<PAGE> PAGE 1
000 B000000 02/28/98
000 C000000 319460
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 SMITH BARNEY MANAGED MUNICIPALS FUND INC
001 B000000 811-3097
001 C000000 2128166550
002 A000000 388 GREENWICH STREET
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10013
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 MUTUAL MANAGEMENT CORP.
008 B000001 A
008 C000001 801-3389
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10013
010 A000001 MUTUAL MANAGEMENT CORP.
010 B000001 801-14437
010 C010001 NEW YORK
010 C020001 NY
010 C030001 10013
011 A000001 SMITH BARNEY
011 B000001 8-81777
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10013
012 A000001 FIRST DATA INVESTOR SERVICES GROUP
012 B000001 84-0000000
012 C010001 BOSTON
<PAGE> PAGE 2
012 C020001 MA
012 C030001 02104
013 A000001 KPMG PEAT MARWICK LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10154
015 A000001 PNC BANK
015 B000001 C
015 C010001 PHILADEPHIA
015 C020001 PA
015 C030001 19103
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 127
019 C000000 BARNEY0000
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 MORGAN STANLEY
022 B000001 13-2655998
022 C000001 926462
022 D000001 973126
022 A000002 PAINE WEBBER
022 B000002 13-2638166
022 C000002 769580
022 D000002 516599
022 A000003 GOLDMAN SACHS
022 B000003 13-5108880
022 C000003 708897
022 D000003 467236
022 A000004 CITIBANK
022 B000004 13-5266470
022 C000004 695795
022 D000004 374745
022 A000005 JP. MORGAN
022 B000005 13-3224016
022 C000005 488681
022 D000005 516742
022 A000006 LEHMAN BROTHERS
022 B000006 13-2518466
022 C000006 380000
022 D000006 255420
<PAGE> PAGE 3
022 A000007 BEAR STEARNS
022 B000007 13-3299429
022 C000007 258212
022 D000007 264014
022 A000008 CHASE SECURITIES
022 B000008 13-5227302
022 C000008 340000
022 D000008 0
022 A000009 RAYMOND JAMES
022 B000009 N/A
022 C000009 149109
022 D000009 167280
022 A000010 MERRILL LYNCH
022 B000010 13-5674085
022 C000010 170522
022 D000010 143905
023 C000000 4887258
023 D000000 3822972
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
027 000000 Y
028 A010000 61644
028 A020000 8993
028 A030000 0
028 A040000 47049
028 B010000 62823
028 B020000 8802
028 B030000 0
028 B040000 36723
028 C010000 47474
028 C020000 69511
028 C030000 0
028 C040000 30137
028 D010000 57647
028 D020000 9177
028 D030000 0
028 D040000 30857
028 E010000 86732
028 E020000 8712
028 E030000 0
028 E040000 44944
028 F010000 85999
028 F020000 8812
028 F030000 0
<PAGE> PAGE 4
028 F040000 39357
028 G010000 402319
028 G020000 114007
028 G030000 0
028 G040000 229067
028 H000000 229411
029 000000 Y
030 A000000 4700
030 B000000 4.00
030 C000000 0.00
031 A000000 4700
031 B000000 0
032 000000 0
033 000000 0
034 000000 Y
035 000000 1498
036 A000000 Y
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 10467
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 500000
048 A020000 0.550
048 B010000 1500000
048 B020000 0.500
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
<PAGE> PAGE 5
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 1500000
048 K020000 0.450
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 1000
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 5.1
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 1.4
062 M000000 0.0
062 N000000 0.0
062 O000000 93.5
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 20.6
064 A000000 Y
064 B000000 Y
065 000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
<PAGE> PAGE 6
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 Y
070 G020000 Y
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 3798216
071 B000000 3694091
071 C000000 3345176
071 D000000 110
072 A000000 12
072 B000000 186051
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 10104
072 G000000 5643
072 H000000 0
072 I000000 872
072 J000000 181
072 K000000 0
