomon Smith Barney
                       Diversified 2000 Futures Fund L.P.
                        Condensed Schedule of Investments
                                December 31, 2002

<TABLE>
<CAPTION>
<S>                                                          <C>                                         <C>
Sector                                                      Contract                                    Fair Value
Currencies                                     Unrealized appreciation on forward contracts 0.75%        $1,171,718
                                               Unrealized depreciation on forward contracts (0.41)%        (644,931)
                                                                                                         ----------
                                                 Total forward contracts 0.34%                              526,787

                                               Futures contracts purchased  3.67%                         5,748,189
                                               Futures contracts sold  (0.72)%                           (1,127,433)
                                                                                                          ----------
                                                 Total futures contracts  2.95%                           4,620,756
                                                                                                          ----------
  Total Currencies  3.29%                                                                                 5,147,543
                                                                                                          ---------

Total Energy  0.50%                            Futures contracts purchased  0.50%                           782,390
                                                                                                           ---------
Grains                                         Futures contracts purchased  (0.05)%                         (81,565)
                                               Futures contracts sold  0.51%                                803,007
                                                                                                           ---------
  Total Grains  0.46%                                                                                       721,442
                                                                                                           ---------
Total Interest Rates U.S. 1.29%                Futures contracts purchased  1.29%                         2,025,022
                                                                                                          ---------
Interest Rates Non-U.S.                        Futures contracts purchased  2.36%                         3,705,998
                                               Futures contracts sold  (0.03)%                              (55,736)
                                                                                                           ---------
  Total Interest Rates Non-U.S. 2.33%                                                                     3,650,262
                                                                                                          ---------
Total Livestock  0.10%                         Futures contracts purchased  0.10%                           158,360
                                                                                                          ---------
Metals                                         Futures contracts purchased  0.76%                         1,200,138
                                               Futures contracts sold  0.00% *                                8,875
                                                                                                          ---------
                                                 Total futures contracts 0.76%                            1,209,013

                                               Unrealized appreciation on forward contracts 0.25%           387,383
                                               Unrealized depreciation on forward contracts (0.91)%      (1,432,393)
                                                                                                          ---------
                                                 Total forward contracts (0.66)%                         (1,045,010)
                                                                                                          ---------
  Total Metals  0.10%                                                                                       164,003
                                                                                                          ---------
Softs                                          Futures contracts purchased  0.47%                           729,663
                                               Futures contracts sold  0.00%*                                 6,165
                                                                                                           ---------
  Total Softs  0.47%                                                                                        735,828
                                                                                                           ---------
Indices                                        Futures contracts purchased  (0.10)%                        (156,350)
                                               Futures contracts sold  0.24%                                383,138
                                                                                                            ---------
  Total Indices  0.14%                                                                                      226,788
                                                                                                            ---------
Total Fair Value  8.68%                                                                                 $13,611,638
                                                                                                         -----------
</TABLE>
<TABLE>
<CAPTION>
<S>                                            <C>                        <C>
                                           Investments              % of Investments
Country Composition                       at Fair Value              at Fair Value
--------------------------           -------------------------- --------------------------
Australia                                 $   311,569                      2.29%
Canada                                        320,037                      2.35
France                                        (34,305)                    (0.25)
Germany                                     1,420,824                     10.44
Hong Kong                                      75,912                      0.56
Japan                                         322,941                      2.37
Spain                                         (10,893)                    (0.08)
United Kingdom                                485,879                      3.57
United States                              10,719,674                     78.75
                                     -------------------------- --------------------------
                                          $13,611,638                    100.00%
                                     ========================== ==========================
</TABLE>
 Percentages are based on Partners' capital unless otherwise indicated
 * Due to rounding.
 See accompanying notes to financial statements.
                                      F-6
<PAGE>


