<PAGE>
DESCRIPTION OF ARTWORK ON REPORT COVER
Small box above fund name showing a huge
bridge.
Smith Barney
MANAGED
MUNICIPALS
FUND INC.
SEMI-ANNUAL REPORT
-------------------
AUGUST 31, 1994
SMITH BARNEY
------------
<PAGE>
MANAGED MUNICIPALS FUND INC.
DEAR SHAREHOLDER:
We are pleased to provide you with the Semi-Annual Report, which includes
the
portfolio of investments for Smith Barney Managed Municipals Fund Inc. for
the
six-month period ended August 31, 1994. During the past six months, in
response
to declining prices for municipal bonds, the Fund's net asset value for
Class A and Class B shares declined to $15.65 from $16.13 per share.
Investors
owning Class A shares received income distributions of $0.48 per share;
investors owning Class B shares received income distributions of $0.43 per
share. The total return for the six-month period was (0.02%) for Class A
shares
and (0.25%) for Class B shares. Further information about the performance
of
your investment during this and previous fiscal periods is available from
the
"Financial Highlights" pages of this report.
THE MUNICIPAL MARKET AND PORTFOLIO STRATEGY
As we explained in our February report, the municipal market had been quite
volatile since late October. In March and April, the market had another
fairly
violent downward move. In our opinion, the worst of the market volatility
is
now behind us, and that volatility will continue to decline as municipal
new
issuance declines and investor demand for tax-exempt income continues to
increase. In 1993, there was $300 billion in municipal issuance; in
contrast,
new issuance in 1994 is likely to be approximately $140 to $170 billion --
a
reduction of nearly 50 percent.
As you will recall, we had defensively positioned the Fund by shortening
its
average maturity, raising cash, and, for the first time in over three
years,
hedging the portfolio using futures contracts. When 30-year Treasury bond
yields
came close to 7.50%, we believed that the worst of the market volatility
was
over and changed our investment stance. We began lengthening the Fund's
average
maturity and began buying high-quality, investment grade bonds.
Callable and pre-refunded bonds are still an ongoing source of concern for
municipal investors. We are working very hard at keeping low (which we
define as
approximately 5%) the number of bonds in the Fund that have call dates
within
the next 15 to 18 months. A large number of callable bonds could
potentially
impact a fund's income stream fairly dramatically if it loses a lot of its
older, higher coupon bonds.
ECONOMIC OVERVIEW
When we last reported to shareholders in February of this year, in the
Annual
Report, the economy had turned in a very powerful fourth quarter. We
expected
then that the economy would experience steady, healthy growth in 1994, and
we
were not disappointed. Between February and the end of August, the economy
did
extremely
1
<PAGE>
well. It has moderated a little since the fourth quarter, but has
nevertheless
shown solid, steady growth.
The continued strength in the economy and some very early signs of an
increase
in inflation caused the Federal Reserve Bank to raise the Federal funds
rate (a
sensitive indicator of the direction of interest rates) from 3% at the
beginning
of 1994 to 4.75%. Long-term interest rates also rose, causing a decline in
the
price of bonds because of the inverse relationship between yield and price.
Between now and the end of the year, we would not be surprised to see the
Federal Reserve Bank raise the Federal funds rate to 5%. Looking forward,
we
expect the economy to slow somewhat over the next three to four months as
the
effect of this significant rise in interest rates works its way through the
economy. Interest rates, both taxable and tax-exempt, appear now to
represent
very fair values and we believe long-term rates will probably move lower
from
where they are right now as the economy begins to slow.
In mid-November of this year, the way Smith Barney mutual funds are listed
in
the newspaper will change to reflect our consolidated mutual fund family.
Before
the consolidation, the various Classes of Smith Barney and Smith Barney
Shearson
mutual funds were listed in the press under separate headings. Now, all
funds
will appear under the heading "Smith Barney." Your Smith Barney Financial
Consultant will be able to help you locate funds in your newspaper.
On a final note, we are pleased to tell you that Joseph Deane, your
portfolio
manager, continues to be recognized in the national press as one of the
leading
municipal bond portfolio managers in the country. In addition to his
frequent
appearances in The Wall Street Journal and The Bond Buyer, Joe recently was
profiled in the October 3rd issue of Barron's.
We appreciate your continued confidence in our management skills during
this
difficult market environment. We look forward to reporting to you in the
Fund's
Annual Report.
Sincerely,
Health B. McLendon Joseph P. Deane
Chairman of the Board Vice President
and Investment Officer and Investment Officer
October 17, 1994
2
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO HIGHLIGHTS (UNAUDITED) AUGUST 31,
1994
<TABLE>
INDUSTRY BREAKDOWN
Pie chart depicting the allocation of the Managed Municipals Fund's
investment securities held at August 31, 1994 by industry classification.
The
pie is broken in pieces representing industries in the following
percentages:
<CAPTION>
INDUSTRY PERCENTAGE
<S> <C>
Utilities 22.2%
Education 5.0%
Water and Sewer 2.6%
Pollution Control Revenue 7.9%
Hospital 8.7%
Housing 10.2%
Other Municipal Bonds, Short-Term
Investments, and Net Other Assets and
Liabilities 19.2%
Transportation 10.7%
General Obligations 13.5%
</TABLE>
<TABLE>
TOP FIVE STATES REPRESENTED
<CAPTION>
State Percentage of Value
- ----------------------------------------------------------------------
<S> <C>
CALIFORNIA 17.7%
TEXAS 9.5
COLORADO 8.8
NEW YORK 8.7
MICHIGAN 6.5
</TABLE>
<TABLE>
SUMMARY OF MUNICIPAL BONDS AND SHORT-TERM
TAX-EXEMPT INVESTMENTS BY COMBINED RATINGS
<CAPTION>
Percentage of
Moody's S&P Market Value
- ---------------------------------------------
<S> <C> <C>
AAA AAA 35.5%
AA AA 24.0
A A 16.1
BAA BBB 10.8
BA BB 2.1
CAA CCC 0.1
D D 0.0
VMIG1/P1 A1 1.5
NR NR 9.9
-----
100.0%
-----
</TABLE>
AVERAGE MATURITY 21 years
3
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) AUGUST 31,
1994
- ---------------------------------------------------------------------------
- -----
KEY TO INSURANCE ABBREVIATIONS
- ---------------------------------------------------------------------------
- -----
AMBAC -- American Municipal Bond Assurance Corporation
BIGI -- Bond Investors Guaranty Insurance
FGIC -- Federal Guaranty Insurance Corporation
FHA -- Federal Housing Administration
MBIA -- Municipal Bond Investors Assurance
VA -- Veterans Administration
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES - 101.3%
ALABAMA - 0.3%
$ 2,000,000 Covington County, Alabama, Anticipation
Warrants, (AMBAC Insured),
5.500% due 9/1/14 Aaa AAA
$ 1,867,500
5,450,000 Fairfield, Alabama, Special Care Facilities
Financing Authority, Health Revenue Bonds,
(Lloyd Nolan Health Care Facility),
9.625% due 10/1/05 NR BBB+
5,831,500
ALASKA - 4.3%
Valdez, Alaska, Marine Terminal Revenue:
62,200,000 Series A,
5.850% due 8/1/25 A1 AA-
55,591,250
Series B:
10,000,000 5.500% due 10/1/28 A1 AA-
8,562,500
37,055,000 5.650% due 12/1/28 A1 AA-
32,469,443
ARIZONA - 0.1%
1,250,000 Arizona Health Facilities Authority,
Hospital System Revenue Bonds, (Phoenix
Baptist Hospital & Medical Center), (MBIA
Insured),
9.750% due 9/1/11 Aaa AAA
1,343,750
490,000 Maricopa County, Arizona, Hospital Revenue,
(Phoenix General Hospital), Series A,
8.500% due 1/1/16 Aaa NR
448,350
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA - 17.7%
$ 6,000,000 Adelanto, California, Improvement Agency,
Tax Allocation, Series B, (FGIC Insured),
5.500% due 12/1/23 Aaa AAA
$ 5,437,500
3,000,000 Anaheim, California, Certificates of
Participation, (Convention Center Project),
Revenue Refunding, (MBIA Insured),
5.500% due 8/1/14 Aaa AAA
2,786,250
4,900,000 Antioch Area Public Facilities Finance
Agency, California, Special Tax Community
Facility,
District #1989-1, (FGIC Insured),
5.000% due 8/1/18 Aaa AAA
4,152,750
California Health Facilities Financing
Authority:
3,695,000 (Catholic Health), Series A, (MBIA Insured),
5.000% due 7/1/08 Aaa AAA
3,339,355
16,500,000 (Kaiser Permanente),
5.550% due 8/15/25 Aa2 AA
14,623,125
12,500,000 (Kaiser Permanente), Series C,
5.600% due 5/1/33 Aa2 AA
11,078,125
3,000,000 California Housing Financing Agency, Revenue
Bonds, Home Mortgage,
5.700% due 2/1/25 Aa AA-
2,677,500
California Statewide Communities,
(St. Joseph's Health):
1,645,000 5.500% due 7/1/09 Aa AA
1,533,962
2,115,000 5.500% due 7/1/10 Aa AA
1,956,375
5,125,000 Calleguas-Las Virginies, California, Public
Financing Authority, Municipal Water
District,
(FGIC Insured),
5.125% due 7/1/21 Aaa AAA
4,330,625
3,000,000 Concord, California, Redevelopment Agency,
Central Concord Redevelopment Project,
(AMBAC Insured),
5.250% due 7/1/19 Aaa AAA
2,598,750
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
$ 15,215,000 Corona, California, Redevelopment Agency,
Area A, Series A, (FGIC Insured),
5.500% due 9/1/24 Aaa AAA
$ 13,693,500
18,635,000 Culver City, California, Redevelopment
Financing Authority, (AMBAC Insured),
5.000% due 11/1/23 Aaa AAA
15,327,287
Desert Sands, California, Unified School
District, Certificates of Participation,
(Measure "0" Project), Series C:
7,705,000 5.000% due 3/1/03 A NR
7,165,650
1,000,000 5.100% due 8/1/04 A NR
925,000
East Bay, California, Utility District,
Water System:
5,000,000 6.000% due 6/1/20 A1 AA-
4,850,000
2,850,000 (MBIA Insured),
5.000% due 6/1/21 Aaa AAA
2,365,500
4,000,000 Fresno, California, Health Facilities
Revenue, (Holy Cross Health Systems
Corporation),
5.625% due 12/1/15 A1 AA-
3,600,000
4,200,000 Hawthorne, California, Community
Redevelopment, Project Area 2,
6.700% due 9/1/20 Baa NR
3,995,250
2,000,000 Huntington Beach, California, Certificates
of Participation, (Civic Center Refinancing
Project), (AMBAC Insured),
5.500% due 8/1/16 Aaa AAA
1,845,000
5,650,000 Irvine Ranch, California, Water District,
8.250% due 8/15/23 NR BBB
6,094,937
10,000,000 Long Beach, California, Financing Authority,
Revenue Bonds, (AMBAC Insured),
5.500% due 11/1/22 Aaa AAA
9,037,500
Los Angeles, California, Convention &
Exhibit Center,
Series A, (MBIA Insured):
15,000,000 5.375% due 8/15/18 Aaa AAA
13,293,750
15,735,000 5.125% due 8/15/21 Aaa AAA
13,256,738
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
$ 1,000,000 Los Angeles, California, Regional Airports
Improvement Project,
6.800% due 1/1/27 NR A-
$ 1,007,500
Los Angeles, California, Wastewater Systems,
Revenue Bonds:
Series A, (MBIA Insured):
7,690,000 5.800% due 6/1/21 Aaa AAA
7,267,050
21,500,000 5.875% due 6/1/24 Aaa AAA
20,505,625
Series B, (MBIA Insured):
2,375,000 5.600% due 6/1/20 Aaa AAA
2,187,968
2,960,000 5.700% due 6/1/23 Aaa AAA
2,756,500
15,030,000 Los Angeles County, California, Metropolitan
Transportation Authority Sales Tax Revenue,
Series B, (AMBAC Insured),
5.250% due 7/1/23 Aaa AAA
12,888,225
Los Angeles County, Metropolitan
Transportation, Sales Tax Revenue, Series A:
7,500,000 (MBIA Insured),
5.625% due 7/1/10 Aaa AAA
6,946,875
20,490,000 (FGIC Insured),
5.000% due 7/1/21 Aaa AAA
17,006,700
50,000 Northern California Power Agency, Public
Power Revenue Bonds, (Geothermal Project No.
