<PAGE>
- ------------------------------------------------------------
- -------------------SEMI-ANNUAL REPORT
- ------------------------------------------------------------
- --------------------
Smith Barney
Managed
Municipals
Fund Inc. -----------------------------------------------
August 31, 1995
Smith Barney Mutual Funds
Investing for your future.
Every day.
<PAGE>
- ------------------------------------------------------------
- -------------------Smith Barney Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
DEAR SHAREHOLDER:
We are pleased to provide the semi-annual report for Smith
Barney Managed Municipals Fund for the six months ended
August 31, 1995. During this period the Fund generated a
total return of 5.66% for Class A shares. That result beat
the 4.80% average total return for all 293 general municipal
bond funds for the same period, as reported by Lipper
Analytical Services, Inc. The Smith Barney Managed
Municipals Fund has an excellent long-term record as well.
We are proud to report that in the Lipper general municipal
bond fund category, the Fund was ranked number one among 98
funds for the past five years and number one among 53 funds
for the past 10 years. The Fund was ranked number four among
209 funds for the past year. These rankings are based on the
total returns for the one-, fiveand 10-year periods ended
August 31, 1995 and include the effect of management fees
and expenses but do not reflect sales charges. Please
remember, however, that past performance cannot guarantee
future results.
The municipal market had a significant rally during the
first eight months of 1995 - climbing from the depths of
last fall. After a series of interest-rate hikes
orchestrated by the Federal Reserve Board over a 13-month
period, the economy has begun to slow down, and inflation
numbers have stayed benign. Last November we expected that
the bond market would rally and positioned the Fund's
portfolio accordingly. At that time, we bought high-grade,
discount-coupon long bonds when the market was extremely
cheap. Because of this positioning we were able to maximize
the Fund's return in the friendlier bond market environment
of 1995.
We believe that the market may have hit an interim peak in
late June of this year. We have pared some of the Fund's
longest maturities and deepest discounts into the mid-June
rally. As we return to those levels or pierce them, we will
use any further rally to raise our coupons a little higher
and shorten maturities a bit. 1995 has been a terrific year
for bonds but if you believe in the old adage, "buy low,
sell high," then it is clearly time to be more conservative
than we were in late 1994 when the market was extremely
attractive.
In our view, assuming there is no change in the economic
backdrop, the next six months should be relatively benign
for the bond market. Municipals are very cheap compared with
the government bond market, and with "flat tax" on every
politician's lips, will probably remain somewhat cheap in
the near future. Potential passage of any tax-reform
measures is probably still several years away and is
anything but a political certainty. We believe that this
confluence
1 <PAGE>
of circumstances probably means that municipals will remain
an attractive investment alternative, even in today's tight-
supply marketplace.
We thank you for your confidence in our investment
management, and we look forward to providing you with
superior investment results.
Sincerely,
/s/ Heath B. McLendon /s/ Joseph P. Deane
Heath B. McLendon Joseph P. Deane
Chairman and Investment Officer Vice President and
Investment Officer
September 22, 1995
- ------------------------------------------------------------
- --------------------
Smith Barney Managed Municipals Fund
One of "Ten Terrific Funds - Morningstar Style"
In the August 1995 issue of the Morningstar Investor
newsletter, published by the nationally recognized mutual
fund ranking organization, Morningstar, Inc., Smith Barney
Managed Municipals Fund was chosen as the "favorite fund" in
the municipal bond category. Morningstar put together a list
of its top-ten fund picks in investment categories ranging
from small-company growth to municipal bond. From their
universe of 500 funds, they sought funds "that beat their
peers year after year." Morningstar further stated that:
"Each would make a splendid addition to a portfolio in need
of a fund of its type."
In the municipal-bond category, returns were adjusted
for taxes, penalizing all capital-gains distributions at the
maximum federate rate. Morningstar then examined how often
calendar-year tax-adjusted returns (beginning in 1985) beat
the national muni-fund group's average tax-adjusted returns.
According to Morningstar, "Joe Deane's Smith Barney
Managed Municipals ran off with the crown."
- ------------------------------------------------------------
- --------------------
2
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- ------------------------------------------------Historical
Performance -- Class A Shares ---------------------------
- ----------------------------------------------------<TABLE>
<CAPTION>
Net Asset Value
-----------------------
Beginning End Income Capital Gain
Return of Total
Period Ended of Period of Period Dividends
Distributions Capital Returns/(1)/
============================================================
============================================= <S> <C>
<C> <C> <C> <C>
<C>
8/31/95+ $15.47 $15.87 $0.47 $0.00
$0.00 5.66%
- ------------------------------------------------------------
- --------------------------------------------2/28/95
16.13 15.47 0.95 0.29 0.00
4.11
- ------------------------------------------------------------
- --------------------------------------------2/28/94
16.71 16.13 0.88 0.90 0.00
7.41
- ------------------------------------------------------------
- --------------------------------------------2/28/93
15.62 16.71 1.00 0.52 0.03
17.92
- ------------------------------------------------------------
- ---------------------------------------------
2/28/92 14.98 15.62 1.05 0.00 0.02 11.79
- ------------------------------------------------------------
- --------------------------------------------2/28/91
15.00 14.98 1.09 0.00 0.03 7.65
- ------------------------------------------------------------
- --------------------------------------------2/28/90
14.83 15.00 1.10 0.00 0.00 8.78
- ------------------------------------------------------------
- --------------------------------------------2/28/89
15.05 14.83 1.11 0.16 0.00 7.31
- ------------------------------------------------------------
- --------------------------------------------2/28/88
15.88 15.05 1.12 0.01 0.00 2.33
- ------------------------------------------------------------
- --------------------------------------------2/28/87
15.67 15.88 1.16 0.43 0.00 12.35
- ------------------------------------------------------------
- --------------------------------------------2/28/86
13.39 15.67 1.22 0.08 0.00 28.25
============================================================
============================================= Total
$11.15 $2.39 $0.08
============================================================
============================================= </TABLE>
- ------------------------------------------------------------
- --------------------
Historical Performance -- Class B Shares -------------------
- ------------------------------------------------------------
- -
<TABLE>
<CAPTION>
Net Asset Value
-----------------------
Beginning End Income Capital Gain
Return of Total
Period Ended of Period of Period Dividends
Distributions Capital Returns/(1)/
============================================================
============================================= <S> <C>
<C> <C> <C> <C> <C>
8/31/95+ $15.47 $15.87 $0.43 $0.00
$0.00 5.38%
- ------------------------------------------------------------
- --------------------------------------------2/28/95
16.13 15.47 0.86 0.29 0.00 3.54
- ------------------------------------------------------------
- --------------------------------------------2/28/94
16.71 16.13 0.80 0.90 0.00 6.86
- ------------------------------------------------------------
- --------------------------------------------Inception*
- 2/28/93 15.81 16.71 0.31 0.52 0.01
11.26
============================================================
============================================= Total
$2.40 $1.71 $0.01
============================================================
============================================= </TABLE>
- ------------------------------------------------------------
- --------------------
Historical Performance -- Class C Shares -------------------
- ------------------------------------------------------------
- -
<TABLE>
<CAPTION>
Net Asset Value
-----------------------
Beginning End Income Capital Gain
Return of Total
Period Ended of Period of Period Dividends
Distributions Capital Returns/(1)/
============================================================
============================================= <S> <C>
<C> <C> <C> <C> <C>
8/31/95+ $15.47 $15.86 $0.43
$0.00 $0.00 5.32%
- ------------------------------------------------------------
- --------------------------------------------Inception*
- 2/28/95 14.30 15.47 0.27 0.29 0.00
12.36
============================================================
============================================= Total
$0.70 $0.29 $0.00
============================================================
============================================= </TABLE>
3
<PAGE>
Smith Barney
Managed Municipals Fund Inc. ------------------------------
- -------------------------------------------------Historical
Performance -- Class Y Shares ---------------------------
- ----------------------------------------------------<TABLE>
<CAPTION>
Net Asset Value
-----------------------
Beginning End Income Capital Gain
Return of Total
Period Ended of Period of Period Dividends
Distributions Capital Returns/(1)/
============================================================
============================================= <S> <C>
<C> <C> <C> <C> <C>
Inception*
- 8/31/95 $15.63 $15.86 $0.40
$0.00 $0.00 4.82%
============================================================
============================================= </TABLE>
It is the Fund's policy to distribute dividends monthly and
capital gains, if
any, annually.
- ------------------------------------------------------------
- --------------------
Average Annual Total Return -------------------------
- -------------------------------------------------------
<TABLE>
<CAPTION>
Without Sales Charge/(1)/ ------------------------
- --------------------------Class A Class B Class
C Class Y
============================================================
======================================
<S> <C> <C> <C> <C>
Six Months Ended 8/31/95+ 5.66% 5.38%
5.32% N/A
- ------------------------------------------------------------
- -------------------------------------Year Ended 8/31/95
9.97 9.45 N/A N/A
- ------------------------------------------------------------
- -------------------------------------Five Years Ended
8/31/95 10.60 N/A N/A N/A
- ------------------------------------------------------------
- -------------------------------------Ten Years Ended 8/31/95
10.14 N/A N/A N/A
- ------------------------------------------------------------
- -------------------------------------Inception* through
8/31/95 11.53 9.71 18.42 4.82
- ------------------------------------------------------------
- --------------------------------------
<CAPTION>
With Sales Charge/(2)/ ----------------------
- ----------------------------Class A Class B
Class C Class Y
============================================================
====================================== <S> <C>
<C> <C> <C>
Six Months Ended 8/31/95+ 1.43% 0.88%
4.32% N/A
- ------------------------------------------------------------
- -------------------------------------Year Ended 8/31/95
5.57 4.95 N/A N/A
- ------------------------------------------------------------
- -------------------------------------Five Years Ended
8/31/95 9.70 N/A N/A N/A
- ------------------------------------------------------------
- -------------------------------------Ten Years Ended 8/31/95
9.69 N/A N/A N/A
- ------------------------------------------------------------
- -------------------------------------Inception* through
8/31/95 11.21 8.80 17.42 4.82
- ------------------------------------------------------------
- -------------------------------------</TABLE>
4
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- -------------------------------------------------
Cumulative Total Return
-----------------------------------------------------------
- --------------------<TABLE>
<CAPTION>
Without Sales Charge/(1)/ -------------------------
<S> <C>
Class A (8/31/85 through 8/31/95) 162.61%
- ------------------------------------------------------------
- -------------------Class B (Inception* through 8/31/95)
29.81
- ------------------------------------------------------------
- -------------------Class C (Inception* through 8/31/95)
18.42
- ------------------------------------------------------------
- -------------------Class Y (Inception* through 8/31/95)
4.82
- ------------------------------------------------------------
- -------------------</TABLE>
(1) Assumes reinvestment of all dividends and capital gain
distributions at net asset value and does not reflect
deduction of the applicable sales charge with respect to
Class A shares or the applicable contingent deferred sales
charges ("CDSC") with respect to Class B and C shares.
(2) Assumes reinvestment of all dividends and capital gain
distributions at net asset value. In addition, Class A
shares reflect the deduction of the maximum initial sales
charge of 4.00% and Class B shares reflect the deduction of
a 4.50% CDSC which applies if shares are redeemed less than
one year from initial purchase. This CDSC declines by 0.50%
the first year after
purchase and then by 1.00% per year thereafter until no CDSC
is incurred. Class C shares reflect the deduction of a 1.00%
CDSC which applies if shares are redeemed within the first
year of purchase.
* Inception dates for Class B, C and Y shares are November
6, 1992, November 9, 1994 and April 4, 1995, respectively.
+ Represents total return for the period from March 1,
1995 through
August 31, 1995, not annualized.
