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, 2000

                        Commission File Number 333-87663


             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]

As of February 28, 2001,  Limited  Partnership  Units with an aggregate value of
$34,880,902 were outstanding and held by non-affiliates.

                       DOCUMENTS INCORPORATED BY REFERENCE
                                      None


<PAGE>


                                     PART I

Item 1. Business.
         (a) General  development of business.  Salomon Smith Barney 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  150,000  Units  of  Limited  Partnership  Interest  in  the
Partnership ("Units") were offered to the public.
         A  Registration  Statement on Form S-1 relating to the public  offering
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 period from August 25, 1999 (date  Partnership
was  organized)  to December 31, 2000 are reported in the Statement of Partners'
Capital on page F-6 under "Item 8. Financial Statement and Supplementary Data".
         The  General  Partner  has  agreed to make  capital  contributions,  if
necessary, so that its general partnership interest will be equal to the greater

                                   2
<PAGE>

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, 2000, all commodity  trading  decisions are made for the
Partnership by Beacon Management Corporation ("Beacon"),  Bridgewater Associates
Inc.  ("Bridgewater"),  Campbell & Company,  Inc.  ("Campbell") and Rabar Market
Research, Inc. ("Rabar") (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.

                                   3
<PAGE>

         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 (except
Bridgewater,  whose  management  fee will be 1.25% of Net Asset per year payable
monthly)  allocated to each Advisor as of the end of each month and 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  will pay SSB (i) a
monthly  brokerage fee equal to 9/20 of 1% of month-end Net Assets  allocated to
the  Advisors  (5.4% per year) in lieu of brokerage  commissions  on a per trade
basis. SSB pays a portion of its brokerage fees to its financial consultants who
have sold Units and who are registered as associated  persons with the Commodity
Futures  Trading  Commission  (the "CFTC").  The  Partnership  pays for National
Futures  Association  ("NFA") fees, exchange and clearing fees, give-up and user
fees and floor  brokerage fees. The Customer  Agreement  between the Partnership
and SSB  gives  the  Partnership  the legal  right to net  unrealized  gains and
losses.  Brokerage fees will be paid for the life of the  Partnership,  although
the rate at which such fees are paid may be changed.
         In addition,  SSB pays the  Partnership  interest on 80% of the average
daily  equity  maintained  in cash in its account  during each month at a 30-day
U.S.  Treasury  bill  rate  determined  weekly  by  SSB  based  on  the  average
non-competitive yield on 3-month U.S. Treasury bills maturing in 30 days from

                                   4
<PAGE>

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  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, 2000,
was $30,072,797.
         (c)      Narrative description of business.
                  See Paragraphs (a) and (b) above.
                  (i) through (x) - Not  applicable.
                  (xi) through (xii) Not applicable.
                  (xiii) - The Partnership has no employees.
         (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.

                                   5
<PAGE>


Item 3.  Legal Proceedings.
          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 to various claims and regulatory  inquiries.  Proceedings  deemed to be
 material for purposes of CFTC disclosure requirements are:
          In  September  1992,  Harris  Trust and  Savings  Bank (as trustee for
 Ameritech Pension Trust),  Ameritech  Corporation,  and an officer of Ameritech
 sued Salomon Brothers Inc and Salomon  Brothers Realty  Corporation in the U.S.
 District  Court for the Northern  District of Illinois  (Harris  Trust  Savings
 Bank, not individually  but solely as trustee for the Ameritech  Pension Trust,
 Ameritech Corporation and John A. Edwardson v. Salomon Brothers Inc and Salomon
 Brothers  Realty  Corp.).  The  complaint  alleged that  purchases by Ameritech
 Pension  Trust from the Salomon  entities  of  approximately  $20.9  million in
 participations in a portfolio of motels owned by Motels of America, Inc. and

