<PAGE>
[PHOTO]
Smith Barney
Managed
Municipals
Fund Inc.
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
August 31, 1999
[LOGO OF SMITH BARNEY]
NOT FDIC INSURED . NO BANK GUARANTEE . MAY LOSE VALUE
<PAGE>
Smith Barney Managed
Municipals Fund Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Smith Barney Managed Municipals Fund Inc. ("Fund") seeks tax-free monthly
income by investing in a diversified portfolio consisting principally of
intermediate- and long-term municipal securities issued by state or municipal
governments and by public authorities.
Smith Barney Managed Municipals Fund Inc.
Average Annual Total Returns
August 31, 1999
Without Sales Charges(1)
---------------------------------
Class A Class B Class L
================================================================================
Six Months+ (4.93)% (5.13)% (5.21)%
- --------------------------------------------------------------------------------
One-Year (3.69) (4.13) (4.18)
- --------------------------------------------------------------------------------
Five-Year 6.12 5.57 N/A
- --------------------------------------------------------------------------------
Ten-Year 7.75 N/A N/A
- --------------------------------------------------------------------------------
Since Inception++ 10.12 6.69 7.51
================================================================================
Without Sales Charges(2)
---------------------------------
Class A Class B Class L
================================================================================
Six Months+ (8.71)% (9.31)% (7.07)%
- --------------------------------------------------------------------------------
One-Year (7.56) (8.24) (6.02)
- --------------------------------------------------------------------------------
Five-Year 5.26 5.42 N/A
- --------------------------------------------------------------------------------
Ten-Year 7.31 N/A N/A
- --------------------------------------------------------------------------------
Since Inception++ 9.87 6.69 7.29
================================================================================
(1) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value and does not reflect the deduction of the applicable
sales charges with respect to Class A and L shares or the applicable
contingent deferred sales charges ("CDSC") with respect to Class B and L
shares.
(2) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value. In addition, Class A and L shares reflect the
deduction of the maximum initial sales charges of 4.00% and 1.00%,
respectively; Class B shares reflect the deduction of a 4.50% CDSC, which
applies if shares are redeemed within one year from purchase. This CDSC
declines by 0.50% the first year of purchase and thereafter by 1.00% per
year until no CDSC is incurred. Class L shares also reflect the deduction of
a 1.00% CDSC, which applies if shares are redeemed within the first year of
purchase.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption value may be more or less than the original cost.
+ Total return is not annualized, as it may not be representative of the total
return for the year.
++ Inception dates for Class A, B and L shares are March 4, 1981, November 6,
1992 and November 9, 1994, respectively.
- --------------------------------------------------------------------------------
FUND HIGHLIGHT
- --------------------------------------------------------------------------------
Our outlook for the municipal bond market is optimistic. We think that the
actions of the Federal Reserve Board may have been too conservative based on our
analysis of market conditions. Inflation should remain in check, at least in the
near-term. A possible easing of economic activity as a result of Y2K
ramifications could prove positive for fixed income markets.
- --------------------------------------------------------------------------------
NASDAQ SYMBOL
- --------------------------------------------------------------------------------
Class A SHMMX
Class B SMMBX
Class L SMMCX
- --------------------------------------------------------------------------------
WHAT'S INSIDE
- --------------------------------------------------------------------------------
Shareholder Letter ........................................................... 1
Historical Performance ....................................................... 3
Smith Barney Managed Municipals Fund Inc. at a Glance ........................ 6
Schedule of Investments ...................................................... 7
Statement of Assets and Liabilities ......................................... 35
Statement of Operations ..................................................... 36
Statements of Changes in Net Assets ......................................... 37
Notes to Financial Statements ............................................... 38
Financial Highlights ........................................................ 41
<PAGE>
- --------------------------------------------------------------------------------
Shareholder Letter
- --------------------------------------------------------------------------------
[PHOTO] [PHOTO]
HEATH B. MCLENDON JOSEPH P. DEANE
Chairman Vice President and
Investment Officer
Dear Shareholder:
We are pleased to provide the semi-annual report for the Smith Barney Managed
Municipals Fund Inc. ("Fund") for the period ended August 31, 1999. In this
report, we summarize the period's prevailing economic and market conditions and
outline our portfolio strategy. A detailed summary of the Fund's performance can
be found in the appropriate sections that follow. We hope you find this report
to be useful and informative.
Performance Update
For the six months ended August 31, 1999, the Smith Barney Managed Municipals
Fund had negative total returns of 4.93%, 5.13% and 5.21% for its Class A, B and
L shares, respectively, without sales charges. In comparison, the Fund's Lipper,
Inc. peer group average posted a total return of a negative 2.63% for the same
period. (Lipper is a major fund-tracking organization.)
Over the six-month period covered by this report, the Fund distributed income
dividends totaling $0.37 for Class A shares. (Please note that a portion of the
income may be subject to the Alternative Minimum Tax.)
Municipal Bond Market Update
We believe that the municipal bond market is approaching a temporary bottom. The
Federal Reserve Board ("Fed") has implemented two monetary policy adjustments --
a 25 basis point increase in June and a 25 basis point increase in August -- and
those actions should remain unchanged for the foreseeable future. We believe
that fixed income markets are returning to "normal" in the aftermath of forced
liquidations by major hedge funds and negatively impacted global markets in late
1998. In our opinion, long U.S. Treasury yields are quite attractive and
municipal bonds are trading at roughly 95%-96% of governments. This comparison
substantiates the fact that municipal securities are trading at low valuations
relative to governments since, under normal market conditions, municipal
securities have historically yielded roughly 85% of similar maturity Treasuries.
As a result of last year's crisis (and ensuing credit crunch), the spread
between the yields on municipal securities and Treasuries widened. The robust
state of the U.S. economy contributed to the second-highest municipal securities
issuance volume in history in 1998. The ability of the market to absorb such
high volume indicates the steady demand for tax-exempt investments and reflects
overall investor confidence.
The recent upward pressure on municipal yields appears to result largely from
two factors: 1) the lack of demand for municipal bonds by the traditional
institutional sectors that have supported the municipal market; and 2)
additional pressures resulting from the pre-Y2K avalanche of issues in the
taxable market, which has attracted institutional investors who would otherwise
buy municipals.
Yields have rebounded sharply, up nearly three quarters of 1% since the
beginning of 1999. The slope of the municipal yield curve has remained extremely
steep, with 20-year municipals yielding roughly 120 basis points more than
one-year paper. (The yield curve measures the difference between short- and
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 1
<PAGE>
long-term rates.) In the U.S. Treasury market, the difference between one-year
and 30-year bond yields is only 80 basis points.
Investment Strategy
As previously noted, the Fund seeks to maximize current interest income exempt
from federal income taxes to the extent consistent with prudent investment
management and preservation of capital. The Fund seeks to achieve this objective
by investing in intermediate- and long-term municipal securities issued by state
and municipal governments and by public authorities. As of August 31, 1999, the
Fund's average weighted maturity was 19.8 years.
As of August 31, 1999, approximately 95% of the Fund's holdings were rated
investment grade (BBB/Baa and higher) by either Standard & Poor's Ratings Group
or Moody's Investors Service Inc., with about 70% of the Fund invested in
AAA/Aaa-rated bonds, the highest possible rating. (Standard & Poor's and Moody's
are two major credit-reporting and bond-rating agencies.) The Smith Barney
Managed Municipals Fund's largest holdings are concentrated in general
obligation bonds (17.5%), transportation bonds (16.0%) and hospital bonds
(15.5%).
We are positive on municipal bonds. Additionally, we believe that buying bonds
with relatively longer maturities (20 to 30 years) and lower coupons (5% and a
bit lower), will enable us to be more aggressively positioned for what may be a
drop in long-term interest rates later this year.
Until recently, our investment strategy had been focused primarily on buying
high-grade, short-maturity bonds, in anticipation of the ensuing increase in
interest rates. Currently, with recent interest rate increases behind us, we are
aggressive buyers of longer, high-grade discount bonds. We believe that investor
sentiment has weakened and the market has taken on a negative psychology.
Municipal Bond Market Outlook
Our outlook for the municipal bond market is optimistic. We think that the
actions of the Fed may have been too conservative based on our analysis of
market conditions. Inflation should remain in check, at least in the near term.
A possible easing of economic activity as a result of Y2K ramifications could
prove positive for fixed income markets.
Looking ahead, we believe that the U.S. economy should remain strong in the
coming months with muted inflationary pressures. Recent economic conditions have
created opportunities for municipal securities to catch up with Treasuries, and
we continue to see good value at the long end of the market.
With long-term municipal bond yields in the 5.75% range and inflation under
control, "real" inflation-adjusted yields on longer intermediate- and long-term
municipals are quite attractive. Following the Fed's August 24, 1999 short-term
interest rate increase of 0.25%, we do not anticipate further policy change for
the remainder of 1999 amid optimism that the Fed has acted sufficiently to curb
inflationary pressures.
As always, we will be monitoring these events closely. Thank you for investing
in the Smith Barney Managed Municipals Fund.
Sincerely,
/s/ Heath B. McLendon /s/ Joseph P. Deane
Heath B. McLendon Joseph P. Deane
Chairman Vice President and
Investment Officer
September 23, 1999
- --------------------------------------------------------------------------------
2 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Historical Performance -- Class A Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
--------------------------
Beginning End Income Capital Gain Return Total
Period Ended of Period of Period Dividends Distributions of Capital Returns(1)
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
8/31/99 $15.93 $14.79 $0.37 $0.00 $0.00 (4.93)%+
- ---------------------------------------------------------------------------------------------------------------------------------
2/28/99 16.19 15.93 0.79 0.11 0.00 4.07
- ---------------------------------------------------------------------------------------------------------------------------------
2/28/98 15.61 16.19 0.79 0.48 0.00 12.30
- ---------------------------------------------------------------------------------------------------------------------------------
2/28/97 16.20 15.61 0.91 0.38 0.00 4.51
- ---------------------------------------------------------------------------------------------------------------------------------
2/29/96 15.47 16.20 0.90 0.08 0.00 11.34
- ---------------------------------------------------------------------------------------------------------------------------------
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
- ---------------------------------------------------------------------------------------------------------------------------------
2/29/92 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
=================================================================================================================================
Total $9.83 $2.76 $0.08
=================================================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class B Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
--------------------------
Beginning End Income Capital Gain Return Total
Period Ended of Period of Period Dividends Distributions of Capital Returns(1)
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
8/31/99 $15.92 $14.79 $0.32 $0.00 $0.00 (5.13)%+
- ---------------------------------------------------------------------------------------------------------------------------------
2/28/99 16.19 15.92 0.71 0.11 0.00 3.48
- ---------------------------------------------------------------------------------------------------------------------------------
2/28/98 15.60 16.19 0.71 0.48 0.00 11.81
- ---------------------------------------------------------------------------------------------------------------------------------
2/28/97 16.20 15.60 0.83 0.38 0.00 3.92
- ---------------------------------------------------------------------------------------------------------------------------------
2/29/96 15.47 16.20 0.82 0.08 0.00 10.78
- ---------------------------------------------------------------------------------------------------------------------------------
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 $5.36 $2.76 $0.01
=================================================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 3
<PAGE>
- --------------------------------------------------------------------------------
Historical Performance -- Class L Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
--------------------------
Beginning End Income Capital Gain Return Total
Period Ended of Period of Period Dividends Distributions of Capital Returns(1)
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
8/31/99 $15.92 $14.78 $0.32 $0.00 $0.00 (5.21)%+
- ---------------------------------------------------------------------------------------------------------------------------------
2/28/99 16.18 15.92 0.70 0.11 0.00 3.49
- ---------------------------------------------------------------------------------------------------------------------------------
2/28/98 15.60 16.18 0.70 0.48 0.00 11.69
- ---------------------------------------------------------------------------------------------------------------------------------
2/28/97 16.20 15.60 0.83 0.38 0.00 3.88
- ---------------------------------------------------------------------------------------------------------------------------------
2/29/96 15.47 16.20 0.82 0.08 0.00 10.76
- ---------------------------------------------------------------------------------------------------------------------------------
Inception*--2/28/95 14.30 15.47 0.27 0.29 0.00 12.36+
=================================================================================================================================
Total $3.64 $1.34 $0.00
=================================================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class Y Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
--------------------------
Beginning End Income Capital Gain Return Total
Period Ended of Period of Period Dividends Distributions of Capital Returns(1)
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
8/31/99 $15.95 $14.81 $0.38 $0.00 $0.00 (4.84)%+
- ---------------------------------------------------------------------------------------------------------------------------------
2/28/99 16.19 15.95 0.82 0.11 0.00 4.39
- ---------------------------------------------------------------------------------------------------------------------------------
2/28/98 15.60 16.19 0.82 0.48 0.00 12.56
- ---------------------------------------------------------------------------------------------------------------------------------
2/28/97 16.20 15.60 0.94 0.38 0.00 4.59
- ---------------------------------------------------------------------------------------------------------------------------------
Inception*--2/29/96 15.63 16.20 0.85 0.08 0.00 9.84+
=================================================================================================================================
Total $3.81 $1.05 $0.00
=================================================================================================================================
</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 Charges(1)
-------------------------------------------------------------------------------
Class A Class B Class L Class Y
=================================================================================================================================
<S> <C> <C> <C> <C>
Six Months Ended 8/31/99+ (4.93)% (5.13)% (5.21)% (4.84)%
- ---------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31/99 (3.69) (4.13) (4.18) (3.33)
- ---------------------------------------------------------------------------------------------------------------------------------
Five Years Ended 8/31/99 6.12 5.57 N/A N/A
- ---------------------------------------------------------------------------------------------------------------------------------
Ten Years Ended 8/31/99 7.75 N/A N/A N/A
- ---------------------------------------------------------------------------------------------------------------------------------
Inception* through 8/31/99 10.12 6.69 7.51 5.84
=================================================================================================================================
<CAPTION>
With Sales Charges(2)
-------------------------------------------------------------------------------
Class A Class B Class L Class Y
=================================================================================================================================
<S> <C> <C> <C> <C>
Six Months Ended 8/31/99+ (8.71)% (9.31)% (7.07)% (4.84)%
- ---------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31/99 (7.56) (8.24) (6.02) (3.33)
- ---------------------------------------------------------------------------------------------------------------------------------
Five Years Ended 8/31/99 5.26 5.42 N/A N/A
- ---------------------------------------------------------------------------------------------------------------------------------
Ten Years Ended 8/31/99 7.31 N/A N/A N/A
- ---------------------------------------------------------------------------------------------------------------------------------
Inception* through 8/31/99 9.87 6.69 7.29 5.84
=================================================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
4 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Cumulative Total Return
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Without Sales Charges(1)
=================================================================================================================================
<S> <C>
Class A (8/31/89 through 8/31/99) 110.87%
- ---------------------------------------------------------------------------------------------------------------------------------
Class B (Inception* through 8/31/99) 55.51
- ---------------------------------------------------------------------------------------------------------------------------------
Class L (Inception* through 8/31/99) 41.65
- ---------------------------------------------------------------------------------------------------------------------------------
Class Y (Inception* through 8/31/99) 28.47
=================================================================================================================================
</TABLE>
(1) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value and does not reflect the deduction of the applicable
sales charges with respect to Class A and L shares or the applicable
contingent deferred sales charges ("CDSC") with respect to Class B and L
shares.
(2) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value. In addition, Class A and L shares reflect the
deduction of the maximum initial sales charges of 4.00% and 1.00%,
respectively; Class B shares reflect the deduction of a 4.50% CDSC, which
applies if shares are redeemed within one year from purchase. This CDSC
declines by 0.50% the first year after purchase and thereafter by 1.00% per
year until no CDSC is incurred. Class L shares also reflect the deduction of
a 1.00% CDSC, which applies if shares are redeemed within the first year of
purchase.