5 <PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- ------------------------------------------------Historical
Performance
- ------------------------------------------------------------
- --------------------
Growth of $10,000 Invested in Class A
Shares of
Smith Barney Managed Municipals Fund Inc. vs. the
Lehman Brothers Municipal Bond Index and the
Lipper Peer Group Average+ (unaudited)
-----------------------------------------------------------
- ---------------------
August 1985 - August
1995
[GRAPH APPEARS
HERE]
<TABLE>
<CAPTION>
SB Managed Municipals Fund
Inc. Lehman Bros. Municipal Bond Index Lipper
Peer Group Average -----------------------------------------
- ------------------------------------------------------------
- ----------------------------<S> <C>
<C> <C>
8/85 9,601
10,000 10,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------8/86
11,784 12,309
12,269
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------8/87
12,188 12,879
12,544
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------8/88 13,113 13,765 13,406
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------8/89 14,625 15,278 14,907
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------8/90 15,237 16,259 15,615
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------8/91 17,191 18,178 17,442
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------8/92 19,165 20,207 19,416
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------8/93 22,451 22,673 21,809
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------8/94 22,920 22,705 21,573
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------8/95 25,204 24,718 23,152
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------</TABLE>
+ Hypothetical illustration of $10,000 invested in Class
A shares
on August 31, 1985, assuming deduction of the maximum
4.00% sales charge at
the time of investment and reinvestment of dividends and
capital gains at net
asset value through August 31, 1995. The Lehman Brothers
Municipal Bond Index ("Index") is a weighted composite which
is comprised of more than 15,000 bonds issued within the
last 5 years, having a minimum credit rating of at least Baa
and a maturity of at least 2 years, excluding all bonds
subject to the Alternative Minimum Tax and bonds with
floating or zero coupon. The Lipper Analytical Services,
Inc. Peer Group Average ("Lipper Peer Group Average") is
composed of an average of the Fund's peer group of mutual
funds investing in municipal securities. The Index and
Lipper Peer Group Average are unmanaged and are not subject
to the same management and trading expenses of a mutual
fund. The performance of the Fund's other classes may be
greater or less than the Class A shares' performance
indicated on this chart, depending on whether greater or
lesser sales charges and fees were incurred by shareholders
investing in the other classes.
All figures represent past performance and are not a
guarantee of future results. Investment returns and
principal value will fluctuate, and redemption values may be
more or less than the original cost. No adjustment has been
made for shareholder tax liability on dividends or capital
gains.
6
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- ------------------------------------------------Portfolio
Highlights (unaudited) August 31, 1995
- ------------------------------------------------------------
- -------------------Industry Breakdown
[GRAPH APPEARS HERE]
<TABLE>
<S> <C>
General Obligation/r16.8% 0.168
- ------------------------------------------------------------
- ---------------Water and/rSewer/r12.6%
0.126
- ------------------------------------------------------------
- ---------------Utilities/r8.9%
0.089
- ------------------------------------------------------------
- ---------------Power/r.4.8% 0.048
- ------------------------------------------------------------
- ---------------Other Municipal/rBonds and Short-
term/rInvestments/r29.5% 0.295 ----------------
- -----------------------------------------------------------
Industrial/rDevelopment/r0.7% 0.007
- ------------------------------------------------------------
- ---------------Education/r1.5% 0.015
- ------------------------------------------------------------
- ---------------Polution/rControl/r3.2% 0.032
- ------------------------------------------------------------
- ---------------Hospital/r6.5% 0.065
- ------------------------------------------------------------
- ---------------Housing/r2.5% 0.025
- ------------------------------------------------------------
- ---------------Transportation/r13.0% 0.13
- ------------------------------------------------------------
- ---------------Housing/r2.5% 0.025
- ------------------------------------------------------------
- ---------------Hospital/r6.5% 0.065
- ------------------------------------------------------------
- ---------------Polution Control/r3.2% 0.032
- ------------------------------------------------------------
- ---------------Education/r1.5% 0.015
- ------------------------------------------------------------
- ---------------Industrial Development/r0.7%
0.007
- ------------------------------------------------------------
- ---------------Other Municipal/rBonds and Short-
term/rInvestments/r29.5% 0.295
- ------------------------------------------------------------
- ---------------Power/r4.8% 0.048
- ------------------------------------------------------------
- ---------------Utilities/r8.9% 0.089
- ------------------------------------------------------------
- ---------------Water and/rSewer/r12.6% 0.126
- ------------------------------------------------------------
- ---------------General Obligation/r16.8%
0.168
- ------------------------------------------------------------
- ---------------</TABLE>
Top Five States Represented
<TABLE>
<CAPTION>
Percentage of State
Total Investments
- ------------------------------------------------------------
- -------------------<S>
<C>
California 16.5%
Colorado 12.3
Texas 10.2
New York 9.1
Massachusetts 6.6
</TABLE>
Summary of Investments by Combined Ratings
<TABLE>
<CAPTION>
Standard & Percentage of
Moody's and/or Poor's
Total Investments
- ------------------------------------------------------------
- -------------------<S> <C>
<C>
Aaa AAA 39.6%
Aa AA 20.9
A A 8.1
Baa BBB 11.4
Ba BB 1.1
VMIG 1/P-1 A-1 7.8
NR NR 11.1
- ----100.0% =====
</TABLE>
7 <PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- ------------------------------------------------Schedule of
Investments (unaudited) August 31,
1995
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
MUNICIPAL BONDS AND NOTES -- 92.2%
Alabama -- 0.2%
$ 5,450,000 NR Fairfield, AL Special Care
Facilities Financing Authority,
Health Revenue
Bonds, (Lloyd Nolan Health Care
Facility), 9.625%
due 10/1/05 $
5,627,125
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Alaska -- 3.6%
Valdez, AK Marine
Terminal Revenue:
87,250,000 AA- Series A, 5.850% due
8/1/25 82,778,438
4,000,000 AA- Series B, 5.500% due
10/1/28 3,645,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------86,423,438
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Arizona -- 0.5%
12,170,000 A Greenlee County, AZ IDA, PCR,
(Phelps Dodge
Corporation
Project), 5.450% due 6/1/09 11,804,900
485,000 Caa* Maricopa County, AZ
Hospital Revenue, (Phoenix
General Hospital),
Series A, 8.500% due 1/1/16 446,200
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------12,251,100
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------California -- 16.3%
2,240,000 A+ ABAG Finance Authority for
Nonprofit Corporations,
5.750% due 11/1/05
2,273,600
6,000,000 AAA Adelanto, CA Improvement
Agency, Tax Allocation,
Series B, FGIC-
Insured, 5.500% due 12/1/23 5,572,500
6,600,000 AAA Alhambra, CA Redevelopment
Agency Tax Allocation,
5.850% due 5/1/23
6,443,250
6,550,000 AAA Anaheim, CA Public Financing
Authority Revenue,
5.625% due 10/1/22
6,116,062
2,250,000 A* Apple Valley, CA School
District,
5.900% due 9/1/11
2,176,875
7,000,000 AAA Brea, CA Redevelopment Agency,
(Tax Allocation Project),
MBIA-Insured, 5.750%
due 8/1/23 6,693,750
29,100,000 AA California Health Facilities
Finance Authority, (Kaiser
Permanente), 5.550%
due 8/15/25 26,226,375
9,035,000 AAA California State, AMBAC-
Insured, 5.900% due 3/1/25 8,876,888
2,770,000 Aa* California HFA Revenue Bonds,
Home Mortgage,
Series B, FHA-
Insured, 5.700% due 2/1/25 2,572,638
6,000,000 AAA California State GO, FSA-
Insured, 5.500% due 3/1/20 5,557,500
California Statewide
Communities, (St. Joseph's Health):
1,000,000 AA 5.500% due 7/1/14
940,000
3,000,000 AA 5.500% due 7/1/23
2,722,500
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- ------------------------------------------------Schedule of
Investments (unaudited) (continued)
August 31, 1995
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
California -- 16.3% (continued)
California Statewide
Water Department Resources:
Series L:
$ 19,000,000 AA 5.750% due 12/1/19
$ 18,216,250
2,800,000 AA 5.500% due 12/1/22
2,586,500
13,560,000 AA 5.500% due 12/1/23
12,509,100
Series M:
5,415,000 AA 5.000% due 12/1/14
4,799,044
8,545,000 AA 5.750% due 12/1/14
8,320,694
1,200,000 AA 5.500% due 12/1/22
1,107,000
6,000,000 AAA Concord, CA Redevelopment
Agency Tax Allocation,
Concord
Redevelopment Project, AMBAC-Insured,
5.250% due 7/1/19
5,415,000
15,215,000 AAA Corona, CA Redevelopment
Agency, Area A, Series A,
FGIC-Insured, 5.500%
due 9/1/24 14,111,913
5,000,000 AA- East Bay, CA Utility District,
Water System, Revenue
Bonds, 6.000% due
6/1/20 4,962,500
5,000,000 AAA Fresno County, CA Financing
Authority, Solid Waste
Revenue, American
Avenue Landfill Project,
MBIA-Insured, 5.750%
due 5/15/14 4,818,750
10,000,000 AAA Long Beach, CA Financing
Authority, Revenue Bonds,
AMBAC-Insured,
5.500% due 11/1/22 9,300,000
Los Angeles, CA
Convention & Exhibit Center,
Lease Revenue,
Series A, MBIA-Insured:
23,275,000 AAA 5.375% due 8/15/18
21,529,375
34,435,000 AAA 5.125% due 8/15/21
30,388,888
Los Angeles, CA
Wastewater Systems, Revenue Bonds:
10,410,000 AAA 5.200% due 11/1/21
9,277,913
Series A, MBIA-
Insured:
18,570,000 AAA 5.800% due 6/1/21
18,012,900
5,000,000 AAA 5.875% due 6/1/24
4,893,750
Series B, MBIA-
Insured:
5,375,000 AAA 5.600% due 6/1/20
5,079,375
53,000,000 AAA 5.700% due 6/1/23
50,681,250
Los Angeles County, CA
Metropolitan Transportation
Sales Tax Revenue,
Series A:
6,000,000 AAA FGIC-Insured, 5.000%
due 7/1/21 5,197,500
17,500,000 AAA MBIA-Insured, 5.625%
due 7/1/18 16,734,375
2,000,000 AA Metropolitan Water District,
Southern CA,
5.500% due 7/1/19
1,877,500
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
-----------------------------------------------------------
- --------------------Schedule of Investments (unaudited)
(continued) August 31, 1995
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
California -- 16.3% (continued)
$ 4,500,000 AAA Oceanside, CA COP, AMBAC-
Insured, 5.800% due 5/1/21 $
4,365,000
4,975,000 AAA Ontario, CA Redevelopment
Financing Authority,
Project #1, MBIA-
Insured, 5.500% due 8/1/18 4,664,063
6,500,000 AAA Orange, CA Redevelopment
Agency, Series A, AMBAC-
Insured, 5.700% due
10/1/23 6,004,375
3,000,000 AAA Oxnard, CA Financing
Authority, FGIC-Insured,
5.500% due 6/1/14
2,838,750
8,380,000 AAA Palmdale, CA Civic Authority
Revenue, Series A, MBIA-
Insured, 5.500% due
7/1/23 7,782,925
4,100,000 AAA Palmdale, CA Water District,
COP, (Littlerock Dam
Project), Series A,
MBIA-Insured, 5.600% due 10/1/17 3,910,375
3,000,000 AAA San Bernadino County, CA COP,
West Valley Detention
Center, MBIA-
Insured, 6.000% due 11/1/18 2,970,000
