UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-K

                  ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934

                      For the year ended December 31, 2001

Commission File Number 000-32599
                       ---------


             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]

As of February 28, 2002,  Limited  Partnership  Units with an aggregate value of
$73,207,088 were outstanding and held by non-affiliates.

                       DOCUMENTS INCORPORATED BY REFERENCE
                                      None


<PAGE>


34

                                     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 year ended  December  31,  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-6 under  "Item 8.
Financial Statement and Supplementary Data".

     The General Partner has agreed to make capital contributions, if necessary,

                                       2
<PAGE>

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, 2001, all commodity  trading  decisions are made for the
Partnership  by  Beacon  Management  Corporation   ("Beacon"),   Graham  Capital
management L.P)  ("Graham"),  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



                                       3
<PAGE>

Partnership.  Bridgewater  Associates  Inc. was  terminated as an Advisor to the
Partnership  on March 1,  2001.  Graham  was added as an  Advisor  on that date.
Effective  December  31,  2001,  Rabar  was  terminated  as an  Advisor  to  the
Partnership.

     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 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


                                       4
<PAGE>

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 year ended December 31, 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, 2001, was $69,871,834.

     (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.

     This section describes the major pending legal proceedings,
other than ordinary routine litigation incidental to the business, to which
Salomon Smith Barney Holdings Inc. ("SSBH") or its subsidiaries is a party or to
which any of their property is subject. There are no material legal proceedings
pending against the Partnership or the General Partner.

     Salomon  Smith  Barney  Inc.  ("SSB")  is a New York  corporation  with its
principal place of business at 388 Greenwich St., New York, New York 10013.  SSB
is registered as a broker-dealer and futures  commission  merchant ("FCM"),  and
provides futures  brokerage and clearing  services for  institutional and retail
participants  in the  futures  markets.  SSB and  its  affiliates  also  provide
investment banking and other financial services for clients worldwide.

     There have been no  administrative,  civil or criminal actions pending,  on
appeal or concluded  against SSB or any of its individual  principals within the
past five years that  management  believes  may have a material  impact on SSB's
ability to act as an FCM. In the ordinary course of its business, SSB is a party
to various claims and regulatory  inquiries.  Proceedings  deemed to be material
for  purposes  of  Commodity  Futures  Trading  Commission  ("CFTC")  disclosure
requirements are:

     In September 1992,  Harris Trust and Savings Bank (as trustee for Ameritech
Pension  Trust  ("APT"),  Ameritech  Corporation,   and an  officer of Ameritech
filed suit  against  Salomon  Brothers  Inc. ("SBI") and Salomon Brothers Realty


                                       6
<PAGE>

 Corporation ("SBRC") in the U.S. District Court for the Northern District
of Illinois  (Harris Trust Savings Bank, not  individually but solely as trustee
for the Ameritech Pension Trust,  Ameritech Corporation and John A. Edwardson v.
Salomon  Brothers Inc and Salomon  Brothers  Realty  Corp.).  The second amended
complaint  alleges that three purchases by APT from defendants of  participation
interests  in net cash flow or resale  proceeds  of three  portfolios  of motels
owned by Motels of America, Inc. ("MOA"), as well as a fourth purchase by APT of
a similar  participation  interest in a portfolio  of motels owned by Best Inns,
Inc. ("Best"),  violated the Employee  Retirement Income Security Act ("ERISA"),
and  that  APT's  purchase  of the  participation  interests  in the  third  MOA
portfolio  and in the Best  portfolio  violated  the  Racketeer  Influenced  and
Corrupt  Organization Act ("RICO") and the Illinois Consumer Fraud and Deceptive
Practices  Act  ("Consumer  Fraud  Act"),  and  constituted   fraud,   negligent
misrepresentation,  breach of contract and unjust  enrichment.  SBI had acquired
the participation interests when it purchased principal mortgage notes issued by
MOA and Best to finance  purchases  of motel  portfolios;  95% of three of those
interests  and 100% of the fourth were sold to APT for a total of  approximately
$20.9 million.  Plaintiffs'  second amended  complaint seeks judgment (a) on the
ERISA claims for the approximately  $20.9 million purchase price, for rescission
and for  disgorgement of profits,  as well as other relief,  and (b) on the RICO
and state law claims in the amount of $12.3 million, with damages trebled to $37
million  on  the  RICO  claims and  punitive damages in excess of $37 million on