072 L000000 0
072 M000000 56
072 N000000 485
072 O000000 0
072 P000000 0
072 Q000000 0
<PAGE> PAGE 7
072 R000000 56
072 S000000 35
072 T000000 10467
072 U000000 0
072 V000000 165
072 W000000 100
072 X000000 28164
072 Y000000 0
072 Z000000 157887
072AA000000 94713
072BB000000 0
072CC010000 127794
072CC020000 0
072DD010000 108358
072DD020000 45159
072EE000000 65965
073 A010000 0.7900
073 A020000 0.7100
073 B000000 0.4800
073 C000000 0.0000
074 A000000 0
074 B000000 0
074 C000000 184975
074 D000000 3395253
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 37709
074 K000000 0
074 L000000 40873
074 M000000 18408
074 N000000 3677218
074 O000000 36489
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 10027
074 S000000 0
074 T000000 3630702
074 U010000 146164
074 U020000 69492
074 V010000 16.19
074 V020000 16.19
074 W000000 0.0000
074 X000000 62
074 Y000000 282441
075 A000000 0
<PAGE> PAGE 8
075 B000000 3288520
076 000000 0.00
077 A000000 Y
077 O000000 Y
078 000000 N
080 A000000 ICI MUTUAL INSURANCE
080 C000000 78275
081 A000000 Y
081 B000000 127
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE THOMAS M. REYNOLDS
TITLE CONTROLLER
[ARTICLE] 6
[CIK] 0000319460
[NAME] SMITH BARNEY MANAGED MUNICIPALS FUND INC. CLASS A
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] FEB-28-1998
[PERIOD-END] FEB-28-1998
[INVESTMENTS-AT-COST] 3,428,941,597
[INVESTMENTS-AT-VALUE] 3,580,228,017
[RECEIVABLES] 96,990,172
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 3,677,218,189
[PAYABLE-FOR-SECURITIES] 36,489,464
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 10,026,249
[TOTAL-LIABILITIES] 46,515,713
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 3,458,414,638
[SHARES-COMMON-STOCK] 146,163,867
[SHARES-COMMON-PRIOR] 128,150,139
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 5,846,251
[ACCUMULATED-NET-GAINS] 25,816,450
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 152,317,639
[NET-ASSETS] 3,630,702,476
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 186,050,816
[OTHER-INCOME] 0
[EXPENSES-NET] 28,164,263
[NET-INVESTMENT-INCOME] 157,886,553
[REALIZED-GAINS-CURRENT] 94,713,402
[APPREC-INCREASE-CURRENT] 127,793,799
[NET-CHANGE-FROM-OPS] 380,393,754
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 108,358,110
[DISTRIBUTIONS-OF-GAINS] 65,964,813
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 29,486,209
[NUMBER-OF-SHARES-REDEEMED] 18,373,814
[SHARES-REINVESTED] 6,901,333
[NET-CHANGE-IN-ASSETS] 647,185,774
[ACCUMULATED-NII-PRIOR] (5,445,741)
[ACCUMULATED-GAINS-PRIOR] 31,693,976
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 15,747,056
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 28,164,263
[AVERAGE-NET-ASSETS] 2,172,057,654
[PER-SHARE-NAV-BEGIN] 15.61
[PER-SHARE-NII] 00.79
[PER-SHARE-GAIN-APPREC] 01.06
[PER-SHARE-DIVIDEND] 00.79
[PER-SHARE-DISTRIBUTIONS] 00.48
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 16.19
[EXPENSE-RATIO] 00.68
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000319460
[NAME] SMITH BARNEY MANAGED MUNICIPALS FUND INC. CLASS B
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] FEB-28-1998
[PERIOD-END] FEB-28-1998
[INVESTMENTS-AT-COST] 3,428,941,597
[INVESTMENTS-AT-VALUE] 3,580,228,017
[RECEIVABLES] 96,990,172
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 3,677,218,189
[PAYABLE-FOR-SECURITIES] 36,489,464
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 10,026,249
[TOTAL-LIABILITIES] 46,515,713
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 3,458,414,638
[SHARES-COMMON-STOCK] 69,491,736
[SHARES-COMMON-PRIOR] 58,019,654
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 5,846,251
[ACCUMULATED-NET-GAINS] 25,816,450
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 152,317,639
[NET-ASSETS] 3,630,702,476
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 186,050,816