2,000,000 AAA San Buenaventura, CA COP,
(Capital Improvement
Project), AMBAC-
Insured, 5.500% due 1/1/17 1,885,000
San Francisco, CA City
and County, Sewer Revenue,
FGIC-Insured:
4,365,000 AAA 5.375% due
10/1/16 4,026,713
6,700,000 AAA 5.375% due
10/1/22 6,113,750
Santa Clara County, CA
Finance Authority, AMBAC-Insured:
5,500,000 AAA 6.750% due 11/15/20
5,885,000
2,000,000 AAA 6.250% due 11/15/22
2,030,000
Sierra, CA Unified School
District, COP:
395,000 Baa* 5.450% due
3/1/02 383,644
405,000 Baa* 5.550% due
3/1/03 391,837
5,000,000 AAA Simi Valley, CA Public Finance
Authority Revenue,
5.750% due 9/1/23
4,812,500
3,200,000 AAA South Coast, CA Air Quality
Management, Installment Sale
Headquarters, AMBAC-
Insured, 5.500% due 8/1/14 3,044,000
5,500,000 AAA South Orange County, CA
Special Tax Revenue, Series A,
MBIA-Insured, 6.000%
due 9/1/18 5,445,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------392,544,447
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Colorado -- 12.3%
Arapahoe County, CO
Capital Improvement Transportation
Highway Revenue:
350,000,000 Baa* Zero coupon due
8/31/26 35,000,000
42,250,000 Baa* 7.000% due
8/31/26 43,359,062
12,765,000 BBB Colorado Springs, CO Airport
Revenue, Series A,
7.000% due 1/1/22(a)
13,259,644
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995 --------------------------------------------
- ------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
==========
<C> <C> <S>
<C>
Colorado -- 12.3% (continued)
Dawson Ridge, CO
Metropolitan District No. 1,
(Escrowed to
Maturity with U.S. Government Securities):
$624,000,000 Aaa* Series A, zero coupon due
10/1/22(b) $ 94,380,000
67,785,000 Aaa* Series B, zero coupon
due 10/1/22(b) 10,252,481
Denver, CO City & County
Airport Revenue:
Series A:
26,500,000 Baa* 14.000% due
11/15/08(a) 44,851,250
13,500,000 Baa* 8.000% due
11/15/25(a) 14,799,375
Series C:
3,500,000 Baa* 6.750% due
11/15/13(a) 3,548,125
12,035,000 Baa* 6.750% due
11/15/22(a) 12,080,131
22,425,000 Baa* Series D, 7.000% due
11/15/25(a) 23,097,750
1,600,000 A- East Cherry Creek Valley, CO
Water & Sanitation District
Revenue Bonds,
10.125% due 12/1/00 1,700,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------296,327,818
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Connecticut -- 3.2%
Connecticut State, Series
A:
10,875,000 Aa* 5.700% due 3/15/10
11,024,531
20,115,000 Aa* 5.700% due 3/15/11
20,240,719
13,750,000 Aa* 5.800% due 3/15/12
13,887,500
13,940,000 Aa* 5.800% due 3/15/13
14,027,125
5,590,000 Aa* 5.800% due 3/15/14
5,603,975
10,930,000 Aa* 5.800% due 3/15/15
10,957,325
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------75,741,175
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Florida -- 3.3%
Broward County, FL Public
Improvement Revenue,
GO Bonds:
1,000,000 AA 12.500% due 1/1/02
1,420,000
1,250,000 AA 12.500% due 1/1/03
1,834,375
1,500,000 AA 12.500% due 1/1/04
2,274,375
1,750,000 AA 12.500% due 1/1/05
2,725,625
2,000,000 AA 12.500% due 1/1/06
3,187,500
Dade County, FL Aviation
Revenue:
9,150,000 AAA Series B, 6.000% due
10/1/24(a) 9,138,562
11,500,000 AAA Series C, 5.750% due
10/1/25 11,255,625
Florida State Board of
Education, GO, Capital Outlay:
11,110,000 AA Series C, 5.875% due
6/1/23 10,971,125
4,900,000 AA Series E, 5.250% due
6/1/23 4,452,875
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995 --------------------------------------------
- ------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
Florida -- 3.3% (continued)
Martin County, FL IDA,
Indiantown Cogeneration:
$ 10,000,000 BBB- Project A, 7.875% due
12/15/25(a) $
10,950,000
6,010,000 BBB- Project B, 8.050% due
12/15/25(a) 6,656,075
4,000,000 AAA Orange County, FL Health
Facilities Authority Revenue,
Hospital-Adventist Health Systems,
5.750% due 11/15/25
3,865,000
4,340,000 AAA Palm Beach County, FL School
Board, COP, Series A,
AMBAC-Insured,
5.375% due 8/1/15 4,085,025
Tampa, FL Revenue Bonds,
(Florida Aquarium Inc. Project):
3,000,000 NR 7.550% due 5/1/12
3,135,000
3,000,000 NR 7.750% due 5/1/27
3,112,500
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------79,063,662
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Georgia -- 0.7%
580,000 A+ Brunswick, GA
Housing Authority, Multi-Family Housing
Revenue, (Cypress Mill), FHA-Insured,
9.750% due 8/1/26
612,625
Richmond County, GA
Development Authority Revenue,
(Escrowed to
Maturity with U.S. Government
Securities):
46,590,000 NR Series A, 1st
Mortgage, zero coupon due 12/1/21(b) 7,454,400
12,800,000 NR Subseries C,
Remarketed 3/23/92, zero coupon due
12/1/21(b)
2,048,000
19,705,000 NR Savannah, GA EDA Revenue,
(Escrowed to Maturity with
U.S. Government
Securities), zero coupon due
12/1/21(b)
3,152,800
Washington, GA EDA,
(Wilkes Payroll Company),
(Escrowed to
Maturity with U.S. Government
Securities):
16,625,000 Aaa* Zero coupon due
12/1/21(b) 2,660,000
8,800,000 Aaa* Zero coupon due
12/1/21(b) 1,408,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------17,335,825
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Illinois -- 1.4%
4,000,000 AA- Chicago, IL Gas Supply Revenue
Refunding, The Peoples
Gas, Series A,
6.100% due 6/1/25 3,980,000
3,500,000 BBB+ Illinois Educational
Facilities Authority Revenue, (Chicago
Osteopathic
College), 9.625% due 7/1/05 3,600,625
4,590,000 AAA Illinois Municipal Electric
Agency Power Supply System
Revenue, Series A,
AMBAC-Insured, 5.750% due 2/1/21 4,366,237
</TABLE>
See Notes to Financial Statements.
12
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
Illinois -- 1.4% (continued)
Illinois State, GO:
$ 4,000,000 AA- 5.750% due 4/1/13
$ 3,910,000
5,600,000 AA- 5.750% due 4/1/14
5,439,000
12,900,000 AA- 5.875% due 8/1/16
12,625,875
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------33,921,737
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Indiana -- 1.2%
Indiana Bond Bank, State
Revenue, Guarantee-State
Revolving Fund,
Project A:
2,500,000 A 6.000% due 2/1/15
2,515,625
2,205,000 A 6.000% due 2/1/16
2,210,512
Indiana Health Facilities
Authority Revenue, (Riverview
Hospital):
245,000 Baa1*
5.800% due 8/1/97 245,612
240,000 Baa1*
6.000% due 8/1/98 240,000
255,000 Baa1*
6.200% due 8/1/99 255,637
305,000 Baa1*
6.500% due 8/1/01 308,812
200,000 Baa1*
6.600% due 8/1/02 202,750
3,700,000 A* St. Anthony Medical Home Inc.,
Series H,
9.250% due 10/1/17
4,139,375
2,000,000 AAA Indiana University Revenues,
Student Fee, Series K,
MBIA-Insured, 5.875%
due 8/1/20 1,970,000
15,000,000 AAA Rockport, IN PCR, Series A,
AMBAC-Insured,
6.550% due 6/1/25
15,525,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------27,613,323
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Kentucky -- 0.3%
6,800,000 AAA Louisville & Jefferson County,
KY Airport Authority,
Series C, MBIA-
Insured, 5.500% due 7/1/23(a) 6,273,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Maine -- 0.3%
8,100,000 AA- Maine State Housing Authority,
Mortgage Power Revenue,
5.650% due 11/15/20
7,563,375
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Maryland -- 2.7%
5,000,000 AAA Baltimore County, MD Waste
Water Revenue, Series A,
MBIA-Insured, 5.600%
due 7/1/13 4,925,000
2,000,000 AAA Baltimore County, MD Mortgage
Revenue Refunding,
Northbrooke Apartments Project A,
6.350% due 1/20/21
2,005,000
56,000,000 NR Maryland State Energy, Solid
Waste Disposal Revenue,
(Recycling
Hagerstown), 9.000% due 10/15/16 56,840,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------63,770,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------</TABLE>
See Notes to Financial Statements.
13
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
Massachusetts -- 6.4%
$ 4,785,000 AAA Massachusetts Bay
Transportation Authority, Series A,
MBIA-Insured, 5.500%
due 3/1/22 $
4,450,050
Massachusetts State,
Health and Educational Facilities
Authority Revenue:
2,120,000 AAA Baystate Medical
Center, Series D, FGIC-Insured,
5.000% due
7/1/20 1,857,650
7,535,000 AAA Massachusetts General
Hospital, Series G, AMBAC-
Insured, 5.250%
due 7/1/23 6,800,338
7,870,000 AAA Massachusetts General
Hospital, AMBAC-Insured,
5.375% due
7/1/23 7,250,237
3,000,000 AAA New England Medical
Center, MBIA-Insured,
3.100% due
7/1/13 2,403,750
15,250,000 AAA Newton Wellesley
Hospital, Series E, MBIA-Insured,
6.000% due
7/1/25 15,192,812
16,500,000 AAA Tufts University,
Series F, FGIC-Insured,
5.950% due
8/15/18 16,603,125
2,000,000 AAA Series G, MBIA-
Insured, 5.375% due 7/1/24 1,850,000
31,700,000 NR Massachusetts State,
Industrial Finance Agency, Solid
Waste Disposal
Revenue, Series A, 9.000% due 8/1/16 32,968,000
Massachusetts State Water
Resources Authority:
Series A, MBIA-
Insured:
29,405,000 AAA 6.000% due 8/1/20
29,441,756
4,240,000 AAA 6.000% due 8/1/24
4,245,300
3,000,000 A Series B, 5.500% due
3/1/17 2,820,000
13,000,000 AAA Massachusetts State HFA Multi-
Family Housing, Series A,
MBIA-Insured, 6.150%
due 7/1/18 12,918,750
13,835,000 AAA Massachusetts State GO, Series
A, MBIA-Insured,
5.750% due 2/1/15
13,713,944
1,250,000 AAA Southeastern Massachusetts
University Building
Refunding, Series A, AMBAC-Insured,
5.750% due 5/1/16
1,229,688
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------153,745,400
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Michigan --5.1%
4,500,000 AAA Detroit, MI Sewer Disposal
Revenue Refunding, Series A,
FGIC-Insured, 5.700%
due 7/1/13 4,432,500
Lakeshore, MI Public
Schools, MBIA-Insured:
2,500,000 AAA 5.750% due 5/1/15
2,487,500
2,500,000 AAA 5.700% due 5/1/22
2,446,875
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
Michigan --5.1% (continued)
$ 18,215,000 AAA Michigan State Housing
Development Authority, Rental
Housing Revenue,
Series B, MBIA-Insured,
6.150% due 10/1/15
$ 18,078,388
Michigan State Trunk Line
Bonds:
15,055,000 AAA Series A, 5.500% due
10/1/21 13,907,056
5,000,000 AA- Series B-2, 5.500% due
10/1/21 4,618,750
17,000,000 NR Michigan State Strategic
Funding Limited Obligation
Revenue, (Blue Water Fiber Project),
8.000% due 1/1/12
16,192,500
56,625,000 NR Midland County, MI Economic
Development
Corporation, PCR
Bonds, Subordinated Limited
Obligation, Series
B, 9.500% due 7/23/09(a) 61,155,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------123,318,569
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Minnesota -- 1.2%
4,400,000 NR Dakota County, MN Housing
Redevelopment Authority
Series, Multi-Family
Mortgage Revenue, Series 1985A,
9.500% due 6/1/08
4,295,500
21,690,000 Baa1* St. Paul, MN Housing and
Redevelopment Authority,
Hospital Revenue
Bonds, (Healtheast Project),
Series D, 9.750% due
11/1/17 23,831,888
1,430,000 CCC St. Paul, MN Port Authority,
IDR, Series 1984B,
11.000% due 12/1/13
1,430,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------29,557,388
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Montana -- 1.3%
33,400,000 NR Montana State Board, Resource
Recovery Revenue,
Yellowstone Energy LP Project,
7.000% due
12/31/19(a) 31,938,750
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Nevada -- 0.4%
9,275,000 AAA Clark County, NV School
District, Series A, MBIA-Insured,
5.875% due 6/15/23
9,332,969
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------New Hampshire -- 1.9%
18,655,000 AAA New Hampshire Higher Education
& Health Facilities
Authority Revenue,
(Mary Hitchcock Memorial Hospital),
FGIC-Insured, 5.750%
due 8/15/23 18,072,031
23,500,000 BBB- New Hampshire IDA, PCR Bonds,
(UTD Illuminating),
Series B, 10.750%
due 10/1/12(a) 26,555,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------44,627,031
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------</TABLE>
See Notes to Financial Statements.