                                       7
<PAGE>

certain of the state law claims as well as other  relief.  Following  motions by
defendants,  the court dismissed the RICO, Consumer Fraud Act, fraud,  negligent
misrepresentation,  breach of contract,  and unjust enrichment claims. The court
also found that defendants  were not ERISA  fiduciaries and dismissed two of the
three claims based on that allegation.  Defendants moved for summary judgment on
plaintiffs' only remaining claim,  which alleged an ERISA violation.  The motion
was denied, and defendants appealed to the U.S. Court of Appeals for the Seventh
Circuit.  In July  1999,  the U. S.  Court of Appeals  for the  Seventh  Circuit
reversed the denial of defendants' motion for summary judgment and dismissed the
sole remaining ERISA claim against the Company.  Plaintiffs filed a petition for
certiorari  with the U. S. Supreme Court  seeking  review of the decision of the
Court of  Appeals,  which was  granted  in  January  2000.  After  hearing  oral
argument,  on June 12, 2000,  the U.S.  Supreme Court reversed the U.S. Court of
Appeals for the Seventh Circuit's  judgment,  which had overturned the denial of
defendants'  motion for summary  judgment and dismissed the sole remaining ERISA
claim  against the Company,  and  remanded  the matter to the circuit  court for
further proceedings.  Subsequently, the circuit court remanded the matter to the
U.S.   District  Court  for  the  Northern  District  of  Illinois  for  further
proceedings.

     Both the Department of Labor and the Internal  Revenue Service ("IRS") have
advised SBI that they were or are reviewing the  underlying  transactions.  With



                                       8
<PAGE>
respect to the IRS,  SSBH, SBI and SBRC have consented to extensions of time for
the  assessment  of  excise  taxes  that  may be  claimed  with  respect  to the
transactions  for the years 1987,  1988 and 1989.  In August 1996,  the IRS sent
SSBH,  SBI and SBRC what appeared to be draft  "30-day  letters" with respect to
the  transactions and SSBH, SBI and SBRC were given an opportunity to comment on
whether the IRS should issue 30-day letters,  which would actually  commence the
assessment  process.  In October 1996, SSBH, SBI and SBRC submitted a memorandum
setting  forth reasons why the IRS should not issue such 30-day  letters.  Since
that time, the IRS has not issued such 30-day letters to SSBH, SBI or SBRC.

     In December  1996, a complaint  seeking  unspecified  monetary  damages was
filed by Orange County,  California against numerous brokerage firms,  including
SSB,  in the U.S.  Bankruptcy  Court for the  Central  District  of  California.
(County  of Orange  et al v.  Bear  Stearns  & Co.  Inc.  et al.) The  complaint
alleged,  among other things,  that the  brokerage  firms  recommended  and sold
unsuitable  securities to Orange Count.  SSB and the remaining  brokerage  firms
settled with Orange County in mid 1999.

     In June  1998,  complaints  were filed in the U.S.  district  Court for the
Eastern District of Louisiana in two actions (Board of  Liquidations,  City Debt
of the City of New  Orleans v. Smith  Barney  Inc,  et ano.  and The City of New
Orleans v. Smith Barney Inc. et ano.),  in which the City of New Orleans seeks a
determination that Smith Barney Inc. and another underwriter will be responsible



                                       9
<PAGE>
for any  damages  that the City may incur in the event the IRS denies tax exempt
status to the  City's  General  Obligation  Refunding  Bonds  Series  1991.  The
complaints  were  subsequently  amended.  SSB has asked the court to dismiss the
amended   complaints.   The  Court  denied  the  motion  but  stayed  the  case.
Subsequently, the city withdrew the lawsuit.