[OTHER-INCOME] 0
[EXPENSES-NET] 28,164,263
[NET-INVESTMENT-INCOME] 157,886,553
[REALIZED-GAINS-CURRENT] 94,713,402
[APPREC-INCREASE-CURRENT] 127,793,799
[NET-CHANGE-FROM-OPS] 380,393,754
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 45,159,443
[DISTRIBUTIONS-OF-GAINS] 31,010,398
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 15,027,839
[NUMBER-OF-SHARES-REDEEMED] 6,725,498
[SHARES-REINVESTED] 3,169,741
[NET-CHANGE-IN-ASSETS] 647,185,774
[ACCUMULATED-NII-PRIOR] (5,445,741)
[ACCUMULATED-GAINS-PRIOR] 31,693,976
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 15,747,056
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 28,164,263
[AVERAGE-NET-ASSETS] 1,008,903,516
[PER-SHARE-NAV-BEGIN] 15.60
[PER-SHARE-NII] 00.72
[PER-SHARE-GAIN-APPREC] 01.06
[PER-SHARE-DIVIDEND] 00.71
[PER-SHARE-DISTRIBUTIONS] 00.48
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 16.19
[EXPENSE-RATIO] 01.20
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000319460
[NAME] SMITH BARNEY MANAGED MUNICIPALS FUND INC. CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] FEB-28-1998
[PERIOD-END] FEB-28-1998
[INVESTMENTS-AT-COST] 3,428,941,597
[INVESTMENTS-AT-VALUE] 3,580,228,017
[RECEIVABLES] 96,990,172
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 3,677,218,189
[PAYABLE-FOR-SECURITIES] 36,489,464
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 10,026,249
[TOTAL-LIABILITIES] 46,515,713
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 3,458,414,638
[SHARES-COMMON-STOCK] 7,833,894
[SHARES-COMMON-PRIOR] 4,654,075
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 5,846,251
[ACCUMULATED-NET-GAINS] 25,816,450
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 152,317,639
[NET-ASSETS] 3,630,702,476
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 186,050,816
[OTHER-INCOME] 0
[EXPENSES-NET] 28,164,263
[NET-INVESTMENT-INCOME] 157,886,553
[REALIZED-GAINS-CURRENT] 94,713,402
[APPREC-INCREASE-CURRENT] 127,793,799
[NET-CHANGE-FROM-OPS] 380,393,754
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 4,283,130
[DISTRIBUTIONS-OF-GAINS] 3,225,313
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 4,455,449
[NUMBER-OF-SHARES-REDEEMED] 1,628,656
[SHARES-REINVESTED] 353,026
[NET-CHANGE-IN-ASSETS] 647,185,774
[ACCUMULATED-NII-PRIOR] (5,445,741)
[ACCUMULATED-GAINS-PRIOR] 31,693,976
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 15,747,056
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 28,164,263
[AVERAGE-NET-ASSETS] 98,079,369
[PER-SHARE-NAV-BEGIN] 15.60
[PER-SHARE-NII] 00.70
[PER-SHARE-GAIN-APPREC] 01.06
[PER-SHARE-DIVIDEND] 00.70
[PER-SHARE-DISTRIBUTIONS] 00.48
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 16.18
[EXPENSE-RATIO] 01.25
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000319460
[NAME] SMITH BARNEY MANAGED MUNICIPALS FUND INC. CLASS Y
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] FEB-28-1998
[PERIOD-END] FEB-28-1998
[INVESTMENTS-AT-COST] 3,428,941,597
[INVESTMENTS-AT-VALUE] 3,580,228,017
[RECEIVABLES] 96,990,172
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 3,677,218,189
[PAYABLE-FOR-SECURITIES] 36,489,464
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 10,026,249
[TOTAL-LIABILITIES] 46,515,713
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 3,458,414,638
[SHARES-COMMON-STOCK] 734,546
[SHARES-COMMON-PRIOR] 342,908
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 5,846,251
[ACCUMULATED-NET-GAINS] 25,816,450
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 152,317,639
[NET-ASSETS] 3,630,702,476
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 186,050,816
[OTHER-INCOME] 0
[EXPENSES-NET] 28,164,263
[NET-INVESTMENT-INCOME] 157,886,553
[REALIZED-GAINS-CURRENT] 94,713,402
[APPREC-INCREASE-CURRENT] 127,793,799
[NET-CHANGE-FROM-OPS] 380,393,754