* Inception dates for Class A, B, L and Y shares are March 4, 1981,
November 6, 1992, November 9, 1994 and April 4, 1995, respectively.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 5
<PAGE>
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. at a Glance (unaudited)
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in Class A Shares of Smith Barney Managed Municipals
Fund Inc. vs. Lehman Brothers Municipal Bond Fund Index and the Lipper Peer
Group Average+
- --------------------------------------------------------------------------------
[LINE GRAPH]
August 1989--August 1999
Smith Barney\Managed Lehman Bros.\Municipal Lipper Peer
Municipals Funds Inc. Bond Fund Index Group Average
Aug\1989 9,600 10,000 10,000
Feb\1990 9,870 10,396 10,307
Feb\1991 10,625 11,355 11,141
Feb\1992 11,878 12,490 12,273
Feb\1993 14,006 14,209 14,011
Feb\1994 15,041 14,996 14,752
Feb\1995 15,657 15,278 14,848
Feb\1996 17,433 16,966 16,310
Feb\1997 18,218 17,901 17,040
Feb\1998 20,459 19,538 18,585
Feb\1999 21,293 20,566 19,736
Aug\1999 20,244 20,142 18,717
+ Hypothetical illustration of $10,000 invested in Class A shares on August 31,
1989, assuming deduction of the maximum 4.00% sales charge at the time of
investment and reinvestment of dividends and capital gains, if any, at net
asset value through August 31, 1999. The Lehman Brothers Municipal Bond Fund
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 coupons. The index is
unmanaged and is not subject to the same management and trading expenses as a
mutual fund. The Lipper Analytical Services, Inc. Peer Group Average ("Lipper
Peer Group Average") is composed of an average of the Fund's peer group of
264 mutual funds investing in municipal securities as of August 31, 1999. 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.
Top Ten States Represented*
- --------------------------------------------------------------------------------
[BAR GRAPH]
19.1% Texas
9.8% New York
8.0% Massachusetts
7.6% Colorado
6.6% Ohio
6.4% California
4.7% Michigan
3.3% Florida
2.8% North Carolina
2.6% Pennsylvania
*As a percentage of total investments.
Industry Breakdown**
- --------------------------------------------------------------------------------
[PIE CHART]
12.3% Utilities
8.1% Water & Sewer
17.3% Other Municipal Bonds
3.6% Cogeneration Facility
6.0% Education
17.5% General Obligation
15.5% Hospital
2.2% Housing
1.5% Pollution Control Revenue
16.0% Transportation
- --------------------------------------------------------------------------------
6 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================================================
<S> <C> <C> <C>
Alabama -- 0.4%
$ 10,545,000 AAA Jefferson County, AL Sewer Revenue, Capital Improvements, Series A,
FGIC-Insured, 5.000% due 2/1/33 $ 9,121,425
Montgomery, AL BMC Special Care Facilities Financing Authority Revenue,
Baptist Health, Series B:
1,110,000 AAA 5.250% due 11/15/15 1,075,313
4,500,000 AAA 4.875% due 11/15/18 4,010,625
- ---------------------------------------------------------------------------------------------------------------------------------
14,207,363
- ---------------------------------------------------------------------------------------------------------------------------------
Alaska -- 0.2%
8,500,000 AA+ Valdez, AK Marine Terminal Revenue, Series A, (British Petroleum Pipeline
Project), 5.850% due 8/1/25(b) 8,383,125
- ---------------------------------------------------------------------------------------------------------------------------------
Arizona -- 1.7%
12,170,000 A- Greenlee County, AZ IDA, PCR, (Phelps Dodge Corp. Project),
5.450% due 6/1/09 12,215,640
3,500,000 A Maricopa County, AZ IDA, Multi-Family Housing Revenue, Series A,
6.500% due 10/1/25 3,578,750
Mesa, AZ IDA, Discovery Health Systems Revenue, Series A:
14,000,000 AAA 5.625% due 1/1/19 13,877,500
21,000,000 AAA 5.625% due 1/1/29 20,685,000
1,750,000 AAA Pima County, AZ COP, MBIA-Insured, 5.250% due 1/1/12 1,747,813
3,500,000 AAA Pima County, AZ IDA, Healthpartners of Southern Arizona, Series A,
MBIA-Insured, 5.625% due 4/1/14 3,561,250
1,500,000 AA+ Phoenix, AZ Civic Import Corp., (Municipal Courthouse Project),
Excise Tax Revenue, 5.250% due 7/1/24 1,419,375
1,200,000 AAA Phoenix, AZ Civic Import Corp., Water Systems Revenue, FGIC-Insured,
5.000% due 7/1/19 1,110,000
1,000,000 AAA Sedona, AZ Wastewater Municipal Property Corp., Excise Tax Revenue,
MBIA-Insured, 5.375% due 7/1/15 998,750
- ---------------------------------------------------------------------------------------------------------------------------------
59,194,078
- ---------------------------------------------------------------------------------------------------------------------------------
California -- 6.4%
3,000,000 AAA Alameda Corridor Transportation Authority, CA Revenue, Series A,
4.750% due 10/1/25 2,580,000
2,250,000 A* Apple Valley, CA Unified School District COP, 5.900% due 9/1/11 2,340,000
2,720,000 AAA Brawley, CA COP, (Water Systems Improvement Project), MBIA-Insured,
5.000% due 12/1/18 2,539,800
California Health Facilities Finance Authority Revenue:
5,000,000 AAA Cedars-Sinai Center, Series A, MBIA-Insured, 5.125% due 8/1/17 4,775,000
9,720,000 A Kaiser Permanente, Series B, 5.250% due 10/1/13 9,343,350
California State Public Works Board, Lease Revenue:
5,895,000 A1* California State University, Series C, 5.250% due 10/1/14 5,791,838
9,250,000 AAA Department of Corrections, Series A, AMBAC-Insured,
5.250% due 1/1/21 8,822,188
California Statewide Community Development Authority COP:
2,000,000 A Kaiser Permanente Remarketed 7/8/98, 5.300% due 12/1/15 1,902,500
10,500,000 AA St. Joseph Health System, 5.125% due 7/1/17 9,817,500
1,000,000 AAA Campbell, CA Unified School District GO, FGIC-Insured,
5.000% due 8/1/17 941,250
7,270,000 AAA Castaic Lake, CA Water Agency Revenue (Water Systems Improvement Project),
AMBAC-Insured, 5.250% due 8/1/19 6,997,375
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 7
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================================================
<S> <C> <C> <C>
California -- 6.4% (continued)
$ 6,995,000 AAA Chino, CA Unified School District COP, FSA-Insured, 6.125% due 9/1/26 $ 7,257,313
5,000,000 AAA Contra Costa County, CA Multi-Family Housing Revenue, (Crescent Park
Apartments Project), Series B, GNMA-Collateralized,
7.800% due 6/20/34 5,437,500
15,215,000 AAA Corona, CA Redevelopment Agency, Tax Allocation (Redevelopment Project,
Area A), Series A, FGIC-Insured, 5.500% due 9/1/24 14,967,756
5,000,000 AAA Fresno County, CA Financing Authority, Solid Waste Revenue, (American
Avenue Landfill Project), MBIA-Insured, 5.750% due 5/15/14 5,150,000
Inglewood, CA Public Financing Authority Revenue, Series A,
AMBAC-Insured:
1,650,000 AAA 5.625% due 8/1/14 1,693,313
3,000,000 AAA 5.250% due 8/1/21 2,861,250
2,500,000 AA Kings River Conservation District, CA, Pine Flat Power Revenue,
Series E, 4.750% due 1/1/20 2,206,250
2,750,000 AAA Long Beach, CA Board Financing Authority Revenue (Rainbow Harbor
Refinancing Project), Series A, AMBAC-Insured, 5.125% due 5/1/20 2,585,000
Long Beach, CA, Revenue (Aquarium of the Pacific Project),
Series A:
1,260,000 BBB 5.750% due 7/1/05 1,316,700
1,200,000 BBB 5.750% due 7/1/06 1,237,500
1,170,000 AAA Los Angeles, CA Community Redevelopment Agency, Tax Allocation,
(Hollywood Redevelopment Project), Series C, MBIA-Insured,
5.000% due 7/1/14 1,131,975
15,000,000 AAA Los Angeles, CA Metropolitan Transportation Authority, Sales Tax Revenue,
Series A, MBIA-Insured, 5.250% due 7/1/15 14,812,500
Los Angeles, CA Public Works Financing Authority Lease Revenue:
3,500,000 AAA AMBAC-Insured, 5.125% due 12/1/29 3,215,625
1,630,000 AAA MBIA-Insured, 5.250% due 9/1/13 1,632,038
15,400,000 AA Regional Park and Open Space District, Series A, 5.000% due 10/1/16 14,630,000
2,780,000 AAA Los Angeles, CA Unified School District COP Series A, FSA-Insured,
5.500% due 10/1/16 2,793,900
5,200,000 AAA Roseville, CA Water Utility Revenue COP, FGIC-Insured
5.200% due 12/1/15 5,102,500
2,825,000 AAA Sacramento, CA Airport Systems Revenue, Series B, FGIC-Insured,
5.000% due 7/1/18 2,637,844
3,500,000 AAA Sacramento, CA Municipal Utility District, Electrical Revenue, Series L,
MBIA-Insured, 5.200% due 7/1/17 3,395,000
San Diego County, CA COP, Northern County Regional Expansion Revenue,
AMBAC-Insured:
5,500,000 AAA 5.250% due 11/15/14 5,458,750
4,000,000 AAA 5.000% due 10/1/17 3,765,000
2,420,000 AAA 5.250% due 11/15/19 2,329,250
35,000,000 AAA San Francisco, CA State Building Authority Lease Revenue, Civic Center
Complex, Series A, AMBAC-Insured, 5.250% due 12/1/21 33,381,250
6,000,000 AAA San Jose, CA Redevelopment Agency, Tax Allocation, (Merged Area
Redevelopment Project), AMBAC-Insured, 4.750% due 8/1/23 5,205,000
Santa Clara County, CA Finance Authority Lease Revenue, AMBAC-Insured:
5,500,000 AAA 6.750% due 11/15/20(b) 6,201,250
2,000,000 AAA 6.250% due 11/15/22 2,177,500
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
8 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================================================
<S> <C> <C> <C>
California -- 6.4% (continued)
Santa Clara County, Redevelopment Agency (Bayshore North Project),
Tax Allocation, AMBAC-Insured:
Series A:
$ 1,595,000 AAA 5.250% due 6/1/17 $ 1,555,125
4,365,000 AAA 5.250% due 6/1/18 4,217,681
Series B:
1,760,000 AAA 5.375% due 6/1/14 1,768,800
3,835,000 AAA 5.375% due 6/1/15 3,835,000
Solano County, CA COP (Capital Improvements Project), AMBAC-Insured:
1,850,000 AAA 5.000% due 11/15/13 1,796,813
1,150,000 AAA 5.000% due 11/15/14 1,111,188
1,515,000 AAA Victorville, CA Multi-Family Revenue, Wimbledon Apartments, Series A,
GNMA-Collateralized, 6.150% due 4/20/16 1,556,663
- ---------------------------------------------------------------------------------------------------------------------------------
224,274,035
- ---------------------------------------------------------------------------------------------------------------------------------
Colorado -- 7.6%
Adams County, CO School District No. 12 COP, Five Star Schools,
MBIA-Insured:
2,500,000 AAA 5.000% due 12/15/14 2,371,880
2,250,000 AAA 5.000% due 12/15/15 2,115,000
15,000,000 AAA Arapahoe County, CO Capital Improvement Transportation Highway Revenue
(Pre-Refunded--Escrowed with U.S. government securities to 8/31/05
Call @ 103), 7.000% due 8/31/26(b) 17,156,250
2,000,000 A- Aspen, CO Sales Tax Revenue, 5.250% due 11/1/15 1,917,500
Colorado Health Facilities Authority Revenue:
7,500,000 A Series B, Remarketed 7/8/98, 5.350% due 8/1/15 7,143,750
4,500,000 AAA Sisters of Charity Leavenworth, MBIA-Insured, 5.125% due 12/1/18 4,201,875
2,000,000 Aa2* Colorado Housing Finance Authority, Single Family, Series D-2,
6.350% due 11/1/29(d) 2,080,000
12,765,000 BBB+ Colorado Springs, CO Airport Revenue, Series A, 7.000% due 1/1/22(b)(d) 13,514,944
11,000,000 AAA Colorado Springs, CO Utilities Revenue, Sub-Lien Systems Improvement
MBIA-Insured, 5.000% due 11/15/27 9,886,250
Dawson Ridge, CO Metropolitan District No. 1, (Escrowed to Maturity with
REFCO strips):
364,000,000 AAA Series A, zero coupon bond to yield 5.213% due 10/1/22 79,170,000
27,785,000 AAA Series B, zero coupon bond to yield 5.212% due 10/1/22(b) 6,043,240
Denver, CO City & County Airport Revenue,
Series A:
26,500,000 BBB+ 14.000% due 11/15/08(b)(d) 41,406,250
9,915,000 BBB+ 8.000% due 11/15/25(b)(d) 10,497,510
3,585,000 BBB+ Pre-Refunded--Escrowed with state and local government securities
to 11/15/01 Call @ 100, 8.000% due 11/15/25(b)(d) 3,862,838
Series C:
410,000 AAA Pre-Refunded--Escrowed with state and local government securities to
11/15/02 Call @ 102, 6.750% due 11/15/13(d) 445,365
2,530,000 AAA Pre-Refunded--Escrowed with state and local government securities to
11/15/02 Call @ 102, 6.750% due 11/15/22(b)(d) 2,748,215
3,090,000 BBB+ 6.750% due 11/15/13(d) 3,286,988
9,505,000 BBB+ 6.750% due 11/15/22(b)(d) 10,063,419
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 9
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Colorado -- 7.6% (continued)
Series D:
$ 17,760,000 AAA 7.000% due 11/15/25(d) $ 18,426,000
4,665,000 Aaa* Pre-Refunded -- Escrowed with state and local government securities
to 11/15/01 Call @ 100, 7.000% due 11/15/25 (b)(d) 4,921,575
E-470 Public Highway Authority, Colorado Revenue, Series A, MBIA-Insured:
1,120,000 AAA 5.000% due 9/1/15 1,057,000
2,600,000 AAA 5.000% due 9/1/16 2,427,750
19,000,000 AAA 4.750% due 9/1/23 16,245,000
1,000,000 AAA Fort Collins, CO Lease COP, (Civic Center Facilities Project), MBIA-Insured,
5.125% due 12/1/18 936,250
3,610,000 AAA Larimer County, CO COP, Court House & Jail Facilities, FSA-Insured,
5.000% due 12/15/12 3,506,215
- ------------------------------------------------------------------------------------------------------------------------------------
265,431,064
- ------------------------------------------------------------------------------------------------------------------------------------
Connecticut -- 0.4%
Connecticut State Health & Educational Facilities Authority Revenue:
1,600,000 AAA Brunswick School, Series A, MBIA-Insured, 5.000% due 7/1/22 1,468,000
1,080,000 AAA William H. Backus Hospital, AMBAC-Insured, 5.625% due 7/1/17 1,088,100
Connecticut State, HFA, Group Home Mortgage Program, AMBAC-Insured:
500,000 AAA 5.600% due 6/15/17 498,750
1,000,000 AAA 5.625% due 6/15/27 988,750
Mashantucket Western Pequot Tribe, Connecticut Special Revenue:
3,000,000 Baa3* Series A, 5.500% due 9/1/28(e) 2,741,250
Series B:
1,000,000 Baa3* 5.550% due 9/1/08(e) 1,006,250
2,000,000 Baa3* 5.700% due 9/1/12(e) 1,982,500
6,500,000 Baa3* 5.750% due 9/1/18(b)(e) 6,288,750
- ------------------------------------------------------------------------------------------------------------------------------------
16,062,350
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia -- 0.9%
District of Columbia Revenue:
American Association for the Advancement of Science Revenue,
AMBAC-Insured:
3,000,000 AAA 5.250% due 1/1/16 2,895,000
9,250,000 AAA 5.125% due 1/1/27 8,382,815
Georgetown University, Series D, MBIA-Insured, Converted 5/1/98:
4,300,000 AAA 5.300% due 4/1/15 4,197,875
3,900,000 AAA 5.350% due 4/1/16 3,802,500
3,700,000 AAA 5.350% due 4/1/17 3,584,375
5,300,000 AAA 5.350% due 4/1/18 5,094,625
4,000,000 AAA Washington, DC Convention Center Authority Dedicated Tax Revenue,
Sr. Lien, AMBAC-Insured, 5.250% due 10/1/14 3,900,000
- ------------------------------------------------------------------------------------------------------------------------------------
31,857,190
- ------------------------------------------------------------------------------------------------------------------------------------
Florida -- 3.3%
Alachua County, FL, Public Improvement Revenue, AMBAC-Insured:
1,770,000 AAA 5.250% due 8/1/18 1,705,840
1,400,000 AAA 5.250% due 8/1/23 1,330,000
Boynton Beach, FL Multi-Family Housing Revenue, Clipper Cove Apartments:
750,000 A+ 6.350% due 7/1/16 771,565
1,325,000 A+ 6.400% due 7/1/21 1,358,125
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
10 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Florida -- 3.3% (continued)
$ 4,155,000 AAA Broward County, FL Airport System Revenue, Passenger Facility,
Conv. Lien, Series H-2, AMBAC-Insured, 4.750% due 10/1/23 $ 3,573,300
Broward County, FL GO:
1,000,000 Aa2* 12.500% due 1/1/02 1,178,750
1,250,000 Aa2* 12.500% due 1/1/03 1,557,815
1,500,000 Aa2* 12.500% due 1/1/04 1,961,250
1,750,000 Aa2* 12.500% due 1/1/05 2,386,565
2,000,000 Aa2* 12.500% due 1/1/06 2,835,000
2,740,000 AAA Dade County, FL GO, MBIA-Insured, 5.125% due 10/1/21 2,541,350
1,000,000 AAA First Florida Governmental Financing Commission Revenue,
AMBAC-Insured, 5.750% due 7/1/16 1,017,500
12,900,000 AA+ Florida State Board of Education, Capital Outlay Public Education,
Series B, 4.500% due 6/1/27 10,578,000
3,400,000 AAA Florida State Correctional Privatization Commission COP,
Youth Detention Facility, Series C, AMBAC-Insured, 5.000% due 8/1/17 3,179,000
Florida State Department of Children & Families COP, (South Florida
State Hospital Project), AMBAC-Insured:
2,375,000 AAA 4.900% due 7/1/13 2,259,220
2,495,000 AAA 4.950% due 7/1/14 2,348,420
6,850,000 AA+ Florida State Department of Transportation, Series A, 4.750% due 7/1/24 5,839,625
6,190,000 AAA Hillsborough County, FL Capital Improvement Program Revenue,
(Mosi Project), Series A, MBIA-Insured, 5.125% due 7/1/22 5,826,340
Martin County, FL IDA, Indiantown Cogeneration:
10,000,000 BBB- Project A, 7.875% due 12/15/25(b)(d) 10,287,500
6,010,000 BBB- Project B, 8.050% due 12/15/25(d) 6,160,250
Miami-Dade County, FL:
6,800,000 AAA Professional Sports Franchise Facility, MBIA-Insured, 4.750% due 10/1/30 5,763,000
2,305,000 AAA School Board, Series C, FSA-Insured, 5.000% due 8/1/16 2,178,225
2,935,000 AAA Special Obligation, (Courthouse Center Project), Series B, AMBAC-Insured,
4.750% due 4/1/20 2,549,785
Orange County, FL Tourist Development Tax Revenue, AMBAC-Insured:
Series A:
7,460,000 AAA 4.750% due 10/1/21 6,424,925
15,550,000 AAA 4.750% due 10/1/24 13,334,125
1,000,000 AAA Series B, 4.750% due 10/1/23 860,000
3,090,000 Aaa* Osceola County, FL School Board COP, Series A, AMBAC-Insured,
5.000% due 6/1/18 2,865,975
3,000,000 AAA St. Lucie, FL West Services District, Special Assessment Revenue,
Port St. Lucie Water Management Benefit, Series A,
MBIA-Insured, 5.250% due 5/1/25 2,853,750
2,000,000 AAA Tallahassee, FL Energy Systems Revenue, Series A, 4.750% due 10/1/26 1,710,000
Tampa, FL Revenue Bonds, (Florida Aquarium Inc. Project),
(Pre-Refunded -- Escrowed with U.S. government securities to
5/1/02 Call @ 102):
2,550,000 NR 7.550% due 5/1/12(c) 2,795,440
3,000,000 NR 7.750% due 5/1/27(b)(c) 3,303,750
2,180,000 AAA Village Center, FL Community Development District, Recreational Revenue,
Series A, MBIA-Insured, 5.850% due 11/1/16 2,362,575
- ------------------------------------------------------------------------------------------------------------------------------------
115,696,965
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 11
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Georgia -- 1.1%
Atlanta, GA Water & Wastewater Revenue, Series A, FGIC-Insured:
$ 11,150,000 AAA 5.000% due 11/1/29 $ 9,923,500
31,000,000 AAA 5.000% due 11/1/38 27,008,750
580,000 AA- Brunswick, GA Housing Authority, Multi-Family Housing Revenue,
Cypress Mill, FHA-Insured, 9.750% due 8/1/26 611,335
- ------------------------------------------------------------------------------------------------------------------------------------
37,543,585
- ------------------------------------------------------------------------------------------------------------------------------------
Hawaii -- 0.7%
Hawaii State Department of Budget & Finance,
Special Purpose Revenue, Kasier Permanente,
Series A:
14,045,000 A 5.100% due 3/1/14 13,096,965
4,000,000 A 5.150% due 3/1/15 3,705,000
3,000,000 AAA Hawaii State GO, Series CP, FGIC-Insured, 5.000% due 10/1/17 2,771,250
Honolulu, HI City & County Wastewater System Revenue,
2nd Board Resolution, Jr. Series, FGIC-Insured:
1,465,000 AAA 5.250% due 7/1/15 1,419,220
3,000,000 AAA 5.250% due 7/1/16 2,887,500
- ------------------------------------------------------------------------------------------------------------------------------------
23,879,935
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois -- 1.8%
2,000,000 AAA Chicago, IL GO, Series 1993, FGIC-Insured, 5.375% due 1/1/13 1,990,000
12,500,000 AAA Chicago, IL O'Hare International Airport Revenue, Second Lien, Series C,
MBIA-Insured, 5.000% due 1/1/18 11,359,375
3,000,000 AAA Eastern Illinois University Revenue, Auxiliary Facilities Systems,
AMBAC-Insured, 5.000% due 4/1/16 2,782,500
Illinois Health Facilities Authority Revenue:
6,500,000 AAA Alexian Brothers Health Systems, FSA-Insured, 5.000% due 1/1/19 5,874,375
2,000,000 AAA Edward Obligation Group, Series A, AMBAC-Insured, 5.250% due 2/15/17 1,902,500
6,680,000 Aaa* Memorial Health Systems, MBIA-Insured, 5.250% due 10/1/18 6,304,250
500,000 Aaa* Rockford Health Systems, AMBAC-Insured, 5.100% due 8/15/11 491,250
Rush Presbyterian, St. Lukes, Series A, MBIA-Insured:
2,500,000 AAA 5.250% due 11/15/14 2,437,500
1,000,000 AAA 5.250% due 11/15/16 956,250
3,000,000 AAA Sherman Health Systems, AMBAC-Insured, 5.250% due 8/1/17 2,850,000
3,000,000 AAA Illinois State COP, Department of Central Management Services,
Public Aid Building, MBIA-Insured, 5.650% due 7/1/17 3,015,000
Illinois State GO, FGIC-Insured:
2,650,000 AAA 5.250% due 6/1/18 2,537,375
3,300,000 AAA 5.375% due 2/1/19 3,180,375
14,375,000 AAA 5.250% due 12/1/20 13,620,315
2,000,000 AAA Springfield, IL GO, Series C, MBIA-Insured, 5.375% due 12/1/21 1,882,500
1,000,000 AAA University of Illinois Revenue Bonds, Auxiliary Facilities Systems,
MBIA-Insured, 5.375% due 10/1/13 993,750
- ------------------------------------------------------------------------------------------------------------------------------------
62,177,315
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana -- 1.1%
4,700,000 AAA Avon, IN Community School Building Corp., First Mortgage,
AMBAC-Insured, 5.250% due 1/1/22 4,382,750
4,500,000 AAA Delaware County, IN Hospital Authority, Cardinal Health Systems,
AMBAC-Insured, 5.000% due 8/1/16 4,190,625
3,005,000 AAA Indiana Bond Bank, State Revenue, Guarantee-State Revolving Fund,
(Project A), 6.250% due 2/1/09 3,200,325
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
12 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Indiana -- 1.1% (continued)
Indiana Health Facilities Financing Authority Hospital Revenue,
Riverview Hospital:
$ 305,000 Baa1* 6.500% due 8/1/01 $ 314,150
200,000 Baa1* 6.600% due 8/1/02 208,500
Indiana Municipal Power Agency, Power Supply
Systems Revenue, Special Obligation, 1st
Crossover, Series B, MBIA-Insured:
2,700,000 AAA 5.200% due 1/1/14 2,629,125
2,775,000 AAA 5.250% due 1/1/15 2,709,095
2,000,000 A Mishawaka, IN School City, Multi-School Building Corp.,
5.500% due 7/15/15 1,977,500
Northwest Allen County, IN Middle School Building Corp.,
First Mortgage, MBIA-Insured:
715,000 AAA 4.800% due 1/15/13 661,375
245,000 AAA 4.800% due 7/15/13 226,320
535,000 AAA 4.900% due 7/15/14 500,895
15,000,000 AAA Rockport, IN PCR, (Michigan Power Co. Project), Series A, AMBAC-Insured,
6.550% due 6/1/25(b) 15,900,000
- ------------------------------------------------------------------------------------------------------------------------------------
36,900,660
- ------------------------------------------------------------------------------------------------------------------------------------
Kansas -- 0.3%.
2,200,000 Aa3* Douglas County, KS Sales Tax GO, 5.000% due 2/1/14 2,101,000
Kansas State DFA Revenue, Public Water Supply Revolving Loan, Series 2:
1,110,000 AA-++ 5.250% due 4/1/15 1,080,865
1,250,000 AA-++ 5.000% due 4/1/16 1,175,000
1,000,000 AA-++ 4.750% due 4/1/17 888,750
3,000,000 AAA Topeka, KS Public Building Commission, (10th & Jackson Projects),
MBIA-Insured, 4.875% due 6/1/19 2,688,750
3,145,000 AAA Wyandotte County, KS Unified School District No. 202 GO, AMBAC-Insured,
4.750% due 9/1/17 2,826,569
- ------------------------------------------------------------------------------------------------------------------------------------
10,760,934
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky -- 0.1%
3,580,000 AAA Jefferson County, KY School District Finance Corp., School Building Revenue,
Series A, FSA-Insured, 5.250% due 1/1/15 3,494,975
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana -- 0.1%
Orleans Parish, LA Parishwide School District, Series A, FGIC-Insured:
1,680,000 Aaa* 5.125% due 9/1/14 1,631,700
1,775,000 Aaa* 5.125% due 9/1/15 1,712,875
2,000,000 AAA Terrebonne Parish, LA Hospital Service District No. 1, Hospital Revenue,
(Terrebonne General Medical Center Project), AMBAC-Insured,
5.350% due 4/1/17 1,930,000
- ------------------------------------------------------------------------------------------------------------------------------------
5,274,575
- ------------------------------------------------------------------------------------------------------------------------------------
Maine -- 0.5%
2,750,000 AAA Maine Finance Authority Revenue, Electric Rate Stabilization, Series A,
FSA-Insured, 5.000% due 7/1/18 2,505,938
9,865,000 AAA Maine Governmental Facility Authority, Lease Rent Revenue, FSA-Insured,
5.625% due 10/1/19 9,704,695
6,000,000 AAA Maine Municipal Bond Bank Revenue, Series C, 5.350% due 11/1/18 5,797,500
- ------------------------------------------------------------------------------------------------------------------------------------
18,008,133
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 13
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C>
Maryland -- 0.8%
$ 2,000,000 AAA Baltimore County, MD County Commission Mortgage Revenue,
(Northbrooke Apartments Project), GNMA-Collateralized, Series A,
6.350% due 1/20/21(b) $ 2,075,000
Baltimore, MD GO, Series A, FGIC-Insured:
2,585,000 AAA 5.625% due 10/15/14 2,646,395
2,745,000 AAA 5.750% due 10/15/15 2,964,600
1,165,000 AAA 5.750% due 10/15/16 1,258,200
1,375,000 AAA Charles County, MD County Commissioners Mortgage Revenue,
(Holly Station Project IV), Series A, FHA-Insured, 6.450% due 5/1/26 1,412,815
56,000,000 NR Maryland State Energy Financing Administration, Solid Waste Disposal
Revenue, (Hagerstown Project), 9.000% due 10/15/16(b)(d)(g) 12,320,000
3,825,000 A Maryland State Health & Higher Educational Facilities Authority Revenue,
Kaiser Permanente, Series A, 5.375% due 7/1/15 3,691,125
1,545,000 Aa2* Montgomery County, MD Housing Opportunities Commission,
Single-Family Mortgage Revenue, Series A, 5.750% due 7/1/13 1,566,250
- ------------------------------------------------------------------------------------------------------------------------------------
27,934,385
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts -- 8.0%
2,200,000 AAA Holyoke, MA GO, Series A, FSA-Insured, 5.500% due 6/15/16 2,205,500
Massachusetts Bay Transportation Authority, General Transportation System:
10,490,000 AAA Series A, MBIA-Insured, 4.500% due 3/1/26 8,457,563
Series B:
AMBAC-Insured:
18,380,000 AAA 5.375% due 3/1/20 17,782,650
12,790,000 AAA 5.375% due 3/1/25 12,198,463
FSA-Insured:
15,000,000 AAA 5.250% due 3/1/20 14,287,500
32,200,000 AAA 5.250% due 3/1/26 30,147,250
Massachusetts Municipal Wholesale Electric Co., Power Supply
System Revenue Series A, AMBAC-Insured:
5,900,000 AAA 5.000% due 7/1/14 5,641,875
2,950,000 AAA 5.000% due 7/1/17 2,747,188
9,435,000 AAA Series B, MBIA-Insured, 5.000% due 7/1/17 8,786,344