     In November  1998, a class action  complaint was filed in the United States
District  Court for the Middle  District of Florida  (Dwight  Brock as Clerk for
Collier County v. Merrill Lynch, et al.). The Complaint  alleged that,  pursuant
to a nationwide conspiracy, 17 broker-dealer defendants,  including SSB, Charged
excessive  mark-ups in connection with advanced  refunding  transactions.  Among
other relief,  plaintiffs sought compensatory and punitive damages,  restitution
and/or  rescission of the  transactions  and  disgorgement of alleged  excessive
profits.  In October 1999, the plaintiff filed a second amended  complaint.  SSB
has asked the court to dismiss the amended  complaint.  In  November  1999,  SSB
moved to dismiss the amended  complaint.  In May 2001, the parties reached,  and
the court preliminarily approved, a tentative settlement. In September 2001, the
court approved the settlement.

     In connection with the Louisiana and Florida matters,  the IRS and SEC have
been  conducting and  industry-wide  investigation  into the pricing of Treasury
securities  in advanced  refunding  transactions,  In April 2000 SSB and several
other  broker-dealers  entered  into a  settlement  with the IRS and the SEC. In
December  1998, SSB was one of  twenty-eight  market making firms that reached a




                                       10
<PAGE>
settlement  with the SEC in the matter  titled In the  Matter of Certain  Market
Making  Activities on NASDAQ.  As part of the  settlement  of that matter,  SSB,
without  admitting  or denying the factual  allegation,  agreed to an order that
required that it: (i) cease and desist from committing or causing any violations
of Sections  15(c)(1) and (2) of the  Securities  Exchange Act of 1934 and Rules
15cl -2, 15c2-7 and 17a-3 thereunder,  (ii) pay penalties totaling approximately
$760,000,  and (iii) submit  certain  policies and  procedures to an independent
consultant for review.

     In March 1999, a complaint seeking in excess of $250 million was filed by a
hedge fund and its  investment  advisor  against SSB in the Supreme Court of the
State of New York,  County of New York (MKP Master  Fund,  LDC et al. v. Salomon
Smith Barney  Inc.).  Plaintiffs  allege that while acting as their prime broker
SSB breached its contracts with  plaintiffs,  converted  plaintiffs'  monies and
engaged in tortious  conduct,  including  breaching  its  fiduciary  duties.  In
October 1999, the court dismissed plaintiffs' tort claims,  including the breach
of  fiduciary  duty claims,  but allowed the breach of contract  and  conversion
claims  to  stand.   In  December   1999,  SSB  filed  an  answer  and  asserted
counterclaims  against the investment advisor. In response to plaintiffs' motion
to strike the  counterclaims,  in January  2000,  SSB amended its  counterclaims



                                       11
<PAGE>

against  the  investment  advisor  to  seek  indemnification  and  contribution.
Plaintiffs  moved to strike SSB's  amended  counterclaims  in February  2000. In
September   2000,  the  court  denied   plaintiffs'   motion  to  dismiss  SSB's
counterclaims based on indemnification and contribution. Discovery is ongoing.

     SSBH and various subsidiaries have also been named as defendants in various
matters  incident to and typical of the  businesses  in which they are  engaged.
These include numerous civil actions,  arbitration proceedings and other matters
in which  SSBH's  broker-dealer  subsidiaries  have been  named,  arising in the
normal  course  of  business  out  of  activities  as a  broker  and  dealer  in
securities,  as an  underwriter  of  securities,  as  an  investment  banker  or
otherwise.  In the  opinion  of  SSBH's  management,  none of these  actions  is
expected  to have a  material  adverse  effect  on the  results  of  operations,
consolidated financial condition or liquidity of SSBH and its subsidiaries.

Item 4. Submission of Matters to a Vote of Security Holders.

     There were no matters  submitted to the security  holders for a vote during
the 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, 2001, was 2,493.

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




                                       12
<PAGE>

     (d)  Use of Proceeds.  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.