3), Series 1984A, Prerefunded 7/1/95,
11.500% due 7/1/10 Aaa AAA
51,500
2,000,000 Northern California, Ore Transmission,
Series A, (MBIA Insured),
5.250% due 5/1/20 Aaa AAA
1,732,500
4,975,000 Ontario, California, Redevelopment Financing
Authority, Project #1, (MBIA Insured),
5.500% due 8/1/18 Aaa AAA
4,564,562
1,555,000 Orange County, California, Development
Agency, Tax Allocation Refunding, Santa Anna
Heights Project,
6.100% due 9/1/07 Baa1 BBB
1,520,013
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
$ 3,000,000 Otay, California, Water District,
Certificates of Participation, (Water
Facilities Project),
(MBIA Insured),
5.700% due 9/1/23 Aaa AAA
$ 2,782,500
3,000,000 Oxnard, California, Financing Authority,
(FGIC Insured),
5.500% due 1/6/14 Aaa AAA
2,790,000
4,100,000 Palmdale, California, Water District,
Certificates of Participation, Littlerock
Dam Project, Series A,
(MBIA Insured),
5.600% due 10/1/17 Aaa AAA
3,797,625
4,390,000 Pasadena, California, Certificates of
Participation, Refunding & Capital Projects,
(AMBAC Insured),
5.000% due 2/1/16 Aaa AAA
3,747,962
2,000,000 Pittsburg, California, Public Wastewater
Revenue, Series A, (FGIC Insured),
5.375% due 6/1/22 Aaa AAA
1,755,000
Placer University High School District,
California Certificates of Participation,
Series A:
160,000 5.550% due 3/1/02 Baa1 NR
158,200
165,000 5.650% due 3/1/03 Baa1 NR
162,938
175,000 5.750% due 3/1/04 Baa1 NR
172,594
2,940,000 Pleasanton, California, Joint Powers
Financing Authority,
6.150% due 9/2/12 Baa NR
2,815,050
3,030,000 Redding, California, Joint Powers Financing,
Series A,
5.500% due 1/1/13 A BBB+
2,658,825
Sacramento, California, Municipal Utility
District:
4,000,000 Series D, (MBIA Insured),
5.250% due 11/15/20 Aaa AAA
3,455,000
4,185,000 Series G, (MBIA Insured),
4.750% due 9/1/21 Aaa AAA
3,300,918
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
$ 2,000,000 San Buenaventura, California, Certificates
of Participation, (Capital Improvement
Project),
(AMBAC Insured),
5.500% due 1/1/17 Aaa AAA
$ 1,840,000
3,500,000 San Diego, California, MTDB Authority
Revenue,
(Old Town Long-Term Rail Transit Extension),
5.300% due 6/1/18 Aa AA-
3,128,125
San Francisco, California, City and County
Redevelopment Agency -- Multi-family,
(South Beach Project):
7,500,000 5.500% due 3/1/14 Aaa NR
6,937,500
10,000,000 Sewer Refunding Bonds, (AMBAC Insured),
5.500% due 10/1/15 Aaa AAA
9,175,000
9,135,000 Sewer Revenue, (FGIC Insured),
5.375% due 10/1/22 Aaa AAA
8,073,055
San Joaquin Hills, California,
Transportation Authority:
43,330,000 Zero Coupon due 1/1/14 NR NR
10,453,362
10,435,000 Zero Coupon due 1/1/16 NR NR
2,165,263
18,000,000 Zero Coupon due 1/1/17 NR NR
3,465,000
23,975,000 Zero Coupon due 1/1/19 NR NR
3,895,938
26,210,000 Zero Coupon due 1/1/20 NR NR
3,964,262
72,685,000 Zero Coupon due 1/1/21 NR NR
10,175,900
49,225,000 Zero Coupon due 1/1/22 NR NR
6,399,250
108,260,000 Zero Coupon due 1/1/24 NR NR
12,179,250
33,100,000 Zero Coupon due 1/1/25 NR NR
3,434,125
30,000,000 Zero Coupon due 1/1/26 NR NR
2,887,500
2,000,000 Santa Clara, California, Redevelopment
Agency Project, Tax Allocation, (Bayshore
North Project), (AMBAC Insured),
5.750% due 7/1/14 Aaa AAA
1,915,000
8,000,000 Santa Margarita/Dana Point Authority,
California Revenue Bond, (MBIA Insured),
5.750% due 8/1/20 Aaa AAA
7,550,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
Sierra, California, Unified School District,
Certificates of Participation:
$ 395,000 5.450% due 3/1/02 Baa NR
$ 378,705
405,000 5.550% due 3/1/03 Baa NR
386,775
335,000 5.650% due 3/1/04 Baa NR
318,669
585,000 5.750% due 3/1/05 Baa NR
554,287
3,000,000 Sonoma County, California, Certificates of
Participation, (Detention Facilities
Improvement Project),
5.000% due 11/15/17 A1 A+
2,467,500
3,000,000 South Coast, California, Air Quality
Management, Installment Sale's Headquarters,
(AMBAC Insured),
5.500% due 8/1/14 Aaa AAA
2,805,000
South Napa, California, Waste Management
Facilities, Solid Waste Transfer Facility
Project:
1,345,000 6.000% due 2/15/04 Baa1 NR
1,314,738
5,000,000 6.500% due 2/15/14 Baa1 NR
5,006,250
5,500,000 South Orange County, California, Special Tax
Revenue, Series A, (MBIA Insured),
6.000% due 9/1/18 Aaa AAA
5,396,875
11,000,000 Southern California Public Power Authority,
Series A, Palo Verde Project,
5.000% due 7/1/15 Aa AA
9,336,250
7,000,000 San Juan Unit, Series A, (MBIA Insured),
5.000% due 1/1/20 Aaa AAA
5,836,250
2,200,000 Stockton, California, Health Facilities,
Revenue Bonds, St. Joseph Medical Center,
(MBIA Insured),
5.500% due 6/1/23 Aaa AAA
1,960,750
9,000,000 University of California, Revenue Services
Multipurpose Projects, Series C, (AMBAC
Insured),
5.000% due 9/1/23 Aaa AAA
7,425,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
COLORADO (CONTINUED)
COLORADO - 8.8%
$ 4,000,000 Colorado Health Facilities Authority
Revenue, (Porter Memorial Hospital),
9.625% due 2/1/15 Aaa NR
$ 4,178,240
5,000 Colorado Housing Finance Authority, Single
Family Revenue, Series 1985A,
10.250% due 9/1/16 Aa NR
5,150
12,765,000 Colorado Springs, Colorado, Airport Revenue,
Series A,
7.000% due 1/1/22 NR BBB
13,068,169
628,000,000 Dawson Ridge, Colorado, Metropolitan
District No. 1, (Escrowed in U.S. Treasury
Securities),
Zero Coupon due 10/1/22 Aaa NR
88,705,000
Denver, Colorado, City & County Airport
Revenue,
Series A:
26,500,000 14.000% due 11/15/08 Baa BB
40,876,250
13,500,000 8.000% due 11/15/25 Baa BB
13,651,875
Series C:
3,500,000 6.750% due 11/15/13 Baa BB
3,220,000
12,035,000 6.750% due 11/15/22 Baa BB
10,801,412
Series D,
22,425,000 7.000% due 11/15/25 Baa BB
20,715,094
1,600,000 East Cherry Creek Valley, Colorado, Water &
Sanitation District, Revenue Bonds,
(Arapahoe County),
10.125% due 12/1/00 Baa1 A-
1,766,000
CONNECTICUT - 0.4%
Connecticut State Housing Finance Authority:
2,000,000 6.000% due 5/15/08 Aa AA
1,995,000
2,000,000 6.050% due 5/15/09 Aa AA
1,995,000
5,000,000 6.350% due 5/15/17 Aa AA
4,993,750
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
FLORIDA - 3.9%
Broward County, Florida, Public Improvement
Revenue, General Obligation Bonds:
$ 1,000,000 12.500% due 1/1/02 Aa AA
$ 1,428,750
1,250,000 12.500% due 1/1/03 Aa AA
1,834,375
1,500,000 12.500% due 1/1/04 Aa AA
2,251,875
1,750,000 12.500% due 1/1/05 Aa AA
2,679,687
2,000,000 12.500% due 1/1/06 Aa AA
3,112,500
14,000,000 Florida Housing Finance Agency, Single
Family Mortgage, Series B,
6.650% due 7/1/26 Aa AA
14,105,000
Florida State Board of Education, General
Obligation Bonds, Capital Outlay:
9,000,000 Series C,
5.850% due 6/1/18 Aa AA
8,640,000
12,100,000 Series D,
5.125% due 6/1/18 Aa AA
10,451,375
4,900,000 Series E,
5.250% due 6/1/23 Aa AA
4,238,500
3,000,000 Hillsborough County, Florida, Industrial
Development Authority, Pollution Control
Revenue Bonds, (Tampa Electric Company
Project),
9.900% due 2/1/14 Aa2 AA-
3,150,000
3,000,000 Jacksonville, Florida, Port Authority,
Industrial Development, Pollution Control
Revenue Bonds, (Florida Power & Light
Company Project),
Series 1984A,
9.625% due 6/1/19 A2 A
3,191,250
9,800,000 Orlando, Florida, Utility Commission, Water
and Electric Revenue,
5.000% due 10/1/20 Aa AA-
8,134,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
FLORIDA (CONTINUED)
$ 5,000,000 Orlando, Florida, Utility Commission, Water
&
Electric Revenue, Series B,
5.250% due 10/1/23 Aa AA-
$ 4,281,250
Seminole County, Florida, School Board,
Certificates of Participation, Series A,
(MBIA Insured):
1,750,000 6.125% due 7/1/14 Aaa AAA
1,743,438
2,500,000 6.125% due 7/1/19 Aaa AAA
2,456,250
St. Lucie County, Florida, Pollution Control
Revenue, (Florida Power & Light Company
Project):
2,000,000 11.000% due 10/1/19 A2 A+
2,070,000
3,500,000 10.000% due 4/1/20 A2 A
3,675,000
3,615,000 Tampa, Florida, Parking Facilities Revenue,
Refunding Tax, (AMBAC Insured),
5.500% due 10/1/10 Aaa AAA
3,438,768
Tampa, Florida, Revenue Bonds, (Florida
Aquarium Inc., Project):
3,000,000 7.550% due 5/1/12 NR NR
3,213,750
3,000,000 7.750% due 5/1/27 NR NR
3,221,250
GEORGIA - 3.8%
1,500,000 Appling County, Georgia, Development
Authority, Pollution Control Revenue Bonds,
(Oglethorpe Power Corporation, Hatch
Project),
9.875% due 1/1/10 A3 AA-
1,554,375
30,000,000 Atlanta, Georgia, Airport Facilities,
Revenue Bonds Series B, (AMBAC Insured),
6.000% due 1/1/21 Aaa AAA
29,062,500
580,000 Brunswick, Georgia, Housing Authority,
Multifamily Housing Revenue , (Cypress
Mill), (FHA Insured),
9.750% due 8/1/26 NR AAA
617,700
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
GEORGIA (CONTINUED)
$ 1,000,000 Burke County, Georgia, Development
Authority,
Pollution Control Revenue Bonds, (Georgia
Power
Plant Vogtle Project),
11.750% due 11/10/14 Baa2 BBB-
$ 1,031,250
47,700,000 Colquitt County, Georgia, Development
Authority Revenue, (Escrowed in 100% U.S.