Massachusetts State College Building Authority Revenue, Series 1,
MBIA-Insured:
3,500,000 Aaa* 5.125% due 5/1/19 3,276,875
9,430,000 Aaa* 5.375% due 5/1/39 8,758,113
Massachusetts State Health and Educational Facilities Authority Revenue:
7,500,000 AA- Boston College Issue, Series L, 5.000% due 6/1/26 6,600,000
2,000,000 A Hebrew Rehabilitation Center for Aged, Series C, 5.250% due 7/1/17 1,865,000
Partners Healthcare Systems, Series B:
3,000,000 AA- 5.250% due 7/1/13 2,857,500
1,000,000 AA- 5.250% due 7/1/14 946,250
2,000,000 AA- 5.250% due 7/1/15 1,875,000
7,000,000 AA- 5.125% due 7/1/19 6,273,750
4,500,000 AAA Northeastern University, Series 1, MBIA-Insured, 5.000% due 10/1/29 3,960,000
1,295,000 AAA University of Massachusetts Memorial, Series A, AMBAC-Insured,
5.250% due 7/1/14 1,264,244
8,500,000 AAA Massachusetts State HFA, Housing Development, Series B, MBIA-Insured,
5.300% due 12/1/17 8,234,375
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
14 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Massachusetts -- 8.0% (continued)
Massachusetts State Turnpike Authority, Metro Highway Systems Revenue,
Series A:
AMBAC-Insured:
$ 10,000,000 AAA 5.000% due 1/1/39 $ 8,687,500
58,860,000 AAA 4.750% due 1/1/34 48,412,350
9,625,000 AAA MBIA-Insured, 5.125% due 1/1/23 8,842,970
11,000,000 Aaa* Massachusetts State Water Pollution Abatement, New Bedford PG-Series A,
FGIC-Insured, 4.750% due 2/1/26 9,267,500
Massachusetts State Water Resources Authority:
25,785,000 AAA MBIA-Insured, 5.000% due 12/1/25 22,916,419
Series A, FSA-Insured:
4,000,000 AAA 4.750% due 8/1/27 3,385,000
13,500,000 AAA 4.750% due 8/1/37 11,103,750
Series B:
3,000,000 A1* 5.500% due 3/1/17 2,951,250
11,635,000 AAA MBIA-Insured, 4.750% due 12/1/21 10,006,100
4,095,000 AAA Series C, MBIA-Insured, 5.250% due 12/1/20 3,890,250
4,000,000 AAA Plymouth County, MA Correctional Facility COP, AMBAC-Insured,
5.125% due 10/1/18 3,760,000
- ------------------------------------------------------------------------------------------------------------------------------------
281,388,529
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan -- 4.7%
2,000,000 AAA Battle Creek, MI Downtown Development Authority, MBIA-Insured,
5.000% due 5/1/17 1,840,000
Caledonia, MI Community Schools, FGIC-Insured:
1,790,000 AAA 4.875% due 5/1/19 1,602,050
4,095,000 AAA 4.750% due 5/1/22 3,552,413
2,175,000 AAA Coopersville, MI Area Public Schools, MBIA-Insured, 4.750% due 5/1/19 1,916,719
17,750,000 AAA Detroit & Wayne Counties, MI Stadium Authority Revenue, FGIC-Insured,
5.250% due 2/1/27 16,507,500
2,090,000 AAA Grand Valley, MI State University Revenue, MBIA-Insured,
5.250% due 10/1/17 2,048,200
1,000,000 AAA Holly, MI Area School District, FGIC-Insured, 4.750% due 5/1/25 856,250
2,140,000 AAA Ingham County, MI Building Authority, AMBAC-Insured, 5.000% due 11/1/16 1,984,850
39,340,000 AAA Michigan Public Power Agency Revenue, (Belle River Project), Series A,
MBIA-Insured, 5.250% due 1/1/18 37,569,700
1,000,000 AAA Michigan State Hospital Finance Authority Revenue,
Mercy Health Services, AMBAC-Insured, Series R, 5.375% due 8/15/16 973,500
Michigan State Housing Representatives COP, AMBAC-Insured:
5,145,000 AAA 5.000% due 8/15/16 4,733,400
4,715,000 AAA 5.500% due 8/15/15 4,638,381
Michigan State Strategic Fund, Resource Recovery Limited Obligation
Revenue, Central Wayne Energy:
Series A:
8,000,000 NR 6.900% due 7/1/19(d) 7,740,000
3,000,000 NR 7.000% due 7/1/27(d) 2,891,250
12,000,000 NR Series B, 6.800% due 7/1/13(d) 11,670,000
56,625,000 NR Midland County, MI Economic Development Corp., PCR, Subordinated
Limited Obligation, Series B, 9.500% due 7/23/09(b)(d) 59,558,741
</TABLE>
See Notes to Financial Statements
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 15
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Michigan -- 4.7% (continued)
$ 4,455,000 AA Royal Oak, MI Hospital Finance Authority, Hospital Revenue,
William Beaumont Hospital, 5.250% due 1/1/20 $ 4,104,169
1,000,000 AAA South Lyon, MI Community Schools, FGIC-Insured, 5.125% due 5/1/16 952,500
- ------------------------------------------------------------------------------------------------------------------------------------
165,139,623
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota -- 1.5%
Burnsville, MN Multi-family Revenue, Refunding Housing Coventry Court,
Series A, GNMA-Collaterized:
400,000 Aaa* 5.900% due 9/20/19 399,500
1,000,000 Aaa* 5.950% due 9/20/29 998,750
1,300,000 Aaa* Eagan, MN Multi-family Revenue, Refunding Housing Forest Ridge,
Series A, GNMA-Collaterized, 5.950% due 9/20/29 1,298,375
Hennepin County, MN Lease Revenue, COP:
2,955,000 Aa1 5.000% due 11/15/14 2,818,331
3,105,000 Aa1 5.000% due 11/15/15 2,938,106
23,000,000 AAA Minneapolis & St. Paul, MN Airport Revenue, Series A, FGIC-Insured,
5.125% due 1/1/31 20,930,000
Minnesota State GO, General Obligation Unlimited:
6,000,000 AAA 5.000% due 6/1/15 5,752,500
7,400,000 AAA 5.250% due 8/1/18 7,196,500
6,375,000 AAA 5.250% due 8/1/19 6,167,813
4,000,000 AA+ North St. Paul Maplewood, MN ISD, No. 622, Series A,
5.125% due 2/1/20 3,780,000
- ------------------------------------------------------------------------------------------------------------------------------------
52,279,875
- ------------------------------------------------------------------------------------------------------------------------------------
Mississippi -- 0.1%
1,000,000 AAA Harrison County, MS School District, State Aid Capital Improvement,
FSA-Insured, 5.000% due 8/1/15 943,750
Jackson, MS Municipal Airport Authority, Airport Revenue, Series A,
AMBAC-Insured:
385,000 AAA 5.000% due 12/1/12 373,450
405,000 AAA 5.100% due 12/1/13 390,825
425,000 AAA 5.125% due 12/1/14 408,000
450,000 AAA 5.125% due 12/1/15 428,625
470,000 AAA 5.125% due 12/1/16 444,738
- ------------------------------------------------------------------------------------------------------------------------------------
2,989,388
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri -- 0.7%
4,750,000 AAA Fenton, MO COP, (Capital Improvements Project), MBIA-Insured,
5.125% due 9/1/17 4,488,750
8,500,000 AAA Kansas City, MO Municipal Assistance Corp., Leasehold Revenue,
H. Roe Bartle Convention Center, Series A, MBIA-Insured,
5.000% due 4/15/20 7,766,875
Missouri State Environmental Improvement & Energy Resources Authority,
PCR, State Revolving Fund, Series E:
1,040,000 Aa1* 5.200% due 1/1/10 1,051,700
2,235,000 Aa1* 5.250% due 1/1/19 2,142,806
Poplar Bluff, MO Public Building Corp., Leasehold Revenue, MBIA-Insured:
1,025,000 Aaa* 5.000% due 9/1/13 982,719
4,475,000 Aaa* 5.100% due 9/1/18 4,133,782
</TABLE>
See Notes to Financial Statements
- --------------------------------------------------------------------------------
16 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Missouri -- 0.7% (continued)
$ 4,900,000 AAA St. Louis, MO Regional Convention & Sports Complex Authority, Series C,
AMBAC-Insured, 5.300% due 8/15/20 $ 4,740,750
- ------------------------------------------------------------------------------------------------------------------------------------
25,307,382
- ------------------------------------------------------------------------------------------------------------------------------------
Montana -- 1.0%
33,400,000 NR Montana State Board of Investment Resource Recovery Revenue,
(Yellowstone Energy LP Project), 7.000% due 12/31/19(b)(d) 33,233,000
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada -- 0.3%
Clark County, NV GO, Series A, FGIC-Insured:
6,035,000 AAA 5.000% due 6/1/15 5,695,531
6,340,000 AAA 5.000% due 6/1/16 5,919,975
- ------------------------------------------------------------------------------------------------------------------------------------
11,615,506
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire -- 0.1%
3,000,000 AAA Manchester, NH Apartment Revenue, Series A, MBIA-Insured,
4.500% due 1/1/28 2,358,750
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey -- 2.4%
5,000,000 AAA Casino Reinvestment Development Authority, NJ Parking Fee Revenue,
Series A, FSA-Insured, 5.250% due 10/1/16 4,875,000
2,500,000 AAA Hamilton Township, Atlantic City, NJ, Municipal Utilities Authority,
FGIC-Insured, 5.000% due 8/15/17 2,318,750
Middlesex County, NJ COP, MBIA-Insured:
1,280,000 AAA 5.000% due 6/15/12 1,246,400
1,345,000 AAA 5.050% due 6/15/13 1,301,288
1,410,000 AAA 5.100% due 6/15/14 1,362,413
1,300,000 AAA Middlesex County, NJ (Perth Amboy Franchise Project), Improvement
Authority Revenue, Series A, Governmental Loan, AMBAC-Insured,
5.000% due 9/1/29 1,165,125
500,000 AAA Monmouth County, NJ Improvement Authority Revenue,
Governmental Loan, AMBAC-Insured, 5.150% due 12/1/17 478,125
1,750,000 AAA New Brunswick, NJ Housing Authority, Lease Revenue, Rutgers University,
FGIC-Insured, 4.750% due 7/1/18 1,548,750
2,500,000 Aaa* New Jersey EDA Revenue, (Hillcrest Health Service Systems Project),
AMBAC-Insured, 5.375 due 1/1/16 2,459,375
2,000,000 AAA New Jersey EDA Revenue, (Transportation Project), Series A, FSA-Insured,
5.250% due 5/1/17 1,930,000
New Jersey Health Care Facilities Financing Authority Revenue:
1,000,000 AAA Barnabas Health Services, Series B, 4.750% due 7/1/28 845,000
Barnert Hospital, MBIA-Insured:
495,000 AAA 4.750% due 2/1/15 446,119
685,000 AAA 4.750% due 8/1/15 616,500
575,000 AAA 4.750% due 8/1/16 512,469
3,225,000 AAA Cathedral Health Services, MBIA-Insured 5.200% due 8/1/15 3,128,250
2,000,000 AAA Meridian Health System Obligation Group,
FSA-Insured, 5.250% due 7/1/19 1,912,500
2,500,000 BBB Rahway Hospital Obligation Group, 5.000% due 7/1/08 2,371,875
New Jersey State, GO:
22,000,000 AA+ 4.500% due 2/1/17 19,085,000
13,805,000 AA+ 4.500% due 2/1/18 11,872,300
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 17
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
New Jersey -- 2.4% (continued)
New Jersey State, Transportation Systems Trust Fund, Series A:
$ 5,000,000 AA- 5.750% due 6/15/17 $ 5,131,250
4,000,000 AA- 5.750% due 6/15/18 4,095,000
4,000,000 AA- 5.750% due 6/15/20 4,105,000
South Jersey, Transportation Systems Authority Revenue, AMBAC-Insured:
6,850,000 AAA 5.000% due 11/1/16 6,473,250
3,860,000 AAA 5.000% due 11/1/17 3,618,750
2,000,000 AAA 5.000% due 11/1/18 1,852,500
- ------------------------------------------------------------------------------------------------------------------------------------
84,750,989
- ------------------------------------------------------------------------------------------------------------------------------------
New Mexico -- 0.2%
2,400,000 AAA New Mexico Mortgage Financing Authority, Single-Family Program,
Series B-3, FHLMC, FNMA & GNMA-Collaterized, 5.000% due 9/1/17 2,259,000
3,135,000 Aaa* Santa Fe, NM Single-Family Mortgage Revenue,
FNMA & GNMA-Collateralized, 6.300% due 11/1/28(d) 3,185,944
- ------------------------------------------------------------------------------------------------------------------------------------
5,444,944
- ------------------------------------------------------------------------------------------------------------------------------------
New York -- 9.8%
1,710,000 AA Housing Corp. of New York Revenue, 5.500% due 11/1/20 1,624,500
Long Island Power Authority, NY Electrical Systems Revenue:
Series A, FSA-Insured:
36,000,000 AAA 5.000% due 12/1/15 33,840,000
18,120,000 AAA 5.125% due 12/1/16 17,168,700
Metropolitan Transportation Authority of New York:
Dedicated Tax Fund, Transit Facilities Revenue:
Series A:
4,190,000 AAA FGIC-Insured, 4.750% due 4/1/28 3,540,550
8,215,000 AAA FSA-Insured, 5.250% due 4/1/15 7,999,356
8,700,000 AAA FSA-Insured, 5.250% due 4/1/16 8,428,125
10,000,000 AAA FSA-Insured, 5.000% due 4/1/17 9,287,500
12,555,000 AAA FSA-Insured, 5.125% due 4/1/18 11,754,619
4,690,000 AAA Series B-2, MBIA-Insured, 5.000% due 7/1/17 4,367,563
2,500,000 AAA Series B, 4.875% due 7/1/18 2,256,250
550,000 AAA Series C, FSA-Insured, 4.750% due 7/1/16 493,625
1,100,000 AAA Municipal Assistance Corporation for City of Troy, NY Series A, MBIA-Insured,
5.000% due 1/15/16 1,046,375
3,000,000 AAA New York, NY City Health & Hospital Corp. Revenue, Health Systems, Series A,
5.000% due 2/15/20 2,730,000
4,000,000 AAA New York, NY City IDA Facilities Revenue, (Lighthouse International Project),
MBIA-Insured, 4.500% due 7/1/33 3,200,000
New York, NY City Municipal Water Finance Authority, Water & Sewer
Systems Revenue:
7,500,000 AAA Series A, FGIC-Insured, 4.750% due 6/15/31 6,271,875
11,950,000 AAA Series B, MBIA-Insured, 5.375% due 6/15/19 11,651,250
New York City, NY Transitional Finance Authority Revenue, Future Tax Secured:
6,450,000 AA Series A, 4.750% due 11/15/16 5,772,750
Series B:
13,915,000 AA 4.750% due 11/1/16 12,453,925
4,515,000 AA 4.750% due 11/1/17 4,023,994
Series C:
15,790,000 AA 5.000% due 5/1/18 14,487,325
1,475,000 AA 5.000% due 5/1/29 1,307,219
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
18 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
New York -- 9.8% (continued)
Series C, FGIC-Insured:
$ 2,530,000 AAA 5.000% due 5/1/16 $ 2,375,038
9,165,000 AAA 5.000% due 5/1/17 8,511,994
2,695,000 AAA New York, NY Education Construction Fund Revenue, AMBAC-Insured,
5.500% due 4/1/16 2,705,107
1,280,000 AAA New York, NY IDA, Civic Facilities Revenue, (Trinity Episcopal School Corp.