                              Salomon Smith Barney
                       Diversified 2000 Futures Fund L.P.
                        Condensed Schedule of Investments
                                December 31, 2001
<TABLE>
<CAPTION>
<S>                                                          <C>                                       <C>
Sector                                                    Contract                                   Fair Value
Currencies                                     Over the counter contracts sold  0.32%                $  225,591
                                               Over the counter contracts purchased (0.69)%            (480,533)
                                                                                                      ---------
                                                 Total Over the counter  (0.37)%                       (254,942)
                                                                                                      ----------
                                               Exchange contracts sold  2.50%                         1,749,168
                                               Exchange contracts purchased  1.28%                      891,303
                                                                                                      ---------
                                                 Total Exchange contracts  3.78%                      2,640,471
                                                                                                      ---------
  Total Currencies 3.41%                                                                              2,385,529
                                                                                                      ---------
Total Energy (0.13)%                           Futures contracts sold  (0.13)%                          (93,126)
                                                                                                       ---------
Total Grains 0.51%                             Futures contracts sold  0.51%                            354,807
                                                                                                       ---------
Interest Rates U.S.                            Futures contracts sold  0.00%*                               789
                                               Futures contracts purchased  0.09%                        63,137
                                                                                                        ---------
  Total Interest Rates U.S. 0.09%                                                                        63,926
                                                                                                        ---------
Interest Rates Non-U.S.                        Futures contracts sold  0.15%                            101,999
                                               Futures contracts purchased  (0.15)%                    (102,991)
                                                                                                        ---------
  Total Interest Rates Non-U.S. 0.00%*                                                                     (992)
                                                                                                        ---------

Total Livestock (0.27)%                        Futures contracts sold  (0.27)%                         (189,134)
                                                                                                        ---------
Metals                                         Futures contracts sold  (0.81)%                         (566,943)
                                               Futures contracts purchased  0.06%                        42,804
                                                                                                        ---------
  Total Metals (0.75)%                                                                                 (524,139)
                                                                                                       ---------
Softs                                          Futures contracts sold  0.09%                             59,560
                                               Futures contracts purchased  0.25%                       177,406
                                                                                                        ---------
  Total Softs 0.34%                                                                                     236,966
                                                                                                        ---------
Indices                                        Futures contracts sold  (0.02)%                          (15,515)
                                               Futures contracts purchased  (0.2)%                      (10,578)
                                                                                                        ---------
  Total Indices (0.04)%                                                                                 (26,093)
                                                                                                        ---------
Total Fair Value 3.16%                                                                               $2,207,744
                                                                                                      ---------
</TABLE>
<TABLE>
<CAPTION>
<S>                                             <C>                        <C>
                                           Investments              % of Investments
Country Composition                          at Value                   at Value
--------------------------           -------------------------- --------------------------
Australia                                 $    32,387                      1.47%
Canada                                        (12,660)                    (0.57)
Germany                                        60,975                      2.76
Hong Kong                                         725                      0.03
Japan                                         (72,854)                    (3.30)
France                                         17,418                      0.79
Singapore                                      25,378                      1.15
United Kingdom                               (392,924)                   (17.80)
United States                               2,549,299                    115.47
                                     -------------------------- --------------------------
                                           $2,207,744                    100.00%
                                     ========================== ==========================
</TABLE>

    Percentages are based on Partners' capital unless otherwise indicated
    * Due to rounding.
    See notes to financial statements.
                                      F-7
<PAGE>



                              Salomon Smith Barney
                       Diversified 2000 Futures Fund L.P.
                        Statements of Income and Expenses
                 for the years ended December 31, 2002 and 2001
                         and for the period June 1, 2000
                      (commencement of trading operations)
                              to December 31, 2000
<TABLE>
<CAPTION>
<S>                                                                  <C>                 <C>                 <C>
                                                                     2002               2001              2000
    Income:
    Net gains on trading of commodity interests:
    Realized gains on closed positions and foreign currencies    $18,289,203         $2,452,235          $286,389
    Net unrealized gains (losses) on open positions               11,403,894           (946,224)        3,153,968
                                                                  -----------        -----------       -----------
                                                                  29,693,097          1,506,011         3,440,357
    Interest income (Note 3c)                                      1,445,439          1,330,414           633,253
                                                                  -----------        -----------       -----------
                                                                  31,138,536          2,836,425         4,073,610
                                                                  -----------        -----------       -----------
     Expenses:
     Brokerage commissions including clearing fees
      of $338,803, $139,504 and $30,451, respectively
      (Note 3c)                                                    7,000,104          3,132,288           803,045
     Management fees (Note 3b)                                     2,147,508          1,034,107           253,873
     Incentive fees (Note 3b)                                      4,026,955             58,526            568,604
     Professional fees                                               629,075            465,609           159,004
     Other expenses                                                   44,774             78,007            43,067
                                                                  -----------        -----------       -----------
                                                                  13,848,416          4,768,537         1,827,593
                                                                  -----------        -----------       -----------
     Net income (loss)                                           $17,290,120        $(1,932,112)       $2,246,017
                                                                  -----------        -----------       -----------
     Net Income (loss) per Unit of Limited Partnership
      Interest and General Partner Unit equivalent
      (Notes 1 and 7)                                                $136.60            $(30.32)           $70.19
                                                                  -----------        -----------       -----------
</TABLE>
See accompanying notes to financial statements.
                                      F-8
<PAGE>