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 year ended  December  31, 2001
and for the period from June 1, 2000  (commencement  of trading  operations)  to
December  31,  2000,  and total  assets at  December  31,  2001 and 2000 were as
follows:
<TABLE>
<CAPTION>

                                                      2001              2000
                                                  ----------          ---------
<S>                                                   <C>                <C>
Realized and unrealized trading
 gains (losses) net of brokerage
 commissions and clearing fees
 of $3,132,288 and $803,045,
 respectively                                    $ (1,626,277)      $  2,637,312
Interest income                                     1,330,414            633,253
                                                 ------------       ------------
                                                 $   (295,863)      $  3,270,565
                                                 ============       ============
Net income (loss)                                $ (1,932,112)      $  2,246,017
                                                 ============       ============
Increase (decrease) in Net
 Asset Value per Unit                            $     (20.54)      $      42.22
                                                 ============       ============
Total assets                                     $ 71,587,137       $ 31,557,418
                                                 ============       ============
</TABLE>




                                       13
<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


                                       14
<PAGE>

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


                                       15
<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.



                                       16
<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 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,  2001,  6,286.5438  Units  were




                                       17
<PAGE>
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 are being  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,  2001,  and 2000,  $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 $35,691 and
$37,267,  for the period ended December 31, 2001 and 2000,  which is included in
other expenses.

     The remaining  liability for these costs due to SSB of $196,586  (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  Decembe r 31, 2001, there  were



                                       18
<PAGE>

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 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,  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.  There were no operations for
the year ended December 31, 1999.

     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  $3,400,357  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


                                       19
<PAGE>

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
to increased  risks with respect  to  its trading activities  in emerging market



                                       20
<PAGE>

securities,  where clearance,  settlement, and custodial risks are often greater
than in more established markets.

Technological Risk - the risk of loss attributable to technological  limitations
or hardware failure that constrain the Partnership's ability to gather, process,
and communicate information efficiently and securely, without interruption, with
customers,  among units  within the  Partnership,  and in the markets  where the
Partnership participates.

Legal/Documentation  Risk - the risk of loss attributable to deficiencies in the
documentation  of  transactions  (such  as  trade  confirmations)  and  customer
relationships  (such as master  netting  agreements)  or errors  that  result in
noncompliance  with  applicable  legal and  regulatory  requirements.  Financial
Control Risk - the risk of loss attributable to limitations in financial systems
and  controls.  Strong  financial  systems and  controls  ensure that assets are
safeguarded,  that  transactions  are executed in accordance  with  management's
authorization,  and  that  financial  information  utilized  by  management  and
communicated  to external  parties,  including  the  Partnership's  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,



                                       21
<PAGE>

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 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




                                       22
<PAGE>

intrinsic  to all  future  projections,  the  inclusion  of  the  quantification
included in this section should not be considered to constitute any assurance or
representation  that the  Partnership's  losses  in any  market  sector  will be
limited to Value at Risk or by the  Partnership's  attempts to manage its market
risk.

Quantifying the Partnership's Trading Value at Risk

     The following  quantitative  disclosures regarding the Partnership's market
risk exposures contain  "forward-looking  statements"  within the meaning of the
safe harbor from civil  liability  provided for such  statements  by the Private
Securities  Litigation  Reform  Act of 1995  (set  forth in  Section  27A of the
Securities Act of 1933 and Section 21E of the Securities  Exchange Act of 1934).
All  quantitative  disclosures in this section are deemed to be  forward-looking
statements  for purposes of the safe harbor except for  statements of historical
fact (such as the terms of  particular  contracts  and the number of market risk
sensitive instruments held during or at the end of the reporting period).

     The Partnership's risk exposure in the various market sectors traded by the
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




                                       23
<PAGE>

incurred  in the fair value of any given  contract  in  95%-99%  of any  one-day
intervals.  The  maintenance  margin  levels  are  established  by  dealers  and
exchanges  using  historical  price  studies as well as an assessment of current
market  volatility  (including the implied  volatility of the options on a given
futures contract) and economic fundamentals to provide a probabilistic  estimate
of the maximum expected near-term one-day price fluctuation.  Maintenance margin
has been used rather than the more generally  available initial margin,  because
initial margin  includes a credit risk component  which is not relevant to Value
at Risk.