                                   6
<PAGE>

Best Inns, Inc. violated the Employee  Retirement Income Security Act ("ERISA"),
 the Racketeer  Influenced and Corrupt  Organization Act ('RICO") and state law.
 Salomon  Brothers  Inc had  acquired  the  participations  issued  by Motels of
 America and Best Inns to finance  purchases of motel portfolios and sold 95% of
 three  such  issues  and 100% of one such  issue to  Ameritech  Pension  Trust.
 Ameritech Pension Trust's  complaint sought (1) approximately  $20.9 million on
 the ERISA  claim,  and (2) in excess of $70  million  on the RICO and state law
 claims as well as other relief.  In various  decisions  between August 1993 and
 July 1999, the courts hearing the case have dismissed all of the allegations in
 the complaint against the Salomon entities. In October 1999, Ameritech appealed
 to the U.S. Supreme Court and in January 2000, the Supreme Court agreed to hear
 the case.  An argument was heard on April 17, 2000.  The appeal seeks review of
 the  decision  of the U.S.  Court  of  Appeals  for the  Seventh  Circuit  that
 dismissed the sole remaining ERISA claim against the Salomon entities.  In June
 the Supreme Court reversed the Seventh Circuit and the matter has been remanded
 to the Trial Courts.
          Both the  Department  of Labor and the Internal  Revenue  Service have
 advised Salomon  Brothers Inc that they were or are reviewing the  transactions
 in which Ameritech Pension Trust acquired such participations.  With respect to
 the Internal  Revenue Service review,  Salomon Smith Barney  Holdings,  Salomon
 Brothers Inc and Salomon  Brothers  Realty have consented to extensions of time
 for the  assessment  of excise taxes that may be claimed to be due with respect
 to the transactions for the years 1987, 1988 and 1989.

                                   7
<PAGE>

     In December  1996, a complaint  seeking  unspecified  monetary  damages was
filed by Orange County,  California against numerous brokerage firms,  including
Salomon Smith Barney,  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.  Salomon  Smith  Barney and the
remaining brokerage firms settled with Orange County in mid 1999.
     In June  1998,  complaints  were filed in the U.S.  District  Court for the
Eastern District of Louisiana in two actions (Board of  Liquidations,  City Debt
of the City of New  Orleans v. Smith  Barney  Inc,  et ano.  and The City of New
Orleans v. Smith Barney Inc. et ano.),  in which the City of New Orleans seeks a
determination that Smith Barney Inc. and another underwriter will be responsible
for any  damages  that the City may  incur in the  event  the  Internal  Revenue
Service  denies tax exempt  status to the City's  General  Obligation  Refunding
Bonds Series 1991.  The  complaints  were  subsequently  amended.  Salomon Smith
Barney has asked the court to dismiss the amended  complaints.  The Court denied
the motion but stayed the case. Subsequently, the city withdrew its lawsuit.
          It November  1998,  a class action  complaint  was filed in the United
 States District Court for the Middle District of Florida (Dwight Brock as Clerk
 for Collier  County v. Merrill  Lynch,  et al.).  The  complaint  alleged that,
 pursuant to a nationwide conspiracy, 17 broker-dealer defendants, including

                                   8
<PAGE>

 Salomon Smith Barney,  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. Salomon Smith Barney has asked the court to dismiss
 the amended complaint.
          In connection with the Louisiana and Florida matters,  the IRS and SEC
 have  been  conducting  an  industry-wide  investigation  into the  pricing  of
 Treasury securities in advanced refunding  transactions.  In April 2000 SSB and
 several  other  broker-dealers  entered into a settlement  with the IRS and the
 SEC.
          In December 1998, Salomon Smith Barney was one of twenty-eight  market
 making firms that reached a settlement with the SEC in the matter titled In the
 Matter of Certain Market Making Activities on NASDAQ. As part of the settlement
 of that matter,  Salomon Smith Barney, without admitting or denying the factual
 allegations,  agreed to an order  that  required  that it: (i) cease and desist
 from  committing or causing any violations of Sections  15(c)(1) and (2) of the
 Securities Exchange Act of 1934 and Rules l5cl -2, 15c2-7 and 17a-3 thereunder,
 (ii) pay penalties totaling  approximately  $760,000,  and (iii) submit certain
 policies and procedures to an independent consultant for review.
          In March 1999, a complaint seeking in excess of $250 million was filed
 by a hedge fund and its investment advisor against Salomon Smith Barney in the

                                   9
<PAGE>

 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,  Salomon  Smith Barney
 breached its contracts with  plaintiffs,  misused their monies,  and engaged in
 tortious (wrongful) conduct,  including breaching its fiduciary duties. Salomon
 Smith Barney 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 misuse of money claims to
 stand, Salomon Smith Barney will continue to contest this lawsuit vigorously.