                              Salomon Smith Barney
                       Diversified 2000 Futures Fund L.P.
                         Statements of Partners' Capital
                 for the years ended December 31, 2002 and 2001
                       and for the period August 25, 1999
                        (date Partnership was organized)
                              to December 31, 2000

<TABLE>
<CAPTION>
<S>                                                         <C>                  <C>             <C>
                                                         Limited             General
                                                        Partners             Partner            Total
Initial capital contribution, 1 Unit of Limited
  Partnership Interest and General Partner's
  contribution representing 1 Unit equivalent                $1,000              $1,000            $2,000
Proceeds from offering of 16,045 Units of Limited
  Partnership Interest and General Partner's
  contribution representing 162 Unit equivalents
  (Note 1)                                               16,045,000             162,000        16,207,000
Offering costs (Note 6)                                    (742,500)             (7,500)         (750,000)
                                                         ------------           ---------      -----------
Opening Partnership capital for operations               15,303,500             155,500        15,459,000
Net income                                                2,223,277              22,740         2,246,017
Sale of 12,846.3864 Units of Limited Partnership
  Interest and General Partner's contribution
  representing 128.9152 Unit equivalents                 12,563,000             126,000        12,689,000
Redemption of 329.7094 Units of Limited
  Partnership Interest                                     (321,220)                 --          (321,220)
                                                         ------------           ---------      -----------
Partners' capital at December 31, 2000                   29,768,557             304,240        30,072,797
Net loss                                                 (1,911,691)            (20,421)       (1,932,112)
Sale of 45,419.4548 Units of Limited Partnership
  Interest and General Partner's contribution
  representing 401.8626 Unit equivalents                 47,856,000             425,000        48,281,000
Redemption of 6,286.5438 Units of Limited
  Partnership Interest                                   (6,549,851)                 --        (6,549,851)
                                                         ------------           ---------      -----------
Partners' capital at December 31, 2001                   69,163,015             708,819        69,871,834
Net income                                               17,061,099             229,021        17,290,120
Sale of 75,434.1122 Units of Limited Partnership
  Interest and General Partner's contribution
  representing 1,311.3712 Unit equivalents               78,728,000           1,383,000        80,111,000
Redemption of 9,611.6513 Units of Limited
  Partnership Interest                                 (10,413,271)                  --       (10,413,271)
                                                        ------------           ---------      ------------
Partners' capital at December 31, 2002                 $154,538,843          $2,320,840      $156,859,683
                                                       ------------           ---------      -------------
</TABLE>

See accompanying notes to financial statements.
                                      F-9
<PAGE>


                              Salomon Smith Barney
                       Diversified 2000 Futures Fund L.P.
                          Notes to Financial Statements

1.   Partnership Organization:

     Salomon Smith Barney Diversified 2000 Futures Fund L.P. (the "Partnership")
     is a limited  partnership which was organized under the partnership laws of
     the State of New York on  August  25,  1999 to  engage  in the  speculative
     trading of a diversified portfolio of commodity interests including futures
     contracts,  options and forward contracts. The commodity interests that are
     traded by the  Partnership are volatile and involve a high degree of market
     risk.