     In the case of market sensitive  instruments  which are not exchange traded
(almost  exclusively  currencies  in the case of the  Partnership),  the  margin
requirements  for the  equivalent  futures  positions have been used as Value at
Risk. In those rare cases in which a futures-equivalent margin is not available,
dealers' margins have been used.

     The fair value of the Partnership's  futures and forward positions does not
have any optionality component. However, certain of the Advisors trade commodity
options. The Value at Risk associated with options is reflected in the following
table as the margin requirement  attributable to the instrument  underlying each
option.  Where this instrument is a futures  contract,  the futures margin,  and
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



                                       24
<PAGE>

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.



                                       25
<PAGE>



The Partnership's Trading Value at Risk in Different Market Sectors

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



                                       26
<PAGE>


As of December 31, 2000, the Partnership's total capitalization was $30,072,797.






                                December 31, 2000
<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     $  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>



                                       27
<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.



                                       28
<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, 2001, by market sector.



                                       29
<PAGE>

     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.



                                       30
<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, 2001, 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.  Cocoa, cotton and sugar accounted for the substantial bulk
of the Partnership's commodity exposure as of December 31, 2001.

     Energy. The Partnership's  primary energy market exposure is to gas and oil
price movements, often resulting from political developments in the Middle East.



                                       31
<PAGE>

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, 2001.

     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


                                       32
<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.



                                       33
<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, 2001 and 2000                               F-4


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

          Statement of Income and Expenses for the year ended
          December 31, 2001 and the period from June 1, 2000
          (commencement of trading operations) to December 31,
          2000.                                                    F-6


          Statement of Partners' Capital for the year for ended
          December 31, 2001 and the period from August 25, 1999
          (date Partnership was organized) to December 31, 2000.   F-7


          Notes to Financial Statements.                        F-8 - 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 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 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 2000, 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-3

<PAGE>


                              Salomon Smith Barney
                       Diversified 2000 Futures Fund L.P.
                        Statement of Financial Condition
                           December 31, 2001 and 2000
<TABLE>
<CAPTION>

                                                                             2001              2000
<S>                                                                          <C>                 <C>
Assets:
Equity in commodity futures trading account:
   Cash (Note 3c)                                                       $69,296,025       $28,284,110
   Net unrealized appreciation on open positions                          2,207,744         3,153,968
                                                                        -----------        ----------
                                                                         71,503,769        31,438,078
Interest receivable                                                          83,368           119,340
                                                                        -----------        ----------
                                                                        $71,587,137       $31,557,418
                                                                        ===========        ==========



Liabilities and Partners' Capital:
Liabilities:
  Accrued expenses:
   Commissions                                                             $328,163          $144,165
   Management fees                                                          120,908            49,799
   Incentive fees                                                            58,526           568,604
   Professional fees                                                         36,363           108,366
   Other                                                                     10,276             7,695
  Due to SSB (Note 6)                                                       196,586           589,753
  Redemptions payable (Note 5)                                              964,481            16,239
                                                                          ---------         ---------
                                                                          1,715,303         1,484,621
Partners' capital (Notes 1, 5 and 7):
  General Partner, 693.7778 and 291.9152 Unit equivalents
   outstanding in 2001 and 2000, respectively                               708,819           304,240
  Limited Partners, 67,695.5880 and 28,562.6770 Units of Limited
   Partnership Interest outstanding in 2001 and 2000, respectively       69,163,015        29,768,557
                                                                         ----------        ----------
                                                                         69,871,834        30,072,797
                                                                         ----------        ----------
                                                                        $71,587,137       $31,557,418
                                                                         ==========        ==========
</TABLE>




See notes to financial statements.