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.
                                     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, 2000 was 844.
(c)      Distribution.  The  Partnership  did not declare a distribution in 2000
         and 1999.

                                   10
<PAGE>

(d)      Use of  Proceeds.  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.

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 period from
        June 1, 2000  (commencement of trading  operations) to December 31, 2000
        and total assets at December 31, 2000 and 1999 were as follows:

<TABLE>
<CAPTION>

                                                           2000           1999
                                                        ---------   ------------
<S>                                                    <C>                   <C>
Realized and unrealized trading
 gains net of brokerage
 commissions and clearing fees
 of $803,045                                          $  2,637,312        $ -0-

Interest income                                            633,253          -0-

                                                      $  3,270,565        $ -0-
                                                      ============        ======

Net income                                            $  2,246,017        $ -0-
                                                      ============        ======

Increase in net asset
 value per Unit                                       $      42.22        $ -0-
                                                      ============        ======

Total assets                                          $ 31,557,418        $2,000
                                                      ============        ======

</TABLE>

                                   11
<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.

                                   12
<PAGE>

         (5) The  Partnership  will not employ the  trading  technique  commonly
known as  "pyramiding",  in which the  speculator  uses  unrealized  profits  on
existing positions as margin for the purchase or sale of additional positions in
the same or related commodities.
         (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

                                   13
<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.
     (b) Capital resources. (i) The Partnership has made no material commitments
for capital expenditures.

                                   14
<PAGE>

   (ii) The Partnership's  capital consists of the capital  contributions of the
partners as increased or decreased by gains or losses on commodity trading,  and
by expenses, interest income, redemptions of Units and distributions of profits,
if any. Gains or losses on commodity  trading cannot be predicted.  Market moves
in commodities are dependent upon  fundamental  and technical  factors which the
Partnership  may or may not be  able  to  identify.  Partnership  expenses  will
consist of, among other things, commissions, management fees and incentive fees.
The level of these  expenses  is  dependent  upon the level of trading  gains or
losses and the ability of the Advisors to identify  and take  advantage of price
movements  in the  commodity  markets,  in  addition  to the level of net assets
maintained.  In  addition,  the  amount of  interest  income  payable  by SSB is
dependent upon interest rates over which the Partnership has no control.
         No  forecast  can be made as to the level of  redemptions  in any given
period.  Beginning at the end of three full months after trading  commences June
1, 2000, 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, 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

                                   15
<PAGE>

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 are being  reimbursed to SSB by the  Partnership in 24
equal monthly  installments  (together with interest at the prime rate quoted by
J. P. Morgan Chase & Co.).
         As of December 31, 2000,  $193,011 of these costs have been  reimbursed
to SSB, by the Partnership.
         In addition,  the Partnership has recorded interest expense of $37,267,
for the period ended December 31, 2000, which is included in other expenses.
         The  remaining  liability  for  these  costs  due to  SSB  of  $556,989
(exclusive of interest  charges) will not reduce  redemption/subscription  value
per Unit for any purpose (other than financial reporting), including calculation
of advisory and brokerage fees.
         The  Partnership  continues  to offer  Units at the Net Asset Value per
Unit as of the end of each quarter.  For the year ended 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.

                                   16
<PAGE>

         (c)      Results of Operations.
                   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.  There were no operations  for the year ended December
31, 1999.
                   The  Partnership  experienced net trading gains of $3,400,357
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.
                  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

                                   17
<PAGE>

direct, but of critical importance, are risks pertaining to operational and back
office  support.  This is  particularly  the  case  in a  rapidly  changing  and
increasingly  global  environment  with  increasing  transaction  volumes and an
expansion  in the number and  complexity  of products in the  marketplace.
Such risks  include:
Operational/Settlement  Risk - the risk of financial  and  opportunity  loss and
legal liability attributable to operational problems, such as inaccurate pricing
of transactions,  untimely trade execution,  clearance and/or settlement, or the
inability to process large volumes of  transactions.  The Partnership is subject
to increased  risks with respect to its trading  activities  in emerging  market
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