15
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995 --------------------------------------------
- ------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
New Jersey -- 1.2%
$ 23,000,000 AAA Salem County, NJ Industrial
Pollution Control, Financing
Authority Revenue
Bonds, (Public Service Electric &
Gas Project), Series A, MBIA-Insured,
5.700% due 5/1/28
$ 21,965,000
7,770,000 A+ South Jersey Port Corporation,
NJ Revenue, Marine
Terminal, Series G,
5.600% due 1/1/23 7,226,100
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------29,191,100
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------New Mexico -- 0.1%
1,500,000 AAA Farmington, NM Utility Systems
Revenue Bonds,
FGIC-Insured, 9.750%
due 5/15/13 1,590,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ----------
New York --8.5%
Battery Park City
Authority, NY Revenue Refunding,
Series A:
12,275,000 AA 5.250% due 11/1/17
11,001,469
2,685,000 AA 5.700% due 11/1/20
2,544,037
12,245,000 AA Housing New York, Corporation
Revenue Refunding,
5.000% due 11/1/18
10,561,313 New York City, NY Municipal Water Finance
Authority,
Water & Sewer
Revenue:
Series A:
23,280,000 A* 5.500% due
6/15/23
21,388,500
21,000,000 A* 6.000% due
6/15/25
20,658,750
3,300,000 AAA Series A, AMBAC-
Insured, 5.750% due 6/15/18 3,217,500
Series A, FGIC-
Insured:
8,185,000 AAA 5.750% due
6/15/18 7,980,375
10,000,000 A* 5.500% due
6/15/20 9,225,000
Series F, MBIA-
Insured:
13,665,000 AAA 5.500% due
6/15/15
13,032,994
3,050,000 AAA 5.750% due
6/15/20 2,969,937
4,000,000 AAA 5.500% due
6/15/23 3,755,000
New York State Dormitory
Authority:
Iona College, MBIA-
Insured:
485,000 AAA 6.600% due
7/1/07 524,406
420,000 AAA 6.600% due
7/1/08 452,025
555,000 AAA 6.600% due
7/1/09 593,156
540,000 AAA 6.700% due
7/1/10 579,825
5,000,000 AAA City University, 6.250%
due 7/1/19 5,100,000
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
New York --8.5% (continued)
$ 7,420,000 Aa* New York State Environmental
Facilities Corporation,
PCR, State Water
Revolving Fund, NYC Muni Water,
5.875% due 6/15/14
$ 7,373,625
New York State, Local
Government Assistance
Corporation:
Series A:
2,135,000 A 5.900% due
4/1/12 2,143,006
1,950,000 A 5.900% due
4/1/13 1,947,563
3,420,000 A 5.500% due
4/1/23 3,146,400
8,060,000 A Series B, 5.500% due
4/1/21 7,475,650
Series C:
7,000,000 A 5.500% due
4/1/18 6,571,250
5,480,000 A 5.000% due
4/1/21 4,733,350
2,000,000 Aa* New York State Mortgage Agency
Revenue,
Homeowner's
Mortgage, 5.850% due 10/1/25(a) 1,875,000
2,000,000 A* New York State Refunding GO,
12.000% due 11/15/03 2,945,000
New York State Thruway
Authority Revenue,
FGIC-Insured:
Series A,
8,460,000 AAA 5.500% due
1/1/23 7,973,550
Series C:
4,250,000 AAA 6.000% due 1/1/15
4,292,500
30,825,000 AAA 6.000% due 1/1/25
30,863,531
New York State Urban
Development Revenue,
MBIA-Insured:
3,500,000 AAA Higher Education
Technology Grants,
5.250% due
1/1/18 3,202,500
Youth
Facilities:
4,000,000 AAA 5.700% due 4/1/14
3,895,000
1,940,000 AAA 5.750% due 4/1/15
1,910,900
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------203,933,112
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------North Carolina -- 0.2%
4,500,000 BBB+ Carteret County, NC COP,
(Elementary School Project),
6.500% due 2/1/07
4,640,625
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------North Dakota -- 0.1%
1,000,000 NR Grand Forks, ND Housing
Facilities Revenue, (Senior
United Health
Resources), 9.250% due 12/1/10 1,126,250
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------</TABLE>
See Notes to Financial Statements.
17
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
Ohio -- 1.3%
$ 3,000,000 Aaa* Akron, Bath and Copley, OH
Joint Township, Hospital
Revenue Bonds,
(Akron City Hospital Project),
8.875% due 11/15/07
$ 3,356,250
2,000,000 AAA Cuyahoga County, OH Hospital
Facility Authority,
(Brentwood Hospital
Project), Revenue Bond,
9.625% due 11/1/14
2,057,500
2,000,000 AA Grandview Heights, OH City
School District,
6.050% due 12/1/15
2,040,000
11,500,000 AAA Ohio State Water Development
Authority Revenue,
Fresh Water, AMBAC-
Insured, 5.900% due 12/1/21 11,514,375
3,000,000 BBB+ State of Ohio, Air Quality
Development Authority, PCR,
(Cincinnati Gas &
Electric), 10.125% due 12/1/15 3,112,500
10,145,000 Aa3* Toledo Lucas County, OH Port
Authority, (Cargill Inc.
Project), 5.900% due
12/1/15 10,208,406
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------32,289,031
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Oklahoma -- 0.1%
1,975,000 AA Tulsa, OK Industrial Authority
Hospital Revenue, St. John
Medical Center,
6.250% due 2/15/17 1,984,875
1,000,000 AA- Woods County, OK IDA, Revenue
Refunding, (Cargill Inc.
Project), 6.250% due
10/1/14 1,021,250
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------3,006,125
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Oregon -- 0.4%
1,750,000 AA Clackamas County, OR Hospital
Facility Authority, Revenue
Bonds (Kaiser
Permanente), 9.375% due 11/1/15 1,798,125
6,950,000 Aa* Oregon State, GO Bonds, Series
B, 6.375% due 8/1/24 7,193,250
1,500,000 AAA Oregon Veterans Welfare, GO
Bonds, Series L,
12.500% due
9/1/06 1,655,625
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------10,647,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Pennsylvania -- 0.6%
2,000,000 AAA Bradford, PA Area School
District, FGIC-Insured,
5.800% due
10/1/19 1,970,000
100,000 D Delaware County, PA
Hospital Authority Revenue Bonds,
(Sacred Heart
Medical Center), 9.750% due 9/1/11 60,000
Pennsylvania
Economic Development Financing Authority
Revenue,
(Northhampton Generating Project), Series C:
2,000,000 NR 6.875% due 1/1/11
1,915,000
12,000,000 NR 6.950% due 1/1/21
11,325,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------15,270,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------</TABLE>
See Notes to Financial
Statements.
18
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
South Carolina -- 0.1%
$ 1,400,000 AAA South Carolina State, Public
Service Revenue, Series B,
FGIC-Insured,
5.875% due 1/1/23 $
1,380,750
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Tennessee -- 0.5%
Chattanooga, TN
Health, Educational & Housing Facility
Board, Mortgage
Revenue, Red Bank Health Care,
FHA-Insured:
90,000 A
11.250% due 2/1/00 110,362
90,000 A
11.250% due 8/1/00 112,388
100,000 A 11.250%
due 2/1/01 126,500
105,000 A 11.250%
due 8/1/01 134,925
110,000 A 11.250%
due 2/1/02 142,863
115,000 A 11.250%
due 8/1/02 151,656
120,000 A 11.250%
due 2/1/03 159,300
130,000 A 11.250%
due 8/1/03 174,850
135,000 A 11.250%
due 2/1/04 181,912
145,000 A 11.250%
due 8/1/04 197,563
150,000 A 11.250%
due 2/1/05 206,812
180,000 A 11.250%
due 8/1/05 250,875
7,000,000 AA Loudon County, TN IDR, 6.200%
due 2/1/23 7,026,250
3,370,000 AA Metropolitan Government
Nashville & Davidson County,
5.700% due
5/15/25 3,243,625
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------12,219,881
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Texas -- 9.4%
26,565,000 Aaa* Arlington, TX ISD, 5.750% due
2/15/21 26,166,525
Austin, TX Water, Sewer &
Electric Authority
Revenue Bonds:
855,000 AAA 14.000%
due 11/15/01, (Escrowed to Maturity
with U.S.
Government Securities)(b) 1,158,525
49,175,000 A* 14.000% due
11/15/01 67,738,563
16,535,000 Aaa* Burleson, TX ISD, 6.750% due
8/1/24 17,651,112
Copperas Cove Island, TX
ISD Refunding:
1,960,000 AAA 5.600% due 2/1/13
1,955,100
2,035,000 AAA 5.600% due 2/1/14
2,019,737
8,500,000 AAA El Paso, TX ISD Refunding,
6.000% due 2/15/19 8,478,750
1,215,000 AAA Fort Bend County, TX Levee
Improvement District
No. 011, MBIA-
Insured, 5.875% due 3/1/13 1,215,000
5,000,000 Aaa* Frisco, TX ISD, 5.400% due
8/15/23 4,668,750
</TABLE>
See Notes to Financial Statements.
19
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
Texas -- 9.4% (continued)
$ 1,000,000 Aa3* Harris County, TX IDR
Corporation Refunding,
(Cargill Inc.