Treasury Securities),
Zero Coupon due 12/1/21 Aaa NR
7,155,000
3,100,000 Fulton De Kalb, Georgia, Hospital Authority
Revenue, (MBIA Insured),
5.500% due 1/1/20 Aaa AAA
2,817,125
Metropolitan Atlanta Rapid Transit
Authority, Sales Tax Revenue, Series A,
(AMBAC Insured):
7,420,000 5.125% due 7/1/17 Aaa AAA
6,650,175
6,075,000 5.125% due 7/1/18 Aaa AAA
5,437,125
7,100,000 Monroe County, Georgia, Development
Authority, Pollution Control Revenue Bonds,
(Georgia Power Company, Scherer Project),
10.500% due 9/1/15 A2 A-
7,632,500
54,665,000 Richmond County, Georgia, Development
Authority Revenue, (Escrowed to Maturity in
U.S. Treasury Securities),
Zero Coupon due 12/1/21 Aaa NR
8,199,750
78,675,000 Savannah, Georgia, Economic Development
Authority, (Escrowed to Maturity in U.S.
Treasury Securities),
Zero Coupon due 12/1/21 Aaa NR
11,604,563
20,425,000 Washington, Georgia, Economic Development
Authority, (Wilkes Payroll Company),
(Escrowed to Maturity in U.S. Treasury
Securities),
Zero Coupon due 12/1/21 Aaa NR
3,012,688
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
GUAM - 0.1%
$ 1,500,000 Guam, Government Limited Obligations,
Highway 1985, Series A,
9.250% due 5/1/05 NR AAA
$ 1,582,950
ILLINOIS - 4.5%
1,890,000 Grayslake, Illinois, Multifamily Housing
Authority, (Country Squire Apartments), (FHA
Insured),
9.500% due 12/1/25 NR AA-
1,932,525
Illinois Educational Facilities Authority
Revenue:
3,500,000 (Chicago Osteopathic College),
9.625% due 7/1/05 NR BBB+
3,640,000
5,785,000 (Northwestern University),
5.375% due 12/1/21 Aa AA-
5,076,337
10,000,000 (University of Chicago),
5.700% due 12/1/25 Aaa AA
9,200,000
2,050,000 (Wesleyan University),
5.625% due 9/1/18 A1 A
1,911,625
Illinois Health Facilities Authority,
Revenue Bonds:
2,000,000 (MBIA Insured),
6.250% due 5/15/24 Aaa AAA
1,977,500
2,500,000 (Evanston Hospital Corporation), Series A,
9.750% due 9/1/15 Aa AA
2,675,000
8,000,000 (Grant Hospital, Chicago), Series A,
10.300% due 6/1/13 NR BBB+
8,460,000
2,000,000 (Lutheran Institute of Human Ecology),
10.000% due 4/1/15 Aaa NR
2,107,880
990,000 (St. Elizabeth's Hospital, Chicago),
10.125% due 7/1/16 NR NR
1,018,463
4,590,000 Illinois Municipal Electric Agency Power
Supply, System Revenue, Series A, (AMBAC
Insured),
5.750% due 2/1/21 Aaa AAA
4,285,912
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
ILLINOIS (CONTINUED)
Illinois State, General Obligation:
$ 11,860,000 5.875% due 8/1/13 Aa AA-
$ 11,523,532
12,625,000 5.875% due 8/1/14 Aa AA-
12,256,980
12,900,000 5.875% due 8/1/15 Aa AA-
12,441,018
12,900,000 5.875% due 8/1/16 Aa AA-
12,430,440
1,000,000 Illinois State University Revenue Bonds,
Auxiliary Facilities System, Series B, (MBIA
Insured),
9.200% due 10/1/07 Aaa AAA
1,071,250
9,000,000 Western Illinois University, Auxiliary
Facilities, 9.625% due 4/1/16 NR NR
9,464,490
INDIANA - 1.7%
Indiana Bond Bank, State Revenue:
Redevelopment Fund, Series A:
14,040,000 6.250% due 2/1/09 NR A
14,004,901
7,155,000 5.875% due 2/1/10 NR A
6,877,744
2,500,000 6.000% due 2/1/15 NR A
2,393,750
2,205,000 6.000% due 2/1/16 NR A
2,086,480
2,220,000 Special Program, Series A-2,
5.550% due 11/1/10 A NR
2,053,500
Indiana Health Educational Facilities
Authority Revenue, (Riverview Hospital):
245,000 5.800% due 8/1/97 Baa1 NR
243,775
240,000 6.000% due 8/1/98 Baa1 NR
237,600
255,000 6.200% due 8/1/99 Baa1 NR
252,450
305,000 6.500% due 8/1/01 Baa1 NR
304,238
200,000 6.600% due 8/1/02 Baa1 NR
199,500
3,700,000 Indiana Health Facility Financing Authority,
Hospital Revenue, (St. Anthony Medical
Center & Home),
9.250% due 10/1/17 A NR
4,245,750
3,000,000 Indiana State University, Student Fee
Revenue,
Series A,
9.400% due 8/1/05 Aaa AAA
3,172,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
INDIANA (CONTINUED)
Porter Township, Indiana, High School,
Building Corporation, First Mortgage:
$ 365,000 5.750% due 1/15/07 NR A
$ 359,069
380,000 5.750% due 7/15/07 NR A
373,825
390,000 5.850% due 1/15/08 NR A
385,125
445,000 5.850% due 7/15/08 NR A
439,438
IOWA - 0.0%
295,000 Iowa Housing Finance Authority, Single
Family Housing Revenue, Series 1984A,
10.750% due 9/1/04 Aa AA
305,325
KENTUCKY - 1.1%
Jefferson County, Kentucky, Pollution
Control Revenue:
(Louisville Gas & Electric Company), Series
1985A:
3,000,000 9.250% due 7/1/15 Aa2 AA
3,172,500
10,000,000 5.625% due 8/15/19 Aa2 AA
9,250,000
3,000,000 5.450% due 10/15/20 Aa2 AA
2,703,750
1,750,000 Kentucky Development Finance Authority,
Revenue Bonds, (Sisters of Charity, Nazarene
Health),
9.500% due 11/1/13 NR AAA
1,887,812
1,000,000 Kentucky State Property and Building
Revenue, Project No. 56,
6.000% due 9/1/14 A A+
978,750
2,500,000 Louisville, Kentucky, Parking Authority,
River Mortgage Revenue, Refunding and
Improvements,
9.250% due 12/1/15 A A
2,721,875
3,495,000 Louisville & Jefferson County, Kentucky
Metro Sewer District Revenue, (MBIA
Insured),
5.300% due 5/15/19 Aaa AAA
3,119,287
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
LOUISIANA - 1.3%
$ 25,000,000 Lake Charles, Louisiana, (Harbor & Terminal
District Project), Revenue Refunding,
(Panhandle Eastern Corporation),
7.750% due 8/15/22 Baa3 NR
$ 26,843,750
2,750,000 Port of New Orleans, Louisiana, Industrial
Development Revenue, Avondale
Industrial Inc. Project,
6.500% due 6/1/14 NR NR
2,808,437
MAINE - 0.9%
4,150,000 Maine Municipal Bond Bank, Refunding, Series
A,
5.800% due 11/1/20 Aa A+
3,932,125
Maine State Housing Authority, Mortgage
Purchase:
11,000,000 Series A,
5.700% due 11/15/26 A1 AA-
9,762,500
6,400,000 Series C-2,
6.875% due 11/15/24 A1 AA-
6,400,000
MARYLAND - 1.5%
Baltimore County, Maryland, Mortgage
Revenue, (FHA Insured):
3,710,000 (Kingswood Common IV), Series A,
5.850% due 9/1/28 NR AA
3,403,925
1,005,000 Series IIIA,
5.850% due 5/1/26 NR AAA
923,344
2,500,000 Maryland State Community Development
Authority, Housing & Community Development
Program,
(Maryland Housing Finance Pool Insured),
5.900% due 4/1/11 Aa NR
2,446,875
13,100,000 Maryland State Health & Higher Education,
University of Maryland Medical System
Certificates,
(FGIC Insured),
5.000% due 7/1/20 Aaa AAA
11,020,375
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
MARYLAND (CONTINUED)
$ 10,880,000 Maryland State, Industrial Development
Financing, Revenue Bonds, (Holy Cross Health
Systems Corporation),
5.500% due 12/1/15 A1 AA-
$ 9,928,000
5,000,000 Prince George County, Maryland, Housing
Authority, (Templeton Manor), Series A,
(GNMA Insured),
5.750% due 10/20/16 NR AAA
4,637,500
1,000,000 Rockville, Maryland, Mortgage Revenue,
(Summit Apartment Projects), Series A,
(MBIA/FHA Insured),
5.700% due 1/1/26 Aaa AAA
918,750
MASSACHUSETTS - 1.8%
7,000,000 Boston, Massachusetts, Housing Development
Corporation, Mortgage Revenue, Section Eight
Assistance, Series A, (MBIA/FHA Insured),
5.500% due 7/1/24 Aaa AAA
6,387,500
Commonwealth of Massachusetts, Health &
Educational Facilities Authority Revenue:
4,500,000 (Lahey Clinic Medical Center), (MBIA
Insured),
5.375% due 7/1/23 Aaa AAA
3,954,375
2,420,000 (Youville Hospital), Series A, (FHA
Insured),
9.100% due 8/1/15 Aa A
2,622,675
2,285,000 Mass Bay Transportation Authority, Series A,
(MBIA Insured),
5.500% due 3/1/22 Aaa AAA
2,073,637
Massachusetts State, Health and Educational
Facilities Authority:
3,000,000 New England Medical Center, (MBIA Insured),
5.000% due 7/1/13 Aaa AAA
2,535,000
7,535,000 Massachusetts General Hospital, (AMBAC
Insured),
5.250% due 7/1/23 Aaa AAA
6,470,680
Massachusetts State Housing Finance Agency:
2,250,000 6.600% due 12/1/26 Aa A+
2,233,125
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
MASSACHUSETTS (CONTINUED)
Massachusetts State Housing
Finance Agency (continued)
(AMBAC Insured):
$ 4,000,000 6.650% due 7/1/19 Aaa AAA
$ 4,020,000
7,000,000 6.750% due 7/1/28 Aaa AAA
7,035,000
5,000,000 Massachusetts State Turnpike Authority,
Revenue Bonds, Series A, (FGIC Insured),
5.125% due 1/1/23 Aaa AAA
4,243,750
MICHIGAN - 6.5%
2,710,000 Detroit, Michigan, (Convention Facilities
Project), (Cobo Hall Expansion Project),
5.250% due 9/30/12 NR A
2,381,412
11,740,000 Michigan Municipal Bond Authority, Building
& Lease Revenue, Series A, (FGIC Insured),
6.000% due 12/1/13 Aaa AAA
11,622,600
5,225,000 Michigan Public Power Agency, Utility
Revenue,
Series A,
5.250% due 1/1/18 A1 AA-
4,598,000
Michigan State Hospital Finance Authority:
2,495,000 (Daughters of Charity, Providence),
10.000% due 11/1/15 Aa NR
2,688,363
(Harper, Grace, & Huron Valley Hospitals),
Series A:
30,000 10.000% due 10/1/16 A A-
32,100
2,430,000 Prerefunded 10/01/95,
10.000% due 10/1/16 NR AAA
2,621,362
Michigan State Housing Finance Authority,
Section Eight Rental Housing Revenue Bonds:
17,250,000 Series B,
5.700% due 4/1/12 NR A+
16,193,438
3,000,000 Green Project, (FNMA Insured),
5.500% due 1/15/18 NR AAA
2,752,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
MICHIGAN (CONTINUED)
Michigan State Housing Finance Authority,
Section Eight Rental Housing Revenue Bonds:
(continued)
$ 4,000,000 Series D, (FHA/VA Insured), Single Family
Revenue Bonds,
6.850% due 6/1/26 NR AA+
$ 4,020,000
12,000,000 Michigan State Strategic Funding Limited
Obligation, Revenue, Blue Water Fiber
Project,
8.000% due 1/1/12 NR NR
11,820,000
Michigan State, Trunk Line:
10,000,000 Series A, 5.500% due 10/1/21 A1 AA-
8,962,500
4,100,000 Series B, 5.500% due 10/1/21 A1 AA-
3,674,625
56,625,000 Midland County, Michigan, Economic
Development Corporation, Pollution Control
Revenue Bonds, Subordinated Limited
Obligation, Series B,
9.500% due 7/23/09 NR NR
62,287,500
2,700,000 Okemos, Michigan, Public School District,
General Obligation, Capital Appreciation,
(MBIA Insured),
5.500% due 5/1/11 Aaa AAA
2,524,500
South Haven, Michigan, Public Schools,
General Obligation, Refunding, (FGIC
Insured):
1,385,000 5.500% due 5/1/13 Aaa AAA
1,277,663
750,000 5.500% due 5/1/17 Aaa AAA
681,562
4,000,000 Warren, Michigan, Consolidated School
District, General Obligation, Refunding,
(MBIA Insured),
5.500% due 5/1/14 Aaa AAA
3,670,000
5,000,000 Wayne Charter County, Michigan, (Detroit
Metro Airport), Revenue Refunding, Series C,
(MBIA Insured):
5.250% due 12/1/21 Aaa AAA
4,306,250
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
MINNESOTA - 3.8%
$ 4,400,000 Dakota County, Minnesota, Housing
Redevelopment Authority Series, Multifamily
Mortgage Revenue,
9.500% due 6/1/08 NR NR
$ 4,279,000
Minnesota State Housing Finance Agency,
Single Family Mortgage:
4,800,000 6.500% due 1/1/26 Aa AA+
4,872,000
11,000,000 Series F,
6.300% due 7/1/25 Aa AA+
10,972,500
4,250,000 Series H,
6.700% due 1/1/18 Aa AA+
4,324,375
11,850,000 Series M,
6.700% due 7/1/26 Aa AA+
12,027,750
2,000,000 New Ulm, Minnesota, Hospital Facilities
Revenue, (Health Central System Project),
Series C,
10.000% due 10/1/14 A A-
2,177,500
2,200,000 St. Louis Park, Minnesota, Hospital
Facilities Revenue, (Methodist Hospital),
Series B,
(AMBAC Insured),
9.500% due 7/1/08 Aaa AAA
2,334,750
St. Paul, Minnesota, Housing &
Redevelopment Authority:
20,325,000 (Civic Center Project),
5.550% due 11/1/23 A A
18,724,406
21,950,000 Hospital Revenue Bonds, (Healtheast
Project),
Series D,
9.750% due 11/1/17 Baa1 BBB-
24,611,438
1,430,000 St. Paul, Minnesota, Port Authority,
Industrial Development Revenue, Series
1984B,
11.000% due 12/1/13 NR CCC
1,428,213
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
MISSISSIPPI - 0.0%
$ 990,000 Biloxi, Mississippi, Revenue Bonds, (Biloxi
Regional Medical Center), Series A, (FHA
Insured),
10.125% due 8/1/24 NR AAA
$ 1,035,895
MISSOURI - 0.1%
2,970,000 St. Louis County, Missouri, Industrial
Development Authority, Hospital Revenue
Bonds, (Daughters of Charity, DePaul Health
Center),
10.000% due 11/1/15 Aa NR
3,203,888
MONTANA - 1.2%
28,400,000 Montana Board of Investments, Resource
Revenue, Yellowstone Energy LP Project,
7.000% due 12/31/19 NR NR
27,441,500
NEBRASKA - 0.2%
4,000,000 Nebraska Investment Finance Authority,
Single Family Housing Revenue,
6.650% due 3/1/26 NR AAA
4,005,000
NEW HAMPSHIRE - 1.8%
14,000,000 New Hampshire Higher Education & Health
Facilities Revenue, (Mary Hitchcock), (FGIC
Insured),
5.750% due 8/15/23 Aaa AAA
13,002,500
23,500,000 New Hampshire Industrial Development
Authority, Pollution Control Revenue Bonds,
(UTD Illuminating), Series B,
10.750% due 10/1/12 Baa3 BBB-
27,318,750
NEW JERSEY - 1.4%
1,100,000 Camden County, New Jersey, Improvement
Authority, County Guaranteed Lease Revenue
Bond,
(MBIA Insured),
5.900% due 10/1/08 Aaa AAA
1,095,875
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW JERSEY (CONTINUED)
$ 1,500,000 Keansburg, New Jersey, Municipal Utilities
Authority, Revenue Bond, (FGIC Insured),
6.000% due 12/1/19 Aaa AAA
$ 1,490,625
2,300,000 Middlesex County, New Jersey, Certificates
of Participation, (MBIA Insured),
6.125% due 2/15/19 Aaa AAA
2,308,625
4,000,000 Middlesex County, New Jersey, Industrial
Pollution Control Financing Authority,
Revenue Bonds, (Amerada Hess Corporation
Project),
11.625% due 12/1/14 NR NR
4,200,000
5,000,000 New Jersey Economic Development Authority,
Water Facilities Revenue Bond, Hackensack
Water Co., (MBIA Insured),
5.800% due 3/1/24 Aaa AAA
4,787,500
410,000 New Jersey Economic Development Authority,
Revenue Bond, (Levco Route 46 Associates),
11.125% due 12/1/07 A2 NR
419,225
1,800,000 New Jersey Health Care Facilities Financing
Authority, Revenue Bonds, (Mountainside
Hospital), Series A, (FHA Insured),
9.000% due 8/1/25 Aa AA
1,912,500
Salem County, New Jersey, Industrial
Pollution Control, Financing Authority
Revenue Bonds, (Public Service Electric &
Gas Project), Series 1984A:
3,350,000 10.500% due 11/1/14 A2 A
3,450,500
9,650,000 (MBIA Insured),
5.700% due 5/1/28 Aaa AAA
8,890,063
3,500,000 South Jersey Port Corporation, New Jersey,
Revenue, Marine Terminal, Series G,
5.600% due 1/1/23 NR A+
3,224,375
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW MEXICO - 0.1%
$ 1,500,000 Farmington, New Mexico, Utility Systems
Revenue Bonds, (FGIC Insured),
9.750% due 5/15/13 Aaa AAA
$ 1,659,375
NEW YORK - 8.4%
51,970,000 Battery Park City Authority, New York,
Revenue Bond, Series A,
5.800% due 11/1/22 A A
47,812,400
1,270,000 Broome County, New York, Certificates of
Participation, Public Safety Facilities,
(MBIA Insured),
5.250% due 4/1/15 Aaa AAA
1,158,875
2,500,000 New York City, New York, General Obligation,
Series A,
6.200% due 8/1/07 Baa1 A-
2,496,875
15,350,000 New York, New York City, Municipal Water
Finance, Water & Sewer Revenue,
5.500% due 6/15/19 A A-
13,757,438
New York State Dormitory Authority, (Iona
College), (MBIA Insured):
485,000 6.600% due 7/1/07 Aaa AAA
513,494
420,000 6.600% due 7/1/08 Aaa AAA
443,100
555,000 6.600% due 7/1/09 Aaa AAA
588,300
540,000 6.700% due 7/1/10 Aaa AAA
575,775
13,000,000 New York State Energy Research &
Development, Revenue, (Consolidated Edison
Co.),
5.250% due 8/15/20 Aa3 A+
11,196,250
New York State, Local Government
Assistance Corporation:
8,060,000 Series B,
5.500% due 4/1/21 A A
7,223,775
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State, Local Government
Assistance Corporation: (continued)
Series C:
$ 12,300,000 5.500% due 4/1/18 A A
$ 11,162,250
9,000,000 5.500% due 4/1/22 A A
8,055,000
31,250,000 Series D,
5.000% due 4/1/23 A A
25,859,375
32,425,000 Series E,
5.000% due 4/1/21 A A
27,358,594
New York State Medical Care Facilities
Finance Agency Revenue Bonds, Series A:
7,000,000 (Presbyterian Hospital),
5.375% due 2/15/25 Aa AAA
6,125,000
1,500,000 (Nursing Home Insured Mortgage),
10.500% due 1/15/24 NR A-
1,530,000
2,000,000 New York State Refunding General Obligation,
12.000% due 11/15/03 A A-
2,930,000
7,150,000 Triborough Bridge & Tunnel Authority, New
York, General Purpose, Series Q,
5.000% due 1/1/17 Aa A+
6,059,625
14,215,000 Series Y
5.500% due 1/1/17 Aa A+
13,024,494
NORTH CAROLINA - 1.5%
4,500,000 Carteret County, North Carolina,
Certificates of Participation, (Elementary
School Project),
6.500% due 2/1/07 Baa1 BBB+
4,511,250
10,450,000 Charlotte, North Carolina, Certificates of
Participation, Refunding, (AMBAC Insured),
5.250% due 12/1/20 Aaa AAA
9,130,688
2,400,000 Charlotte, North Carolina, Water & Sewer,
General Obligation,
5.900% due 2/1/19 Aaa AAA
2,391,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NORTH CAROLINA (CONTINUED)
$ 2,000,000 Craven, North Carolina, Regional Medical
Authority, Health Care Facilities, (MBIA
Insured),
5.500% due 10/1/23 Aaa AAA
$ 1,820,000
Duplin County, North Carolina, Law
Enforcement & Public Service, Certificates
of Participation,
(FGIC Insured):
2,500,000 5.250% due 8/1/2008 Aaa AAA
2,362,500
1,750,000 5.250% due 8/1/2014 Aaa AAA
1,564,063
4,790,000 North Carolina Housing Finance Agency,
Single Family Revenue, Series Z,
6.600% due 9/1/26 Aa A+
4,795,988
4,300,000 North Carolina Medical Care Commission,
Hospital Revenue Bonds, (Mercy Hospital
Project),
(MBIA Insured)
9.625% due 8/1/2015 NR AAA
4,595,625
Rutherford County, North Carolina,
Certificates Of Participation, Public
Improvement, (FGIC Insured):