Project), MBIA-Insured, 5.250% due 6/15/17 1,235,200
New York State Dormitory Authority:
City University System:
Consolidated Second General Resolution, Series A, FGIC-Insured:
6,000,000 AAA 5.375% due 7/1/14(b) 6,000,000
11,000,000 AAA 5.000% due 7/1/16 10,326,250
5,000,000 AAA Consolidated Third General Resolution, Series 2, MBIA-Insured,
6.250% due 7/1/19 5,393,750
1,000,000 Aaa* Culinary Institute of America, MBIA-Insured, 5.000% due 7/1/17 931,250
Iona College, MBIA-Insured:
485,000 AAA 6.600% due 7/1/07 512,282
420,000 AAA 6.600% due 7/1/08 442,050
555,000 AAA 6.600% due 7/1/09 584,138
540,000 AAA 6.700% due 7/1/10 569,025
Mental Health Services Facilities Improvement Revenue, FSA-Insured:
4,000,000 AAA Series C, 5.125% due 8/15/17 3,755,000
2,000,000 AAA Series D, 5.125% due 8/15/17 1,877,500
20,765,000 AAA Montefiore Medical Center, AMBAC-Insured, 5.250% due 2/1/15 20,297,788
4,500,000 AAA Municipal Health Facilities, Improvement Program, Series A, FSA-Insured,
5.500% due 5/15/24 4,381,875
5,000,000 AAA North General Hospital, Series G, AMBAC-Insured, 5.200% due 2/15/15 4,843,750
State University Educational Facilities, Series A, MBIA-Insured:
6,195,000 AAA 5.000% due 5/15/15 5,869,763
7,030,000 AAA 5.000% due 5/15/16 6,599,413
13,635,000 AAA 5.000% due 5/15/17 12,663,507
3,915,000 AAA University of Rochester, Series A, MBIA-Insured, 5.000% due 7/1/16 3,675,207
7,000,000 A- New York State Energy Research & Development Authority PCR,
(Lilco Project), Series A, Remarketed 3/1/99, 5.150% due 3/1/16 6,475,000
5,520,000 Aa1* New York State Environmental Facilities Corp., State Clean Water &
Drinking Water, Revolving Funds, Series C, 5.000% due 6/15/16 5,188,800
2,000,000 A New York State GO, 12.000% due 11/15/03 2,565,000
6,000,000 AAA New York State Medical Care Facilities Finance Agency Revenue,
FGIC-Insured, 5.250% due 2/15/19 5,730,000
6,530,000 Aa2* New York State Mortgage Agency Revenue, Homeowner Mortgage
Series 80, 5.100% due 10/1/17 6,187,175
New York State Thruway Authority, Highway & Bridge Transportation Fund,
FGIC-Insured:
10,030,000 AAA Series A, 5.000% due 4/1/18 9,252,675
Series B:
5,000,000 AAA 5.000% due 4/1/15 4,712,500
6,820,000 AAA 5.000% due 4/1/17 6,317,025
New York State Urban Development Corp. Revenue, Correctional
Capital Facilities:
4,000,000 AAA AMBAC-Insured, 5.250% due 1/1/18 3,865,000
3,250,000 AAA Series A, FSA-Insured, 5.250% due 1/1/21 3,103,750
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 19
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
New York -- 9.8% (continued)
$ 1,000,000 AAA St. Lawrence County, NY Industrial Developmental Agency, Civic Facilities
Revenue, (St. Lawrence University Project), Series A, MBIA-Insured,
5.375% due 7/1/18 $ 980,000
Triborough Bridge & Tunnel Authority of New
York, General Purpose Revenue Bonds, Series A:
10,000,000 Aa3* 5.200% due 1/1/20 9,400,000
11,000,000 Aa3* 5.000% due 1/1/24 9,886,250
Yonkers, NY GO, FGIC-Insured:
1,125,000 AAA Series A, 5.000% due 9/1/14 1,072,970
2,000,000 AAA Series B, 5.000% due 9/1/17 1,857,500
- ------------------------------------------------------------------------------------------------------------------------------------
343,849,033
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina -- 2.8%
4,500,000 A2* Carteret County, NC COP, (Elementary School Project),
6.500% due 2/1/07 4,741,875
2,500,000 AA+ Charlotte, NC, Water & Sewer Systems Revenue, 5.250% due 6/1/24 2,371,875
3,000,000 AA North Carolina Housing Finance Agency, Home Ownership, Series A-1,
5.350% due 1/1/17(d) 2,880,000
North Carolina Medical Care Commission:
Health Care Facilities Revenue:
3,000,000 AA Carolina Medicorp Project, 5.125% due 5/1/16 2,812,500
5,000,000 AA Duke University Health Systems, Series A, 5.000% due 6/1/23 4,443,750
655,000 AA Novant Health Project, Series B, 5.000% due 10/1/16 601,782
Hospital Revenue:
4,500,000 AA- First Health of the Carolinas, 4.750% due 10/1/26 3,763,125
1,500,000 A+ Gaston Health Care, 5.000% due 12/15/12 1,415,625
Pitt County Memorial Hospital, Series A:
5,000,000 AA- 4.750% due 12/1/28 4,156,250
9,265,000 AAA MBIA-Insured, 4.750% due 12/1/28 7,759,438
16,755,000 AAA North Carolina Municipal Power Agency No.1, Catawaba Electric Revenue:
Series A AMBAC-Insured, 5.375% due 1/1/20(b) 16,273,294
MBIA-Insured:
7,860,000 AAA 5.125% due 1/1/15 7,545,600
18,350,000 AAA 5.125% due 1/1/17 17,363,688
15,000,000 AAA 5.125% due 1/1/17 14,118,750
2,500,000 AA+ Raleigh, NC Combined Enterprise System Revenue, 4.750% due 3/1/19 2,178,125
500,000 AAA Sampson Area Development Corp., Installment Payment Revenue,
MBIA-Insured, 4.750% due 6/1/19 438,750
University of North Carolina Hospital, Chapel
Hill Revenue, AMBAC-Insured:
1,455,000 AAA 5.250% due 2/15/17 1,416,806
3,125,000 AAA 5.000% due 2/15/21 2,875,000
1,250,000 AAA 5.000% due 2/15/24 1,139,063
- ------------------------------------------------------------------------------------------------------------------------------------
98,295,296
- ------------------------------------------------------------------------------------------------------------------------------------
North Dakota -- 0.1%
1,000,000 AAA Burleigh County, ND Health Care Revenue, Medcenter One Inc.,
MBIA-Insured, 5.250% due 5/1/13 977,500
1,000,000 AAA Fargo, ND Water Revenue, MBIA-Insured, 5.125% due 1/1/14 962,500
- ------------------------------------------------------------------------------------------------------------------------------------
1,940,000
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
20 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Ohio -- 6.6%
Akron, Bath and Copley, OH Joint Township
Hospital District, Hospital Revenue, (Akron
General Medical Center Project),
AMBAC-Insured:
$ 14,630,000 AAA 5.375% due 1/1/17(b) $14,501,988
18,000,000 AAA 5.375% due 1/1/22 17,415,000
3,000,000 Aaa* Akron-Summit County, OH Public Library GO, Series A, FGIC-Insured
5.000% due 12/1/15 2,842,500
8,375,000 AAA Akron, OH EDA Revenue, MBIA-Insured, 5.000% due 12/1/18 7,725,938
1,000,000 Aaa* Brecksville-Broadview Heights, OH City School District, FGIC-Insured,
6.500% due 12/1/16 1,091,250
12,950,000 AAA Butler County, OH Transportation Improvement District, Series A,
FSA-Insured, 5.125% due 4/1/17 12,318,688
Clermont County, OH Hospital Facilities Revenue, Mercy Health Systems,
Series B, AMBAC-Insured:
3,415,000 AAA 5.625% due 9/1/16 3,453,419
1,000,000 AAA 5.625% due 9/1/21 1,003,750
Cleveland, OH Waterworks Revenue, Refunding &
Improvement, First Mortgage, Series H,
MBIA-Insured:
985,000 AAA Pre-Refunded -- Escrowed with state and local government securities
to 1/1/06 Call @ 102, 5.700% due 1/1/14(c) 1,052,719
1,000,000 AAA 5.625% due 1/1/13 1,020,000
15,000 AAA 5.700% due 1/1/14 14,325
3,000,000 AAA Cleveland-Cuyahoga County, OH Port Authority Revenue, Rock & Roll
Hall of Fame, AMBAC-Insured, 5.400% due 12/1/15 3,000,000
Cuyahoga County, OH Hospital Revenue, Cleveland Clinic Health
Series B:
1,250,000 AA- 5.250% due 1/1/15 1,185,938
3,750,000 AA- 5.125% due 1/1/29 3,309,375
Cuyahoga County, OH Hospital Revenue, Refunding and Improvement,
(Metrohealth System Project), MBIA-Insured:
1,000,000 AAA 5.375% due 2/15/12 1,002,500
1,000,000 AAA 5.625% due 2/15/17 1,013,750
Series A:
5,180,000 AAA 5.500% due 2/15/12(b) 5,257,700
5,050,000 AAA 5.125% due 2/15/13(b) 4,917,438
6,680,000 AAA 5.125% due 2/15/15 6,412,800
3,025,000 AAA 5.125% due 2/15/16 2,885,094
4,890,000 AAA 5.125% due 2/15/17 4,627,163
13,935,000 AAA 5.250% due 2/15/19 13,360,181
Cuyahoga County, OH Hospital Revenue, University Hospital
Health Systems, AMBAC-Insured:
2,500,000 AAA 5.400% due 1/15/19 2,412,500
7,000,000 AAA 5.500% due 1/15/30 6,746,250
4,000,000 AAA Delaware County, OH Sewer District, GO, MBIA-Insured,
4.750% due 12/1/24 3,440,000
4,065,000 AAA Franklin County, OH Convention Facilities Authority, Tax & Lease Revenue
Anticipation Bonds, MBIA-Insured, 5.000% due 12/1/17 3,775,369
Hamilton County, OH Sales Tax, MBIA-Insured:
1,500,000 AAA Football Project-A, 4.750% due 12/1/27 1,276,875
9,650,000 AAA Football Project-B, 5.000% due 12/1/27 8,648,813
1,520,000 Aa3* Lakewood, OH GO, 5.125% due 12/1/17 1,442,100
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 21
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Ohio -- 6.6% (continued)
$ 5,500,000 AAA Lorain County, OH Health Facilities Revenue, Catholic Healthcare Partners,
Series A, 5.500% due 9/1/29 $ 5,328,125
Lucas County, OH Hospital Revenue, Promedia Healthcare Obligation
Group, AMBAC-Insured:
10,000,000 AAA 5.375% due 11/15/23 9,487,500
30,000,000 AAA 5.375% due 11/15/29 28,500,000
3,000,000 Aaa* Medina, OH City School District GO, FGIC-Insured, 5.000% due 12/1/18 2,767,500
3,025,000 Aaa* Muskingum County, OH Facilities Improvement, GO, MBIA-Insured,
5.125% due 12/1/19 2,828,375
1,630,000 AA- New Lexington, OH School District Improvement GO, 5.375% due 12/1/21 1,579,063
Ohio State Building Authority, State Facilities:
Administration Building Fund Projects, Series A:
2,725,000 AA- 5.000% due 10/1/15 2,585,344
5,000,000 AA- 5.000% due 10/1/18 4,631,250
Adult Correctional Buildings Funds Projects, Series A:
5,675,000 AA- 5.000% due 4/1/15 5,391,250
5,010,000 AA- 5.000% due 4/1/16 4,721,925
1,500,000 NR Ohio State Solid Waste Revenue, Republic Engineered Steels Inc.,
9.000% due 6/1/21(d) 1,618,125
2,670,000 AAA Ohio State Water Development Authority Revenue, Water Development,
Fresh Water Series, FSA-Insured, 5.000% due 12/1/16 2,519,813
6,000,000 AA- Olentangy, OH, Local School District, GO, 5.000% due 12/1/27 5,407,500
2,955,000 AAA Parma, OH, GO, Series A, FGIC-Insured, 5.000% due 12/1/18 2,725,988
1,585,000 AAA Twinsburg, OH Local School District, FGIC-Insured, 5.900% due 12/1/21 1,606,794
University of Akron, OH General Receipts:
AMBAC-Insured:
1,000,000 AAA 5.125% due 1/1/11 987,500
1,000,000 AAA 5.125% due 1/1/12 981,250
2,525,000 AAA 5.250% due 1/1/22 2,379,813
FGIC-Insured:
3,000,000 AAA 5.750% due 1/1/29 3,000,000
3,000,000 AAA 5.700% due 1/1/24 2,988,750
- ------------------------------------------------------------------------------------------------------------------------------------
229,189,288
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma -- 0.4%
10,545,000 AAA Oklahoma State Turnpike Authority, Turnpike Revenue, Series A,
FGIC-Insured, 5.000% due 1/1/14 10,307,738
1,975,000 AA Tulsa, OK Industrial Authority, Hospital Revenue, (St. John's Medical
Center Project), 6.250% due 2/15/17 2,061,406
1,000,000 AA- Woods County, OK IDA, Revenue Refunding, (Cargill Inc. Project),
6.250% due 10/1/14 1,068,750
- ------------------------------------------------------------------------------------------------------------------------------------
13,437,894
- ------------------------------------------------------------------------------------------------------------------------------------
Oregon -- 1.1%
Clackamas County, OR Hospital Facilities Authority Revenue,
Kaiser Permanente:
2,500,000 A Series A, 5.375% due 4/1/14 2,418,750
7,650,000 AA 5.250% due 2/15/17 7,296,188
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
22 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Oregon -- 1.1% (continued)
Clackamas & Washington Counties, OR School District No. 3, FGIC-Insured:
$ 2,860,000 AAA 5.000% due 6/1/15 $ 2,709,850
3,555,000 AAA 5.000% due 6/1/16 3,341,700
1,685,000 AAA 5.000% due 6/1/17 1,573,369
Oregon State Department of Administrative Services Corp., Series A,
AMBAC-Insured:
7,155,000 AAA 4.875% due 5/1/16 6,573,657
6,505,000 AAA 4.875% due 5/1/17 5,927,682
6,950,000 AA Oregon State GO, Series B, 6.375% due 8/1/24(b) 7,280,125
- ------------------------------------------------------------------------------------------------------------------------------------
37,121,321
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania -- 2.6%
4,000,000 AAA Allegheny County, PA Airport Revenue, Pittsburgh International Airport,
Series B, MBIA-Insured, 5.000% due 1/1/17 3,720,000
2,800,000 AAA Altoona, PA City Authority Water Revenue, FGIC-Insured,
5.000% due 11/1/19 2,579,500
1,150,000 AAA Delaware County, PA Interboro School District GO, MBIA-Insured,
5.300% due 8/15/17 1,112,625
1,290,000 Aaa* Lower Bucks County, PA Joint Municipal Authority, Sewer & Water Revenue,
FSA-Insured, 5.000% due 11/15/17 1,193,250
6,000,000 AAA Montgomery County, PA Higher Education & Health Authority Revenue,
Holy Redeemer Health, Series A, 5.250% due 10/1/17 5,737,500
2,860,000 AAA Pennsylvania Cambria School District, FGIC-State Aid Withholding,
4.900% due 8/15/17 2,613,325
Pennsylvania Economic Development Financing Authority, Resource
Recovery Revenue, (Northhampton Generating Project), Series C:
2,000,000 NR 6.875% due 1/1/11(d) 2,012,500
12,000,000 NR 6.950% due 1/1/21(b)(d) 12,090,000
Pennsylvania State, GO, First Series, MBIA-Insured:
14,250,000 AAA 5.000% due 6/1/17 13,270,313
3,500,000 AAA 5.000% due 6/1/18 3,228,750
2,645,000 AAA Pennsylvannia State, Thomas Jefferson University, Higher Educational
Facility Authority Revenue, AMBAC-Insured, 5.000% due 7/1/15 2,479,688
Pennsylvania State University:
Series A:
3,430,000 AA- 5.000% due 8/15/15 3,224,200
3,660,000 AA- 5.000% due 8/15/16 3,426,675
Series B:
1,035,000 AA- 5.000% due 8/15/15 972,900
1,090,000 AA- 5.000% due 8/15/16 1,020,513
2,700,000 AAA Philadelphia, PA GO, FGIC-Insured, 4.750% due 5/15/16 2,436,750
Philadelphia, PA School District GO, Series B, AMBAC-Insured:
3,310,000 AAA 5.250% due 4/1/17 3,185,875
2,220,000 AAA 5.375% due 4/1/19 2,150,625
7,825,000 AAA Philadelphia, PA Water & Wastewater Revenue, Series A, AMBAC-Insured,
5.000% due 8/1/14 7,443,532
5,250,000 AAA Pittsburgh & Allegheny County, PA Public Auditorium, Regional Asset
District Sales Tax, AMBAC-Insured, 5.000% due 2/1/24 4,744,688
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 23
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Pennsylvania -- 2.6% (continued)
Saint Mary Hospital Authority, Bucks County Catholic Health Initiatives,
Series A:
$ 2,680,000 AA 5.375% due 12/1/12 $ 2,613,000
1,000,000 AA 5.000% due 12/1/18 892,500
Southeastern PA, Transportation Authority Revenue, Series A,
FGIC-Insured:
9,000,000 AAA 4.750% due 3/1/24 7,717,500
3,000,000 AAA 4.750% due 3/1/29 2,516,250
- ------------------------------------------------------------------------------------------------------------------------------------
92,382,459
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina -- 2.2%
4,330,000 AAA Beaufort County, SC Hospital Facilities Revenue, Beaufort County
Memorial Hospital, AMBAC-Insured, 5.000% due 12/1/12 4,178,450
Berkeley County, SC School District COP, Berkeley School Facilities
Group Inc.:
3,000,000 AAA AMBAC-Insured, 5.000% due 2/1/16 2,771,250
2,625,000 AAA MBIA-Insured, 5.250% due 2/1/16 2,559,375
Citadel Military College, SC Revenue, AMBAC-Insured:
3,000,000 AAA 5.125% due 4/1/15 2,883,750
3,115,000 AAA 5.125% due 4/1/17 2,963,144
Greenville, SC Memorial Auditorium District, Public Facilities
Corp., COP, (Bi-Lo Center Project,) Series B, AMBAC-Insured:
1,815,000 AAA 4.750% due 3/1/17 1,606,275
4,000,000 AAA 4.750% due 3/1/24 3,420,000
7,000,000 AAA Lexington County, SC Health Services District Inc., Hospital Revenue,
Refunding & Improvement, FSA-Insured, 5.250% due 11/1/17 6,702,500
Piedmont Municipal Power Agency, SC Electric Revenue, Series A,
MBIA-Insured:
5,300,000 AAA 5.000% due 1/1/15 4,962,125
5,000,000 AAA 4.875% due 1/1/17 4,487,500
43,500,000 Aaa* South Carolina, Transportation Infrastructure Revenue, Series A,
AMBAC-Insured, 5.250% due 10/1/21 41,216,250
- ------------------------------------------------------------------------------------------------------------------------------------
77,750,619
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee -- 1.0%
Chattanooga, TN Health and Educational Housing Facilities Board,
Mortgage Revenue, Red Bank Health Care, FHA-Insured,
(LOC - Citibank N.A.):
30,000 A 11.250% due 2/1/00 30,841
90,000 A 11.250% due 8/1/00 95,223
100,000 A 11.250% due 2/1/01 108,375
105,000 A 11.250% due 8/1/01 116,813
110,000 A 11.250% due 2/1/02 124,988
115,000 A 11.250% due 8/1/02 133,831
120,000 A 11.250% due 2/1/03 142,050
130,000 A 11.250% due 8/1/03 156,975
135,000 A 11.250% due 2/1/04 164,363
145,000 A 11.250% due 8/1/04 179,619
150,000 A 11.250% due 2/1/05 188,438
180,000 A 11.250% due 8/1/05 229,725
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
24 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Tennessee -- 1.0% (continued)
Hardeman County, TN Correctional Facilities Corp.:
$ 1,200,000 NR 6.900% due 8/1/03 $ 1,233,000
11,000,000 NR 7.750% due 8/1/17 11,866,250
10,890,000 AA+ Shelby County, TN GO Series A, 5.000% due 3/1/20 9,991,575
Shelby County, TN Health, Educational & Housing Facilities Board,
Hospital Revenue, Methodist Health System, Remarketed 8/1/97,
MBIA-Insured:
2,380,000 AAA 5.200% due 8/1/13 2,329,425
1,425,000 AAA 5.250% due 8/1/14 1,398,282
3,760,000 AAA 5.300% due 8/1/15 3,680,100
Wilson County, TN COP, FSA-Insured:
720,000 AAA 5.100% due 3/30/11 710,100
755,000 AAA 5.150% due 3/30/12 741,788
835,000 AAA 5.250% due 3/30/14 823,519
- ------------------------------------------------------------------------------------------------------------------------------------
34,445,280
- ------------------------------------------------------------------------------------------------------------------------------------
Texas -- 19.1%
3,000,000 AAA Aledo, TX ISD, GO, PSF, 5.000% due 2/15/29 2,673,750
2,000,000 Aaa* Amarillo, TX Health Facilities Corp., Baptist St. Anthony's Hospital Corp.,
FSA-Insured, 5.500% due 1/1/17 1,985,000
Arlington, TX ISD GO, PSFG:
7,335,000 Aaa* 4.750% due 2/15/22 6,317,269
2,000,000 Aaa* 5.000% due 2/15/17 1,855,000
4,860,000 Aaa* 5.000% due 2/15/24 4,361,850
Austin, TX Utility Systems Revenue, FSA-Insured:
5,160,000 AAA 5.125% due 11/15/16 4,882,650
3,500,000 AAA 5.125% due 11/15/17 3,285,625
Austin, TX Water, Sewer & Electric Revenue:
320,000 A* Pre-Refunded -- Escrowed with U.S. government securities to various
call dates (5/15/99 to 11/15/01) Call @ 100,
14.000% due 11/15/01(c) 341,200
290,000 A* Pre-Refunded -- Escrowed with U.S. government securities to various
call dates (5/15/99 to 11/15/01) Call @ 100,
14.000% due 11/15/01(c) 320,813
35,010,000 A* Un-Refunded -- Escrowed with U.S. government securities to
various call dates (5/15/99 to 11/15/01) Call @ 100,
14.000% due 11/15/01(c) 39,079,913
Bedford, TX GO, FSA-Insured:
1,000,000 Aaa* 5.125% due 2/1/15 953,750
1,000,000 Aaa* 5.125% due 2/1/16 947,500
1,000,000 Aaa* 5.250% due 2/1/17 960,000
1,000,000 Aaa* 5.250% due 2/1/18 952,500
Bell County, TX Health Facilities Development Corp. Revenue,
Cook Children's Medical Center, FSA-Insured:
1,575,000 AAA 5.000% due 12/1/12 1,523,813
1,660,000 AAA 5.100% due 12/1/13 1,593,600
1,745,000 AAA 5.125% due 12/1/14 1,666,475
1,840,000 AAA 5.200% due 12/1/15 1,764,100
2,000,000 AAA 5.200% due 12/1/16 1,902,500
2,155,000 AAA 5.250% due 12/1/18 2,036,475
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 25
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Texas -- 19.1% (continued)
$ 2,570,000 AAA Bexar County, TX Health Facilities Development Corp. Revenue,
Baptist Health System, Series A, MBIA-Insured, 5.250% due 11/15/27 $ 2,380,463
1,000,000 Baa1* Brazos River Authority, TX PCR, Utilities Electric Co., Series C,
5.550% due 6/1/30(d) 888,750
2,100,000 BBB Brownsville, TX Naval District, (Union Carbide Corp. Project),
5.100% due 1/1/12 1,968,750
690,000 AAA Brownsville, TX Refunding & Public Improvement GO, FGIC-Insured,
5.200% due 2/15/15 668,438
6,750,000 AAA Brownsville, TX Utilities System Revenue, Priority Refunding,
AMBAC-Insured, 5.250% due 9/1/20 6,404,063
Burleson, TX ISD, PSFG:
11,740,000 NR Pre-Refunded -- Escrowed with U.S. government securities to 8/1/06
Call @ 100, 6.750% due 8/1/24(c) 13,148,800
4,795,000 Aaa* 6.750% due 8/1/24 5,190,588
2,300,000 AAA Carroll, TX ISD GO, PSFG, 4.875% due 8/15/27 1,969,375
1,995,000 AA Carrollton, TX GO, 5.000% due 8/15/19 1,840,388
4,370,000 AAA Carrollton, TX ISD GO, PSFG, 4.625% due 4.625% due 2/15/17 3,818,288
Conroe, TX ISD, PSFG:
3,225,000 AAA 5.125% due 2/15/16 3,079,875
3,000,000 AAA Lot A, 5.600% due 2/15/21 2,981,250
Lot B:
1,000,000 AAA 5.450% due 2/15/15 995,000
1,075,000 AAA 5.450% due 2/15/16 1,062,906
Copperas Cove Island, TX ISD, GO, PSFG Refunding:
1,960,000 AAA 5.600% due 2/1/13 1,979,600
2,035,000 AAA 5.600% due 2/1/14 2,050,263
Corpus Christi, TX, Utility Systems Revenue, FSA-Insured:
2,435,000 AAA 5.250% due 7/15/15 2,364,994
2,565,000 AAA 5.250% due 7/15/16 2,475,225
2,700,000 AAA 5.000% due 7/15/17 2,477,250
2,110,000 AAA 5.000% due 7/15/19 1,920,100
2,400,000 AAA Cypress-Fairbanks, TX ISD, GO, PSFG, 4.750% due 2/15/22 2,061,000
4,700,000 AAA Dallas, TX Civic Center, MBIA-Insured, 4.875% due 8/15/23 4,083,125
Del Valle, TX ISD, GO, PSFG:
2,875,000 AAA 5.100% due 2/1/13 2,799,531
3,025,000 AAA 5.125% due 2/1/14 2,926,688
3,185,000 AAA 5.150% due 2/1/15 3,069,544
5,850,000 AAA Edinburg, TX ISD, Public Facilities Corp. Lease Revenue, AMBAC-Insured,
5.000% due 8/15/19 5,316,188
El Paso County, TX Community College District Revenue, Combination Fee,
AMBAC-Insured, Series B:
1,720,000 AAA 5.125% due 4/1/12 1,692,050
1,000,000 AAA 5.125% due 4/1/15 953,750
1,545,000 AAA 5.125% due 4/1/19 1,434,919
El Paso County, TX GO, FGIC-Insured:
1,235,000 AAA 5.000% due 2/15/14 1,177,881
2,355,000 AAA 5.000% due 2/15/18 2,172,488
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
26 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Texas -- 19.1% (continued)
El Paso County, TX ISD, GO, PSFG:
$ 3,670,000 AAA 4.750% due 2/15/18 $ 3,238,775
4,000,000 AAA 4.750% due 2/15/19 3,495,000
3,000,000 AAA Elgin, TX ISD, GO, PSFG, 5.200% due 10/1/18 2,857,500
1,215,000 AAA Fort Bend County, TX Levee Improvement District No. 011, MBIA-Insured,
5.875% due 3/1/13 1,246,894
Fort Worth, TX Higher Education Finance Corp., Higher Education Revenue,
(Texas Christian University Project):
2,690,000 AA- 4.875% due 3/15/12 2,545,413
2,825,000 AA- 4.875% due 3/15/13 2,669,625
3,000,000 AA- 5.000% due 3/15/17 2,760,000
2,000,000 AA- 5.000% due 3/15/20 1,805,000
3,500,000 AAA Fort Worth, TX ISD GO, PSFG, 5.000% due 2/15/19 3,202,500
2,800,000 AA Fort Worth, TX Water & Sewer Revenue, Refunding & Improvement,
5.000% due 2/15/18 2,579,500
2,730,000 Aaa* Frisco, TX ISD, GO, PSFG, 5.250% due 8/15/22 2,569,613
1,200,000 BBB Gulf Coast Waste Disposal Authority, PCR,
(Union Carbide Corp. Project), 5.100% due 1/1/12 1,125,000
Gulf Coast Water Authority, Water Systems Contract Revenue,
South Project, Series A, FSA-Insured:
1,055,000 AAA 5.000% due 8/15/16 982,469
2,085,000 AAA 5.000% due 8/15/17 1,912,988
2,135,000 AAA 5.000% due 8/15/18 1,942,850
1,600,000 AAA 5.000% due 8/15/22 1,436,000
1,000,000 A1* Harris County, TX Industrial Development Corp., IDR, Cargill Inc.,
7.000% due 10/1/15 1,083,750
Harris County, TX Toll Road:
12,920,000 AAA Sr. Lien Revenue, FGIC-Insured, 5.375% due 8/15/20 12,451,650
Sub. Lien Revenue:
5,800,000 AA 5.100% due 8/15/15 5,568,000
12,155,000 AA 5.125% due 8/15/17 11,532,056
28,670,000 AA 5.000% due 8/15/21 26,161,375
14,200,000 AAA MBIA-Insured, 5.125% due 8/15/17 13,383,500
Harris County, TX Health Facilities Development Corp.
(Children's Hospital Project) Series A:
2,410,000 AA 5.375% due 10/1/16 2,304,563
2,000,000 AA 5.250% due 10/1/29 1,802,500
8,520,000 AAA Houston, TX Airport System Revenue, Sub. Lien, FGIC-Insured,
5.125% due 7/1/22 7,849,050
Houston, TX Community College System Revenue, Student Fee:
AMBAC-Insured:
1,315,000 AAA 5.000% due 4/15/15 1,234,456
1,380,000 AAA 5.000% due 4/15/16 1,285,125
1,450,000 AAA 5.000% due 4/15/17 1,332,188
1,520,000 AAA 5.000% due 4/15/18 1,385,100
MBIA-Insured:
1,705,000 AAA 5.600% due 4/15/14 1,717,788
3,295,000 AAA 5.650% due 4/15/15 3,315,594
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 27
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Texas -- 19.1% (continued)
Houston, TX GO, Series A:
$ 3,000,000 AA- 5.000% due 3/1/16 $ 2,831,250
5,485,000 AA- 5.000% due 3/1/17 5,094,194
5,000,000 AA- 4.750% due 3/1/17 4,437,500
44,500,000 AAA Houston, TX ISD, GO, Series A, PSFG, 4.750% due 2/15/22 38,325,625
Houston, TX Water & Sewer System Revenue, Jr. Lien, FGIC-Insured,
Series A:
25,195,000 AAA 5.250% due 12/1/22 23,777,781
29,000,000 AAA 5.250% due 12/1/25 26,970,000
La Porte, TX ISD, GO, PSFG:
500,000 AAA 5.500% due 2/15/14 501,875
500,000 AAA 5.500% due 2/15/15 500,000
500,000 AAA 5.500% due 2/15/16 497,500
4,105,000 AAA Lamar, TX ISD, GO, PSFG, 5.250% due 2/15/17 3,930,538
Lubbock, TX Health Facilities Development Corp. Revenue,
St. Joseph Health Systems:
2,800,000 AA 5.250% due 7/1/13 2,688,000
1,135,000 AA 5.250% due 7/1/14 1,082,506
3,400,000 AA 5.250% due 7/1/15 3,213,000
12,495,000 AA 5.250% due 7/1/16 11,729,681
8,095,000 AA 5.250% due 7/1/17 7,578,944
6,085,000 AA 5.250% due 7/1/18 5,659,050
6,545,000 AA 5.250% due 7/1/19 6,062,306
10,505,000 AA 5.000% due 7/1/23 9,310,056
Magnolia, TX ISD, GO, PSFG:
7,435,000 Aaa* 5.000% due 8/15/16 6,970,313
4,270,000 Aaa* 5.000% due 8/15/17 3,955,088
9,500,000 Aaa* 5.125% due 8/15/22 8,775,625
Manor, TX ISD, GO, PSFG:
1,185,000 AAA 5.100% due 8/1/14 1,143,525
1,235,000 AAA 5.100% due 8/1/15 1,182,513
1,000,000 AAA 5.000% due 8/1/17 926,250
5,500,000 AAA Midland County, TX Hospital District Revenue, AMBAC-Insured,
5.375% due 6/1/16 5,362,500
Midland, TX ISD, GO, PSFG:
1,435,000 Aaa* 5.000% due 2/15/17 1,334,550
770,000 Aaa* 4.750% due 2/15/18 680,488
3,305,000 Aaa* 4.750% due 2/15/20 2,879,481
1,750,000 AAA Montgomery County, TX COP, Series A, MBIA-Insured, 5.000% due 3/1/18 1,614,375
3,465,000 AAA Montgomery County, TX GO, Utility District No. 47, Waterworks & Sewer,
AMBAC-Insured, 4.750% due 10/1/21 2,979,900
9,820,000 AAA North Central, TX Health Facility Development Corp. Revenue,
(Zale Lipshy University Project), FSA-Insured, 5.450% due 4/1/15 9,709,525
North Forest, TX ISD, GO, PSFG:
1,935,000 AAA 5.125% due 8/15/14 1,872,113
1,035,000 AAA 5.000% due 8/15/15 980,663
1,385,000 AAA 5.000% due 8/15/16 1,301,900
1,000,000 AAA 5.000% due 8/15/18 921,250
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
28 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Texas -- 19.1% (continued)
$ 2,000,000 AAA North Harris, Montgomery County, Community College District,
AMBC-Insured, 5.000% due 2/15/21 $ 1,825,000
2,000,000 AAA Northside, TX ISD, GO, PSF, 4.750% due 8/15/24 1,702,500
3,630,000 AAA Nueces River Authority, TX Water Supply Facilities,
(Corpus Christi Lake Project), FSA-Insured, 5.500% due 3/1/27 3,516,563
2,425,000 AAA Pflugerville, TX GO, FGIC-Insured, 4.750% due 8/1/20 2,103,688
1,595,000 AA+ Plano, TX Refunding & Improvement GO, 5.150% due 9/1/16 1,529,207
1,025,000 AAA Port Arthur, TX GO, MBIA-Insured, 5.500% due 2/15/16 1,019,875
3,000,000 AAA Port of Port Arthur, TX Naval District, AMBAC-Insured, 4.875% due 3/1/17 2,700,000
10,370,000 AAA Richardson, TX ISD, GO, Series C, PSFG, 4.750% due 2/15/25 8,801,538
Richardson, TX Refunding & Improvement GO:
680,000 AA 5.000% due 2/15/16 641,750
1,465,000 AA 5.000% due 2/15/18 1,360,619
6,400,000 AA San Antonio, TX Electric & Gas Refunding, Series A, 5.000% due 2/1/18 5,872,000
Santa Fe, TX ISD, GO, PSFG:
1,190,000 Aaa* 5.250% due 2/15/17 1,139,425
2,270,000 Aaa* 5.125% due 2/15/19 2,128,125
Socorro, TX ISD, GO, PSFG:
3,595,000 AAA 5.300% due 8/15/18 3,464,682
7,460,000 Aaa* 5.125% due 2/15/27 6,816,575
4,000,000 A+ Southwest Higher Education Authority, Southern Methodist University,
5.000% due 10/1/18 3,615,000
1,610,000 AAA Springtown, TX ISD, GO, PSFG, 5.000% due 2/15/14 1,535,538
Stephenville, TX ISD, GO, PSFG:
1,125,000 AAA 5.000% due 2/15/14 1,072,969
1,570,000 AAA 5.000% due 2/15/15 1,485,613
1,735,000 AAA 5.000% due 2/15/17 1,613,550
1,000,000 AAA Texas State Department of Housing & Community Affairs, Multi-Family
Revenue, (Volente Project,) FNMA Collateralized, 5.550% due 1/1/18(d) 971,250
4,000,000 AA Texas State GO, Series B, 5.125% due 10/1/15 3,860,000
Texas State Public Finance Authority:
Building Revenue, AMBAC-Insured:
2,800,000 AAA 5.000% due 8/1/14 2,649,500
2,960,000 AAA 5.000% due 8/1/15 2,782,400
5,450,000 AAA General Services Common Projects, Series A, AMBAC-Insured,
5.000% due 2/1/17 5,020,813
5,000,000 AA GO, 5.000% due 10/1/15 4,750,000
33,300,000 AAA Texas State Turnpike Authority Dallas North Tollway Revenue,
George Bush Turnpike, FGIC-Insured, 5.250% due 1/1/23(b) 31,385,250
Texas State Water Development GO, Series D:
10,000,000 AAA 5.000% due 8/1/16 9,437,500
6,000,000 AAA 5.000% due 8/1/19 5,550,000
Texas Water Development Board Revenue, State Revolving Fund, Sr. Lien, Series B:
3,000,000 AAA 5.000% due 7/15/14 2,865,000
2,500,000 AAA 5.000% due 7/15/15 2,368,750
7,000,000 AAA 5.000% due 7/15/16 6,580,000
15,640,000 AAA 5.000% due 7/15/19(h) 14,369,250
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 29
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Texas -- 19.1% (continued)
$ 4,120,000 AA+ Travis County, TX Health Facilities Development Corp., Hospital Revenue,
Charity Obligation Group, Series A, 5.125% due 11/1/18 $ 3,780,100
Tyler, TX Health Facilities Development Corp., (East Texas Medical
Center Project):
1,350,000 AAA Series A, MBIA-Insured, 5.500% due 11/1/17 1,328,063
2,000,000 AAA Series B, FSA-Insured, 5.500% due 11/1/17 1,967,500
3,250,000 AAA Series C, FSA-Insured, 5.500% due 11/1/17 3,197,188
Victoria, TX ISD, GO, PSFG:
1,245,000 AAA 5.000% due 2/15/15 1,178,081
1,370,000 AAA 5.000% due 2/15/16 1,286,146
2,500,000 AAA Victoria, TX Utility System Revenue, Series A, MBIA-Insured,