                                      F-4
<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-5
<PAGE>


                              Salomon Smith Barney
                       Diversified 2000 Futures Fund L.P.
                        Statement of Income and Expenses
                      for the year ended December 31, 2001
                         and for the period June 1, 2000
                      (commencement of trading operations)
                              to December 31, 2000
<TABLE>
<CAPTION>
<S>                                                        <C>            <C>
                                                          2001            2000

Income:
Net gain on trading of commodity interests:
Realized gains on closed positions                    $ 2,452,235    $   286,389
Net unrealized gains (losses) on open positions          (946,224)     3,153,968
                                                      -----------    -----------
                                                        1,506,011      3,440,357
Less, Brokerage commissions including clearing fees
 of $139,504 and $30,451, respectively (Note 3c)       (3,132,288)      (803,045)
                                                      -----------    -----------
Net realized and unrealized gains (losses)             (1,626,277)     2,637,312
Interest income (Note 3c)                               1,330,414        633,253
                                                      -----------    -----------
                                                         (295,863)     3,270,565
                                                      -----------    -----------
 Expenses:
 Management fees (Note 3b)                              1,034,107        253,873
 Incentive fees (Note 3b)                                  58,526        568,604
 Professional fees                                        465,609        159,004
 Other expenses                                            78,007         43,067
                                                      -----------    -----------
                                                        1,636,249      1,024,548
                                                      -----------    -----------
 Net income (loss)                                    $(1,932,112)   $ 2,246,017
                                                       ==========      =========

 Net Income (loss) per Unit of Limited Partnership
  Interest and General Partner Unit equivalent
  (Notes 1 and 7)                                         $(30.32)        $70.19
                                                           ======         ======
</TABLE>



See notes to financial statements.


                                      F-6
<PAGE>


                              Salomon Smith Barney
                       Diversified 2000 Futures Fund L.P.
                         Statement of Partners' Capital
                      for the year ended December 31, 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 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
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
                                                        ===========           =========        ==========
</TABLE>





See notes to financial statements.

                                      F-7
<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. 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 in the United States of
          America  requires  management to make estimates and  assumptions  that
          affect the reported  amounts of assets and  liabilities at the date of
          the  financial  statements  and the  reported  amounts of revenues and
          expenses during the reporting period. Actual results could differ from
          these estimates.

3.   Agreements:

     a.   Limited Partnership Agreement:

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

     b.   Management Agreement:

          The General Partner,  on behalf of the  Partnership,  has entered into
          Management Agreements with Beacon Management  Corporation  ("Beacon"),
          Graham Capital Management L.P.  ("Graham"),  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.  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.  Bridgewater
          Associates,  Inc. was  terminated as an Advisor to the  Partnership on

                                      F-8
<PAGE>

          March 1, 2001. Graham Capital  Management L.P. was added as an Advisor
          on that date. Effective December 31, 2001, Rabar Market Research, Inc.
          was terminated as an Advisor to the Partnership.

    c.    Customer Agreement:

          The Partnership  has entered into a Customer  Agreement which provides
          that the  Partnership  will pay SSB a 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, 2001 and 2000, the amount of
          cash held for  margin  requirements  was  $9,018,787  and  $5,861,535,
          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 activity are shown in the statement of income and expenses.

     All of the  commodity  interests  owned  by the  Partnership  are  held for
     trading  purposes.  The average fair value during the period ended December
     31,  2001 and 2000,  based on a monthly  calculation,  was  $3,370,732  and
     $674,420,  respectively.  The  fair  value of  these  commodity  interests,
     including options thereon, if applicable, at December 31, 2001 and 2000 was
     $2,270,744 and $3,153,968, respectively.

<TABLE>
<CAPTION>
<S>                                        <C>
                                     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 Contracts          83,260
        -OTC Contracts                     (15,669)
    Softs                                  129,435
    Indices                               (291,579)
                                          --------
    Total                               $3,153,968
                                         =========
</TABLE>



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


                              F-9
<PAGE>
     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 JPMorgan Chase & Co.).

     For the period  ended  December 31, 2001 and 2000,  $360,403 and  $193,011,
     respectively,   of  these  costs  have  been  reimbursed  to  SSB,  by  the
     Partnership.  In addition, the Partnership has recorded interest expense of
     $35,691  and  $37,267,  for the period  ended  December  31, 2001 and 2000,
     respectively, which is included in other expenses.