1,380,000 6.100% due 6/1/13 Aaa AAA
1,381,725
1,060,000 6.250% due 6/1/23 Aaa AAA
1,065,300
NORTH DAKOTA - 0.1%
1,000,000 Grand Forks, North Dakota, Housing
Facilities Revenue, (Senior United Health
Resources),
9.250% due 12/1/10 NR NR
1,153,750
OHIO - 1.4%
3,000,000 Akron, Bath and Copley, Ohio, Joint
Township, Hospital Revenue Bonds, (Akron
City
Hospital Project),
8.875% due 11/15/07 Aaa NR
3,435,000
2,000,000 Cuyahoga County, Ohio, Hospital Facility
Authority, (Brentwood Hospital Project),
Revenue Bond,
9.625% due 11/1/14 Baa1 NR
2,137,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
OHIO (CONTINUED)
Ohio State Water Development Authority,
Pollution Control Revenue, (AMBAC Insured):
$ 2,000,000 6.150% due 8/1/23 Aaa AAA
$ 1,992,500
515,000 Prerefunded,
9.375% due 12/1/18 Aaa AAA
550,180
310,000 (SafeWater Series),
9.250% due 12/1/12 Aaa AAA
329,763
Unrefunded Balance:
165,000 9.250% due 12/1/12 Aaa AAA
175,519
160,000 9.375% due 12/1/18 Aaa AAA
170,000
3,300,000 Ohio State Water Development Authority,
Pollution Control Facilities Revenue,
(Pennsylvania Power Company Project),
12.000% due 12/1/14 Baa2 BBB-
3,463,350
State of Ohio, Air Quality Development
Authority, Pollution Control Revenue,
(Cincinnati Gas & Electric):
3,000,000 10.125% due 12/1/15 Baa1 BBB+
3,258,750
17,800,000 5.625% due 11/15/29 Aaa AAA
16,220,250
540,000 Warren, Ohio, Hospital Revenue, (Warren
General Hospital Association Inc. Project),
10.800% due 6/1/14 NR BBB
576,995
OKLAHOMA - 0.2%
170,000 Oklahoma Housing Finance Agency, Single
Family Revenue,
Series 84A, (MBIA Insured),
10.400% due 9/1/08 Aaa AAA
175,100
Tulsa, Oklahoma, Industrial Authority
Hospital Revenue, (St. John Medical Center):
2,000,000 6.250% due 2/15/14 Aa AA
1,972,500
1,975,000 6.250% due 2/15/17 Aa AA
1,930,562
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
OREGON - 0.2%
Clackamas County, Oregon, Hospital Facility
Authority, Revenue Bonds:
$ 1,750,000 (Kaiser Permanente),
9.375% due 11/1/15 NR AA
$ 1,872,500
1,000,000 (Sisters of Providence Hospital),
9.625% due 10/1/05 Aaa AAA
1,076,250
1,500,000 Oregon Veterans Welfare, General Obligation
Bonds, Series L,
12.500% due 9/1/06 Aaa AAA
1,758,750
PENNSYLVANIA - 3.6%
2,500,000 Abington Heights School District,
Pennsylvania, General Obligation, (FGIC
Insured),
5.100% due 3/15/18 Aaa AAA
2,165,625
Beaver County, Pennsylvania, Industrial
Development Authority, Pollution Control
Revenue,
(Cleveland Electric Illumination Company):
1,000,000 11.125% due 11/15/14 Ba2 BB
1,038,750
10,500,000 10.500% due 9/1/15 Ba2 BB
11,143,125
7,000,000 (Ohio Edison Company, Beaver Valley), Series
A,
10.500% due 10/1/15 Baa2 BBB-
7,516,250
2,000,000 Berks County, Pennsylvania, Municipal
Authority Hospital Revenue, (Franciscan
Health System, St. Joseph's Hospital), (BIGI
Insured),
9.625% due 6/15/15 Aaa AAA
2,126,640
1,000,000 Chester County, Pennsylvania, Hospital
Authority Revenue Bonds, (Bryn Mawr
Rehabilitation Hospital),
10.000% due 7/1/14 NR AAA
1,068,610
1,659,000 Delaware County, Pennsylvania, Hospital
Authority Revenue Bonds, (Sacred Heart
Medical Center),
(in default),
9.750% due 9/1/11** NR D
995,400
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
PENNSYLVANIA (CONTINUED)
$ 2,760,000 Lancaster County, Pennsylvania, Hospital
Authority Revenue Bonds, (AMBAC Insured),
5.000% due 11/15/20 Aaa AAA
$ 2,318,400
600,000 Lehigh County, Pennsylvania, Industrial
Development Authority, Pollution Control
Revenue, (Pennsylvania Power & Light
Company), Series B,
10.625% due 9/1/14 A2 A
624,750
2,000,000 Monroeville, Pennsylvania, Hospital
Authority Revenue, (Forbes Health System),
Series 1985A,
9.700% due 10/1/13 NR AAA
2,155,000
2,500,000 Montgomery County, Pennsylvania, Industrial
Development Authority, Pollution Control
Revenue, (Philadelphia Electric), Series B,
10.500% due 10/1/14 Baa2 BBB+
2,734,375
Pennsylvania Economic Development Financing,
Revenue, (Northhampton Generating Project),
Series C:
2,000,000 6.875% due 1/1/11 NR NR
1,895,000
12,000,000 6.950% due 1/1/21 NR NR
11,190,000
4,000,000 Pennsylvania State, Industrial Authority,
Revenue Bonds, (AMBAC Insured),
5.500% due 1/1/14 Aaa AAA
3,710,000
Pennsylvania State, Certificates of
Participation:
2,000,000 (AMBAC Insured),
5.250% due 7/1/10 Aaa AAA
1,820,000
Series A:
17,495,000 5.400% due 7/1/09 Aaa AAA
16,314,088
3,500,000 5.000% due 7/1/15 Aaa AAA
2,992,500
3,000,000 Philadelphia, Pennsylvania, Gas Works
Revenue, 14th Series,
5.500% due 7/1/04 Baa1 BBB
2,932,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
PENNSYLVANIA (CONTINUED)
Philadelphia, Pennsylvania, School District,
Series A, (MBIA Insured):
$ 1,000,000 5.750% due 7/1/07 Aaa AAA
$ 980,000
1,000,000 5.800% due 7/1/08 Aaa AAA
980,000
2,545,000 University Area, Pennsylvania, Joint
Authority, Sewer Revenue, (MBIA Insured),
4.750% due 11/1/20 Aaa AAA
2,125,075
1,500,000 Wayne County, Pennsylvania, Hospital &
Health Facility, Revenue, (MBIA Insured),
6.375% due 7/1/24 Aaa AAA
1,522,500
RHODE ISLAND - 0.1%
Rhode Island Depositors Economic
Corporation, Special Obligation, Series B,
(MBIA Insured):
915,000 5.700% due 8/1/08 Aaa AAA
892,125
1,850,000 5.800% due 8/1/09 Aaa AAA
1,789,875
SOUTH CAROLINA - 1.0%
Berkeley County, South Carolina, School
District Certificates of Participation,
(AMBAC Insured):
1,000,000 6.250% due 2/1/12 Aaa AAA
1,010,000
1,700,000 6.300% due 2/1/16 Aaa AAA
1,717,000
North Charleston, South Carolina,
Certificates of Participation, (Coliseum
Capital Improvement Project), (FGIC
Insured):
5,315,000 6.000% due 1/1/11 Aaa AAA
5,241,919
1,315,000 6.000% due 1/1/16 Aaa AAA
1,287,056
Orangeburg County, South Carolina, General
Obligation Bonds, (School District No. 4):
350,000 9.750% due 2/1/01 Aaa A
365,792
400,000 9.750% due 2/1/02 Aaa A
418,016
450,000 9.750% due 2/1/03 Aaa A
470,304
500,000 9.750% due 2/1/04 Aaa A
522,560
250,000 9.750% due 2/1/05 Aaa A
261,280
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
SOUTH CAROLINA (CONTINUED)
$ 3,500,000 South Carolina State, Public Service
Revenue,
Series C, (FGIC Insured),
5.000% due 1/1/25 Aaa AAA
$ 2,861,250
8,835,000 York County, South Carolina, Industrial
Development Revenue, (Hoechst Celanese),
5.700% due 1/1/24 A2 AA-
7,940,456
SOUTH DAKOTA - 0.2%
South Dakota, Housing Development Authority,
Homeownership Mortgage, Series D:
3,350,000 6.650% due 5/1/14 Aa1 AA+
3,437,937
1,000,000 6.150% due 5/1/26 Aa1 AA+
937,500
TENNESSEE - 0.2%
Chattanooga, Tennessee, Health, Educational
& Housing Facility Board, Mortgage Revenue,
(Red Bank Healthcare), (FHA Insured):
90,000 11.250% due 2/1/00 NR A
112,838
90,000 11.250% due 8/1/00 NR A
114,638
100,000 11.250% due 2/1/01 NR A
128,750
105,000 11.250% due 8/1/01 NR A
137,025
110,000 11.250% due 2/1/02 NR A
144,788
115,000 11.250% due 8/1/02 NR A
153,238
120,000 11.250% due 2/1/03 NR A
160,650
130,000 11.250% due 8/1/03 NR A
176,150
135,000 11.250% due 2/1/04 NR A
182,756
145,000 11.250% due 8/1/04 NR A
198,288
150,000 11.250% due 2/1/05 NR A
207,188
180,000 11.250% due 8/1/05 NR A
250,875
1,500,000 Harpeth Valley, Tennessee, Utilities
Improvement Revenue, (Davison & Williamson
Counties),
5.500% due 9/1/11 A1 A
1,415,625
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
TENNESSEE (CONTINUED)
$ 1,500,000 Johnson City, Tennessee, Health and
Educational Facilities, (Johnson County
Medical Center),
(MBIA Insured),
5.250% due 7/1/16 Aaa AAA
$ 1,325,625
TEXAS - 9.1%
1,500,000 Abilene, Texas, Higher Education Facilities
Corporation, Higher Education Revenue,
(Abilene Christian University Project),
10.500% due 4/1/10 NR AAA
1,592,535
50,030,000 Austin, Texas, Water, Sewer & Electric
Authority, Revenue Bonds,
14.000% due 11/15/01 A A
69,854,388
Carroll, Texas, Independent School District,
Permanent School Fund Guarantee:
1,250,000 6.125% due 2/15/19 Aaa AAA
1,232,813
8,770,000 6.200% due 2/15/26 Aaa AAA
8,671,338
Clear Creek, Texas, Independent School
District, Capital Appreciation, General
Obligation Bonds, Permanent School Fund
Guarantee:
1,915,000 5.500% due 2/1/10 Aaa AAA
1,824,038
1,265,000 5.500% due 2/1/11 Aaa AAA
1,195,425
1,120,000 Cypress-Fairbanks, Texas, Independent School
District Bonds, Permanent School Fund
Guarantee,
5.250% due 2/15/20 Aaa AAA
981,400
2,000,000 Dallas-Fort Worth, Texas, Regional Airport
Revenue, Joint Series 1984A,
11.000% due 11/1/12 A1 A
2,074,560
8,345,000 Grapevine -- Colleyville Independent School
District, Texas, Permanent School Fund
Guarantee,
5.125% due 8/15/22 Aaa AAA