                                   18
<PAGE>

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.
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 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

                                   19
<PAGE>

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  included in this section  should not be considered to constitute
any  assurance or  representation  that the  Partnership's  losses in any market
sector  will be limited  to Value at Risk or by the  Partnership's  attempts  to
manage its market risk. Quantifying the Partnership's Trading Value at Risk
         The following  quantitative  disclosures  regarding  the  Partnership's
market risk exposures contain "forward-looking statements" within the meaning of
the safe harbor from civil liability provided for such statements by the Private
Securities  Litigation  Reform  Act of 1995  (set  forth in  Section  27A of the
Securities Act of 1933 and Section 21E of the Securities  Exchange Act of 1934).
All quantitative disclosures in this section are deemed to be forward-looking

                                   20
<PAGE>

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.
         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

                                   21
<PAGE>

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

                                   22
<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, 2000. All
open position  trading risk exposures of the  Partnership  have been included in
calculating  the  figures  set  forth  below.  As  of  December  31,  2000,  the
Partnership's total capitalization was $30,072,797.

                                December 31, 2000


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

Currencies
- Exchange Traded Contracts        $  459,141       1.53%$               853,845   $  283,123
- OTC Contracts                        31,550       0.10%                119,848       13,750
Energy                                415,000       1.38%                565,500      103,100
Grains                                276,400       0.92%                276,400       27,850
Interest rates U.S.                   596,050       1.98%                596,050       67,843
Interest rates Non-U.S              1,178,667       3.91%              1,189,890      223,434
Livestock                             146,790       0.49%                156,700        9,610
Metals (Exchange Traded and
 OTC Contracts                        372,125       1.24%                505,925      100,200
Softs                                 275,700       0.92%                344,500       50,750
Indices                             1,063,578       3.54%              1,078,983      228,399
                                   ----------   ----------
Total                              $4,815,001      16.01%
                                   ==========   ==========

</TABLE>

                                   23
<PAGE>


There was no trading in the year ended December 31, 1999.
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.

                                   24
<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

                                   25
<PAGE>

December 31, 2000, by market sector.
     Interest Rates.  Interest rate risk is the principal market exposure of the
Partnership.  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.

                                   26
<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 by law  limited  to futures on  broadly  based  indices.  As of
December 31, 2000,  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 avoid being
"whipsawed" into numerous small losses.)
         Metals.   The  Partnership's   primary  metal  market  exposure  is  to
fluctuations in the price of gold and silver.  Although  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.  Cocoa,  cotton  and  sugar  accounted  for the
substantial  bulk of the  Partnership's  commodity  exposure as of December  31,
2000.
     Energy. The Partnership's  primary energy market exposure is to gas and oil
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.

                                   27
<PAGE>

Qualitative Disclosures Regarding Non-Trading Risk Exposure
         The  following  were  the  only   non-trading  risk  exposures  of  the
Partnership as of December 31, 2000.
     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
while maintaining a general  supervisory  overview of the  Partnership's  market
risk exposures.
                                   28
<PAGE>

         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.

                                   29
<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

                        Report of Independent Accountants.                   F-3

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

                        Statement of Income and Expenses for
                        the period from June 1, 2000
                        (commencement of trading operations)
                        to December 31, 2000.                                F-5

                        Statement of Partners' Capital for
                        the period from August 25, 1999
                        (date Partnership was organized) to
                        December 31, 2000.                                   F-6

                        Notes to Financial Statements.                 F-7 -F-11


                               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:  Daniel A. Dantuono, Chief Financial Officer
     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 Accountants

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

In our  opinion,  the  accompanying  statement of  financial  condition  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,  2000 and 1999,  and the
results of its operations 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 22, 2001

                                   F-3
<PAGE>


                              Salomon Smith Barney
                       Diversified 2000 Futures Fund L.P.
                        Statement of Financial Condition
                           December 31, 2000 and 1999