Project), 7.000% due 10/1/15 $
1,080,000
Leander, TX ISD:
1,000,000 Aaa* 5.600% due 8/15/13
968,750
1,260,000 Aaa* 5.600% due 8/15/15
1,211,175
2,000,000 Aaa* 5.625% due 8/15/19
1,910,000
2,000,000 Aaa* 5.625% due 8/15/20
1,895,000
45,635,000 AAA Matagorda County, TX
Navigational District No. 1, PCR
Refunding, Power &
Light Co., MBIA-Insured,
6.100% due 7/1/28
45,806,131
Port Arthur, TX MBIA-
Insured:
1,025,000 AAA 5.500% due 2/15/16
977,594
4,775,000 AAA 5.500% due 2/15/20
4,506,406
Sam Rayburn, TX Municipal
Power Agency:
12,560,000 BB Series A, 6.750% due
10/1/14 11,351,100
Series B:
5,700,000 BB 5.750% due
10/1/08 4,788,000
12,835,000 BB 5.500% due
10/1/20 9,578,119
8,440,000 AAA Sherman, TX ISD, Series A,
5.750% due 2/15/25 8,123,500
University of Texas
Revenue Financing Systems,
Series A:
1,675,000 AA+ 5.375% due
8/15/13 1,595,438
1,790,000 AA+ 5.375% due
8/15/14 1,691,550
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------226,534,825
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Utah -- 0.3%
Salt Lake City, UT
Housing Authority, Multi-Family Revenue
Refunding, HDC,
Project A:
1,160,000 A 6.000% due 4/1/12
1,122,300
2,650,000 A 6.000% due 4/1/25
2,510,875
Utah State HFA, Single-
Family Mortgage Revenue:
4,960,000 Aa* FHA-Insured, 5.700% due
7/1/26 4,532,200
5,000 AA Private
Insured Mortgage, 10.750% due 7/1/08 5,113
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------8,170,488
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Virginia -- 1.3%
9,850,000 AAA Chesapeake Bay, VA Bridge and
Tunnel District Revenue
Refunding,
General Resolution, MBIA-Insured,
5.750% due
7/1/25 9,579,125
</TABLE>
See Notes to Financial
Statements.
20
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
Virginia -- 1.3% (continued)
$ 2,500,000 A- Hampton, VA Museum Revenue
Refunding,
5.250% due
1/1/09 $
2,387,500
2,160,000 AA Norfolk, VA Redevelopment and
Housing Authority
Educational
Facilities Revenue, Tidewater Community
College Campus,
5.875% due 11/1/15 2,157,300
Riverside, VA
Regulatory Jail Authority Facility Revenue,
MBIA-Insured:
2,035,000 AAA 5.875% due 7/1/14
2,047,719
15,370,000 AAA 6.000% due 7/1/25
15,370,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------31,541,644
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Washington -- 4.0%
Washington State:
12,150,000 AA Series A, 5.750% due
9/1/19 11,876,625
3,500,000 AA Series B, 5.750% due
5/1/18 3,443,125
6,800,000 AA Series 1993A, 5.750% due
10/1/17 6,689,500
15,260,000 AA Series 1995C, 5.800% due
7/1/20 14,992,950
Washington State,
Public Power Supply Systems,
Revenue
Refunding:
Nuclear Project #1,
Series B,
6,995,000 AAA MBIA-Insured, 5.600% due
7/1/15 6,592,787
24,000,000 AA 5.500% due 7/1/17
21,630,000
29,220,000 AA 5.500% due 7/1/18(c)
26,261,475
5,500,000 AA Series C, 5.375% due
7/1/15 4,936,250
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------96,422,712
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------West Virginia -- 1.5%
40,000,000 NR Marion County, WV County
Commissioner, Solid Waste
Facility,
(American Power, Paper Recycling Project),
7.750% due
12/1/11(a) 36,450,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Wisconsin -- 0.1%
2,000,000 AA Wisconsin Housing & EDA, Home
Ownership Revenue,
Series A,
6.450% due 3/1/17 2,032,500
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Wyoming -- 0.2%
4,000,000 AAA Natrona County, WY Hospital
Revenue, (Wyoming
Medical Center
Project), AMBAC-Insured,
6.000% due 9/15/24
3,950,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------TOTAL MUNICIPAL BONDS AND NOTES
(Cost -- $2,139,605,079)
2,217,372,175
============================================================
============================================================
========== </TABLE>
See Notes to Financial Statements.
21
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995 --------------------------------------------
- ------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
SHORT-TERM INVESTMENTS (d) -- 7.8%
Alabama -- 0.4%
$ 8,400,000 A-1+ McIntosh, AL IDB, PCR, (Geiby
Corporation Project),
3.500% due 7/1/04
$ 8,400,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Alaska -- 0.6%
15,100,000 A-1+ Valdez, AK Marine Terminal
Revenue Refunding, (Exxon
Pipeline Company
Project A), 3.400% due 12/1/33
15,100,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Arizona -- 0.2%
Maricopa County, AZ PCR,
Public Service:
2,700,000 A-1+ Series A, 3.500% due
5/1/24 2,700,000
2,000,000 A-1 Series D, 3.400% due
5/1/24 2,000,000
300,000 A-1+ Pinal County, AZ
IDA, PCR, 3.650% due 12/1/09 300,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------5,000,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------California -- 0.2%
California Pollution
Control Finance Authority,
Resource Recovery:
100,000 P-1* Ultrapower
Malaga, Series A, 3.650% due 4/1/17 100,000
100,000 P-1* Ultrapower
Rocklin, Series A, 3.650% due 6/1/17 100,000
900,000 Aa1* Delano
Project, 3.600% due 8/1/19 900,000
100,000 VMIG 1* California
Pollution Control Finance Authority, Solid
Waste Disposal
Revenue, Shell Oil Company,
(Martinez Project
A), 3.700% due 10/1/24 100,000
3,100,000 VMIG 1* California Statewide
Communities, Development
Authority Revenue,
COP, (St. Joseph Health Systems),
3.400% due 7/1/08
3,100,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------4,300,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------District of Columbia -- 0.1%
1,700,000 VMIG 1* District of Columbia,
Series A-2, 3.800% due 10/1/07 1,700,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Delaware -- 0.1%
Delaware State, EDA
Revenue, Delmarva Power and Light:
200,000 VMIG 1* 3.750% due
10/1/17 200,000
2,600,000 VMIG 1* 3.750% due 10/1/29
2,600,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------2,800,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ----------
Florida -- 0.5%
Hillsborough County, FL
IDA, PCR, (Tampa Electric
Company Project):
2,700,000 VMIG 1* 3.500% due
9/1/25 2,700,000
1,200,000 VMIG 1* 3.700% due
11/1/20 1,200,000
</TABLE>
See Notes to Financial Statements.
22
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995 --------------------------------------------
- ------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
Florida -- 0.5% (continued)
$ 1,700,000 A-1 Pinellas County, FL Health
Facilities Authority Revenue,
Pooled Hospital Loan
Program, 3.650% due 12/1/15 $
1,700,000
6,100,000 VMIG 1* St. Lucie County, FL PCR,
Florida Power and Light
Company Project,
3.400% due 3/1/27 6,100,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------11,700,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Georgia -- 0.1%
1,800,000 VMIG 1* Georgia State Hospital
Finance Authority Revenue,
Pooled Hospital Loan
Program, 3.650% due 3/1/01 1,800,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Illinois -- 0.0%
600,000 VMIG 1* Southwestern IL
Development Authority, Solid Waste
Disposal Revenue,
(Shell Oil Company Wood River
Project), 3.750% due
4/1/22 600,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Indiana -- 0.1%
3,000,000 VMIG 1* Jasper County, IN PCR,
Northern IN Public Service,
Series A, 3.500% due
8/1/10 3,000,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Kansas -- 0.1%
2,700,000 NR Butler County, KS Solid Waste
Disposal and Cogeneration
Revenue, (Texaco
Refining and Marketing), Series B,
3.800% due 8/1/24
2,700,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Louisiana -- 1.4%
Ascension Parish, LA PCR:
6,000,000 P-1* BASF Corporation Project,
3.550% due 3/1/25 6,000,000
10,000,000 P-1* Wyandotte Corporation,
3.500% due 12/1/05 10,000,000
1,100,000 VMIG 1* Calcasieu Parish Inc., LA
IDB Environmental Revenue,
(Citgo Petroleum
Corporation Project),
3.800% due 12/1/24
1,100,000
6,200,000 VMIG 1* Louisiana State Recovery,
District Sales Tax Revenue,
3.550% due 7/1/98
6,200,000
2,400,000 VMIG 1* St. Charles Parish, LA
PCR, (Shell Oil Company Project),
Series A, 3.750% due
10/1/22 2,400,000
West Baton Rouge Parish,
LA Industrial District No. 1,
(Dow Chemical
Company Project):
4,000,000 A-1 Series A, 3.800% due
12/1/24 4,000,000
1,400,000 A-1 Series B, 3.600% due
12/1/16 1,400,000
2,700,000 A-1 3.800% due 12/1/23
2,700,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ----------
33,800,000 ----
- ------------------------------------------------------------
- ------------------------------------------------------------
- -----</TABLE>
See Notes to Financial Statements.
23
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995 --------------------------------------------
- ------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
Massachusetts -- 0.2%
Commonwealth of Massachusetts:
$ 3,500,000 VMIG 1* Series B, 3.300% due
12/1/97 $
3,500,000
1,900,000 VMIG 1* Series E, 3.300% due
12/1/97 1,900,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------5,400,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Michigan -- 0.4%
1,900,000 VMIG 1* Grand Rapids, MI Water Supply,
3.400% due 1/1/20 1,900,000
600,000 A-1 Michigan State, Strategic
Funding, Limited Obligation
Revenue, (Dow Chemical
Company Project),
3.500% due 2/1/09
600,000
2,500,000 A-1 Midland County, MI EDA, Limited
Obligation Revenue,
(Dow Chemical Project),
Series A, 3.500% due 12/1/23 2,500,000
5,700,000 VMIG 1* University, MI University
Revenues, Series A,
3.500% due 12/1/19
5,700,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------10,700,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Mississippi -- 0.3%
2,700,000 Aa2* Jackson County, MS Industrial Sewer
Facilities Revenue,
(Chevron USA Inc.
Project), 3.750% due 12/15/24 2,700,000
3,400,000 P-1* Jackson County, MS Port Facilities,
(Chevron USA Inc.
Project), 3.550% due
6/1/23 3,400,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------6,100,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Missouri -- 0.2%
Kansas City, MO IDA, Hospital
Revenue, Research Health
Services Systems:
2,400,000 VMIG 1* 3.500% due 10/15/14
2,400,000
2,300,000 A+ 3.500% due 4/15/15
2,300,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------4,700,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Nevada -- 0.5%
Clark County, NV IDR,
Cogeneration Association Project:
8,900,000 VMIG 1* 3.600% due 11/1/20
8,900,000
4,100,000 VMIG 1* 3.600% due 11/1/21
4,100,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------13,000,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------New Mexico -- 0.2%
400,000 A-1+ Farmington, NM PCR,
Arizona Public Service Company,
Series B, 3.400% due
9/1/24 400,000
4,700,000 A-1+ Town of Hurley, NM PCR, Kennecott
Santa Fe,
3.600% due 12/1/15
4,700,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------5,100,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------</TABLE>
See Notes to Financial Statements.
24
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995 --------------------------------------------
- ------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
New York -- 0.6%
New York, NY GO:
$ 1,000,000 VMIG 1* Subseries A-4, 3.600% due
8/1/22 $ 1,000,000
2,000,000 VMIG 1* Subseries E-4, 3.400% due
8/1/22 2,000,000
200,000 VMIG 1* Subseries E-5,
3.500% due 8/1/17 200,000
600,000 A-1+ New York City IDA,
3.750% due 11/1/15 600,000
100,000 VMIG 1* New York State
Dormitory Authority Revenue,
(St. Francis Center at
the Knolls), 3.550% due 7/1/23 100,000
4,865,000 VMIG 1* New York State Job Development
Authority, State
Guaranteed, Series A-1,
3.750% due 3/1/05 4,865,000
6,000,000 VMIG 1* Port Authority of NY and NJ,
Obligation Revenue,
Versatile Structure
Obligation, Series 2,
3.350% due 5/1/19
6,000,000
100,000 VMIG 1* Suffolk County, NY
IDR Refunding, (Photronics
Corporation Facilities),
3.600% due 1/1/98 100,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------14,865,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------North Carolina -- 0.1%
2,900,000 VMIG 1* North Carolina Medcare
Community Hospital Revenue,
Pooled Financing Project, Series A,
3.450% due 10/1/20
2,900,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------South Carolina -- 0.1%
100,000 VMIG 1* Orangeburg County,
SC Solid Waste Disposal Facilities
Revenue, SC Electric and
Gas, 3.600% due 10/1/24 100,000
1,000,000 Aa2* South Carolina Jobs EDA, (Wellman
Inc. Project),
3.850% due 12/1/12
1,000,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------1,100,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Texas -- 0.8%
2,900,000 A-1 Brazos River, TX HBR Nav. District,
(Dow Chemical
Company Project), Series
A, 3.800% due 12/1/18 2,900,000
Gulf Coast, TX IDA, Solid
Waste Disposal Revenue,
(Citgo Petroleum
Corporation Project):
1,400,000 VMIG 1* 3.800% due 5/1/25
1,400,000
1,100,000 VMIG 1* 3.800% due 4/1/26
1,100,000
Gulf Coast, TX Waste Disposal
Authority, PCR, (Amoco
Oil Company Project):
9,000,000 VMIG 1* 3.400% due 10/1/17
9,000,000
1,800,000 VMIG 1* 3.750% due 8/1/23
1,800,000
1,900,000 VMIG 1* Harris County, TX Health
Facilities Development
Corporation, Hospital
Revenue, 3.650% due 10/1/17 1,900,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------18,100,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------</TABLE>
See Notes to Financial Statements.