7,176,700
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
TEXAS (CONTINUED)
Harris County, Texas, General Obligation
Bonds:
$ 2,000,000 5.125% due 10/1/12 Aa AA+
$ 1,785,000
2,000,000 5.125% due 10/1/14 Aa AA+
1,760,000
Harris County, Texas, Flood Control, General
Obligation:
1,150,000 5.125% due 10/1/14 Aa AA+
1,012,000
1,250,000 5.125% due 10/1/15 Aa AA+
1,090,625
1,535,000 Harris County, Texas, Health & Educational
Facilities Development Corporation, Hospital
Revenue Bonds, (Memorial Hospital Systems
Project), Series A,
10.875% due 12/1/14 A A-
1,605,994
1,000,000 Harris County, Texas, Industrial Development
Corporation, Revenue Refunding, (Cargill
Inc.),
7.000% due 10/1/15 Aa3 NR
1,058,750
Harris County, Texas, Refunding, Toll Road:
2,600,000 (FGIC Insured),
5.375% due 8/15/20 Aaa AAA
20,057,500
9,000,000 Series A,
6.125% due 8/15/20 Aa AA+
8,831,250
18,400,000 Houston, Texas, Water & Sewer Systems
Revenue, Compound Interest, Refunding Junior
Lien,
Series C, (MBIA Insured),
5.750% due 12/1/15 Aaa AAA
17,549,000
Matagorda County, Texas, Pollution Control
Revenue, Navigation District No. 1:
3,000,000 (Central Power & Light Company Project),
9.750% due 7/1/15 A2 A
3,202,500
2,500,000 (Houston Lighting & Power Co. Project),
Series A,
10.000% due 10/15/15 A3 A-
2,690,625
10,395,000 Port of Port Arthur, Texas, Naval District,
General Obligation, (AMBAC Insured),
6.125% due 3/1/19 Aaa AAA
10,317,038
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
TEXAS (CONTINUED)
Sam Rayburn, Texas, Municipal Power Agency:
$ 5,700,000 5.750% due 10/1/08 Baa BB
$ 5,137,125
10,000,000 6.500% due 10/1/08 Baa BB
9,637,500
12,560,000 6.750% due 10/1/14 Baa BB
12,198,900
12,835,000 5.500% due 10/1/20 Baa BB
10,251,956
835,000 Texas Housing Finance Agency, Single Family
Mortgage Revenue, Series 1984A,
10.500% due 9/1/09 Aa A+
859,006
UTAH - 0.2%
5,000,000 Utah State Housing Finance Agency, Issue A,
5.700% due 7/1/26 Aa NR
4,493,750
25,000 Utah State Housing Finance Agency, Single
Family Mortgage Revenue, Private Insured
Mortgage,
10.750% due 7/1/08 Aa AA
25,750
VERMONT - 0.0%
480,000 Vermont Housing Finance Agency, Multifamily
Housing Revenue,
12.750% due 2/15/14 A1 A+
482,400
VIRGINIA - 2.6%
2,500,000 Augusta County, Virginia, Industrial
Development Authority, (Augusta Hospital
Corporation),
(AMBAC Insured),
5.500% due 9/1/15 Aaa AAA
2,287,500
6,000,000 Fairfax County, Virginia, Economic
Development, Lease Government Center,
5.250% due 11/15/18 Aa AA
5,227,500
2,500,000 Hampton, Virginia, Museum Revenue,
Refunding,
5.250% due 1/1/09 NR A-
2,290,625
16,000,000 Metropolitan Washington DC Airport
Authority, Series A, (MBIA Insured),
5.500% due 10/1/24 Aaa AAA
14,180,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
VIRGINIA (CONTINUED)
$ 2,175,000 Poquoson, Virginia, General Obligation
Bonds,
Series A,
5.375% due 1/1/16 A1 A
$ 1,981,969
Portsmouth, Virginia, Public Utilities
Refunding:
2,000,000 5.450% due 8/1/08 A1 AA-
1,955,000
1,500,000 5.500% due 8/1/13 A1 AA-
1,402,500
26,220,000 Roansake, Virginia, Industrial Development
Authority, Revenue Bonds, Series A, Roansake
Memorial Hospital, (MBIA Insured),
5.000% due 7/1/24 Aaa AAA
21,565,950
2,500,000 Southeastern Virginia, Public Service
Authority, Guaranteed Revenue, Regional
Solid Waste System, Virginia Senior Revenue
Bonds,
10.500% due 7/1/15 Aaa AAA
2,678,125
1,540,000 University of Virginia, University Revenue,
Series A,
5.375% due 6/1/10 Aa AA+
1,455,300
1,500,000 Virginia College, Virginia, Building
Authority, Hampton University Project,
5.750% due 4/1/14 NR A+
1,404,375
2,955,000 Virginia State Housing Development
Authority,
Series C,
5.600% due 1/1/15 Aa NR
2,648,419
WASHINGTON - 3.5%
3,000,000 Douglas County, Washington, Public
Utilities, Hydro Electric Revenue, Series A,
6.200% due 9/1/18 A A+
2,940,000
Federal Way, Washington, Refunding,
General Obligation:
475,000 5.700% due 12/1/09 A1 NR
454,812
510,000 5.700% due 12/1/10 A1 NR
487,688
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
WASHINGTON (CONTINUED)
$ 150,000 Washington State Housing Commission, Single
Family Mortgage Revenue, Series 1984A,
10.875% due 1/1/11 A1 A+
$ 154,875
Washington State, Public Power Supply
Systems:
Revenue Bonds, (Project #2), Series A:
14,965,000 5.375% due 7/1/10 Aa AA
13,636,856
10,000,000 5.375% due 7/1/11 Aa AA
9,025,000
5,000,000 5.375% due 7/1/15 Aa AA
4,375,000
(Nuclear Project #3), Revenue Refunding,
Series B:
24,000,000 5.500% due 7/1/17 Aa AA
21,120,000
29,220,000 5.500% due 7/1/18 Aa AA
25,640,550
WEST VIRGINIA - 1.1%
25,000,000 Marion County, West Virginia, County
Commissioner, Solid Waste Disposal Facility,
(American Power, Paper Recycling Project),
7.750% due 12/1/11 NR NR
24,562,500
WISCONSIN - 0.6%
2,000,000 Wisconsin Housing & Economic Development
Authority, Home Ownership Revenue, Series A,
6.450% due 3/1/17 Aa AA
2,007,500
10,955,000 Wisconsin State Health & Educational
Facilities Authority, Revenue Bonds,
(Aurora),
(MBIA Insured),
5.250% due 8/15/23 Aaa AAA
9,352,831
1,500,000 Wisconsin State Health Facility Authority,
Revenue Bonds, (Columbia Hospital), (BIGI
Insured),
9.500% due 6/1/12 Aaa AAA
1,588,125
- ---------------------------------------------------------------------------
- ----------
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $2,259,550,335)
2,272,758,248
- ---------------------------------------------------------------------------
- ----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
SHORT-TERM TAX-EXEMPT INVESTMENTS - 1.5%
ARIZONA - 0.2%
$ 300,000 Maricopa County, Arizona, Pollution Control,
3.000% due 5/1/29+ P-1 A-1+
$ 300,000
1,200,000 Maricopa County, Arizona, Series E,
3.050% due 5/1/29+ P-1 A-1
1,200,000
4,100,000 Pinal County, Arizona, Industrial
Development Agency, Pollution Control
Revenue,
3.250% due 12/1/09+ P-1 A-1+
4,100,000
CALIFORNIA - 0.0%
100,000 Irvine, California, Improvement Bond Act
1915,
2.850% due 9/2/20+ VMIGI A-1
100,000
500,000 Orange County, California, Certificates of
Participation, Office and Courthouse,
3.100% due 12/1/15+ VMIGI A-1+
500,000
500,000 Irvine Coast Assessment District,
Improvement No 88-1,
2.900% due 9/2/18+ VMIGI A-1+
500,000
FLORIDA - 0.3%
6,700,000 Pinellas County, Florida Housing Finance
Authority,
3.250% due 12/1/15+ VMIGI A-1
6,700,000
KENTUCKY - 0.2%
3,600,000 Daviess County, Kentucky, Solid Waste,
(Scott Paper), Project A,
3.250% due 12/1/23+ VMIGI A-1+
3,600,000
MASSACHUSETTS - 0.1%
Massachusetts State Health and Educational
Facilities Authority, (MBIA Insured):
1,200,000 Series B,
3.050% due 7/1/05+ VMIGI A-1+
1,200,000
2,100,000 Series C,
3.050% due 7/1/05+ VMIGI A-1+
2,100,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) AUGUST 31,
1994
<TABLE>
<CAPTION>
MARKET
RATINGS
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
---------------------------------------------------------------------
- ----------------
SHORT-TERM TAX EXEMPT INVESTMENTS (CONTINUED)
NEW YORK - 0.3%
New York City, New York, Housing
Development, Series A:
$ 1,600,000 3.100% due 8/1/22+ VMIGI NR
$ 1,600,000
700,000 3.200% due 8/1/23+ VMIGI A-1
700,000
4,000,000 New York State, Energy Research and
Development Authority,
3.200% due 12/1/25+ P-1 NR
4,000,000
TEXAS - 0.4%
6,500,000 Gulf Coast, Texas, Waste Disposal Authority,
(AMCO Project),
3.050% due 10/1/17+ VMGI A-1+
6,500,000
500,000 Harris County, Texas, Industrial
Development, Pollution Control Revenue,
Solid Waste Disposal, (Deer Park LTD),
3.350% due 2/1/23+ VMIGI A-1
500,000
1,300,000 Harris County, Texas, Texas Medical Center
Health Facilities Project,
3.250% due 2/15/22+ VMIGI A-1+
1,300,000
---------------------------------------------------------------------
- ----------------
TOTAL SHORT-TERM TAX EXEMPT INVESTMENTS
(Cost $34,900,000)
34,900,000
---------------------------------------------------------------------
- ----------------
TOTAL INVESTMENTS (Cost $2,294,450,335*) 102.8%
2,307,658,248
---------------------------------------------------------------------
- ----------------
OTHER ASSETS AND LIABILITIES (NET) (2.8)
(62,865,572)
---------------------------------------------------------------------
- ----------------
NET ASSETS 100.0%
$2,244,792,676
---------------------------------------------------------------------
- ----------------
</TABLE>
* Aggregate cost for Federal tax purposes.
** Valued at fair value in good faith by the Fund's Board of Directors.
+ Variable rate demand notes are payable upon not more than one business
day's
notice.