                                          2000             1999
Assets:
Equity in commodity futures
   trading account:
   Cash (Note 3c)                       $28,284,110   $     2,000
   Net unrealized
    appreciation on open
    positions                             3,153,968          --
                                        -----------   -----------
                                         31,438,078         2,000

Interest receivable                         119,340          --
                                        -----------   -----------
                                        $31,557,418   $     2,000
                                        -----------   -----------

Liabilities and Partners'
Capital:
Liabilities:
  Accrued expenses:
   Commissions                          $   144,165   $      --
   Management fees                           49,799          --
   Incentive fees                           568,604          --
   Professional fees                        108,366          --
   Other                                      7,695          --
  Due to SSB (Note 6)                       589,753          --
  Redemptions payable (Note 5)               16,239          --
                                        -----------   ----------
                                          1,484,621          --
Partners' capital (Notes 1, 5 and 7):
  General Partner, 291.9152
   and 1 Unit equivalents
   outstanding in 2000 and
   1999, respectively                       304,240         1,000
  Limited Partners,
   28,562.6770 and 1 Unit(s)
   of Limited Partnership
   Interest outstanding in
   2000 and 1999, respectively           29,768,557         1,000
                                        -----------   -----------
                                         30,072,797         2,000
                                        -----------   -----------
                                        $31,557,418   $     2,000
                                        -----------   -----------


See notes to financial statements.

                              F4
<PAGE>


                              Salomon Smith Barney
                       Diversified 2000 Futures Fund L.P.
                        Statement of Income and Expenses
                           for the period June 1, 2000
                      (commencement of trading operations)
                              to December 31, 2000

                                                      2000
Income:
Net gain on trading of commodity interests:
Realized gains on closed positions               $   286,389
Net unrealized gain on open positions              3,153,968
                                                 -----------
                                                   3,440,357
Less, Brokerage commissions including clearing
 fees of $30,451 (Note 3c)                          (803,045)
                                                 -----------
Net realized and unrealized gains                  2,637,312
Interest income (Note 3c)                            633,253
                                                 -----------
                                                   3,270,565
 Expenses:
 Management fees (Note 3b)                           253,873
 Incentive fees (Note 3b)                            568,604
 Professional fees                                   159,004
 Other expenses                                       43,067
                                                 -----------
                                                   1,024,548
                                                 -----------
 Net income                                      $ 2,246,017
                                                 -----------
 Net income per Unit of Limited Partnership
  Interest and  General Partner Unit
  equivalent (Notes 1 and 7)                     $     70.19
                                                 -----------


See notes to financial statements.

                                   F-5
<PAGE>


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

                                        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 and organization 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
                                   ------------    ------------    ------------


See notes to financial statements.

                                        F-6
<PAGE>

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. 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  his  initial   capital
     contribution and profits, if any, net of distributions.

     The  Partnership  will  be  liquidated  upon  the  first  to  occur  of the
     following:  December 31, 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  values on  commodity  interests  and foreign  currencies  are
       recognized  in the period in which the  contract is closed or the changes
       occur and are  included  in net gains  (losses)  on trading of  commodity
       interests.

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

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


                                   F-7
<PAGE>

       the date of the financial statements and the reported amounts of revenues
       and expenses  during the reporting  period.  Actual  results could differ
       from these estimates.

3.  Agreements:

    a.  Limited Partnership Agreement:

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

    b. Management Agreement:

       The General  Partner,  on behalf of the  Partnership,  has  entered  into
       Management  Agreements  with Beacon  Management  Corporation  ("Beacon"),
       Bridgewater Associates,  Inc.  ("Bridgewater"),  Campbell & Company, Inc.
       ("Campbell"),  and Rabar Market Research,  Inc. ("Rabar")  (collectively,
       the "Advisors"),  registered commodity trading advisors. The Advisors are
       not  affiliated  with one another,  are not  affiliated  with the General
       Partner or SSB and are not responsible for the  organization or operation
       of the  Partnership.  The  Partnership  will pay each  Advisor  a monthly
       management  fee equal to 1/6 of 1% (2% per year) of month-end  Net Assets
       allocated to the Advisor (except  Bridgewater,  whose management fee will
       be 1.25% of Net  Assets  per year  payable  monthly).  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.