25
<PAGE>
Smith Barney
Managed Municipals Fund Inc.
- ------------------------------------------------------------
- --------------------
Schedule of Investments (unaudited) (continued)
August 31, 1995 --------------------------------------------
- ------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING
SECURITY VALUE
============================================================
============================================================
========== <C> <C> <S>
<C>
Virginia -- 0.2%
$ 2,900,000 AAA Peninsula Port Authority, VA Shell
Company, Series A,
3.450% due 12/1/05
$ 2,900,000
600,000 Aa2* Richmond, VA IDR, Exempt
Facilities, Series A,
3.900% due 12/1/17
600,000
1,700,000 Aa2* South Hampton County, VA IDA,
Exempt Facilities,
Hadson Power, Series 11-
A, 3.850% due 4/1/15 1,700,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------5,200,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Washington -- 0.2%
Washington State Health Care
Facilities Authority Revenue,
Sisters of Providence:
100,000 VMIG 1* Series B,
3.400% due 10/1/05 100,000
100,000 VMIG 1* Series C,
3.400% due 10/1/05 100,000
4,000,000 VMIG 1* Series D, 3.400% due
10/1/05 4,000,000
1,200,000 VMIG 1* Series E, 3.400% due
10/1/05 1,200,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------5,400,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------Wyoming -- 0.2%
1,100,000 Aa3* Green River, WY PCR Refunding,
(Rhone Poulenc Inc.
Project), 3.700% due
6/1/07 1,100,000
1,300,000 VMIG 1* Green River, WY Revenue, Rhone
Poulenc Wyoming,
3.850% due 10/1/18
1,300,000
2,700,000 A-1+ Kemmerer County, WY PCR, (Exxon
Project),
3.400% due 11/1/14
2,700,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------5,100,000
- ------------------------------------------------------------
- ------------------------------------------------------------
- ---------TOTAL SHORT-TERM INVESTMENTS
(Cost -- $188,565,000)
188,565,000
============================================================
============================================================
========== TOTAL INVESTMENTS -- 100%
(Cost -- $2,328,170,079*)
$2,405,937,175
============================================================
============================================================
========== </TABLE>
(a) Income from these issues is considered a preference item
for purposes of
calculating the alternative minimum tax.
(b) Pre-refunded bonds escrowed by U.S. Government
Securities and bonds escrowed
to maturity by U.S. Government Securities are considered by
manager to be triple-A rated even if issuer has not applied
for new ratings.
(c) Security partially segregated by Custodian for open
futures contract commitments.
(d) Variable rate obligation payable at par on demand at any
time on no more than seven days notice.
* Aggregate cost for Federal income tax purposes is
substantially the same.
See pages 27 & 28 for definition of ratings and certain
security descriptions.
See Notes to Financial Statements.
26
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- ------------------------------------------------Bond Ratings
- ------------------------------------------------------------
- --------------------
All ratings are by Standard & Poor's Corporation, except
those identified by an asterisk (*) are rated by Moody's
Investors Services. The definitions of the applicable rating
symbols are set forth below:
Standard & Poor's -- Rating from "AA" to "BBB" may be
modified by the addition of a plus (+) or minus (-) sign to
show relative standings within the major rating categories.
AAA -- Bonds rated "AAA" have the highest rating
assigned by Standard &
Poor's. Capacity to pay interest and repay principal is
extremely strong.
AA -- Bonds rated "AA" have a very strong capacity to
pay interest and
repay principal and differs from the highest rated issue
only in a small degree.
A -- Bonds rated "A" have a strong capacity to
pay interest and repay
principal although it is somewhat more susceptible to the
adverse effects of changes in circumstances and economic
conditions than debt in higher rated categories.
BBB -- Bonds rated "BBB" are regarded as having an
adequate capacity to
pay interest and repay principal. Whereas they normally
exhibit adequate protection parameters, adverse economic
conditions or changing circumstances are more likely to lead
to a weakened capacity to pay interest and repay principal
for bonds in this category than in higher rated categories.
D -- Bonds rated "D" are in default, and
payment of interest and/or
repayment of principal is in arrears.
Moody's -- Numerical modifiers 1, 2 and 3 may be applied to
each generic rating from "Aa" to "Baa", where 1 is the
highest and 3 the lowest ranking within its generic
category.
Aaa -- Bonds that are rated "Aaa" are judged to be of
the best quality.
They carry the smallest degree of investment risk and are
generally referred to as "gilt edge". Interest payments are
protected by a large or by an exceptionally stable margin
and principal is secure. While the various protective
elements are likely to change, such changes as can be
visualized are most unlikely to impair the fundamentally
strong position of such issues.
Aa -- Bonds that are rated "Aa" are judged to be of
high quality by all
standards. Together with the "Aaa" group
they comprise what are
generally known as high grade bonds. They are rated lower
than the best bonds because margins of protection may not be
as large in Aaa securities or fluctuation of protective
elements may be of greater amplitude or there may be other
elements present which make the long-term risks appear
somewhat larger than in Aaa securities.
A -- Bonds that are rated "A" possess many favorable
investment
attributes and are to be considered as upper medium grade
obligations. Factors giving security to principal and
interest are considered adequate but elements may be present
which suggest a susceptibility to impairment some time in
the future.
Baa -- Bonds that are rated "Baa" are considered as medium
grade
obligations, i.e., they are neither highly protected nor
poorly secured. Interest payments and principal security
appear adequate for the present but certain protective
elements may be lacking or may be characteristically
unreliable over any great length of time. Such bonds lack
outstanding investment characteristics and in fact have
speculative characteristics as well.
NR -- Indicates that the bond is not rated by Standard &
Poor's
Corporation or Moody's Investors Services.
27 <PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- ------------------------------------------------Short-Term
Securities Ratings ----------------------------------------
- ----------------------------------------
SP-1 -- Standard & Poor's highest rate rating indicating
very strong or
strong capacity to pay principal and interest; those issues
determined to possess overwhelming safety characteristics
are denoted with a plus (+) sign.
A-1 -- Standard & Poor's highest commercial paper and
variable-rate demand
obligation (VRDO) rating indicating that the degree of
safety regarding timely payment is either overwhelming or
very strong; those issues determined to possess overwhelming
safety characteristics are denoted with a plus (+) sign.
VMIG 1 -- Moody's highest rating for issues having a
demand feature -- (VRDO).
P-1 -- Moody's highest rating for commercial paper and for
VRDO prior to
the advent of the VMIG 1 rating.
- ------------------------------------------------------------
- -------------------Security Descriptions -------------------
- ------------------------------------------------------------
- -
ABAG -- Association of Bay Area Governors
AIG -- American International Guaranty
AMBAC -- American Municipal Bond Assurance Corporation
BAN -- Bond Anticipation Notes
BIG -- Bond Investors Guaranty
CGIC -- Capital Guaranty Insurance Company
CHFCLI -- California Health Facility
Construction Loan Insurance
COP -- Certificate of Participation
EDA -- Economic Development Authority
ETM -- Escrowed To Maturity
FAIRS -- Floating Adjustable Interest Rate Securities
FGIC -- Financial Guaranty Insurance Company
FHA -- Federal Housing Administration
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FRTC -- Floating Rate Trust Certificates
FSA -- Federal Savings Association
GIC -- Guaranteed Investment Contract
GNMA -- Government National Mortgage
Association
GO -- General Obligation
HDC -- Housing Development Corporation
HFA -- Housing Finance Authority
IDA -- Industrial Development Authority
IDB -- Industrial Development Board
IDR -- Industrial Development Revenue
INFLOS -- Inverse Floaters
ISD -- Independent School District
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors Assurance Corporation
MVRICS -- Municipal Variable Rate Inverse Coupon Security
PCR -- Pollution Control Revenue
PSF -- Permanent School Fund
RAN -- Revenue Anticipation Notes
RIBS -- Residual Interest Bonds
RITES -- Residual Interest Tax-Exempt Securities
TAN -- Tax Anticipation Notes
TECP -- Tax Exempt Commercial Paper
TOB -- Tender Option Bonds
TRAN -- Tax and Revenue Anticipation
Notes
SYCC -- Structured Yield Curve Certificate
VA -- Veterans Administration
VRDD -- Variable Rate Daily Demand
VRWE -- Variable Rate Wednesday Demand
28
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- ------------------------------------------------Statement of
Assets and Liabilities (unaudited) August
31, 1995 ---------------------------------------------------
- -----------------------------
<TABLE>
<S>
<C>
ASSETS:
Investments, at value (Cost - $2,328,170,079)
$2,405,937,175 Cash
182,937
Receivable for securities sold
26,382,989 Receivable for Fund shares sold
4,351,629 Interest receivable
33,982,256
- ------------------------------------------------------------
- ------------------------------Total Assets
2,470,836,986
- ------------------------------------------------------------
- ------------------------------LIABILITIES:
Investment advisory fees payable
419,636 Administration fees payable
237,087 Distribution fees payable
413,694 Service fees payable
488,061 Payable for securities purchased
16,670,978 Payable to broker
1,893,750 Accrued expenses
1,428,226
- ------------------------------------------------------------
- ------------------------------Total Liabilities
21,551,432
- ------------------------------------------------------------
- -------------------------------
Total Net Assets
$2,449,285,554
============================================================
=============================== NET ASSETS:
Par value of capital shares
$ 154,360 Capital paid in excess of par value
2,348,146,466
Overdistributed net investment income (637,899)
Accumulated net realized gain on
security transactions and futures
22,148,593
Net unrealized appreciation of investments and futures
79,474,034
- ------------------------------------------------------------
- ------------------------------Total Net Assets
$2,449,285,554
============================================================
=============================== Shares Outstanding:
Class A 114,537,368
- ------------------------------------------------------------
- ------------------------------Class B 38,518,055
- ------------------------------------------------------------
- ------------------------------Class C 976,256
- ------------------------------------------------------------
- ------------------------------Class Y 328,118
- ------------------------------------------------------------
- ------------------------------Net Asset Value:
Class A (and redemption price) $15.87
- ------------------------------------------------------------
- ------------------------------Class B* $15.87
- ------------------------------------------------------------
- ------------------------------Class C** $15.86
- ------------------------------------------------------------
- ------------------------------Class Y (and redemption price)
$15.86
- ------------------------------------------------------------
- ------------------------------Class A Maximum Public
Offering Price Per Share
(net asset value plus 4.17% of net asset value per
share) $16.53
============================================================
=============================== </TABLE>
* Redemption price is NAV of Class B shares reduced by a
4.50% CDSC if shares
are redeemed less than one year from initial
purchase (See Note 3).