     Between January 31, 2000  (commencement of the offering period) and May 30,
     2000, 16,045 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 May 31, 2000, at which time they were turned over to
     the Partnership for trading. The Partnership was authorized to sell 150,000
     Units of Limited Partnership Interest ("Units") during its initial offering
     period.  As of November 25, 2002, the Partnership was authorized to sell an
     additional 40,000 units. The Partnership continues to offer Units.

     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  their  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, 2019;  the net asset value of a Unit  decreases to
     less  than  $400 per unit as of the  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  gains  (losses) on open  positions
          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.   Income taxes have not been  provided as each  partner is  individually
          liable  for the taxes,  if any,  on their  share of the  Partnership's
          income and expenses.

     c.   The preparation of financial  statements in conformity with accounting
          principles generally accepted in the United States of America requires
          management to make estimates and assumptions  that affect the reported
          amounts of assets and liabilities, disclosure of contingent 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.

     d.   Certain  prior  period  amounts have been  reclassified  to conform to
          current year presentation.

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
          Management Agreements with Beacon Management  Corporation  ("Beacon"),
          Graham Capital Management L.P.  ("Graham"),  Campbell & Company,  Inc.
          ("Campbell"), and Aspect Capital Limited ("Aspect") (collectively, the
          "Advisors"),  each of which are 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
                                      F-10
<PAGE>

          each Advisor a monthly management fee equal to 1/6 of 1% (2% per 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.
          Month-end Net Assets,  for the purpose of calculating  management fees
          are Net Assets, as defined in the Limited Partnership Agreement, prior
          to the reduction of redemptions and incentive fees.

          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.  On  January 1,  2002,  Aspect  Capital
          Limited was added 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 brokerage  fee equal to 5.4% per
          year  calculated  and  paid  monthly  based on .45% of  month-end  Net
          Assets,  in  lieu  of  brokerage  commissions  on a per  trade  basis.
          Month-end Net Assets,  for the purpose of calculating  commissions are
          Net Assets, as defined in the Limited Partnership Agreement,  prior to
          the reduction of all  liabilities of the  Partnership.  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
          fees as well as 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, 2002 and 2001,
          the amount of cash held for margin  requirements  was  $29,238,934 and
          $9,018,787,  respectively.  SSB  has  agreed  to pay  the  Partnership
          interest on 80% of the average daily equity  maintained in cash in the
          Partnership's 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  instruments.  The results of the  Partnership's
     trading activities 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,  2002 and 2001,  based on a monthly  calculation,  was  $6,431,811  and
     $3,370,732, respectively.

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.  A
     limited  partner may require the  Partnership  to redeem his Units at their
     Redemption  value per Unit as of the last day of each month ending at least
     three  months  after  their  issuance  on ten 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 Costs:

     Offering  costs of  approximately  $750,000  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 costs incurred during the
     initial and continuous offering period (together with interest at the prime
     rate quoted by JPMorgan Chase & Co.).

     For  the  years  ended  December  31,  2002  and  2001,  $0  and  $196,586,
     respectively,   of  these  costs  have  been   reimbursed  to  SSB  by  the
     Partnership.  In addition, the Partnership has recorded interest expense of
     $3,846  and  $35,691,  for the  years  ended  December  31,  2002 and 2001,
     respectively, which is included in other expenses.
                                      F-11
<PAGE>




7.  Financial Highlights:

     Changes in the net asset  value per Unit of  Partnership  interest  for the
     years ended December 31, 2002 and 2001 and for the period from June 1, 2000
     (commencement of trading operations) to December 31, 2000 were as follows:


<TABLE>
<CAPTION>
<S>                                                                         <C>               <C>                 <C>
                                                                            2002              2001                2000