5.000% due 12/1/21 2,256,250
3,000,000 Aaa* Weatherford, TX ISD, GO, PSFG, 5.000% due 2/15/15 2,846,250
- ------------------------------------------------------------------------------------------------------------------------------------
666,684,508
- ------------------------------------------------------------------------------------------------------------------------------------
Utah -- 2.3%
88,295,000 A+ Intermountain Power Agency, UT Power Supply Revenue, Series D,
5.000% due 7/1/21(b) 80,238,081
- ------------------------------------------------------------------------------------------------------------------------------------
Virgin Islands -- 0.4%
Virgin Islands Public Finance Authority Revenue, Sr. Lien, Series A:
5,580,000 BBB- 5.300% due 10/1/11 5,405,625
5,000,000 BBB- 5.400% due 10/1/12 4,887,500
3,245,000 BBB- 5.500% due 10/1/13 3,159,819
- ------------------------------------------------------------------------------------------------------------------------------------
13,452,944
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia -- 1.4%
Arlington County, VA IDA Multi-Family Housing Revenue,
Sr. Lien-Arlington Housing:
705,000 A 6.300% due 7/1/16 733,200
750,000 A 6.350% due 7/1/20 778,125
1,000,000 A 6.375% due 7/1/25 1,038,750
Harrisonburg, VA Redevelopment & Housing Authority,
Multi-Family Housing Revenue, (Battery Heights Project),
Series A, GNMA-Collateralized:
1,425,000 AAA 6.100% due 4/20/16 1,482,000
2,715,000 AAA 6.150% due 4/20/26 2,813,419
500,000 AAA Lynchburg, VA Redevelopment & Housing Authority Revenue,
Waldon Pond III, Series A,
GNMA-Collateralized, 6.200% due 7/20/27 518,125
Norfolk, VA Redevelopment & Housing Authority, Educational Facilities
Revenue, Tidewater Community College:
2,160,000 AA 5.875% due 11/1/15 2,227,500
675,000 AA 5.500% due 11/1/19 664,875
14,035,000 AAA Riverside, VA Regional Jail Authority Facility Revenue, MBIA-Insured,
5.875% due 7/1/14 14,578,857
2,130,000 AAA Roanoke, VA Redevelopment & Housing Authority Revenue, Westwind II,
Series A, GNMA-Collateralized, 6.200% due 7/20/26 2,169,938
7,000,000 AAA Upper Occoquan, VA Regional Sewer Authority Revenue, Series A,
MBIA-Insured, 4.750% due 7/1/29 5,941,250
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
30 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Virginia -- 1.4% (continued)
$ 2,820,000 AA Virginia Beach, VA Development Authority Health Care Facilities Revenue,
Sentara Health Systems, 5.250% due 11/1/15 $ 2,710,725
Virginia State Housing Development Authority, Commonwealth
Mortgage Revenue:
1,225,000 AAA Series D, Subseries D-2, Remarketed 1/4/96, MBIA-Insured,
5.650% due 1/1/13 1,243,375
Series D, Subseries D-4, Remarketed 7/16/96:
1,330,000 AA+ 6.100% due 1/1/11 1,361,588
1,365,000 AA+ 6.100% due 7/1/11 1,394,006
1,400,000 AA+ 6.125% due 1/1/12 1,435,000
1,440,000 AA+ 6.125% due 7/1/12 1,476,000
1,485,000 AA+ 6.150% due 1/1/13 1,522,125
1,525,000 AA+ 6.150% due 7/1/13 1,563,125
1,565,000 AA+ 6.200% due 1/1/14 1,602,169
1,615,000 AA+ 6.200% due 7/1/14 1,653,356
- ------------------------------------------------------------------------------------------------------------------------------------
48,907,508
- ------------------------------------------------------------------------------------------------------------------------------------
Washington -- 2.4%
Aberdeen, WA Special Revenue, (Stafford Creek Correctional
Center Project), AMBAC-Insured:
1,165,000 AAA 4.750% due 11/1/14 1,061,606
1,220,000 AAA 4.750% due 11/1/15 1,096,475
King County, WA GO:
2,740,000 AAA Public Hospital District No. 2, MBIA-Insured, 5.250% due 12/1/18 2,613,275
2,000,000 AA- School District No. 403, Renton, 5.250% due 6/1/15 1,937,500
5,000,000 Aa1* School District No. 414, Lake Washington, Series B,
4.900% due 12/1/15 4,625,000
Snohomish County, WA School District No. 15, Edmonds, FGIC-Insured:
5,000,000 AAA 5.250% due 12/1/15 4,850,000
7,500,000 AAA 5.300% due 12/1/16 7,256,250
1,530,000 Aaa* Thurston County, WA GO, MBIA-Insured, 5.000% due 8/1/15 1,443,938
3,385,000 Aaa* Washington State Health Care Facilities Authority Revenue,
Children's Hospital & Regional Medical Center, FSA-Insured,
5.250% due 10/1/14 3,287,681
4,000,000 Aaa* Washington State Housing Finance Commission, Single Family Program,
Series 3N, FNMA-GNMA-FHLMC-Collateralized, 5.250% due 12/1/17 3,820,000
Washington State Public Power Supply System, (Nuclear Project No. 3),
Series B:
24,000,000 Aa1* 5.500% due 7/1/17(h) 23,160,000
29,220,000 Aa1* 5.500% due 7/1/18(b) 27,868,575
- ------------------------------------------------------------------------------------------------------------------------------------
83,020,300
- ------------------------------------------------------------------------------------------------------------------------------------
West Virginia -- 0.2%
Ohio County, WV Board of Education, GO:
2,000,000 A+ 5.000% due 6/1/13 1,905,000
500,000 A+ 5.125% due 6/1/18 466,250
6,540,000 BBB South Charleston, WV PCR, (Union Carbide Corp. Project),
5.100% due 1/1/12 6,131,250
- ------------------------------------------------------------------------------------------------------------------------------------
8,502,500
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 31
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Wisconsin -- 1.1%
$ 1,225,000 AAA Merrill, WI Area Commercial Public School District, FSA-Insured,
5.000% due 4/1/18 $ 1,131,652
2,210,000 Aaa* Waupun, WI School District, FGIC-Insured, 4.950% due 4/1/16 2,052,538
1,325,000 Aaa* Winneconne, WI Community School District GO, FGIC-Insured,
6.750% due 4/1/16 1,477,375
2,000,000 AA Wisconsin Housing & EDA, Home Ownership Revenue, Series A,
6.450% due 3/1/17 2,067,500
33,000,000 AAA Wisconsin State Health & Educational Facilities Authority:
Aurora Health Care Inc., MBIA-Insured, 5.250% due 8/15/17 31,473,750
- ------------------------------------------------------------------------------------------------------------------------------------
38,202,815
- ------------------------------------------------------------------------------------------------------------------------------------
Wyoming -- 0.1%
Green River Sweetwater County, WY Joint Powers
Board Revenue, Series A, FSA-Insured:
1,000,000 AAA 5.100% due 3/1/19 925,000
1,000,000 AAA 5.100% due 3/1/24 893,750
2,000,000 AAA Wyoming Building Corp. Revenue, AMBAC-Insured, 5.000% due 10/1/13 1,907,500
- ------------------------------------------------------------------------------------------------------------------------------------
3,726,250
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost-- $3,587,437,139**) $3,496,734,749
====================================================================================================================================
</TABLE>
(a) All ratings are by Standard & Poor's Ratings Service, except those
identified by an asterisk (*), or a double dagger (++), which are rated by
Moody's Investors Service, Inc. and Fitch Investor Services, Inc.,
respectively.
(b) Security segregated by Custodian for open purchase commitments.
(c) Pre-Refunded bonds escrowed with U.S. government securities and bonds
escrowed to maturity with U.S. government securities are considered by the
manager to be triple-A rated even if issuer has not applied for new
ratings.
(d) Income from this issue is considered a preference item for purposes of
calculating the alternative minimum tax.
(e) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions that are exempt from
registration, generally to qualified institutional buyers.
(f) Variable rate obligation payable at par on demand at any time on no more
than seven days notice.
(g) Security in default.
(h) Security partially segregated by Custodian for open purchase commitments.
** Aggregate cost for Federal income tax purposes is substantially the
same.
See pages 33 and 34 for definitions of ratings and certain security
descriptions.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
32 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Bond Ratings (unaudited)
- --------------------------------------------------------------------------------
The definitions of the applicable rating symbols are set forth below:
Standard & Poor's Ratings Service ("Standard & Poor's") -- Rating from "AA" to
"B" 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.
BB -- Bonds rated "BB" have less near-term vulnerability to default than other
speculative issues. However, it faces major ongoing uncertainties or
exposure to adverse business, financial, or economic conditions which
could lead to inadequate capacity to meet timely interest and principal
payments. The "BB" rating category is also used for debt subordinated to
senior debt that is assigned an actual or implied "BBB-" rating.
B -- Bonds rated "B" have a greater vulnerability to default but currently
have the capacity to meet interest payments and principal payments.
Adverse business, financial, or economic conditions will likely impair
capacity or willingness to pay interest and repay principal. The "B"
category is also used for debt subordinated to senior debt that is
assigned an actual or implied "BB" or "BB-" rating.
Moody's Investors Service, Inc. ("Moody's") -- Numerical modifiers 1, 2 and 3
may be applied to each generic rating from "Aa" to "B," where 1 is the highest
and 3 the lowest ranking within its generic category.
Aaa -- Bonds 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 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 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.
Ba -- Bonds rated "Ba" are judged to have speculative elements; their future
cannot be considered as well assured. Often the protection of interest
and principal payments may be very moderate and thereby not well
safeguarded during both good and bad time over the future. Uncertainty
of position characterizes bonds in this class.
B -- Bonds rated "B" generally lack characteristics of desirable investments.
Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.
Fitch Investors Services, Inc. ("Fitch") -- Rating may be modified by the
addition of a plus (+) or minus (-) sign to show relative standings with the
major ratings categories.
AA -- Bonds rated "AA" have a very low expectation of credit risk. They
indicate very strong capacity for timely payment of financial
commitment. This capacity is not significantly vulnerable to
foreseeable events.
NR -- Indicates that the bond is not rated by Standard & Poor's, Moody's or
Fitch.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 33
<PAGE>
- --------------------------------------------------------------------------------
Short-Term Security Ratings (unaudited)
- --------------------------------------------------------------------------------
SP-1 -- Standard & Poor's highest 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 (unaudited)
- --------------------------------------------------------------------------------
ABAG -- Association of Bay Area Governments
AIG -- American International Guaranty
AMBAC -- AMBAC Indemnity 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
PSFG -- Permanent School Fund Guaranty
RAN -- Revenue Anticipation Notes
RIBS -- Residual Interest Bonds
RITES -- Residual Interest Tax-Exempt Security
SYCC -- Structured Yield Curve Certificate
TAN -- Tax Anticipation Notes
TECP -- Tax Exempt Commercial Paper
TOB -- Tender Option Bonds
TRAN -- Tax and Revenue Anticipation Notes
VAN -- Veterans Administration
VRDD -- Variable Rate Daily Demand
VRWE -- Variable Rate Wednesday Demand
- --------------------------------------------------------------------------------
34 1999 Semi-Annual Report to Shareholders
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities (unaudited) August 31, 1999
- ----------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments, at value (Cost--$3,587,437,139) $ 3,496,734,749
Interest receivable 45,507,046
Receivable for securities sold 11,010,571
Receivable for Fund shares sold 1,130,961
- -----------------------------------------------------------------------------------------------------
Total Assets 3,554,383,327
- -----------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 93,229,460
Payable to bank 3,969,140
Investment advisory fees payable 1,348,289
Payable for Fund shares purchased 125,225
Distribution fees payable 243,533
Administration fees payable 151,678
Accrued expenses 265,426
- -----------------------------------------------------------------------------------------------------
Total Liabilities 99,332,751
- -----------------------------------------------------------------------------------------------------
Total Net Assets $3,455,050,576
=====================================================================================================
NET ASSETS:
Par value of capital shares $ 2,336,020
Capital paid in excess of par value 3,603,794,407
Overdistributed net investment income (2,666,707)
Accumulated net realized loss from security transactions (57,710,754)
Net unrealized depreciation of investments (90,702,390)
- -----------------------------------------------------------------------------------------------------
Total Net Assets $3,455,050,576
=====================================================================================================
Shares Outstanding:
Class A 146,937,237
------------------------------------------------------------------------------------------------
Class B 71,516,959
------------------------------------------------------------------------------------------------
Class L 11,792,380
------------------------------------------------------------------------------------------------
Class Y 3,355,273
------------------------------------------------------------------------------------------------
Net Asset Value:
Class A (and redemption price) $14.79
------------------------------------------------------------------------------------------------
Class B * $14.79
------------------------------------------------------------------------------------------------
Class L ** $14.78
------------------------------------------------------------------------------------------------
Class Y (and redemption price) $14.81
------------------------------------------------------------------------------------------------
Maximum Public Offering Price Per Share:
Class A (net asset value plus 4.17% of net asset value per share) $15.41
------------------------------------------------------------------------------------------------
Class L (net asset value plus 1.01% of net asset value per share) $14.93
=====================================================================================================
</TABLE>
* Redemption price is NAV of Class B shares reduced by a 4.50% CDSC if shares
are redeemed within one year from purchase (See Note 3).