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 486,380
[DISTRIBUTIONS-OF-GAINS] 390,404
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 732,857
[NUMBER-OF-SHARES-REDEEMED] 392,741
[SHARES-REINVESTED] 51,522
[NET-CHANGE-IN-ASSETS] 647,185,774
[ACCUMULATED-NII-PRIOR] (5,445,741)
[ACCUMULATED-GAINS-PRIOR] 31,693,976
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 15,747,056
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 28,164,263
[AVERAGE-NET-ASSETS] 9,479,239
[PER-SHARE-NAV-BEGIN] 15.60
[PER-SHARE-NII] 00.82
[PER-SHARE-GAIN-APPREC] 01.07
[PER-SHARE-DIVIDEND] 00.82
[PER-SHARE-DISTRIBUTIONS] 00.48
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 16.19
[EXPENSE-RATIO] 00.52
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
SMITH BARNEY MANAGED MUNICIPALS FUND
10f-3 REPORT
September 1, 1997 through February 28, 1998
% of
Trade Par Purchase Fund %
of
Issuer Date Selling Dealer Amount Price
Assets Issue
Washington St. Pub. Pwr. 9/11/97 Goldman Sachs $ 6,420,000
$98.296 0.18% 3.59%
5.125% due 7/1/2011
Houston, TX Water & Sewer 9/18/97 Merrill Lynck 8,000,000
93.963 0.21 3.44
5.000% due 12/1/2025
NYC Trans Finance Auth. 10/3/97 Lehman Brothers
5,000,000 96.850 0.14 2.06
5.125% due 8/15/2021
Triborough Bridge $ Tunnel 11/17/97 Paine Webber 11,850,000
96.179 0.32 7.20
5.250% due 1/1/2022
Michigan State Bldg. Auth. 11/17/97 Lehman Brothers
21,000,000 94.655 0.56 7.51
4.750% due 10/15/2013
Met Water So. California 11/20/97 EJ De La Rosa & Co. 7,000,000
95.606 0.18 3.95
5.000% due 7/1/2026
Puerto Rico Infrastructure 11/21/97 Goldman Sachs
10,000,000 97.935 0.27 3.38
5.000% due 7/1/2015
NYS Dorm Auth. Mental Hlth. 11/21/97 Paine Webber 17,000,000
97.514 0.46 25.02
5.125% due 8/15/2017
New Jersey Transit Auth. 12/10/97 W.R. Hough & Co. 35,000,000
94.922 7.54
4.750% due 6/15/2016
Seminole County, FL 12/10/97 W.R. Hough & Co. 4,425,000
96.923 9.47
5.000% due 7/1/2019
NYS Local Gov't Asst. Corp. 12/18/97 Lehman Brothers
47,910,000 96.120 18.60
4.875% due 4/1/2020
To the Shareholders and Board of Trustees of
Smith Barney Managed Municipals Fund Inc.:
In planning and performing our audit of the financial statements
of the Smith Barney Managed Municipals Fund Inc. (the "Fund") for
the year ended February 28, 1998, we considered its internal
control, including control activities for safeguarding
securities, in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and
to comply with the requirements of Form N-SAR, not to provide
assurance on the internal control.
The management of the Fund is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally,
controls that are relevant to an audit pertain to the entity's
objective of preparing financial statements for external purposes
that are fairly presented in conformity with generally accepted
accounting principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, errors or
irregularities may occur and not be detected. Also, projection
of any evaluation of internal control to future periods is
subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the internal control would not necessarily
disclose all matters in the internal control that might be
material weaknesses under standards established by the American
Institute of Certified Public Accountants. A material weakness
is a condition in which the design or operation of one or more of
the internal control components does not reduce to a relatively
low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned
functions. However, we noted no matters involving the internal
control and its operation, including controls for safeguarding
securities that we consider to be material weaknesses as defined
above.
This report is intended solely for the information and use of
management, the Board of Trustees of the Fund, and the Securities
and Exchange Commission.
April 20, 1998