    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.  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 NFA fees, exchange, clearing, user,
       give-up and floor  brokerage  fees. All of the  Partnership's  assets are
       deposited in the Partnership's  account at SSB. The Partnership's cash is
       deposited by SSB in segregated  bank  accounts to the extent  required by
       Commodity Futures Trading Commission  regulations.  At December 31, 2000,
       the amount of cash held for margin  requirements was $5,861,535.  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
    activity are shown in the statement of income and expenses.


                                        F-8
<PAGE>



    All of the commodity interests owned by the Partnership are held for trading
    purposes.  The average fair value during the period ended December 31, 2000,
    based on a  monthly  calculation,  was  $674,420.  The  fair  value of these
    commodity interests,  including options thereon, if applicable,  at December
    31, 2000 was $3,153,968, as detailed below.

                                           Fair Market Value

                                             December 31,
                                                  2000
Currencies:
    -Exchange Traded Contracts               $   597,014
    -OTC Contracts                               (17,158)
Energy                                           258,193
Grains                                            72,296
Interest Rates U.S.                            1,464,725
Interest Rates Non-U.S                           630,571
Livestock                                        242,880
Metals (Exchange Traded and OTC Contracts)        67,591
Softs                                            129,435
Indices                                         (291,579)
                                             -----------
Total                                        $ 3,153,968
                                             -----------


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 and Organization Costs:

    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 are being  reimbursed to SSB by the  Partnership in
    24 equal  monthly  installments  (together  with  interest at the prime rate
    quoted by J.P. Morgan Chase & Co.).

    For the period ended  December  31, 2000,  $193,011 of these costs have been
    reimbursed to SSB, by the  Partnership.  In addition,  the  Partnership  has
    recorded interest expense of $37,267, for the period ended December 31, 2000
    which is included in other expenses.

    The remaining liability for these costs due to SSB of $556,989 (exclusive of
    interest charges) will not reduce redemption/subscription value per Unit for
    any purpose  (other than  financial  reporting),  including  calculation  of
    advisory and brokerage fees.


                                   F-9
<PAGE>



7.  Net Asset Value Per Unit:

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





                                                     2000

Net realized and unrealized gains                 $    83.75
Interest income                                        27.07
Expenses                                              (40.63)
                                                   ---------
Increase for the period                                70.19
                                                   ---------
Net asset value per Unit, beginning of period       1,000.00
Offering and organization cost adjustment             (46.27)
Redemption/subscription value per Unit
 versus net asset value per Unit                       18.30
                                                   ---------
Net asset value per Unit, end of period          $  1,042.22
                                                   ---------
Redemption/subscription value per Unit,
 end of period*                                  $  1,061.52
                                                   ---------


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

8.  Financial Instrument Risks:

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

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

    Credit risk is the possibility that a loss may occur due to the failure of a
    counterparty  to perform  according to the terms of a contract.  Credit risk
    with respect to exchange traded instruments is reduced to the extent that an


                                        F-10


<PAGE>
     exchange  or  clearing   organization   acts  as  a  counterparty   to  the
     transactions (see table in Note 4). The  Partnership's  risk of loss in the
     event  of  counterparty   default  is  typically  limited  to  the  amounts
     recognized in the statement of financial  condition and not  represented by
     the contract or notional  amounts of the  instruments.  The Partnership has
     credit risk and concentration  risk because the sole counterparty or broker
     with respect to the Partnership's assets is SSB.

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

     The  notional  or   contractual   amounts  of  these   instruments,   while
     appropriately not recorded in the financial statements,  reflect the extent
     of the  Partnership's  involvement  in these  instruments.  The majority of
     these instruments mature within one year of December 31, 2000. However, due
     to the nature of the Partnership's  business,  these instruments may not be
     held to maturity.

9.  Subsequent Events:

     Through March 1, 2001,  there were  additional  sales of  9,203.0286  Units
     totaling  $9,634,000.  Through  February  28, 2001,  there were  additional
     redemptions of 275.6302 Units totaling $288,134.