** Redemption price is NAV of Class L shares reduced by a 1.00% CDSC if shares
are redeemed within the first year of purchase.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 35
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Statement of Operations (unaudited) For the Six Months Ended August 31, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest $ 103,263,654
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Distribution fees (Note 3) 6,265,844
Investment advisory fees (Note 3) 5,798,489
Administration fees (Note 3) 3,234,284
Shareholder and system servicing fees 507,475
Registration fees 163,068
Shareholder communications 89,635
Custody 79,553
Audit and legal 46,372
Pricing service fees 33,123
Directors' fees 29,555
Other 25,989
- ------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 16,273,387
- ------------------------------------------------------------------------------------------------------------------------------------
Net Investment Income 86,990,267
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 4):
Realized Gain (Loss) From Security Transactions
(excluding short-term securities):
Proceeds from sales 1,421,910,004
Cost of securities sold 1,449,463,043
- ------------------------------------------------------------------------------------------------------------------------------------
Net Realized Loss (27,553,039)
- ------------------------------------------------------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation (Depreciation) of Investments:
Beginning of period 156,019,669
End of period (90,702,390)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in Net Unrealized Depreciation (246,722,059)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Loss on Investments (274,275,098)
Decrease in Net Assets From Operations $ (187,284,831)
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
36 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
For the Six Months Ended August 31, 1999 (unaudited)
the Year Ended February 28, 1999
<TABLE>
<CAPTION>
August 31 February 28
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 86,990,267 $ 168,057,729
Net realized loss (27,553,039) (28,827,675)
(Increase) decrease in net unrealized depreciation (246,722,059) 3,702,030
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations (187,284,831) 142,932,084
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTE 2):
Net investment income (83,866,579) (168,001,873)
Excess of net investment income -- (11,815,898)
Net realized gains -- (27,146,490)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in Net Assets From Distributions to Shareholders (83,866,579) (206,964,261)
- ------------------------------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 6):
Net proceeds from sale of shares 226,772,400 817,389,236
Net asset value of shares issued for
reinvestment of dividends 49,604,972 126,767,790
Cost of shares reacquired (427,255,290) (633,747,421)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Fund Share Transactions (150,877,918) 310,409,605
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets (422,029,328) 246,377,428
NET ASSETS:
Beginning of period 3,877,079,904 3,630,702,476
- ------------------------------------------------------------------------------------------------------------------------------------
End of period* $3,455,050,576 $3,877,079,904
====================================================================================================================================
* Includes overdistributed net investment income of: $(2,666,707) $(5,790,395)
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 37
<PAGE>
- --------------------------------------------------------------------------------
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 a
diversified, 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 asked 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) securities maturing within 60 days are
valued at cost plus accreted discount, or minus amortized premium, which
approximates value; (d) gains or losses on the sale of securities are calculated
by using the specific identification method; (e) interest income, adjusted for
amortization of premium and accretion of original issue discount, is recorded on
an accrual basis; market discount is recognized upon the disposition of the
security; (f) dividends and distributions to shareholders are recorded on the
ex-dividend date; (g) direct expenses are charged to each class; investment
advisory fees and general Fund expenses are allocated on the basis of relative
net assets of each class; (h) the character of income and gains to be
distributed are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. At February 28, 1999,
reclassifications were made to the Fund's capital accounts to reflect permanent
book/tax differences and income and gains available for distributions under
income tax regulations. Accordingly, a portion of overdistributed net investment
income amounting to $11,815,898 was reclassified to paid in capital. Net
investment income, net realized gains and net assets were not affected by this
adjustment; (i) 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 (j) estimates and
assumptions are required to be made regarding assets, liabilities and changes in
net assets resulting from operations when financial statements are prepared.
Changes in the economic environment, financial markets and other parameters used
in determining these estimates could cause actual results to differ.
2. Exempt-Interest Dividends and Other Distributions
The Fund intends to satisfy requirements that allow interest from municipal
securities, which is exempt from regular Federal income tax and from certain
states' income taxes, to retain its exempt-interest status when distributed to
the shareholders of the Fund.
Capital gain distributions, if any, are taxable to shareholders, and are
declared and paid at least annually. If necessary, additional taxable
distributions may be made to avoid a Federal excise tax.
3. Investment Advisory Agreement, Administration Agreement and Other
Transactions
SSB Citi Fund Management LLC ("SSBC"), formerly known as SSBC Fund Management
Inc., a subsidiary of Salomon Smith Barney Holdings Inc. ("SSBH"), acts as
investment adviser to the Fund. The Fund pays SSBC 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.
SSBC 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.
- --------------------------------------------------------------------------------
38 1999 Semi-Annual Report of Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
CFBDS, Inc., ("CFBDS") acts as the Fund's distributor. Salomon Smith Barney Inc.
("SSB"), another subsidiary of SSBH, as well certain other broker-dealers,
continues to sell Fund shares to the public as a member of the selling group.
There is also a contingent deferred sales charge ("CDSC") of 4.50% on Class B
shares, which applies if redemption occurs within one year from purchase. This
CDSC declines by 0.50% the first year after purchase and thereafter by 1.00% per
year until no CDSC is incurred. Class L shares are being sold at net asset value
plus a maximum sales charge of 1.00%. Class L shares also have a 1.00% CDSC,
which applies if redemption occurs within the first year of purchase. In
addition, Class A shares also have a 1.00% CDSC, which applies if redemption
occurs within the first year of purchase. This CDSC only applies to those
purchases of Class A shares, which, when combined with current holdings of Class
A shares, equal or exceed $500,000 in the aggregate. These purchases do not
incur an initial sales charge.
For the six months ended August 31, 1999, CFBDS and SSB received sales charges
of approximately $1,121,000 and $136,000 on sales of the Fund's Class A and
Class L shares, respectively. In addition, CDSCs paid to CFBDS and SSB were
approximately:
Class A Class B Class L
- --------------------------------------------------------------------------------
CDSCs $90,000 $1,085,000 $26,000
- --------------------------------------------------------------------------------
Pursuant to a Distribution Plan, the Fund pays a service fee with respect to its
Class A, B and L shares, calculated at an annual rate of 0.15% of the average
daily net assets for each respective class. In addition, the Fund pays a
distribution fee with respect to its Class B and L shares calculated at the
annual rate of 0.50% and 0.55%, of the average daily net assets of each class,
respectively.
For the six months ended August 31, 1999, total Distribution Plan fees incurred
were:
Class A Class B Class L
- --------------------------------------------------------------------------------
Distribution Plan Fees $1,800,985 $3,811,846 $653,013
- --------------------------------------------------------------------------------
All officers and one Director of the Fund are employees of SSB.
4. Investments
During the six months ended August 31, 1999, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
- --------------------------------------------------------------------------------
Purchases $1,255,117,579
- --------------------------------------------------------------------------------
Sales 1,421,910,004
- --------------------------------------------------------------------------------
At August 31, 1999, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
- --------------------------------------------------------------------------------
Gross unrealized appreciation $ 56,665,455
Gross unrealized depreciation (147,367,845)
- --------------------------------------------------------------------------------
Net unrealized depreciation $ (90,702,390)
- --------------------------------------------------------------------------------
5. Futures Contracts
Initial margin deposits made upon entering into futures contracts are recognized
as assets. The initial margin is segregated by the custodian and is 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 transactions and the Fund's basis in the
contract.
The Fund enters into such contracts to hedge a portion of its portfolio. The
Fund bears the market risk that arises from changes in the value of the
financial instruments and securities indices (futures contracts).
At August 31, 1999, the Fund had no open futures contracts.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 39
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
6. Capital Shares
At August 31, 1999, the Fund had one billion shares of capital stock authorized
with a par value of $0.01 per share. 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. Effective June 12, 1998,
the Fund adopted the renaming of existing Class C shares as Class L shares.
At August 31, 1999, total paid-in capital amounted to the following for each
class:
<TABLE>
<CAPTION>
Class A Class B Class L Class Y
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Paid-in Capital $2,219,464,225 $1,146,747,067 $187,294,037 $52,625,098
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
August 31, 1999 February 28, 1999
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold 7,337,786 $114,216,604 25,514,936 $ 411,308,146
Shares issued on reinvestment 2,116,933 32,608,443 5,134,373 82,575,616
Shares reacquired (17,953,296) (277,768,781) (21,377,362) (344,451,566)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) (8,498,577) $(130,943,734) 9,271,947 $149,432,196
- ------------------------------------------------------------------------------------------------------------------------------------
Class B
Shares sold 3,053,257 $47,605,875 12,635,335 $ 203,684,556
Shares issued on reinvestment 920,649 14,178,143 2,324,422 37,364,480
Shares reacquired (8,201,320) (126,525,581) (8,707,120) (140,244,766)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) (4,227,414) $ (64,741,563) 6,252,637 $100,804,270
- ------------------------------------------------------------------------------------------------------------------------------------
Class L+
Shares sold 1,441,263 $ 22,449,921 5,331,560 $ 85,847,261
Shares issued on reinvestment 173,372 2,667,227 372,372 5,982,936
Shares reacquired (1,357,023) (20,970,697) (2,003,058) (32,218,632)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase 257,612 $ 4,146,451 3,700,874 $ 59,611,565
- ------------------------------------------------------------------------------------------------------------------------------------
Class Y
Shares sold 2,741,189 $ 42,500,000 7,248,020 $116,549,273
Shares issued on reinvestment 9,805 151,159 52,599 844,758
Shares reacquired (124,551) (1,990,231) (7,306,335) (116,832,457)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) 2,626,443 $ 40,660,928 (5,716) $ 561,574
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ On June 12, 1998, Class C shares were renamed Class L shares.
7. Capital Loss Carryforward
At February 28, 1999, the Fund had, for Federal income tax purposes,
approximately $11,499,000 of unused capital loss carryforwards available to
offset future capital gains expiring in 2007. 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.
- --------------------------------------------------------------------------------
40 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended February 28, except where noted:
<TABLE>
<CAPTION>
Class A Shares 1999(1)(2) 1999(2) 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 15.93 $ 16.19 $ 15.61 $ 16.20 $ 15.47 $ 16.13
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.38 0.74 0.79 0.88 0.91 0.95
Net realized and unrealized gain (loss) (1.15) (0.10) 1.06 (0.18) 0.80 (0.37)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (0.77) 0.64 1.85 0.70 1.71 0.58
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.37) (0.74) (0.79) (0.91) (0.90) (0.95)
Excess of net investment income -- (0.05) -- -- -- --
Net realized gains -- (0.11) (0.48) (0.38) (0.08) (0.29)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.37) (0.90) (1.27) (1.29) (0.98) (1.24)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 14.79 $ 15.93 $ 16.19 $ 15.61 $ 16.20 $ 15.47
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (4.93)%++ 4.07% 12.30% 4.51% 11.34% 4.11%
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 2,174 $ 2,476 $ 2,367 $ 2,000 $ 1,892 $ 1,772
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.68%+ 0.67% 0.68% 0.68% 0.70% 0.71%
Net investment income 4.83+ 4.63 4.98 5.60 5.47 6.25
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 34% 45% 110% 103% 80% 100%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the six months ended August 31, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 41
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended February 28, except where noted:
<TABLE>
<CAPTION>
Class B Shares 1999(1)(2) 1999(2) 1998 1997 1996 1995
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 15.92 $ 16.19 $ 15.60 $ 16.20 $ 15.47 $ 16.13
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.34 0.66 0.72 0.79 0.82 0.86
Net realized and unrealized gain (loss) (1.15) (0.11) 1.06 (0.18) 0.81 (0.37)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (0.81) 0.55 1.78 0.61 1.63 0.49
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.32) (0.66) (0.71) (0.83) (0.82) (0.86)
Excess of net investment income -- (0.05) -- -- -- --
Net realized gains -- (0.11) (0.48) (0.38) (0.08) (0.29)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.32) (0.82) (1.19) (1.21) (0.90) (1.15)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 14.79 $ 15.92 $ 16.19 $ 15.60 $ 16.20 $ 15.47
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (5.13)%++ 3.48% 11.81% 3.92% 10.78% 3.54%
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $ 1,057 $ 1,206 $ 1,125 $ 905 $ 730 $ 515
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.20%+ 1.19% 1.20% 1.19% 1.22% 1.23%
Net investment income 4.31+ 4.11 4.46 5.09 4.94 5.73
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 34% 45% 110% 103% 80% 100%
====================================================================================================================================
</TABLE>
(1) For the six months ended August 31, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
42 1999 Semi-Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended February 28, except where noted:
<TABLE>
<CAPTION>
Class L Shares 1999(1)(2) 1999(2)(3) 1998(2) 1997 1996 1995(4)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 15.92 $ 16.18 $ 15.60 $ 16.20 $ 15.47 $ 14.30
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.33 0.65 0.70 0.79 0.82 0.27
Net realized and unrealized gain (loss) (1.15) (0.10) 1.06 (0.18) 0.81 1.46*
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (0.82) 0.55 1.76 0.61 1.63 1.73
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.32) (0.65) (0.70) (0.83) (0.82) (0.27)
Excess of net investment income -- (0.05) -- -- -- --
Net realized gains -- (0.11) (0.48) (0.38) (0.08) (0.29)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.32) (0.81) (1.18) (1.21) (0.90) (0.56)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 14.78 $ 15.92 $ 16.18 $ 15.60 $ 16.20 $ 15.47
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (5.21)%++ 3.49% 11.69% 3.88% 10.76% 12.36%++
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $174,291 $183,578 $126,766 $ 72,597 $ 33,411 $ 5,395
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.25%+ 1.24% 1.25% 1.24% 1.27% 1.29%+
Net investment income 4.26+ 4.06 4.38 5.04 4.86 5.67+
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 34% 45% 110% 103% 80% 100%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the six months ended August 31, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) On June 12, 1998, Class C shares were renamed Class L shares.
(4) For the period from November 9, 1994 (inception date) to February 28, 1995.
* The amount shown may not agree with the change in aggregate gains and losses
of portfolio securities due to the timing of sales and redemptions of Fund
shares.
++ Total return is not annualized, as it may not be representative of the total
return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc 43
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended February 28, except where noted:
<TABLE>
<CAPTION>
Class Y Shares 1999(1)(2) 1999(2) 1998(2) 1997(2) 1996(3)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 15.95 $ 16.19 $ 15.60 $ 16.20 $ 15.63
- ------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.38 0.73 0.82 0.90 0.85
Net realized and unrealized gain (loss) (1.14) (0.04) 1.07 (0.18) 0.65
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (0.76) 0.69 1.89 0.72 1.50
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.38) (0.76) (0.82) (0.94) (0.85)
Excess of net investment income -- (0.06) -- -- --
Net realized gains -- (0.11) (0.48) (0.38) (0.08)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.38) (0.93) (1.30) (1.32) (0.93)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 14.81 $ 15.95 $ 16.19 $ 15.60 $ 16.20
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (4.84)%++ 4.39% 12.56% 4.59% 9.84%++
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $ 49,704 $ 11,626 $ 11,893 $ 5,350 $ 12,314
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.50%+ 0.50% 0.52% 0.52% 0.57%+
Net investment income 5.01+ 4.84 5.06 5.76 5.62+
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 34% 45% 110% 103% 80%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the six months ended August 31, 1999 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the period from April 4, 1995 (inception date) to February 29,
1996.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
44 1999 Semi-Annual Report to Shareholders
<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, Chairman
Cornelius C. Rose
James J. Crisona, Emeritus
Officers
Heath B. McLendon
President and Chief Executive Officer
Lewis E. Daidone
Senior Vice President and Treasurer
Joseph P. Deane
Vice President and Investment Officer
David Fare
Vice President and Investment Officer
Paul A. Brook
Controller
Christina T. Sydor
Secretary
Investment Adviser and Administrator
SSB Citi Fund Management LLC
Distributor
CFBDS, Inc.
Custodian
PNC Bank, N.A.
Shareholder Servicing Agent
First Data Investor Services Group, Inc.
P.O. Box 9134
Boston, MA 02205-9134
This report is submitted for the general information of shareholders of Smith
Barney Managed Municipals Fund Inc. It is not for distribution to prospective
investors unless accompanied by a current Prospectus for the Fund, which
contains information concerning the Fund's investment policies and expenses as
well as other pertinent information.
[LOGO OF SALOMON SMITH BARNEY APPEARS HERE]
Salomon Smith Barney is a service mark of Salomon Smith Barney Inc.
Smith Barney Managed
Municipals Fund Inc.
Smith Barney Mutual Funds
388 Greenwich Street, MF-2
New York, New York 10013
www.smithbarney.com
FD0435 10/99
