<p>Notes to Financial Statements
1. Significant Accounting Policies
The Smith Barney International Index Fund ("Fund"), formerly known as Smith Barney EAFE Index Fund, is a
separate series of Smith Barney Investment Trust ("Trust"), a Massachusetts business trust. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end, management investment
company. To achieve its investment objective, the Fund invests substantially all of its investable assets in the
International Index Master Portfolio ("Master Portfolio"), a series of Master Investment Portfolio ("MIP"), a
registered open-end management investment company with the same investment objective as the Fund. The value
of the Fund's investment in the Master Portfolio reflects the Fund's interest in the net assets of the Master
Portfolio. As of December 31, 2000, the value of the Fund's investment in the Master Portfolio was 2.45% of the
outstanding interest of the Master Portfolio.
The financial statements of the Master Portfolio, including the schedule of investments, are contained elsewhere in
this report and should be read in conjunction with the Fund's financial statements.
The preparation of financial statements in accordance with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions regarding assets, liabilities and
changes in net assets resulting from operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining these estimates could cause actual
results to differ.
The significant accounting policies consistently followed by the Fund are in conformity with accounting principles
generally accepted in the United States of America and are as follows: (a) valuation of securities by the Master
Portfolio is discussed in Note 1 of the Master Portfolio's Notes to Financial Statements, which are included
elsewhere in this report; (b) the Fund earn