** Redemption price is NAV of Class C shares reduced by a
1.00% CDSC if shares
are redeemed within the first year of purchase.
See Notes to Financial Statements.
29
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- -------------------------------------------------
Statement of Operations (unaudited) -------------------
- ------------------------------------------------------------
- -
For the Six Months Ended August 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $ 78,203,462
- ------------------------------------------------------------
- ------------------------------EXPENSES:
Investment advisory fees (Note 3) 3,774,328
Distribution fees (Note 3) 3,233,550
Administration fees (Note 3) 2,117,154
Shareholder and system servicing fees 321,312
Custody 132,301
Registration fees 70,668
Audit and legal 69,778
Shareholder communications 62,856
Directors' fees 19,212
Other 195,472
- ------------------------------------------------------------
- ------------------------------Total Expenses
9,996,631
- ------------------------------------------------------------
- ------------------------------Net Investment Income
68,206,831
- ------------------------------------------------------------
- ------------------------------REALIZED AND UNREALIZED GAIN
ON
INVESTMENTS AND FUTURES (NOTES 4 and 7): Realized Gain
(Loss) From:
Security transactions (excluding short-term
securities) 50,458,051
Futures contracts (1,195,531)
- ------------------------------------------------------------
- ------------------------------Net Realized Gain
49,262,520
- ------------------------------------------------------------
- ------------------------------Net Change in Unrealized
Appreciation of Investments
and Futures:
Beginning of period 68,091,433
End of period 79,474,034
- ------------------------------------------------------------
- ------------------------------Increase in Net Unrealized
Appreciation 11,382,601
- ------------------------------------------------------------
- ------------------------------Net Gain on Investments and
Futures 60,645,121
- ------------------------------------------------------------
- ------------------------------Increase in Net Assets From
Operations $128,851,952
============================================================
=============================== </TABLE>
See Notes to Financial Statements.
30
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- ------------------------------------------------Statements
of Changes in Net Assets ------------------------------
- --------------------------------------------------
For the Six Months Ended August 31, 1995 (unaudited)
and the Year Ended February 28, 1995
<TABLE>
<CAPTION>
August 31 February 28 ---------
- ------------------------------------------------------------
- ------------------------------<S>
<C> <C>
OPERATIONS:
Net investment income
$ 68,206,831 $ 133,163,756 Net realized gain (loss)
49,262,520 (13,267,083) Increase (decrease) in net
unrealized appreciation
11,382,601 (33,873,453) ---------------------------
- ------------------------------------------------------------
- ------------
Increase in Net Assets From Operations
128,851,952 86,023,220
- ------------------------------------------------------------
- ---------------------------------------DISTRIBUTIONS TO
SHAREHOLDERS FROM (NOTE 2):
Net investment income
(68,532,140) (132,342,978) Net realized gains
- -- (41,104,797)
- ------------------------------------------------------------
- ---------------------------------------Decrease in Net
Assets From
Distributions to Shareholders
(68,532,140) (173,447,775) --------------------------
- ------------------------------------------------------------
- -------------FUND SHARE TRANSACTIONS (NOTE 6):
Net proceeds from sale of shares
264,421,991 493,112,198
Net asset value of shares issued for
reinvestment of dividends
42,245,450 109,529,136 Cost of shares reacquired
(209,738,000) (419,997,436)
- ------------------------------------------------------------
- ---------------------------------------Increase in Net
Assets From Fund
Share Transactions
96,929,441 182,643,898 ----------------------------
- ------------------------------------------------------------
- -----------Increase in Net Assets
157,249,253 95,219,343
NET ASSETS:
Beginning of period
2,292,036,301 2,196,816,958 -------------------------
- ------------------------------------------------------------
- --------------
End of period*
$2,449,285,554 $2,292,036,301
============================================================
======================================== * Includes
overdistributed net investment income of:
$(637,899) $(312,590)
============================================================
======================================== </TABLE>
See Notes to Financial Statements.
31
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- -------------------------------------------------
Notes to Financial Statements (unaudited) -----------------
- ------------------------------------------------------------
- ---
1. Significant Accounting Policies
Smith Barney Managed Municipals Fund Inc.
("Fund"), a Maryland corporation,
is registered under the Investment Company Act of 1940, as
amended, as an open-
end management investment company.
The significant accounting policies
consistently followed by the Fund are:
(a) security transactions are accounted for on trade date;
(b) securities are
valued at the mean between bid and ask prices provided by
an independent pricing service that are based on
transactions in municipal obligations, quotations from
municipal bond dealers, market transactions in comparable
securities and various relationships between securities; (c)
short-term securities maturing within 60 days are valued at
cost plus accreted discount, or minus amortized premium, as
applicable; (d) gains or losses on the sale of securities
are calculated by using the specific identification method;
(e) interest income, adjusted for amortization of premiums
and accretion of original issue discounts, is recorded on
the accrual basis; market discount is recognized upon the
disposition of the security; (f) direct expenses are charged
to the Fund and each class; investment advisory fees and
general Fund expenses are allocated on the basis of relative
net assets; (g) the Fund intends to comply with the
applicable provisions of the Internal Revenue Code of 1986,
as amended, pertaining to regulated investment companies and
to make distributions of taxable income sufficient to
relieve it from substantially all Federal income and excise
taxes; and (h) certain prior year numbers have been restated
to reflect current year's presentation. Net investment
income, net realized gains, and net assets were not affected
by this change.
2. Exempt-Interest Dividends and Other
Distributions
The Fund intends to satisfy conditions that will enable
interest from
municipal securities, which is exempt from Federal income
tax and from designated state income taxes, to retain such
tax-exempt status when distributed to the shareholders of
the Fund.
Capital gains distributions, if any, are taxable to
shareholders, and are
declared and paid at least annually.
3. Investment Advisory Agreement, Administration Agreement
and Other
Transactions
Smith Barney Mutual Funds Management Inc. ("SBMFM"), a
subsidiary of Smith Barney Holdings Inc. ("SBH"), acts as
investment
32
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- ------------------------------------------------Notes to
Financial Statements (unaudited) (continued) --------------
- ------------------------------------------------------------
- ------
adviser to the Fund. The Fund pays SBMFM an advisory fee
calculated at an annual rate of 0.35% of the average daily
net assets up to $500 million; 0.32% of the average daily
net assets of the next $1.0 billion and 0.29% in excess of
$1.5 billion. This fee is calculated daily and paid monthly.
SBMFM also acts as the Fund's administrator for which
the Fund pays a fee calculated at an annual rate of 0.20% of
the average daily net assets up to $500 million; 0.18% of
the average daily net assets of the next $1.0 billion and
0.16% of the average daily net assets in excess of $1.5
billion. This fee is calculated daily and paid monthly.
In addition, The Boston Company Advisors, Inc. ("Boston
Advisors"), an
indirect wholly owned subsidiary of Mellon Bank Corporation,
acted as administrator to the Fund. SBMFM paid Boston
Advisors a portion of its administration fee at a rate
agreed upon from time to time between SBMFM and Boston
Advisors. As of July 17, 1995 this relationship was
terminated.
Smith Barney Inc. ("SB"), another subsidiary of SBH,
acts as distributor of Fund shares. For the six months ended
August 31, 1995, SB received sales charges of approximately
$1.5 million of the Fund's Class A shares.
There is a contingent deferred sales charge ("CDSC") of
4.50% on Class B shares if redemption occurs less than one
year from initial purchase. This CDSC declines by 0.50% the
first year after purchase and by 1.00% per year thereafter
until no CDSC is incurred. Class C shares have a 1.00% CDSC
if redemption occurs within the first year from the date
such investment was made. For the six months ended August
31, 1995, CDSCs of approximately $587,000 were paid to SB.
Pursuant to a Distribution Plan, the Fund pays a
service fee with respect to its Class A, B and C shares,
calculated at the annual rate of 0.15% of the average daily
net assets for each class. In addition, the Fund pays a
distribution fee with respect to its Class B and C shares
calculated at the annual rate of 0.50% and 0.55%,
respectively, of the average daily net net assets for each
class.
All officers and one director of the Fund are employees
of SB.
33 <PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- ------------------------------------------------Notes to
Financial Statements (unaudited) (continued) --------------
- ------------------------------------------------------------
- ------
4. Investments
During the six months ended August 31, 1995, the
aggregate cost of purchases and proceeds from sales
(including maturities, but excluding shortterm securities)
of investments were as follows:
============================================================
====================
Purchases
$1,164,525,742
- ------------------------------------------------------------
- -------------------Sales
1,359,719,595
============================================================
====================
At August 31, 1995, the gross unrealized appreciation and
depreciation of
investments for Federal income tax purposes were as follows:
============================================================
==================== Gross unrealized appreciation
$101,253,054
Gross unrealized depreciation
(23,485,958)
- ------------------------------------------------------------
- -------------------Net unrealized appreciation
$ 77,767,096
============================================================
====================
5. Capital Loss Carryforwards
At February 28, 1995, the Fund had available for
Federal tax purposes unused capital loss carryforwards of
$1,065,155 expiring in the year 2003. To the extent that
these carryforward losses are used to offset capital gains,
it is probable that the gains so offset will not be
distributed.
6. Capital Shares
At August 31, 1995, there were one billion shares of
$0.01 par value capital stock authorized. The Fund has
established multiple classes of shares. Each share of a
class represents an identical interest in the Fund and has
the same rights, except that each class bears certain
expenses specifically related to the distribution of its
shares. At August 31, 1995, total paid-in capital amounted
to the following for each class:
<TABLE>
<CAPTION>
Class A Class B
Class C Class Y
============================================================
===================================== <S> <C>
<C> <C> <C>
Total Paid-in Capital $1,706,900,157 $621,568,380
$14,955,953 $4,876,336
============================================================
===================================== </TABLE>
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
Six Months Ended
Year Ended
August 31, 1995 February 28,
1995 ---------------------------- ----------------------
- ------
Shares Amount Shares Amount
============================================================
================================= <S> <C>
<C> <C> <C>
Class A
Shares sold 8,107,090 $ 127,537,484 17,117,100
$ 259,346,666
Shares issued on reinvestment 2,054,806 32,259,033
5,781,236 86,678,010
Shares redeemed (10,171,762) (160,367,050)
(22,890,002) (345,915,622)
- ------------------------------------------------------------
- --------------------------------Net Increase (Decrease)
(9,866) $ (570,533) 8,334 $ 109,054
============================================================
================================= </TABLE>
34
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- -------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
-----------------------------------------------------------
- ---------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
1995* February 28, 1995+
----------------------------- -----------------------
- -----Shares Amount Shares Amount
============================================================
======================================== <S>
<C> <C> <C> <C>
Class B
Shares sold 6,766,148 $106,555,513
14,985,398 $ 228,523,461
Shares issued on reinvestment 619,836
9,732,796 1,526,136 22,776,341
Shares redeemed (2,129,108) (33,525,309)
(4,930,470) (73,869,017)
- ------------------------------------------------------------
- ---------------------------------------Net Increase
5,256,876 $ 82,763,000 11,581,064 $ 177,430,785
============================================================
======================================== Class C
Shares sold 650,586 $ 10,223,097
357,851 $ 5,242,071
Shares issued on reinvestment 12,777
200,778 5,107 74,785
Shares redeemed (35,809) (565,336)
(14,256) (212,797)
- ------------------------------------------------------------
- ---------------------------------------Net Increase
627,554 $ 9,858,539 348,702 $ 5,104,059
============================================================
======================================== Class Y
Shares sold 1,287,175 $ 20,105,897
- -- --
Shares issued on reinvestment 3,339
52,843 -- --
Shares redeemed (962,396) (15,280,305)
- -- --
- ------------------------------------------------------------
- ---------------------------------------Net Increase
328,118 $ 4,878,435 -- --
============================================================
======================================== </TABLE>
(*) For Class Y shares, transactions are for the period from
April 4, 1995
(inception date) to August 31, 1995.