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
<TABLE>
- ---------------------------------------------------------------------------
- --------------
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
AUGUST 31, 1994
<S> <C>
<C>
ASSETS:
Investments, at value (Cost $2,294,450,335) (Note 1)
See accompanying schedule
$2,307,658,248
Cash
594
Interest receivable
37,426,551
Receivable for investment securities sold
13,571,003
Receivable for Fund shares sold
4,852,431
- ---------------------------------------------------------------------------
- ---------------
TOTAL ASSETS
2,363,508,827
- ---------------------------------------------------------------------------
- ---------------
LIABILITIES:
Payable for investment securities purchased $114,045,710
Dividends payable 1,586,806
Payable for Fund shares redeemed 1,225,746
Investment advisory fee payable (Note 2) 599,945
Administration fee payable (Note 2) 336,861
Service fee payable (Note 3) 283,958
Distribution fee payable (Note 3) 187,844
Transfer agent fees payable (Note 2) 97,500
Custodian fees payable (Note 2) 60,000
Accrued expenses and other payables 291,781
- ---------------------------------------------------------------------------
- ---------------
TOTAL LIABILITIES
118,716,151
- ---------------------------------------------------------------------------
- ---------------
NET ASSETS
$2,244,792,676
- ---------------------------------------------------------------------------
- ---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
<TABLE>
- ---------------------------------------------------------------------------
- -----
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) (continued)
<S>
<C>
NET ASSETS CONSIST OF:
Distributions in excess of net investment income earned to date
$ (2,063,894)
Accumulated net realized gain on securities and future contracts
51,866,800
Unrealized appreciation of investments
13,207,913
Par value
1,434,018
Paid-in capital in excess of par value
2,180,347,839
- ---------------------------------------------------------------------------
- ---------------
TOTAL NET ASSETS
$2,244,792,676
- ---------------------------------------------------------------------------
- ---------------
NET ASSET VALUE:
CLASS A SHARES:
NET ASSET VALUE and redemption price per share
($1,792,912,246 / 114,536,392 shares of common stock outstanding)
$ 15.65
- ---------------------------------------------------------------------------
- ---------------
Maximum offering price per share ($15.65 / 0.955) (based on a
maximum sales charge of 4.5% of the offering price on August 31, 1994)
$ 16.39
- ---------------------------------------------------------------------------
- ---------------
CLASS B SHARES:
Net asset value and offering price per share+
($451,880,430 / 28,865,388 shares of common stock outstanding)
$ 15.65
- ---------------------------------------------------------------------------
- ---------------
</TABLE>
+ Redemption price per share is equal to net asset value less any
applicable
deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED AUGUST
31,1994
<TABLE>
<S> <C>
<C>
INVESTMENT INCOME:
Interest
$ 73,614,724
EXPENSES:
Investment advisory fee (Note 2) $3,497,375
Administration fee (Note 2) 1,964,352
Service fees (Note 3) 1,652,539
Distribution fee (Note 3) 1,011,476
Transfer agent fees (Notes 2 and 4) 372,906
Custodian fees (Note 2) 123,593
Legal and audit fees 101,951
Directors' fees and expenses (Note 2) 31,686
Other 267,032
- ---------------------------------------------------------------------------
- --------------
TOTAL EXPENSES
9,022,910
- ---------------------------------------------------------------------------
- --------------
NET INVESTMENT INCOME
64,591,814
- ---------------------------------------------------------------------------
- --------------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS (NOTES 1 AND 5):
Net realized gain/(loss) on:
Securities
(25,770,206)
Futures contracts
50,414,554
- ---------------------------------------------------------------------------
- --------------
Net realized gain on investments during the period
24,644,348
- ---------------------------------------------------------------------------
- --------------
Net change in unrealized depreciation of:
Securities
(73,922,634)
Futures contracts
(13,846,844)
- ---------------------------------------------------------------------------
- --------------
Net unrealized depreciation of investments during the period
(87,769,478)
- ---------------------------------------------------------------------------
- --------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS
(63,125,130)
- ---------------------------------------------------------------------------
- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$ 1,466,684
- ---------------------------------------------------------------------------
- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
<TABLE>
- ---------------------------------------------------------------------------
- -----
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
SIX MONTHS
YEAR
ENDED
ENDED
8/31/94
2/28/94
(UNAUDITED)
<S> <C>
<C>
Net investment income $ 64,591,814
$ 109,445,423
Net realized gain on securities and futures contracts
during the period 24,644,348
89,982,781
Net unrealized depreciation on securities and futures
contracts during the period (87,769,478)
(57,513,854)
- ---------------------------------------------------------------------------
- --------------
Net increase in net assets resulting from operations 1,466,684
141,914,350
Distributions to shareholders from net investment
income:
Class A (54,377,856)
(96,052,543)
Class B (11,144,484)
(9,216,957)
Distribution to shareholders in excess of net
investment income:
Class A --
(1,050,332)
Class B --
(100,787)
Distributions to shareholders from net realized gain on
investments:
Class A --
(97,964,382)
Class B --
(14,500,488)
Net increase/(decrease) in net assets from Fund share
transactions (Note 6):
Class A (276,913)
116,612,200
Class B 112,308,287
300,660,873
- ---------------------------------------------------------------------------
- --------------
Net increase in net assets 47,975,718
340,301,934
NET ASSETS:
Beginning of period 2,196,816,958
1,856,515,024
- ---------------------------------------------------------------------------
- --------------
End of period (including distributions in excess of net
investment income of $2,063,894 and $1,133,368,
respectively) $2,244,792,676
$2,196,816,958
- ---------------------------------------------------------------------------
- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
<TABLE>
- ---------------------------------------------------------------------------
- -----
FINANCIAL HIGHLIGHTS
FOR A CLASS A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<CAPTION>
SIX MONTHS YEAR YEAR
YEAR
ENDED ENDED ENDED
ENDED
8/31/94 2/28/94**
2/28/93* 2/28/92
(UNAUDITED)
<S> <C> <C> <C>
<C>
Operating performance:
Net asset value, beginning of period $16.13 $16.71
$15.62 $14.98
- ---------------------------------------------------------------------------
- --------------
Income from investment operations:
Net investment income 0.47 0.90
1.00 1.05
Net realized and unrealized gain/(loss)
on investments (0.47) 0.30
1.64 0.66
- ---------------------------------------------------------------------------
- --------------
Total from investment operations 0.00 1.20
2.64 1.71
- ---------------------------------------------------------------------------
- --------------
Less distributions:
Distributions from net investment income (0.48) (0.87)
(1.00) (1.05)
Distributions in excess of net investment
income -- (0.01)
- -- --
Distributions from net realized gains -- (0.90)
(0.52) --
Return of capital -- --
(0.03) (0.02)
- ---------------------------------------------------------------------------
- --------------
Total distributions (0.48) (1.78)
(1.55) (1.07)
- ---------------------------------------------------------------------------
- --------------
Net asset value, end of period $15.65 $16.13
$16.71 15.62
- ---------------------------------------------------------------------------
- --------------
Total return+ 0.02% 7.41%
17.92% 11.79%
- ---------------------------------------------------------------------------
- --------------
Ratios to average net assets/supplemental
data:
Net assets, end of period (in 000's) $1,792,912 $1,847,184
$1,795,160 $1,597,606
Ratio of operating expenses to average
net assets 0.72% 0.72%
0.64% 0.59%
Ratio of net investment income to average
net assets 5.96% 5.43%
6.30% 6.83%
Portfolio turnover rate 49% 131%
206% 173%
- ---------------------------------------------------------------------------
- --------------
</TABLE>
* On November 6, 1992 the Fund commenced selling Class B shares. Shares
issued
prior to November 6, 1992 were designated Class A shares.
** Per share amounts have been calculated using the monthly average share
method, which more appropriately presents the per share data for the
period
since the use of the undistributed method does not accord with results
of
operations.
+ Total return represents aggregate total return for the period
indicated and
does not reflect any applicable sales charges.
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE>
<TABLE>
- ---------------------------------------------------------------------------
- --------------
<CAPTION>
YEAR YEAR YEAR YEAR YEAR YEAR
YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
ENDED
2/28/91 2/28/90 2/28/89 2/28/88 2/28/87 2/28/86
2/28/85*
<S> <C> <C> <C> <C> <C>
<C>
$15.00 $14.83 $15.05 $15.88 $15.67
$13.39 $13.33
- ---------------------------------------------------------------------------
- --------------
1.06 1.12 1.11 1.13 1.16
1.22 1.23
0.04 0.15 (0.06) (0.83) 0.64
2.36 0.18
- ---------------------------------------------------------------------------
- --------------
1.10 1.27 1.05 0.30 1.80
3.58 1.41
- ---------------------------------------------------------------------------
- --------------
(1.09) (1.10) (1.11) (1.12) (1.16)
(1.22) (1.23)
-- -- -- -- --
- -- --
-- -- (0.16) (0.01) (0.43)
(0.08) (0.12)
(0.03) -- -- -- --
- -- --
- ---------------------------------------------------------------------------
- --------------
(1.12) (1.10) (1.27) (1.13) (1.59)
(1.30) (1.35)
- ---------------------------------------------------------------------------
- --------------
$14.98 $15.00 $14.83 $15.05 $15.88
$15.67 $13.39
- ---------------------------------------------------------------------------
- --------------
7.65% 8.78% 7.31% 2.33% 12.35%
28.25% 11.44%
- ---------------------------------------------------------------------------
- --------------
$1,461,345 $1,478,202 $1,519,508 $601,172 $788,557
$516,352 $251,944
0.58% 0.58% 0.66% 0.57% 0.59%
0.66% 0.69%
7.15% 7.43% 7.48% 7.59% 7.42%
8.48% 9.40%
0.83% 115% 37% 20% 15%
53% 70%
- ---------------------------------------------------------------------------
- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
<TABLE>
- ---------------------------------------------------------------------------
- -----
FINANCIAL HIGHLIGHTS (continued)
FOR A CLASS B SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<CAPTION>
SIX MONTHS YEAR
PERIOD
ENDED ENDED
ENDED
8/31/94
2/28/94*** 2/28/93*
(UNAUDITED)
<S> <C> <C>
<C>
Operating performance:
Net asset value, beginning of period $16.13 $16.71
$15.81
- ---------------------------------------------------------------------------
- -----------
Income from investment operations:
Net investment income 0.42 0.81
0.32
Net realized and unrealized gain/(loss) on
investment (0.47) 0.31
1.42
- ---------------------------------------------------------------------------
- -----------
Total from investment operations (0.05) 1.12
1.74
- ---------------------------------------------------------------------------
- -----------
Less distributions:
Distributions from net investment income (0.43) (0.79)
(0.31)
Distributions in excess of net investment income -- (0.01)
- --
Distributions from net realized gains -- (0.90)
(0.52)
Return of capital -- --
(0.01)
- ---------------------------------------------------------------------------
- -----------
Total distributions (0.43) (1.70)
(0.84)
- ---------------------------------------------------------------------------
- -----------
Net asset value, end of period $15.65 $16.13
$16.71
- ---------------------------------------------------------------------------
- -----------
Total return+ (0.25)% 6.86%
11.26%
- ---------------------------------------------------------------------------
- -----------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $451,880 $349,633
$61,355
Ratio of operating expenses to average net assets 1.24% 1.25%
1.24%**
Ratio of net investment income to average net
assets 5.44% 4.90%
5.70%**
Portfolio turnover rate 49% 131%
206%
- ---------------------------------------------------------------------------
- -----------
</TABLE>
* The Fund commenced selling Class B shares on November 6, 1992.
** Annualized
*** Per share amounts have been calculated using the monthly average share
method, which more appropriately presents the per share data for the
period
since the use of the undistributed method does not accord with results
of
operations.
+ Total return represents aggregate total return for the period indicated
and
does not reflect any applicable sales charges.
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Smith Barney Managed Municipals Fund Inc. (the "Fund"), formerly known as
Smith
Barney Shearson Managed Municipals Fund Inc., was incorporated under the
laws of
the State of Maryland on September 16, 1980. The Fund is a diversified,
open-end
management investment company registered with the Securities and Exchange
Commission under the Investment Company Act of 1940, as amended (the "1940
Act"). The Fund offers two classes of shares: Class A and Class B shares.
Class
A shares are sold with a front-end sales charge. Class B shares may be
subject
to a contingent deferred sales charge ("CDSC") upon redemption. Class B
shares
will convert automatically to Class A shares eight years after the date of
original purchase. Both Classes of shares have identical rights and
privileges
except with respect to the effect of the respective sales charges of each
Class,
the distribution and/or service fees borne by each Class, expenses
allocable
exclusively to each Class, voting rights on matters affecting a single
Class,
the exchange privilege of each Class and the conversion feature of Class B
shares. The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its financial
statements.
Portfolio valuation: Securities are valued by The Boston Company Advisors,
Inc.
("Boston Advisors") after consultation with an independent pricing service
(the
"Service") approved by the Board of Directors. When, in the judgment of the
Service, quoted bid prices for securities are readily available and are
representative of the bid side of the market, these investments are valued
at
the mean between the quoted bid prices and asked prices (as obtained by the
Service from dealers in such securities). Securities for which, in the
judgment
of the Service, there are no readily obtainable market quotations (which
may
constitute a majority of the portfolio securities) are carried at fair
value as
determined by the Service, based on methods which include consideration of:
yields or prices of municipal securities of comparable quality, coupon,
maturity
and type; indications as to values from dealers; and general market
conditions.
Short-term investments that mature in 60 days or less are valued at
amortized
cost.
Futures contracts: Upon entering into a futures contract, the Fund is
required
to deposit with the broker an amount of cash or cash equivalents equal to a
certain percentage of the contract amount. This is known as the "initial
margin." Subsequent payments ("variation margin") are made or received by
the
Fund each day, depending on the daily fluctuation of the value of the
contract.
47
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
For financial statement purposes, an amount equal to the settlement amount
of
the contract is included in its Statement of Assets and Liabilities as an
asset
and as an equivalent liability. For long futures positions, the asset is
marked-to-market daily; for short futures positions, the liability is
marked-to-market daily. The daily changes in the contract are recorded as
unrealized gains or losses. The Fund recognizes a realized gain or loss
when the
contract is closed.