     The remaining  liability for these costs due to SSB of $196,586  (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.

7.  Financial Highlights:

     Changes in the net asset  value per Unit of  Partnership  interest  for the
     year  ended  December  31,  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>
                                                             2001              2000
                                                           -------            -------

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

    Ratios to average net assets:
    Net loss before incentive fee                            (3.8)%
    Incentive fee                                            (0.1)%
                                                            -----
    Net loss after incentive fee                             (3.9)%
                                                            =====
    Operating  expenses                                       9.6%
    Incentive fee                                             0.1%
                                                            -----
    Total expenses and incentive fee                          9.7%
                                                            =====
    Total return:
    Total return before incentive fee                        (1.5)%
    Incentive fee                                            (0.5)%
                                                             ----
    Total return after incentive fee                         (2.0)%
                                                             ====
</TABLE>



   * 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.




                                      F-10
<PAGE>


8.   Financial Instrument Risks:

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

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

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

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

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

9.  Subsequent Events:

     On  January  1,  2002,  there were  additional  sales of  4,137.4125  Units
     totaling  $4,237,000  and  on  January  31,  2002,  there  were  additional
     redemptions of 333.7589 Units totaling $334,356.

     On January 1, 2002,  Aspect Capital  Limited was added as an Advisor to the
     Partnership.


                                      F-11



<PAGE>


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

     During  the  last  fiscal  year  and  any  subsequent  interim  period,  no
independent  accountant who was engaged as the principal accountant to audit the
Partnership's financial statements has resigned or was dismissed.

                                    PART III

Item 10. Directors and Executive Officers of the Registrant.

     The Partnership has no officers or directors and its affairs are managed by
its General Partner,  Smith Barney Futures Management LLC. Investment  decisions
are made by the Advisors.

Item 11. Executive Compensation.

     The  Partnership  has no directors or officers.  Its affairs are managed by
Smith Barney Futures  Management LLC, its General Partner.  SSB, an affiliate of
the General  Partner,  is the commodity  broker for the Partnership and receives
brokerage  commissions for such services, as described under "Item 1. Business."
Brokerage  commissions  and clearing fees of  $3,132,288  were paid for the year
ended  December 31, 2001.  Management  fees and incentive fees of $1,034,107 and
$58,526,  respectively,  were paid or payable to the Advisors for the year ended
December 31, 2001.



                                       34
<PAGE>


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

         (a). Security ownership of certain beneficial owners.
As of March 1,  2002,  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:
<TABLE>
<CAPTION>
<S>                   <C>                                <C>                 <C>
Title           Name and Address of               Amount and Nature of    Percent
of Class        Beneficial Owner                  Beneficial Ownership    of  Class
--------        -------------------               --------------------    --------

Units of        Marshall Erdman & Assoc. Inc.         3,991.9437 Units       5.8%
Limited         5117 University Ave.
Partnership     Madison, WI 53705-0249
Interest
</TABLE>

         (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  693.7778  Units of  Limited  Partnership  Interest  (1.0%) as of
December 31, 2001.

         (c).  Changes in control.   None.

Item 13.  Certain Relationship and Related Transactions.

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




                                       35
<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, 2001 and 2000.
               Statement of Income and Expenses for the year ended  December 31,
               2001  and for the  period  from  June 1,  2000  (commencement  of
               trading operations) to December 31, 2000.

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

          (2)  Financial  Statement  Schedules:  Financial Data Schedule for the
               year ended December 31, 2001.

          (3)  Exhibits:

          3.1  -Limited  Partnership  Agreement  (filed  as  Exhibit  3.1 to the
               Registration  Statemen  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).



                                       36
<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).

          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).



                                       37
<PAGE>

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

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

          10.9-Letter  from  the   General   Partner   terminating   Bridgewater
               Associates, Inc. (filed herein).

         10.10- Letter from General Partner  terminating Rabar Market Research,
               Inc. (filed herein). (b) Reports on 8-K: None Filed.



                                       38
<PAGE>




                                   SIGNATURES

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


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




                                       39