+ For Class C shares transactions are for the period
from November 9, 1994
(inception date) to March 31, 1995.
7. Futures Contracts
Initial margin deposits are made upon
entering into futures contracts and
are recognized as assets. The initial margin is segregated
by the custodian as noted in the schedule of investments.
During the period the futures contract is open, changes in
the value of the contract are recognized as unrealized gains
or losses by "marking to market" on a daily basis to reflect
the market value of the contract at the end of each day's
trading. Variation margin payments are made or received and
recognized as assets due from or liabilities due to broker,
depending upon whether unrealized gains or losses are
incurred. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the
proceeds from (or cost of) the closing transaction and the
Fund's basis in the contract.
At August 31, 1995, the Fund had the following open futures
contracts:
<TABLE>
<CAPTION>
Expiration # of Basis
Market Unrealized
Futures contracts sold Month/Year Contracts
Value Value Gain
============================================================
============================================= <S>
<C> <C> <C> <C> <C>
U.S. Government Long
Bond Index 9/95 2300
$261,752,344 $260,259,375 $1,492,969
Municipal Bond Index 9/95 1300
148,982,719 148,768,750 213,969
- ------------------------------------------------------------
- --------------------------------------------$1,706,938
============================================================
============================================= </TABLE>
35
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- -------------------------------------------------
Financial Highlights ------------------------------------
- --------------------------------------------
For a share of each class of capital stock outstanding
throughout each period:
<TABLE>
<CAPTION>
Class A Shares 1995(1)
1995 1994 1993 1992
============================================================
================================================ <S>
<C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $15.47
$16.13 $16.71 $15.62 $14.98 -----------
- ------------------------------------------------------------
- ------------------------------------Income From Operations:
Net investment income 0.47 0.95 0.90 1.00 1.05
Net realized and unrealized
gain (loss) on investments 0.40 (0.37)
0.30 1.64 0.66
- ------------------------------------------------------------
- -----------------------------------------------Total Income
From Operations 0.87 0.58 1.20 2.64 1.71
- ------------------------------------------------------------
- -----------------------------------------------Less
Distributions From:
Net investment income (0.47)
(0.95) (0.87) (1.00) (1.05)
Overdistribution of net income -- (0.00)*
(0.01) -- --
Net realized gains -- (0.29) (0.90)
(0.52) --
Capital -- -- -- (0.03) (0.02)
- ------------------------------------------------------------
- -----------------------------------------------Total
Distributions (0.47) (1.24)
(1.78) (1.55) (1.07) -------------------------
- ------------------------------------------------------------
- ----------------------Net Asset Value, End of Period
$15.87 $15.47 $16.13 $16.71
$15.62 -----------------------------------------------------
- ------------------------------------------------------Total
Return 5.66%++ 4.11% 7.41% 17.92% 11.79%
- ------------------------------------------------------------
- -----------------------------------------------Net Assets,
End of Period (millions) $1,817 $1,772
$1,847 $1,795 $1,598 -------------------------
- ------------------------------------------------------------
- ----------------------Ratios to Average Net Assets:
Expenses 0.71%+ 0.71% 0.72% 0.64% 0.59%
Net investment income 5.79 6.25 5.43 6.30 6.83
- ------------------------------------------------------------
- -----------------------------------------------Portfolio
Turnover Rate 53%+ 100% 131% 206% 173%
============================================================
================================================ </TABLE>
(1) For the six months ended August 31, 1995 (unaudited).
* Amount represents less than $0.01.
++ Total return is not annualized, as it may not be
representative of the
total return for the year.
+ Annualized.
36
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- -------------------------------------------------
Financial Highlights (continued) ------------------------
- --------------------------------------------------------
For a share of each class of capital stock outstanding
throughout each period:
<TABLE>
<CAPTION>
Class B Shares 1995(1)
1995 1994 1993(2)
============================================================
========================================= <S>
<C> <C> <C> <C>
Net Asset Value, Beginning of Period $15.47
$16.13 $16.71 $15.81
- ------------------------------------------------------------
- ----------------------------------------- Income From
Operations:
Net investment income 0.43 0.86 0.81 0.32
Net realized and unrealized gain (loss)
on investments 0.40 (0.37) 0.31 1.42
- ------------------------------------------------------------
- ----------------------------------------- Total Income From
Operations 0.83 0.49 1.12 1.74
- ------------------------------------------------------------
- ----------------------------------------- Less
Distributions From:
Net investment income
(0.43) (0.86) (0.79) (0.31)
Overdistribution of net income -- (0.00)*
(0.01) --
Net realized gains -- (0.29) (0.90)
(0.52)
Capital -- -- -- (0.01)
- ------------------------------------------------------------
- ----------------------------------------- Total
Distributions (0.43)
(1.15) (1.70) (0.84)
- ------------------------------------------------------------
- ----------------------------------------- Net Asset Value,
End of Period $15.87 $15.47
$16.13 $16.71
- ------------------------------------------------------------
- ----------------------------------------- Total Return
5.38%++ 3.54% 6.86% 11.26%++
- ------------------------------------------------------------
- ----------------------------------------- Net Assets, End
of Period (000s) $611,209 $514,675
$349,633 $61,355 Ratios to Average Net Assets:
Expenses 1.23%+ 1.23% 1.25% 1.24%+
Net investment income 5.30+ 5.73 4.90 5.70+
- ------------------------------------------------------------
- ----------------------------------------- Portfolio
Turnover Rate 53% 100% 131% 206%
============================================================
========================================= </TABLE>
(1) For the six months ended August 31, 1995 (unaudited).
(2) For the period from November 6, 1992 (inception date) to
February 28, 1993.
* Amount represents less than $0.01.
++ Total return is not annualized, as it may not be
representative of the total
return for the year.
+ Annualized.
37
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- -------------------------------------------------
Financial Highlights (continued) ------------------------
- --------------------------------------------------------
For a share of each class of capital stock outstanding
throughout each period:
<TABLE>
<CAPTION>
Class C Shares 1995(1) 1995(2)
============================================================
===============================
<S> <C> <C>
Net Asset Value, Beginning of Period $15.47
$14.30
- ------------------------------------------------------------
- ------------------------------Income From Operations:
Net investment income 0.43 0.27
Net realized and unrealized gain on investments
0.39 1.46
- ------------------------------------------------------------
- ------------------------------Total Income From Operations
0.82 1.73
-----------------------------------------------------------
- -------------------------------Less Distributions From:
Net investment income
(0.43) (0.27)
Overdistribution of net income
- -- (0.00)*
Net realized gains
- -- (0.29)
Capital
- -- --
- ------------------------------------------------------------
- ------------------------------Total Distributions
(0.43) (0.56)
- ------------------------------------------------------------
- ------------------------------Net Asset Value, End of Period
$15.86 $15.47
- ------------------------------------------------------------
- ------------------------------Total Return
5.32%++ 12.36%++
- ------------------------------------------------------------
- ------------------------------Net Assets, End of Period
(000s) $15,488 $5,395
- ------------------------------------------------------------
- ------------------------------Ratios to Average Net Assets:
Expenses
1.27%+ 1.29%+
Net investment income
5.22+ 5.67+
- ------------------------------------------------------------
- ------------------------------Portfolio Turnover Rate
53% 100%
============================================================
=============================== </TABLE>
(1) For the period six months ended August 31, 1995
(unaudited).
(2) For the period from November 9, 1994 (inception date) to
February 28, 1995.
* Amount represents less than $0.01.
++ Total return is not annualized, as it may not be
representative of the total
return for the year.
+ Annualized.
38
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- -------------------------------------------------
Financial Highlights (continued) ------------------------
- --------------------------------------------------------
For a share of each class of capital stock outstanding
throughout each period:
<TABLE>
<CAPTION>
Class Y Shares
1995(1)
============================================================
============================= <S>
<C>
Net Asset Value, Beginning of Period
$15.63 -----------------------------------------------------
- -----------------------------------Income From Operations:
Net investment income 0.40
Net realized and unrealized gain on investments 0.23
- ------------------------------------------------------------
- ----------------------------Total Income From Operations
0.63
- ------------------------------------------------------------
- ----------------------------Less Distributions From:
Net investment income
(0.40) Overdistribution of net income --
Net realized gains --
Capital --
- ------------------------------------------------------------
- ----------------------------Total Distributions
(0.40) -----------------------------------------------------
- -----------------------------------Net Asset Value, End of
Period (000s)
$15.86 -----------------------------------------------------
- -----------------------------------Total Return 4.82%++
- ------------------------------------------------------------
- -----------------------------
Net Assets, End of Period (000s) $5,205
- ------------------------------------------------------------
- ----------------------------Ratios to Average Net Assets:
Expenses 0.69%+
Net investment income 5.95+
- ------------------------------------------------------------
- ----------------------------Portfolio Turnover Rate
53%
============================================================
============================= </TABLE>
(1) For the period from April 4, 1995 (inception date) to
August 31, 1995
(unaudited).
++ Total return is not annualized, as it may not be
representative of the total
return for the year.
+ Annualized.
39
<PAGE>
Smith Barney
Managed Municipals Fund Inc. -------------------------------
- ------------------------------------------------Additional
Information -----------------------------------------
- ---------------------------------------
Change in Independent Auditor: On August 19,
1994, based upon the
recommendation of the Audit Committee of the Fund, the
Board of Directors determined not to retain Coopers &
Lybrand L.L.P. ("Coopers & Lybrand") as the Fund's
independent auditor and voted to appoint KPMG Peat Marwick
LLP. During the Fund's two most recent fiscal years, Coopers
& Lybrand's audit reports contained no adverse opinion or
disclaimer of opinion; nor were the reports qualified or
modified as to uncertainty, audit scope, or accounting
principles. Further, during this same period there were no
disagreements with Coopers & Lybrand on any matter of
accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which
disagreements, if not resolved to the satisfaction of
Coopers & Lybrand, would have caused it to make reference to
the subject matter of such disagreements in connection with
its audit reports. The Fund has requested Coopers & Lybrand
to provide a letter to the Securities & Exchange Commission
stating whether Coopers & Lybrand agrees with the foregoing
statements, and to provide the Fund with a copy of such
letter. A copy of this letter is available upon request by
calling the Fund at
(212) 723-9218.
40
<PAGE>
Smith Barney
Managed
Municipals
Fund Inc.
Directors
Herbert Barg
Alfred J. Bianchetti
Martin Brody
Dwight B. Crane
Burt N. Dorsett
Elliot S. Jaffe
Stephen E. Kaufman
Joseph J. McCann
Heath B. McLendon
Cornelius C. Rose
Officers
Heath B. McLendon
Chairman and Investment Officer
Jessica M. Bibliowicz
President
Joseph P. Deane
Vice President and
Investment Officer
David Fare
Investment Officer
Lewis E. Daidone
Senior Vice President
and Treasurer
Thomas M. Reynolds
Controller
Christina T. Sydor
Secretary
[LOGO OF SMITH BARNEY APPEARS HERE]
Investment Adviser
Smith Barney Mutual Funds
Management Inc.
Distributor
Smith Barney Inc.
Custodian
PNC Bank
Shareholder
Servicing Agent
The Shareholder Services Group, Inc
P.O. Box 9134
Boston, MA 02205-9134
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 a current Prospectus for
the Fund, which contains information concerning the Fund's
investment policies and expenses as well as other pertinent
information.
Smith Barney Managed
Municipals Fund Inc.
388 Greenwich Street
New York, New York 10013
FD 0435 10/95
82107