     Bridgewater   Associates,   Inc.  was  terminated  as  an  Advisor  to  the
     Partnership on March 1, 2001.  Graham Capital  Management L.P. was added as
     an Advisor on that date.


                                   F-11


<PAGE>


Item 9.Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure.
              During the last fiscal year and any subsequent  interim period, no
independent  accountant who was engaged as the principal accountant to audit the
Partnership's financial statements has resigned or was dismissed.
                                    PART III
Item 10.  Directors and Executive Officers of the Registrant.
                  The  Partnership  has no officers or directors and its affairs
are  managed by its  General  Partner,  Smith  Barney  Futures  Management  LLC.
Investment decisions are made by the Advisors.
Item 11. Executive Compensation.
                  The Partnership has no directors or officers.  Its affairs are
managed by Smith Barney Futures  Management  LLC, its General  Partner.  SSB, an
affiliate of the General  Partner,  is the commodity  broker for the Partnership
and receives brokerage  commissions for such services,  as described under "Item
1. Business." Brokerage  commissions and clearing fees of $803,045 were paid for
the year ended December 31, 2000. Management fees and incentive fees of $253,873
and  $568,604,  respectively,  were paid or payable to the Advisors for the year
ended December 31, 2000.

                                   30
<PAGE>


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

     (a). Security  ownership of certain beneficial owners. As of March 1, 2001,
one beneficial  owner who is neither a director nor executive  officer owns more
than five percent (5%) of the  outstanding  Units  issued by the  Registrant  as
follows:
Title           Name and Address of             Amount and Nature of  Percent of
of Class        Beneficial Owner                Beneficial Ownership       Class
Units of        Marshall Erdman & Assoc. Inc.            3,800 Units       13.2%
Limited         5117 University Ave.
Partnership     Madison, WI 53705-0249
Interest

         (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  291.9152  Units of  Limited  Partnership  Interest  (1.0%) as of
December 31, 2000.

         (c).  Changes in control.   None.

Item 13.  Certain Relationship and Related Transactions.
     Salomon Smith Barney Inc. and Smith Barney Futures  Management LLC would be
considered  promoters for purposes of item 404 (d) of Regulation S-K. The nature
and the amounts of compensation  each promoter will receive from the Partnership
are set forth  under  "Item 1.  Business",  "Item 8.  Financial  Statements  and
Supplementary Data." and "Item 11. Executive Compensation."

                                   31
<PAGE>


                                     PART IV
  Item 14.     Exhibits, Financial Statement Schedules, and Reports on Form 8-K.
(a) (1)  Financial Statements:
         Statement  of Financial  Condition  at December  31, 2000  Statement of
         Income and Expenses for the period from June 1, 2000  (commencement  of
         trading  operations)  to December  31,  2000.  Statement  of  Partners'
         Capital for the period from August 25, 1999
        (date  Partnership  was organized to December 31, 2000

   (2)  Financial Statement Schedules: Financial Data Schedule for
        the year ended December 31, 2000 and 1999

   (3) Exhibits:
   3.1   -  Limited   Partnership   Agreement  (filed  as  Exhibit  3.1  to  the
         Registration  Statement on Form S-1 (File No 33-87663 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)

                                   32
<PAGE>


 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)
 10.2-  Escrow Instructions relating to escrow of subscription
        funds  (filed  as  Exhibit  10.2 to the Registration Statement
        on  Form  S-1 (File No. 333-87663) and incorporated herein
        by reference)

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

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


                                   33
<PAGE>

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

(b)    Reports on 8-K:           None Filed.

                                   34
<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 30th day of March 2001.


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/ Jack H. Lehman III
David J. Vogel                              Jack H. Lehman III
Director, Principal Executive               Chairman and Director
Officer and President



/s/ Michael R. Schaefer                     /s/  Daniel A. Dantuono
Michael R. Schaefer                         Daniel A. Dantuono
Director                                    Treasurer, Chief Financial
Officer and Director



/s/ Daniel R. McAuliffe, Jr.                /s/ Steve J. Keltz
Daniel R. McAuliffe, Jr.                    Steve J. Keltz
Director                                    Secretary and Director




/s/   Shelley Ullman
Shelley Ullman

                                   35
<PAGE>