    Net realized and unrealized gains (losses) *                            $185.55           $(24.12)          $83.75
    Interest income                                                           13.55             29.46            27.07
    Expenses **                                                              (62.50)           (35.66)          (40.63)
                                                                            -------           -------           -------
    Increase (decrease) for the period                                       136.60            (30.32)           70.19
    Net asset value per Unit, beginning of period                          1,021.68          1,042.22         1,000.00
    Offering cost adjustment                                                     --                --           (46.27)
    Redemption/subscription value per Unit
     versus net asset value per Unit                                          (0.84)             9.78            18.30
                                                                       ------------      ------------     -------------
    Net asset value per Unit, end of period                               $1,157.44         $1,021.68        $1,042.22
                                                                       ------------      ------------     -------------
    Redemption/subscription value per Unit,
     end of period ***                                                    $1,157.44         $1,024.07        $1,061.52
                                                                       ------------      ------------     -------------
</TABLE>

     *    Includes brokerage commissions
     **   Excludes brokerage commissions
     ***  For the purpose of a  redemption/subscription,  any remaining  accrued
          liability  for   reimbursement  of  offering  costs  will  not  reduce
          redemption/subscription net asset value per unit.

<TABLE>
<CAPTION>
<S>                                                                          <C>                 <C>
    Ratios to average net assets:
     Net investment loss before incentive fees ****                           (7.6)%            (6.9)%
     Incentive fees                                                           (3.7)%            (0.1)%
                                                                              ------             -----
     Net investment loss after incentive fees                                (11.3)%            (7.0)%
                                                                              ----               ---
     Net income (loss) before incentive fees *****                            19.4%             (3.8)%
     Incentive fees *****                                                     (3.7)%            (0.1)%
                                                                             ------             -----
     Net income (loss) after incentive fees *****                             15.7%             (3.9)%
                                                                              ----               ---
     Operating expenses                                                        9.0%              9.6%
     Incentive fees                                                            3.7%              0.1%
                                                                              -----             -----
     Total expenses                                                           12.7%              9.7%
                                                                              ----               ---
    Total return:
     Total return before incentive fees                                       16.2%             (1.5)%
     Incentive fees                                                           (2.9)%            (0.5)%
                                                                              ------            -----
     Total return after incentive fees                                        13.3%             (2.0)%
                                                                              ------            -----
</TABLE>

     ****  Interest income less total expenses (exclusive of incentive fees)
     ***** Supplemental information not required
     The above ratios may vary for individual investors based on the timing of
     capital transactions during the year.


8.  Financial Instrument Risks:

     In the normal course of its business, the Partnership is party to financial
     instruments with off-balance  sheet risk,  including  derivative  financial
     instruments   and  derivative   commodity   instruments.   These  financial
     instruments  may include  forwards,  futures and options,  whose values are
     based upon an underlying  asset,  index,  or reference  rate, and generally
     represent  future  commitments  to exchange  currencies  or cash flows,  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
                                      F-12
<PAGE>

     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 majority of these  instruments  mature  within one year of December 31,
     2002.  However,  due to the  nature of the  Partnership's  business,  these
     instruments may not be held to maturity.

                                      F-13
<PAGE>

Selected  unaudited  quarterly  financial  data for the years ended December 31,
2002 and December 31, 2001 is summarized below:

<TABLE>
<CAPTION>
<S>                                          <C>              <C>                     <C>                 <C>
                                        For the period     For the period        For the period    For the period
                                              from              from                 from              from
                                        October 1, 2002     July 1, 2002         April 1, 2002     January 1, 2002
                                               to                to                     to                to
                                        December 31, 2002  September 30, 2002    June 30, 2002     March 31, 2002

Net realized and unrealized trading
 gains (losses) net of brokerage
 commissions and clearing fees
 including interest income                 $(5,411,644)     $25,204,937           $ 11,174,048    $ (6,828,909)

Net Income (loss)                          $(5,707,980)     $20,134,106           $ 10,155,226    $ (7,291,232)

Increase (decrease) in
 Net Asset Value per Unit                  $    (45.89)     $    177.82                $ 95.32        $ (91.49)


                                         For the period    For the period      For the period   For the period
                                              from              from                from             from
                                         October 1, 2001    July 1, 2001        April 1, 2001   January 1, 2001
                                               to               to                   to              to
                                        December 31, 2001  September 30, 2001   June 30, 2001   March 31, 2001

Net realized and unrealized trading
 gains (losses) net of brokerage
 commissions and clearing fees
 including interest income                $(2,643,013)   $     2,124,667          $ (3,278,977)    $ 3,501,460

Net Income (loss)                       $  (2,888,720)   $     1,485,154          $ (3,168,365)    $ 2,639,819

Increase (decrease) in
 1Net Asset Value per Unit              $      (42.87)   $         25.03              $ (73.62)        $ 70.92
</TABLE>

                                      F-14






<PAGE>


Item  9.  Changes  in and  Disagreements  with  Accountants  on  Accounting  and
          Financial Disclosure.