There are several risks in connection with the use of futures contracts as
a
hedging device. The change in value of futures contracts primarily
corresponds
with the value of their underlying instruments, which may not correlate
with the
change in value of the hedged investments. In addition, there is the risk
the
Fund may not be able to enter into a closing transaction because of an
illiquid
secondary market.
Repurchase Agreements: The Fund may engage in repurchase agreement
transactions.
Under the terms of a typical repurchase agreement, the Fund takes
possession of
an underlying debt obligation subject to an obligation of the seller to
repurchase, and the Fund to resell, the obligation at an agreed-upon price
and
time, thereby determining the yield during the Fund's holding period. This
arrangement results in a fixed rate of return that is not subject to market
fluctuations during the Fund's holding period. The value of the collateral
is at
least equal at all times to the total amount of the repurchase obligations,
including interest. In the event of counterparty default, the Fund has the
right
to use the collateral to offset losses incurred. There is potential loss to
the
Fund in the event the Fund is delayed or prevented from exercising its
rights to
dispose of the collateral securities, including the risk of a possible
decline
in the value of the underlying securities during the period while the Fund
seeks
to assert its rights. The Fund's investment adviser, administrator or sub-
administrator acting under the supervision of the Board of Directors,
reviews
the value of the collateral and the creditworthiness of those banks and
dealers
with which the Fund enters into repurchase agreements to evaluate potential
risks.
Securities transactions and investment income: Securities transactions are
recorded as of the trade date. Interest income is recorded on the accrual
basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may
be
settled a month or more after the trade date. Interest income on these
securities is not accrued until settlement date. When required, the Fund
instructs the custodian to segregate assets in a separate account with a
current
value at least equal to the amount of its when-issued purchase commitments.
Realized gains and losses from securities sold are recorded on the
identified
cost basis. Investment income and realized and
48
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
unrealized gains and losses are allocated based upon the relative net
assets of
each Class of shares.
Dividends and distributions to shareholders: Dividends from net investment
income are determined on a Class level, are declared on each day that the
Fund
is open for business and are paid on the last day of the Smith Barney Inc.
("Smith Barney") statement month. Distributions from net realized capital
gains
are determined on a fund level and are declared and paid annually, after
the end
of the fiscal year in which earned. In addition, in order to avoid the
application of a 4% nondeductible excise tax on certain undistributed
amounts of
ordinary income and capital gains, the Fund may make an additional
distribution
shortly before December 31 in each year of any undistributed ordinary
income or
capital gains and expects to make any other distributions as are necessary
to
avoid this tax. Income distributions and capital gain distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily
due to
differing treatments of income and gains on various investment securities
held
by the Fund, timing differences and differing characterization of
distributions
made by the Fund as a whole.
Federal income taxes: It is the policy of the Fund to qualify as a
regulated
investment company, which distributes exempt interest dividends, by
complying
with the requirements of the Internal Revenue Code of 1986, as amended,
applicable to regulated investment companies and by distributing
substantially
all of its earnings to its shareholders. Therefore, no Federal income tax
provision is required.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION
FEE AND OTHER TRANSACTIONS
The Fund has entered into an investment advisory agreement (the "Advisory
Agreement") with Greenwich Street Advisors, a division of Mutual Management
Corp., which is controlled by Smith Barney Holdings Inc. ("Holdings").
Holdings
is a wholly-owned subsidiary of The Travelers Inc. Under the Advisory
Agreement,
the Fund pays a monthly fee at the following annual rates: 0.35% of the
value of
its average daily net assets up to $500 million; 0.32% of the value of its
average daily net assets on the next 1 billion and 0.29% of the value of
its
average daily net assets in excess of 1.5 billion.
Prior to April 20, 1994, the Fund was party to an administration agreement
with
Boston Advisors, an indirect wholly-owned subsidiary of Mellon Bank
Corporation
49
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
("Mellon"). Under this agreement, the Fund paid a monthly fee at the annual
rate
of .20% of the value of its average daily net assets up to $500 million;
0.18%
of the value of its average daily net assets on the next 1 billion; 0.16%
of the
value of its average daily net assets in excess of 1.5 billion.
As of the close of business on April 20, 1994, Smith, Barney Advisers, Inc.
("SBA"), which is controlled by Holdings, succeeded Boston Advisors as the
Fund's administrator. The new administration agreement contains
substantially
the same terms and conditions, including the level of fees, as the
predecessor
agreement.
As of the close of business on April 20, 1994, the Fund and SBA entered
into a
sub-administration agreement with Boston Advisors (the "Sub-Administration
Agreement"). Under the Sub-Administration Agreement, SBA pays Boston
Advisors a
portion of its fee at a rate agreed upon from time to time between SBA and
Boston Advisors.
For the six months ended August 31, 1994, the Fund incurred total brokerage
commissions of $273,977, none of which was paid to Smith Barney.
For the six months ended August 31, 1994, Smith Barney received from
investors
$1,810,508 representing commissions (sales charges) of Class A shares.
A CDSC is generally payable by a shareholder in connection with the
redemption
of Class B shares within five years after the date of purchase. In
circumstances
in which the CDSC is imposed, the amount of the charge ranges between 4.5%
and
1% of net asset value depending on the number of years since the date of
purchase. For the six months ended August 31, 1994, Smith Barney received
from
shareholders $617,954 in CDSCs on the redemption of Class B shares.
No officer, director or employee of Smith Barney or any of its affiliates
receives any compensation from the Fund for serving as a Director or
officer of
the Fund. The Fund pays each Director who is not an officer, director, or
employee of Smith Barney or any of its affiliates $4,000 per annum plus
$500 per
meeting attended and reimburses each such Director for travel and out-of-
pocket
expenses.
Boston Safe Deposit and Trust Company, an indirect wholly owned subsidiary
of
Mellon, serves as the Fund's custodian. The Shareholder Services Group,
Inc., a
subsidiary of First Data Corporation, serves as the Fund's transfer agent.
50
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
3. DISTRIBUTION PLAN
Smith Barney acts as distributor of the Fund's shares pursuant to a
distribution
agreement with the Fund and sells shares of the Fund through Smith Barney
or its
affiliates.
Pursuant to Rule 12b-1 under the 1940 Act, the Fund has adopted a services
and
distribution plan (the "Plan"). Under this Plan, the Fund compensates Smith
Barney for servicing shareholder accounts for Class A and Class B
shareholders,
and covers expenses incurred in distributing Class B shares. Smith Barney
is
paid an annual service fee with respect to Class A and Class B shares of
the
Fund at the annual rate of 0.15% of the value of its average daily net
assets
attributable to each respective Class of shares. Smith Barney is also paid
an
annual distribution fee with respect to Class B shares at the annual rate
of
0.50% of the value of the average daily net assets of Class B shares. For
the
six months ended August 31, 1994, the Fund incurred service fees of
$1,349,096
and $303,443 for Class A and Class B shares, respectively. For the six
months
ended August 31, 1994, the Fund incurred a distribution fee of $1,011,476
for
Class B shares.
4. EXPENSE ALLOCATION
Expenses of the Fund not directly attributable to the operations of any
Class of
shares are prorated among the Classes based upon the relative net assets of
each
Class. Operating expenses directly attributable to a Class of shares are
charged
to that Class' operations. In addition to the above service and
distribution
fees, Class specific operating expenses include transfer agent fees. For
the six
months ended August 31, 1994, transfer agent fees for Class A and Class B
shares
were $270,102 and $102,804, respectively.
5. SECURITIES TRANSACTIONS
Costs of purchases and proceeds from sales of investment securities,
excluding
short-term investments, during the six months ended August 31, 1994
amounted to
$1,348,487,676 and $972,485,758, respectively.
At August 31, 1994, aggregate gross unrealized appreciation for all
securities
in which there was an excess of value over tax cost amounted to
$55,357,544, and
aggregate gross unrealized depreciation for all securities in which there
was an
excess of tax cost over value amounted to $42,149,631.
51
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ---------------------------------------------------------------------------
- -----
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
6. COMMON STOCK
At August 31, 1994, one billion shares of $.01 par value common stock were
authorized. Changes in common stock outstanding were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED
08/31/94
2/28/94*
CLASS A SHARES: SHARES AMOUNT SHARES
AMOUNT
- ---------------------------------------------------------------------------
- -------------------
<S> <C> <C> <C>
<C>
Sold 7,942,193 $123,825,140
13,780,448 $229,760,502
Issued as reinvestment of
dividends 2,101,016 32,813,673
7,475,694 123,446,869
Redeemed (10,045,717) (156,915,726)
(14,139,151) (236,595,171)
- ---------------------------------------------------------------------------
- -------------------
Net increase/(decrease) (2,508) $ (276,913)
7,116,991 $116,612,200
- ---------------------------------------------------------------------------
- -------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED
08/31/94
2/28/94*
CLASS A SHARES: SHARES AMOUNT SHARES
AMOUNT
- ---------------------------------------------------------------------------
- -------------------
<S> <C> <C> <C>
<C>
Sold 8,018,394 $125,267,494
18,016,939 $301,196,191
Issued as reinvestment of
dividends 472,053 7,370,698
1,099,568 18,100,114
Redeemed (1,305,174) (20,329,905)
(1,107,913) (18,635,432)
- ---------------------------------------------------------------------------
- -------------------
Net increase 7,185,273 $112,308,287
18,008,594 $300,660,873
- ---------------------------------------------------------------------------
- -------------------
</TABLE>
* The Fund commenced selling Class B shares on November 6, 1992. Any shares
outstanding prior to November 6, 1992 were designated Class A shares.
7. LINE OF CREDIT
The Fund and several affiliated entities participate in a $50 million line
of
credit provided by Continental Bank N.A. under an Amended and Restated Line
of
Credit Agreement (the "Agreement") dated April 30, 1992 and renewed
effective
May 31, 1994, primarily for temporary or emergency purposes, including the
meeting of redemption requests that otherwise might require the untimely
disposition of securities. Under this Agreement, the Fund may borrow up to
the
lesser of $25 million or 10% of its net assets. Interest is payable either
at
the bank's Money Market Rate or the London Interbank Offered Rate (LIBOR)
plus
0.375% on an annualized basis. Under the terms of the Agreement, as
amended, the
Fund and the other affiliated entities are charged an aggregate commitment
fee
of $100,000 which is allocated equally among each of the participants. The
Agreement requires, among other provisions, each participating fund to
maintain
a ratio of net assets (not including funds borrowed pursuant to the
Agreement)
to aggregate amount of indebtedness pursuant to the Agreement of no less
than 5
to 1. During the six months ended August 31, 1994, the Fund did not borrow
under
the Agreement.
52
<PAGE>
MANAGED
MUNICIPALS
FUND INC.
DIRECTORS
Herbert Barg
Alfred J. Bianchetti
Martin Brody
Dwight B. Crane
James J. Crisona
Burt N. Dorsett
Robert A. Frankel
Elliot S. Jaffe
Paul Hardin
Stephen E. Kaufman
Joseph J. McCann
Heath B. McLendon
Cornelius C. Rose, Jr.
OFFICERS
Heath B. McLendon
Chairman of the Board and
Investment Officer
Stephen J. Treadway
President
Richard P. Roelofs
Executive Vice President
Joseph P. Deane
Vice President and
Investment Officer
David Fare
Investment Officer
Lewis E. Daidone
Treasurer
Christina T. Sydor
Secretary
This report is submitted for the general information of the shareholders of
Smith Barney Managed Municipals Fund Inc. It is not authorized for
distribution
to prospective investors unless accompanied or preceded by an effective
Prospectus for the Fund, which contains information concerning the Fund's
investment policies, fees and expenses as well as other pertinent
information.
SMITH BARNEY
- ------------
SMITH BARNEY
MUTUAL FUNDS
388 Greenwich Street
New York, New York 10013
Fund 5, 179
FD0435 J4
Recycled
Recyclable