     PricewaterhouseCoopers  LLP was  previously  the principal  accountant  for
Partnership.  On July 9, 2002,  that firm was dismissed as principal  accountant
and KPMG LLP was  engaged  as  principal  accountant.  The  decision  to  change
accountants was approved by the general partner of the Partnership.

     In  connection  with the audits of the two fiscal years ended  December 31,
2001,   and   through   July  9,  2002,   there  were  no   disagreements   with
PricewaterhouseCoopers  LLP on any matter of accounting principles or practices,
financial  statement  disclosure,   or  auditing  scope  or  procedures,   which
disagreements  if not resolved to their  satisfaction  would have caused them to
make  reference  thereto in their reports on the financial  statements  for such
years.

     The audit reports of PricewaterhouseCoopers LLP on the financial statements
of the  Partnership as of and for the years ended December 31, 2001 and 2000 did
not  contain  any  adverse  opinion  or  disclaimer  of  opinion,  nor were they
qualified or modified as to uncertainty, audit scope, or accounting principle.

                                    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.


                                       43
<PAGE>

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  $7,000,104  were paid for the year
ended  December 31, 2002.  Management  fees and incentive fees of $2,147,508 and
$4,026,955,  respectively,  were paid or  payable to the  Advisors  for the year
ended December 31, 2002.

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 2,005.1490  Units of Limited  Partnership  Interest  (1.5%) as of
December 31, 2002.

     (c). Changes in control. None.

Item 13. Certain Relationships 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


                                       44
<PAGE>

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."

Item 14. Control and Procedures

     Based on their  evaluation  of the  Partnership's  disclosure  controls and
procedures  as of a date within 90 days of the filing of this report,  the Chief
Executive  Officer and Chief Financial Officer have concluded that such controls
and procedures are effective.

     There were no significant changes in the Partnership's internal controls or
in other factors that could significantly affect such controls subsequent to the
date of their evaluation.

                                     PART IV

Item 15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.

         (a) (1)  Financial Statements:

               Statements of Financial Condition at December 31, 2002 and 2001.

               Statements  of Income and Expenses  for the years ended  December
               31, 2002, 2001 and for the period from June 1, 2000 (commencement
               of trading operations) to December 31, 2000.

               Statements of Partners'  Capital for the years ended December 31,
               2002,  2001  and  for the  period  from  August  25,  1999  (date
               Partnership was organized to December 31, 2001.



                                       45
<PAGE>

               (2)  Financial Statement  Schedules:  Financial Data Schedule for
                    the year ended December 31, 2002.

               (3)  Exhibits:

               3.1  - Limited Partnership Agreement (filed as Exhibit 3.1 to the
                    Registration  Statement on Form S-1 (File No.  333-87663 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 August 25,  1999 (filed as Exhibit 3.2 to the
                    Registration  Statement on Form S-1 (File No. 333-87663) 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.  333-87663) and incorporated
                    herein by reference).

               10.3-Escrow  Agreement  relating to escrow of subscription  funds
                    (filed as Exhibit 10.3 to the Registration Statement on Form
                    S-1  (File  No.   333-87663)  and  incorporated   herein  by
                    reference).

               10.4-Management  Agreement  among the  Partnership,  the  General
                    Partner and Beacon Management  Corporation (filed as Exhibit
                    10.4 to the  Registration  Statement  on Form S-1  (File No.
                    333-87663) and incorporated herein by reference).


                                       46
<PAGE>

               10.5-Management  Agreement  among the  Partnership,  the  General
                    Partner and Bridgewater  Associates,  Inc. (filed as Exhibit
                    10.5 to the  Registration  Statement  on Form S-1  (File No.
                    333-87663) and incorporated herein by reference).

               10.6-Management  Agreement  among the  Partnership,  the  General
                    Partner and Campbell & Company,  Inc. (filed as Exhibit 10.6
                    to  the  Registration   Statement  on  Form  S-1  (File  No.
                    333-87663) and incorporated herein by reference).

               10.7-Management  Agreement  among the  Partnership,  the  General
                    Partner and Rabar Market  Research,  Inc.  (filed as Exhibit
                    10.7 to the  Registration  Statement  on Form S-1  (File No.
                    333-87663) and incorporated herein by reference).

               10.8-Letters extending Management  Agreements between the General
                    Partner  and  Campbell & Company,  Inc.,  Beacon  Management
                    Corporation  and  Rabar  Market  Research,   Inc.  for  2001
                    (previously filed).

               10.9-Management  Agreement  among the  Partnership,  the  General
                    Partner  and  Graham  Capital  Management  L.P.  (previously
                    filed).

               10.10- Letter from the General  Partner  terminating  Bridgewater
                    Associates, Inc. (previously filed).

               10.11- Letter from the General Partner  terminating  Rabar Market
                    Research, Inc. (previously filed).


                                       47
<PAGE>

               10.12- Management  Agreement among the  Partnership,  the General
                    Partner and Aspect Capital Limited (previously filed).

               10.13-  Letters  extending  Management   Agreements  between  the
                    General  Partner  and  Campbell  &  Company,   Inc.,  Beacon
                    Management  Corporation  and Graham Capital  Management L.P.
                    for 2002. (filed herein).

               99.1 Certificate of Chief Executive Officer.

               99.2 Certificate of Chief Financial Officer.

          (b)      Report on Form 8-K: None Filed.




                                       48
<PAGE>

     Supplemental  Information  To Be Furnished  With Reports Filed  Pursuant To
Section 15(d) Of The Act by  Registrants  Which Have Not  Registered  Securities
Pursuant To Section 12 Of the Act.




Annual Report to Limited Partners
No proxy material has been sent to Limited Partners.



                                       49
<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 27th day of March 2003.


SALOMON SMITH BARNEY DIVERSIFIED 2000 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



                                       50
<PAGE>

   TYPE>                                          EX-27
    DESCRIPTION>                                   FINANCIAL DATA SCHEDULE
TEXT>
ARTICLE>                                           5
CIK>                                               0000911503
NAME>                                Smith Barney Diversified Futures Fund L.P.
<TABLE>
<S>                                                   <C>
PERIOD-TYPE>                                       12-MONTHS
FISCAL-YEAR-END>                                   DEC-31-2002
PERIOD-START>                                      JAN-01-2002
PERIOD-END>                                        DEC-31-2002
CASH>                                                      64,057,301
SECURITIES>                                                 4,954,354
RECEIVABLES>                                                   53,318
ALLOWANCES>                                                         0
INVENTORY>                                                          0
CURRENT-ASSETS>                                            69,064,973
PP&E>                                                               0
DEPRECIATION>                                                       0
TOTAL-ASSETS>                                              69,064,973
CURRENT-LIABILITIES>                                        1,003,026
BONDS>                                                              0
PREFERRED-MANDATORY>                                                0
PREFERRED>                                                          0
COMMON>                                                             0
OTHER-SE>                                                  68,061,947
TOTAL-LIABILITY-AND-EQUITY>                                69,064,973
SALES>                                                              0
TOTAL-REVENUES>                                            21,121,312
CGS>                                                                0
TOTAL-COSTS>                                                        0
OTHER-EXPENSES>                                             8,473,586
LOSS-PROVISION>                                                     0
INTEREST-EXPENSE>                                                   0
INCOME-PRETAX>                                             12,647,726
INCOME-TAX>                                                         0
INCOME-CONTINUING>                                                  0
DISCONTINUED>                                                       0
EXTRAORDINARY>                                                      0
CHANGES>                                                            0
NET-INCOME>                                                12,647,726
EPS-PRIMARY>                                                   257.21
EPS-DILUTED>                                                        0
</TABLE>